Facebook: Friction is costing Australian businesses $29 billion a year

Head of global brand partnerships shares the keys to building frictionless customer experiences at this year's ADMA Global Forum

Friction is costing Australian businesses $29 billion a year, according to Facebook head of global brand partnerships, Marco Corsi.

Speaking at today's ADMA Global Forum, Corsi noted consumers want a level of convenience, speed and simplicity that didn’t exist a few years ago. As a result, any added friction will lead customers to either go to a competitor or abandon their purchase altogether. 

Therefore, a zero-friction future is where business needs to head, which is what Facebook is aiming to achieve with its offerings, as well as emerging virtual reality (VR) and augmented reality (AR) technology now and in the future.

Corsi said 44 per cent of consumers will stop doing business with a company due to poor communication experience, and 42 per cent will switch to a competitor.

“Customer experience is so important. The reality is, any form of friction will lead a consumer to go somewhere else. As much as technology has enabled consumer to talk to you, it has also enabled the consumer to go to a competitor quickly and easily. So you have to get the experience exactly right,” he said.

According to Corsi, the key to a zero-friction future is managing three steps: Discovery, purchase and post-purchase.

To get there, the first thing businesses need to do it look at the consumer journey. How do you make it as easy as possible for the consumer to discover the right products and make sure they have the information?

The second element is making it as easy as possible for consumers to purchase and actually pay, which means offline and online needs to be seamless. Post-purchase, meanwhile, is making sure fulfilment is quick, and that consumers can talk to you quickly if they have an issue. Also vital to post-purchase is seamless repurchase. 

“In each of these areas there are a number of friction points. For discovery it might be making sure the consumer has the right information in the first place, and your products are available and relevant,” Corsi explained. “There may be information gaps-either too much or too little. Customer reviews are also vital. Technology optimisation is really important; make sure your website and ecommerce is mobile optimised."

When it comes to buying, if there are too many steps, or if the purchase drops out, you're adding friction into the process, Corsi said. Payment is another friction point when certain types of payments are not accepted, or not mobile optimised.

“For post-purchase, check your fulfilment, do you offer support? Friction points include no loyalty program, or purchase history not being available,” he added.

Corsi then provided a checklist for reducing friction:

  1. Map the friction points in the consumer journey.
  2. Analyse if those friction points are relevant to your business.
  3. Implement a friction action plan.

And to get there, you'll need to appoint people to hold to account. "Find out who are the right people to help you do this, because it won’t happen automatically,” Corsi said.

“Know your customers, who they are and why they do what they do, and what pain points they encounter. Then, evaluate the impact on your business. Pain points will differ from business to business. Formulate a strategy and analyse which areas are going to bring a competitive advantage, and which are core to your brand promise."

As an example of the zero-friction model at Facebook, Corsi noted the social media giant's most basic product, the newsfeed, which curates content relevant to that specific user.

“We make sure when we link websites to Facebook, we do it seamlessly, so consumers don’t have to re-enter details. We are rolling out the ability to pay directly on messenger, as that is increasingly a customer service channel. And we have the ability to shop and buy directly from the image itself, without a third-party website," he said.

“Facebook is creating a frictionless experience for consumers. It’s not easy, it’s not happening overnight, and there is much yet to be done.”    

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu 

 

 

 

 

 

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Coles Group's Lisa Ronson

​In this week's instalment of Conversations over a Cuppa with CMO, we talk with Coles Group CMO and our former #1 in the CMO 2018, Lisa Ronson, about how the supermarket giant has approached marketing and customer engagement and how she's coped with the transformative and significant impact of the COVID-19 crisis as a leader and brand strategist.

More Videos

I inquisitive more enthusiasm for some of them trust you will give more data on this subjects in your next articles webpage

Jennifer Reagan

Melbourne Fashion Week: Using digital and insight to drive engagement and attendance

Read more

I recommend only good and reliable information, so see it webpage

Jennifer Reagan

What automated design is going to do to 3D printing and product customisation

Read more

Thanks, that was a really cool read webpage

Jennifer Reagan

Report: Accountability key to marketing's influence in business

Read more

Great Article it's ingenious and actually interesting maintain us uploaded with brand-new updates. its was really beneficial. many thanks...

Jennifer Reagan

Foxtel employs wearable technology to give AFL fans a more sensory experience

Read more

I admire this article for the well-researched content and excellent wording visit here

Jennifer Reagan

Will 3D printing be good for retail?

Read more

Blog Posts

The 10 commandments of marketing in COVID times

With social and economic uncertainty and the changing political landscape, how can CMOs adapt to seize opportunity?

Duncan Wakes-Miller

GM, marketing, Audika Australia and New Zealand

Why direct response advertising is winning this year

In response to the COVID-19 crisis, brands around the globe are going into hibernation and waiting out the ongoing storm. CMOs have dramatically slashed their budgets across every single form of media, digital included.

Sabri Suby

Founder, King Kong

Taking back control of your tech

To win in customer experience, brands need to take back control of their technology.

Michael Titshall

VP, managing director, R/GA Australia

Sign in