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Content, Commerce, and... COVID
The document discusses how brands are adapting to the challenges posed by COVID-19 and the shift towards digital commerce. It emphasizes the importance of understanding customer experiences and leveraging technology to create engaging interactions. Key predictions include an explosion of channels, the necessity for brands to balance price and experience, and the increasing role of AI in personalizing digital experiences.
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Content, Commerce, and... COVID
- 1. Content, Commerce, and…COVID How successful brands are adapting today and preparing for tomorrow IDC, Perficient, and Episerver 7/23/2020 © IDC
- 2. © IDC 2 MeetToday’s Speakers Jordan Jewell Research Manager, Digital Commerce Software IDC Brian Beckham General Manager Perficient Joey Moore Head of Product Evangelism, EMEA & APAC Episerver
- 3. © IDC 3 Mapof Today’s Discussion #5 #6 #7 #8 #9 #10 #4 COVID and the Future of Business Defining the Experience Economy Commerce Goes Digital The Future of Customers Chapters of DX Digital Experience Platforms #11 How to Deliver Captivating Digital Experiences #12Digital Experience Predictions Takeaways = Panel discussion
- 4. © IDC 4 TheFuture of Business and COVID 3.24 3.28 3.30 3.31 3.35 3.44 3.47 3.54 3.70 1 2 3 4 Workplace Transformation Programs Digital Infrastructure Resiliency Programs Evaluation of new Ecosystem Partners Digital Trust Programs SW Development Capabilities for product innovation Connectivity Programs Data Programs for insights into business Customer Experience Programs Business Operations Resiliency Programs Average Prioritization Rating (1 – 4) Q. As a result of the COVID-19 pandemic, how much will your organization be prioritizing the following initiatives for the rest of 2020 and into 2021? Future Enterprise Source: IDC COVID-19 IMPACT ON IT SPENDING Survey, May 7 - 14, May 2020; n = 908
- 5. © IDC 5 TheFuture of Customers: Empathy at Scale 18.8% 24.8% 27.7% 37.6% 41.6% 42.6% 50.5% 0% 10% 20% 30% 40% 50% 60% Not understanding customer experience Lack of information about our customers Not understanding the nuances of our customer journey Breaking down customer data silos within our organization Adapting experiences to unique customer journeys Creating a culture of customer centricity Being able to provide equivalent experiences across all channels (Percent of Respondents) Q. Where are you establishing goals to become more empathetic and customer centric? Source: IDC's CXO View of the Future Enterprise in the Digital Economy, January–February 2020; n = 152
- 6. © IDC 6 Definingthe Experience Economy Delivering to customers beyond the shopping cart, by emphasizing the effect that products and services have on people.
- 7. © IDC 7 Chaptersof Digital Transformation Source: IDC, 2020
- 8. © IDC 8 CommerceGoes Digital Post-COVID Pre-COVID 0% 5% 10% 15% 20% 2016 2017 2018 2019 2020 2021 2022 2023 Forecast - Digital Commerce Share of Total Retail for USA Source: eMarketers.com, 2020; IDC, 2020 -40% -30% -20% -10% 0% 10% 20% 30% Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 US Brick & Mortar and Digital Commerce Growth Brick & Mortar eCommerce -29.3% +23.0%
- 9. Digital Experience Platforms Source:IDC, 2020 9
- 10. © IDC 10 Howto Deliver Captivating Digital Experiences Source: IDC, 2020
- 11. © IDC 11 Predictions ChannelExplosion: Fueled by an influx of new devices and social channels, by 2023 B2C and B2B buyers in the US will interact with over 5 touchpoints on average for every purchase. Experience vs. Price: Market penetration by large digital marketplaces and big box retailers will increasingly add pressure for merchants to select between a price led or experience led strategy. Going Headless: By 2024, 25% of all midmarket and enterprise merchants will leverage a headless content and commerce architecture to drive value. Best in Class: In the coming years, brands and merchants will purchase from a larger number of best-of-breed technology companies, in order to deliver engaging digital experiences. Getting Personal: By 2025, over half of all digital experiences will leverage artificial intelligence to deliver personalized, contextual, experiences.
- 12. The digitalexperience and commerce markets are evolving FAST, especially post-COVID. Organizations need to adapt their technology, people, and processes accordingly. Organizations need to be ruthless in their prioritization. It’s impossible to do all the things mentioned; identify the biggest win for customers and execute. Digital transformation is as much about building a strong operational model to align distant groups into shared communities and cross functional teams (breaking down siloes). Adaption of new technologies relies on organization being able to execute change and evolve – an agile mindset. If you want to grow into autonomous systems in the near future, focus on building autonomous teams and roles within the organization today. © IDC 12 Key Takeaways
- 13. © IDC 13 Askthe Panel Jordan Jewell IDC Brian Beckham Perficient Joey Moore Episerver
- 14. © IDC 14 CommerceGoes Digital Post-COVID Pre-COVID 0% 5% 10% 15% 20% 2016 2017 2018 2019 2020 2021 2022 2023 Forecast - Digital Commerce Share of Total Retail for USA Source: eMarketers.com, 2020; IDC, 2020
Editor's Notes
- #2 30 Seconds
- #3 2 Minute
- #4 3 Minutes I’ll quickly walk through these. For each slide, I will present IDC’s opinion, and accompanying research, and then open it up to Brian and Joey to provide their input on behalf of Perficient and Episerver. #1 – Will look at survey data IDC has on COVID and the future of business #2 – We’ll drill into the future of digital customer experiences specifically and about how empathy is critical in the current market #3 – From there we will define the experience economy and how #4 – Next, we’ll walk through the chapters of digital transformation according to IDC, and how digital experiences align to this model #5 – As we all know, COVID had drastically changed to the trajectory of many markets – we’ll look specifically what the impact has been on digital commerce #6 – With this in mind, we’ll look at what technologies organizations need to to provide engaging digital experiences #7 – For our final panel discussion, we will choose the most important factors in delivering digital experiences #8 – I’ll walk through some predictions for the content and commerce market #9 – Provide takeaways from this presentation All of the slides with a red ring will be panel discussion. Transition – With that in mind, let’s walk through how IDC envisions the future of business
- #5 3 Minutes Jordan: These graphic represents how IDC looks at the future of is business. In the midst of COVID, survey respondents highlighted the importance of delivering excellent (digital) customer experiences sown at the top. Noteworthy: FOCC – my group FODI – in house development of solutions FOW – huge implications from COVID and WFH FOT – Security and data ownership We conduct a bi-weekly survey at IDC. On the right we see results from one of those surveys early on, just before most of the US initiated a lockdown. Organizations were asked to assign an importance ranking, between 1 and 4, for each of the areas on the left. Unsurprisingly, customer experience programs showed up as the 2nd most important area, only behind operational resiliency. Organizations clearly understand that Transition – With this backdrop, let's look specifically at the "Future of customers and consumers" area.
- #6 5 Minutes Jordan: Overview of FoCC, survey responses. Joey: Agility as a strategy Hand off to Brian Brian: Empathy at scale and delivery of pizza MENTION: Breaking down of siloes Transition -
- #7 5 Minutes Jordan (IDC POV) This term is thrown around a lot and everyone is talking about everything in the theme of “experiences”. But what does this actually mean? This may surprise many of you, but the term “Experience Economy” was first used in 1998 – long before digital experiences were a formal strategy. Vs. industrial, services, product economy When I think about the experience economy, I think about Disney and about how Disney as a company is designed to make you feel. Disney doesn’t aim to deliver products, it aims to deliver joy. It does this with content, customer service, and components that go beyond the shopping cart. Brian: Hand off to Joey Joey: (end by talking about digital transformation) Transition -
- #8 6 Minutes Jordan: Need to summarize IDC defines the 3rd Platform as the third stage of IT (following mainframe and client server), founded upon four pillars: cloud, social, big data/analytics, and mobile. The 3rd Platform era kicked off around 2007, and IDC has outlined three chapters of the era. The first chapter, experimentation, describes the stage when technology forces like cloud computing and mobile were new to market and businesses and consumers began to realize the benefits. In the realm of digital commerce, this is when SaaS applications began to see adoption, and more flexible commerce deployments were developed on mobile devices and the like. The experimentation chapter led us to the "multiplied innovation" chapter, where we currently stand. In this chapter, the potential of the 3rd Platform is being realized, with technologies like artificial intelligence (AI), augmented reality, the Internet of Things (IoT), and natural language processing are beginning to provide value to businesses and customers alike. In the multiplied innovation chapter, digital transformation (DX) efforts have become mainstream, with nearly all savvy businesses investing heavily to change the way they conduct business. IDC expects DX spending will only continue to grow, with total spend forecast to double over the next five years.** The next chapter, which IDC calls "autonomy," will begin around 2023 and will be defined by innovative technologies having more scalable impacts that affect the entire organization, including all customer and employee interactions. Because of increasingly complex business and technology environments that have been constructed in the global economy, autonomous systems will become essential for B2C and B2B sellers to make educated decisions — decisions such as which product to recommend, what to discount, and who to target. The autonomy chapter will lead to most human decisions coming on top of or being assisted by machines. In the commerce world, a business might have millions of current and prospective customers to appeal to — autonomous systems will make this task more feasible. This increasing rate of innovation can also be expressed by the speed with which technology is produced. Between 2018 and 2023, IDC forecasts that new technology platforms, more developers, agile methods, and the re-use of code will lead to the creation of 500 million new logical applications. This 5-year total is equal to the number of apps built over the past 40 years (IDC #US44403818). Joey: For many of these technologies very much innovation phase to understand what is possible. Covid likely to have a two-fold impact on that. Negative side, organizations will be more risk averse and focusing on BAU to get through current crisis. Orgs that have been able to successfully invest will have given themselves a competitive advantage Brian: Transition – COVID has clearly fundamentally changed the makeup of this forecast period and how companies will adopt technologies. Let’s look at how the commerce market specifically is being impacted.
- #9 6 Minutes Jordan: While retail sales do not encompass the entire market (especially not B2B), the US share of retail rales online is a good indicator of where the market is moving. Prior to COVID, eCommerce already acted as the growth driver in the retail market and was have a similar impact on other industries. Over time, we were working our way to a higher and higher share of sales occurring online. COVID accelerated this trend (as shown). We essentially “jumped” ahead of the original forecast I have also included results for the first half of 2020 (it’s very hard to forecast by quarter) and brick-and-mortar retail took an obvious big hit. My main takeaways are that although COVID has had unpredictable impacts in the short term – this was always the long-term trend we were forecasting at IDC and organizations needed to take steps to support digital commerce – it just happened a lot more sudden that anyone predicted. Joey: Quote UK jump in eCommerce sales How customers will interact with businesses and organizations has undergone a seismic shift. In reality an acceleration of what was likely to happen much later on. Some of these consumers will revert back to brick and mortar but many others will enjoy the convenience that digital commerce has brought them. Brian: (Talk about B2B commerce?) Transition – With these data points in mind about where the broader commerce market is going, let’s home in on
- #10 5 Minutes Jordan: This is a somewhat commerce-centric view of the digital commerce platforms space. The main takeaway here Joey: What makes up a comprehensive platform is ever evolving so be sure to understand your vendors roadmap but also the understand how the platform can be extended to meet unique requirements for your business and your customers Transition – Now that we have talked about the functional applications that act as building blocks to build a digital experience platform. Let’s zoom out at a high level about the areas IDC sees as the most important in delivering a great digital experience.
- #11 8 Minutes Jordan gives overview – all of these are important to deliver a captivating digital experience. Jordan’s highlights (2 minutes): Omni-Experiences: Need to deliver experiences that feel the same across different touchpoints Security & Trust: Trust is the main currency in the digital economy Frictionless Commerce: B2B and B2C buyers expect easy buying experiences, where they can find what they want quickly, without having to browse the whole catalog, and checkout. Strong search, product information and content, payments, and order flexibility play towards frictionless commerce. Joey (2 Minutes) Personalization: 2-fold effect on customer experience and the ability to scale experiences Content Intelligence: You have to understand if what you are creating is resonating with your audience and then use that intelligence to drive… Content Engine: It’s the way organizations can differentiate. What you say and what you do is your brand. Brian (2 Minutes) Content Engine: Development Tools: Single Customer View: Transition: Now is the time to invest in wholistic experiences. There’s a landgrab for the polarized consumer, those that shop purely on price and those that don’t. Pick one but pick wisely. You can’t do both and price only goes one way. We are now going to provide some predictions about how this market will play out.
- #12 3 Minutes
- #13 2 Minutes
- #15 6 Minutes Jordan: While retail sales do not encompass the entire market (especially not B2B), the US share of retail rales online is a good indicator of where the market is moving. Prior to COVID, eCommerce already acted as the growth driver in the retail market and was have a similar impact on other industries. Over time, we were working our way to a higher and higher share of sales occurring online. COVID accelerated this trend (as shown). We essentially “jumped” ahead of the original forecast I have also included results for the first half of 2020 (it’s very hard to forecast by quarter) and brick-and-mortar retail took an obvious big hit. My main takeaways are that although COVID has had unpredictable impacts in the short term – this was always the long-term trend we were forecasting at IDC and organizations needed to take steps to support digital commerce – it just happened a lot more sudden that anyone predicted. Joey: Quote UK jump in eCommerce sales How customers will interact with businesses and organizations has undergone a seismic shift. In reality an acceleration of what was likely to happen much later on. Some of these consumers will revert back to brick and mortar but many others will enjoy the convenience that digital commerce has brought them. Brian: (Talk about B2B commerce?) Transition – With these data points in mind about where the broader commerce market is going, let’s home in on