In a recent episode of the EGN podcast, hosted by Efe von Thenen, Lucas Bergström, the Head of ISV at SAP Emarsys, discussed a significant shift in consumer behavior due to technological advancements and the urgent need for brands to adapt their strategies. With over a decade of experience in tech and digital marketing, Bergström outlined how the pandemic accelerated changes in the retail landscape and highlighted the critical role of artificial intelligence (AI) in enhancing customer experiences.
The pandemic orchestrated a seismic shift in how brands operate, particularly in the retail sector. Lucas Bergström shed light on the challenges faced by companies with extensive retail networks as e-commerce experienced unprecedented growth. Brands that failed to pivot their strategies found themselves at a disadvantage, illustrating the necessity to rethink both digital and physical presence in response to shifting consumer expectations.
The New Standards of Customer Experience
According to Bergström, understanding consumer interests and engagement patterns is paramount for brands striving to keep pace with modern demands. As consumer preferences evolve, technology becomes a vital tool for identifying those preferences through data analytics. For instance, companies must accurately target customers across their preferred channels, delivering tailored content that resonates with individual consumers.
This adaptation is not merely about survival; it’s about establishing a competitive edge. The integration of AI serves as a backbone for brands aiming to excel in customer experience. By efficiently processing vast amounts of consumer data, brands can offer personalized experiences that meet, and potentially exceed, expectations. The ability to predict consumer behavior through AI insights facilitates targeted marketing that aligns with purchasing tendencies, creating a more engaging shopping experience.
Navigating the Complex Retail Landscape
The dialogue on the podcast also spotlighted how the complexity within retail requires brands to unify digital and physical touchpoints. With the rise of new generations of consumers, expectations have shifted towards faster and more varied engagement methods. Innovations like live shopping and discovery-driven commerce are on the rise, particularly visible in Asian markets, where platforms like TikTok have transformed consumer interaction.
Bergström argued that brands can no longer afford to limit themselves to traditional engagement channels. They must diversify their presence across platforms such as TikTok and WhatsApp, ensuring that they are not just participants in the conversation but also leaders, adept at capturing attention in a crowded marketplace. These platforms cater to an audience that expects both immediacy and personalization in their shopping experiences.
Harnessing AI for Personalized Experiences
A focal point in the podcast was the role of AI in transforming data into actionable insights for brands. As exemplified by Bayern Munich’s collaboration with SAP Emarsys, utilizing AI to aggregate fan data enhances every aspect of the customer experience, from purchasing merchandise to attending live events. This strategy illustrates how brands can utilize AI to gather insights that span the entire consumer journey.
AI’s predictive capabilities are invaluable for adjusting marketing strategies. By analyzing trends and individual behaviors, brands can tailor offerings to meet specific consumer needs. For example, understanding when a customer is most likely to purchase can lead to optimized timing for marketing campaigns, ultimately increasing conversion rates.
Responding to Consumer Demands
The shift in dynamics prompted by the pandemic has led brands to adopt more cautious approaches to technology investments. Budget allocations now require the approval of Chief Financial Officers (CFOs), which has introduced a more strategic approach to the resource allocation process within companies. As Bergström mentioned, the need for seamless integration between marketing and IT departments has never been more critical.
Brands that successfully navigate this integration are better positioned to create cohesive customer journeys that meld online and offline experiences. This holistic approach not only helps to enhance consumer satisfaction but also encourages brand loyalty in an increasingly competitive marketplace.
Conclusion
In summary, the EGN podcast episode featuring Lucas Bergström provides valuable insights into the current and future landscape of consumer behavior. Brands must adapt to rapid shifts in technology and consumer expectations to remain relevant. By leveraging AI, integrating various consumer touchpoints, and creating personalized experiences, companies can ensure that they meet the demands of today’s market.
The podcast is a valuable resource for anyone looking to understand the intricate connections between technology, marketing, and consumer behavior. For those who wish to dive deeper into these pressing topics, the full episode is available for viewing, along with listening options on Spotify and Apple Podcast.