Bridging the gap between consumer expectations and experience. The document discusses how consumers have taken control with unprecedented choice and how they communicate and obtain information. Marketing has changed more in the last 5 years than the previous 50 due to media proliferation and seamless movement between channels. Marketers must adopt new ways to engage consumers, differentiate brands, and earn long-term preference through customer experience marketing.
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Bridging the gap between consumer expectations and experience hs epsilon
1. Bridging the gap between consumer expectations and experience Hayden Saunders – Programme Director– Epsilon EMEA London Breakfast Briefing, 16 June 2011
2. Changes in consumer expectations What that means for marketing and marketers Some practical examples that show how we can embrace that change What we will cover today
3. Consumers have taken control, and we see it every day in their expectations and behaviours Unprecedented choice How and when they communicate with brands and each other Obtain information Make decisions, shop and buy Accelerated pace of interactions Digital interactions enable consumer voices to be heard and amplified across channels in minutes Consumer Empowerment
4. Marketing has changed more in the last 5 years than the previous 50 Impact of media proliferation Science versus art Seamless consumer movement between channels Consequences of time compression on marketing Marketing Complexity
5. The choices are Marketers at a crossroads Embrace this shifting marketplace with new ways to listen, learn and influence consumer behaviour Become paralyzed by the complexity and apparent loss of control 2 1 Or…
6. You Have to Be Listening You Have to Be Channel Aware You Have to Be Integrated You Have to Have a Multi-Channel Plan You Have to Have a Message Ready
9. You Need to Link all the Interactions by Consumer
10. Marketers must adopt new ways to … A new way forward Engage Consumers Differentiate Brands Earn Long-Term Preference We call it Customer Experience Marketing
11. Tenets of Customer Experience Marketing Welcomes customer participation into experience design Facilitates engaging conversations across channels Evolves conversations into win-winrelationships Inspires consumer involvement and action Leads to loyalty, giving brands a true competitive advantage Stops disrupting what people are interested in and becomes what they’re interested in
27. Catalogue buyerWhile checking her email online, Jennifer noticed a banner ad for ABC Fashion. She’d heard of the shop as her friend talked about it on Facebook. From the ad, she clicked through to the shop’s website where she saw a dress she liked. She decided to sign up to special offers by email and SMS. Minutes later Jennifer received a welcome email from ABC Fashion, which included a 10% limited time discount on their summer collection. Going to the website, she added the dress in the shopping cart but had second thoughts. The next day, a reminder email arrived. A week later a postcard arrived with the same offer and deadline. She went back to the website and completed the order. Following the delivery of the dress, Jennifer received an email suggesting accessories to match. Going into the high street store to look, she decided to buy them. The next week she received a reward voucher in the post. Via one of ABC’s weekly emails she puts an ABC shop link on her Facebook page, as she will earn credits for each friend who signs up to their emails. TOUCHPOINTS SHOP 12 CUSTOMER CALL CENTRE 6 8 4 EMAILS / NEWSLETTERS 11 14 WEBSITE 10 7 3 DIRECT MAIL 13 9 SMS / TEXT 5 PRINT ADS & OUTDOOR ADS BROADCASTS: TV & RADIO 15 ONLINE BANNERS / SEARCH / SM 1 2
Good afternoon – welcome to our talk on Evolving Consumer ExpectationsThanks for joining us today and thanks to Jump also for inviting us to this event.
So what will we cover?....We will look at the differences in consumer expectations – what’s been happening over the last few years and where we find ourselves todayWhat that means for those of us that work in marketing whether we’re in agencies advising clients or client-side marketeers seeking to improve customer acquisition, loyalty and retention. We will also show some practical examples that demonstrate how we meet today’s challenges – we will look at how we can embrace change and market successfully to each individual, recognising of course that each individual is not the same, not “generic” as we see in the picture here, but a unique individual with different wants, needs, motivations and preferences. And as part of that looks at how offline and on-line need to be integrated holistically –the distinction between them is more false every day – integration as is key as you will see
We all know that change happens! And we see that as consumers have been changing they have become more empowered than ever before.Consumers have taken control, and we see it every day in their expectations and behavioursThey have unprecedented choice in how and when they communicate (or don’t!) with brands and with each other, how they obtain information, make decisions, how they shop and buy We see changed behaviour affecting almost every purchase…. from the car buyer who nowadays tends to research heavily on-line often visiting a car dealership to look at, test drive, and perhaps even buy on the day, a very specific vehicle they saw on-line rather than visiting a dealer at an earlier stage in the buying cycle. to someone buying a tennis racquet perhaps who does some initial research on-line at home on the laptop or on a mobile device, visits a shop to feel the racquet and then buys the selected racquet at the cheapest price from an on-line store. to book buyers, many of whom never visit an actual book shop but buy on-line –and increasingly, some of these buyers preferring to read ebooks on a kindle or an ipad rather than buying a real bookAnd changes have made speed also of the essence, consumers expect speed – there is an accelerated pace of interaction enabled by new digital technologies that make it possible for a consumer’s voice to be heard and amplified across channels in minutes. This need for speed is particularly prevalent amongst the net generation, the 15 to 30 year olds who do not fear technology, who are indeed heavy consumers of digital technology, multi-taskers and often very influenced by their peers
So how does this affect marketing complexity?Well, Marketeers compete in an marketplace that’s changed more in the last 5 years than the previous 50 – multiple factors are converging to make this happen – evolving consumer expectations of course and new technologiesMedia proliferation has made it ineffective to market using a single channel or even a combination of loosely related channels – many consumers are buying across multiple channels, these multi-channel buyers being twice as valuable as a single channel buyerMarketing has become more science than art – there are more interaction points generating more data than marketers know what to do with – last year, in 2009 – more data was gathered within that year than in all previous years combinedConsumers can move seamlessly between identifiable and anonymous behaviour across physical and digital channels in their path to purchaseTime compression is putting pressure on marketing planning, interaction management, and measurement
This brings marketeers to a crossroads – forcing marketeers to either: Become paralyzed by the complexity and apparent loss of control, or Embrace this shifting marketplace with new ways to listen, learn and influence consumer behavior At Epsilon, we believe marketers must adopt new ways to engage consumers, differentiate their brands, and earn long-term preference
Faced with this challenge we believe that some key principles need to be embraced…..You have to be listening …. You need to know where they interact with you whether directly or indirectly, for example through social channels You have to be channel aware ….. Consumers will be typically be using on and offline channels and you need to understand thatYou have to be integrated – there is no room for a siloed operation You have to have a multi-channel plan…so again, on and offline and integrated You have to have a message ready – speed is of the essence and you need to be in a position to manage inbound and outbound communication effectively. So for example, today, if someone visits your site you need to be delivering them a tailored message online, delivering them appropriate content instantly
You have to have memory, knowing whast happening today but also having the knowledge of what has happened over time and have the ability to act on that
And importantly, you need to understand the influencer network …..understanding, for example, customer referrals, and the difference between those that influence and those that are the heaviest spenders – they’re not necessarily the same
And finally, you need to link all of the interactions for each consumer – this is fundamental – nowadays all marketing needs to be data-driven so it’s essential to have the right data foundation in placeThis is a not a new message – we’ve talked about bringing together data for years – the amounts of data around nowadays can make this a bigger challenge tho than ever before
Marketers must…..And we call it Customer Experience MarketingHayden is going to look now at how we can use technology to support this approach
Jane provided overview of changes in digital marketing. Media proliferation. Multi channel engagement. Leads to huge amount of data creation. Big opportunity if can manage effectively. I will walk through an example case of how to take advantage of the data, and overview of technology required to support this approach. Fundamental principles of a holistic approach to marketing:connect, engage, bond. Connect – customer acquisition: understand what needs of prospect are, with limited data need to establish what is relevant quickly identify segment goal: increase acquisition rate Engage – conversion understand customer better to deliver more relevant content follow up campaigns, conversion campaigns, abandonment campaigns goal: increase conversion rate and transaction valueBond – translate one-time purchaser into a long term brand loyal relationship, maximising life time value and creating brand advocates.- goal: increase value and frequency of purchasesFirst step is to understand how your customers already engage with your brand and make purchase decisions. From here can identify and test the best segments to guide which journey each individual customer will take. Use data to increase relevancy and in doing so become more interesting.As a result increase conversion rate, purchase frequency and transaction value.
Here we will deomnstrate two example decision making processes in 2000 and 2010.In each we’ll walk through the three phases in the life – connect, engage, bond.In this example…
Same three phases of the lifecycle.More online touchpoints.Using data from one touchpoint to tailor the next.
We’ve talked about how empowered customers are today. This trend will continue. Must communicate on their terms. We saw how Jennifer’s shopping experience changed from 10 years ago to today.Marketing complexity – media proliferation, customers engaging on multiple channels and have greater expectations of relevancy.Data potential – with increase in number of touchpoints this generates a lot of data. Customer expectation is to use this data. And it provides opportunity. Understand customer experience – will influence marketing decisions – will also highlight where we can influence and facilitate these customer journeys.Goal and end result is higher conversion rates, higher purchase frequency and higher transaction value.
