Quality Progress - March 2017 - 20


Seeking innovation through
tools, techniques and approaches
Innovation
Imperative

state," which reveals explanatory text
above an item. Furniture store Structube faces customers who need structural
detail, and to do this, it provides a series
of video episodes on the people who build
the products. After video, the next step is
virtual reality.

Virtual reality

Augmented reality technology gives
customers a 3-D shopping experience
by using equipment such as the Microsoft HoloLens, Sony SmartEyeglass and
Oculus Rift.11 Memory mirror technologies let customers try on virtual outfits,12
and iPads in fitting rooms allow shoppers
to ask for help, read reviews and see what
sizes are in stock.
A smart dressing room senses the
profile with a shopper's phone and recognizes the items that were tried, purchased
and left behind. Furniture companies can
use this type of technology to display
products in a shopper's home. For example, the MACK furniture view room uses
hovers to reveal product information.
TryItOn enables people to virtually try on
watches and sunglasses.

Engagement

Consumers enjoy using their creativity,
especially in the apparel and accessory
sector. Social co-creation is most commonly experienced in T-shirt design, and
many companies are in the game.13
Voice is also a game changer-enabling
less text-based searching and more
live-chat helps customers make decisions
faster. Chatbot has become a digital
disruption. Advances have made using
the technology more like interacting with
a good friend. U.K. retailer Currys has
a microphone icon in its search box for
voice-activated searches. The WeChat
app has 700 million active users every
month, and it allows them to hail a taxi,
order takeout or buy movie tickets. More
than 10 million businesses in China have
WeChat accounts.14
After an online shopper has made a

20 QP

March 2017 ❘ qualityprogress.com

purchase, they are likely to buy again.
Many people like seeing products that
are recommended, which is why Amazon
shows previous shoppers their browsing
history.
Consumer shopping behavior is becoming more complex with free movement
between channels becoming more common. Ecommerce jargon has developed
with practices such as research online,
purchase online (ROPO); buy online,
return in-store (BORIS); and browse
in-store on mobile, buy online (BIMBO).15
This is creating a new set of challenges in
areas such as inventory management.
Stock and order management optimization will pose a greater challenge
with products stored in a wider variety
of locations. Organizations must answer,
"What is the optimum range size without
draining resources?"

The cart

More than 70% of online shopping carts
are abandoned because of shipping fees,
website time-outs and payment options.
Nobody likes signing up for an account
so Ipsy, for example, removes the pain by
turning it into a beauty quiz.16 Toobydoo
customers checkout as guests, which
saves them from having to create a username and password, and Apple just asks
for a zip code and you're done.17
Shipping costs account for more than
40% of abandoned carts, so follow-up
emails after cart abandonment are often
used to generate sales. Customers want
to know the number of steps required for
checkout, easy item removal, single-page
checkout and the ability to print purchased content in a receipt.

Drone and droid shipping

Free shipping is the most important factor
in online business, and everyone looks
for the cheapest shipping available. Free
delivery over a certain order value is the
next-best option.18 Half of online retailers
in the UK offer free deliveries as standard.19 Amazon offers two-day delivery,

but you sometimes discover that the offer
seems to change after you get into the
transaction.
The current benchmark is same-day
or next-day delivery. A "pickup in store"
option is another method people like,
based on their locations. Nearly all shoppers consider delivery tracking features
as essential. One- or two-hour delivery
will become the norm by using drone and
droid delivery.
Drone delivery speeds up delivery, but
government regulations must be established. It operates at distances of 10 to 15
miles and carries packages that weigh up
to five pounds.
Flirtey, which delivers medical supplies,
had the first U.S. Federal Aviation Administration-approved doorstep delivery
drone. Australia Post is testing drones
and the United States and Europe have
built airports specifically for drones. These
developments will enable same-day or
even same-hour shipping. 20
Droid delivery has received less attention than drones. A droid has six wheels
and travels on sidewalks at about four
miles per hour. It weighs between 20 and
30 pounds, and can transport about 20
pounds of goods in 30 minutes.
Here's more of what's cool about
droids: They climbs stairs, have cameras
to stream live video and a microphone
for communication with customers. The
attraction is that 30% of transportation
costs are during the last mile, and it avoids
traffic and parking. 21

Data and security

Consumer data are being collected in
huge amounts and organizations target
users with upsells, promotions and
cross-sells based on past purchases.
But many people think hyper-targeted
"perfect" products take the thrill out of
shopping. 22
Metrics will be created around consumers by using data to build personal profiles
of them, and individual consumer value
will become the central metric. 23 Canadian


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Table of Contents for the Digital Edition of Quality Progress - March 2017

Seen and Heard
Expert Answers
Progress Report
Mr. Pareto Head
Field Notes
Innovation Imperative
Hard Wired
Propel Forward
Life After Disruption
Work Smarter, Not Harder
Statistics Spotlight
Standard Issues
Marketplace
Footnotes
Back to Basics
Quality Progress - March 2017 - cover1
Quality Progress - March 2017 - cover2
Quality Progress - March 2017 - 1
Quality Progress - March 2017 - 2
Quality Progress - March 2017 - 3
Quality Progress - March 2017 - 4
Quality Progress - March 2017 - 5
Quality Progress - March 2017 - Seen and Heard
Quality Progress - March 2017 - 7
Quality Progress - March 2017 - Expert Answers
Quality Progress - March 2017 - 9
Quality Progress - March 2017 - Progress Report
Quality Progress - March 2017 - 11
Quality Progress - March 2017 - 12
Quality Progress - March 2017 - Mr. Pareto Head
Quality Progress - March 2017 - Field Notes
Quality Progress - March 2017 - 15
Quality Progress - March 2017 - 16
Quality Progress - March 2017 - 17
Quality Progress - March 2017 - Innovation Imperative
Quality Progress - March 2017 - 19
Quality Progress - March 2017 - 20
Quality Progress - March 2017 - 21
Quality Progress - March 2017 - Hard Wired
Quality Progress - March 2017 - 23
Quality Progress - March 2017 - 24
Quality Progress - March 2017 - 25
Quality Progress - March 2017 - 26
Quality Progress - March 2017 - 27
Quality Progress - March 2017 - Propel Forward
Quality Progress - March 2017 - 29
Quality Progress - March 2017 - 30
Quality Progress - March 2017 - 31
Quality Progress - March 2017 - 32
Quality Progress - March 2017 - 33
Quality Progress - March 2017 - Life After Disruption
Quality Progress - March 2017 - 35
Quality Progress - March 2017 - 36
Quality Progress - March 2017 - 37
Quality Progress - March 2017 - 38
Quality Progress - March 2017 - 39
Quality Progress - March 2017 - Work Smarter, Not Harder
Quality Progress - March 2017 - 41
Quality Progress - March 2017 - 42
Quality Progress - March 2017 - 43
Quality Progress - March 2017 - Statistics Spotlight
Quality Progress - March 2017 - 45
Quality Progress - March 2017 - 46
Quality Progress - March 2017 - 47
Quality Progress - March 2017 - Standard Issues
Quality Progress - March 2017 - 49
Quality Progress - March 2017 - Marketplace
Quality Progress - March 2017 - 51
Quality Progress - March 2017 - Footnotes
Quality Progress - March 2017 - 53
Quality Progress - March 2017 - 54
Quality Progress - March 2017 - 55
Quality Progress - March 2017 - Back to Basics
Quality Progress - March 2017 - cover3
Quality Progress - March 2017 - cover4
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