Companies need to understand the full range of the multichannel consumer decision journey to understand how to best influence potential and current customers. Scenarios and data from this McKinsey presentation show how consumers are making their decisions today - particularly in the UK and France - and how brands can turn those insights into profits.
Insurers' journeys to build a mastery in the IoT usage
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Consumer Decision Journeys
1. Shaping your multichannel Customers’
Decision Journey to maximize profits
June 2013
Nicolo Galante, Director, McKinsey
Eric Hazan, Principal, McKinsey
McKinsey on Marketing & Sales – Slideshare Brief
2. McKinsey & Company | 1
An ideal multichannel journey
See an item you like
3. McKinsey & Company |
Savoir plus
Acheter
Savoir plus
Acheter
Savoir plus
Acheter
2
An ideal multichannel journey
Tap for more information
4. McKinsey & Company | 3
An ideal multichannel journey
Get friends’ opinions
5. McKinsey & Company | 4
An ideal multichannel journey
Personalize and tailor
6. McKinsey & Company |
Buy and deliver
same day
Rendez-vous
Select a time to meet
with a sales person
5
An ideal multichannel journey
Buy it online or in-store
8. McKinsey & Company | 7
An ideal multichannel journey
Be “recognized” by sales staff
9. McKinsey & Company | 8
An ideal multichannel journey
Post opinion on social media
10. McKinsey & Company | 9
An ideal multichannel journey
Personal invite for the next product
11. McKinsey & Company |
The Consumer Decision Journey
10
Reaction to the purchase, interaction
with the product and brand
Experience
Consumer’s initial set of
brands and retailers
Consider
Selection of what to
buy, where to buy, and
how to be delivered
Buy
Evolution of the consideration set as
the consumer gathers information
Evaluate
Selection of the same brand or
retailer without reconsidering
and reevaluating
Loyalty
SOURCE: McKinsey
12. McKinsey & Company |
The Consumer Decision Journey is already multichannel in France
11SOURCE: McKinsey iConsumer research
23% of consumers posted a
comment or review on the retailers
Facebook page
Experience
For 30% of electronics custo-
mers, digital is the most influential
touchpoint for having a brand in
their initial consideration set
Consider
31% of customers
buy online, but pick-
up in the store
Buy
49% of customers check online to
see if the store has an item available
Evaluate
Example: Amazon Prime
members use Amazon for more
than 50% of their online
purchases
Loyalty
13. McKinsey & Company |
The trend toward multichannel journeys is accelerating
under the penetration of mature technologies… (1/2)
27
36
26
Voice
Email &
Msg
Social
Others
20122008
39
42
15
4
10
11
2008
PC
Mobile
Tablet
2012
56
33
78
22
0
12
Share of usage time
Percent
Share of communication time
Percent, indexed in 2008
â–Ş The share of
mobile in the total
usage time doubled
over the last four
years in the USA
â–Ş The share of voice
in the total
communication
time tend to fall
compared to social
media, websites and
apps
SOURCE: McKinsey iConsumer research
14. McKinsey & Company |
The trend toward multichannel journeys is accelerating
under the penetration of mature technologies… (2/2)
Share of usage time
Percent, 2012
Share of communication time
Percent, 2012
13
5
PC
69
Mobile
26
Tablet
33
13
Voice
22
Email & Msg
32
Social
Others
â–Ş In France, mobile
devices already
represent 31 % of
connected devices
â–Ş Almost half of the
communication
time is spent on
social media,
websites and
applications
SOURCE: McKinsey iConsumer research
15. McKinsey & Company |
Less mature technologies will accelerate this trend
14
Near Field Com-
munication (NFC)
NFC technology enrich the
use of mobile while in store
(e.g. payments)
Augmented Reality
Augmented reality enables a
real life experience while on
line
Radio Frequency
Identification (RFID)
RFID technology enables
seam-less experience while in
store
SOURCE: McKinsey analysis
16. McKinsey & Company |SOURCE: McKinsey iConsumer Research
The importance of each touchpoint varies by categories
Visited compe-
titor’s websites
Used a mobile
coupon site/app
Searched online
for additional
information
15
Type of research done while in store shopping
as percent of buyers doing in store mobile research
Health
and beauty
11
Clothing 13
Electronics 27
8
7
9
41
29
32
17. McKinsey & Company |
Four trends shape the new consumer decision journeys
From To
A different CDJ for each channels An expectation that CDJ is seamless
across channels
Digital somewhat influences
purchase behavior
Digital is critical for engaging and
converting customers
Content and commerce are clearly
separated
Lines between content and commerce
are blurring
Customers are divided in macro
segments
Customers journeys are divided in
micro segments and differ by category
16
18. McKinsey & Company |
Multichannel Consumer Decision Journeys represent a revenue
growth opportunity…
In-store shoppers
Multichannel shoppers
191
224
83
116
110
64
152
87
+94%
+119%
+84%
+72%
17
"How much do you spend by month at this retailer?"
Spend per month per shopper, €
Retailer 1
Retailer 3
Retailer 4
Retailer 2
â–Ş Over four retailers
analyzed in the UK,
multichannel
shoppers spend in
average twice as
much as in-store
only shoppers
SOURCE: McKinsey survey
19. McKinsey & Company |
More channels also means incremental costs
â–Ş Increased reach
â–Ş Loyalty/frequency
â–Ş Cross-selling/more products
Incremental revenues
â–Ş Launch of channel costs
â–Ş Customer dissatisfaction costs
â–Ş Systems integration costs
â–Ş Training costs
â–Ş Delivery costs
â–Ş Level of cannibalization
Incremental costs
18SOURCE: McKinsey analysis
20. McKinsey & Company |
… and there is a higher risk of customer dissatisfaction
What do we observe today?
Half of customers think "Integrating
Stores/Online/Mobile" is where retailers
need to improve shopping experience most
Only 1/3 of customers indicate that
shopping is "easy or very easy" on
Mobile
2/3 of shoppers have stopped buying
goods or services from a company after
experiencing poor customer service
19SOURCE: Public data (press)
21. McKinsey & Company |
Shaping your multichannel Consumer Decision Journey to maximize profit
Make tradeoffs
between channels to
drive profits
"Don’t leave piles of
money on the table"
Understand each
channel’s role in the
Consumer Journeys
20SOURCE: McKinsey analysis
Strategy
Execution
Insights
22. McKinsey & Company |
S
E
I
Understand each channel’s role in the
Consumer Decision Journeys
21
Magasin
Catalogue
Site Web
Application
mobile
Consideration Purchase LoyaltyExperienceEvaluation
APPAREL
EXAMPLE
23. McKinsey & Company |
Don’t leave piles of money on the table"
Consumer electronics example
1. Browsed/
searched
Visited
2. Formed
a cart
3. Started
check-out
4. Purchased
63.7 9.0 5.4 3.9
64 14 60 71
100.0
74.2 9.6 3.1 1.1
74 13 32 35
100.0
79.2 9.1 2.4 0.5
79 12 27 23
100.0
Conversion ratexx
22
xx Percent of visitors
SOURCE: McKinsey analysis
Player 1
Player 2
Player 3
S
E
I
24. McKinsey & Company |
Average player
Shelf ShelfAisle Shelf ShelfAisle
Picking movement
examples
Best in class
60 - 90
-2 €
Best observed average store
picking speeds (items/hour)
Basket profitability
155
2 €
Don’t leave piles of money on the table" Cart Picker
23SOURCE: McKinsey analysis
S
E
I
25. McKinsey & Company |
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