The banking sector has experienced significant changes over the last decade due to new technology, evolving customer expectations, and increasing competition from fintech firms. To stay competitive in the dynamic landscape, banks must strategically adapt their core infrastructure, product offerings, and digital approach to create a truly customer-centric experience.

This article examines five pivotal trends that will continue to shape the banking sector in 2024. By examining recent practices adopted by industry leaders, we will demonstrate how the once-traditional industry is ready to tackle the demands of digitalization and foster innovation.

Trend 1: Core Modernization &
Cloud-Based Infrastructure

In the forthcoming years, big banks will prioritize core modernization as a key element of their long-term strategy. With new improvements made by today’s cloud service providers, more banks will recognize the advantages of migrating their core systems from mainframes to the cloud. The cloud offers greater resilience, agility, innovation, and delivery speed than legacy systems. Its API-based architecture allows banks to better leverage their database to deliver highly personalized customer experiences.

As indicated by Accenture Research,

A significant *63% of leading banks are either in the process of migrating their core systems to the cloud or making preparations for such a transition.

JPMorgan Chase is ahead of the curve with its modernization initiatives. In 2021, it first announced the cloud transition of its retail banking systems to Thought Machine’s Vault platform. By April this year, JPMorgan Chase had spent over $2 billion on building new “cloud-based data centers” and had migrated approximately *38% of its applications to the cloud. According to Chairman and CEO Jamie Dimon, the bank’s infrastructure modernization is slated to bring in an additional *$1.5 billion in cost savings and efficiencies over the next three years.

Bank modernization is an ongoing process that requires a substantial investment. However, it paves the foundation for harnessing advanced technologies such as Artificial Intelligence (AI) to enhance efficiency and drive long-term profitability. For banks that have yet to form a cloud strategy, now is a good time to evaluate and start with feasible steps within the company’s resources and goals. 

Trend 2: AI-Driven Personalized Banking Solutions 

Cloud-based data centers offer numerous advantages, and one notable benefit is the greater potential of Artificial Intelligence (AI). The nature of cloud infrastructure provides banks with the computational power required to handle and analyze vast amounts of customer data in real-time. This enables banks to derive valuable insights into customer behaviors and preferences, allowing them to customize products and services to deliver a highly human-centered experience. 

Bank of America (BoA) is an early adopter of Artificial Intelligence as part of its product strategy. Beginning in 2019, Erica, BoA’s AI-driven virtual assistant, has handled customer queries, provided personalized recommendations, and guided customers through various banking processes. The integration of chatbots and virtual assistants has significantly reduced wait times, improved overall satisfaction, and transformed how customers engage with banks.

By leveraging data-driven insights, BoA can provide a tailored product offering and loyalty program. Through analysis of each customer’s purchasing patterns, financial needs, and savings goals, BoA offers a personalized loyalty program that allows clients to conveniently track, manage, and redeem multiple rewards programs in a single place. 

BoA’s AI-driven approach has yielded an impressive customer retention rate of nearly *99%.

In addition to Bank of America, JPMorgan Chase expects to benefit from its AI-driven strategy. The bank has made substantial investments in data analytics and AI technologies, with the expectation of generating *$1.5 billion in business impact by the end of 2023. By leveraging these technologies, JPMorgan Chase aims to enhance customer personalization and gain valuable insights into individuals’ banking preferences, saving goals, and financial aspirations.

Trend 3: Online Banking VS. In-Branch Engagement

After the pandemic, 97% of customers now conduct most of their banking activities on mobile devices, highlighting the prominence of online banking and a seamless omni-channel experience. 

An omni-channel experience involves providing a consistent banking experience across multiple channels, which include mobile apps, websites, and physical branches. Customers today expect the ability to start a transaction on one platform and continue it on another without any disruption. They also expect to have access to their accounts and services anytime, anywhere, on their preferred platform. 

Customers today do most of their banking on their mobile devices, with only *3% of interactions happening face-to-face.

Despite the dominance of online banking, in-branch services remain pivotal for maintaining customer stickiness and strengthening relationships. Accenture’s survey reveals that customers prefer in-person meetings when opening new accounts or products. An in-person meeting remains the preferred option when opening new products— *27% of consumers said it was their first choice, ahead of mobile apps (22%) and websites (21%).

This finding demands banks re-evaluate where physical branches fit into the overall customer experience and reach a balance between hi-tech innovations and in-person interactions. By blending digital convenience with personal engagement, banks can offer the best of both worlds, providing customers with the flexibility of self-service while maintaining the human touch and expert guidance that branches offer.

Trend 4: Embrace partnerships with FinTechs

Moving forward, we’ll witness a significant shift in the dynamics between traditional banks and fintech players, shifting from competition to collaboration. Fintech companies, once perceived as threats, are now viewed as strategic collaborators, particularly as open banking regulations gain traction in the United States. 

Recent data indicates that leading banks have begun to recognize the value of partnering with fintech firms to drive growth and foster innovation. Through the secure sharing of customer data via open Application Programming Interfaces (APIs), the collaboration enables banks to leverage the expertise of fintech and technology partners to offer innovative products and services tailored to individual needs.

89% of banks believed partnerships with FinTechs as somewhat important.

According to a recent survey, *89% of banks consider partnerships with fintech to be somewhat important. Major players like American Express and JPMorgan Chase have already made significant moves in this direction through acquisitions. JPMorgan Chase has acquired multiple fintech startups, including Renovite, a payments startup. American Express also made a strategic purchase of Nipendo, an Israel-based company, to bolster its B2B payments network. *

By joining forces, banks can access innovative solutions, agile technologies, and disruptive business models offered by fintech companies. At the same time, fintech can leverage traditional banks’ established customer base and regulatory knowledge. This collaboration paves the way for traditional banks to enhance their capabilities and expand their market reach, creating a win-win situation that drives innovation, enhances customer experiences, and propels the industry forward in years to come.

Trend 5: Advanced Cybersecurity Measures

As the banking industry embraces digitization, the need for robust cybersecurity measures becomes increasingly important. Investing in advanced technologies like biometrics, encryption, and behavioral analytics becomes crucial to protect customer data and mitigate cyber threats. 

An EY / IIF survey finds that: 

*72% of global Chief Risk Officers (CROs) view cybersecurity as the top year-ahead risk, followed by credit and environment risks.

Major banks are actively investing in cybersecurity measures to stay ahead of evolving threats, including advanced biometric authentication to build trust, improve customer confidence, and protect against fraudulent activities. This year, J.P. Morgan will begin piloting biometrics-based payments with select retailers in the U.S., bringing speed and efficiency benefits to U.S. merchants and their customers*. According to Goode Intelligence, global biometric payments are expected to reach $5.8T and 3B users by 2026.*

Major cloud service providers are also playing a crucial role in enhancing cybersecurity, which provides access to advanced security controls. Incorporating a multi-cloud approach can also further enhance security and avoid the risk of a single point of failure. Integrating artificial intelligence (AI) and machine learning (ML) technologies also holds immense potential to revolutionize the field of cybersecurity. By leveraging AI and ML, banks can significantly improve the speed, accuracy, and efficiency of threat detection and response. 

As the banking industry continues to evolve, banks face enormous opportunities to drive innovation and deliver customer-centric experiences that will position themselves for success in 2024 and beyond. BORN XDS, with its rich expertise in the banking sector, is well-equipped to help banks navigate challenges and implement innovative solutions. Visit our website to learn more about our offerings and how we can assist your business in delivering exceptional customer experiences. Stay ahead of the competition and revolutionize your financial offerings today.

We Can Help and we’d love to show you how!

*Reference Index
1. https://newsroom.accenture.com/news/accenture-research-finds-four-in-five-banks-planning-to-or-already-migrating-mainframes-to-the-cloud-are-doing-so-quickly.htm
2.  https://www.thestack.technology/jpmorgan-cloud-migration-jamie-dimon/
3. https://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-americas-unique-approach-loyalty-rewards-translates-record
4. https://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-americas-unique-approach-loyalty-rewards-translates-record
5. https://www.thestack.technology/jpmorgan-cloud-migration-jamie-dimon/
6. https://www.accenture.com/us-en/insights/banking/consumer-study-banking-reignite-human-connections
7. https://www.accenture.com/us-en/insights/banking/top-10-trends-banking?c=acn_glb_eminence-retailleader_13349052&n=smc_1222#accordion-60340377fc-item-d343cbcb29
8. https://www.pymnts.com/news/banking/2023/us-open-banking-regulations-will-force-more-bank-fintech-collaboration/
9. https://www.jpmorgan.com/news/jp-morgan-to-acquire-renovite-technologies
10. https://nilsonreport.com/mention/1761/american-express/#:~:text=Commercial%20payments%20account%20for%2045,mostly%20driven%20by%20small%20businesses.
11. https://www.ey.com/en_gl/news/2023/01/cybersecurity-is-number-one-risk-for-global-banks-but-geopolitical-risk-tops-european-banks-concerns
12. https://www.jpmorgan.com/solutions/treasury-payments/insights/biometrics-checkout-us-pilot
13. https://www.jpmorgan.com/solutions/treasury-payments/insights/biometrics-checkout-us-pilot

In the rapidly evolving landscape of ecommerce, leveraging first-party data has become paramount in delivering exceptional customer experiences. BORN XDS, as the leading ecommerce agency, is proud to announce our new capacity and service designed to help brands succeed by harnessing the power of customer data platforms (CDPs).

With BORN’s award-winning global expertise and experience in UI/UX and digital experiences, our team of industry leaders knows how to unlock the full potential of real-time, unified data activation and omnichannel customer journeys for leading ecommerce sites.   

At BORN XDS, we understand the negative impact that isolated and “siloed” data can have on the growth and success of a brand’s ecommerce experience. By utilizing a robust CDP to break down these silos, businesses gain a competitive edge via better-targeted marketing spending, increased consumer engagement, and elevated customer lifetime value (LTV). BORN’s technology experts are here to guide you in evaluating, implementing, and actively managing the right CDP that aligns with your unique business needs.

How Can CDP Functions Benefit Your Business?  

Unified Customer Profile: BORN XDS seamlessly consolidates all offline, online, and third-party data sources into a single view. This holistic approach provides an in-depth understanding of your customer’s interactions with your brand, regardless of where those interactions take place – website, in-store, app, email, customer service, or elsewhere. By having a clear picture of your audience, you can tailor your strategies to meet their diverse and evolving needs more effectively.

Personalized Customer Journeys: Our CDP services enable you to create coordinated omnichannel experiences for your customers with unparalleled precision. Each touchpoint becomes an opportunity to deliver the right message, through the right channel, at the right time. Meeting customers where they are is paramount in delivering a tailored customer experience. With personalized customer journeys, you’ll enhance customer satisfaction, foster loyalty, and drive conversions.

Marketing Optimization: Customer Data Platforms also optimize the ‘refinement loop’ for your marketing and promotional tactics via techniques like A/B testing and ‘‘next best action’ modeling. As an added layer of analysis, BORN XDS’s integrations leverage research databases to further enrich your CDP’s data to gain deeper customer insights. With data-driven optimization, you can maximize the effectiveness of your marketing efforts, enhance ROI, and make better informed strategic decisions.

Why Choose BORN XDS?

1. End-to-End Expertise: As an award-winning and globally recognized ecommerce agency, our team of leading professionals brings a wealth of knowledge and experience. With a proven track record of helping global brands succeed in the digital realm, we will provide expert guidance throughout your customer experience (CX) transformation journey – we will actualize your new CX vision, from planning to activation of CDP and beyond.

2. Tailored Solutions: We understand that every business is unique. With our platform-agnostic approach, BORN XDS takes the time to evaluate and understand your business objectives, challenges, and customer landscape. With this understanding, we tailor our CDP service solutions to align with your specific functional and technological requirements, ensuring optimal outcomes and tangible results.

3. Seamless Support: Our implementation process ensures a hassle-free transition to a CDP infrastructure. We provide comprehensive service at every stage, from initial evaluation, and full activation to management. BORN XDS maintains the highest status level of partnership or certification with many of our platform partners, ensuring we always have direct contact for support. With BORN XDS by your side, you can focus on your core business while we handle the technical complexities.

BORN XDS is committed to helping you transform your brand’s customer experience through the power of unified data and omnichannel journey orchestration. Schedule a meeting with our data scientist, Spencer Frum, to discover the boundless opportunities and improvements that await your customer experience.

Schedule a meeting with our Data Scientist, Spencer Frum, who is excited to show the possibilities of truly unified data and omnichannel journey orchestration.

Schedule a meeting here

What can we expect in digital commerce over the next six months? What about in the next year, or ten? Generative AI, ChatGPT, the Metaverse, virtual reality, augmented reality, network effects, self-driving supply trucks, and delivery drones will all help to support and drive ecommerce revenue to new heights.

The biggest draw to ecommerce is that it allows people to shop, purchase, and receive anything they want anywhere in the world from the comfort of their homes with only a swipe or a click. Recent technological advances are changing the boundaries of what’s possible and increasing consumer demands and expectations in ecommerce experiences and services.

When creating ecommerce sites that deliver functionality, innovations, and stylization, Composable Commerce is rapidly becoming the go-to option for companies looking for long-term serviceability and flexibility in their tech stack.

We will examine why Composable Commerce is the best tech solution to future-proof ecommerce sites. We will explore some of the more significant problems Composable Commerce can solve and address common concerns of stakeholders. We will show you why BORN XDS is ideally positioned to partner in implementing your Composable Commerce solutions while providing perspective on what to expect when migrating systems.

In short, this report will provide visionary ecommerce leaders with the insights to fly higher and more nimbly than those weighed down by indecision and legacy systems.

In the fickle world of online commerce, the only thing you can ever truly rely on is change:

Change in how online brands are expected to interact with consumers, change in the technologies and trends that digital experiences are built on, change in how consumers behave, change in what customers want, and change in the expectations for businesses to react to these changes more and more quickly.

With the never-ending stream of new digital trends, services, and user needs and wants, today’s online retailers are almost expected to innovate their site’s technology in ‘real time’ to meet the demands of their users. In fact, one of the biggest challenges for online retailers today has nothing to do with driving sales or finding customers— it’s keeping up with new technology and industry standards.

2023 brought with it a slew of new technologies that are designed to help online businesses stay ahead of consumer demands and the competition. Smart businesses are regularly taking all these trends and technologies into account and continuously updating their digital presence.

To keep up, ask yourself these key questions:

• When was the last time you updated your ecommerce experience?
• Have you implemented any new technologies in the CX space (e.g., AI)?
• Do you offer a personalized / tailored experience?
• What are your competitors doing?

Reflecting on where you are today is the first step towards creating the innovative ecommerce experience that your consumers expect tomorrow.

Customer Experience and Human Experience

A recent PWC survey showed that 73% of consumers ranked customer experiences (CX) and digital ‘human experiences’ (HX) as two of the most important factors in their purchasing decisions – only price and product quality were ranked higher. CX and HX work together to engage with consumers at every touchpoint with the brand or service. Today, consumers expect the best of both worlds: a human-centered experience that makes every interaction seamless, enjoyable, and meaningful. Meeting this demand can drive up business. According to a recent Forbes study,

• 43% of consumers would pay more for better convenience.
• 42% would pay more for a friendly, welcoming online experience.
• 40% of consumers would likely pay a 16% price premium for a great customer experience.

Excellent CX and HX helps foster not only a better relationship between company and consumer, but also encourages more engagement and higher sales.

Artificial Intelligence (AI) and Machine Learning (ML)

To stay on top of CX and HX expectations in 2023, top brands are focusing on personalization, customization, and analytic-driven digital experiences – often supported by Artificial Intelligence (AI). According to Forbes research, 83% of surveyed businesses said implementing AI solutions is a strategic priority for their business. AI-driven tools, such as chatbots, content creators, natural language processors, robotic process automations, and rule-based expert systems, are being implemented to deliver the very best and latest in the user experiences consumers have come to expect.

While we know that AI machine learning is the next ‘big thing’ to change the digital world, this technology requires very high-quality data and analytics to work. Reworking your ecommerce platform’s data points to better serve AI/ML search engines will help your site get ahead in the next level of SEO. ‘Data labeling’ and ‘ranking algorithms’ needs to be a key focus in your digital strategy to get the very most from AI/ML.

Conversational UI & Chatbots

Conversational UI, such as voice interfaces and chatbots, is a fast and convenient way to fill the human interaction gap common to many online experiences. With the advent of AI-powered language processing, today’s chatbots can seamlessly emulate natural human conversation. From purchasing to technical assistance, dedicated plugins for your website give customers more personal, intimate and “human” support throughout their eCommerce experience.

Dynamic Pricing and Price Negotiation

Research showed that in 2021, 17% of US and European ecommerce companies planned on implementing dynamic pricing — while 21% of ecommerce businesses surveyed were already using dynamic pricing. Dynamic pricing lets vendors adjust their product and service pricing to better meet consumer demand and market needs in ‘real time’.

Augmented Reality (AR)

Augmented reality (AR) is one manifestation of visual commerce that’s becoming increasingly popular; global retailer AR spending is expected to surpass $4B in 2023. Integrating AR functionality into ecommerce websites can create some of the most immersive shopping experiences available to online customers.

Social Commerce

It should come as no surprise that social media plays a huge role in driving today’s ecommerce sales. Social media platforms are rapidly becoming the preferred search tool for younger generations. According to ‘The Future of Commerce’ Gen Z consumers use TikTok more than Google to find products. Top companies are reevaluating their social media strategies and the platforms they use to reach and engage with new customers.

Many of the best-in-class ecommerce platforms, such as Adobe and Shopify’s new ‘Commerce Components’, are taking their cues from this rapidly changing ecosystem of digital experiences. In developing bespoke, headless, composable tech-stacks, they are helping digital enterprise retail shops stay ahead of consumer expectations and demands. If you’re not already ahead of these trends— you’re already behind.  

“Going green” is not a new trend. In today’s market, sustainability is table stakes.

Consumers can choose from a myriad of sustainable, competitively priced, quality products – which often viewed as more desirable. In this post-pandemic world, a growing consumer base, especially Gen Z, expect businesses to participate in the world even more actively and responsibly. In a recent Nielsen study, three-quarters of Gen Z consumers stated that sustainability is more important to them than brand names and 75% of Millennials are eco-conscious to the point of changing their buying habits to favor environmentally-friendly products.

For businesses, this means adopting policies and practices that benefit not only the environment, but society as well.

Brands can stand out from the sea of “green” by becoming leaders in social impact, whether that is sustainability, equity, or fair employment practices. But for their accountability practices to resonate with consumers, brands need to talk the talk and walk the walk. They must take meaningful action to back up their messaging, or else the perception of “greenwashing” or “virtue-signaling” can drive significant backlash from consumers. At the same time, companies who are making great strides in their purpose-driven work won’t benefit from consumer engagement if they don’t tell their story.

Help the world, and your bottom line

There are financial incentives to adopting sustainable and socially responsible practices. Studies show that sustainable practices:

• lower the cost of capital,
• result in better operational performance, and
• drive positive stock price performance

Purpose-driven practices can also drive innovation. Redesigning products or services to meet environmental standards or social needs creates new business opportunities. In addition, greater corporate responsibility improves morale and loyalty among employees. According to a study cited in Harvard Business Review, average turnover rates at purpose-driven businesses may be reduced by 25%-50%.

A major positive outcome of adopting sustainable and socially responsible practices is the competitive edge that comes with it. Studies show that, when cost and quality are equal, consumers prefer companies with clear purpose and ethical values. According to a global survey by Accenture Strategy, 62% of consumers are more attracted to brands with high ethical values and who are authentic in their purpose-driven work. This attraction translates into sales. A study conducted by Porter Novelli revealed that, holding cost and quality equal, 71% of consumers would rather purchase from a purpose-drive company.

Engage with responsibility

Consumer preference for brands with sustainable and ethical practices may be driven by an increased sense of responsibility. Studies show that nearly two-thirds of consumers across six international markets believe they “have a responsibility to purchase products that are good for the environment and society.”

But consumers feel that businesses have some responsibility, too. A 2020 ICF study found that 85% of consumers “want businesses to leverage their influence to raise awareness of sustainability issues.”A similar study from Accenture Strategy found this desire to be more generalized. 62% of consumers want businesses to “take a stand” on current issues, ranging from sustainability to transparency and fair employment practices. 

Consumers’ interest in businesses taking a stand is showing up in their actions, from commentary on social media to participating in boycotts. Younger generations are increasingly more invested, more likely to praise socially responsible and sustainable brands, and critique brands that are not. As time goes on, these interactions will accelerate.

Tell your story

Social activism is a key part of building an effective brand story. Brand storytelling is the thread that ties every touchpoint in the consumer experience together. Through storytelling, brand values become more deeply embedded in consumer minds, attitudes, and ultimately, their decisions. In other words, purpose-driven brand stories are attractive and engaging.

For example, TATA Consumer, one of India’s leading food & beverage companies, tells their story through a lens of environmental and social activism. Their mission is clear: “At TATA Consumer, we stand For Better products, nutrition, communities, and planet.” TATA approached BORN to strengthen their online presence across multiple markets. BORN worked with TATA to refresh their brand identity. To do this, they amplified brand storytelling throughout the newly developed site, re-aligning it with TATA’s “For Better” philosophy. TATA’s successes – from ranking as the number one food brand in India’s Brand Equity Survey, to becoming the first industrial township to meet international environmental standards – are highlighted on the homepage and in a primary section of the site. Their brand story integrates not only the importance of their mission, but the tangible impact TATA has on the world.

Be honest

Brand storytelling is more than the brand’s voice, heritage, and narrative. It must be a transparent conversation about your brand’s efforts to put their values into practice. Above all, consumers want companies to be honest. Studies show that corporate transparency may be even more important than corporate actions. Two-thirds of consumers think transparency is one of a brand’s most attractive qualities and strongly influences where they buy.

An authentic story helps consumers understand where your company has come from and where you’re going. This means being open about successes as well as failures. Consumers understand that implementing sustainable and socially responsible practices is difficult, complex, and an ongoing journey.  An honest conversation about that journey, with its ups and downs, is not only relatable, but also fosters a more authentic relationship with consumers.

Acknowledging the ways in which a company isn’t perfect builds trust. Studies show that, when a company leads with purpose, consumers are 72% more likely to forgive that company if it makes a misstep.

A strong, purpose-driven brand story can be found threaded throughout the digital presence of Reformation, an American clothing retailer. This retailer has a strong following of loyal consumers who believe in their mission statement: “We have big goals, like reducing more emissions than we make, making all our stuff from recyclable materials and trying to save the Earth while looking damn good doing it.” Reformation proves that the latest trends in fashion can go hand-in-hand with sustainability and green initiatives. They design stylish, vintage-inspired women’s clothes using only recycled, regenerative, or renewable materials in their clothes. Reformation also carefully tracks consumer data and feedback to produce only what they know they can sell in order to prevent “textile” waste. During their manufacturing they also take into account their energy consumption, water waste, greenhouse emissions and human and eco toxicity.

We’re all in this together

Sustainability and social responsibility cannot be accomplished in a vacuum. Built on honesty and trust, the relationship between brands and their consumers can help drive greater impact. Consumers are an important part of a brand’s ecosystem.

As consumers push brands to be more responsible and transparent, brands can work with their consumers to better understand how they can do so. Brands should be asking questions like:

• What do our consumers care about?
• What resonates with our consumers?
• How can our brand work with consumers to innovate, educate, and make an impact?

Collaboration between stakeholders, employees and consumers can help companies discover shared values across the ecosystem and identify where the company can make a difference.

Combining research, service design, and brand storytelling, XDS design agencies BORN and  Mad*Pow work together to help organizations have meaningful conversations with their audiences, drive change within their organizations, and share their stories with the world.

Being sustainable, socially responsible, and authentic is an ongoing journey. Changing the world is hard. We’re here to support the work at every step of the way.

Steeped in tradition, true luxury brands are admired for their dedication to incomparable quality and craftsmanship. They are leaders in white-glove customer service and bespoke shopping experiences. But to rise above the noise of today’s digital marketplace, they need to pair their rich heritage with the latest in digital innovation.      

According to Statista, an estimated 25% of global luxury goods sales will be made online by 2025. Today’s brands must keep up with the technologies and trends that customers have come to expect, from mobile-first web design to a frictionless checkout process. For high-quality – and high-priced – luxury goods, customers expect even more. Luxury brands must differentiate themselves by transforming the highly curated, ‘white-glove’ experience of their brick-and-mortar stores into immersive high-tech online brand experiences. 

Stewards of luxury brands need to understand the three core levels of ecommerce: user experience-driven eCommerce features, end-to-end bespoke customer experience, and brand storytelling.

These levels build on each other to create recognition, drive online sales, and provide the premium experience customers come back for again and again. By taking advantage of the three levels, innovative luxury brands can become leaders in the digital marketplace. The brands that rise above will be the ones that understand that the digital experience is part of the luxury. 

User experience-driven ecommerce features

Robust technology and user-friendly interfaces are the foundation of excellent ecommerce. For customers exploring and purchasing luxury goods, the experience must be seamless. Slow site speed and loading times, disjointed checkout flows, and awkward personalization can frustrate customers. Trust plummets and so do conversion rates. When implemented well, ecommerce platforms create an effortless and meaningful shopping experience. 

The best platforms include flexible and robust features. They enable seamless integration with analytics, data management, and the latest third-party tools – including future-forward technologies such as metaverse connectivity and virtual reality experiences. Coupled with highly customizable personalization features, a carefully designed ecommerce platform can provide the end-to-end white-glove service that complements the in-store luxury experience while seamlessly scaling to support growing product lines and global audiences.

The creation of high-quality online luxury experiences has helped to refine and advance the luxury brand industry online. For example, Fraser Hart is one of the UK’s leading jewelers, specializing in bespoke jewelry and unique, individualized ring customization services since 1936. They needed to reimagine their online digital presence, and in doing so, address several technical challenges: improving site speed and reporting processes; supporting their growing global audience; and capturing their unique product catalog across all devices.

Fraser Hart worked with BORN Group to determine the best digital solution and deliver a world-class customer experience across all Fraser Hart’s products and services. The new site enables a high-quality, unified digital experience across devices. It includes best-of-breed localization features that empower shoppers regardless of their region. Strengthening the connection between their digital and physical presence, the new platform also helps to centralize stock-level management between stores and improve internal merchandising. The design overhaul integrated many unique features of the platform to bring Fraser Hart’s mission of tailoring jewelry to the individual to life. The new design and underlying technology empower a level of personalization and merchandising that the brand had not seen before. Coupling BORN’s design prowess with an upgraded eCommerce platform, Fraser Hart’s new digital presence enabled its audience to experience the luxury of the brand outside of the store, converting and delighting more customers in this new digital space.

End-to-end bespoke customer experience

A strong digital platform enables a strong customer experience. For luxury brands, the customer experience is part of the luxury. Customers who expect white-glove, individualized customer service in physical stores expect the same in the digital space. From the customer’s first glance at the website to the post-purchase emails they receive, every interaction must delight and resonate with them. Customers expect that the messaging and services will cater to their needs and wants. 

A customer-centric, high-quality, end-to-end customer experience relies on a deep understanding of the audience. User data, research, and emotional intelligence — leveraged to evaluate, understand, and influence emotions — can help. This consumer knowledge helps brands deliver the right message, at the right time, through the appropriate channel. Brands can approach their audience in a way that resonates on a deeper level. This is particularly important for luxury brands, where emotions play a key role in purchasing high-quality, high-cost, or bespoke luxury goods. 

Engaging with an emotionally intelligent brand tailored to fit the customer’s needs makes them feel like they’re part of the experience, not just part of a transaction. For generations, the oldest clothing retailer in the United States, Brooks Brothers has been a timeless choice for shirting, suiting, and more. As the breadth and depth of their offerings evolved, they sought out ways for customers to see them as “far more than a store.” BORN overhauled Brooks Brothers’ ecommerce site, redesigning and customizing content to educate, guide, and engage users in the right place at the right time in the customer journey. Part of this work involved customizing the product detail page with “buy online, pick-up in-store” capabilities. This helped to create a more seamless experience between the digital and physical paths in the customer journey. For the shirt-buying experience, the team redesigned the product listing page with filters to direct customers to “their” perfect shirt, amplifying the individualized touchpoints throughout that purchasing flow. In addition, the team also focused on the loyalty rewards and redemption pages. The redesign aimed to inspire excitement, loyalty and repurchasing. BORN’s redesign of key touchpoints in the end-to-end customer experience helped to strengthen customer relationships with the brand and to encourage their return to the Brooks Brothers experience.  

Brand storytelling

Storytelling is the thread that ties the customer experience together. Marketing through storytelling is a powerful strategy to help luxury brands stand out in the flood of online retailers. With their heritage, history, and strong values, luxury brands have strong stories to tell. The key is to tell the brand story throughout the customer’s digital journey, by infusing every touchpoint with the brand’s voice. Successful brand storytelling can be used to build a community of customers who share similar values. Brand storytelling is a way to demonstrate values in an authentic way. Today, people prefer companies that have strong values that align with their own. Studies show that, if cost and quality are equal, more than 70% of customers prefer to buy from a purpose-driven company. The social issues that a luxury brand supports (such as sustainability and ethical resourcing) amplifies its values and brand story. While product and service quality are paramount to a luxury goods brand, it is their story that resonates with its audiences— it builds deep connections, encourages loyalty, and ultimately drives ongoing engagement.

Storytelling is a valuable part of a luxury brand’s digital presence – and the foundation of BORN’s approach to luxury brand design. Since 1860, Frette has produced linens and home furnishings of unparalleled quality, and this rich heritage forms the base of their story. Frette recently approached BORN for a complete site redesign and re-platform. BORN worked with Frette to gain a deep understanding of the nuances of the brand and its product offerings. Leveraging this knowledge with their expertise in the luxury space, BORN infused Frette’s brand essence and heritage throughout the site re-design. The new design integrated content-rich stories featuring designers and inspiring interiors, highlighting the brand’s values alongside customer-centric messaging. Updated content was designed to educate consumers on Frette’s craftmanship, product quality, ongoing innovations, and time-tested partnerships. The finished web design was a Platinum Winner at the dotCOMM Awards. Integrating brand storytelling throughout the end-to-end customer experience, BORN helped to position Frette as the global authority in fine handcrafted linens.

In the digital world of luxury brands, every digital experience touchpoint should bring surprise, delight, and a reaffirmation of the renowned and timeless quality of the brand. BORN’s digital-first approach combined with the richness of luxury brand storytelling helps bring the in-store experience online, seamlessly. With customized ecommerce implementations, end-to-end customer experience design, and brand storytelling, BORN helps luxury brands deliver luxurious digital experiences.  

Shopping is a highly emotional experience. Studies reveal that emotional impulses drive up to 95% of purchasing decisions.¹ The products and services we buy influence how we feel. As society emerges from the pandemic and online shopping continues to flourish, consumers desire a personalized shopping experience where they feel understood. In response, retailers must develop emotional intelligence to attract and retain customers. 

Emotional Intelligence Drives Sales

Emotional intelligence refers to evaluating, understanding, and controlling emotions. There is an immense payoff when companies connect with customers’ emotions. Customers who like the companies they do business with are more likely to continue to buy. Additionally, 78% of loyal customers recommend favorite brands and products to friends and family.² Therefore, retailers must develop emotional intelligence to create a retail experience that is in tune with the feelings of their customers. Harnessing the power of emotional intelligence gives retailers the ability to target customers at the right time, through the appropriate channel, and approach them in a way that resonates on a deeper level. 

Customer Experience is the New Battlefield

In today’s highly competitive market, conventional business wisdom is not enough to succeed. With countless online retail sites, it is increasingly difficult for brands to differentiate themselves. Creating an emotionally intelligent brand with an optimized website makes customers feel like part of the experience, not just part of a transaction. 

For customers, it is critical to feel prioritized by the brands they consume. Research shows that 86% of buyers will pay more for a great customer experience.³ This sentiment has increased the need for brands to take their marketing and websites to a new level by incorporating empathy and emotional intelligence into digital experiences and customer communications. 

Emotional Motivators

As eCommerce companies craft their websites, they must remember that customer purchases are inherently driven by emotional responses. A study by the Harvard Business Review studied customers’ interactions with hundreds of brands across all categories. It concluded that more than three hundred “emotional motivators” influence consumer behavior.⁴ Learning which emotional motivators lead to sales help brands strategically target the feelings that motivate customers to make purchases. These motivators provide retailers with valuable insights that can be applied when designing and improving a company’s products, services, and retail site. 

Broaden Customer Reach through Digital Channels

Brands must be accessible to their customers on the internet and through their smart devices in this digital age. Tech companies like Amazon, which offer a hassle-free experience and expedited shipping, have encouraged some consumers to skip in-person shopping altogether. To compete with the convenience of retail giants like Amazon, Retailers must focus their attention on developing emotionally intelligent websites to win over shoppers and drive sales. Data shows that 86% of customers with high emotional engagement want access to a brand through numerous channels.⁵ Brands must become both emotionally and digitally intelligent so customers return for the experience as well as the product. 

Multiple Payment Options Increase Sales

For a business to succeed, it is critical to offer easy and convenient ways for customers to pay. Providing customers with multiple payment options encourages sales. While credit cards are still the dominant online payment form, accepting alternative payment methods such as PayPal, debit cards, and cryptocurrencies maximizes sales. According to a study by PPRO 42% of consumers in the U.S. say they would not follow through with a purchase if their preferred payment method is not available.⁶ Retailers can also offer deferred payment through Buy now, pay later platforms that make purchases more achievable for some customers. Providing as many choices as possible allows customers to choose the way that works best for their needs at the time. 

Building Trust

There is a significant connection between trust and closing a sale. To build trust, retailers should include extensive contact information on their website, provide chatbots, FAQs, and call center phone numbers to answer customer questions, and display customer reviews prominently. Online consumers rely on reviews when making purchasing decisions. Studies show that 93% of customers read reviews before buying a product.⁷ Additionally, retailers should promise shoppers a safe and secure checkout that protects them from fraud. 

Incentive Programs

Customer loyalty is essential to growing a business. Repeat customers are extremely valuable to brands. Research shows that 70% of emotionally connected customers spend twice the amount when they are loyal to a brand.⁶ Retailers operating in markets with multiple competitors can set themselves apart from the competition by developing loyalty programs. Creating a customer loyalty program helps incentivize customers to become repeat customers by providing rewards for making repeated purchases. Discounts, rebates, rewards, free merchandise, and coupons motivate customers to spend more with brands and reinforce the consumer/brand connection. Focusing on loyalty programs helps brands align themselves with the segment of their customer base spending the most and deepens the relationship. 

Consumers are looking for digital retail stores to go the extra mile and cater to their needs. Approaching the customer experience with emotional intelligence is necessary to drive sales and win repeat customers. Personalizing sales techniques to fit customer needs, being transparent and helpful, and creating incentives to encourage customers to be part of a digital community will drive sales and lead to future purchases. Building websites that connect with the emotions of their customers will lead to a significant return on investment. 

Footnotes:

1)https://www.idslogic.com/blog/2017/11/using-emotional-intelligence-to-power-your-ecommerce-website.html

2)https://www.semrush.com/blog/word-of-mouth-stats/

3) https://www.forbes.com/sites/danielnewman/2020/06/23/4-actionable-customer-experience-statistics-for-2020/?sh=25c72d391a84

4)https://hbr.org/2015/11/the-new-science-of-customer-emotions

5) https://cxindex.com/company/blog/emotional-intelligence-the-key-ingredient-to-great-customer-experience/

6) https://www.volusion.com/blog/why-accepting-multiple-payment-methods-is-vital-for-ecommerce-success/

7) https://www.shopify.com/blog/15359677-why-online-store-owners-should-embrace-online-reviews