TOTAL COMMERCE: Beyond the Transaction
Four Pillars for Innovative Customer Experiences
The Four Pillars of Total Commerce Strategy
- Making E-commerce Experiences Memorable
- Providing Customer Value Through Data Exchange
- Investing in Next-generation Commerce Channels
- Differentiating One-of-a-Kind D2C Channels
As consumer products (CP) companies adapt to a digital world with ambitious e-commerce goals, shifting to a consumer experience–focused strategy makes more sense now than ever.
However, there are several challenges to building relationships with consumers beyond the transaction:
DATA
Access to first-party data is still a challenge. When brands do enable data capture through D2C, they’re flooded with information from different sources.
UNFAMILIAR CHANNELS
Next-generation commerce options like the metaverse and social commerce dominate the conversation but remain unknown.
RETAILER COMPETITION
D2C e-commerce channels struggle to compete with retailers and remain relevant.
How can CP brands embrace new channels and create content in a way that’s profitable, scalable, and innovative?
Here, we’ll explain “Total Commerce,” the CP strategy focused on customer experience and driven by content and data. Total Commerce will help your brand cut through digital fads and trends to find a scalable plan with staying power.
What’s the Difference Between Traditional and Total Commerce?
Total Commerce shifts the idea of traditional commerce from a buyer-to-supplier transaction to a continuous customer relationship that involves D2C experiences, new channels, and added customer value.
Brands that sell directly to consumers through e-commerce channels—and brands that purely sell through retailers—can fully engage in the Total Commerce model by creating D2C experiences.
Example: Traditional Commerce Journey
- A brand supplies a retailer with soap.
- An anonymous customer goes to a store to purchase soap.
- The customer chooses the soap from the shelf.
- The customer goes to the register and checks out.
- The retailer contacts the supplier to schedule another soap shipment.
Example: Total Commerce Journey
- A consumer clicks on an Instagram Live video with their favorite influencer talking about a soap brand.
- The consumer uses the influencer referral link to visit a D2C brand website.
- They fill out a quiz to determine their skin type to see a recommended soap.
- They read user-generated content (UGC) about that soap.
- They learn about the ingredients in the recommended soap and how those ingredients can improve their skin type.
- They can see which retailers nearby carry the product and can choose to have it shipped directly to them.
A value exchange has occurred, even if this customer chooses not to purchase the soap. The customer has been guided to the best soap option for them and learned something about their own skin health. The company has received this customer’s email, age, and preferences.
The Total Commerce model is a much richer interaction that provides indirect revenue and non-monetary value, whether a product is purchased or not.
- 64% of consumers want brands to connect with them.
- 57% of consumers will increase their spending with a brand when they feel connected to it.
- 76% of consumers will buy from a brand they feel connected to over a competitor.
- 84% of consumers have purchased groceries in-store after discovering them on social media.
“It’s not commerce driving the customer experience. It’s customer experience driving the final transaction. Commerce is increasingly driven by content and experience.”
— Scott Clarke, Industry Lead for Consumer Products, EMEA & APAC, Publicis Sapient
PILLAR 1: Making E-commerce Experiences Memorable
The Challenge:
E-commerce is quickly becoming the most popular way to shop, but most online platforms only offer a transaction to the customer rather than the opportunity for an experience.
In-store, retailers have a wealth of options to utilize the store environment—from design, app integration, and point-of-sale (POS) tools to their sales associates—to create personalized, positive experiences. Each of these plays a part in providing recommendations, compliments, offers, and product comparisons.
If brands want to lead their e-commerce with experiences, rather than transactions, what’s the best way to get started?
Four Ways Online Brands Can Create Memorable Experiences
- Define a Winning Consumer Proposition.
- Rethink your consumer proposition within e-commerce and how you can use the purchase experience to communicate it. Apple, for example, uses sleek website design and visual product descriptions to capture the brand’s aspirational proposition.
- Use videos, user-generated content, quizzes, and more to elevate the customer experience at every interaction. Let your consumer proposition guide the e-commerce experience.
- Turn Data and Analytics into a Strategic Advantage.
- In traditional retail, sales associates or packaging details guide consumers. Online, options are endless. Brands can use customer purchase and behavioral data to guide customers to the best option through DTC channels.
- Gathering behavioral data should be part of a larger, integrated strategy. CP firms need a sophisticated data-sharing platform for both consumers and retailers.
- Create an Omnichannel Strategy.
- Building tools to manage first-party data is crucial to an omnichannel marketing strategy. In a post-pandemic world, there is no difference between in-store and digital purchases, so omnichannel approaches will drive the best ROI.
- Harness retail media, partner with retailers for promotions, activate social media influencers, and utilize interactive online content to drive engagement.
- Act Like a Startup.
- Apply new approaches in a “test-and-learn” strategy across products, campaigns, and brands. Startups plan for the short term, allowing for pivots and rapid prototyping. This mindset helps keep up with changing consumer demand and creates memorable interactions.
- Provide teams with opportunities to test new ideas and utilize your customer community for exploration.
What Do Consumers Want from E-commerce Experiences?
- Personalized Product Guidance:
With so many products and channels online, consumers want brands to point them to the best option quickly. Brands use chatbots, customized emails, text messaging, and direct website interactions on D2C channels, but this is just the beginning.
- Dynamic Content Optimization:
Dynamic content optimization uses machine learning and AI to give the best recommendations. Netflix, for example, personalizes every entertainment option dynamically. E-commerce for consumer products can be just as dynamic.
- User-Generated Content (UGC):
UGC, like reviews with photos and videos, drives SEO and higher ad click rates. L’Oreal’s Essie nail polish brand allows users to upload photos wearing the polish, making the experience memorable and informative.
Case Study: AB InBev’s Retailer Platform
AB InBev improved retailer issues and communication in 2019 with BEES, a streamlined e-commerce platform for small and medium-sized retailers. BEES is built on a CDP that allows the company to utilize buyer behavioral data and personalize interactions. Today, BEES has 2.7 million monthly active users. Buyers can place orders directly, see promotions, and AB InBev can view all buyer order information in one place.
“As data starts to proliferate and become more sophisticated through AI and machine learning, the ability to create a very unique set of personalized interactions for consumers in the moment will be a big part of the next generation of e-commerce.”
— Scott Clarke, Industry Lead for Consumer Products, EMEA & APAC, Publicis Sapient
PILLAR 2: Providing Customer Value Through Data Exchange
The Challenge:
While some CP brands struggle to access first-party data, those who have built pathways for data capture often face information overload. As D2C channels, retailer partnerships, and social media open new opportunities, how can brands harness this data to benefit the customer and increase revenue?
How Can You Make Sure Your Customer Data is Having an Impact?
- Define your current infrastructure and capability—and where you need to be.
- Decide what business decisions you can make using data and what types of data would inform those decisions.
- Identify opportunities along the customer journey to create positive experiences and see how data can help fuel that.
- Implement strategic data partnerships and co-ops with other brands and retailers.
How Can High-Quality First-Party Data Transform the Customer Experience?
- Hyper-personalization: Tailored marketing and purchasing experiences.
- Better Products, Services, and Solutions: New ways to purchase products and new products themselves.
- Next-best Actions: The ability to determine, in the moment, what a consumer wants and what to sell them next.
Case Study: SC Johnson’s Cloud-Based Predictive Forecasting
SC Johnson, home to the OFF! and Raid brands, teamed up with Google to create a predictive analytics platform for mosquito populations that helps consumers. The "OFF!Cast Mosquito Forecast" is hosted on OFF!’s website, providing a purpose-driven digital touchpoint for consumers to connect with the brand and access valuable information. The project used tools like BigQuery, Google Cloud Storage, and Climate Engine.
Case Study: Unilever’s In-Store, AI Customer Engagement
Unilever partnered with Giant Foods and Perch to track customer engagement with physical products in stores. They piloted endcaps with Dove products using lift-and-learn technology to track engagement times and conversion rates. This technology gives Unilever better access to customer data and allows customers to get an automatic, informative in-store experience without extra steps.
“Make a solid plan for how you are going to use data. There are companies doing a fantastic job in gathering data. But then they don’t do much with it, and that’s key.”
— Liz Papasakelariou, Industry Lead for Consumer Products, North America, Publicis Sapient
PILLAR 3: Investing in Next-generation Commerce Channels
The Challenge:
Social commerce, livestream shopping, metaverse product launches, and other next-generation commerce opportunities are on the table. But how can CP firms determine what’s worth the investment and connect it to a broader commerce strategy?
What Trends Could Define the Next Generation of Commerce?
- Quick Commerce: Most products will be available for delivery within the hour.
- Anticipatory Commerce: Most purchases will be “clickless.” Retailers like Amazon may deliver products before users buy them, offering free returns through advanced recommendation algorithms.
- Connected Commerce: Most transactions will happen through smart devices such as mirrors, refrigerators, and more.
Which Next-generation Commerce Channels are Worth Investing In?
While many CP firms focus on what’s profitable now, investing in R&D for future trends will bolster an enduring business strategy. Ignoring next-generation channels is like ignoring your retirement account—the longer you wait, the harder it is to catch up.
Some CP brands may jump on trends because others are doing so, but it’s important to connect investments to a unique long-term strategy supported by technology and aligned with your brand purpose.
Regardless of the channel, start by building out your workforce and expertise to prepare for the future. Bringing in talent with Web3 and metaverse expertise ensures your brand is ready for future endeavors.
“Next-generation channels, like the metaverse, need to be part of your brand purpose and your brand ethos. You can’t do a flash in the pan and then get away with it because consumers will smell that right away. They’ll know that you’re just doing it for a fad.”
— Liz Papasakelariou, Industry Lead for Consumer Products, North America, Publicis Sapient
“Brands should ask themselves, ‘What opportunities do I have to make a positive impact in the customer journey, and how can technology help fuel that?’ Then work back from there.”
— Scott Clarke, Industry Lead for Consumer Products, EMEA & APAC, Publicis Sapient
Case Study: Nestlé Purina’s CHEKR Bowl
Nestlé Purina developed smart pet bowls, leveraging technology to create new customer touchpoints and experiences.
PILLAR 4: Differentiating One-of-a-Kind D2C Channels
The Challenge:
CP firms are investing in D2C and launching brand dot-com websites, but they’re not seeing the profitability they expected. In an increasingly competitive e-commerce environment, how can brands create D2C channels that stand out? The first step is focusing on your advantages.
What Advantages Do CP Brands Have Compared to Digital Natives?
- Research and Development Investments:
Legacy CP firms have the capital to be ahead with innovation, research, and development. Brands with resources can experiment and try proof cases with new technology or channels.
- Economies of Scale:
Larger firms can build their own platforms and teams to run D2C channels and harness first-party data, giving them a huge advantage to scale for the future.
- Connecting Across Brands:
Larger CP companies can connect brands in new ways, partner across brands for new products, flavors, events, and campaigns, and share data to develop more sophisticated customer profiles and personalized experiences.
“With D2C, you need a reason to be able to go keep going back to that site. D2C channels are expected to be a lot more meaningful than a brand dot-com.”
— Liz Papasakelariou, Industry Lead for Consumer Products, North America, Publicis Sapient
How Can CP Firms Build Relevant D2C Channels?
- Increased Convenience:
Make D2C channels the most efficient option by highlighting customer service with chatbots, offering price promotions, or making the purchase experience more convenient through subscriptions and personalization.
- Exciting, Immersive Experiences:
D2C channels can stand out through unique digital experiences, serving as learning platforms for experimental activities, videos, and events.
- Authentic Education:
Brands can offer authentic expertise and education on topics relevant to their products, adding value to consumers’ lives.
- Community Building:
Brands can foster fan communities through social media, digital spaces for UGC, or rallying around authentic social causes, making D2C channels relevant for consumers.
Case Study: Mondelez’s “OREOiD” Flavor Personalization
Mondelez refreshed its OREO brand’s website, adding “OREOiD,” a service allowing consumers to customize a pack of OREO cookies with colors, photos, and text. The brand saw record sales after launching this experience.
Case Study: P&G’s Wash and Fold Laundry Service
P&G launched “Tide Cleaners,” a wash and fold (and limited delivery) laundry service in the U.S. Users can locate nearby dropoff/pickup locker locations via a new website and app. The service offers washing, drying, folding, dry cleaning, and alterations, with a monthly subscription option at a discounted price. Tide Cleaners is a natural D2C fit for the brand, providing increased convenience compared to other channels.
How Publicis Sapient Can Transform Your Customer Experience Beyond the Transaction
- Determine Where Your Brand Can Play:
With the complex and evolving channel landscape, Publicis Sapient (PS) can develop a holistic Total Commerce strategy, providing direction, an investment case, and a roadmap from idea to full implementation, including fulfillment.
- Develop the Underlying Technology Backbone:
PS can evaluate your unique data capabilities and operational structure to determine the necessary end-to-end work needed to bring your new customer journeys to life—from data architecture, to service design, to operating models, and more.
- Implement Your Total Commerce Strategy:
As part of Publicis Groupe, PS can deliver solutions across demand generation, search, content production, commerce analytics, and supply chain in an integrated way.
- Create Powerful and Memorable Human Experiences:
From story-led websites for legacy luxury brands to interactive flavor labs for alcoholic beverages, PS is focused on surprising and delighting the end consumer with digital solutions at scale.
Contact:
- Elizabeth Papasakelariou
Consumer Products Lead, North America
elizabeth.papasakelariou@publicissapient.com
- Scott Clarke
Consumer Products Lead, EMEA & APAC
scott.clarke@publicissapient.com
About Publicis Sapient
Publicis Sapient is a digital transformation partner helping established organizations get to their future, digitally enabled state, both in the way they work and the way they serve their customers. We help unlock value through a startup mindset and modern methods, fusing strategy, consulting, and customer experience with agile engineering and problem-solving creativity. As digital pioneers with 15,000 people and 53 offices around the globe, our experience spanning technology, data sciences, consulting, and customer obsession—combined with our culture of curiosity and relentlessness—enables us to accelerate our clients’ businesses through designing the products and services their customers truly value. Publicis Sapient is the digital business transformation hub of Publicis Groupe. For more information, visit publicissapient.com
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