Consumer Behaviour: The Changes you Need to Know About and How to Respond
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The document discusses significant shifts in consumer behavior, focusing on increasingly complex customer journeys, heightened expectations, and changes in interactions with brands. It highlights the importance of understanding customer behavior, the necessity of effective measurement, and the impact of real-time support on purchasing decisions. Marketers are encouraged to adapt to these changes by effectively meeting customer expectations and fostering collaboration among internal teams.
Consumer Behaviour: The Changes you Need to Know About and How to Respond
- 1. Consumer Behaviour – The Changes you Need to Know about and How to Respond Damien Bennett, NMPi
- 2. 1 All human actions have one or more of these seven causes: 1. Chance 2. Nature 3. Compulsions 4. Habit 5. Reason 6. Passion 7. Desire -Aristotle
- 3. 2 Areas of Focus 1. Increasingly complex customer journeys 2. Greater customer expectations 3. Changes in customer’s interactions with brands
- 4. 3 Research Consideration Purchase 1. Increasingly Complex Customer Journeys Marketers have historically seen the customer journey as a funnel • Broadcast • OOH • Prospecting display • Generic search • Retargeting • Email Customer Journey Funnel: Channel
- 5. 4 In fact user journeys are complex and unpredictable 1. Increasingly Complex Customer Journeys
- 6. 5 comScore (2015) The majority of UK internet users use both desktops and mobile to go online 1. Increasingly Complex Customer Journeys Desktop Only Multi-Device Mobile & Tablet Only 23% 72% 5%
- 7. 6 Apadmi (2015) 11% of people in the UK shop in-store, via the website and via the app of their favourite retailer 1. Increasingly Complex Customer Journeys Store App Website 11% 55% 2% 1% 22% 8%1%
- 8. 7 When making purchases over £20, UK shopper currently use an average of 2.2 sources of research 1. Increasingly Complex Customer Journeys 51% 22 % 17% 6 % Retail Sites Manufacturer Sites Blogs Social Media Savvy (2015)
- 9. 8 Mobile plays an important role in driving in-store revenue 1. Increasingly Complex Customer Journeys 36% 37% Of consumers who are looking up products on their mobiles ultimately make their purchase in- store (xAd, 2015) Of UK purchases which begin on mobile convert in person (xAd/Telmetrics, 2014)
- 10. 9 Shoppercentric (2016) Mobile activity plays a wider number of roles in people’s customer journeys 1. Increasingly Complex Customer Journeys 60% 52% 51% 49% 35% 28% 11% Consider Inspiration Research Find Share Buy After Sales Activities on Smartphone
- 11. 10 Innovation becomes the norm increasingly quickly 2. Greater Customer Expectations
- 12. 11 2. Greater Customer Expectations Speed of delivery is essential to younger consumers 90% 86% Of 18-24 year olds would shop online more often if they were in control of more convenient delivery options Econsultancy (2015) Of 18-24 year olds say that delivery options are a key factor influencing their choice of retailer when shopping online Econsultancy (2015)
- 13. 12 Consumers abandon baskets for a variety of reasons 2. Greater Customer Expectations 54% 40% 33 % 30% “Changed mind” Delivery costs More consideration Check for cheaper price Yes, several times, 63% Yes, once, 14% No, 17% I don't remember, 7% Percentagte of Consumers Abandoning Checkouts eDigital Research (2015)
- 14. 13 eDigital Research (2015) 64% of UK online shopper would purchase more if real-time support was readily available 3. Changes in Customer’s Interactions with Brands Yes, definitely, 18% Yes, probably, 46% Probably not, 19% Definitely not, 1% Don't know, 15% Would you purchase more if real-time support was available?
- 15. 14 Speed is cited by customers as the most important 3. Changes in Customer’s Interactions with Brands 21% 23% 25% 46% 56% 68% Contact in extended hours Friendly agent Single point of contact Contact an agent instantly Contact for free Quick response What are the most important criteria for online customer service? eDigital Research (2015)
- 16. 15 eDigital Research (2015) 43% of live chat users expect a response within one minute 3. Changes in Customer’s Interaction with Brands 7% 10% 21% 35% 43% Email Social Media Web call back Phone Live chat % of Consumers Expecting a Response Within One Minute
- 17. 16 Ofcom (2015) 75% of UK internet users read online reviews 3. Changes in Customer’s Interaction with Brands 76% 80% 80% 73% 76% 60% 58% 33% 47% 46% 39% 38% 25% 24% 16-24 25-34 35-44 45-54 55-64 65-74 75+ Reading and Writing Online Reviews by Demographic Group Read Write
- 18. 17 Areas of Focus 1. Increasingly complex customer journeys 2. Greater customer expectations 3. Changes in customer’s interactions with brands
- 19. 18 How to Respond 1.Understand our customer’s journey 2.Reach our customers with the right message 3.Meet customer expectations 4.Encourage positive advocacy
- 20. 19 How to Respond 1. Introduce effective measurement 2. Meet customer expectations 3. Bring internal teams together
- 21. 20 Experian, April 2015 Most multichannel advertisers are still reliant on basic attribution methods 1. Introduce Effective Measurement 70% 30% How do you attribute revenue to channels? First or last touch Fractionally allocate
- 22. 21 1. Introduce Effective Measurement Simple Complex • Not de-duped • Inconsistent sources • Last click wins • De-duped • Consistent source • Last click wins • De-duped • Consistent source • Attributed • De-duped • Consistent source • Attributed • Cross device • Omnichannel • Customer data 2 3 41
- 23. 2222 In order for attribution to be successful solution to be effective it must: 1. Introduce Effective Measurement Be purpose-built for measuring the performance of media Be able to track all top media-driven channels, including Organic Search Allow both click and impression tracking Give full visibility of the top conversion paths Be able to provide granular detail on performance (i.e. keyword level for Paid Search) Be able to integrate with media management technology
- 24. £ 23 Becoming Aware Researching In-Market Re-engagement 1. Introduce Effective Measurement • Reach • Brand search uplift • Ad Recall • Social engagement • New visitors • Cost Per New Visitor • Bounce rate • Time on site • Pages viewed • Revenue • ROI • Store visits • Per session value • Lifetime value Customer Stage KPIs
- 25. 24 Forbes (2015) 79% of UK retailers have no way for customer to publicly rate and review their service online 2. Meet Customer Expectations Rate and review service, 19% No rate and review service, 79% Retailers With a Rate and Review Service
- 26. 25 47% of adults say they have had an issuer with delivery over the past 12 months 2. Meet Customer Expectations Yes, 47% No, 53% Over the Past 12 Months Have you Experienced Issues With Delivery? JDA (2015)
- 27. 26 As internal teams we often behave like “The Blind Men and the Elephant” 3. Bring Internal Teams Together
- 28. 27 To be successful we need to kill our internal silos 3. Bring Internal Teams Together Target Creative Brand Social Web Acquisition PR CEO, CFO, COO
- 29. 28 How to Respond 1. Introduce effective measurement 2. Meet customer expectations 3. Bring internal teams together
- 30. Any Questions?