Download - Consumer Decision Journey in the Digital Age
CONSUMER DECISION JOURNEY IN THE DIGITAL AGE
Alok Ranjan
BRANDS & CONSUMERS CHEMISTRY
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Consumers today are accessing brands through multiple touch points . On the other hand, brands are struggling to create personalized shopping experience for every customer.
DIGITAL PURCHASING DRIVERS
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46.03%
19.19%
86.75%
86.03%
53.37%
59.27%
86.78%
37.59%
89.90%
85.75%
93.50%
62.50%
110%
108%
137.20%
165.20%
138.70%
76.20%
131%
108%
0.00% 50.00% 100.00% 150.00% 200.00%
China
India
United States
Japan
Brazil
Russia
Germany
Nigeria
United Kingdom
France
Mobile Penetration
Internet Penetration
18.30%
21.30%
2.20%
1.80%
5.30%
51.10%
26.50%
17.80%
2.50%
2.30%
4.50%
46.40%
23.00%
14.50%
8.50%
4.40%
3.60%
46.00%
26.20%
11.60%
57.50%
44.00%
11.50%
18.10%
0.00% 20.00% 40.00% 60.00% 80.00%
China
USA
India
Brazil
United Kingdom
Rest of World
Growth 2011-16
2016 market share
2012 market share
2011 market share
Source: Internet Live Stats 2014, Mobithinking
Source: IDC , 2012
Top 5 Markets for Smart phone Sales
+ 15 percent of students older than 13 with access to tablets have shopped on their devices while in school
+ 71 percent of social media users are more likely to purchase from brands they follow online
+ 59 percent of households with annual incomes of $200,000 or more have purchased products on their mobile devices while in-store
+ Online comparison shopping sites attract 72 million monthly visitors
+ 36.5% of global online sales comes from APAC in 2014 and this is expected to rise to 39.6% by 2016
+ Mobile commerce transactions will reach $3.2 trillion in 2017, up from $1.5 trillion in 2013
Source: Internet Sources, CMO
TRENDS IN DIGITAL CONSUMPTION
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69%
67%
63%38%
30%
28%
20%
20%
20%18%
6%
Consumer Electronics
Books
Clothing & Apparel
Household Goods
Office Supplies
Consumer PackagedGoods
Type of Products Consumers Purchase Online
Source: Walker Sands 2014 Future of Retail Study
80%66%
64%
48%
42%42%
41%
39%
37%
Free Shipping
1 day Shipping
Free Returns &Exchanges
Easier OnlineReturns
Confidence inPayment Security
Multiple VersionsShipped at Once
Same Day Shipping
Easier InstoreReturns
Visual try onCapability
Why Purchase Online? Reasons
Source: Walker Sands 2014 Future of Retail Study
Research & purchase on smartphone
41%
Research on smartphone, but purchase in-store
46%
Research on smartphone, but
purchase on computer
37%
Research on smartphone, visited store to check the
product but purchase on computer
19%
Research on smartphone, visited store to check the
product but purchase on smartphone
18%
Visited the store first, then purchased on smartphone
8%
Multi device Shopping Trends
Source: Google ZMOT, 2012
OUR PREFERENCES ARE CHANGING
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Technology has reduced in-store challenges faced by consumers.
BRANDS AND CONSUMERS ARE AT LOGGERHEADS
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73%
71%
69%
68%
67%
64%63%
63%
61%
60%
60%
51% 53%
49%
52%
53%
33%
37%
22%34%
55%
61%
Learn about new products
General Information
Submit Opinions
Exclusive information
Reviews and product rankings
Feel ConnectedCustomer Service
Be a part of a community
Event/promotion participation
Purchase
Discount
Brands Consumers
What Consumers Wants on Digital Media vs. What Brands Offer?
Source: IBM Institute of Business Value, 2013
CONSUMER DECISION JOURNEY – OLD MODEL
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Awareness
Familiarity
Consideration
Purchase
Loyalty
+ The traditional consumer decision journey funnel is losing its relevance.
+ Consumers no longer follow the linear path to achieve their moment of purchase.
+ Technology is influencing each stage of the consumer decision journey like never before
+ The rise of social, mobility and analytics has created new avenues / multiple touch points for brands to connect with consumers
+ Consumer decision journey is transformed into a cyclical loop where brands continuously create awe moments to retain their consumers
CONSUMER DECISION JOURNEY – NEW MODEL
8
+ The number of brands making through the initial consideration set has become limited due to increase in consumer touch points
+ Brands are influencing consumers along the consumer decision journey
+ Brands advancing into the next stage equally face the challenge from competitors who were not part of the initial set
+ The moment of purchase is creating challenge of providing an outstanding after purchase experience to retain the customer
+ Consumers are ready to switch brands and open to competitor messaging
Moment of PurchaseInitial
Consideration
Evaluation/Information Search
Brand Loyalty
After Purchase Experience
Trigger
Source: Adapted from the Mckinsey Research
BRAND OUTREACH IS GETTING INTERACTIVE
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Source: Intel Interactive signage, Google images
Source: Burberry Digital Store London, Google imagesSource: Nike DIY OnlineStore, Google images
BRAND TOUCH POINTS IN THE DIGITAL AGE
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Digital Platforms
Ca
mp
aig
n T
ypes
Customer quick Interactions
Customer long term Interactions
Pers
on
al/T
arge
ted
M
ass
Mar
ket
Website
Customer Service
Product
Store
Community
Mobile applications
TV ad. spot
Print adverts
Adwords
Campaign sites
Customer reviews
Facebook/Google+
Printed flyers/Collaterals
Brand-Consumer Interaction Matrix
STRENGTHENING BRAND OUTREACH - RECOMMENDATIONS
Consumer-Brand Interaction Touch-points
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+ Create multiple consumer – brand interaction touch points in order to have maximum impact on the consumer decision journey
+ Each interaction with consumers should not only inform them about the product/services but also enhance the competitive edge of the brand
+ Enable consumers to be part of their consideration set in the purchase decision journey
+ Be consistent with your messaging across each channel of interaction
STRENGTHENING BRAND OUTREACH - RECOMMENDATIONS
Tighten Channel Strategy
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+ The digital touch points offer brands loosing out in the consideration stage an opportunity to make it to the decision journey at the evaluation stage
+ Research confirms that consumers flog to ecommerce sites to gather information and compare products than spending time on search engines
+ Consistent messaging along with fixing all broken links on ecommerce channels is the key to engage with the consumers at the evaluation stage
+ Develop positive product reviews by 3rd
party, ensure complete product specifications is available online, offer discounts through banner adverts, create social buzz through product videos, confirm delivery timely & organize a hassle free delivery schedule for a successful purchase decision journey
STRENGTHENING BRAND OUTREACH - RECOMMENDATIONS
Content Strategy
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+ Engage with the blogging community, seek feedback from consumers, create positive product reviews, ensure message consistency across web, ecommerce, social, TV and print to create authenticity
+ Engage with consumers through digital POS, online, email promotions, etc. to have a positive impact on the consumer decision journey
Data Analysis
+ Monitor consumer data and purchase behavior across multiple channels to create customized and positive interaction with them
+ Analyze consumer-brand interaction results, consumer data received from all departments, online activities, post purchase behavior, and competition to carve a superior engagement strategy at the evaluation stage
STRENGTHENING BRAND OUTREACH - RECOMMENDATIONS
Post-Purchase Strategy
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+ Set up product/service community to create positive buzz and influence new buyers seeking knowledge at the evaluation stage
+ Allow customer service interaction beyond voice services through social media, mobile messaging and online chats to address consumers post purchase issues immediately
+ Value add to consumers experience with fresh content update on product/service usage, new uses and customer service surveys
+ Engage with customized promotional emails, discount offers, and alerts to retain consumers
+ Monitor consumers online activities and provide them with customized offering to keep them engaged to your brand
Feedback/Questions?
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