Information transparency, michael paulson, sic, 2011 11 03

413 views

Published on

Published in: Technology, Business, Sports
  • Be the first to comment

  • Be the first to like this

Information transparency, michael paulson, sic, 2011 11 03

  1. 1. Information Transparency Empowering the Consumer CoupMichael PaulsonVP Product & Marketing, Decide
  2. 2. TRANSPARENCY
  3. 3. TRANSPARENCY
  4. 4. TRANSPARENCY:SHOPPING
  5. 5. Some things don’t changeShoppers want quality products at a great price,great customer service, convenient locations
  6. 6. Some things do change• An overwhelming number of shopping decisions + less free time to make those decisions.• New consumer pain points.• The way people shop.• The balance of power between manufacturers, retailers and shoppers.
  7. 7. MORE DECISIONS, LESS TIME
  8. 8. More decisions
  9. 9. …and that’s just offline. Online?
  10. 10. You’re gonna need a longer day
  11. 11. CHANGES: NEW PAIN POINTS
  12. 12. Pain point: Price volatility Sony 3D LED HDTV KDL-55NX810Source: Decide Data Vault
  13. 13. Pain point: Price Volatility $23,698,655.93Guess the price of this book
  14. 14. Pain point: Product obsolescence 15
  15. 15. Pain point: Information Overload“…the volume of data obscures more than it reveals;financial reporting has become so transparent as to beinvisible.” - Daniel Roth, Wired Magazine
  16. 16. CHANGES: HOW WE SHOP
  17. 17. How people shop The days of uninformed shopping are over • 70% of Americans now say they look at product reviews before making a purchase • 79% of smartphone owners now say they use their smartphone to help with shopping • 83% of moms say they do online research after seeing TV commercials for products that interest themSource: ZMOT: Winning the Zero Moment Of Truth, by Jim Lecinski, Google
  18. 18. How people shop
  19. 19. How people shop The average shopper used 10.4 sources of information to make a decision in 2011, up from 5.3 sources in 2010. Traditional 3-Step mental model New mental modelSource: ZMOT: Winning the Zero Moment Of Truth, by Jim Lecinski, Google
  20. 20. CHANGES: BALANCE OF POWER
  21. 21. Balance Of PowerTechnology is empowering shoppers by makinginformation more transparent.
  22. 22. Balance Of Power: Retailers’ POV • 55% of retailers say it’s getting too easy for consumers to find competitive prices • 55% of retailers say shoppers are better connected to information than store associates • 87% of retailers believe that shoppers can easily find a better deal using their mobile devicesSources: 1) Retail Systems Research, “Optimizing Price In A Transparent World” Benchmark Report, Nikki Baird andPaula Rosenblum, April 2011. 2) Motorola Solutions Annual Holiday Study, January 2011
  23. 23. Information Transparency (my definition) The information consumers need simply delivered when and where they need it
  24. 24. SHOPPING TRANSPARENCY:PRODUCT REVIEWS
  25. 25. Product review pioneers1936 1979
  26. 26. Product Information, then
  27. 27. Product Information, now“this toaster is junk and dangerous … our daughter burned herfingers on it. Its going in the garbage where it belongs.”“Weve had 3 fires in ours … stay away from this product unlessyou dont mind burning down your house/apartment.“One of the scariest things I have ever experienced.”
  28. 28. and speaking of burned fingers…
  29. 29. Product Information, now
  30. 30. Product Information, now • “My 6 year old was hurt within 5 min.” • “My 8 year old cousin broke his neck walking (not even bouncing) on these shoes ... the little boys life has been pretty dramatically changed.” • “My 7 1/2 year old daughter tried these on at a friends house yesterday. She had them on for about 2 minutes before she fell and got hurt. After a trip to the ER and the Orthopedic Surgeon, she has a fracture in her growth plate.“ • Dont be as stupid as me, and DO NOT buy this item. IM SERIOUS!!!!”
  31. 31. BUT WAIT … THAT’S NOT ALL
  32. 32. Here’s the good news• Most reviews are good (Avg = 4.3 / 5.0)• Bad reviews aren’t all bad• Socially engaged customers spend 30% more• Besides …the conversation is already going on
  33. 33. Most Reviews Are Good
  34. 34. SHOPPING TRANSPARENCY:PRICE
  35. 35. Price Comparison, then
  36. 36. Price comparison pioneers
  37. 37. Price Comparison, now
  38. 38. Unfortunately…
  39. 39. Concealment
  40. 40. Concealment
  41. 41. A cautionary tale
  42. 42. Concealment “Our results indicate … retailers pursue strategies to lower the quality of the data and thus the utility of product search … it is more than questionable whether ShopBots will ever create market transparency”Source: “SHOPBOTS AND INFORMATION QUALITY – RETAILERS’ STRATEGIES FOR PRICE CONCEALMENT” , Oliver Hinzand Tanja Frischmann, 2008,
  43. 43. For the first time, the advantage has tipped in consumers’ favor
  44. 44. Consumers and a wave of startups areinnovating to push the boundaries of information transparency
  45. 45. SHOPPING TRANSPARENCY:THE FRONTIER
  46. 46. Consumers
  47. 47. Room 77
  48. 48. Travel: Oysterhttp://www.oyster.com/hotels/photo-fakeouts/
  49. 49. Yelp Monocle
  50. 50. TRUEcar
  51. 51. PointInside
  52. 52. Decide
  53. 53. Decide
  54. 54. SO WHAT?
  55. 55. ConceivableAll shopping will soon be online
  56. 56. So What? Retailers• Your best customer is the one currently in your store – will you keep them?• Empower your sales associates (don’t tie their hands). – Provide access to product info and pricing via mobile devices – Have a policy around price comparison
  57. 57. What’s Your Policy?Source: RSR Research, Optimizing Price in a Transparent World
  58. 58. So What? Retailers• Your best customer is the one currently in your store – will you keep them?• Empower your sales associates (don’t tie their hands). – Provide access to product info and pricing via mobile devices – Have a policy around price comparison – Create a feedback loop• Standardize pricing online and in-store• Never refuse to tell your customers a price
  59. 59. So What? Manufacturers• What resources have you deployed toward ZMOT? Are you one of the 10.4 research sources?• Think of customer product reviewers as your extended marketing team.• Don’t force your retailers to conceal prices.
  60. 60. So What? All Brands• What resources have you allocated toward driving transparency vs. concealment?• Consider partnerships to help drive transparency in ways that will benefit your brand• Monitor your brand online, incl. mobile• Don’t fight your customers or the trend of transparency
  61. 61. Thank YouThe data scientists at
  62. 62. ?s

×