Using digital technology to improve customer experience is the best way for companies to become more innovative and competitive. In fact, it’s the reason why companies like Walmart, Target, IKEA, Domino’s Pizza, and others have become successful in their industries. Having a good idea of what digital innovation is, and how it can benefit you, will ensure you’re able to capitalize on this trend.
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Target
Despite Target’s successful digital in-store strategy, the company continues to make significant investments in its digital future. In fact, the company is investing billions in order to win in this new era. The company is rethinking its brick and mortar store designs to cater to digital customers, and it’s expanding its fulfillment capabilities.
During the past two years, Target has remodeled more than 400 stores. These remodels yield an average sales increase of 2% to 4%. In addition, Target is expanding its same-day delivery service by purchasing Shipt for $500 million.
The company also plans to build more distribution centers, and plans to open one DC on each coast by 2022. The company’s in-house software development team has built a single enterprise platform to support its digital initiatives.
The company has been using virtual reality and augmented reality to test new technologies. These tools can also be used to improve the performance of equipment.
In the future, Target wants to focus on creating an inspiring shopping experience for shoppers. In a recent investor call, CEO Brian Cornell discussed the company’s digital strategy.
In the past four years, Target has seen 25% growth in its digital channel. The company is using technology such as AR/VR to improve the customer experience. It’s also investing in “last mile” delivery, so that consumers can pick up their online orders in stores.
In the future, Target expects to have a hyperlocal distribution center that combines physical and digital experiences. They’ve created an app that lets shoppers search for items in their local store. This app also lets shoppers create a shopping list in the store and view their aisle location.
IKEA
Changing consumer habits and the need for an omnichannel approach have prompted IKEA to reinvent its business model. The company, which has been selling home goods for 80 years, now wants to engage with younger consumers, and has invested in new interfaces and technologies.
In order to do this, IKEA has launched an app, a virtual reality application, and a click and collect program. These are all meant to improve the in-store experience and create a seamless journey for customers.
The app allows customers to scan items as they shop and bypass the checkout line. It also features a virtual reality application, enabling them to see how furniture looks in their homes. In addition, IKEA has launched a contactless Click and Collect program, which allows shoppers to order in advance and pick up their purchases at any store. The program requires integration with POS systems, inventory tools, and eCommerce front ends.
A key element of IKEA’s digital transformation is that it is redefining its internal operations to make them more efficient. This included reshaping the company’s culture. IKEA employees had felt that the firm had become too bureaucratic and had lost its core values in recent years. IKEA’s re-evaluation of its strategy alerted them to the potential of the future.
IKEA’s shift reflects its core concept. The company’s goal is to provide cost-efficient and innovative products that enhance the lives of people around the world.
IKEA has invested in developing new technologies, such as VR/AR capabilities, and has improved 3D modeling capabilities. It has partnered with Google Cloud to set up contactless Click and Collect services. It is also looking at ways to lease furniture and bring the store ordering function in-house.
Domino’s Pizza
Among the major fast-food brands, Domino’s has a unique competitive edge thanks to its innovative digital innovation. Its re-engineering of its product has allowed it to expand and enhance its revenues in a short time.
The brand has also re-engineered its image and reputation. Its aggressive campaign paired with its digital strategy brought about a huge increase in its sales. In fact, in just a few years, the company’s annual revenue grew from $5.6 billion to $9.6 billion.
One of the most important innovations that the company has introduced is the Pizza Tracker technology. This software is designed to give consumers live updates on their orders. In addition, the software improves cost management and franchisee operations.
Another key digital innovation that the company has introduced is Anyware, a mobile application that allows customers to order from anywhere. This app supports Amazon Echo and Siri, as well as Google Home. It’s also available through Facebook Messenger, Slack, Apple TV, and Samsung Smart TVs.
The pizza brand is also experimenting with robotic delivery, as well as using drones to deliver pizza. These initiatives are part of its strategy to make its brand more modern and humorous.
Domino’s also redesigned its store design. Its “pizza theater” concept includes a comfortable lobby, open-area viewing of the food preparation process, and a technology-powered point of sale system. In addition, it has an automatic car that enables contactless delivery.
The company’s IT team was charged with digitalizing the customer experience. They developed the “build and order your own pizza” app and built a roadmap for the future.
The company has also launched a number of other groundbreaking digital innovations. For example, it was the first to launch an application for the Amazon Echo. It has also developed a drone for delivering pizzas in New Zealand.
Walmart
Using technology, Walmart has become the world’s largest digital innovator. As a result, Walmart has been able to drive higher customer satisfaction, increase sales and boost financial returns. In fact, Walmart reported $134.7 billion in revenues in the third quarter of 2018.
Walmart’s strategy is to become a digital company. In order to do this, the retailer is developing its own technologies. In addition, it is collaborating with companies and universities to solve customer problems. These technologies include robotic process automation, artificial intelligence, and cognitive computing. In recent years, Walmart has also made investments in cloud-based solutions.
These innovations have helped Walmart to address many industry issues. For instance, it uses RFID chips on products to track product usage and maintain inventory levels. In addition, it uses data to offer more relevant offers and offers more convenient payment options. It is also working on ways to improve its delivery services.
Walmart is also partnering with other retailers and suppliers to provide real-time inventory visibility. In addition, it is experimenting with self-driving vehicles. The partnership with Ford will help the two companies gather consumer data and learn how to better connect people with goods.
As part of its innovation initiatives, Walmart is implementing voice AI for employees. It will test how employees use voice technology in different contexts. In addition, Walmart is acquiring startups and companies to integrate advanced tech. In this way, it can rapidly iterate on new experiences.
In addition, it is also integrating augmented reality into stores. This means that customers can scan Zapcodes at Walmart’s stores to activate an augmented reality experience. The goal of this is to attract more attention from customers.
Embrace it to shape the world of customer experience
Across the board, customer experience has become more and more digital. Everything is done in real time, and the speed of response is dictating consumer behavior more than ever. It’s no wonder that customers are looking for experiences that leverage digital technology.
A good digital customer experience doesn’t stop when a purchase is made. It extends to online and voice-activated environments, as well as the customer’s interactions with the brand. It’s no surprise that a good digital customer experience can result in better customer loyalty and lower costs.
The best digital customer experience is one that turns satisfied customers into brand advocates. It’s also one that drives employee engagement. Companies that provide great customer experiences create conditions for better employee morale, as well as lower costs.
It’s no secret that the digital technology industry has been growing rapidly in the last two years. But how have companies reshaped the way they engage with their customers?
In fact, most businesses have shut down their physical stores and moved their business online. They have also started leveraging new tech, including social media, to engage with consumers.
As a result, the digital customer experience has evolved significantly in the last few years. As customers spend more time interacting with businesses, brands must ensure they meet their needs on every channel. A good omnichannel customer engagement strategy retains 89% of their customers.
A good digital customer experience has three basic components: a well-crafted online presence, a well-integrated system for understanding customer preferences, and the ability to meet customer needs in real time. Some companies do all three, while others deliver in a waterfall-like fashion.
The best digital customer experience can’t be found in a sales brochure or in a fancy website. It requires a major ongoing program of improvements. This is where the new operating model comes in.