the evolving path to purchase MAR KETI NG MAST E R S 02.2012 08.
ouagenda es r servicWhere we’ve beenWhere we areWhere we’re goingKey learningsDiscussion time MAR KETI NG MAST E R S 02.2012 08.
wherewe’vebeen MAR KETI NG MAST E R S 02.2012 08.
blast from the past MAR KETI NG MAST E R S 02.2012 08.
when things were simplerWe’ve come from an environment where the customer was regarded as an amorphous mass, rather than an individual. MAR KETI NG MAST E R S 02.2012 08.
televisionWith television we could reach 70% of the Australian population by buying 7 and 9 during prime time MAR KETI NG MAST E R S 02.2012 08.
magazine 1 magazine, The Woman’s Weekly,had over 1,000,000 readers per month MAR KETI NG MAST E R S 02.2012 08.
press2 Daily Newspapers had very healthy circulations, driven by job classifieds MAR KETI NG MAST E R S 02.2012 08.
radioA couple of AM stations dominated radio - 3AW and 3KZ MAR KETI NG MAST E R S 02.2012 08.
local pressLocal press meant genuine local newspapers - not just real estate mags MAR KETI NG MAST E R S 02.2012 08.
so the path to purchase... ...was pretty simple - get the interest ofas many people as possible through main stream media, and hope that they’ll walk into a shop. MAR KETI NG MAST E R S 02.2012 08.
but there were some major problems There was no opportunity for an individual relationship with a customer. There was huge wastage in the media buy. I.E. If you were selling dog food, 40% of the Australian population own a dog, but 70% of people would see your ad on prime time = 30% wastage. No wonder Facebook shares are worth so much,because Facebook can deliver that one-one customer relationship = no wastage! MAR KETI NG MAST E R S 02.2012 08.
where we are MAR KETI NG MAST E R S 02.2012 08.
yesterday’s model For many years marketers have visualised the path to purchase as a linear equation, a simple journey from Awareness thru to Loyalty – with a few stops inbetween (evaluation / consideration etc). This now antiquated model assumes that in order to reach purchase behaviour the customer must travel through each stage of the path. So traditionally we use paid media to push people towards the final destination.awareness interest evaluation commitment loyalty MAR KETI NG MAST E R S 02.2012 08.
things have changed The reality is path to purchase is no longer linear. Instead it is a complex and integrated somewhat chaotic network.And it changes in real time (based on new information and customer engagement). It has multiple entry points and multiple exits, depending on the level of involvement required for the purchase decision. MAR KETI NG MAST E R S 02.2012 08.
today’s P2P Point of sale Ourdoor/ (Print) Mobile Mobile Txt/SMS Press (Paid) - QR codes Word of Mouth TVC Radio Magazine Social Media Online Vouchers (FB Twitter) APP ( iphone/ipad/ Advertorial web) Brand Website Service (Retailer) Forums Sampling/Demo/ BTL: Testing instore - Packaging - Shelf Space Print - Distribution Experience (brand/retail) Blogs Comparison Sites Way Finder DM PR eNews (loyalty) MAR KETI NG Events MAST E R S 07.002.2012 2.2012 08.
why has the path changed? The key driver of this change in path to purchase has been technology and its influence on our behaviour. Our demand for instant gratification and expression of our individualism means we engage our technology differently. But we all expect immediacy! We (as consumers) are demanding more & more from our brand relationships.And as a result we’re simply seeing a greater convergence between our technology and our shopping experience. MAR KETI NG MAST E R S 02.2012 08.
marketers need to catch upFrom a marketing perspective, this means we need to change our attitude to acknowledge and embrace the fact that our customers path to purchase has changed. Customers are engaging technology earlier & earlier in their paths to purchase.The decision to buy a new Canon HD digital camera is rarely being made at POS. Instead, people are arriving in store armed with more information than is offered by the retailer. Information from forums, blogs, product review, social media outlets – and all that is before they even land on the brand’s product page. MAR KETI NG MAST E R S 02.2012 08.
understanding the challengeThis may mean significant challenges for retail brands and our brands too.As to how / where we engage our customers, manage their expectations & how / where we communicate our brand’s experience. Let’s first consider the digital space – and the traditional use of our brand websites in the marketing mix. Traditionally we use our domains as a ‘hub’ of controlled content, information about what’s on, store hours, centre directories etc. And most marketers are trained to focus on driving traffic back to their website – from press, tv, outdoor, radio etc. MAR KETI NG MAST E R S 02.2012 08.
understanding the challenge However what we as marketers need to now accept and understand is that we no longer have exclusive control / ownership of our brand and its content. Consumers have just as much chance of engaging our brands in another space – social media, blogs, editorial, PR (in any number of ways as illustrated in the P2P web).So what we need to start thinking about is HOW do we enhance our brand’s experience outside of our paid media. How do we begin to influence the “non-paid” / social media spaces? We as marketers need to create a cohesive brand experience from our online to offline activity. From our paid to our non-paid activity. MAR KETI NG MAST E R S 02.2012 08.
the brand experience This is easier said than done. Even more so if those experiences are sometimes managed by different agencies they are rarely an extension of the same experience– and this can result in customer dissonance. And a less meaningful brand experience. Lets look at a brand that re-imagined its retail experience based on the evolution of their customer’s path to purchase. MAR KETI NG MAST E R S 02.2012 08.
nespressoNespresso has always been considered a low value FMCG brand. Its brand experience was always limited to supermarket shelves and other large format home retailers where it was inevitably judged purely on its price point. To reposition itself amongst its competitors, it decided not to compete solely on function (rational motivations) but on its fashionability (it’s customer’s emotive drivers) and by doing so helped redefined its customer’s experience, better controlling their path to purchase and creating a strategic competitive advantage for its brand. Let’s take a look at one of the Nespresso Boutiques. MAR KETI NG MAST E R S 02.2012 08.
website & blog MAR KETI NG MAST E R S 02.2012 08.
nespressoAs you saw, this brand (which was once considered the bottom end of the ‘coffee’ spectrum) has reconnected with their customers by re-shaping their marketing activity to engage their customer at a different juncture of their path to purchase. MAR KETI NG MAST E R S 02.2012 08.
the result This initiative from Nespresso is not about “selling” – yet their sales are up 300% on targets They are now an experiential brand who’s core marketing activity is simply to create a space to engage their customer. They’ve changed their marketing approach from a “push” to a “pull” strategy, where they are simply facilitating a relationship with an engaged customer.It is now a two way street (and like any relationship there needs to be benefits for both parties). MAR KETI NG MAST E R S 02.2012 08.
our customerLet’s look at how we currently engage our customer on their path to purchase and where are efforts are currently focused. MAR KETI NG MAST E R S 02.2012 08.
QIC P2P C E NTRE IN CONNEC N ESS RE T I A O N AW MAR KETI NG MAST E R S 07.02.2012
QIC P2P C E NTRE IN Events Service Sampling/Demo Experience Point of Sale PR BTL CONNEC Brand Site App ESS Word of Mouth eNews (loyalty) Press Radio Social Media (Convo) N Magazine Blogs RE Forum/ T TVC DM/Print Reviews I A App O N AW MAR KETI NG MAST E R S 07.02.2012
filling in the gapsBased on today’s evolving path to purchase, what touch points can we identify where our customers are active, but our brand is not? MAR KETI NG MAST E R S 02.2012 08.
where we’re going MAR KETI NG MAST E R S 02.2012 08.
what does the future hold? So we’ve touched on the evolution of a consumer’s path to purchase. But what does the future hold?The long term future of retail lies with the Digital Native Generation (those born after 1985), who have been raised on pervasive technologies and will be the most connected retail consumers yet! MAR KETI NG MAST E R S 02.2012 08.
the 2011 oracle survey In July 2011 Oracle commissioned a survey of 19 to 23 year olds in the UK,France & Germany to examine their views on retail today and their expectations for retail in 2025. The report was presented at the last World Retail Congress and key findings suggest; • Digital Natives want a better multi-channel experience that facilitates seamless & connected interactions in a 24/7 environment • Technology is key to expediting the shopping experience & retail operations must be optimised in support of customer priorities • Stores are the channel of choice and will remain critical in the shopping experience of the future • Retailers need to make better use of actionable insight to target this group with personalised promotions & interactions. MAR KETI NG MAST E R S 02.2012 08.
flash forward So, let’s look into the not too distant futureand explore some examples of how we can expect to see greater convergence between the retail experience and our technology. MAR KETI NG MAST E R S 02.2012 08.
google wallet - how do we believe this effects the evolving Path 2 Purchase? - gimmick or game-changer? - is it really that different to Visa Pay Pass? - what is the financial benefit to the retailer?- if an entire Shopping Centre was to embrace and promote this technology, how would it influence the customer’s perception of the brand? MAR KETI NG MAST E R S 02.2012 08.
internet TVProviders: Google TV, Sony TV, SMART TV (Samsung), Telstra TBox, Apple TV, Fetch TV etc. Channels/Portals: YouTube, iView, Hulu, BPTV, etc. Advertising opportunties: pre-roll videos, banner indents/overlays, sponsored content. “As technology improves and the variety of content increases, Australia’s video content viewing habits are changing rapidly with more of us choosing to watch television online. While this sector is in its early days, internet TV is already reaching upwards of 12 million viewers per month according to comScore statistics, which represents a huge potential for advertisers within this emerging market.”**Internet TV Advertising Set To Soar, Madeleine Ross, B&T, Sept 19, 2011 MAR KETI NG MAST E R S 02.2012 08.
the connected vehicle MAR KETI NG MAST E R S 02.2012 08.
the connected vehicle - Over 90% of cars and trucks in the US now have anauxiliary input for hooking up smartphones, tablets and music players. - 11 million Pandora subscribers listen in their cars- 19 million satellite radio subscribers listen via units in their vehicles. MAR KETI NG MAST E R S 02.2012 08.
a few thingsto take home... MAR KETI NG MAST E R S 02.2012 08.
technology rules The convergence of technology and the retail experience are the main influencing factors on today’s path to purchase.Retailers need to embrace technology at a faster rate to keep up with customers. MAR KETI NG MAST E R S 02.2012 08.
lets get personal We are no longer talking about ‘consumer groups’. We are now talking to ‘the customer’. Everyone’s path to purchase journey is different,requiring a different relationship that need to be built with each customer. MAR KETI NG MAST E R S 02.2012 08.
branding, branding, brandingWith more and more touchpoints continuing to influence the path to purchase, consistent branding across the spectrum has never been more important. Seamless integrated brand experiences across Awareness, In Centre and Connection phases of the QIC path to purchase cycle will help achieve this. MAR KETI NG MAST E R S 02.2012 08.
discussion time MAR KETI NG MAST E R S 02.2012 08.