ARMONK, N.Y., Jan.
12, 2017 /PRNewswire/ -- Retailers are grappling to meet
the demands of consumers and must transform quickly to inspire
loyalty with customers who are hopping from store to web to mobile
to social, and back again, according to new research from IBM
(NYSE:IBM).
IBM's IBV study of 15,000 Generation Z shoppers, which represent
$44 Billion in estimated buying
power, found the following:
- Despite living largely digital lives, 67 percent of Generation
Z prefer to shop in a brick-and-mortar store all the time, with
another 31 percent preferring to shop in-store sometimes.
- 66 percent frequently use more than one device and 60 percent
will not use an app or website if they are too slow to load.
- Gen Zers demand highly personalized interactions, value quality
over price and want to be engaged with the brand across all
channels.
IBM's new Customer Experience study of more than 500 brands in
24 countries shows that despite changing customer demands,
businesses are struggling to deliver on the expectations of
consumers. The research shows:
- Only 19 percent of retailers can provide a highly personalized
digital shopping experience
- A mere 17 percent can provide more than in stock/out of stock
information.
- 84 percent did not offer any in-store mobile services.
This gap between what consumers demand and what brands can
deliver requires cognitive capabilities that allow retailers to
take information from all types of engagement, quickly act across
multiple channels and change the rules of engagement. IBM's
cloud-based cognitive solutions can examine customer data and
combine it with data on other critical factors such as weather
patterns, pricing trends, buying behaviors, and supplier
availability to deliver personalized experiences that customer
demand.
"In this new era of customer engagement, what will separate the
winners from everyone else is a differentiated brand experience
that delivers high impact engagements with compelling
personalization regardless of where the customer is," said
Harriet Green, General Manager of
IBM Watson Customer Engagement. "With Watson Cognitive Engagement
solutions, IBM is working with retailers across globe to make these
experiences a reality for millions of consumers."
IBM Watson Customer Engagement is helping leading retailers
drive enduring brand loyalty with their customers:
- HSN, Inc.: HSN, Inc. is comprised of a portfolio of
brands that offer innovative, differentiated experiences on TV,
online, via mobile devices, in catalogs, and in brick and mortar
stores. One of its operating segments, leading direct-to-consumer
retailer HSN, uses Watson Marketing to enhance its commitment to
delivering a personal and customized cross-platform customer
experience. By leveraging IBM's cognitive marketing capabilities to
gather data and uncover insights, HSN is able to create meaningful
relationships that improve customer engagement and enhance
loyalty.
- Ermes: The Ermes Group, the largest and most diversified
retailer in Cyprus, is using IBM's
cloud-based Watson Commerce pricing optimization solutions to
determine which specific products in each store should be marked
down due to stagnant sales, what the new price should be and when
the reduction should take place. As a result, Ermes can introduce
product markdowns at a price that resonates with the needs of
value-seeking customers while contributing to the profits for most
of its key retail locations. Since going live with IBM, Ermes has
significantly streamlined its retail pricing strategy while
increasing profits.
- 1-800 FLOWERS.COM: GWYN (Gifts when you Need) is a
Watson powered gift concierge.
Since launching GWYN less than a year ago, 1-800 Flowers.com has
noticed a distinct change in customer behavior. There has been a
measurable increase in customer engagement that comes from GWYN
helping to find the perfect gift across the company's family of
brands. Because of the value GWYN provides, consumers are willing
to devote more time to the process, asking on average five
questions per session and interacting with GWYN for more than two
minutes. 80% of consumers who tried GWYN said they would use the
service again.
IBM Watson Customer Engagement
IBM powers a full spectrum of cognitive engagement offerings
delivered as a service and on premise for thousands of retailers
worldwide including: Amadori Group, American Eagle Outfitters,
Boots, Ermes, hhgregg, Luxottica, Moosejaw Mountaineering, Office
Brands, Performance Bicycle, REI, Sherwin Williams , The Clorox
Company, The North Face, The Works UK, and William Sonoma. You can hear more about how the
Home Depot and Luxottica are using IBM Watson
Customer Engagement solutions from a recent panel discussion with
IBM's Harriet Green.
For more information follow us at @IBMforMarketing or
@IBMCommerce and #WatsonCE.
About IBM Institute for Business Value
For more information, http://www.ibm.com/iibv
Download the IBM IBV app from iTunes and Android Market
1. IDG: New Research Shows Brands Struggle with Online Commerce
Even as Its Importance Grows
2. https://www.entrepreneur.com/article/238998
3.
http://www.marketwired.com/press-release/deep-focus-cassandra-report-gen-z-uncovers-massive-attitude-shifts-toward-money-work-2004889.htm
Media Contacts:
Doug Fraim
IBM Media Relations
+1 617-501-6376
dfraim@us.ibm.com
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SOURCE IBM