1.
HOW HAS THE CONSUMER MARKET CHANGED DURING THE PANDEMIC?
During the pandemic, Italians' expenditure on food has gone up by 64% (followed by a 35% increase in expenditure on entertainment & media and a 27% increase in expenditure on food delivery or click-and-collect). By contrast, clothing has been the category most hit by the pandemic; 58% of consumers have reduced their budget in this area.
Inevitably, there have also been changes in the way people purchase goods and services. The increase in online sales has been across the board and has also involved those categories of people whose preference or exclusive practice, for various reasons, is to shop in-person. The companies which have benefitted from this change are those which have been able to prove themselves to be more reliable, and which have been in a position to facilitate customers accessing and purchasing their products. In large part their success can be traced to the quality of their product range, management of user experience and speed of delivery. Marketing has also had a role to play, but, during this time, digital channels have been taken by storm, not only for secondary goods, such also for primary necessities, ranging from food to sanitary products.
During the pandemic, Italians' expenditure on food has gone up by 64% (followed by a 35% increase in expenditure on entertainment & media and a 27% increase in expenditure on food delivery or click-and-collect). By contrast, clothing has been the category most hit by the pandemic; 58% of consumers have reduced their budget in this area.
Inevitably, there have also been changes in the way people purchase goods and services. The increase in online sales has been across the board and has also involved those categories of people whose preference or exclusive practice, for various reasons, is to shop in-person. The companies which have benefitted from this change are those which have been able to prove themselves to be more reliable, and which have been in a position to facilitate customers accessing and purchasing their products. In large part their success can be traced to the quality of their product range, management of user experience and speed of delivery. Marketing has also had a role to play, but, during this time, digital channels have been taken by storm, not only for secondary goods, such also for primary necessities, ranging from food to sanitary products.
2.
HOW HAVE ENABLING TECHNOLOGIES HELPED COMPANIES TO ADDRESS THE CRITICAL ISSUES GENERATED BY THE PANDEMIC?
Covid has led, on a massive scale, to the use of digital channels for most activities - whether personal or professional. It has become necessary to manage, in detail, the multi-channel side of things, in order to allow everyone to access services seamlessly, independent of the device being used. What have become differentiators are research and design of the user interface and user experience, which need to take account of a lot of variables connected with the type of service, the user target and the objectives set. The growing need for online sales has led to a rapid increase in demand for e-commerce tools and for genuine marketplaces, which, until a few months ago, were only for some categories of goods and for users representing an intermediate age profile. The success, in recent years, of players such as Amazon or Alibaba, had not impacted all operational categories, and this is now having to be addressed as a matter of urgency. For this type of platform, and in general for customer services, an increase in interaction has led to the automation of many of the phases of contact with the end user, above all in the area of customer care: chatbots are now being replaced with IVR (Interactive Voice Response), and human operators using technologies such as Artificial Intelligence (AI) and machine learning.
The new sales services, along with the necessity of ensuring social distancing, have sped up development of virtual reality and immersive reality applications, which, previously, made it possible to integrate sensory experiences, and are now, in most cases, replacing everything.
Covid has led, on a massive scale, to the use of digital channels for most activities - whether personal or professional. It has become necessary to manage, in detail, the multi-channel side of things, in order to allow everyone to access services seamlessly, independent of the device being used. What have become differentiators are research and design of the user interface and user experience, which need to take account of a lot of variables connected with the type of service, the user target and the objectives set. The growing need for online sales has led to a rapid increase in demand for e-commerce tools and for genuine marketplaces, which, until a few months ago, were only for some categories of goods and for users representing an intermediate age profile. The success, in recent years, of players such as Amazon or Alibaba, had not impacted all operational categories, and this is now having to be addressed as a matter of urgency. For this type of platform, and in general for customer services, an increase in interaction has led to the automation of many of the phases of contact with the end user, above all in the area of customer care: chatbots are now being replaced with IVR (Interactive Voice Response), and human operators using technologies such as Artificial Intelligence (AI) and machine learning.
The new sales services, along with the necessity of ensuring social distancing, have sped up development of virtual reality and immersive reality applications, which, previously, made it possible to integrate sensory experiences, and are now, in most cases, replacing everything.
3.
WHAT ARE THE DANGERS OF THIS TOTAL AND RAPID DIGITALISATION?
Acceleration of digitalisation across the board has delivered some clear advantages in terms of making services efficient and accessible, but has also brought risks connected with a head-spinning increase in data production online. Digital identity and authentication provide the basis for appropriate delivery and consumption of online services. In both private and public, it is very important to carefully manage the phases of user identification for services which use personal, sensitive and economic data, in compliance with applicable standards in terms of privacy and the European GDPR regulation.
All areas are now being addressed and managed online, and it is fundamental to always keep a focus on the issue of information security, which should guarantee inviolability of systems and ensure access is traceable. Each system must comply with international standards and be subject to periodic checks.
One way of guaranteeing maximum efficiency of the process is to rely on players who are experts for each individual phase. The consumer market is very varied and it is essential to act in such a way that users are informed and can access services in an informed manner.
Acceleration of digitalisation across the board has delivered some clear advantages in terms of making services efficient and accessible, but has also brought risks connected with a head-spinning increase in data production online. Digital identity and authentication provide the basis for appropriate delivery and consumption of online services. In both private and public, it is very important to carefully manage the phases of user identification for services which use personal, sensitive and economic data, in compliance with applicable standards in terms of privacy and the European GDPR regulation.
All areas are now being addressed and managed online, and it is fundamental to always keep a focus on the issue of information security, which should guarantee inviolability of systems and ensure access is traceable. Each system must comply with international standards and be subject to periodic checks.
One way of guaranteeing maximum efficiency of the process is to rely on players who are experts for each individual phase. The consumer market is very varied and it is essential to act in such a way that users are informed and can access services in an informed manner.
4.
HOW WILL THE CONSUMER MARKET EVOLVE IN TERMS OF THE CREATION OF THE NEW NORMAL?
The pandemic has accelerated processes which we at Engineering had already embarked upon in a decisive way.
Building the New Normal needs to start with experiences from the crisis period, and these must be incorporated into a system. We will continue to make use of the Digital Workplace concept, and to rely on collaboration tools, especially now that consumers have learnt to use online services, benefitting from them.
There will be less down time due to relocations, waiting and unforeseen circumstances. Companies will have to take these factors into account, investing in their own digital transformation; never again will they be able to do without innovation, technology and training. Consumers are pursuing new pathways and a fundamental consideration will be the ability to follow changes to build on services.
The pandemic has accelerated processes which we at Engineering had already embarked upon in a decisive way.
Building the New Normal needs to start with experiences from the crisis period, and these must be incorporated into a system. We will continue to make use of the Digital Workplace concept, and to rely on collaboration tools, especially now that consumers have learnt to use online services, benefitting from them.
There will be less down time due to relocations, waiting and unforeseen circumstances. Companies will have to take these factors into account, investing in their own digital transformation; never again will they be able to do without innovation, technology and training. Consumers are pursuing new pathways and a fundamental consideration will be the ability to follow changes to build on services.
5.
HOW CAN ENGINEERING SUPPORT AND ASSIST ITS OWN CLIENTS TO CREATE THE RIGHT OFFER FOR THEIR OWN USERS?
At Engineering we have always relied a lot on research and technological innovation. Thanks to our knowledge of markets and our technological competence, which is always being updated, we are supporting our stakeholders on their journey of digital transformation.
In the consumer services world, the value of companies is closely tied to their capacity to map out the customer journey, and to assist their customers as they enthusiastically make that journey, leading to a sale.
Once customer behaviours, vis-a-vis traditional touchpoints, have been identified, quantified and understood, we design the technological solutions - digital and non-digital - best able to meet demands and expectations. Design Thinking, or the discipline of circular decision-making, is a methodology whereby we focus on the individual to create, around them, the experience which will lead them to value positively the product, the service and its price, Design Thinking is not a business solution, but rather a tool for creating value for the company's products, and which can also ensure support for continuity of thebusiness.
Engineering boasts major areas of expertise at a consultancy level: we excel in terms of system integration, in designing solutions, in creation of user experience and in multi-channel management.
At Engineering we have always relied a lot on research and technological innovation. Thanks to our knowledge of markets and our technological competence, which is always being updated, we are supporting our stakeholders on their journey of digital transformation.
In the consumer services world, the value of companies is closely tied to their capacity to map out the customer journey, and to assist their customers as they enthusiastically make that journey, leading to a sale.
Once customer behaviours, vis-a-vis traditional touchpoints, have been identified, quantified and understood, we design the technological solutions - digital and non-digital - best able to meet demands and expectations. Design Thinking, or the discipline of circular decision-making, is a methodology whereby we focus on the individual to create, around them, the experience which will lead them to value positively the product, the service and its price, Design Thinking is not a business solution, but rather a tool for creating value for the company's products, and which can also ensure support for continuity of thebusiness.
Engineering boasts major areas of expertise at a consultancy level: we excel in terms of system integration, in designing solutions, in creation of user experience and in multi-channel management.
Gianluca Polegri
Gianluca has been in the Digital Services sector for over 20 years and is an expert in the Telco & Media market.
In Engineering since 2008 he has been Director of Digital Solutions, a Competence Center that deals with multi-channel and multimedia solutions mainly for the Consumer market and the management of the Digital Experience for Customers.
In Engineering since 2008 he has been Director of Digital Solutions, a Competence Center that deals with multi-channel and multimedia solutions mainly for the Consumer market and the management of the Digital Experience for Customers.
Contact us
marketing@eng.it
Tel. (+39) 06-87591