McKinsey on Marketing & Sales – Slideshare Brief
20 June 2012
Any use of this material without specific permission of McKi...
McKinsey & Company |
The McKinsey iConsumer panel offers a unique vision of web user
behavior in 15 countries
1
15 countri...
McKinsey & Company | 2
The 2nd Big Bang in e-commerce1
McKinsey & Company | 3SOURCE: McKinsey - iConsumer 2011
A 2nd big bang is taking shape and concerning personal
and domesti...
McKinsey & Company | 4
10
7
15
13
21
27
25
14
24
46
41
52
41
47
Food
Household products
DIY
Hygiene-beauty
Shoes
Furniture...
McKinsey & Company |
The new consumer expectations
5
1
Categories Digital maturity
Main drivers of on-line
buying
Digital
...
McKinsey & Company | 6
In 2011 42%
In 2010 33%
2009
or before
25%
SOURCE: McKinsey – Food survey in Spain, France and GB, ...
McKinsey & Company | 7
Mobile migration2
McKinsey & Company | 8
55
35
29
27
24
18
5
Smartphone
Reader
Basic telephone
Laptop PC
Tablet
Desktop PC
Television
2x
SOU...
McKinsey & Company |
Throughout Europe, tablet sales are rocketing
9
Tablet penetration ratio
% of web users
15
1
20112010...
McKinsey & Company | 10
50%
+22%
2011
2010 41%
12%
21%
+75%
2011
2010
On-line
searches¹
On-line
searches on
mobile phone²
...
McKinsey & Company | 11
Buying via a mobile is still in its infancy
Mobile
On-line
SOURCE: McKinsey - iConsumer 2011
2
Pur...
McKinsey & Company | 12
21
42
73
Other
In-store
Home
42% of the consumers queried carry out web searches on their
mobiles ...
McKinsey & Company | 13SOURCE: McKinsey
Price searches via mobile phone influence buying behavior
(declaration)
17
18
65
N...
McKinsey & Company | 14
The advent of multi-channel buying3
McKinsey & Company | 15
Choice of internet store as opposed to the store chains usually visited
% of respondents, France
S...
McKinsey & Company | 16
The first 3 buying criteria in the store: contact with the product,
verification of quality and pl...
McKinsey & Company | 17
The consumers praise the practical nature of multi-channel buying
Share of consumers using the fol...
McKinsey & Company | 18
32
Buy on-line and collect
in the store 42
Buy on-line and receive
delivery at home
26
Either
SOUR...
McKinsey & Company | 19
A social iConsumer4
McKinsey & Company | 20
Facebook becomes a retailer portal
4
SOURCE: McKinsey - iConsumer 2011; web users aged 13 and over...
McKinsey & Company | 21SOURCE: McKinsey - iConsumer 2011
36.7Opinion of other store users
31.4Website recommendations
31.5...
McKinsey & Company | 22
Big data for bigger profits5
McKinsey & Company | 2323SOURCE: Bloomberg and Datastream; annual reports; McKinsey analysis
9
14
11
9
24
12
14
9
12
10
22...
McKinsey & Company | 24
Two different versions of the
website for the same user for
two sessions 1 minute apart
Example: A...
McKinsey & Company |
On-line buyers are receptive to targeted marketing
25
Off-line buyers
On-line buyers2.7
2.9
2.1
2.5
A...
McKinsey & Company | 26
Text
www.cmsoforum.mckinsey.com
WWW
@McK_CMSOForum
www.youtube.com/McKinseyCMSOforum
marketingands...
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Digital consumer: Five major trends

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Retailers should note and adjust to five trends shaping the consumer experience: A 2nd big bang is taking shape and concerning personal and domestic equipment products; Smart phones are taking over the shopping experience; consumers "channel-surf" with increasing ease; Social is becoming a critical part of the buying journey; Big Data excellence is a critical capability for growth.

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Transcript of "Digital consumer: Five major trends"

  1. 1. McKinsey on Marketing & Sales – Slideshare Brief 20 June 2012 Any use of this material without specific permission of McKinsey & Company is strictly prohibited Five major trends in digital consumption: challenges and opportunities for retailers
  2. 2. McKinsey & Company | The McKinsey iConsumer panel offers a unique vision of web user behavior in 15 countries 1 15 countries + 100 000 participants qualified by socio- demographic criteria USA: 2008, 2009, 2010, 2011 Europe: 2010, 2011 ▪ Equipment, brands, models, service providers ▪ Usages and time spent: – communication – reading, browsing – searching – games – social networks – video, audio – on-line shopping ▪ Spending and attitudes
  3. 3. McKinsey & Company | 2 The 2nd Big Bang in e-commerce1
  4. 4. McKinsey & Company | 3SOURCE: McKinsey - iConsumer 2011 A 2nd big bang is taking shape and concerning personal and domestic equipment products1 Trend 2010-2011 2011 On-line searches¹ % of buyers on-line over the past 6 months, Europe Decoration Hygiene- beauty Food Furniture Shoes High-tech IT Clothing Books Office suppliesHousehold products Video games DVD / videos 0 5 10 15 20 25 30 35 40 45 50 55 60 65 0 5 10 15 20 25 30 35 40 45 50 On-line spending² % of on-line spending, Europe
  5. 5. McKinsey & Company | 4 10 7 15 13 21 27 25 14 24 46 41 52 41 47 Food Household products DIY Hygiene-beauty Shoes Furniture Office supplies Decoration Clothing High-tech Books DVD/Videos Video games IT 3 3 5 18 15 10 13 12 19 32 27 27 27 42 The share of purchases made on-line varies per category 1 Still in- store Already on- line Digital battlefield GB France SOURCE: McKinsey - iConsumer 2011 Share of purchases on-line over the past 6 months, per category (declared) 2011, Percentage, Europe
  6. 6. McKinsey & Company | The new consumer expectations 5 1 Categories Digital maturity Main drivers of on-line buying Digital battlefields Personal and domestic equpment Still in-store Food and household Already on-line Media and entertainment ▪ Price ▪ Availability ▪ Choice ▪ Experience ▪ Service ▪ Practicality ▪ Time saving
  7. 7. McKinsey & Company | 6 In 2011 42% In 2010 33% 2009 or before 25% SOURCE: McKinsey – Food survey in Spain, France and GB, Q4-2011, sample of 1500 persons per country 17% 28% 55% 1 Date of 1st on-line purchase of food Share of buyers of food on-line Some on-line markets are still very “young”
  8. 8. McKinsey & Company | 7 Mobile migration2
  9. 9. McKinsey & Company | 8 55 35 29 27 24 18 5 Smartphone Reader Basic telephone Laptop PC Tablet Desktop PC Television 2x SOURCE: McKinsey - iConsumer 2011 Smartphones are the first truly personal screens 2 Proportion of screens used “only for me” % of smartphone users, Europe
  10. 10. McKinsey & Company | Throughout Europe, tablet sales are rocketing 9 Tablet penetration ratio % of web users 15 1 20112010 2 Tablets are still primarily a tool for the home: 80% of connections were made via wifi¹ 11 3 17 4 20112010 16 5 22 3 16 3 14 2 18 5 SOURCE: McKinsey - iConsumer 2011 1 tablet connectivity mode, % of tablet users, Europe 2011
  11. 11. McKinsey & Company | 10 50% +22% 2011 2010 41% 12% 21% +75% 2011 2010 On-line searches¹ On-line searches on mobile phone² SOURCE: McKinsey - iConsumer 2011 Significant growth in on-line and mobile searches 2 Proportion of respondents who made on-line searches before an off-line purchase % of web users, Europe
  12. 12. McKinsey & Company | 11 Buying via a mobile is still in its infancy Mobile On-line SOURCE: McKinsey - iConsumer 2011 2 Purchased on-line Purchased via mobile High-tech DVD/video Books Video games IT On-line spending % of on-line spending, Europe 0 10 20 30 40 50 60 70 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 On-line searches % of on-line buyers over the past 6 months, Europe Video games High-tech DVD/Video IT Books
  13. 13. McKinsey & Company | 12 21 42 73 Other In-store Home 42% of the consumers queried carry out web searches on their mobiles in the store SOURCE: McKinsey - iConsumer 2011 8 15 27 33 3 8 12 13 21 23 24 34 Page of retailer/manufacturer on social networks Price comparison application Search for additional info. Scan the barcode User comments Photo of product SMS Coupon on mobile Visit site of another store Visit site of same store Professional comparisons Manufacturer’s site Location of search with mobile % of respondents carrying out searches on a mobile, Europe, N = 867 (2011) Penetration of activities on mobile % of persons searching on a mobile in the store, N = 363 (2011) In France: 46% In UK: 29% 2
  14. 14. McKinsey & Company | 13SOURCE: McKinsey Price searches via mobile phone influence buying behavior (declaration) 17 18 65 No impact Buys, but next purchase affected Puts off purchase or changes store 9 -1 -8 2 How does using a mobile change buying behavior? % Up on 2010 Down on 2010
  15. 15. McKinsey & Company | 14 The advent of multi-channel buying3
  16. 16. McKinsey & Company | 15 Choice of internet store as opposed to the store chains usually visited % of respondents, France SOURCE: McKinsey - iConsumer 2011 100% Always different Often different Sometimes the same Often the same The same site as physical store 8 5 36 28 23 Multi-channel (in)-fidelity “Faithful to traditional chains” “Open to the pure players” 3
  17. 17. McKinsey & Company | 16 The first 3 buying criteria in the store: contact with the product, verification of quality and pleasure3 SOURCE: McKinsey - iConsumer 2011 10 17 7 9 9 18 22 22 26 30 30 34Try / touch / feel Other Need within 48h Talk to sales staff No on-line payment Instant satisfaction Immediate need Practicality Easier to return item No delivery charges Pleasure of entering a store Verify quality Main reasons for buying in-store Percentage of respondents
  18. 18. McKinsey & Company | 17 The consumers praise the practical nature of multi-channel buying Share of consumers using the following services % of respondents 10 10 37 21 33 47 55On-line check on product availability in store Print coupon and use in store Buy on-line, collect in store Buy on line, return product to store On-line access to more detailed content, buy in store On-line personalization of the purchased product Book an appointment in the store 12 10 28 28 50 44 67 France N = 988 GB N = 976 3 SOURCE: McKinsey - iConsumer 2011
  19. 19. McKinsey & Company | 18 32 Buy on-line and collect in the store 42 Buy on-line and receive delivery at home 26 Either SOURCE: McKinsey 3 Example of food purchases in France % of on-line buyers, 2012 The consumer preferences concerning the practical aspect of multi- channel buying are different
  20. 20. McKinsey & Company | 19 A social iConsumer4
  21. 21. McKinsey & Company | 20 Facebook becomes a retailer portal 4 SOURCE: McKinsey - iConsumer 2011; web users aged 13 and over 34 25 20 1918 14 Follow retailers on Facebook % of Facebook members Most important Facebook information % of retailer followers, Europe 10 6 7 8 15 44 14 47 2 11 11 11 Info about sales / events User opinions Videos, photos, etc. Detailed product information Update of availability in store Promotions and coupons FranceEU5
  22. 22. McKinsey & Company | 21SOURCE: McKinsey - iConsumer 2011 36.7Opinion of other store users 31.4Website recommendations 31.5 Products test bench generated by the users 24.9 Recommendations from social networks 18.6Videos generated by the users 1 By weight of all the respondents Content generated by web users has become a major source of information prior to a purchase 20.7 29.2 31.8 35.3 49.6 France N = 988 GB N = 976 27% of consumers left an opinion on the web in Europe in 2011 4 Recommendations trusted by consumers % of consumers tending to trust the opinion1
  23. 23. McKinsey & Company | 22 Big data for bigger profits5
  24. 24. McKinsey & Company | 2323SOURCE: Bloomberg and Datastream; annual reports; McKinsey analysis 9 14 11 9 24 12 14 9 12 10 22 11 Income 1999-2009 (10YR CAGR) EBITDA 1999-2009 (10YR CAGR) Average for main competitors Example of best practice in client understanding Grocers Online retailers Big box retailers Casinos Credit cards Insurance 6 8 9 5 5 -1 2 -1 5 1 -15 3 A detailed picture of the customers is a crucial factor in making a difference Percentage 5
  25. 25. McKinsey & Company | 24 Two different versions of the website for the same user for two sessions 1 minute apart Example: Amazon.com permanently runs tests and analyses on large volumes of data to optimize the ergonomics of its website5
  26. 26. McKinsey & Company | On-line buyers are receptive to targeted marketing 25 Off-line buyers On-line buyers2.7 2.9 2.1 2.5 Acceptance of targeted publicity on the web Index 2.3 Financial situation Declared category Very modest Modest Average Well-off Very well-off Percentage of the population: 10% SOURCE: McKinsey - iConsumer 2011 35% agree to communicate information in return for discount vouchers 28% would like to see TV commercials adapted to their centers of interest 5
  27. 27. McKinsey & Company | 26 Text www.cmsoforum.mckinsey.com WWW @McK_CMSOForum www.youtube.com/McKinseyCMSOforum marketingandsales@mckinsey.com Eric Hazan Eric_Hazan@mckinsey.com @eric5555

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