The digital experience is shifting - your company needs to as well
- Data maturity is critical to your business. Heap's Mona Popli asks - are you doing all you can to address friction points in the digital customer experience?
More than 80% of Generation Z, one of the current leading buying generations, view online shopping as an experience instead of a transaction.
This should worry marketers, as 64% identify as digital converts who prefer online shopping, four out of 10 will abandon a purchase when they have a poor digital experience and are quick to post a negative review on social media, while 69% say they’ve become less patient with poor online experiences, according to a Sitecore survey.
Since there’s no room for error, marketers and digital product builders must create a personalized customer journey that works seamlessly every time or miss out on Gen Z’s current $360 billion in disposable income - according to a Bloomberg report — a number that’s expected to rapidly increase.
Given this tall order, how can businesses get a piece of this pie? It comes down to data. Companies must become data mature and make data-driven decisions rather than relying on a 'gut feeling' to deliver the experience today’s shopper’s demand.
A recent IDC survey, sponsored by Heap, confirmed that data-mature companies — meaning businesses that leverage quantitative and qualitative data in decision making — realize a 3.2x increase in revenue and a 2.4x increase in profits over the lagging firms. Despite these gaps, the same survey found 69% of companies forgo data-based evidence and make decisions based on the Highest Paid Person’s opinion (HiPPo) or gut instinct.
Companies that utilize digital analytics solutions can quickly identify and eliminate friction points in the customer journey and reduce the time to insight in understanding Gen Z’s shifting desires. However, the same IDC study revealed that only 62% of leading companies have sufficient access to traffic, behavioral and event data.
Investing in a holistic platform allows companies to pinpoint exact moments of a user’s action to understand where they are experiencing problems and dropping off the site. This gives guidance to product builders on how they can improve their digital products and services and enhance the customer experience. It is vital that companies utilize an integrated, comprehensive product analytics solution instead of the broken options that only deliver partial insights.
Maturity and loyalty
If you're still not sure data maturity is critical to your business, consider this: 61% of Gen Z today say they are less loyal to brands they usually shop at, according to Sitecore. The question you should be asking is, are you doing everything you can to keep them from digitally walking across the street to your competitor? If you aren't, can you afford not to?
While we can’t read customers’ minds (though that would make product managers’ jobs a walk in the park), digital product builders must personalize the user journey and improve the user experience through educated decisions, which requires leveraging data and not opting for guesses. The Sitecore survey indicates that with 72% of Gen Z expecting a highly personalized experience from online retailers, teams need to address friction points in work streams to improve the experience.
Now is the time to address this — any delay in fixing these concerns will mean lost revenue, and potentially, your business not surviving the next crest of the digital economy.