The Future of eCommerce — Memo
Emerging virtual reality and augmented reality technologies will lead to more personalized and immersive customer experiences between brands and users in the B2C space. For the next emerging purchasing generation (e.g., Millennials, Gen Z, or Gen Alpha), VR/AR experiences will be more than a brand gimmick, but a critical part in brand storytelling.
By recombining existing technologies, such as identity resolution technologies (e.g., LiveRamp, MixPanel) and cloud-storage platforms, (e.g., SalesForce Marketing Cloud, Google Marketing Cloud), AR/VR platforms will be customer and privacy-centric to maximize customer lifetime value.
Today, consumers dictate to brands due to the rise in choice. This includes more privacy-centric best practices in data collection and usage. One response from brands to this demand is creating more customer-focused walled gardens to maximize the customer value exchange. eRetailers, such as Walmart and Amazon are the leaders in this strategic approach, offering adjacent services outside typically online and offline shopping, such as streaming and gaming.
However, collecting data is one part of the equation. Brands can be data-rich but often information poor without having the proper infrastructure and systems to connect offline and online customer touchpoints.
For product key stakeholders, understanding the whole customer journey (offline and online touchpoints) is necessary for product growth or scaling a portfolio. For example, Apple’s utilities the iPhone’s (anchor product) stickiness to drive adoption amongst their other products, such as product portfolios, such as AppleTV or Apple Pods.
Big Data will become a fundamental basis of competition, underpinning new waves of productivity, innovation, and consumer surplus. However, brands that can pull actionable insights will be successful in acquiring new customers and mitigating churn. The next wave of eCommerce players will focus on personalization to increase brand equity and customer value exchange. As the customer value exchange improves, customers will share more, establishing stronger customer loyalty.
Customer Loyalty is the most effective way to maximize customer value and move beyond mere customer satisfaction. Customer Loyalty allows brands to connect with consumers emotionally. To scale loyalty programs globally, brands need to think locally.
At Facebook Reality Labs, I led the Go-To-Market digital launch in Japan in Q4 2020 for a new product (Quest 2). The strategic plan was based on local insights. Localization was incorporated into the positioning, pricing, and channel mix to drive product adoption and raise virtual reality awareness for gaming and entertainment in a new and competitive market (home to Nintendo & Playstation).
