The last 12 months have seen brands around the world refine their approach to CX to stand out in an increasingly noisy crowd. From digital clothing to new data strategies, 2022 was a year of innovation and change.
In this article, CX Network rounds up its most-read coverage of the brands that have pushed the boundaries of the customer experience.
IKEA uses artificial intelligence to understand customer demand
To meet the huge demand it sees from customers across all channels, automation and AI are key technologies for IKEA. Its innovations in these areas, such as its new virtual home redesign tool have been market-leading. Among them is an AI-empowered demand-sensing tool that can interpret up to 200 data sources to make intelligent recommendations for each product.
IKEA developed the advanced AI-based tool to understand buying behaviors, in order to optimize stock levels and avoid the extended waiting periods that can frustrate customers.
Peter Grimvall, supply chain development area manager at IKEA, explains: “Without a proper and accurate forecast, we can’t understand the demand… what needs to be supplied to who and when.”
He adds: “If it’s too much, it increases our costs and hence prices to our customers, or too little, which means we won’t be able to provide the right offering to our customers. This can have a big impact on our business and the way we serve our customers.”
Sky Deutschland puts the customer at the center
Earlier this year Sky Deutschland was awarded Best Customer-Centric Culture at the CX Elite Awards 2022, which took place during InMoment’s Experience Forum.
The award was presented in recognition of its recently developed cross-site CX solution for internal and external customer service that puts the customer at the center of all decisions.
Speaking to CX Network, Oliver Viereck, managing director, customer care at Sky Deutschland says: “We developed a clear vision: making every customer service experience brilliantly easy, regardless of the reason and the channel through which our customers contact us. We then set up a comprehensive program and derived the right measures to start improving customer service step by step.
“We are on a journey here that is not yet complete. At the same time, it already shows us that we can be very satisfied with what we have achieved so far. We now offer our customers a much better service experience than we did years ago and have been able to significantly increase the service Net Promoter Score across all contact types,” he adds.
Nike designs new range of digital clothing
A digital CX leader, Nike’s online presence has grown rapidly since the brand said it wanted to generate roughly 30 percent of its overall business through digital channels by 2023.
Exceeding its own target within a few months, in April of this year attention turned to its next innovation, Crypto Kicks. A digital sneaker created off the back of Nike’s 2021 acquisition of RTFKT, the shoes are modelled after the Nike Dunk sneaker and marked Nike’s digital clothing debut. Bringing it all full circle, in early December Nike and RTFKT confirmed its signature NFT sneakers would also exist physically with the launch of Cryptokicks iRL.
Supporting Nike’s digital shift, web 3 enabled platform SWOOSH went live in November, offering a digital community and experience for customers and a home for Nike’s virtual creations.
FIFA creates virtual football fan experiences
In the run up to the FIFA World Cup Qatar 2022, FIFA used a whole host of new, digital tools to engage with fans and build momentum for the tournament.
Back in June it put together the Fan Experience Panel, made up of 25 football fans from around the world who were consulted before and during the tournament to ensure the fan experience is on side. In recent months the panel has allowed FIFA a rare chance to judge the fans' response to potential new initiatives while giving fans a say in how the world’s biggest sporting event develops.
Then there was the November NFT auction, featuring digital artwork of five legendary footballers, with all auction proceeds benefitting UK charity Street Child United.
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Sticks ‘n’ Sushi automates restaurant sittings
CX Network’s research has found that 51 percent of brands find integrating data from diverse sources to be their biggest customer data challenge, followed by struggling to manage data silos (47 percent).
Restaurant and take-away chain Sticks'n'Sushi had been collecting customer data from different venues, but it remained in silos.
The company partnered with SevenRooms to integrate all its data and allow different outlets to deliver a personalized customer experience that would be consistent across all premises.
The partnership also enabled the restaurant chain to streamline its operations through an AI-powered algorithm. The automated system now determines the best place to seat guests in real-time, allowing Sticks'n'Sushi to create a more seamless experience and maximize the number of covers it can accommodate at any one time.
The optimized capacity management drives more revenue for its venues and reduces staff workload.
McDonald’s doubles down on data and loyalty
A year after its US launch, My McDonald’s Rewards got its UK-wide roll out in July.
Via the existing McDonald’s app, the loyalty program allows diners to earn points when ordering online, at a kiosk or at a drive-through – but not via third parties – and then redeem the points on selected future purchases and charity donations.
It is the latest step in McDonald’s focus on data, which in 2021 saw it bring its digital, data analytics, marketing, restaurant development and operations segments into a single unit and launch McDonald’s Rewards in the US.
That same year Tarv Nijjar left Mars Inc to join McDonald’s in the role of global senior director, cx transformation – data analytics and AI, and his work to date has seen him feature in CX Network’s 20 CX Leaders to Watch.
Tarv Nijjar will be talking more about how McDonald’s uses data during CXN Live: Predictive CX 2023, January 24-25.
Boots Advantage Card turns 25
In the 25 years since it launched the Boots Advantage Card has become one of the UK’s most popular loyalty programs, with 15 million active users today, 52,000 of whom signed up when the card was launched in 1997.
Hollie McLellan, director of customer marketing at Boots, says it was one of the first schemes of its type on the market at the time. “Fast forward to now and most larger retailers offer a loyalty program,” she says.
Smart data gathering has improved Boots’ understanding of its customers, so it can tailor services accordingly.
McLellan adds: “We know that customers are demanding more value and more variety in the offers, and we know that customers' shopping habits are constantly changing, including wanting instant access to more things digitally at the touch of their fingertips.”
Printemps launches metaverse clothing store
Founded in 1865, French department store Printemps made a splash this year when it added Web3 capabilities to its online presence so customers can shop in the metaverse.
Digital marketing director Morgane Lopes says: “Introducing Web3 capabilities is paving the way of how we, as marketers at Printemps, will interact with our clients in the near future, as well as the future of online shopping.”
She adds: “Buying a luxury product online can be cold compared to the in-store experience: there is no salesperson to talk to or get advice from, you cannot touch the fabrics, you cannot try items on and there are none of the smaller touches that make a customer feed special, such as a complimentary coffee.”
Where have you seen the greatest innovation in CX in 2022? Let us know in the comments below.