Today’s consumers have a clear vision of how they want to interact with brands, expecting seamless experiences that follow them through both digital and in-store touchpoints. They want easy, guided journeys that help them find the right products at the most convenient locations and prices that fit their budget. This expectation for a connected experience is driving a fundamental shift in how retailers deliver value, blending personalized service with advanced technology such as AI-driven recommendations and predictive analytics to create an enriched shopping experience.
Forward-thinking retailers are now leading the way in offering connected experiences, leveraging AI and emerging technologies to empower consumers to control how, when and where they interact with brands throughout their shopping journey. However, many organizations are still navigating the complexities of elevating their experience to attract new customers and drive revenue growth. A well-executed Total Experience strategy offers a powerful framework to achieve this transformation, unifying customer and employee experiences to build lasting value across the entire organization.
A great example is how Carvana, the online used car retailer, cultivates Total Experience by seamlessly integrating customer convenience with innovative technology. From the moment you begin your car search online, Carvana delivers a guided, intuitive experience that allows customers to browse, compare and purchase a vehicle entirely on their terms. With transparent pricing, detailed vehicle histories and financing options, the process is simple and stress-free. Consumers have the choice of purchasing on their own, leveraging digital channels or speaking to a Carvana agent who can answer their questions virtually. Once the purchase is complete customers can choose to pick up their vehicle from one of Carvana’s iconic, high-tech vending machines — a memorable and futuristic experience — or have the vehicle delivered directly to their doorstep. By combining digital ease with personalized, flexible options, Carvana has redefined the car buying journey, embodying the essence of a connected Total Experience.
Why does TX matter?
In our latest research report, The Blueprint to Total Experience, we found a compelling correlation between TX and business success. Experience leaders are seeing a 57% return on investment (ROI), highlighting TX as a key driver of growth compared to beginners. As TX adoption continues to mature, we expect this return to jump to 70% for top performers. Their success demonstrates TX’s transformative power in the modern market.
But how can brands replicate this success and deliver a TX that resonates with their customers? The answer lies in understanding the nuances of each experience dimension and creating a strategy that seamlessly blends the digital and physical worlds, establishing a harmonious, interconnected journey that anticipates and fulfills customer needs at every turn.
Retail’s revolutionary hybrid future
The future of retail is no longer a binary choice between online or in-store shopping. We're entering the era of shopping experiences where both physical stores and digital journeys seamlessly merge to create a more engaging customer experience. Why is this important? Because consumers value the convenience of online shopping combined with the ability to physically inspect products in-store before purchasing or the ability to talk to someone in person.
However, a successful connected experience strategy goes beyond just providing multiple shopping channels. It demands a holistic approach that considers the experience of all stakeholders – customers, employees, partners and suppliers – and aligns them to achieve a seamless and engaging experience.
Here’s how retailers can provide Total Experience to everyone in the value chain:
Enhancing omnichannel integration
Customers are no longer satisfied with siloed experiences. They expect a seamless flow between online and physical touchpoints. This means a shopper can browse a product online, check in-store availability and even reserve an item for pickup – all within the same platform. For instance, 64% of experience-led businesses understand that customers expect seamless shopping experiences across multiple channels.
Innovative services like Walmart's “Walmart InHome” demonstrate the power of omnichannel integration. Customers order groceries online through mobile apps and trained associates use smart entry technology with permission to access homes and put groceries away in the pantry, fridge or garage based on their preferences. This seamless integration between online shopping and in-home convenience saves customers time and offers unmatched ease. Meanwhile, Walmart benefits from potentially increased sales by utilizing physical stores and associates to fulfill online orders. Customers are literally letting brands into their homes if it provides them with a seamless and personalized service that makes their day-to-day lives easier. Brands need to start looking at how they can make their customer's lives easier - not just how and what they want their customers to buy.
Facilitating data-driven decision-making
Cloud and SaaS technologies are shaking up the retail world, driving smart, data-driven decisions. Eight out of ten experience leaders have jumped on these tech trends, while only 39% of those in the early stages of experience transformation have caught up. With these technologies, retailers are dynamically adjusting their operations to meet fluctuating demand, ensuring consistent performance during peak shopping periods. Moreover, by adopting a flexible, pay-as-you-go model, they eliminate costly hardware upgrades.
Take sales associates, for instance. Equipped with cloud-based SaaS mobile applications, they can access real-time inventory data and customer purchase history. This allows them to offer personalized assistance both online and in-store, enhancing the customer experience. Staff collaboration improves as well, with team members across various locations sharing knowledge and working more efficiently. Additionally, real-time data sharing provides suppliers and partners with increased supply chain visibility, facilitating proactive inventory management and optimized delivery schedules. Gone are the days of store associates needing to call other locations to look for a particular item for their customer.
Scaling AI-driven personalization
Nearly 59% of leading companies use AI and data solutions today to gain a competitive edge. Personalization at scale in retail is crucial in both online and offline channels. These technologies enable it by analyzing vast customer data to uncover patterns and preferences, creating hyper-targeted recommendations and offers.
Generative AI (GenAI) pushes personalization even further. About 67% of firms leading the experience transformation race use GenAI to extract insights from knowledge bases, informing critical decisions. Another 46% focus on refining product recommendations, while 61% leverage GenAI to anticipate customer needs and deliver tailored content, services and products to customers and employees. This powerful combination of AI and GenAI not only improves customer experience but also drives sales.
Delivering excellent customer service
Customer service is a critical factor in ensuring high satisfaction and loyalty. This drives 45% of leading businesses to invest in automation and streamline support to meet rising demand. Customer relationship management (CRM) software plays a critical role in this transformation. They centralize customer data, automate repetitive tasks like data entry and case routing and provide agents with a comprehensive view of the customer. This enhances both customer and employee experiences.
For instance, when a customer contacts a home appliance retailer about a malfunctioning refrigerator, the agent can instantly access their purchase history, warranty information and prior service requests through the CRM. This comprehensive view allows the agent to quickly identify the issue and offer a personalized solution, whether it's scheduling a repair, facilitating a replacement or providing troubleshooting advice. Meanwhile, automation through chatbots or self-service portals can efficiently handle routine inquiries like order status updates and product information, freeing human agents to focus on more complex customer issues.
Building TX for a competitive edge
TX is more than a concept – it’s the foundation of modern retail success. By weaving together seamless omnichannel experiences, personalized service and innovative technology like AI, machine learning, and augmented reality, retailers like Carvana and Walmart will forge lasting connections with their customers.
And just as important, empowered and well-equipped employees become a retailer's most valuable asset, cultivating a customer-centric culture that radiates through every touchpoint. This creates a competitive edge – an experience so exceptional that it not only draws customers in but keeps them coming back for more.
