Consumer Behaviour – The Changes you Need to
Know about and How to Respond
Damien Bennett, NMPi
1
All human actions have one or more
of these seven causes:
1. Chance
2. Nature
3. Compulsions
4. Habit
5. Reason
6. Passion
7. Desire
-Aristotle
2
Areas of Focus
1. Increasingly complex
customer journeys
2. Greater customer
expectations
3. Changes in customer’s
interactions with brands
3
Research
Consideration
Purchase
1. Increasingly Complex Customer Journeys
Marketers have historically seen the customer journey as a funnel
• Broadcast
• OOH
• Prospecting display
• Generic search
• Retargeting
• Email
Customer Journey
Funnel:
Channel
4
In fact user journeys are complex and unpredictable
1. Increasingly Complex Customer Journeys
5
comScore (2015)
The majority of UK internet users use both desktops and mobile to go online
1. Increasingly Complex Customer Journeys
Desktop Only Multi-Device Mobile & Tablet Only
23% 72% 5%
6
Apadmi (2015)
11% of people in the UK shop in-store, via the website and via the app of their favourite
retailer
1. Increasingly Complex Customer Journeys
Store
App Website
11%
55%
2%
1%
22%
8%1%
7
When making purchases over £20, UK shopper currently use an average of 2.2 sources of
research
1. Increasingly Complex Customer Journeys
51%
22
%
17%
6
%
Retail Sites
Manufacturer Sites
Blogs
Social Media
Savvy (2015)
8
Mobile plays an important role in driving in-store revenue
1. Increasingly Complex Customer Journeys
36%
37%
Of consumers who are looking up
products on their mobiles
ultimately make their purchase in-
store
(xAd, 2015)
Of UK purchases which begin on
mobile convert in person
(xAd/Telmetrics, 2014)
9
Shoppercentric (2016)
Mobile activity plays a wider number of roles in people’s customer journeys
1. Increasingly Complex Customer Journeys
60%
52% 51%
49%
35%
28%
11%
Consider Inspiration Research Find Share Buy After Sales
Activities on Smartphone
10
Innovation becomes the norm increasingly quickly
2. Greater Customer Expectations
11
2. Greater Customer Expectations
Speed of delivery is essential to younger consumers
90%
86%
Of 18-24 year olds would shop online
more often if they were in control of
more convenient delivery options
Econsultancy (2015)
Of 18-24 year olds say that delivery
options are a key factor influencing
their choice of retailer when shopping
online
Econsultancy (2015)
12
Consumers abandon baskets for a variety of reasons
2. Greater Customer Expectations
54%
40%
33
%
30%
“Changed
mind”
Delivery costs
More
consideration
Check for
cheaper price
Yes, several times,
63%
Yes, once, 14%
No, 17%
I don't
remember,
7%
Percentagte of Consumers Abandoning Checkouts
eDigital Research (2015)
13
eDigital Research (2015)
64% of UK online shopper would purchase more if real-time support was readily available
3. Changes in Customer’s Interactions with
Brands
Yes, definitely, 18%
Yes, probably, 46%
Probably not, 19%
Definitely not, 1%
Don't know, 15%
Would you purchase more if real-time support was available?
14
Speed is cited by customers as the most important
3. Changes in Customer’s Interactions with
Brands
21%
23%
25%
46%
56%
68%
Contact in extended hours
Friendly agent
Single point of contact
Contact an agent instantly
Contact for free
Quick response
What are the most important criteria for
online customer service?
eDigital Research (2015)
15
eDigital Research (2015)
43% of live chat users expect a response within one minute
3. Changes in Customer’s Interaction with
Brands
7%
10%
21%
35%
43%
Email
Social Media
Web call back
Phone
Live chat
% of Consumers Expecting a Response Within One Minute
16
Ofcom (2015)
75% of UK internet users read online reviews
3. Changes in Customer’s Interaction with
Brands
76%
80% 80%
73%
76%
60%
58%
33%
47% 46%
39% 38%
25% 24%
16-24 25-34 35-44 45-54 55-64 65-74 75+
Reading and Writing Online Reviews by Demographic Group
Read Write
17
Areas of Focus
1. Increasingly complex
customer journeys
2. Greater customer
expectations
3. Changes in customer’s
interactions with brands
18
How to Respond
1.Understand our customer’s journey
2.Reach our customers with the right message
3.Meet customer expectations
4.Encourage positive advocacy
19
How to Respond
1. Introduce effective
measurement
2. Meet customer
expectations
3. Bring internal teams
together
20
Experian, April 2015
Most multichannel advertisers are still reliant on basic attribution methods
1. Introduce Effective Measurement
70%
30%
How do you attribute revenue to channels?
First or last touch Fractionally allocate
21
1. Introduce Effective Measurement
Simple Complex
• Not de-duped
• Inconsistent sources
• Last click wins
• De-duped
• Consistent source
• Last click wins
• De-duped
• Consistent source
• Attributed
• De-duped
• Consistent source
• Attributed
• Cross device
• Omnichannel
• Customer data
2 3 41
2222
In order for attribution to be successful solution to be effective it must:
1. Introduce Effective Measurement
 Be purpose-built for measuring the performance of media
 Be able to track all top media-driven channels, including Organic Search
 Allow both click and impression tracking
 Give full visibility of the top conversion paths
 Be able to provide granular detail on performance (i.e. keyword level for Paid Search)
 Be able to integrate with media management technology
£
23
Becoming Aware
Researching
In-Market
Re-engagement
1. Introduce Effective Measurement
• Reach
• Brand search uplift
• Ad Recall
• Social engagement
• New visitors
• Cost Per New Visitor
• Bounce rate
• Time on site
• Pages viewed
• Revenue
• ROI
• Store visits
• Per session value
• Lifetime value
Customer Stage KPIs
24
Forbes (2015)
79% of UK retailers have no way for customer to publicly rate and review their service
online
2. Meet Customer Expectations
Rate and review
service, 19%
No rate and
review service,
79%
Retailers With a Rate and Review Service
25
47% of adults say they have had an issuer with delivery over the past 12 months
2. Meet Customer Expectations
Yes, 47%
No, 53%
Over the Past 12 Months Have you Experienced Issues
With Delivery?
JDA (2015)
26
As internal teams we often behave like “The Blind Men and the Elephant”
3. Bring Internal Teams Together
27
To be successful we need to kill our internal silos
3. Bring Internal Teams Together
Target
Creative Brand Social Web Acquisition PR
CEO, CFO, COO
28
How to Respond
1. Introduce effective
measurement
2. Meet customer
expectations
3. Bring internal teams
together
Any Questions?

Consumer Behaviour: The Changes you Need to Know About and How to Respond

  • 1.
    Consumer Behaviour –The Changes you Need to Know about and How to Respond Damien Bennett, NMPi
  • 2.
    1 All human actionshave one or more of these seven causes: 1. Chance 2. Nature 3. Compulsions 4. Habit 5. Reason 6. Passion 7. Desire -Aristotle
  • 3.
    2 Areas of Focus 1.Increasingly complex customer journeys 2. Greater customer expectations 3. Changes in customer’s interactions with brands
  • 4.
    3 Research Consideration Purchase 1. Increasingly ComplexCustomer Journeys Marketers have historically seen the customer journey as a funnel • Broadcast • OOH • Prospecting display • Generic search • Retargeting • Email Customer Journey Funnel: Channel
  • 5.
    4 In fact userjourneys are complex and unpredictable 1. Increasingly Complex Customer Journeys
  • 6.
    5 comScore (2015) The majorityof UK internet users use both desktops and mobile to go online 1. Increasingly Complex Customer Journeys Desktop Only Multi-Device Mobile & Tablet Only 23% 72% 5%
  • 7.
    6 Apadmi (2015) 11% ofpeople in the UK shop in-store, via the website and via the app of their favourite retailer 1. Increasingly Complex Customer Journeys Store App Website 11% 55% 2% 1% 22% 8%1%
  • 8.
    7 When making purchasesover £20, UK shopper currently use an average of 2.2 sources of research 1. Increasingly Complex Customer Journeys 51% 22 % 17% 6 % Retail Sites Manufacturer Sites Blogs Social Media Savvy (2015)
  • 9.
    8 Mobile plays animportant role in driving in-store revenue 1. Increasingly Complex Customer Journeys 36% 37% Of consumers who are looking up products on their mobiles ultimately make their purchase in- store (xAd, 2015) Of UK purchases which begin on mobile convert in person (xAd/Telmetrics, 2014)
  • 10.
    9 Shoppercentric (2016) Mobile activityplays a wider number of roles in people’s customer journeys 1. Increasingly Complex Customer Journeys 60% 52% 51% 49% 35% 28% 11% Consider Inspiration Research Find Share Buy After Sales Activities on Smartphone
  • 11.
    10 Innovation becomes thenorm increasingly quickly 2. Greater Customer Expectations
  • 12.
    11 2. Greater CustomerExpectations Speed of delivery is essential to younger consumers 90% 86% Of 18-24 year olds would shop online more often if they were in control of more convenient delivery options Econsultancy (2015) Of 18-24 year olds say that delivery options are a key factor influencing their choice of retailer when shopping online Econsultancy (2015)
  • 13.
    12 Consumers abandon basketsfor a variety of reasons 2. Greater Customer Expectations 54% 40% 33 % 30% “Changed mind” Delivery costs More consideration Check for cheaper price Yes, several times, 63% Yes, once, 14% No, 17% I don't remember, 7% Percentagte of Consumers Abandoning Checkouts eDigital Research (2015)
  • 14.
    13 eDigital Research (2015) 64%of UK online shopper would purchase more if real-time support was readily available 3. Changes in Customer’s Interactions with Brands Yes, definitely, 18% Yes, probably, 46% Probably not, 19% Definitely not, 1% Don't know, 15% Would you purchase more if real-time support was available?
  • 15.
    14 Speed is citedby customers as the most important 3. Changes in Customer’s Interactions with Brands 21% 23% 25% 46% 56% 68% Contact in extended hours Friendly agent Single point of contact Contact an agent instantly Contact for free Quick response What are the most important criteria for online customer service? eDigital Research (2015)
  • 16.
    15 eDigital Research (2015) 43%of live chat users expect a response within one minute 3. Changes in Customer’s Interaction with Brands 7% 10% 21% 35% 43% Email Social Media Web call back Phone Live chat % of Consumers Expecting a Response Within One Minute
  • 17.
    16 Ofcom (2015) 75% ofUK internet users read online reviews 3. Changes in Customer’s Interaction with Brands 76% 80% 80% 73% 76% 60% 58% 33% 47% 46% 39% 38% 25% 24% 16-24 25-34 35-44 45-54 55-64 65-74 75+ Reading and Writing Online Reviews by Demographic Group Read Write
  • 18.
    17 Areas of Focus 1.Increasingly complex customer journeys 2. Greater customer expectations 3. Changes in customer’s interactions with brands
  • 19.
    18 How to Respond 1.Understandour customer’s journey 2.Reach our customers with the right message 3.Meet customer expectations 4.Encourage positive advocacy
  • 20.
    19 How to Respond 1.Introduce effective measurement 2. Meet customer expectations 3. Bring internal teams together
  • 21.
    20 Experian, April 2015 Mostmultichannel advertisers are still reliant on basic attribution methods 1. Introduce Effective Measurement 70% 30% How do you attribute revenue to channels? First or last touch Fractionally allocate
  • 22.
    21 1. Introduce EffectiveMeasurement Simple Complex • Not de-duped • Inconsistent sources • Last click wins • De-duped • Consistent source • Last click wins • De-duped • Consistent source • Attributed • De-duped • Consistent source • Attributed • Cross device • Omnichannel • Customer data 2 3 41
  • 23.
    2222 In order forattribution to be successful solution to be effective it must: 1. Introduce Effective Measurement  Be purpose-built for measuring the performance of media  Be able to track all top media-driven channels, including Organic Search  Allow both click and impression tracking  Give full visibility of the top conversion paths  Be able to provide granular detail on performance (i.e. keyword level for Paid Search)  Be able to integrate with media management technology
  • 24.
    £ 23 Becoming Aware Researching In-Market Re-engagement 1. IntroduceEffective Measurement • Reach • Brand search uplift • Ad Recall • Social engagement • New visitors • Cost Per New Visitor • Bounce rate • Time on site • Pages viewed • Revenue • ROI • Store visits • Per session value • Lifetime value Customer Stage KPIs
  • 25.
    24 Forbes (2015) 79% ofUK retailers have no way for customer to publicly rate and review their service online 2. Meet Customer Expectations Rate and review service, 19% No rate and review service, 79% Retailers With a Rate and Review Service
  • 26.
    25 47% of adultssay they have had an issuer with delivery over the past 12 months 2. Meet Customer Expectations Yes, 47% No, 53% Over the Past 12 Months Have you Experienced Issues With Delivery? JDA (2015)
  • 27.
    26 As internal teamswe often behave like “The Blind Men and the Elephant” 3. Bring Internal Teams Together
  • 28.
    27 To be successfulwe need to kill our internal silos 3. Bring Internal Teams Together Target Creative Brand Social Web Acquisition PR CEO, CFO, COO
  • 29.
    28 How to Respond 1.Introduce effective measurement 2. Meet customer expectations 3. Bring internal teams together
  • 30.