Lux: Digital Transformation for the New Consumer Journey

By Scott Birch
With hundreds of billions at stake, Lux Research outlines what companies need to know about AI and IoT’s impact on the consumer journey...

Accelerated by COVID-19, emerging digital technologies, especially AI and IoT, are fundamentally changing the consumer journey in the consumer product market. A new report from Lux Research, “The Digital Transformation of the Consumer Journey,” outlines how companies can apply digital technology to enhance the consumer journey for their benefit.

Traditional digital solutions like digital marketing and ecommerce have laid the groundwork for the disruptive potential of AI and IoT. 

“Emerging AI and IoT technologies, however, are able to further move the needle in consumer personalisation through data collection, thus creating deeper value for CPGs and their supply chains,” says Jerrold Wang, Lux Research Analyst and lead author of the report.

The report looks at specific examples of how digital transformation impacts the consumer journey across the consumer product market, including categories like food, beverage, and nutrition, clothing and shoes, cosmetics and personal care, sporting goods, and furniture and household items. Among the most commonly used emerging digital technologies are AI technologies for human-machine interaction like computer vision, voice recognition, and natural language processing, smart cameras and sensors, and augmented reality (AR).

undefined

“Though these digital technologies are empowering the five segments of the consumer journey – awareness, consideration, purchase, use, and retention – the hot spots of technology innovation and deployment are focused in the consideration and use segments,” explains Wang. 

Driven by AI-enabled personalised product recommendations and automated product utilisation, respectively, these two segments offer most of the opportunities for disruption. Innovations for these segments will enable customised value-added services and build consumer lock-in. In addition, these two segments have a direct impact on product sales and consumer retention, driving revenue from both new and existing consumers.

Lux Research states that companies in the consumer product market risk being left behind if they don’t develop AI and IoT strategies immediately. As personalisation has become a consumer expectation, market leaders like L’Oréal and P&G have been adopting digitally enabled products throughout the consumer journey – not to mention smaller companies launching new solutions on a nearly daily basis.
 

Share

Featured Articles

IBM acquires Octo to help US government with digital defence

The acquisition combines Octo's expertise with IBM's reach to help the US government work well with innovative artificial intelligence and cloud tech

Security chiefs look for resilience following cyberattacks

Cybersecurity resilience has emerged as a top priority, as 62 per cent of organisations say they have experienced a security event that impacted business

Five minutes with: Jasmeet Singh, EVP at Infosys

From IoT to AR, Jasmeet Singh speaks to AI Magazine about the fundamental shifts underway in the manufacturing industry thanks to metaverse technologies

Samsung teams up with NAVER for hyperscale AI semiconductors

Technology

Now we’re talking: How humans have learned to love chatbots

Technology

ICYMI: Visual search engine future and OpenAI’s new ChatGPT

Technology