TOTAL COMMERCE: Beyond the Transaction

Four Pillars for Innovative Customer Experiences

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?

This document explains “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 vs. Total Commerce Journey

1. A brand supplies a retailer with soap.
2. An anonymous customer goes to a store to purchase soap.
3. The customer chooses the soap from the shelf.
4. The customer goes to the register and checks out.
5. The retailer contacts the supplier to schedule another soap shipment.

1. A consumer clicks on an Instagram Live video with their favorite influencer talking about a soap brand.
2. The consumer uses the influencer referral link to visit a D2C brand website.
3. They fill out a quiz to determine their skin type to see a recommended soap.
4. They read user-generated content (UGC) about that soap.
5. They learn about the ingredients in the recommended soap and how those ingredients can improve their skin type.
6. 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

The Four Pillars of Total Commerce Strategy

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.

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

1. Define a Winning Consumer Proposition.
   • Rethink your consumer proposition within e-commerce and use the purchase experience to communicate it. Apple does this well through its sleek website design—each product description is a visual and aesthetic display that captures the ease of use and the aspirational proposition that is key to the brand. Use videos, user-generated content, quizzes, and more to elevate the customer experience at every interaction.
2. Turn Data and Analytics into a Strategic Advantage.
   • In a traditional retail experience, sales associates or packaging details guide consumers. Online, the options are endless. Brands can use customer purchase and behavioral data to guide customers to the best option for them through DTC channels. Gathering behavioral data should be part of a larger strategy, not just short-term or siloed wins. CP firms need a sophisticated and integrated data-sharing platform for both consumers and retailers.
3. 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 to e-commerce will drive the best ROI. Harness retail media, partner with retailers for promotions, activate social media influencers, and utilize interactive online website content to drive engagement.
4. Act Like a Startup.
   • Apply new approaches to e-commerce in a “test-and-learn” strategy across different products, marketing campaigns, and brands. Startups operate on a shorter runway, allowing for short-term plans or pivots. This mindset helps keep up with changing consumer demand and allows CP firms to play into trends, creating memorable interactions with consumers. Provide teams with opportunities to test new ideas with rapid prototyping and utilize your community of customers for exploration.

What Do Consumers Want from E-commerce Experiences?

• Personalized Product Guidance:
  • With the overwhelming number of products and channels online, consumers want brands to point them to the best possible option quickly. Many brands have implemented chatbots, customized emails, text messaging, or 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 possible recommendations to consumers. Netflix, for example, makes every entertainment option dynamic and based on algorithms. E-commerce for consumer products can be just as dynamic.
• User-Generated Content (UGC):
  • UGC like reviews, photos, and videos is a major driver of SEO and higher click rates. L’Oreal’s Essie nail polish brand website allows users to upload photos wearing the nail polish, making the user 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 specific customer interactions. Today, the B2B digital ordering platform has 2.7 million monthly active users. Buyers can place orders directly and see promotional information, and AB InBev can see 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

2. Providing Customer Value Through Data Exchange

The challenge:
While some CP brands are struggling to access first-party data, those who have built pathways for data capture have suddenly found themselves with information overload. As D2C channels, retailer partnerships, and social media have opened up new opportunities, how can brands really harness this data in unique ways to benefit the customer and increase revenue?

How Can You Make Sure Your Customer Data is Having an Impact?

1. Define where you are right now in terms of infrastructure and capability—and where you need to be.
2. Decide what business decisions you can make using data and what types of data would inform those decisions.
3. Think about what opportunities along the customer journey you have where you can create positive experiences for customers and see how data can help fuel that.
4. 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 platform, “OFF!Cast Mosquito Forecast,” is hosted on OFF!’s brand website. It allows SC Johnson to analyze mosquito population data and provides a purpose-driven digital touchpoint for consumers to connect with the brand and get valuable information. The project utilized tools like BigQuery, Google Cloud Storage, and Climate Engine to drive the algorithm.

Case Study: Unilever’s In-Store, AI Customer Engagement

Unilever partnered with Giant Foods and retail marketing platform Perch to track customer engagement with physical products in stores. The company is piloting endcaps with Dove products using lift-and-learn technology to track engagement times and conversion rates. While this pilot is limited to several stores in the Washington, D.C. area, Unilever plans to use this test run as research before implementing the endcaps widely. The technology will give Unilever better access to customer data and allow customers to get an automatic and informative in-store experience without having to scan a QR code or take another step.

“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

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 that consumers can buy online will be available for delivery within the hour.
• Anticipatory commerce: Most purchases will be “clickless.” It will become economically viable for retailers like Amazon to deliver products before users buy them—and then offer a free return option through an advanced recommendation algorithm.
• Connected commerce: Most transactions will happen through smart devices instead of personal devices such as mirrors, refrigerators, and more.

Which Next-Generation Commerce Channels Are Worth Investing In?

While many CP firms are focused on what’s profitable right now, investing in research and development surrounding future trends will bolster an enduring business strategy. Ignoring next-generation channels and commerce trends is like ignoring your retirement account—the longer you wait, the more difficult it is to catch up.

On the other hand, some CP brands are eager to jump on the buzzword bandwagon and innovate because other firms are doing the same. It’s important to connect investments in channels to a unique long-term strategy that’s supported by technology and purposeful to your brand.

Regardless of which channel your firm invests in, you can start by building out your workforce and expertise to prepare for the future. Bringing in talent on Web3—with particular expertise in the metaverse, for example—will ensure that your brand is fully 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

Case Study: Nestlé Purina’s CHEKR Bowl

Nestlé Purina has developed smart pet bowls, leveraging technology to create new touchpoints and value in the customer journey.

“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

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 one step ahead with innovation, research, and development. Brands with resources can take the time now to research and experiment and try a proof case with a new technology or channel.
• Economies of Scale:
  • Larger firms can build out their own new platforms and teams to run D2C channels and harness first-party data. Creating new owned platforms with the help of a third party gives CP firms a huge advantage to scale for the future.
• Connecting Across Brands:
  • Larger CP companies with many brands in their portfolio can connect brands in new and interesting ways. They can partner across brands under one company for new products, flavors, events, and marketing campaigns. With sophisticated data platforms, brands can even 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:
  • Turn D2C channels into the most efficient option for customers 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. For many CP firms, D2C can also be considered more of a learning platform than a revenue builder, allowing for experimental online activities, videos, and events.
• Authentic Education:
  • Consumers are looking to brands to offer authentic expertise and education on topics relevant to their products. Brands have an opportunity to add value to consumers’ lives through education on healthy eating, pet exercise, skin care, recipes, and more.
• Community Building:
  • In a digital world, consumers can easily gather and form fan communities around celebrities, artists, and even products or brands. By interacting with consumers on social media, building digital spaces for user-generated content, or rallying around an authentic social cause, brands can make D2C channels relevant for consumers.

Case Study: Mondelez’s “OREOiD” Flavor Personalization

Mondelez refreshed its OREO brand’s dot-com website, adding a service called “OREOiD” that allows consumers to customize a pack of OREO cookies. Users can choose colors, photos, and text to order personalized cookies on the website directly. The brand saw a record number of sales after the debut of the exciting new 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. They created a new website and app for its Tide brand where users can locate nearby dropoff/pickup locker locations. The service provides washing, drying, folding, and even dry cleaning and alterations. Tide Cleaners operates on a franchise basis and allows the option of a monthly subscription service for users at a discounted price. Tide Cleaners is a natural D2C service fit for the Tide brand, providing increased convenience compared to any other channel.

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 can develop a holistic, Total Commerce strategy that gives your brand direction, an investment case, and a roadmap to take you from idea to fully live, including fulfillment.
• Develop the Underlying Technology Backbone: Publicis Sapient 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 the larger Publicis Groupe, Publicis Sapient 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, Publicis Sapient is laser-focused on surprising and delighting the end consumer with digital solutions at scale.

Contacts

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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