What is the cost of a poor eCommerce Customer Experience? Think of it from a personal viewpoint. How many times have you been left frustrated by a bad eCommerce customer experience? How many times have you had an online transaction cancelled, timed-out or been driven to switch to a more user-friendly rival site?

It happens to all of us at one time or another…

CMO.com reports that an average of 10.9% of online revenue is spent on marketing. IMRG that global abandonment rates are rising. And the market view is B2C conversion is 1%-4% and B2B about 10%.

From our own research “Counting the Cost of Not Knowing”, we found that:

  1. 85% of organizations say understanding why customers may struggle with their website is a current challenge
  2. 82% have difficulties maintaining a single approach to eCommerce Customer Experience Management across mobile and web
  3. 89% believe eCommerce Customer Experience is a significant differentiator in their sector right now
  4. 76% plan to increase investment in online channels over the next 12 months

Delivering a seamless, rewarding eCommerce Customer Experience is paramount. It is damaging to keep upping the spend on driving people to your site if it is not delivering a good user journey.

It’s the key differentiator that drives loyalty and improved margins. Anything that damages or diminishes that experience is a dangerous and costly aberration.

Here’s the evidence…

The 2016 Christmas Season Consumer Survey reveals that: “19% of eCommerce Christmas customers were forced to shop with alternative retailers due to stock unavailability and delivery time constraints” (source: eConsultancy Blog). But this begs a key question: how many businesses know the price they are paying for out-of-stock and delivery constraints? How many potential customers clicked-off in frustration and took their loyalties and buying power to a competitor?

Probably, it’s an unknown quantity. Most companies have no comprehensive way of tracking the customer’s onsite experience, quantifying the size of this problem or taking instant action to eliminate losses. They rely on assumptions based on limited metrics. But having this insight is a game-changer for online revenue.

It’s the online equivalent of “your call is being recorded for quality and training purposes”. Then imagine taking all this real-time data (including all the equivalent recordings and linked request and response data) and using it to remove sub-optimal experiences, while the customer is online.

For Pizza Hut, this delivered £4.7M of additional eCommerce revenue in just one year. For Direct Ferries, it equated to a 1% increase in conversion rates (just imagine what a 3%, 4%, 10% uplift could do for your bottom line).

And the secondary benefits are equally impressive. Efficiencies right across the team will enhance proof of purchase, fraud validation, customer services and internal processes that directly deliver online improvements.

Sadly, for the customer, it’s still a reality that most businesses do little more than track the basic analytics of the numbers that arrive at the online store and those that either abandon or succeed to complete their purchase.

Without having the full picture of a customer’s eCommerce experience, the cost of not knowing could be significantly damaging your online revenue potential.

To find out more about how UserReplay Customer Experience Analytics can help you know the truth about your online customer experience get in touch

 

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What is the cost of a poor eCommerce Customer Experience? Think of it from a personal viewpoint. How many times have you been left frustrated by a bad eCommerce customer experience? How many times have you had an online transaction cancelled, timed-out or been driven to switch to a more user-friendly rival site?

It happens to all of us at one time or another…

CMO.com reports that an average of 10.9% of online revenue is spent on marketing. IMRG that global abandonment rates are rising. And the market view is B2C conversion is 1%-4% and B2B about 10%.

From our own research “Counting the Cost of Not Knowing”, we found that:

  1. 85% of organizations say understanding why customers may struggle with their website is a current challenge
  2. 82% have difficulties maintaining a single approach to eCommerce Customer Experience Management across mobile and web
  3. 89% believe eCommerce Customer Experience is a significant differentiator in their sector right now
  4. 76% plan to increase investment in online channels over the next 12 months

Delivering a seamless, rewarding eCommerce Customer Experience is paramount. It is damaging to keep upping the spend on driving people to your site if it is not delivering a good user journey.

It’s the key differentiator that drives loyalty and improved margins. Anything that damages or diminishes that experience is a dangerous and costly aberration.

Here’s the evidence…

The 2016 Christmas Season Consumer Survey reveals that: “19% of eCommerce Christmas customers were forced to shop with alternative retailers due to stock unavailability and delivery time constraints” (source: eConsultancy Blog). But this begs a key question: how many businesses know the price they are paying for out-of-stock and delivery constraints? How many potential customers clicked-off in frustration and took their loyalties and buying power to a competitor?

Probably, it’s an unknown quantity. Most companies have no comprehensive way of tracking the customer’s onsite experience, quantifying the size of this problem or taking instant action to eliminate losses. They rely on assumptions based on limited metrics. But having this insight is a game-changer for online revenue.

It’s the online equivalent of “your call is being recorded for quality and training purposes”. Then imagine taking all this real-time data (including all the equivalent recordings and linked request and response data) and using it to remove sub-optimal experiences, while the customer is online.

For Pizza Hut, this delivered £4.7M of additional eCommerce revenue in just one year. For Direct Ferries, it equated to a 1% increase in conversion rates (just imagine what a 3%, 4%, 10% uplift could do for your bottom line).

And the secondary benefits are equally impressive. Efficiencies right across the team will enhance proof of purchase, fraud validation, customer services and internal processes that directly deliver online improvements.

Sadly, for the customer, it’s still a reality that most businesses do little more than track the basic analytics of the numbers that arrive at the online store and those that either abandon or succeed to complete their purchase.

Without having the full picture of a customer’s eCommerce experience, the cost of not knowing could be significantly damaging your online revenue potential.

To find out more about how UserReplay Customer Experience Analytics can help you know the truth about your online customer experience get in touch

 

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Marketers have long relied on A/B testing to help make iterative improvements to their digital channels. And for questions that require more than just an either/or model, multivariate testing has given marketers the ability to validate a number of digital elements.

However, these online testing techniques are often focused on content and design decisions.

Grab Your Report: The ROI of Online Customer Experience Management

While A/B testing and multivariate testing can be critical components of conversion rate optimization, there’s more you can do to improve customer experience.

The Truth About Online Testing Techniques

If you want to deliver the best possible customer experience, you’ll need to utilize CX analytics first to capture the full value of A/B and multivariate testing.

The only issue is that some marketers have the wrong idea about the purpose of their online testing.

Online testing techniques are often used to make minute decisions. What should the copy on the CTA button say? What color should we use for the background image on our landing page? However, the true purpose of online testing isn’t to make such small decisions. The ultimate goal should be to understand your customer better.

Increasing customer lifetime value, boosting online registrations and improving overall customer conversion rates aren’t about colors or copy—they’re about knowing exactly how to minimize struggles in the customer experience.

But online testing techniques can’t reach their full potential if they aren’t applied broadly across your digital channels and if they’re not coupled with the right analytics tool. According to Forrester research, businesses are only applying online testing to 30% or fewer digital customer interactions.

To broaden the scope and effectiveness of online testing, companies need to integrate their techniques with customer experience analytics.

Bringing Customer Experience Analytics and Online Testing Together for a Better Customer Experience

Customer experience optimization doesn’t work if you’re only conducting many disconnected online tests. A stronger approach is to create a foundation of customer experience data and analytics that can scale across the business—not just in the marketing department.

This foundational customer experience data will help you target online testing techniques so you can make more informed decisions based on customer insights as opposed to simpler observations about colors and copy. And with a customer experience analytics solution like UserReplay, you can derive customer insights and apply online testing to the entire customer lifecycle through:

  • Discover Customer Experience Struggles: Rather than focusing on a low-level online test, UserReplay tracks entire individual customer sessions with event-based analytics. The discovery phase of CX issues and pitfalls (by using funnel analytics, form analytics, customer experience scoring, and more) provides the foundation of customer insights necessary to create hypotheses for potential online tests.
  • Monetize Customer Experience Issues: Don’t blindly execute a list of online testing hypotheses. Take advantage of UserReplay to monetize known points of customer experience struggles by quantifying the value of revenue opportunities and the number of customers affected. With a prioritized list of customer experience struggles, you can run online testing techniques that are more targeted.
  • Optimize the Digital Experience: Merging customer experience data with behavioral data from high fidelity session replays lets you apply technical improvements more effectively. Instead of disconnected online testing results, you’re left with greater digital intelligence that can help you delight customers and improve both conversion rates and loyalty.

 
Customers expect a lot from digital experiences—any minor struggle can quickly lead to lost revenue. Betting all your customer experience optimization efforts on online testing isn’t enough anymore. You need customer experience analytics to drive online testing further and help you focus and improve the true customer experience.

If you want to learn more about how UserReplay can fit into your online testing strategies, contact us today for a free demo of the solution.

optimizing the customer experience

Digital innovation has given consumers an abundance of choices in all industries. The “build it and they will come” mentality will no longer cut it and, today, businesses understand that customer experience is the key differentiator.

But to delight your customers you need to become customer insights driven. Not just collecting data from a wide range of sources but also quickly prioritizing the data that points out struggles and helps to convert your customers from browsers to buyers.

Grab Your Report: The ROI of Online Customer Experience Management

In our recent digital intelligence webinar, Forrester’s James McCormick reinforced this point, as whilst 73% of companies aspire to be data-driven, only 29% are good at turning insights into action.

So, how do you ensure your company avoids the 71%?  Michael Brady, CIO of Market America, joined our webinar to discuss how SHOP.com is driving business results through digital intelligence.

How Market America Uses Digital Intelligence to Improve Customer Experience

Market America, including their flagship site SHOP.com, is a top 100 internet retailer. As a group, they are ranked 59 among the 500 top eCommerce Retailers in the world. They have a virtual presence in 9 countries, represented by 5 languages and operate more than 300 websites supporting nearly 4 million visitors per month.

Needless to say, Michael Brady and the 250 + technology workers at Market America need a strategy to prioritize the actions that will deliver the highest value by improving the customer journey and ultimately supporting revenue growth.

Market America has implemented a process to help them focus on customer experience and conversion optimisation. As part of this process a daily report is generated. This report consolidates struggles or errors that their customers may encounter from all their sites, including any visitor comments captured. The report is sent to several functional departments in the firm making it’s way right up to the COO.

One challenge Market America faced was being able to validate the struggles in the report and get to the insights that helped them fix the issue quickly. They have addressed this challenge by capturing the UserReplay ID and integrating it with their solutions—from Voice of the Customer to analytics to application performance management. In this way, they can truly understand the individual customer struggles by seeing specific customer sessions and associated data.

Michael Brady explains, “Big data gives you an enormous forest to work with” but the insight we gain from UserReplay is “like seeing the forest for the trees”. Each session is a new opportunity to capture customer insights and support continuous improvement of the customer experience. Importantly, this insight is extended to many different departments, helping Market America become more proactive against customer experience issues:

  • Developers and technology employee – It’s not easy for developers to know which issue to address first but now the IT team dig into specific sessions and data to prioritize and resolve customer experience challenges quickly.
  • Marketers – The marketing team are tasked with differentiating the company. And with UserReplay, the user experience group can get granular data into specific journeys, both good and bad, to help optimize the user experience and reduce friction in the buying process.
  • Customer care employees – People expect frictionless service and session replay helps Market America customer care proactively reach out to customers who have experienced challenges on eCommerce sites, as well as deal with incoming calls professionally and efficiently.
  • The compliance organization – The ability to playback any user session help compliance ensure direct sales processes adhere to specific guidelines.­­
  • Quality assurance – QA is on a daily search for friction in the tech processes. With UserReplay, they can get data about even the smallest problems, across all their sites.

 
By integrated UserReplay across multiple departments the session replay and associated insight data is now a critical part of the digital intelligence analytics at Market America, helping them delight and retain their customers.

If you want to learn more about the keys to boosting a modern customer experience, check out our on-demand webinar, Building a Customer Insights Driven Business Through Digital Intelligence.

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Can you believe it’s been almost 25 years since the earliest iterations of application performance management (APM) tools?

As technology throughout the business changes rapidly, APM vendors have had to add newer and more powerful features over the years. But if infrastructure and operations teams want to keep up with the future, they should understand the 3 eras of APM and its humble beginnings.

Grab Your Report: Customer Experience Analytics (CEA) solution for online businesses

To do so, let’s focus on the 3 distinct eras of application performance management technology and see what infrastructure and operations teams concentrate on to drive business value moving forward.

The 1990s—The Age of System Performance Management

 

The world runs on applications today. But that wasn’t always the case.

This is why the earliest APM tools were actually system performance management tools that were meant to consolidate the network and make it easier to keep track of technical SLAs.

As the internet became a reality, businesses were relying on the IT Infrastructure Library to inform that service management processes. The best practices pointed to a “plan-do-check-act” mindset that worked well with client-service software models that existed entirely on premises.

The pursuit of single source of truth structure for systems and data made sense in this era, but would have been impossible moving forward if these system performance management tools didn’t evolve. This is when modern APM emerged.

The Early 2000s—The First Generation of Application Performance Management

 

Between 2000 and 2006, the focus started to shift from technical management to user management. SLAs were built from a user perspective as content delivery networks spread out and various departments relied more heavily on third-party technology.

APM tools had to start aligning end user performance issues with specific services. This was the first time IT faced a volume and prioritization issue. Application performance had become so important to business productivity that APM vendors had to catch up and offer more powerful end user experience features.

However, early demands for the ability to prioritize problems and solve them faster were only the beginning.

Late 2000s— Last of the Eras of Application Performance Management?

 

Forrester labels 2000-2014 as the golden age of the 3 eras of application performance management. The same trends that emerged in the early 2000s accelerated between 2007 and 2014.

DevOps became the standard for agile IT processes, this occurred almost as a necessity in the wake of cloud adoption, virtualization and the proliferation of smart devices and social media. There was still demand for greater APM capabilities.

And this is why APM vendors started uniting through M&A to make great strides in customer experience monitoring, back-end monitoring, third-party component management, and big data analytics.

Despite all of the advancements in the golden age, businesses have continued to evolve faster than standard APM can keep up with. Coming out of 2014, we’ve started to move beyond APM—the focus is now digital performance management (DPM).

Digital Performance Management—The Business-wide Iteration of APM

 

To this point, APM vendors have worked hard to add features and capabilities that moved APM from a technical tool to one that aligned more with business factors.

This means uniting customer experience analytics with APM to create a digital performance management strategy. However, marketing departments have been using customer experience analytics tools for years— it is not necessary to overhaul an APM tool to include these features.

If you want to use your APM tool to measure business benefits, revenue and customer experience, you need to integrate with customer experience analytics capabilities. That might sound easier said than done, but it doesn’t have to be complicated.

Contact us today and learn how to integrate any application performance management tool with customer experience analytics to build a DPM approach that unlocks revenue.





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For many years application performance management (APM) has been a trusted mainstay of infrastructure and operations teams. It provides valuable information to IT teams, helping them monitor complex applications and identify business critical issues.






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However, the analysts are predicting a change: APM is going to get bigger, bringing value to the Business as well as IT.­ As APM moves from the exclusive domain of the IT world, adding benefits more commonly familiar within the world of CEA, it has also been redefined as Digital Performance Management.

3 Application Performance Management Trends Signaling the Rise of Digital Performance Management

These 3 APM trends are taken from APM Digest extensive  4-part series trend report.

  • Advanced Analytics Transforming APM: Customer Experience Analytics will help unify IT and business stakeholders. Critical to this integration is the ability to analyze digital user experiences. And it’s expected that APM tools will introduce never-before-seen insights into the connection between CX and revenue.
  • Root Cause Analysis Is a Necessity, not a Luxury: Infrastructure and operations teams are often asked to do the impossible—to determine the cause of customer experience friction with almost zero information to go on. Even your best APM tool might not help you in this case. And unfortunately, this can cause a lot of friction between you and other stakeholders like the CMO. This trend indicates that APM vendors will make strides to make growing pools of information more actionable for the business.
  • APM Will Drive More Proactive IO Management: The IT support model has always been fairly standard. Users experience a problem, they report a ticket (when the problem is frustrating enough), and IT digs into the APM tool to fix technical issues. However, this reactive model doesn’t offer an opportunity to prioritize problems or anticipate them before they actually cause users to submit tickets. Becoming more proactive is critical for IO teams looking to drive business value.

 
These APM trends transcend simply making life easier for IO teams. While it’s nice for application performance management vendors to streamline infrastructure and operations processes, they now must go beyond tech insights to offer business value through customer insights.

<< Download your Report: Counting the Cost of Not Knowing - A Multi Region UserReplay Study >>

Digital Performance Management— Delivering Customer Experience Analytics to APM

Customer experience analytics is the key to bringing the IT and Business world closer. However, building customer experience analytics into APM tools could be like developing an entirely new solution.

Rather than forcing existing solutions to do something they aren’t designed for, there’s a demand to raise the focus from APM to DPM and beyond into the complete online experience.

If you want to learn more about integrating your APM solution with customer experience analytics for a more comprehensive approach that unlocks revenue, we can help.

Download the white paper to learn about how UserReplay shows the ROI of online CEM and how it fits into your existing APM solution and brings value to business stakeholders from every department.

John Thompson, CEO, UserReplay.





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Providing an omnichannel experience is increasingly important for traditional banks in order to compete against digital disintermediaries.  Customers are demanding omnichannel convenience—the ability to start a process on a mobile app through their smartphone, continue on their desktop, and complete the process at a local branch, all without losing progress along the way.

<< Register for the Live Webinar with Forrester & Market America by Clicking HERE >>

The banking industry is aware of this need and is a adopting new technology and ways of doing business to improve their customers’ digital customer experiences. Online banking app abandon rates reached nearly 98% just last year and banks are adamant about lowering those figures.

While customer journey mapping is seen as a solution to these omnichannel banking woes, high-level maps are not sufficient to fully appease customers—that is where customer experience analytics comes into play.

What Customer Journey Mapping Offers for Omnichannel Banking

A recent McKinsey case study pointed out the importance of customer journey mapping for banks pursuing omnichannel experiences. The main goal of the featured bank was to become more agile when it comes to integrating and modifying digital channels.

By mapping the customer journey from initial contact through engagement and, if applicable,  purchase, the bank uncovered that of the 80% of loan customers that visit the company’s website, 20% of customers continue online, 20% move to phone calls, 15% visit a branch, and the rest abandon the process altogether.

While this is great information to have, it is indicative of the high-level, channel-based information that journey mapping provides. When you start doing customer journey mapping, you can see the transitions between channels that are causing friction:

  • Gaps that lose customers as they switch between devices (smartphones, tablets, desktops, etc.)
  • Lost customers as they move across departments within the banking organization
  • Friction between channels such as social media engagement moving to the company website

 

The main drawback with relying solely on customer journey mapping is that no matter how intricate the end result is, you’ll still be left wondering what the granular details are of the friction—especially when it comes to recreating near-invisible intermittent issues.

This is why journey mapping should be complemented by powerful customer experience analytics as an omnichannel banking experience is designed.

Customer Experience Analytics Fills Gaps in Omnichannel Banking

The good news is that, even though digital pressures are weighing heavily on traditional banks, physical banking isn’t disappearing any time soon. Which is why some banks may take solace in the higher-level picture they receive from customer journey mapping.

However, more and more customers are going digital and that is the area of highest risk where traditional banking is in the greatest danger of losing them. Customer experience analytics allows your team to take a dive deep into individual customer journeys and see exactly which part of the process caused friction and sent them off to your competitor.

Rather than simply seeing that the jump from social media to a form on your company website caused friction, you can see that customers filled out half the form before giving up. With this information, you can understand that the user experience needs improvement, prioritize the issue based on its impact on revenue, and work with IT to fix it and improve conversion rates.

With this ability to monetize issues in digital channels, it is possible to capitalize on omnichannel customer journey maps that include non-digital channels. You have all of the data at your fingertips—and you have the final piece necessary to leverage the data and unlock revenue potential by engaging with customers more effectively.

If you want to learn more about pairing customer experience analytics with your customer journey mapping processes for better omnichannel banking, contact us today for a free demo of the UserReplay solution.

John Thompson, CEO, UserReplay.





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For eCommerce companies, the consequences of downtime are clear. Every second your website is down is a second that you are losing money. Understandably, uptime and disaster recovery are key concerns for operators.

But what about minor hiccups in the customer experience that impact your conversion rate?

The problem is (and always has been) a lack of visibility into these small but significant customer experience issues, leaving eCommerce operators to search for homerun improvements on their websites. Although these customer experience issues may only affect a small segment of users, they can present a significant revenue opportunity.





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Keep on reading to learn why the value of conversion rate optimization (CRO) and marginal gains has never been higher.

Do the Math on the Value of Conversion Rate Optimization

Conversion rate optimization certainly isn’t the hottest term in the eCommerce world. In fact, cloud.IQ CEO James Critchley points out that while over 2 million eCommerce professionals list SEO as a skill on LinkedIn, only 8,000 have CRO listed.

Everyone wants to believe that there’s one critical change that will make a world of difference for their businesses. In reality, there are a thousand paper cuts keeping your conversion rate in the 2% to 3% range.

It may seem obvious, but the simple math on CRO is consistently ignored. If you told your executives about a 0.2% increase in conversion rate, there may not be a lot of excitement at first. But if your conversion rate starts at 2%, this small example of CRO improvement can yield a 10% increase in the company bottom line—a figure that any business leader can get excited about.

The idea at work here is the theory of marginal gains. This is the thought that 1% improvements to various elements of a task will yield a far greater cumulative result. Knowing this, it’s easy to say that eCommerce companies could list every aspect of the customer experience and start focusing on making incremental 1% improvements that will have a major impact on the bottom line.

The real challenge is that so many organizations can’t see and pinpoint the specific issues within the customer experience that they need to improve.

Treating a Thousand Conversion Rate Paper Cuts

Beyond explicit downtime, there are certain conversion rate problems that won’t take much to uncover. For example, a widespread error with your forms that aren’t letting customers complete purchases. The biggest gains from CRO are for the problems that affect a small subset of your user base—the conversion rate paper cuts. Examples of these seemingly invisible issues include:

  • Regional form field issues (like inapplicable zip codes)
  • Technical issues with multi-tender payment
  • Poor search functionality that hinders customer experience
  • Mobile responsiveness on specific platforms or devices

As you dig into granular pieces of the customer experience, it gets harder and harder to visualize, monetize, and prioritize marginal gains with CRO. However, machine learning is emerging as a means to make CRO more accessible and valuable for eCommerce companies.

Using a customer experience analytics solution that leverages machine learning to drive CRO efforts gives you a chance to analyze customer behavior at scale and automatically prioritize optimization strategies.

Once you can see all of the minor issues that are impacting eCommerce conversions, you can plan beyond ‘homerun approaches’ to revenue gains. By treating your conversion rate paper cuts at scale with machine learning and customer experience analytics, you can start to unlock revenue potential you never expected and see the true value of conversion rate optimization.

If you want to learn more about the dangers of ignoring your conversion rate paper cuts and the gains you are letting sit on the wayside, download our free white paper, Counting the Cost of Not Knowing.




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conversion_rate_optimization_org

 

For several years now, traditional financial services firms have been under siege from a new market of financial disintermediaries—startups focused on using digital channels almost exclusively, to streamline financial services.

Whether you’re a bank, insurer, retirement firm or wealth management firm, you know that digital isn’t just a fad. Digital is a reality that financial services firms must deal with or risk losing even more market share and revenue to emerging FinTech companies. Succeeding in digital is predicated on delivering a superior customer experience. FinTech firms have had the upper hand in this regard, but traditional firms are making strides to catch up.

 

<< Book a Demo Now to See How You Can Increase Your Customer Experience ROI >>
 

 

Earlier this year we discussed the lower-level process of optimizing the digital customer experience in financial services. Now, let’s take a step back and understand the bigger picture of what the financial services industry is facing.

The New Financial Services Reality

Investments in financial technology have grown over 1,000% since 2010 (from $1.8 billion to $20 billion in 2015). These investments are expected to accelerate through 2020 as some FinTechs transcend startup status.

There are many residual effects of digital dominance in the financial services industry, but two important ones include:

  • An Uptick in Fraud: According to Financial Fraud Action UK, 2015 saw 26% increase in fraud in the UK financial services ecosystem, totaling €755 million. Specifically, there was a 72% increase in remote banking fraud, pointing to the effects of greater adoption of digital channels—both by consumers and financial services companies.
  • In-Person Banking Is Dwindling: Major banks and financial services providers are a long way from going entirely digital. However, consumer behavior is accelerating the shift. Branch banking is still going strong, but 40% of Americans haven’t visited a bank in the last 6 months.

These two opposing trends are indicative of a realization that multiple other industries have come to in recent years—consumers are willing to sacrifice some level of security for the convenience, ease, and better customer experience of digital channels.

Because FinTech disintermediaries can, in some cases, offer simplified account setup processes, more attractive rates and fees, and better overall experiences online, they are successfully eating away at the revenue that well-established firms have owned for years. Traditional financial services companies need an effective way to observe digital behavior and optimize customer experiences accordingly.

The Big Data Opportunity for Financial Services Firms

Capgemini Consulting research recently found that 37% of customers believe banks don’t understand their needs and preferences. At a time when customer experience is a key differentiator for digital financial services businesses, companies must be in tune with what customers need and want.

This is where customer experience data will play a role in digital financial services moving forward.

The same Capgemini survey also found that 60% of financial institutions see customer experience data and analytics (part of big data) as a means to creating competitive advantages while 90% go as far as to say that it may define future winners in the industry. Leveraging big data analytics to optimize the customer experience is an answer to keeping up with innovative FinTech startups while unlocking revenue you never knew you earned.

If you want to learn more about the digital landscape surrounding financial services as well as how customer experience analytics can help incumbent firms adapt to disruption, download our new ebook, How Financial Services Firms Can Uncover Hidden Revenue Opportunities in the Digital Channel.




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Dollar Sign Digital Pressures Financial Services Firms

 

Recently, we posted a blog about some crucial KPIs that traditional retailers need to understand in order to survive the transition to the digital era. In order to keep their customers and stay profitable, digital retailers need to monitor the ROI on advertising, keep track of the customer journey, and ensure they’re stocking the things that their customers want to buy. Additionally, retailers should focus on some important internal metrics—using customer experience data to fine-tune their internal resources and make smart investments.

Should You Change the Channel?

One-click ordering. Consumer rewards. Free shipping.  Customers demand conveniences that come as an expense to retailers. Just as an example, 20% of users will abandon their shopping cart if shipping costs are too high. By using analytics, digital retailers can understand which ecommerce features their customers demand right now, and which can wait.

 

<< Book a Demo Now to See How You Can Increase Your Customer Experience ROI >>
 

This approach can help amortize the cost of building and maintaining an ecommerce presence over a longer period, taking less away from the bottom line. As an example, Wal-Mart recently warned its investors to expect two years of decreased profits as they reinforce their online presence.

Are You Changing Fast Enough?

Thirty percent of online shoppers expect to make grocery purchases over the internet. That’s right—even grocery stores are seeing the necessity of an omnichannel strategy. If your brand or industry doesn’t have that strategy in place yet, it’s probably time to invest. Retailers need to future-proof themselves. We’ve already seen the rise of customer experience analytics, social media marketing, and mobile ecommerce. What might be coming around the corner?

Macy’s has just introduced RFID-tagging that allows unsold items in-store to be listed on their ecommerce platform instead of sitting on a shelf. Amazon has introduced dynamic pricing to maximize profits on the fly. Waitrose, a UK supermarket, has introduced digital personalization to boost orders by 24%. One or another of these innovations will allow you to recapture revenue, stay competitive, and remain relevant in the digital era.

Is Your Digital Operation Short-Changing Your Retail Stores?

Online coupons and other price promotions can be gold for ecommerce—45% of millennial shoppers have redeemed a coupon online as of Q3 2015. Because your physical stores will also have to honor the reduced price, however, your digital investments might be draining some of the profits out of your retail locations.

Digital business can definitely siphon money from physical retail, if customer experience is not optimal. More to the point, a lot of retailers can’t even tell it’s happening, because decision makers and analysts often don’t’ have access to integrated digital and brick-and-mortar sales data. Separate data silos now represent one of the largest barriers to accurate revenue analysis in ecommerce.

Recapture Revenue to Reinvest in Your Business

Digital commerce requires serious financial resources. Whether it’s more features on the frontend, or analytics on the backend, digital retailers can expect to invest a great deal of time, energy and money into creating an attractive, well-supported online store. Done poorly, this won’t just represent a waste of resources—it can also drain revenue from your physical locations.

Based on this assessment, it is absolutely necessary to capture as much revenue as possible from an online presence—and there’s where Customer Experience Analytics (CXA) can help. Essentially, CXA helps digital retailers to find ecommerce revenue that they’ve earned, but haven’t been able to realize.

For example, many customers will visit an ecommerce website, find a product they like, click to buy it—but then discover that due to an unforeseen technical issue, their purchase will not complete. Many ecommerce operators have these kinds of issues, and UserReplay can help you sniff them out and uncover what you’ve lost. One retailer was able to get back £4.7 million pounds per year!

For more information on how UserReplay can help retailers uncover hidden income that they can reinvest into their businesses, check out a demo today.



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Three More Crucial KPIs for Digital Retailers with coffee