Unfolding before us is the concept of access to all products, across all channels, anytime. A key to customer experience success is finding the balance between product ubiquity and consumer value, so how do we arrive at that balance, particularly in the Loyalty space?
To some vendors in the loyalty space, the prospect of complete ubiquity may be the Holy Grail. Soon enough, you may find yourself ordering food storage containers from your IOT connected refrigerator, and earning bonus miles for it.
But to others, the idea of "everything, everywhere, all the time" may be as realistic as a desert mirage. Some products just aren’t even well-suited for the omnichannel distribution model, let alone total ubiquity, yet they contribute value to the customer experience and should maintain a place in the loyalty future.
If a key to CX success is finding the balance between product ubiquity and consumer value, how do we arrive at that balance?
The challenge starts at the level of product definition, and extends to consumer expectations of that product. For certain products important to the customer experience, the proposition of ubiquitous availability means considerable investments in technology, operational processes and ongoing maintenance that may not yield sufficient return.
Let's consider Travel products — flights, cars, hotels, cruises, tours, activities, and custom vacations. Why? Travel is a particularly interesting case study in that it faces considerable challenges in the omnichannel distribution model (and has for years!), yet offers so many opportunities to enhance the customer experience.
While many consider the Travel space a leader in terms of making complex transactions possible in an online environment, not every product is well-positioned to become ubiquitously consumed in this omnichannel future. The human touch of an experienced travel professional is still in demand and preferred by consumers for many transactions. To quote a wise colleague, "Travel is both cutting edge and ancient at the same time."
For example, while flight booking has evolved to a relatively ubiquitous self-service product, products like cruises and tours are evolving differently and may never be similarly adopted by consumers.
The functionality to book a flight online has matured to the point where consumers have well-established expectations of researching, booking, and maintaining their air bookings. Though it is one of the more complex products to book online (especially on mobile devices), it is by far the most transacted across all device types in the Travel loyalty space. This is due in part to the many investments made by suppliers and distributors in evolving the booking engines for the product, and this has shaped consumer expectations. Significant expansion in capabilities for online, mobile, and voice interaction are serving to further propel flights into "ubiquitous" status.
In contrast, Travel products like cruises or tours are evolving as vehicles more for consumer research than for self-service booking. While improvements in systems for consumer reviews are helping inspire buyer confidence, consumer adoption of online booking functionality remains a hill to climb. These products are complex enough that consumers prefer to rely on the expertise of a travel professional when booking. It's important products like these that sit on the outskirts of the omnichannel model.
When considering product ubiquity, some of the factors that distinguish some products from others include:
The suggestion here is not that a product must pass all three of the above tests to be suitable for ubiquity, but that a more strategic approach to multi-channel distribution may yield better results for the business and the consumer alike.
Distribution strategy is key to capitalizing on the "ubiquity opportunity." Organizations need to consider not only today's model but need to give thought to where consumers buy, what consumers expect on their CX journey, and how products may evolve over time.
The distribution strategy should include an assessment of consumer expectations (and the tools consumers need) at various points on the decision-making / buying / post-purchase timeline. This consideration is yet another driver of the ROI discussion: do all distribution channels for access need to be maintained through the whole CX journey, or is the investment better spent in reducing friction only at key points?
For example, according to Expedia, over 80% of Travel Activities (i.e. "things to do in Rome") are booked immediately prior to, or during, the vacation stay. Implementation of personalization features — like offering recommended activities as a cross-sell to a flight or hotel booking — can help enhance the customer experience and at least stimulate some thought on the Travel Activities product. But perhaps an even more effective channel for recommending these products is in a touchpoint email just days before travel begins, or by providing travelers with a native app-based portal to consume additional information during their travel — information like restaurants or points of interest, or to purchase activities like city tours.
Product evolution also plays an important role in the distribution strategy. As product features or characteristics change, so may the approach to different distribution channels.
The availability of mobile-only hotel pricing is a perfect example of a product adaptation that begs for a distinct user experience in the mobile booking channel versus the desktop channel (or the offline booking channel). Here, the mobile user looking to book a close-in stay has come to expect discounted, last-minute inventory; in contrast, the desktop user may be looking for hotel deals 30 days from today and has considerably more time and space to research.
Another prime example of an evolving product is flights. Although there has always been price complexity in air travel, just a few years ago the variations in the product were pretty well understood by consumers: a choice of first class, business class, economy and premium economy seating. With the introduction of new, no-frills economy permutations, seats in an aircraft may come with different attributes (seat style, bag allowance, etc.), and it's now possible for consumers to redeem for upgrades and ancillaries from within the loyalty platform rather than purchasing them directly from the airline. Though this provides an unprecedented level of consumer control over the travel experience, it also poses challenges in communicating the new depth of the offering in certain channels.
The concept of ubiquitous access to products presents an attractive future for e-commerce, but not if at the expense of the customer experience. The elimination of products not suitable for ubiquity, or attempts to force certain less-suitable products into the ubiquity model, will only serve to erode consumer satisfaction and, in turn, loyalty. Being thoughtful about your products and how your customers consume those products will lead to the right blend of product ubiquity, consumer value and, in turn, loyalty to your brand.
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Last updated: May 1, 2022
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