We asked business leaders, industry stakeholders and customers through extensive research across Asia how people and brands will interact in 2023. We took the pulse of the moment and the zeitgeist that emerged pointed to six vectors of change. I will share these vectors, two-at-a-time, over the course of the next 3 weeks, starting with today’s Zero Friction and Zero Mass vectors.
Zero Friction as illustrated by Alibaba Hema
In the world of the future consumer, companies must zerofy friction to create naturally fulfilling moments. This means predicting costumer needs from moment to moment and building services that anticipate natural customer behaviors.
Some brands are already taking the lead and providing glimpses of the times ahead. In 2015, Alibaba launched a grocery store brand called Hema, which aims to merge the digital experience of online shopping via a mobile app, and a highly customized in-store experience for shoppers. For example, shoppers can order ahead of time and simply pick up their assembled bags of goods, reducing friction of walking the store and picking out items. Hema also prepares meals for shoppers right on site with the items that shoppers purchase, again, alleviating customers from cooking at home.
It’s efforts like these – identifying pockets of friction for customers and eliminating them – that give companies of the future an edge with consumers, where friction is penalized while effortless interactions will become commonplace.
We know that loyalty and experience design pays. Loyal customers are 7x more likely to try new offerings and the revenue growth of CX leaders is 5.1x that of laggards. The laggards are stuck with directed, one-dimensional experiences and are reactive. The leaders offer autonomous, predictive interactions that are intuitive and have disappearing interfaces. It’s like the difference between waking up to a jarring alarm clock vs sunlight, one customer told us.
Zero Mass as illustrated by Vitana
Future consumers expect companies to create extreme personalization in real-time.
In creating “micromoments of value” for customers, brands can be naturally present in the rhythm of a customer’s life. We call this the “momentization” of a brand’s value proposition.
For example, at LumenLab we built Vitana, an insurance product for pregnant women to protect against gestational diabetes (GD) that does not require patients to file any claims. Payouts magically appear in a customer’s bank account, should she test positive for GD. As a result, customers who are already afflicted with GD to worry about, are free from concern about insurance – they simply know they’re covered.
By not just predicting, but inventing the future, our team at LumenLab points the way to a world in which customers will almost expect the unexpected: brands showing up to deliver surprising efforts to make customer lives easier.
But personalization is not commonplace yet. Only 23% of companies have a single view of the customer and shoppers are not satisfied with mass offers and up to a 15% revenue lift is possible from personalization. It’s the difference between rough sketches of customers (static demographic segmentation models and mass market offers) moving to dynamic personas and bespoke offers. This unscaling, according to Hemant Taneja, is leveraging intelligence to tailor personalized medicine and elongated healthspan, to create content that you love that will find you, and to offer lifelong learning that keeps you passionate at work.
Stay tuned for the remaining 4 vectors.