What is the ever-growing "contactless economy"? Considering its importance alongside CX design.

The COVID-19 pandemic has ushered in a new normal era, and our consumption patterns are now facing a major transition. One notable change is the surge in contactless economic activities like online shopping, delivery services, and cashless payments. This economic activity, termed the "contactless economy," is expected to further evolve its technologies and services, maturing into the mainstream consumption style.

Given this, what should CX (Customer Experience) in the contactless economy look like to provide customers with an effortless experience (a high-quality customer experience requiring minimal effort)? While exploring next-generation CX, we examine key CX design points that are particularly important precisely because they are contactless.

The contactless economy is shifting from "nice to have" to "essential"

Since the spread of COVID-19, have you noticed fewer opportunities to take cash out of your wallet or pick up products in stores?The term "contactless economy" refers to all economic activities involving the buying and selling of goods and services without direct physical contact, encompassing purchases on e-commerce sites and cashless payments. This new economic activity is rapidly expanding as a way to compensate for the decline in in-store consumption caused by prolonged economic stagnation, attracting intense attention both domestically and internationally.

First, let's examine the contactless economy by dividing it into two types: "home-based consumption" and "contactless consumption outside the home."

Home Consumption (Touchpoints within the Home)

Home-based consumption refers to consumer touchpoints that have shifted from outside the home to within it. It expanded after the 2008 Lehman Shock and increased further as people avoided going out during the COVID-19 pandemic. Its rapid growth spans a wide range of areas, extending beyond online shopping for consumer goods like food and daily necessities, home delivery services, and digital content usage. It now encompasses financial services such as online education and virtual banking, as well as the healthcare sector, including online medical consultations.

Contactless Consumption Outside the Home (Touchpoints Remain Outside the Home)

Contactless consumption outside the home emerged through the development of digital technologies and services, while maintaining existing touchpoints previously occurring outside the home. It is rapidly permeating retail sectors like supermarkets and food service industries such as restaurants, through cashless payments, non-face-to-face customer service, and self-checkout systems.

Both "at-home consumption" and "contactless consumption outside the home" demonstrate how consumer needs—such as heightened hygiene awareness and changing behaviors—combined with technological advancements have updated the purchasing experience.

According to the Deloitte Touche Tohmatsu Group report, "The Rise of the Contactless Economy | The Post-COVID-19 World Brought by the Contactless Economy," the market size for home consumption in the Asia-Pacific region is projected to reach $3 trillion by 2025, approximately double the current level (as of November 2020).When including contactless consumption outside the home, the growth will be significantly higher. The contactless economy is truly becoming the new consumption style that will define the coming era.

Simple, easy, and speedy. Update existing CX to achieve even greater experiential value.

So, how exactly is the contactless economy evolving? We believe it's crucial to examine this from the perspective of "how CX has evolved with the advent of the contactless economy." Let's look at examples, focusing on "contactless consumption outside the home," an area where CX is currently evolving remarkably. First, examples of updating existing CX to contactless models.

Semi-Self-Checkout, App Payments

For many, the first examples of contactless consumption outside the home that come to mind are self-checkout systems and app payments in restaurants and retail stores. Semi-self-checkout systems, where staff scan items and customers complete payment at a kiosk, have already been adopted by many stores like convenience stores and supermarkets. They help alleviate checkout line congestion and accommodate diverse payment methods.

Contactless Displays and Sensors in Transportation

Railway companies, which were early adopters of contactless approaches like transportation IC cards, have also introduced contactless sensors that allow passengers to operate automatic ticket vending machines without touching the touch panel. Furthermore, they have started pilot tests installing contactless displays to respond to passenger inquiries, enabling station staff to guide passengers remotely. Airlines have begun pilot tests installing contactless sensors on baggage check-in machines.

Online property viewings by real estate companies, delivery lockers at pharmacies

Online property viewings, where real estate staff visit locations and show properties to interested parties via video, existed before the pandemic but have seen a surge in users in recent years. Pilot tests have also begun at pharmacies using refrigerated delivery lockers for contactless prescription drug handover.

These examples reveal that the contactless economy didn't expand solely because it's "hygienic" or "avoids crowds." Rather, it gained customer support precisely because it updated existing CX to be "simple, easy, and speedy."

Creating contactless consumption experiences requires a holistic view of CX

Next, let's examine examples of services that have created new CX through technological evolution.

Unmanned Stores

Convenience stores and supermarkets are increasingly eliminating checkout counters by introducing authentication technologies using smartphones and AI, along with sensors and cameras. Restaurants are also adopting mobile ordering systems where customers place orders via smartphone and meal delivery robots.

Non-contact AI measurement system at department stores

Major department stores have introduced contactless AI measurement systems in their menswear sections, eliminating the need for interaction between customers and sales staff. Customers simply input basic information into a smartphone app and take full-body photos from the front and side to receive highly accurate measurements. This allows them to purchase clothing that perfectly fits their body.

Delivery Robots

In the logistics and delivery sectors, pilot tests for autonomous delivery robots are progressing. While legal frameworks for public road use still need development, practical implementation may not be too far off.

These contactless services not only offer customers new experiences but also provide significant benefits to service providers, such as alleviating labor shortages and ensuring staff safety and peace of mind. Particularly noteworthy is the efficiency gains in back-office management and logistics.

For example, unmanned convenience stores and supermarkets can not only gather the same data as traditional stores—such as POS data and customer information like gender and age—but also analyze detailed customer behavior, including items picked up and then returned to shelves. Combining this data with cutting-edge technologies like AI enables automated management of inventory checks, ordering, and delivery.

When designing CX for the contactless economy, it is crucial to adopt an approach that designs the total process encompassing "logistics → back-office → product purchase → product receipt" to enhance customer satisfaction. Rather than implementing contactless solutions piecemeal, it is essential to redesign CX, including the back-office. Adopting this perspective enables the strategic realization of the contactless economy.

The rise of the contactless economy has also highlighted new customer segments previously overlooked. One such group prefers purchasing in physical stores over online shopping while still desiring a smooth checkout experience. These customers seek not only the safety and security of contactless methods but also "emotionally rich, high-value experiences" through their consumption.By designing CX from the perspective of what is needed to provide them with a fulfilling purchasing experience while leveraging technology, we can further refine the contactless economy.

What is the next-generation CX that can guide customers effortlessly?

Now, let's examine the points mentioned in the previous chapter about "redesigning CX, including the back-end" from a different angle.

In the contactless economy, where human intervention is minimal, CX design must consider not only the "front" touchpoints with customers but also the "contact center" serving as their inquiry hub.At the front, how can we create a premium digital experience? At the contact center, how can we resolve customer concerns and questions through various channels like phone, email, chat, and FAQs? Only by improving CX through these two pillars can we truly provide customers with an effortless experience.

The specific path to enhancing customer satisfaction by driving both the front and contact center varies depending on the company, its products/services, and the environment. However, what remains constant is the importance of a posture that carefully listens to the customer's voice.Carefully scrutinizing customer data and requests gathered at the front end and contact center to identify directions for CX improvement. Then, exploring whether emerging improvement strategies can be realized using new technologies. This approach is what is required, isn't it?

In designing CX for the contactless economy, we've seen that it's crucial to deliver "simple, easy, and speedy" experiences during product/service purchase while also providing customers with an effortless experience throughout their entire consumption journey, including pre- and post-purchase activities.Implementation requires significant investment, necessitating strategic consideration based on your company's products/services, customer base, and desired value proposition. Listen to customer feedback, reassess touchpoints, and leverage new technologies. With these points in mind, develop a design strategy tailored to your company and design your CX accordingly.