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The new smart customers - How they really buy and how we can address this
 

The new smart customers - How they really buy and how we can address this

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This slide deck presents the results of a Sapient internal study on consumer behavior during the purchase path and underlying information needs. Moreover, tools and ideas on how to enable connected ...

This slide deck presents the results of a Sapient internal study on consumer behavior during the purchase path and underlying information needs. Moreover, tools and ideas on how to enable connected consumer-brand experiences
over multiple channels are explained.

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  • An excellent Presentation! Thank you so much for sharing this with all of us. Could I kindly request a copy so that I can share some slides with my students. If so, please send it to r.irachande@googlemail.com. Many Thanks in advance!!!
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  • this is indeed an Excellent presentation! Could you send me a copy please? ritesh1215@hotmail.com. Thanking you well in advance
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    The new smart customers - How they really buy and how we can address this The new smart customers - How they really buy and how we can address this Presentation Transcript

    • The new smart customers How they really buy – And how we can address this Carmen Fehrenbach & Axel Rösgen euroIA 2010 – Paris – September 24th 2010 The New Smart Customer | euroIA 2010 – Paris | 1 http://www.flickr.com/photos/tao_zhyn/2450284882/
    • Axel Rösgen Carmen Fehrenbach Sr. Information Architect Information Architect Industrial Designer Psychologist Focus on Computational Design Focus on Media Psychology The New Smart Customer | euroIA 2010 – Paris | 2
    • The New Smart Customer | euroIA 2010 – Paris | 3
    • 7000+ passionate people The New Smart Customer | euroIA 2010 – Paris | 4
    • 30+ offices globally connected The New Smart Customer | euroIA 2010 – Paris | 5
    • Multi- DISCIPLINE The New Smart Customer | euroIA 2010 – Paris | 6
    • Clients The New Smart Customer | euroIA 2010 – Paris | 7
    • Agenda !   About us !   The new smart customers !   How they really buy !   Idea !   Research !   Decision !   Purchase !   After-purchase !   How can we address this !   Toolbox !   Show time !   Questions The New Smart Customer | euroIA 2010 – Paris | 8
    • THE NEW SMART CUSTOMERS The New Smart Customer | euroIA 2010 – Paris | 9
    • THERE ARE MILLIONS The New Smart Customer | euroIA 2010 – Paris | 10
    • AND THEY ARE ALL DIFFERENT The New Smart Customer | euroIA 2010 – Paris | 11 http://ken-jennings.com/blog/?m=200809
    • THE SHORTEST DISTANCE BETWEEN TWO POINTS IS NO LONGER A STRAIGHT LINE. The New Smart Customer | euroIA 2010 – Paris | 12
    • $/$-)*).. (*%)-).% )+$!,$%("* &"''(%')*% What used to be this…. !"#$!%# 2(//1. !"#$% -#.&)'-)/+ $/)'/ 2/30!+. *45) 0+#%')!, 1'/+. /0'#/%1 *.1' #'.3 &#'() /0'#/% *+!%, The New Smart Customer | euroIA 2010 – Paris | 13
    • Is now this .+'4-+#. '#(%& ,3&+4" /,."+)+4 #33 3&+4" !"#$%& %+23#$") -,5")*! +4) !&+3 6#%"0++5 +4-,4" '#(%& 1+*(*0" %+22"$%,#- 0*1) ,("2 ."2+) 3$+.*%() ,4)!(+$" /,"') 3+3 3$,4()#. '#(%&) (*(+$,#- !&+3 +4) '"0!,(" $"#. $"/,"'! $"#. 0-+7 /,"' 0#44"$ #. The New Smart Customer | euroIA 2010 – Paris | 14
    • Situations Customers get in touch with brands in various situations – be it relaxed at home or in a hurry while traveling. They may live in a big city or in a small town where the next retailer is miles away. The New Smart Customer | euroIA 2010 – Paris | 15
    • How customers really buy The New Smart Customer | euroIA 2010 – Paris | 16 16
    • The purchase path depends on different factors CULTURE urgency to buy the product shopping infrastructure personality preferences habits CIRCUMSTANCES attitudes everyday products PRODUCT information-intense products look-and-feel products The New Smart Customer | euroIA 2010 – Paris | 17
    • Spontaneous purchase There are different ways to shop for products. Sometimes we buy spontaneously, out of mere pleasure, not having realized that we wanted to have such a thing before. Sometimes we consider purchases more deeply: During the considered purchase we spend some thoughts on what to buy and we do some research beforehand. The New Smart Customer | euroIA 2010 – Paris | 18 http://www.flickr.com/photos/37504045@N00/237947864
    • Considered purchase: criteria My new camera: !   easy to carry around !   takes great photos !   telephoto and wide-angle lens !   manual shutter speed and aperture !   rechargeable, but also works with normal batteries The New Smart Customer | euroIA 2010 – Paris | 19
    • Research process !  visited small stores and big chain retailers !  spoke to staff and tested in-store !  read consumer magazines !  spent 10 hours online: price comparison, manufacturer websites, product details online !  borrowed a camera and tested it !  blogged about the experiences The New Smart Customer | euroIA 2010 – Paris | 20
    • Decision & purchase The New Smart Customer | euroIA 2010 – Paris | 21
    • After-purchase !  Used and evaluated the camera !  Recommended the camera to others online or in real life !  Stayed in touch with the brand and the retailer The New Smart Customer | euroIA 2010 – Paris | 22
    • The purchase process Idea After- Research Purchase Purchase Decision The New Smart Customer | euroIA 2010 – Paris | 23
    • Purchase paths &'()' -."'$"/% 0/)+,(*% )%*%()+, )%*%()+, !"#$"% '(#$ %&#$ !"#$ (%#$ *'#$ )(#$ !11#$"% Forrester 2009, Depicting European Shoppers’ Complex Purchasing Decision Path The New Smart Customer | euroIA 2010 – Paris | 24
    • The purchase process: Idea Idea After- Research Purchase Purchase Decision The New Smart Customer | euroIA 2010 – Paris | 25 http://www.flickr.com/photos/kubina/1497679352/
    • Need identification How did you get the idea for the purchase? I needed it. 49% I wanted to have it (for a long time) 39% The old one was broken / is quite old 21% I saw someone else with it 8% I saw it in a store / shop window 6% I saw an online advert 4% I saw an offline advert 4% 0% 10% 20% 30% 40% 50% SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 26
    • Specificity of product vision How specific was your initial idea of the product in your opinion? 30% My criteria: 25% !   easy to carry around !   takes great photos 20% !   telephoto and wide-angel lens !   manual shutter speed and aperture 15% !   rechargeable, but works also My criteria: with normal batteries !   a good camera 10% 5% 3% 3% 7% 10% 28% 21% 29% 0% not at all 2 3 4 5 6 very specific specific SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 27
    • The purchase process: Research Idea After- Research Purchase Purchase Decision The New Smart Customer | euroIA 2010 – Paris | 28 http://www.flickr.com/photos/andercismo/2349098787/sizes/l/in/photostream/
    • Product types Consumer electronics Computer hard- & Travel software Mobile phone or accessories Clothing and footwear Media and leisure Furniture Beauty, cosmetics Food and health The New Smart Customer | euroIA 2010 – Paris | 29
    • Information gathering SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 30
    • Computer hard- and software Online reviews Manufacturer's websites Product ratings Compare descriptions Price comparison engines Looked at products in-store Online test results Spoke to others Advise from staff Ordered online and tested Description of resellers Consulted forums / chats Borrowed from others and tested Trade or consumer magazines It is about information Hotline 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 31
    • Clothes and footwear Looked at products in-store Manufacturer's websites Price comparison engines Product ratings Online reviews Compare descriptions Advise from staff Description of resellers Spoke to others Ordered online and tested Online test results Consulted forums / chats Trade or consumer magazines Borrowed from others and tested It is about look and feel Hotline 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 32
    • Travel Price comparison engines Compare descriptions Online reviews Product ratings Manufacturer's websites Description of resellers Online test results Hotline Spoke to others Consulted forums / chats Looked at products in-store Ordered online and tested Trade or consumer magazines Borrowed from others and tested It is about price Advise from staff 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 33
    • More online information gathering What else did you do to be able to make your decision? I searched department stores I emailed the Browsed the Dell online to see where I could find reseller asking for Outlet store and the same boots for the best further detail on signed up for their price. (Bought Frye Boots.) the product. offers program. (Bought herb pots.) (Bought a laptop.) I compared which websites had free shipping. (Bought a stand I looked at different aggregators for gardening equipment.) websites (Expedia and Opodo). Their user experience is different and it gave I watched for Video reviews on me information to refine my results. e-mail deals Youtube is super (Bought flight London-Sydney.) from airlines, helpful. (Bought specifically printer/scanner/ I watched the product and similar spirit air. copier.) products on eBay auctions to compare (Bought a price difference for new vs. used travel.) products (Bought a Therm-A-Rest camping matress.) The New Smart Customer | euroIA 2010 – Paris | 34
    • More offline information gathering What else did you do to be able to make your decision? I created a list of all my options - prices, dates, places covered and I got home demos from prioritised them. (Bought a manufacturers (Bought holiday to Jordan.) home water purifier system.) I also photographed the products and scanned the Watched television shows barcodes to locate pricing on dedicated to gadgets and the web that could beat the mobile phones. (Bought an physical store. (Bought HTC Desire.) socks.) Open Question in SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 35
    • 45% SapientNitro online survey August 2010 of respondents to the Consumer Commerce Barometer study sometimes check availability online before going to the store. Consumer Commerce Barometer 2010 The New Smart Customer | euroIA 2010 – Paris | 36
    • 23% of respondents to the Consumer Commerce Barometer study have taken printouts of product information to the store. Consumer Commerce Barometer 2010 The New Smart Customer | euroIA 2010 – Paris | 37
    • 80% of smart-phone owners in our survey have used their mobile phone in-store to retrieve product information. SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 38
    • Dark figure Some respondents also reported to have taken photos in fitting rooms to continue their research online later. SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 39 39 http://lh3.ggpht.com/_eN9tzgso-m0/S3k81g8DNQI/AAAAAAAAIpY/fwN9hLEpEaY/s720/F.P.HoseNeu3.JPG
    • Dark figure On the internet consumers also blog their pictures to share their experiences and get other people’s opinions. The New Smart Customer | euroIA 2010 – Paris | 40 http://lealoves.blogspot.com/2008/07/akute-shoppingunlust.html
    • The purchase process: Decision Idea After- Research Purchase Purchase Decision The New Smart Customer | euroIA 2010 – Paris | 41 http://farm1.static.flickr.com/172/378441879_621a7c7782_z.jpg?zz=1
    • Ease of decision: Products 100% 90% 80% easy to decide 70% 60% 50% so so 40% 30% 20% difficult to decide 10% 0% ar es re nic s e re re el ot we ori isu tro om itu wa rav ss &L e lec &H rn oft T / fo cce ia re se Fu &s ng ra ed Ho u - thi eo M me ard C lo on on su rh ph C ute ile om p M ob C easy to decide medium difficult to decide The New Smart Customer | euroIA 2010 – Paris | 42
    • Most helpful for making a decision Price comparison engines To see and test the product Personal recommendations and advice from friends and Chats and Forums family Reviews and Trust in Product In-store Ratings comparison demo the brand Advice from Consumer store staff Demo videos magazines Calling Detailed Good pictures from customer care. product multiple perspectives. information The New Smart Customer | euroIA 2010 – Paris | 43
    • The purchase process: Purchase Idea After- Research Purchase Purchase Decision The New Smart Customer | euroIA 2010 – Paris | 44 http://www.flickr.com/photos/srs0001/4562512283/
    • Reason for purchase channel Online Offline The best price. I could see and test the product. Ease of delivery. Great assistance by staff. No pressure by sales people. No delivery times, I don’t have to wait. It was not available in-store. It was the easiest. It was the closest. Avoided the lineups. 24 / 7 It was on sale. I had a voucher. I had a voucher. I got a discount. More choice. In India: So I know what I get. Open Question in SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 45
    • 90% of respondents in the Sapient internal study report that they have already used price comparison engines. SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 46 SapientNitro online survey August 2010
    • 24% find arranging suitable delivery times difficult. 42% find returning items inconvenient. 38% think that shipping cost is too expensive. Consumer Commerce Barometer 2010 The New Smart Customer | euroIA 2010 – Paris | 47 https://www.dpd.com/de/content/download/763/7406/image/DPD_Bildmotiv_Zustellung_2C_02.jpg
    • 23% have already reserved an item online and picked it up in-store. Consumer Commerce Barometer 2010 The New Smart Customer | euroIA 2010 – Paris | 48 http://www.flickr.com/photos/brackch/4351273998/
    • The purchase process: After-purchase Idea After- Research Purchase Purchase Decision The New Smart Customer | euroIA 2010 – Paris | 49 http://www.flickr.com/photos/sambhusankar/4218337610/
    • After purchase Have you ever done one of the following… ? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Rated a product Rated a service Written a service review often Written a product review sometimes once or twice Open Question in SapientNitro online survey August 2010 The New Smart Customer | euroIA 2010 – Paris | 50
    • The purchase process: Lessons learned Intrinsic triggers. All you need to do is make them stay! Idea Engage your customers and make them help you. The right formula for After- every product – be it Research information, mood, Purchase look & feel or ratings Bring the information of Trust. Purchase Decision both worlds together to Good prices. enable decision making Fast and flexible delivery. The New Smart Customer | euroIA 2010 – Paris | 51
    • How can we address this? The New Smart Customer | euroIA 2010 – Paris | 52
    • CREATE RELEVANCE The New Smart Customer | euroIA 2010 – Paris | 53
    • Golden circle Why? How? What? by Simon Sinek The New Smart Customer | euroIA 2010 – Paris | 54
    • Continuous process The New Smart Customer | euroIA 2010 – Paris | 55
    • Toolbox The New Smart Customer | euroIA 2010 – Paris | 56 http://www.flickr.com/photos/ctreadway/3607458841/
    • KNOW YOUR SYSTEM AND PROCESSES The New Smart Customer | euroIA 2010 – Paris | 57
    • A great team *0#". !"#$%&'() /01.2(& 8#0+6&'"3 9#$6) 42)&1560,76$#&'1") 9&106 42)&1560,-<=60'6"(6 *'$$'"3 :0#"(;')6 *#(+,-". >13')&'() 41"&6"& The New Smart Customer | euroIA 2010 – Paris | 58
    • KNOW YOUR CUSTOMERS The New Smart Customer | euroIA 2010 – Paris | 59
    • Well known sources Surveys Interviews Customer segmentation Focus Groups Testing Field studies The New Smart Customer | euroIA 2010 – Paris | 60
    • Web analytics Web analytics helps you to understand the behavior of your customers: Know where they come from, track the buzz around your brand, products or services on Twitter, check if your conversion funnel works well. The New Smart Customer | euroIA 2010 – Paris | 61
    • MODEL THE EXPERIENCE The New Smart Customer | euroIA 2010 – Paris | 62
    • Personas Extend your Personas: Think about their online behavior and their touchpoints with your brand: This could be local retailers, the call center or your Facebook page – they will always leave their marks and shape the brand experience. The New Smart Customer | euroIA 2010 – Paris | 63
    • Customer journeys The New Smart Customer | euroIA 2010 – Paris | 64 Buckminster.be
    • More deliverables Mental Model Experience Map Service Blueprint Touchpoints Matrix The New Smart Customer | euroIA 2010 – Paris | 65
    • Show time The New Smart Customer | euroIA 2010 – Paris | 66 http://www.flickr.com/photos/st3f4n/2769915203/
    • BE HONEST The New Smart Customer | euroIA 2010 – Paris | 67
    • Shared customer experience Juicystar01 has nearly 500,000 subscribers and over 25 million channel views on YouTube. She presents the results of her latest shopping tour on YouTube in short videos – a user generated product test channel. The New Smart Customer | euroIA 2010 – Paris | 68
    • Integrate the user Talbots.com integrates user generated content on their website: Users provide stories on the products and situations in their life Won Best in Class award for eCommerce @ interactive media awards 2010 Q2. The New Smart Customer | euroIA 2010 – Paris | 69
    • IT’S ABOUT CUSTOMER EXPERIENCE The New Smart Customer | euroIA 2010 – Paris | 70
    • Share happiness Award-winning ice ‘vending’ machine for Heart brand (better known as Wall’s or Langnese in local markets): Smile and you get an ice cream for free! Probably not the best way to make money, but very effective to create happy customers who share their experiences with your brand on Facebook and among their friends. 71 The New Smart Customer | euroIA 2010 – Paris | 71
    • CONNECT THE CHANNELS The New Smart Customer | euroIA 2010 – Paris | 72
    • This is a music video Music video for the spring summer collection of Diesel and also the entry point for the online shop. Hovering on the people reveals interactive elements. Clicking on those opens a preview of the respective item. Created by Anomaly and Stink Digital The New Smart Customer | euroIA 2010 – Paris | 73 http://www.diesel.com/ahundredlovers/
    • Put it in the right place Future vision by Notion Design Interactive experience on a device that suits best the customer’s current situation. The New Smart Customer | euroIA 2010 – Paris | 74 http://www.designbynotion.com/metamirror-next-generation-tv/
    • Extend your offline store Create an online presence of an offline store. This can be achieved by creating a white label solution that is later branded by the local retailer. The solution can be used online or as self service kiosk in store. In contrast to pure online shops provide additional information, e.g. on your special focus. Your online recommendations and reviews will be experienced as coming from a renowned and trusted expert your clientele knows from real life. Furthermore provide local activities to tie the customer to your store (e.g. readings). Make him return not only because of the content he can purchase - he could do that also at Amazon. The New Smart Customer | euroIA 2010 – Paris | 75 http://www.flickr.com/photos/macinate/2016365041/
    • Your online team This could be your online team. It’s important for your staff to know both worlds. Use your staff as a direct feedback channel to your online self service system. The New Smart Customer | euroIA 2010 – Paris | 76 http://www.flickr.com/photos/bike/3983843569/
    • IN STORE EXPERIENCE The New Smart Customer | euroIA 2010 – Paris | 77
    • Intelligent signage A short user journey A customer walks by the store front and discovers an interactive ‘window’ with product information on featured products – 24 hours a day / 7 days a week. The New Smart Customer | euroIA 2010 – Paris | 78 © 2010 SapientNitro and Designaffairs
    • Interactive mirror A short user journey (continued) She finds a jacket and has a look at herself in a mirror. She swipes the badge of the jacket on the mirror and gets information on the item and on related articles. She tries on one of the suggested trousers. Unfortunately it is too big but the correct size is available in the online store. She adds the trousers to her virtual shopping basket. The New Smart Customer | euroIA 2010 – Paris | 79 © 2010 SapientNitro and Designaffairs
    • Mood box A short user journey (continued) In the changing room she is provided with different ambiences. She finds herself immediately transferred into her next hiking trip in the mountains. The New Smart Customer | euroIA 2010 – Paris | 80 © 2010 SapientNitro and Designaffairs
    • CONTEXT IS KING The New Smart Customer | euroIA 2010 – Paris | 81
    • Augment your information Which items fit in this bag? taschenkaufhaus.de not only shows the measurements of the bag but also views from different angles and the bag in context with a person’s silhouette, so the customer can understand the size relations. The New Smart Customer | euroIA 2010 – Paris | 82 http://www.taschenkaufhaus.de/
    • Provide contextual tools Ionos’ Mobile app for iPhone and Blackberry focuses on the special context of a person at an airport. The user can retrieve information that is relevant in this situation, such as flight status and real-time change alerts, parking lot availability, gate information and maps, security waiting times and concessionaire listings (including user ratings). The user can also retrieve information on ground transportation options, baggage claim locations and local weather conditions, which become relevant after arriving at the destination. Ionos: Mobile app for iPhone and Blackberry The New Smart Customer | euroIA 2010 – Paris | 83
    • TRACK CONVERSION The New Smart Customer | euroIA 2010 – Paris | 84
    • Web analytics Vouchers available online bring your customers into the store and allow you to track online-to- offline conversion: A unique QR code on the detail page of a certain product can be saved as a bookmark. Revealed in store the customer gets a free cup of coffee with some cookies in return – and you know what website the customer visited at home that made him come here. The New Smart Customer | euroIA 2010 – Paris | 85 http://www.flickr.com/photos/arcadiaphotographicuk/4883308302/
    • Smart targeting Smart Targeting by SDL Tridion matches search terms used by visitors to display relevant results. Thus you know where your visitors come from – be it Google, Facebook, Twitter, your search marketing campaigns or affiliate websites – and enables you to create an intelligent and dynamic CMS. The New Smart Customer | euroIA 2010 – Paris | 86 http://www.flickr.com/photos/davepearson/537557306/
    • Wrap up The New Smart Customer | euroIA 2010 – Paris | 87
    • Wrap up Know your customers and their current situation Know their needs in each phase of the purchase process Know your system and processes Focus on the why and create relevance for the customer Align your information and offerings Connect the channels and track the paths Create a connected customer brand experience The New Smart Customer | euroIA 2010 – Paris | 88
    • Sources and recommendations !   Books !  Underhill, P. (2008). Why we buy: The science of shopping. Simon & Schuster. !  Schwartz, B. (2005). The Paradox of Choice: Why More Is Less. Harper Perennial. !   Reports and studies !  Fehrenbach, C. & Rösgen, A. (2010). How the customer really buys. Sapient internal online survey on consumer behavior (internal resource). !  Camus, L., Freeman Evans, P., Klevchuk, O. & McGowan, B. (2009). Depicting European shoppers' complex purchasing decision path. Forrester. !  Freeman Evans, P., Camus, L. & McGowan, B. (2010). Trends 2010: European retail eBusiness and channel strategy. Forrester. !   Online resources !  Consumer Commerce Barometer: consumerbarometer.eu !  Sinek, S. (2010). The Golden Circle TED presentation: http://www.startwithwhy.com/#video1 The New Smart Customer | euroIA 2010 – Paris | 89
    • THANK YOU! www.sapientnitro.com Twitter: @sapientnitro facebook.com/sapientnitro aroesgen@sapient.com cfehrenbach@sapient.com The New Smart Customer | euroIA 2010 – Paris | 90