How the Internet of Things Will Impact Retail Sooner Than You Think

In the popular sci-fi film Minority Report, there’s a scene where the main character, played by Tom Cruise, walks through a mall and is bombarded by personalized greetings from digital billboards and holographic retail offers based on his previous purchases.

When Minority Report hit theaters in 2002, we were carrying around black and white feature phones and pagers–the Motorola Razr was still two years away from being released. If companies wanted to gather mobile data on consumers, they lacked the tools (or the network) to do so.

Thirteen years later, targeted, data-driven advertising is a reality, and personalized retail recommendations (at least online) are becoming increasingly sophisticated. Neither have really crossed over into the in-store environment.

How close are we to that vision of the near future? And is getting there worth the cost and effort?

I recently debated those questions onstage at San Francisco Design Week, where I sat on a panel focused on how retailers will use the Internet of Things to improve customer engagement both in-store and online. I was joined by panelists Matt Allred from Walmart.com, Scott Amyx from Amyx+McKinsey, Mariel Vargas from Macys.com and Kevin Weston from Float. Our moderator, Robert Burns Nixon, executive producer at the Retail Tech Summit, guided a wide-ranging discussion.

Highlights:

How do you define the Internet of Things/Internet of Everything in shopping?

The panelists had different definitions of IoT and IoE, based on their background, defining it as either:

  • A product or physical object that gives you information, knows you and reacts to you.
  • A networked device or object that gathers data or acts on data.
  • A body area network that connects to a connected home- or work environment, a wireless sensor network or wide-area ambient computing network.
  • Devices that are connected to the Internet that are either passive (data collectors) or active (they interact with the user).

What are the engagement opportunities for retailers who invest in IoT?

This was an area of some debate and disagreement, which made for entertaining discussion:

  • The Internet of Things can make things easy for consumers when it comes to shopping, such as the refrigerator telling me when it’s out of something, or that my shoes are wearing out. Many home electronics, such as televisions and home theater systems are already WiFi enabled; a WiFi-enabled refrigerator isn’t far off, from my point of view.
  • Inventory planning and returns for retailers, to improve production efficiencies and the demand-driven supply chain, allowing for just-in-time production and replenishment.
  • Miniaturization of sensors, to the point they can be embedded into consumer products to signal to the owner and the supply chain.
  • Consumers can get personalized experiences in the store (similar to the Minority Report example) through data collected by sensors and cameras.
  • Giving retailers the ability to measure the emotional impact of store displays through social media analytics and sensor data inside the store.
  • Addressing issues such as shopping cart abandonment in the physical store–which currently can only be done through embedded sensors.

What are retailers doing to address omnichannel and IoT?

  • A simple thing retailers can do today is making sure the merchandise buyers for their online and physical stores are the same, to maintain inventory consistency and efficiency.
  • Technology investments need to be made–either through a usage-based cloud model or through traditional licensing. Due to a retailer’s high volume of transactions, both models represent a significant investment.

What are the top challenges facing retailers in this space?

  • It’s difficult and expensive to get high-end network connectivity inside a retail store.
  • It’s expensive to produce omnichannel content (digital images, video and personalized messages).
  • There’s typically an inverse relationship with complexity–the easier that a retailer makes things for a consumer, the harder and more complex those technologies are to implement.
  • While retailers have steadily made investments and progress in online shopping and the supply chain, the technology powering in-store experiences hasn’t changed much over the past 10 years.
  • Retailers cannot afford to lag behind their peers; consumers dictate the pace of how stores and shopping will change.

Ultimately, it’s about overcoming the inertia of past practices and investing in technology that drives hard metrics: revenue-per-square-foot inside stores and better data leading to higher revenue online.

I’d like to thank the Retail Tech Summit for inviting me to speak on the panel, and my fellow panelists for a spirited and educational discussion. For more thoughts on IoT and to read posts from other Avaya executives on the subject, visit http://www.avaya.com/blogs/archives/tag/iot.

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Leveraging Big Data to Fine Tune Customer Experiences

Whether you realize it or not, big data is at the heart of practically everything we do today. Billboard companies, for example, are now leveraging eye tracking and traffic pattern analysis to gauge interest among drivers. Chances are one of those drivers owns a 4G-enabled vehicle that can track such things as performance and maintenance history. That person can also now record and analyze their utility usage via smart home solutions—anywhere, anytime. On a more critical level, doctors can now record and analyze patients’ heartbeats and breathing patterns to develop life-saving predictive algorithms.

In today’s smart, digital world, big data has opened the floodgates to never-before-seen possibilities. It has the power to course-correct potentially devastating outcomes, and it’s become a necessity for continually refining the customer experience. If you ask us, though, the best customer experiences today are supported by customer journey analytics.

The Need for Customer Journey Analytics

Customer journey analytics is a process that requires tracking and analyzing the way customers use a combination of available channels to interact with an organization. These channels range from human interaction (like speaking with a contact center agent) to fully automated interactions to assisted service (like live chat and co-browsing).

The need for customer journey analytics is simple: data solutions of the past simply won’t meet the next-generation customer needs of today and the future. Consider that just 10 years ago, channels like Web chat and social media were in their infancy (Facebook had only been around for two years). At the same time, the world’s first smartphone had only been on the market for one year. A lot has happened to transform the customer experience in a very short amount of time. As companies move forward in today’s age of rapid tech innovation, they must be armed with the right data strategy.

As mentioned, customers today use a vast number of channels and devices to interact with the brands they love. Each channel and device offers its own set of diverse scenarios for linking to other channels and devices, making no two customer experiences the same. Companies must be able to understand customers’ actions on any given channel or device in order to infer insights and create anticipatory engagement at the individual account level. For instance, why did one customer choose to purchase a product in a retail store verses online? Or, why did a customer end a live chat session before his or her inquiry was handled?

This level of understanding requires a comprehensive view of the data gathered from all channels and interactions that proceeded the moment in question. Customer journey analytics is a process designed to provide this comprehensive view and deliver deep benefits organization-wide—so much so that 60% of all large organizations are expected to develop customer journey mapping capabilities by 2018, according to Gartner.

Making Customer Journey Analytics Work for You

Companies need a data-driven customer approach to survive—and it needs to be effective to thrive. Many companies, however, struggle with taking their customer data and turning it into actionable results. In fact, a 2015 study conducted by PwC found that 43% of companies obtain little tangible benefit from their data, while 23% derive no benefit whatsoever.

To effectively apply your data, you must first determine what you wish to achieve with your data in the first place. In other words, what key objectives do you hope to achieve or improve upon by using big data (or specifically, customer journey analytics)?

Not sure? Here are four core initiatives to start you on a path to maximize your customer journey analysis efforts:

  1. Enable self-service.

    Self-service options—especially mobile—are rapidly increasing in popularity. Just consider that in 2015, Apple users downloaded over 51,000 mobile apps per minute. Also last year, 90% of customers used their smartphones in stores to make price comparisons, research specific products, and check online reviews.

    In today’s mobile-first world, businesses should leverage customer journey analytics to develop a sophisticated and integrated mobile experience—one that seamlessly integrates self service into their mobile app via visual, in-app self-service options. Conversely, this experience should offer customers callback options (either immediate or scheduled), as well as mobile chat (automated or agent-assisted) and video service. In addition to offering a stellar mobile UX, businesses should ensure backend capabilities that intelligently route customers to agents based on available context in order to drive relevant, meaningful interactions.

  2. Improve resource matching. We live in a world today where cars can park themselves and doctors can 3D print new organs, yet we still struggle with routing callers to the right subject matter experts. The time for next-generation routing is now, and it all starts with improved resource matching—specifically, attribute-based matching. This means matching customers with agents based on rich context, business KPIs, and organizational goals across all work items, channels, and resources to drive segmentation, increase prioritization, and determine the best course of action per customer.

    This also means choosing the right resources for each customer, regardless of where the resources reside within the organization. The right subject matter expert, for example, could be a contact center agent, a supervisor in your billing department, or your VP of sales. Customer journey analytics provides a 360-degree view of available resources organization-wide to support this level of attribute-based matching.

  3. Increase agent awareness. Not only is it important to collect the right information, but it must also be presented in a way that is visually understandable and easily accessible for agents. Imagine, for example, an agent being able to see where a customer has been on the company’s website over the last month, as well as that person’s live chat interactions last week. Imagine an agent being able to quickly see that a customer sent an email two days ago regarding a recent bill, or reached out via SMS because the company’s mobile app wasn’t working properly. Imagine if agents could gain this 360-degree, comprehensive view all in just one or two clicks of a mouse.

    Data is continuously generated in different ways, and is consumed by different people across different processes and applications. Having the right information at the right time empowers agents to focus on customers’ needs without having to ask for the same information multiple times (which, as we all know, is one of today’s greatest customer frustrations).

  4. Ensure continuous improvement.

    When it comes to big data, businesses can’t manage what they can’t measure. Therefore, it’s important that companies measure their data both in real-time and historically to help improve systems, processes, and applications over time. This is what will enable them to consistently deliver on key business objectives, operate within budget, and maximize every customer experience. Here are four key technologies for ensuring continuous improvement:

    • A data collector that can collect, standardize and normalize raw data across any data source so it can be used for enterprise-wide reporting and analytics.
    • A processing engine that can correlate, translate, calculate and publish normalized data into meaningful business measures.
    • A visual presentation platform that provides unified, real-time and historical reporting and analytics dashboards that can be used to visualize, analyze and explore key business measures.
    • Predictive analytics to discover new trends, apply changes based on insights, and continuously improve applications, workflows, self service and routing decisions.

So, how can you succeed with these four objectives to fine tune your customer experiences? That’s an entirely new discussion—however, we can tell you this: invest in a customer engagement platform that:

  • Provides a single view of customer interactions across all systems
  • Allows you to add data sources quickly
  • Can correlate data across both real-time and historical systems
  • Boasts an open and extensible reporting and analytics framework

Experience is everything. Learn How Avaya Oceana Works.

Verbio Brings Voice Biometrics to Avaya Breeze™

If you’ve been following the Avaya Connected Blog in recent weeks, hopefully you’ve read about the changes Avaya expects to see in Customer Engagement as we roll out the Avaya Oceana™ Solution, a contact center suite for the digital age.

And perhaps you’ve read how Avaya Oceana is built upon the flexible platform of Avaya Breeze™, which offers extensibility through a Snap-in architecture, creating new opportunities to extend and customize customer and team engagement interactions further.

I’ve previously highlighted how some of our DevConnect Technology Partners are leveraging the Avaya Breeze Platform to do just that, and I’m happy to add Verbio to the growing list of value-added Snap-in vendors.

I had the opportunity recently to speak with Piergiorgio Vittori, who heads up Americas Sales and Global Partnership opportunities for Verbio, as they recently completed DevConnect Compliance Testing of their Verbio Voice Authentication Snap-in for Avaya Breeze. Piergiorgio indicated that it took “about two months, end to end” to bring this voice biometric solution to market, “including design and requirements, programming, testing, demos, tuning, and documentation.”

I daresay that there aren’t many ways to bring out a flexible, biometric-based capability set in that short of a timeframe, which I offer up as a tremendous proof point for how Avaya Breeze really simplifies key aspects of application and communication services integration.

Verbio’s solution, which couples a Breeze-based Snap-in with their core SaaS-based biometrics capabilities, extends the speech search and ASR/TTS capabilities inherent with Avaya Breeze to a new level of speech capabilities, while maintaining a consistent and familiar type of request and error handling methods to be leveraged by other application developers. The Snap-in itself simplifies many of the tasks associated with passing data to the Verbio engine, acting as a sort of Verbio-proxy for application developers already working in an Avaya Breeze environment.

Voice Biometrics has a number of potential use cases, especially when it comes to automated events and actions. From a security perspective the use of voice biometrics can help ward off social engineering hacks, while its application in contact center domains can increase agent utilization and reduce overall call time by eliminating the need to verify a specific users’ identity through numerous Q&A interactions. In this latter case, a users’ voiceprint can very much act like their conclusive identification.

Enterprises and contact center (or even public safety concerns) can further leverage voice biometric analytical capabilities as an emotion detector to determine whether the validity of the users request is being influenced by stress or emotional status.

All of which makes a great proof point for the power of Avaya Breeze in helping to transform how our customers conduct business in this digital age.

Avaya Oceana: Riding the Next Wave in Customer Experience

Earlier this month, the CFI Group, which issues the annual American Customer Satisfaction Index, issued the Contact Center Satisfaction Index (CCSI). Here are some of the key findings:

  • The index shows a four-point decrease in customer satisfaction from 2015 to 2016, sliding to the lowest score in the nine-year history of the report.
  • Difficulties are driven by the ability (or lack of) to quickly and effectively solve customer issues: Only 52% of contacts were resolved on the first contact and a third could not successfully self-serve through the IVR system.
  • Millennials have higher expectations for service than those 45+ perhaps largely due to their sense of immediacy and highly digital, multi-modal nature.

Bottom line: The CCSI news isn’t good regarding contact centers’ ability to deliver an excellent experience. And that results in reduced revenues for your business as customers go elsewhere to satisfy their needs.

From our point of view … the timing couldn’t be better. Here’s why: Avaya Oceana just went generally available.

As long-time leaders in customer experience technologies, we know there are two critical points of opposition underlying the findings of the recent CCSI report. One is that consumer technologies and customer expectations change at an ever-increasing pace—even more so for millennials—your next generation of disposable income. This change is so rapid that some business technologies can be nearly obsolete before fully implemented. Second, because of this rapid pace of change, enterprises often hesitate to commit to new technologies that may disrupt a precariously-built, but functional operation—many of which resemble a Jenga stack whereby if one piece is touched the whole shebang comes tumbling down.

There’s a third factor that’s worth mentioning: traditional contact center technologies have been rigid, highly complex solutions, making changes to deployed systems difficult at best. Over time, what may be left as a result are ancient artifacts of routing patterns, complex integrations, and more that—at minimum—slow responses to potentially already frustrated customers.

Avaya Oceana to the rescue! Oceana simplifies that with a flexible, software-based solution that can negate those opposing forces. Suddenly, aligning customer needs and business strategies is as easy as drag and drop, so changes can be made without the traditional hold-your-breath-and-see-what-happens approach that causes migraines and drives significant resource requirements. The easy-to-use, self-adjusting system knows how—and in many cases, why—the customer is reaching out, managing proactive, self service and assisted service as a single thread.

Intelligence gleaned via Oceanalytics can be automatically applied and visually reported to those who need to know, who can also make immediate changes in the workflow pattern without esoteric programming requirements.

What’s more? Since Avaya Oceana is built on Avaya Breeze™ Platform, companies have massive flexibility to quickly customize their approach to customer experience—again with simplicity and ease through the development tools or pre-made Snap-ins from the Avaya Snapp Store.

The end game? To deliver the best experience possible every time in the course of a transaction or in the relationship overall.

While much of the magic of Oceana is behind the scenes, essentially, the solution enables companies to fully realize the omnichannel experience that many talk about and few truly deliver.

Experience is everything—Avaya Oceana enables proactive, persistent, contextual highly personalized experiences. The kind of experience even a millennial could love.

Watch the Avaya Oceana video.