Beyond the transaction: Redefining customer experience for new gen consumers

In today's digital-first era, consumer expectations have transcended the basics of good products and customer service. The amalgamation of social media and e-commerce has empowered consumers with unparalleled access to information, products, and services.

A paradigm shift has occurred, with modern consumers seeking experiences that seamlessly weave through various touchpoints, establishing profound connections with the brands they choose. In recent times, modern marketers have access to much better tools and approaches to extend a seamless brand experience that extends across all touchpoints.

In fact, they can begin to enhance customer experiences even before a purchase takes place – and often long after it. 

And it begins by thinking beyond the transaction. 

The digital renaissance of customer experience

We are standing at the forefront of a dynamic era where the fusion of technological innovation, social media, and e-commerce is reshaping consumer expectations, particularly among the tech-savvy Gen Z demographic. For this generation, digital interactions are not just transactions; they are experiences that demand personalisation, authenticity, and seamless integration across various platforms.

Artificial Intelligence (AI) emerges as a pivotal player in this narrative, as businesses harness its capabilities to analyse vast datasets and predict consumer preferences. AI-powered chatbots and virtual assistants are becoming integral to providing instant and personalised customer support, enhancing the overall experience. Gen Z, known for its digital fluency, gravitates toward brands that leverage AI to curate tailored recommendations, streamline transactions, and anticipate their evolving needs.

As the digital renaissance unfolds, businesses that adeptly integrate AI into their customer experience strategies will likely forge stronger connections with the discerning Gen Z cohort, securing a competitive edge in the evolving marketplace.

Social listening: A modern marketer's arsenal

Addressing these evolving expectations requires innovative tools such as Social Listening. This process involves the real-time monitoring and analysis of online conversations, providing marketers with invaluable insights into consumer sentiments and opinions. This rich data can then be used to generate deep, contextual insights that can help brands identify key market patterns and trends to drive marketing campaigns, improve consumer experience, and undertake focused development of products and services that meet the customers’ stated and unstated requirements.

For instance, at Marico, we have employed a social listening tool to gauge trends in today’s digital age. An end-to-end in-house digital team has been created to manage brands across multiple markets and product verticals, the initiative has become a comprehensive source of social media data about consumer needs and sentiments. Not only has it allowed the company to improve the social media performance and customer satisfaction levels of its key brands but also led to the creation of newer premium brands. 

Data analytics: A strategic pillar for differentiated experiences

Data analytics plays a pivotal role in creating differentiated value for customers. In the digital realm, where every click and interaction serves as a data point, brands can offer personalised product recommendations based on anonymised customer information. 

If we delve into the realm of product recommendations as an example, customer data, encompassing factors like age, gender, location, and purchase history, undergoes a meticulous process of anonymisation, analysis, and categorization into distinctive 'buckets' aligned with prevalent buying patterns.

Drawing insights from other customers in the same bucket, individuals are presented with suggestions and recommendations. This not only opens up distinctive opportunities for brands to upsell and cross-sell but also addresses latent consumer needs, fostering profound connections with the brand. For example, by discerning the distinct preferences and expectations of Gen Z consumers through data analytics, brands can tailor their approaches to not only meet but exceed the evolving demands of this influential consumer segment.

However, the prowess of data analytics transcends mere product recommendations. Our front-end analytics team adeptly mines data from a diverse array of channels, including YouTube, Google, Instagram, TV, Facebook, Amazon, Bigbasket, and Flipkart. This comprehensive analysis spans platform discounts, competition pricing, Return on Investment (RoI), social sentiment, and reviews, culminating in the creation of a unified source of digital brand truth.

These insights are then made accessible to key stakeholders across brand, DTC, and e-commerce functions, offering a nuanced understanding of how effective their spends are, which channels and strategies drive the best results, and which ones need to be optimised. This approach empowers stakeholders to visualize the potential impact of new initiatives on key metrics through predictive modeLling.

This holistic strategy enables the company to refine decision-making and expenditure allocation, resulting in elevated outcomes across campaigns, sales, discounts, pricing, and, critically, consumer engagement and satisfaction.

The emerging generation of consumers is at the forefront of reshaping the customer experience landscape within the FMCG industry. In response to their evolving needs and expectations, brands must craft personalised and captivating experiences that deeply connect with their customer base.

Furthermore, heightened consumer awareness of the social impact wielded by brands is steering individuals toward those championing sustainability and environmental responsibility. Therefore, brands of tomorrow must not only establish a purpose-led foundation but also leverage cutting-edge technologies, such as AI, to enhance customer interactions, and predict preferences.

By incorporating AI into their strategies, brands can not only meet the evolving expectations of the new generation but also instill trust and loyalty by showcasing a commitment to both innovation and social responsibility.

(Our guest author is Somasree Bose Awasthi, Chief Marketing Officer at Marico Limited)