Category : Customer Experience

Customer Experience Digital Transformation Media & Entertainment Retail

OTT Video in retail – the coming revolution

Covid-19 pandemic has caused rapid changes in consumer behavior across categories. Enterprises are striving to recognize this evolving consumer behavior and leverage digital to acquire, engage and retain customers.

In the last few months, US retail sales fell by 8.1% year-on-year – the worst decline since the financial crisis of 2009. In the UK, retail footfalls dipped by 32%, and India saw a 40% drop in consumer spending. Sectors that relied heavily on their physical presence – brick-and-mortar retail have been among the worst-hit sectors during this time.

On the positive side, online businesses have seen a surge in revenues. In the times ahead, the acceleration of e-commerce and the role of digital experiences through apps will be a defining factor in helping retailers connect with consumers to acquire a competitive edge. The outbreak of COVID-19 has accelerated the pace of digitalization. A CNBC report mentions that 40% of consumers say they have increased or significantly increased their online purchasing.

A key component of the online purchasing has been the video platform.  Static images are giving way to streaming videos to better convey product and brand value.

Key benefits of video streaming for retail 

Out of sight, out of mind is more pertinent than ever before.  Hence it is essential for retailers to use innovative approaches to remain on consumers’ radar. Videos play a crucial role in this as it’s a more visually engaging medium. Let us look at some of the factors triggering the need for video streaming in retail:

Consumer demand drives the popularity of OTT

The lockdown of more than ¼ of the world’s population has propelled the usage of online streaming and entertainment services. In the US, OTT usage surged by 7.5% in April 2020 compared to the same month a year ago. And during the last year, the number of streaming services subscribers surpassed the number of cable subscribers and reached a number of 613 million. Disney+ has had a 75% rise in subscribers since early February. The Discovery+ app that Robosoft helped build has garnered close to 4.5 million installs. This rapid adoption unveils a need for a more human connect which a video meets better than static images or text.

Increasing penetration of smartphones, affordable high-speed data networks, demand for personalized experiences, rise in adoption of smart TVs, and devices such as Fire TV are some of the reasons behind the rise in demand for Video OTT services.

Relevance across categories and use cases

Video OTT is no longer a vertical medium confined to the media and entertainment domain. It is now a horizontal technology that can be integrated into various industries like – education, healthcare, and retail, amongst others. Fortune Business Insight cites Medical Aid and Educational platforms as significant contributors to growth in the streaming video market propelling it to USD 842.93 billion by 2027.

A new format of the familiar – TV home shopping re-invented

The TV channels, as we know it, had a slew of video channels showcasing products.  However, the call to action to close the purchase loop was left to consumers calling up a number as there was no easy way to complete the purchase on the TV channel. The OTT technology in retail enables the best of both the worlds: the engagement of TV and the interactivity to explore options, make desired selections at own convenience and importantly place order and make the payment. Recently, the world’s largest air conditioner maker, Gree, sold 44 million USD worth of merchandise on Kuaishou, China’s leading short-video and live-streaming social platform.

Bring alive both the product and in-store experience (Video OTT for Brand promotion and Advertisement)

We have all experienced the gorgeous presentations of products in categories such as food, consumer goods, luxury, etc on the TV channels, evoking an emotion – a desire. Such experience is partially carried forward on social media platforms such as Instagram. According to Forrester, Instagram ads have the highest engagement rate of all digital ad placements. Several categories where visual appeal (food, apparel, interior decor) matters have taken advantage of the format. Video OTT adds a dimension of interactiveness and convenience to this.

Combined with AR/VR, it gives organizations the tool to bring the in-store experience to the digital channel rather than being merely a catalog of static images. In India, jewelry brand Tanishq has clocked a sales of USD 10.3mn in two months during the recent lockdown period through video calls and Whatsapp chats. Now imagine the brands in the retail domain across categories generating similar uptick in revenue using the OTT channel.

Taking a cue from this trend, in July this year, Google launched Shoploop, a video shopping platform for discovering, evaluating, and buying products, all in one place. Similarly, there have been more online video-based shopping apps that have been launched recently – for e.g. YEAY is the first app where products are sold solely through video. Bulbul is another – online Video Shopping app that is from India.  Enhancing the online shopping experience further, Dutch Cheese Merchant Kaan lets online customers order artisanal cheese and interact with staff in real-time as if they were actually inside the shop. A setup like Kaan’s Stream Store could fill the missing human element into the often impersonal experience of shopping online.

Foster customers relationships and build loyalty

This is also the time for brands to build a stronger connection with their consumers by personalizing and humanizing their experiences. Videos can help bring the human-connect in the consumer’s shopping experience that is beyond ‘click and buy’.

According to a recent report from Mckinsey, the specialty-apparel and department-store retail channels have already reached peak promotional frequency online, so it will be difficult for brands to break through with clear, differentiated offers that stand out from competition. As the holiday season nears, shoppers will be bombarded with messages about flash sales, BOGO deals and so on which will be lost among a sea of similar emails and digital ads. Retailers will have to re-evaluate their strategies to stand out and Video streaming used effectively can help do that.

Don’t just communicate – engage and entertain – ‘Shoppertainment’

A PWC report suggests that consumers are 50 percent more willing to try new brands at this time. And consumers are spending more time on social media and online streaming platforms. This is a great opportunity for brands to recognize this changing consumer behavior to further their leadership position using Video OTT. Strategies include connect with consumers with effective storytelling strategies using live streaming, influencer marketing, AR/VR, 3600 videos, and more.

Videos and live streaming will prove to be an effective tool to leverage the power of social media and get more buyers, for instance, Be.Live the video streaming format has seen a 70x increase in the number of customers using its live shopping feature. Similarly, Alibaba’s Taobao Live live streaming platform has surged.

The younger generation expects more engaging shopping experiences. Leveraging this trend large retailers are already leading the charge with interactive video. For example, Fandango’s streaming service Vudu has been investing in shoppable ads to uplevel their platform’s e-commerce capabilities. Alibaba has tapped into streaming platform Bilibili to leverage anime video content and get in front of new audience segments.

Further, according to Taobao (Alibaba), there were 400 million users watching its 60,000-plus Livestream shopping shows in 2019. The Livestream channels, hosted by brand stores or influencers, generated 200 billion yuan ($28 billion) last year. Shanghai Fashion Week in late March was fully live-streamed on it: viewers could pre-order the clothes the models were wearing on the catwalk, as well as buy pieces from the designers’ existing collections.

Shorten the buying cycle, optimize costs and expand revenue streams

Video medium could help in shortening the buying cycles by making pertinent features of the product more evident and reduce the number of returns resulting from mistaken selection. Video OTT can also greatly facilitate product exchanges by providing a near live in-store experience. Recently, Galeries Lafayette in France used live video to help launch an exclusive Live Shopping service, where interaction with the store’s personal shoppers are made possible via video. Products can be chosen and confirmed by email with online payment, ready for either home delivery or Click & Collect.

Smaller retailers are also jumping the bandwagon using video platforms to reconnect with their customers. The number of merchants using it for the first time grew by 719% from January to February. Sarah Akram a master aesthetician and founder of Sarah Akram Skincare, which caters to celebrities like Billy Porter and Zooey Deschanel moved to video format to offer virtual consultations and live skincare assessment through Instagram’s live feature.

The video medium has also opened several opportunities for B2C services as well. Shapermint a direct-to-consumer shapewear company recently began streaming live yoga practices, meditations, and home exercises as well as sessions on how to care for children while working from home.

Better analytics for delivering personalized experiences

Video-streaming platforms coupled with a digital backbone can remember customer interaction history and personalize their subsequent experiences. can offer detailed data reviews and analysis are available for a better brand and product sentiment and roadmap. Further, the data from these platforms can help in collecting qualified high purchase intention leads, allowing precise retargeting and remarketing. Roku launched a new shopper data program that is designed to improve targeting and measurement of TV advertising for CPG marketers, with Kroger Precision Marketing (KPM) joining as a launch partner. The information will help CPG marketers better target ads that run on Roku’s platform and tie ad exposure to online and in-store sales.

In conclusion:

While going back to normal may happen eventually, some shifts in consumer buying behavior may be permanent. Retailers are already shifting strategies and adapting to today’s current landscape. The pandemic turned more consumers into online shoppers across all categories. Retailers already believe that this could be the new normal. Given that, the audio-visual nature of streaming services will have a powerful impact on consumers as videos are the most engaging of visual media. Videos when done well and in a non-intrusive way can influence shoppers in their buying journey and help accelerate the purchase decision favorably.

Video platforms and live streaming will have a crucial role to play in the future because they offer a sense of community as well as entertainment — two things consumers are yearning for and two critical aspects of shopping. People buy things not just because they need them, but also because of the experience. Videos and live streaming have the potential to simulate a real-life experience, leading to a stronger brand association and hopefully a long-term relationship with consumers.

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Customer Experience Enterprise Applications UX/UI

The role of Information Architecture in creating richer user experiences

In a world where everything that a user needs is just ‘an app away,’ offering delightful User Experiences can be the differentiator for businesses amongst the myriad of options, that consumers might have. The fact that 88% of people are less inclined to return to a site after a bad UX makes it a key factor for businesses to retain customers. A good UX is not just critical for customer engagement and retention but it also drives business value, according to a study by Forrester, every $1 that’s being invested in UX returns $100.

The saying ‘well begun is half done’ is aptly well-suited in this context of creating unique, intuitive, and engaging user experiences that simplify the user’s journey across the platform, and building Information Architecture (IA) is the first step towards achieving this goal.

An IA is a blueprint that guides your team while designing the UX for any digital platform. It is in fact one of the most valuable and necessary aspects while embarking on the journey of creating digital solutions. It is a collaborative task often shared between the design, development and engineering teams.

In this article, we will learn about information architecture and how it functions as a backbone while crafting user experiences for your products.

What is an information architecture (IA)?

Information architecture can be defined as a method of organizing, structuring, and labeling the content of a website, web or mobile applications.

The ultimate goal of an IA is to establish an easy and logical decision-making process for the end users of designed product.

Elements of IA

Date source – 3 Elements of IA

The art and science of creating Information Architecture

Information architecture has roots in both library science and cognitive psychology.  Let us take a moment to understand these terms individually.

Library science

Libraries have always been associated with the practice of information science. Library science is the study of how to categorize and catalog information resources. The two defining traits of library science are:

  1. Categorizing – defining things by similarity
  1. Cataloging – creating metadata and assigning it to content in order to find it again in the future

Cognitive psychology

Cognitive psychology is the study of how our minds work —  what mental activities take place in our brain and what different factors influence our attention. Majority of the UI/UX design rules we have today have roots in cognitive psychology. Information Architecture uses some elements of cognitive psychology to define the way information should be structured.

Here are a few key elements of cognitive psychology that are most valuable for IA

key elements of cognitive psychology

Data source – Elements of cognitve psychology

Gestalt principles: Gestalt principles explore users’ visual perception of elements in relation to each other. They show how people tend to unify visual elements into groups according to their similarity, continuity, or closure. It focuses on good figure, proximity, similarity, continuation, closure & symmetry.

Mental models: It is the users’ perception about certain things based on their past experiences. For e.g. it could be expecting the user to close a particular website/app window on clicking the button represented by a cross in the box.

Cognitive load: Cognitive load is the amount of information that a person can process at any given moment.

Recognition patterns: People visiting a website or using a mobile app expect to see certain features associated with a specific product. Designers apply various recognition patterns to make the interaction familiar.

Visual Hierarchy: Visual hierarchy is directly related to content readability. One of the essential points to consider for architects is scanning patterns — before reading a page, people scan it to get a sense of interest. The most common scanning patterns are F and Z patterns.

The most common scanning patterns are F and Z patterns

We derive most important components of the information architecture from the understanding of the library science and the cognitive psychology. Let us understand what these components are and how do they help in shaping up the entire information architecture.

Components of information architecture

Components of information architecture

Components of IA

Information architecture is comprised of 4 components –organization system, labeling system, navigation system and search system

Organization systems Categorization of information, e.g., by subject or chronology.

Labeling systems Representation of information, e.g., scientific terminology (“Acer”) or lay terminology (“maple”).

Navigation systems How users browse or move through information, e.g., clicking through a hierarchy.

Search systems How userssearch for information, e.g., executing a search query against an index.

Types of Navigations in Information architecture

Hierarchical Navigation – Making one choice per screen until the user reaches the destination

Hierarchical Navigation

Flat Navigation – Switching between multiple content categories

Flat Navigation

Content Driven Navigation – Moving freely through the content or the content itself defines the navigation

Content Driven Navigation

Now that we have the fair understanding of the Information Architecture, let us look at how to build one.

How to build an Information Architecture

The structure of an IA is based on the requirements of the project and the iterative nature of the design. It may vary from project to project. IA forms a firm base and supports the various design changes that may be done throughout the progress of the project.

Before defining the information architecture, the first step is to develop a supportive document. Based on the acquired business knowledge and the understanding of the users’ pain points. With these points in mind, adocument consisting of information like company goals, user goals, user personas and competitor analysis, etc. is created.

The process of designing an Information Architecture:

To define the information architecture we will follow a 5 step process.

1. Group the content

In this phase, we sort the content and group it under different umbrellas and define the content set.

In case of a redesign project, revisiting the entire structure and determining which information sets to keep and which ones to get rid of in addition to deciding where new content is required is the first step.

Card sorting is one of the most effective & widely used UX tool for content grouping

Group the content

Data source

2. Create a site map

High Fidelity App Map for an Investment App

High Fidelity App Map for an Investment App

In this phase, the user goals and the purpose of the digital platform is defined. Post which the user journeys with different sets of tasks are created.

The user journeys helps in understanding the movement of the users on the digital platform and the interlinks between the pages.

3. Outline the navigation structure

The navigation structure is created based on the business understanding. Any of the navigation types mentioned earlier in the article can be used as a foundation and the entire structure can be built on it.

Detailed Navigation structure of an e-commerce website

Detailed Navigation structure of an e-commerce website

4. Refine content labels

In this stage, the content is labeled according to its purpose. These labels are linked to create the structured categorisation, consisting of sections, sub-sections, links, toggles etc.

Precise and easy to understand content Labels for the catalog level -2 Section of e-commerce app

5. Create wireframes and conduct usability test (Writing Scenarios)

Wireframes created for an app to test the journey for the proposed IA

Wireframes created for an app to test the journey for the proposed IA

It is good practice to test out the information architecture early-on in the project and make changes as it progresses. Hence in this stage, user scenarios are written. Post which the wireframes are tested with these scenarios.

This process is critical to help understand user pain points and design failures. We can then iterate the design as required.

6. Defining areas for analytics integration. (Plugging in the analytics)

Plugging in the analytics

Example of an app map created for insurance company showing the analytics plugins

Analytics plays an important role in creating user journeys. This phase will help in identifying the focus areas of the users, the functionalities they will use most, and their pain points. This becomes a precursor for plugging in analytics to the digital platform.

Also this data comes in handy for future iterations as it can be used as a guide and changes can be made to the design in order to solve the problems and improve the user  experience. Hence, once the architecture is created, the decision can be made based on the goals of analysis and select tools as per requirements

In conclusion, Information Architecture is an integral part of an experience design process. A well structured IA is a powerful tool that ascertains methodical and easy navigation through a digital platform and ensures a seamless flow for content discovery. The nature, levels, and detailing of the architecture can vary according to the project. However, creating an  IA is a must for every experience designer and it is a critical step before embarking on the design journey.

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Customer Experience Media & Entertainment

OTT Brands in the post-COVID World: 6 Trends and Opportunities in 2021

The rise in consumption of video and audio streaming services over the past year due to extended lockdown periods arising out of the COVID-19 pandemic has been covered extensively in media. The OTT viewership and streaming hours in the US and across the world shot up expectantly during the pandemic. All the major OTT trend reports suggest it will only grow further in the coming years after the pandemic. In hindsight, it was a natural fallout of having to stay indoors for long periods.  People resorted to options in indoor entertainment through streaming services and mobile games. 

OTT Services on Smart TV

There is a rapid exponential increase in OTT platform usage across the past decade. The OTT industry revenue is expected to ride the COVID-19 wave and reach over 210 billion dollars by the end of 2026. According to a recent CII-BCG report, the number of paid OTT subscriptions was up by 55-60% to 100-125 million in 2020 from 49 million subscriptions in 2018.

Another important factor for OTT ascendency is the introduction of 5G technology. The 5G technology is going to be a major factor assisting the increased usage of OTT services. Having 5G combined with OTT services would mean less buffering and faster streaming. This would encourage OTT service providers to venture into live sports and other events streaming.

What are the current OTT viewing trends?

The USA and Global

According to the 2020 report from Comscore, in the US, 69.8M homes used OTT in April 2020, an increase of 5.2M homes compared to the previous year. The same report also indicates the average home viewed 102 hours of OTT content during that same month, an increase of 17 hours compared to April 2019. Another report by theTradeDesk indicates 27% of the US households are going to end their TV subscriptions by the end of 2021. The trend was similar across the globe, for both video and audio streaming. In the US and UK, consumers shifted from audio to video streaming as the former was more suited to a commute while the latter for in-home consumption.

India

The BARC-Nielsen report from April indicates that in India, VOD viewership on digital was at 3 hours 59 minutes a day in week three of lockdown, with a 12 per cent increase from pre-COVID time. In March, audio streaming too saw a spike in India – there was a 42% increase in time spent on listening to them. 

OTT trends and opportunities for current and new brands

Now consider this – once the pandemic situation eases, more people will step out for their regular work, are things going to be the same hereon for OTT brands? 

Robosoft Technologies brings you 6 trends and opportunities for both established and new players in the OTT segment. These will discuss the impact of the trends and the way forward for OTT brands.

1. Need for a sharp brand value proposition

The OTT market is already cluttered in many geographies. A study from a major OTT market tracking organization, Parks Associates, suggests the number of OTT video services in the USA has more than doubled in the past six years to 300 platforms through the third quarter (ended Sept. 30, 2020). Similarly, India had 36 OTT streaming services and the number has gone up to 60 by mid-2020. New entrants are eyeing the market and the competition is only going to increase. The most important trend observed among Indian consumers is their willingness to pay for content during the pandemic. 

In this context, brands need to offer a sharp, differentiated value proposition primarily led by either a demographic or psychographic segment. A diverse country like India offers opportunities to target consumers by language preference. 

As seen through another key trend of 2020, there has been a continuous emergence of hyperlocal OTT services such as Hoichoi (Bengali), Aha (Telugu), Koode & Manorama Max (Malayalam), Planet Marathi OTT (Marathi), CityShor.TV (Gujarati), and more. 

In total there are 17 major languages for delivering OTT content in India currently. Each of these has its own vast library of content and niche audience. Segmentation through a lifestyle preference is also possible as seen with the successful launch of Discovery+ in India which has a unique proposition of unscripted content aimed at lifelong learners.

This hyper localization or segmentation through a niche can also be seen with the emergence of BritBox. It is an online digital video subscription service showing primarily British shows made available for UK, USA, Canada, and Australian audiences with South Africa next on the list.

According to a survey conducted by Deloitte, in May 2020 among US consumers, the reason for choosing a particular brand of service seemed to indicate a preference for both a broad range of shows & movies and content not available elsewhere.

Content and discounts attract streaming video subscribers

Image source

It reflects in the content strategy of several brands which are now emphasizing ‘originals’ which then call for huge investments in creative talent and production costs. As consumers, we have also chosen to snack on a streaming service based on a particular show or movie and not renew the subscription when the show completes a season. To that extent, brand loyalty cannot be taken for granted in this segment. 

The above survey also found that 66% of people were frustrated when the content they wanted to watch was removed from service, and 53% were frustrated by having to subscribe to multiple services to access the content they want. From October 2020 to February 2021, the churn rate for streaming video services held at around 37%. 

Late entrants in a particular category will then have their work cut out to wean away from the audience from established players. There are several key factors to take into account while designing a successful OTT platform. A quick study and research go a long way in the successful journey of your idea.

Create a successful multi-device and multi-platform OTT App

2. No room for complacency in the post-COVID-19 era

Traditional cable TV is still the most popular option for entertainment for households in developing markets like India. Apps and digital experiences through personal computers and smart TVs have increased in popularity due to unexpected extraordinary circumstances. When the situation eases in the months to come, two factors will come into play – app fatigue and subscription fatigue. The former existed even before COVID-19.

The Deloitte survey mentioned earlier also indicates that even before COVID-19, the average US consumer had 12 paid media and entertainment subscriptions – with millennials averaging the highest at 17. The report goes on to say ‘with more subscriptions being added or sampled during the lockdown phase indications are that consumers have signed up for more services than they can handle or afford’. 

In my view, multi-experience indicates that streaming services have a twin task of answering ‘why to choose me?’ and also work at retention strategies. The price-value equation will be worked out by consumers driven primarily by the quality of the content and the ‘worth’ of such in dollar value. 

Due to the availability in abundance, a user may have 30-40 apps installed. But the ones which get used daily are perhaps only 4-5. However, here it’s a question of payouts every month and there’s a limit to the number of subscriptions and the monthly payout.

3. Room for growth, new audience, new devices

The OTT market already has big global players with deep pockets. YouTube, Netflix, Amazon Prime, Hulu and Disney+ are considered the Big Five in a Comscore report and they accounted for 82.5% of the streaming hours in April 2020. Yet, the next 5 services have a higher percentage change in hours per household in April as compared to January.

Change in hours and reach of Big 5 and non Big 5 OTT services

Image source

By the end of 2020, Apple TV+ has also garnered an audience with a captive base of iOS, Mac and Apple TV users. Indications are that there is still room for growth in terms of audience and devices.

The trend is expected to grow with Indian Originals having quality content expected to grow beyond the South Asian audiences in the coming days.

4. Table stakes: Success factors and expected features

Content creation, processing, storage & retrieval, content distribution and management continue to be the backbone of the OTT business. 

Over the past few years, growth and engagement have been dependent on customer experience, customer acquisition & retention, use of recommendation engines, technologies such as voice and presence in large screens such as Smart TVs.  

The high penetration of Smart TVs and the presence of big global players in the OTT market has also contributed significantly to the growth. Some content owners like Discovery Plus are going directly to consumers via Roku and OTT only operators like Amazon Fire TV for their content distribution. OTT players such as Netflix, Disney, NFL, and NBC have been investing in creating OTT TV apps to bring their videos directly to consumers with multi-experience options. Having a multi-experience OTT service enables the OTT platforms to provide multimodal, multisensory, and seamless experiences to their subscribers. 

See the work behind creating a multi-experience OTT platform for Discovery+

Discovery also made its first US pay-TV deal with Comcast for further distribution of its streaming services. The arrangement will enable the SVOD to be accessible on the Xfinity Flex OTT platform as well as traditional X1 set-top boxes. 

As parity features come into play (no pun intended) in OTT services, some key features will become table stakes for streaming services as shown below.

Key Features of OTT Services

5. Monetisation strategies: ad-support is welcomed

Streaming services are lowering the entry barrier by offering free trial periods and price-offs for a subscription. 

In markets like Asia, ad-supported services are common. As with publishing, a relatively smaller percentage of the market will be willing to pay a premium to avoid ads or have an ‘ad-lite’ experience and commit to a subscription. Deloitte’s COVID-19 survey found that 35% of consumers will pay a premium to avoid ads in the US. Providers are increasingly turning towards pay-per-view and advertising monetization as alternatives to subscription monetization.

In the months to come, streaming services may opt for a combination of snackable, short-term subscription options and advertising revenue to offset the high cost of production. The consumer, hitherto used to high-value, big-budget movie productions from Hollywood and other film industries, will expect similar production values from OTT content providers. Disney+ is already bundling its videos together with ESPN, National Geographic, and other content producers. This will likely expand in the future.

Survey finding consumers' preference for ad supported streaming services

Image source

6. More than just consumption with value addition

Brands in the OTT space can also position their services beyond passive consumption by enhancing their offering to include gamification engines, interactive live television, real-time polls and more.

Interactive Entertainment Platform

Connected TVs are becoming increasingly popular among US household. The consumers’ preference to watch the OTT content on a larger screen led to a significant jump in the usage of Smart TVs from 37% in 2018 to 51% in 2020. This jump however doesn’t affect the demand for mobile streaming on smartphones and tablets.

Another interesting space that is developing quietly is the diffusion of retail into OTT platforms. The traditional TV ads fail to deliver a direct purchase option for their consumers as they have to dial-up a number or visit their website for the sale to happen. However, OTT platforms have the potential to bring the best of both worlds. The interactivity, convenience of time, and most importantly the ability to make purchases on the platform itself. 

Netflix is again on the verge of major disruption in the OTT space with their online shopping store. This will provide fans of particular TV shows or cinemas with collectables from the show. This innovation is surely a major step for Netflix to keep their consumers on their platform and increase brand loyalty.

Conclusion

In summary, the situation which existed before the COVID-19 pandemic has been accelerated over the past few months. Consumers who used to sample a service due to free offers or a favourite piece of content have had a plethora of options to choose from. 

A churn is inevitable in the coming months as both the consideration set and the purchasing power of most consumers are limited. Yet, with a sharply differentiated positioning, investment in relevant content, smart acquisition & retention strategies and above all, crafting a great customer experience across devices the future augurs well for both established and new players in the domain.

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Customer Experience Enterprise Applications Fintech UX/UI

Customer Experience in FinTech and FinServ: the opportunity to build loyalty is now

Across the age spectrum, more people are opting or are at least open to using financial apps for managing tasks ranging from daily budgeting, stock investments, banking services, payments, or insurance needs. In 2019, consumers accessed financial apps over a trillion times. China, India, Brazil, United States, and South Korea were the Top 5 nations in terms of total sessions in finance apps.

Consumers love finance apps

According to the 2020 Mobile Finance Apps Report by Liftoff and AppAnnie, the install-to-register rate of finance apps is a healthy 46.2% indicating the willingness of users to not just download such apps but engage with them too. The install-to-purchase rate dips to 19% pointing to a lot more work needed to encourage usage. Entrepreneurs and the start-up community are betting big on FinTech, as well. Many of the breakout apps of 2019 were in FinTech from digital banking (e.g. Nubank), payments (Google Pay), and loan disbursement (e.g. KreditBee) to all-in-one super apps like PhonePe.

Traditional banks, long dependent on brick and mortar retail-based banking are trying to keep pace with changing consumer behaviors and digital experiences. Data shows that growth in average MAU from 2018 to 2019 was higher for FinTech apps than for legacy banking apps.

Change is the only constant

Fact is, the mobile app revolution, and how it would affect businesses, was a disruption that many industries did not foresee. Consumer preference and user experience in one domain has had an impact on other domains too. For example, urban mobility apps such as Uber have raised expectations of user experience for all transactional consumer apps. In that context, legacy banks must compete long used to brick & mortar banking are trying keep pace with new-age digital banks and FinTech companies in terms of ease-of-use, design aesthetics and ‘cool quotient’.

According to UserTesting of UK, a company focused on testing as a service, consumers were drawn to FinTechs for 3 major reasons: In-demand products and services, trusted recommendations and ease of use.

Utility bill payments, peer-to-peer lending, bank transfers, and more were made possible by FinTech apps, many of which started as digital wallets or simple payment services. The social buzz and recommendations from friends helped these apps gain traction. Ease of use is another factor that works in their favor.

Traditional banking apps have acquired a reputation, rightly or wrongly of being difficult to use. According to research from US-based finance portal. PAYMNTS, 54.1% of consumers surveyed said they would use their banking apps “much more often” if only they had more control over the authentication requirements of their apps.

Across financial services, especially banks, one can observe these common features:

Across financial services, especially banks, one can observe these common features

The FinTech and FinServe industries have two unique characteristics – the tasks consumers perform can be clubbed as ‘routine’ and ‘risky’. Product owners need to address these through a mix of technology and human instinct. In other words, Artificial Intelligence for the routine and Emotional Intelligence for the risky. Banks are already using AI technologies to automate routine banking tasks such as resetting passwords, checking account balances, transferring funds between accounts or paying monthly bills.

According to a Bain & Co report, consumers prefer digital channels, but they give higher Net Promoter Scores to companies that allow customers to speak with a representative to resolve a problem. Emotional intelligence has a role to play especially in providing a personal service experience during a stressful situation.

The post COVID world and financial services

Shifts in consumer behavior during uncertain times, such as the current global pandemic, accelerates the need for digital even more.  According to a recent report “Credit Union Innovation Playbook” by PYMNTS, “the COVID-19 pandemic has led to a remarkable shift in the ways consumers want to bank — away from brick-and-mortar branches — making it much more crucial to improve digital banking services”.

It is not all black and white when it comes to consumer behavior towards financial services. The one factor which legacy brands enjoy, at least among the older consumers, is familiarity and trust. Longevity and the comfort factor of seeing physical branches dotted across the city subliminally can create positive brand equity – a feeling of ‘having been around’. In contrast, new-age digital banks may have to work harder to earn the trust of consumers. 51.1% of credit union members in the US cite “trust” and “risk of fraud” as the biggest barriers to trying new-age banks. According to EY, ‘responsible banking’ is more important than ever as consumers indicate their ‘future purchasing decisions will be impacted by banks actively supporting the community, being transparent in all they do, and ensuring they are doing good for society’. What does all this have to do with customer experience? The short answer is:  everything. Here are the reasons why:

The business success of financial services and FinTech brands will increasingly depend on how they master the digital experience. Genuine, meaningful product differentiation is difficult in the highly regulated banking and finance industry. Enterprises are faced with two challenges:  How to drive customer engagement with limited differentiation at the product level while increasing volume and velocity in customer acquisition? The answer is crafting a superior customer experience across all digital channels.

Retention is the new growth. Enterprises know that new customer acquisition comes at a high price. However, retaining and growing the lifetime value of an existing customer (active or inactive) is usually a cheaper way to increase revenue. Design Thinking methodologies come into play here. Implementing strategies to encourage loyalty (and therefore retention) can often be a more successful strategy than chasing new audiences. Citibank’s research found that 83% of consumers (that number goes up to 94% among Millennials) are more likely to participate in a loyalty program if they can access the program easily from their mobile phone.

Now more than ever before, Empathy is the key. It is said that all our decisions in life are driven by the emotional brain, rather than the rational one. One would imagine it is even more so in the current times. At Robosoft we strive to understand the emotional triggers that act as barriers or motivators for actions when interacting with a digital product. When working on a FinTech product even a simple task of paying bills can evoke a diverse set of emotions.

Now more than ever before, Empathy is the key

When working on a peer-to-peer lending product for the US market, we created an emotional map of a user which looked like this:

Emotional map

In a world that is increasingly adopting remote working, marketers may not be able to get a first-hand feeling of consumer motivations or behavior. In this context, getting the customer experience right throughout the consumer buying journey is a critical building block for brand loyalty. The key is in approaching product creation from the POV of building long-lasting customer relationships rather than regular transactions.

Human instinct and customer experience

The advertising legend Bill Bernbach once famously said in the context of marketing communications that ‘It took millions of years for man’s instincts to develop. It will take millions more for them to even vary. It is fashionable to talk about the changing man. A communicator must be concerned with unchanging man, with his obsessive drive to survive, to be admired, to succeed, to love, to take care of his own.” One can extrapolate this observation to digital experiences too as product owners should remember that basic human instincts will remain unchanged and are common across domains.

In the context of customer experience which can drive brand loyalty there are common principles applicable across categories – be it FinTech, OTT streaming services or food delivery apps. Some of the principles applicable to Financial Service are:

Focus on users over products: at a recent webinar, famous author Seth Godin spoke about enterprises designing more for their benefit than that of the users. As an example, he mentioned how easy it is to remember secure 6-digit numerical passcodes for apps. But when an enterprise introduced a seven-digit numerical passcode citing seemingly extra security they have not considered the friction it is likely to cause. It is an example of doing what matters to the enterprise first rather than the user.

Image source

Design Thinking workshops and user research tools help gain insights into consumer needs. Remember, users may never be able to explicitly convey or may not even know what they need. It takes expertise to interpret their pain points and derive meaningful insights that can be put into action.

Think experience, then features: it is always tempting for product owners to pack in all the features that they think are ‘nice to have’ or likely give a competitive edge. But what is sacrificed is simplicity which could lead to a sub-optimal product experience. At Robosoft, our strategy & design teams work closely with product owners in enterprises to prioritize features that are important to the user at every stage of the product roadmap. We must also remember that we can’t have it all – we have to lose some to gain some. In a banking product, a balance needs to be sought between convenience and security.

Think experience, then features

Create an emotional connection: just as some movies, books, and songs evoke an emotional response in us, digital experiences have a potential too, in their own way. It doesn’t mean that using a bank’s mobile app should move one to tears (may happen if it is out of frustration!) just as some movies impact us emotionally. It is about creating a subtle feeling of accomplishment, productivity, safety or whatever is the relevant parameter for that category and product.

Key emotions that a Financial app should address:

Key emotions that a Financial app should address

Copywriting for UX is also an aspect which product owners need to pay attention.

UX copywriting, or user-experience copywriting, is the act of writing and structuring copy that moves digital users, like visitors and customers, toward accomplishing a goal in an intuitive way.’

There is both science and an art to copywriting which helps accomplish tasks better. Tone of voice and brand personality can also be reflected in the copy. The language used in say, a small-loan lending platform will vary from that of a high-end wealth management app.

Provide clear and precise directions: unlike say a trivia game where confusing instructions could lead to minor irritations and friction, financial services deal with a lot more ‘serious subject of money. Confusing navigation or language can lead to errors that can cost money to the user and erode trust in the brand.

Provide clear and precise directions

Use analytics regularly to give users what they want: baking analytics into the product at the very beginning ensures that the right metrics are tracked for continuous product improvement and personalization.

Use analytics regularly to give users what they want

Integrate technologies seamlessly: both consumer-facing experiences and backend processes can be made better by emerging technologies. Blockchain, robo-advisors, process automation, voice, and chatbots have roles to play in improving customer experience. In the post COVID world, video banking may see a surge as well as the need to invest in

Provide an intuitive & interactive experience: According to Interaction Design, ‘a user is able to understand and use a design immediately—that is, without consciously thinking about how to do it—we describe the design as “intuitive.” In the context of FinTech or FinServ apps the process could start right from the login method, conveying a sense of safety & privacy, using AI to monitor and predict transactions and more.

Be inclusive: user experience which works for all must be the mantra when crafting digital experiences. Websites and mobile apps that understand the needs of visually or hearing impaired and other eventualities must be considered. Uber’s consumer app, for example, notifies the commuter of any special needs the driver might have. Some food delivery brands think not only of the consumer but of the delivery executive too by urging the user to consider a tip. Food delivery apps like Zomato also highlight the profile of the delivery executive, giving a brief summary of his or her aspirations thus making the experience more humane and inclusive.

In sum, the unchanging human instincts we spoke about earlier, the‘obsessive drive to survive, to be admired, to succeed, to love, to take care of our own’ has come to the fore more than ever. The recent global pandemic has added new dimensions to customer experience in financial services. It is a great opportunity for enterprises to build a competitive business edge through great customer experience.

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