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Differentiating In The Age Of The CustomerMichelle Beeson, Analyst
May 2017
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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 salesBy 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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Customer experience leaders outperform peers
Source: Annual reports for fiscal years 2010 and 2015 from ING-DiBa, Commerzbank, John Lewis and Debenhams Retailhttps://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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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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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.
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Michelle Beeson
[email protected]://blogs.forrester.com/michelle_beeson