Customers are in control. Michelle Beeson, Digital Commerce Analyst at Forrester, will share Forrester’s research into digital differentiation in the age of the customer, including its latest consumer and forecast data. The session will consider how new technology and changing consumer behavior is changing how retail organizations communicate with, engage and sell to consumers across multiple digital and physical touchpoints. The session will also share examples of how organizations, including those in the Food & Beverage sector, are responding to this changing business environment by improving digital customer experience, pursuing direct customer relationships and extending their business ecosystem of partners. Michelle Beeson, Digital Commerce Analyst at Forrester

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Differentiating In The Age Of The
Customer
Michelle Beeson, Analyst
May 2017

2. © 2017 Forrester Research, Inc. Reproduction Prohibited 2Source: www.heraldrecorder.org
Digital competitors thrive and disrupt

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Food & Drink is one of the fastest growing online
sales categories in Europe
CAGR (2016 to 2021)
for Food & Drink:
14%

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Super shoppers are here
Source: Global Consumer Technographics® Online Benchmark Surveys, 2016
European online grocery
buyers
27%
8%
23%
22%
20%Holdouts
Mobile shoppers
Researchers
Super shoppers
Traditional web
shoppers
European online adults
41%
8%
30%
13%
8%

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Customers are hyperconnected, empowered
and have new expectations

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Digital connection extends across contexts
Source: Forrester’s European Consumer Technographics Online Benchmark Survey 2015

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15%
39%
46%
Digital influence extends offline
Source: Forrester Data Web-Influenced Retail Sales Forecast 2016 to 2021 (EU7)
Online sales
Web-influenced
offline sales
Offline sales
By 2021, 54% of total
retail sales will be digitally
influenced

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Carrefour smart shopper app
guides shoppers from digital
research to offline purchase

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Technology adoption will continue to flourish

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Complexity is the new reality

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Customer experience leaders outperform peers
Source: Annual reports for fiscal years 2010 and 2015 from ING-DiBa, Commerzbank, John Lewis
and Debenhams Retail
https://go.forrester.com/data/cx-index/
Base: European Online Adults (UK, France, Germany,
Spain, Italy)
Source: Consumer Technographics® European Online
Benchmark Survey (Part 2), 2016
Annual growth rates, 2010 - 2015
For 60% European customers
a good experience with the
brand will make then buy
products again

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Each time a customer is exposed to an improved
digital experience, their engagement expectations
are reset to a new higher level

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No industry is immune
Agreement that your business
will be disrupted by digital
technologies in the next 12
months
Agreement that digital technologies is a major driver
of business strategy for your company

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Digital businesses continuously exploit digital
technologies to both create new sources of
value for customers and increase operational
agility in service of customers

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Accelerate digital transformation internally and
take advantage of value ecosystems

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Gatorade found that its direct
eCommerce site opened up new
customer groups including SME
customers

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Nestle Waters Ready Refresh
consolidates waters and
beverages, targeting both
consumers and businesses…

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…and secures regular
replenishment for ongoing
relationship

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Green & Blacks developed D2C
eCommerce for speciality goods,
distinguishing it from retail partners

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Nescafe connects customer to its retail partner
ecosystem making it easy for customers
https://www.nescafe.co.uk/

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https://https://www.yeovalley.co.uk/things-we-make/yeogurt/natural/reviews/
Yeo Valley
showcases products,
value added content
and the partner
ecosystem

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Philadelphia captures
individual customer
connections via
recipes on Facebook
https://www.philadelphia.co.uk/recipes/Philadelphia%20with%20Vegetable%20Pancakes?r=34
Base: European Online Adults (UK, France, Germany, Spain, Italy, Sweden)
Source: Consumer Technographics® European Online Benchmark Survey (Part 1), 2016
42% of European online
adults regularly follow
and read about ‘food &
cooking’ online

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Bose used partner ecosystem to
develop campaign to drive direct sales
with buy buttons

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For Kellogg direct commerce is first about
innovation

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New digital businesses
are emerging to create
new customer
experiences and
adding value through
partnership…

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…and new business models that
create new sources of
competition

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Orientate around the customer

28. #DigitalBusiness
Build dynamic ecosystems that open up
new possibilities

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Digital differentiators are a rare breed

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Digital maturity equals business growth
Forrester's Global Business Technographics Marketing Survey, 2015, n=227
Differentiators
Collaborators
Adopters
Sceptics
11%
9%
7%
6%
Three times as likely as Sceptics
to show double-digit growth.
Half show double-digit growth.
Most show moderate growth.
The most likely firms in the
sample to be shrinking.

31. FORRESTER.COM
Thank you
© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Michelle Beeson
mbeeson@forrester.com
http://blogs.forrester.com/michelle_beeson