In a recent episode of the EGN podcast, hosted by Efe von Thenen, Lucas Bergström, the Head of ISV at SAP Emarsys, provided valuable insights on the transformative impact of technology on consumer behavior. This conversation is particularly relevant for brands looking to stay competitive in an increasingly digital environment. With a decade of experience in tech and digital marketing, Bergström discussed the changes prompted by the pandemic and the burgeoning influence of artificial intelligence (AI) in shaping customer expectations and engagement strategies.

The pandemic has instigated a profound shift in the way consumers interact with brands. Bergström noted that businesses with significant brick-and-mortar presence faced unprecedented challenges, while e-commerce experienced a remarkable surge. This new landscape has compelled brands to adapt their strategies promptly. Companies are now required to integrate technology thoughtfully into their operations, where seeking CFO approval for digital budget allocations has become a norm. The growing need to merge online and offline experiences signals a crucial pivot for marketing and IT departments, aiming to create cohesive customer journeys.

The Importance of Integration

Seamless integration of digital and physical touchpoints has become essential in today’s retail landscape. Consumers expect a cohesive experience that flows effortlessly across various channels. Bergström highlighted trends such as live shopping and discovery-driven commerce, particularly resonant in Asia. The rise of platforms like TikTok and Shein exemplifies this shift, whereby consumers now anticipate speed and a variety of engagement options.

Brands must expand their reach across diverse platforms to meet these expectations. Engaging on channels like TikTok and WhatsApp could be the differentiation point between maintaining relevance or fading into obscurity. This change not only requires tactical marketing moves but also a shift in mindset towards viewing consumer interactions as multi-faceted rather than linear.

Harnessing AI for a Competitive Edge

As outlined by Bergström, AI is playing a significant role in transforming how brands understand and engage with their customers. The ability to handle vast amounts of data is essential for delivering personalized experiences that cater to individual preferences. For example, Bayern Munich utilizes SAP Emarsys to aggregate fan data, enhancing experiences in areas ranging from merchandise sales to attending live matches.

This illustrates a vital point: personalization fueled by AI is no longer a luxury but a necessity. Brands can harness AI to predict consumer behavior and tailor marketing strategies accordingly. By analyzing patterns from data, companies can deliver timely and relevant content that resonates with their target audience, enhancing engagement and driving conversions.

Adapting Quickly in a Dynamic Environment

Bergström’s insights provide a clear message: brands must act quickly to remain relevant in this fast-paced environment. The intersection of technology and consumer behavior is evolving at breakneck speed, driven by the digital acceleration witnessed during the pandemic. Companies that fail to adapt risk losing touch with their audience and falling behind competitors.

For instance, integrating personalized marketing techniques not only boosts customer satisfaction but can significantly enhance conversion rates. Research indicates that personalized experiences can deliver up to five times the ROI on marketing spend. This underscores the necessity for brands to invest in technologies that enable them to offer tailored interactions.

Conclusion

The recent discussion with Lucas Bergström draws attention to the imperative for brands to rethink their strategies in light of technological advancements and shifting consumer preferences. As we enter a new era characterized by greater demand for personalization and seamless integration, companies must leverage these insights to stay ahead of the curve.

For those invested in the future of consumer engagement, the podcast offers a wealth of knowledge and serves as a reminder that adapting swiftly is not just advisable, but vital.

Want to learn more about these topics? Watch the full talk below: Can’t watch? No problem. It is also available on Spotify and Apple Podcast.