data point—the weather—to tailor its recommendations, touting ice cream during heat waves and coffee during cold spells to overcome these obstacles so e-commerce leaders can help their organizations achieve excellent CX The Secret Behind Great CX: Understanding Customers What customers online provides huge clues as to how a company’s CX is working and where it can be improved For example, if a customer regularly buys a product, e-commerce leaders can experiment with offering discounts or even creating a mechanism so the customer gets the product automatically without having to log in Tools like artificial intelligence (AI) can also recommend complementary products or help online buyers see what they’ve previously purchased B2C organizations aren’t the only ones focusing on improving CX through e-commerce Increasingly, B2B companies are using customer behavioral data to help wholesalers and distributors quickly order (and reorder) the products they need In fact, many B2B businesses are now providing partners and distributors with the option of buying from them online and getting rid of email, phone, or even fax ordering Many B2B companies are also providing quick-order templates on their home page, where buyers can simply enter a product name, number, and quantity and then check out “It’s about capturing data to improve CX, and the benefit should be clear and apparent to the customer,” says Rob Birse, head of global B2B and B2B2C e-commerce for Battle Creek, Michigan-based Kellogg’s Kellogg’s, for instance, is using digital commerce fueled by AI to help wholesalers and distributors pick the right products for their retailers The company’s ultimate goal is to have its wholesalers and distributors and their customers, namely retailers, provide sales information directly to Kellogg’s so it can analyze the data with an eye to optimizing CX and thus revenue “The customer is the golden goose,” says Birse, explaining that by sharing purchasing data throughout the organization The Challenge of Sharing Information Sharing insights is critical to improving CX, but exchanging information across an organization can be difficult This challenge is especially true for companies built through multiple mergers, where each acquisition brings with it its own legacy technology system It is also difficult for Briefing Paper | Advancing the Customer Experience through E-commerce Leadership Downloaded by Tâm Lý H?c (aq13211213@gmail.com) lOMoARcPSD|11433221 Harvard Business Review Analytic Services Many companies have successfully broken down data silos using customer relationship management (CRM) systems, internal communication tools, application programming interfaces, or cloud computing organizations in specific industries like insurance, where technology systems were designed for a specific purpose such as underwriting Brands relying on nondigital processes and companies operating with a lot of regulatory oversight may also face obstacles The exchange of information between companies can be tricky as well, particularly if they haven’t shared data previously Kellogg’s is considering creating an online marketplace for consumer product companies, retailers, wholesalers, and distributors to improve B2B CX and bolster sales For Birse, this initiative depends on gaining trust from all parties “There is a deeply established fear factor to overcome when trying to encourage the sharing of ideas, visions, and information,” he says, adding that the challenge to be surmounted is convincing all parties that sharing sales information is a winning proposition for everyone when it comes to CX Another challenge is that many companies designed their e-commerce systems for the web only But digital commerce is rapidly expanding beyond the web to mobile apps, social media sites, voice-activated assistants, digital kiosks, and connected devices, which can include home monitors or even cars Consequently, many companies are hamstrung and potentially risk their ability to provide exceptional CX because they haven’t broadened their digital selling channels enough Of course, diversifying digital selling channels further complicates a data issue—customer privacy New and everevolving laws are requiring companies to rethink their e-commerce strategies because of the penalties for not securing the data or for using that data in a way that invades customers’ privacy For example, many companies are moving away from the once-widespread cookies that track customers’ movement online Companies will need to make it worthwhile for buyers to share data voluntarily—and to more with the data they are legally able to collect and analyze communication tools, application programming interfaces, or cloud computing “Traditional companies sometimes struggle to work crossfunctionally They tend to have teams devoted to a specific purpose, like IT,” says Phimmasone To provide a stellar CX via e-commerce, companies should have teams that include people from multiple departments, from e-commerce to marketing to IT to design to operations, she says These teams should be empowered to make decisions and iterate on ideas quickly, which may mean deviating from a business’s organizational chart, Phimmasone notes Refining new ideas quickly may become increasingly important as e-commerce moves beyond websites and into other digital channels Companies are likely to develop multiple ways to reach customers and personalize each CX But determining the best channel or method to reach customers could take some trial and error Some customers may react best to a nudge on social media, while other customers may prefer email, text, or a reminder via a digital personal assistant, like Alexa Technologies such as artificial intelligence pick up on communication patterns to determine the digital channel most likely to garner the biggest customer response For companies trying to move their e-commerce initiatives beyond their websites, CB Insights’ Sineau suggests they go for headless architecture, which is aptly named because the front end (the interface customers see) is separated from back-end databases that contain information from sources including CRM systems, payment-processing systems, and inventory platforms The structure allows companies to experiment and iterate with new e-commerce channels without rethinking core functions And to ensure an organization meets regulatory and privacy laws, Phimmasone says, that a best practice is to have local legal teams in various jurisdictions tracking the evolution of consumer data privacy regulations, whether it involves California’s Consumer Privacy Act or Europe’s General Data Protection Regulation Meanwhile, companies need to be transparent about their data policies and practices Companies should tell their customers in simple terms what data they are using and why they are using it More importantly, companies should highlight the benefits the customer might receive by sharing How to Move Forward with Exceptional CX There are digital solutions that can help companies share data across their organizations, even if that data is locked into different systems or departments Many companies have successfully broken down data silos using customer relationship management (CRM) systems, internal Briefing Paper | Advancing the Customer Experience through E-commerce Leadership Downloaded by Tâm Lý H?c (aq13211213@gmail.com) lOMoARcPSD|11433221 Harvard Business Review Analytic Services Technologies such as artificial intelligence pick up on communication patterns to determine the digital channel most likely to garner the biggest customer response But for this and other digital initiatives to be successful, companies likely need the ability to see buyers’ interactions all in one place, whether they are purchasing in person or digitally Organizations then have to act on that information by creating more personalized experiences so customers have a better overall CX and keep returning to the company’s website, buying apps, or brick-and-mortar operation “It’s not about getting someone to buy something once,” says Birse “It’s about having them come back five, six, or seven times until it’s habitual.” their data “If you capture customer data, you better act on the data you are asking for and give them the experience the data dictates,” Birse says “You don’t want to capture data just because you can.” CX Front and Center Many companies whose business model was challenged by the pandemic are now turning to e-commerce as a way to rethink their business Kellogg’s is working with independent retailers struggling during the pandemic to improve their CX and revenue by helping them make the most of shelf space and pick the right products Birse believes that better data, artificial intelligence and machine learning will help home in on key buying trends and identify patterns that could help shape consumer behavior and ultimately even encourage a trip to the local 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H?c (aq13211213@gmail.com) ... develop multiple ways to reach customers and personalize each CX But determining the best channel or method to reach customers could take some trial and error Some customers may react best to a... successfully broken down data silos using customer relationship management (CRM) systems, internal Briefing Paper | Advancing the Customer Experience through E-commerce Leadership Downloaded by Tâm Lý... Companies should tell their customers in simple terms what data they are using and why they are using it More importantly, companies should highlight the benefits the customer might receive by