consumer decision making on digital

Consumer Decision Makingin the digital realm

IIM Bangalore27th July, 2012

www.twitter.com/akshatk

Needs & Wants


Gone in 60 seconds

Slide 4www.twitter.com/akshatk

Consumers are making informed decisions


Introduction

• Media outposts have multiplied and they don various roles sometimes interchangeable

• Brands have evolved. They are embracing new media. They want to be present at every touch point consumer has access to.

• Consumers are smarter and more informed. They rely on multiple information sources before they make a purchase decision.

And hence brands and marketers are increasingly putting consumers at the heart of everything they do


1. A business problem is a behavioural change in disguise

3 key themes:


At the heart of every business problem today is an opportunity to change consumer behaviour

- Even in those areas we previously struggled to impactwww.twitter.com/akshatk

Start with a clear, simple, granular problem (N.B. these aren’t easy to get to)

-We need 1m usersto buy 1 more pack a year each

-Rate of sale is sky high but ourdistribution is a barrier to growth

THE PROBLEM


Then identify the behaviour you need to change to make that happen

-We need 1m users to buy 1 more pack a year

-Rate of sale is sky high but ourdistribution is a barrier to growth

-We need to create one additional occasion a year for these users

-We need our fans to become our distribution channel

THE PROBLEM THE BEHAVIOURAL CHANGE


Move from “nice” sharing to “sharing that breaks”



2. Think about network insights, not (only) consumer insights

3 key themes:


Thinking about network insights ensures we understand why our target might participate with our platform


And it ensures we know how to design experiences to maximise the participation we need

Source: Luke Wroblewski, The Impact of Social Models



2. Think about network insights, not (only) consumer insights

3. From “the single thing we want to say” to “the single thing we’re going to make or do”

3 key themes:


The heart of every marketing campaign/message/ initiative/…:

What is the single thing we want to say?


But we’ve established….

Participation disrupts business models

Consumers ability to participate has the power to impact our businesses in more profound ways than ever before

The solution to a much more diverse range of business problemslies in changes to consumer behaviour

If we want to change behaviour, we’re probably not going to betalking at people……


What are we going to make or do that will enable the behaviour we need to see?


Hence

1. A business problem is a

behavioural change in

disguise

2. Think about network insights,

not (only) consumer insights

3. From “the single thing we

want to say” to “the single

thing we’re going to make or

do”

What do we need people to do?

Why would they do it? -what are their network motivations?

What are we going tomake or do that will enable them to do it ?


• GOAL OF BUSINESS• Sell stuff often

• GOAL OF MARKETING• Influence consumers to buy stuff often


What aids consumer decision making?

• CLOUT– The marketing that has the most clout is the

marketing that already has your consumer’s ears– Most trusted form of marketing – word from friends

and family• RELEVANCE– Break the clutter; too much noise– Map the consumer decision journey, align

messaging with the journey, sell an outcome or a lifestyle , not a product

What aids consumer decision making?

• EASY– Invest in findability, reward loyalty– Use CRM– Make it easy for the consumer to ‘like’ you

• DIFFERENT– Consumers are looking for a story to tell– Create a unique/key selling point– Personalisation– Build in virality– Package the brand experience for consumers to understand

and share

The perception gap: Needs & Wants


The evolving ecosystem

The key to this new ecosystem is the arrows between each bucket though. Paid drives Owned which can drive Earned, but things are more complicated than this.

- Owned Media presence (for example a YouTube video) can aid visibility on Search Engines and can also be used to drive back to the main site (for example Alexa currently shows that 44.64% of visitors to Evian.com come from YouTube.)

- Conversation can also produce activity that aids SEO (through creating an increase in both Search results and links) with this helping Paid Search ads to work harder.


Brands are Publishers- Large well-known brands are beginning to realize that the media they own (the product

itself, how it’s sold and distributed, etc.) are more powerful than the media they buy.

- Owned media are not only more credible and effective than paid media, but they actually sometimes have better reach and frequency.

Johnson & Johnson’s Baby Center, a portal for new and expecting mothers, is said to be one of the most effective marketing initiatives J&J has ever undertaken.

P&G launched a new platform called “Man of the House” which revolves around male grooming and men’s lifestyle besides working as a plug for Old Spice and Gillette


Thank You

• [email protected]• www.twitter.com/akshatk• in.linkedin.com/in/akshatkumar• www.slideshare.net/inkgenie

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