Shopper Experience
19 May 2023
Zendesk rolls out Conversational Commerce with Meta, Shopify
The CX company is expanding tools to reach shoppers within a message.
Photo by Jason Leung on Unsplash
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Zendesk is rolling out new conversational tools for consumer brands and retailers, while deepening partnerships with key commerce platforms including Meta and Shopify.
The customer experience software company is rolling out a suite of tools called Conversational Commerce. They include the following:
Sales personalization: These tools allow agents to interact with abandoned carts, support active carts and inform customers when items are available in close proximity so they can complete purchases. Additional tools allow sharing of feature promotions.
Sales acceleration: This set of features is aimed at increasing overall order value. Agents can access a given shopper’s purchase history, merchandise preferences and browsing journey, and in turn provide recommendations for cross-sell and upsell.
Data at scale: Through more than 1,400 pre-built apps, businesses can use AI to automate conversions and recommendations. Additional integrations unify SKU, inventory and location data for product tracking, and connect disparate systems in order to provide a complete view of the customer.
Additionally, Zendesk is expanding integrations with a pair of key tech platforms for brands and retailers:
WhatsApp: An integration will enable businesses to create a buying experience within a message.
Shopify: Agents can incorporate product catalogs, checkout processes and promotions into their CX management approaches through Shopify’s platform.
Foot Locker is among the early retailers that are tapping these features, according to Zendesk.
Conversational experiences were among three areas that Zendesk CTO Adrian McDermott identified as key advances in customer experience in a conversation with The Current earlier this year.
According to the Zendesk 2023 CX Trends Report, 70% of customers expect conversational experiences when interacting with brands. Additionally, the survey found that 70% of consumers purchase more from brands that incorporate these capabilities.
“Whether it's Facebook Messenger, it's embedded messaging in your application, it's WhatsApp or it’s Google Business messaging, the messaging window has become the new browser window,” McDermott told The Current at the NRF Big Show in January.
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Marketing
09 June 2023
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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