This article is part of an Essential Guide, our editor-selected collection of our best articles, videos and other content on this topic. Explore more in this guide:
1. - OpenWorld 2013 : Read more in this section
- Oracle HCM Cloud strategy explained
- OpenWorld 2013 wrap-up: Oracle swipes at SAP with in-memory database
- OAUG on new features in Oracle EBS 12.2
- DBA: Database 12c Multitenancy far superior to transportable tablespace
- Best practices for Oracle Solaris upgrades detailed at OpenWorld
- Cloud, enterprise social networks growing on CFOs
- Getting kids started with coding
- Strong app architecture with data warehouse concepts
- What to do when activity and data volumes spike
- Oracle customers tout big data success
- Database as a service: A new offering from Oracle
- Oracle gets more serious about the cloud with 10 new services
- Incorporating big data gives a competitive edge, according to Intel
- Oracle EMEA update: Oracle continues to push cloud
- Businesses need strong digital conversations among C-level executives, says PwC
- Tesco uses multi-channel approach to create fluid customer experience
Explore other sections in this guide:
This opens up multiple channels of conversation with its customers, enabling the retailer to fine-tune its CX offering.
Tesco was invited to talk about its customer experience strategy during a keynote at Oracle OpenWorld in San Francisco. It currently uses a number of Oracle systems, including its database and analytics platform as well as Oracle ATG and Oracle RightNow for CX.
The retailer, whose Clubcard has been offering loyalty rewards to customers for nearly 20 years, has been at the forefront of a number of digital innovations.
CIO Mike McNamara said that two years ago the company was still experimenting with its mobile app, but over Christmas 2012 website visits from mobiles exceeded PC visits for the first time. The company, which was the first grocer to provide online delivery for food, has also installed augmented reality mirrors, which allow customers in-store to virtually try on clothes, and recently launched its own 7in tablet, the Hudl.
“Retail 2020 will be radically different from what we know today,” said McNamara. “Increasing numbers of people are riding the digital wave – its force is unstoppable. If you let it crash over you, it will wipe you out.”
Customer expectations in a digital world
Due to the advancement of technology so quickly in recent years, customers have high expectations from businesses, and will easily become frustrated with any technology problems, said David Vap, group vice-president of product development at Oracle.
More from Oracle OpenWorld 2013
- Oracle extends cloud
- Incorporating big data lends competitive edge, says Intel
- OpenWorld and JavaOne 2013 conference coverage
- How to get kids involved in coding
- Oracle customers continue to invest in big data
- Businesses need to have constant digital conversations with the CIO, says PwC
- Oracle OpenWorld 2013: Oracle launches database as a service
He said 26% of customers would post a negative comment on social media if they have a bad experience with a company, while 86% will stop doing business with the organisation.
But 69% of employees are feeling disengaged with their work environment. “How can you expect to get great customer experience to be delivered if you’re not enabling great employee experiences?” Vap questioned.
According to Vap, the problem is that different areas of an organisation run independently – they have different leaders, key performance indicators (KPIs) and possibly situated in different geographies.
“There’s no communication between those siloes,” he said. “Those customers don’t care, they didn’t get the memo. A customer sees you as a single organisation, and they have a journey that goes through a lifecycle – that they will hopefully repeat – and this is how they evaluate you as a business, choose whether they do business with you again, or even how they recommend your business.”
Vap said it is necessary to have a number of different channels to communicate with your customer.
Combining digital and physical retail approaches
McNamara said the cloud is powering the world, providing customers with the ability to update their lives across multiple devices, as well as living in the physical world of bricks and mortar stores. Because of this, McNamara said Tesco had to stop thinking about its customers in siloes.
More on Tesco IT
“We’ve seen the emergence of a seamless, blended world of physical and digital,” he said. “And we enable the customer to move between those two worlds.”
Matt Atkinson, chief marketing officer at Tesco, said the physical bricks and mortar stores will not disappear. “The point about physical stores is to build on top technology to enrich their lives.”
He said prices will become increasingly personalised, with more targeted promotions, while physical stores will become very finely tuned to tend to local taste and needs: “This is mass customisation.”
Tesco’s Clubcard will also become digital by the end of the year, allowing the paper coupons customers receive to seamlessly integrate with the mobile app, so that at the point of sale, promotions will be instantly recognised.
Atkinson also told Computer Weekly that a fully integrated Clubcard and digital wallet, which is currently being trialled in Korea, is about a year away from being launched in the UK.