Before taking any strategic decision, we have to understand what is going on with our fast changing customers. Then it becomes more easy to adapt our priorities. Here are some clues and my vision of the ME market.
3. Purchase behaviour 2015
Introduction
Globalization and a worldwide crisis has brought apparent
transformations in purchase behaviour
Shifts in market trends due to a fast changing
customer : marketers, Brands and retailers have to update their strategies
Companies are dependent on the economic trends,
politics and sharehorlders but now there is somebody much more
powerfull, who can fire everybody, from the employee to the CEO in a few
weeks...
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4. Purchase behaviour 2015
Introduction
He has survived an economic crisis,
he is coming back, stronger, faster and smarter…
the CONSUMER 3.0 !!
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5. Purchase behaviour 2015
The consumer
Before
Now
The « consum’actor » is born
(or ethic consumer)Bastien RENAULT 5
6. Purchase behaviour 2015
Reasons
Social evolution
from « Cocos » to « Momos »
Media evolution
one media completely changed the relationship between
companies and customers
It created the « LATERAL POWER »
« Purchasing is voting »
INTERNET
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7. Purchase behaviour 2015
Reasons
A real social and psychological need
« I share therefore I am »
Need to be reassured by the community
Nobody listens to clients in digital life (just spy)
Listen to them and you will fullfill in the same time social and
commercial expectations
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8. Purchase behaviour 2015
New values
New expectations
New marketing rules
New actors
New purchase media
New cross-channel purchase
Consequences
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9. Purchase behaviour 2015
Consequences
New values
a Momo does not buy a product, he buys a value, a spirit and all the
DNA in the product. So where he buys and to whom he is buying is
now important, then what and how much
New expectations
brought by social networks and real life new values :
sharing, transparency, permanent connectivity, intimacy democratisation and
truthfull interactivity (expecting a real relationship, not only a « trade-
interested relation ».
In this 2-way process, they expect more consideration, respect and attention
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10. Purchase behaviour 2015
Consequenses
New marketing rules
- Forget classic demographics segmentation
- Understand the new « taste communiting »
- Understand convenience client’s expectations
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11. Purchase behaviour 2015
Consequences
New actors
Sharing changed the references : Wiki, Google, Trip
Advisor, I-Tunes…Death of the traditionals
(Encyclopedia Brittanica, music industry...)
New purchase media
And payment technologies (flow, m-payment…)
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12. Purchase behaviour 2015
Consequences
New cross-channels purchase
Customers are using several channels just for the shopping experience
convenience
Online presence helps consumers to access to a product, read reviews
and compare prices with other products online. They use the internet for in-
depth research before going on a product and they need to find reviews
from friends and social media
Deep mistrusting toward companies communication
( trend shared by Momos and Yoyos avoiding manipulation in trading
relationship)
The « Clic & Mortar » process is a classic
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13. Purchase behaviour 2015
Core value strategy
E-marketing
Community creation
Loyalty program
CRM
Operation manager
Customer service
Payment technologies
Adaptated answers
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14. Purchase behaviour 2015
Adaptated answers
Core-values strategies
Like a human, a company must have :
- a global ethic (CSR, Sustainable development, footprint reduction,
fair attitude...)
- social business linked to the main activity
- should be a real effort (green washing for ex is a fatal error )
A charter and honest behaviour
this is not incompatible with a commercial activity
Traditional wall gets thinner between social and business world
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15. Purchase behaviour 2015
Adapted answers
E-marketing
- based on a quality parameter, not quantity
( less usefull because of multi-sollicitations, multi-media…)
- with customized services to the « community »
- to increase customer’s convenience
Corporate website is now a hub and essential key.
Marketing strategies are reducing the « Push » to get toward a Pull approach
(customers are now coming to the brand)
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16. Purchase behaviour 2015
Adapted answers
Community creation
hosting a forum, a meeting point for customers opinions...
A risk a company has to take
« Closing the eyes will not remove the sickness »
Allow them to be transmitters, not only receivers
Be alive on social networks
- always updated
- always reachable
- always reactive
- always following
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17. Purchase behaviour 2015
Adapted answers
Create a blog
- reassure
- reference
- contextualize
According to a Custom Content Council survey, 61% of consumers say they feel
better about a business that offers custom content and, in turn, are more likely to buy from
that company.
As it changes everyday, it improves Google referencing( SEO)
Blogging is one of the easiest and most effective ways to form a connection with prospects
and customers. They can review your content at their leisure and then
contextualize it to their individual situation.
« content plus context = connection »
What is a content ? Anything that will answer a question that your prospects have, or help them
resolve a want or a need.
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18. Purchase behaviour 2015
Adapted answers
Loyalty program
In order to show your customer that you are considering him,
recognizing what he is doing for you.
He must be proud to buy your products
You should be proud that he came for you
« Keep and please your fans before trying to catch new ones »
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19. Purchase behaviour 2015
Adapted answers
CRM (Customer Relationship Management )
« the better you know your customer,
the more able you are to tailor the offer »
He gives so many informations and oftenly
companies are missing a large part
« It takes only 2 years to learn how to speak
but one entire life to learn how to listen » Confucius
A CRM software is essential to data mine customers informations
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20. Purchase behaviour 2015
Adapted answers
Operations manager
To make so that Brand’s promises are real
and practical for your customers, you need a good Operations Manager
to implement them and so reduce the gap between rhetoric and reality
« Operations manager sleepy, customer service busy »
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21. Purchase behaviour 2015
Adapted answers
Customer service
It is an essential link between a company and its customers
Should be organized in a 2-way communication process in order to
maintain a real relationship with the customer
A CS is not only made to receive clients complaints but also to listen to
their wishes, collect them and give some informations or rewards…
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22. Purchase behaviour 2015
Adapted answers
Client-facing staff
They are the image of your company !
So they must be made aware of the corporate’s values,
adopt them, become them…
And of course well-trained
At a human level also, quality is more important than quantity
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23. Purchase behaviour 2015
Adapted answers
Payments technologies
Be e-payment and m-payment ready
Be trustable (security)
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24. Purchase behaviour 2015
UAE specificities
Overall trend
In-store purchase
On-line purchase
Mobile purchase
Multi-channel purchase
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25. Purchase behaviour 2015
UAE specificities
Overall trend
People in the UAE were known (or seen) for their exuberant lifestyles,
catching up with latest trends, buying new phones, cars or designer clothes.
Living within the means is something unheard of. But a recent survey has
shown that behaviour is changing, people are becoming more conscious
about how they spend their money. (Dunia Finance Study after crisis)
Purchase is more TOUGHTFULL and RATIONAL. There are still three
caracteristics that a product must have here, it has to be :
- NEW
- IMPROVED
- CUSTOMIZED if possible
(common expectations in large cities worldwide)
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26. Purchase behaviour 2015
UAE specificities
About the core values
Here also you will have to attach values in your corporate speech.
And you will have to inser primarily customer-oriented values (like sens of
service, customization, convenience...) more than ethic or green ones. Even
if CSR expectations are increasing in ME, it is just the beginning and not
yet the first priority. This will change quickly with arrival of 2020 Expo
and Masdar city.
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27. Purchase behaviour 2015
UAE specificities
In-store purchase
The classic and more important channel (99,43 % of the incomes, cf T-
Index 2012). It has the advantage of offering a personal welcoming
experience and a product immediately delivered.
A more assisted and tailor-made purchase process, adapted to locals
expectations
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28. Purchase behaviour 2015
UAE specificities
On-line purchase
- high internet penetration rate (70%)
- only 0,57% of the global trade income is on-line (cf T-Index 2012)
(America is 22,5%, China 13,5% with a 40% internet penetration rate…)
E-retail in the UAE face stiff competition from shopping malls and is
trying to attract consumers to increase the rate.
« Online shopping sites should complement in-store shopping and
not compete with them here » says Tejury CEO (largest online Mall)
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29. Purchase behaviour 2015
UAE specificities
Mobile purchase
- best smartphone penetration rate in the world
(74% of the population and 100% expected, Ref OurMobilePlanet report 2013)
- mobile internet will overtake fix internet in 2015 (Ref IMRG)
Only few businesses have mobile communications
strategies
- 80% of users have clicked on an advertisement or looked for more
informations on a product
- 58% of users had visited a business after performing a search on their
smartphones
- 68% had made a purchase transaction on their smartphones in
the last month...
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30. Purchase behaviour 2015
UAE specificities
Multi-channel purchase
As everywhere else in the world, UAE citizens are
cross-channel buyers because looking for more
convenience
Marketers have to deal with a local difficulty : the
multi-ethnic population
E-marketing and Multi-channel allows to penetrates culturally
segmented niches
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31. Purchase behaviour 2015
Conclusions
Customers behaviours are changing much faster than years ago. The goal is to
observe all these shifts, define a direction and try to reach it.
« There is no good wind for the sailor
who does not know his home port »
A recent world economic storm sank many companies, the goal for the
remaining ones is to stay in the race becoming better. When you understand a
customer or identify a trend, you are much stronger and efficient in retailing.
Shopping experience and services provided are as important
as the product in itself
In Dubai more than elsewhere, you always have to stay in motion
« In the storm, only stationary boats sink »
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32. Purchase behaviour 2015
Conclusion
The secrets
- Transform your customers in fans or addicts !
- Be like your fans : Connected and Concious
- Keep tracking fans social trends
need to be listened to
need to have « convections » with brands
- Be structured to be able to fullfill your fan’s social
and commercial needs
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