SlideShare a Scribd company logo
Consumer Decision Making
   in the digital realm



                          IIM Bangalore
                          27th July, 2012


www.twitter.com/akshatk
Needs & Wants




www.twitter.com/akshatk
Needs & Wants




www.twitter.com/akshatk
Gone in 60 seconds




www.twitter.com/akshatk
 Slide 4
Consumers are making informed decisions




www.twitter.com/akshatk
Introduction
 โ€ข Media outposts have multiplied and they don various
   roles sometimes interchangeable
 โ€ข Brands have evolved. They are embracing new media.
   They want to be present at every touch point
   consumer has access to.
 โ€ข Consumers are smarter and more informed. They rely
   on multiple information sources before they make a
   purchase decision.

 And hence brands and marketers are increasingly
 putting consumers at the heart of everything they do
www.twitter.com/akshatk
3 key themes:

1. A business problem is a behavioural change
   in disguise




www.twitter.com/akshatk
At the heart of every business problem today is an
opportunity to change consumer behaviour




- Even in those areas we previously struggled to impact

www.twitter.com/akshatk
Start with a clear, simple, granular problem
(N.B. these arenโ€™t easy to get to)
           THE PROBLEM


  -We need 1m users
  to buy 1 more pack a year each


  -Rate of sale is sky high but our
  distribution is a barrier to
  growth




www.twitter.com/akshatk
Then identify the behaviour you need
to change to make that happen
           THE PROBLEM                 THE BEHAVIOURAL CHANGE

                                      -We need to create one
  -We need 1m users to buy 1 more
                                      additional occasion a year for
  pack a year
                                      these users


  -Rate of sale is sky high but our
                                      -We need our fans to become our
  distribution is a barrier to
                                      distribution channel
  growth




www.twitter.com/akshatk
Move from โ€œniceโ€ sharing to โ€œsharing that
breaksโ€




www.twitter.com/akshatk
3 key themes:

1. A business problem is a behavioural change
   in disguise

2. Think about network insights, not (only)
   consumer insights




www.twitter.com/akshatk
www.twitter.com/akshatk
Thinking about network insights ensures we
understand why our target might participate
with our platform




 www.twitter.com/akshatk
And it ensures we know how to design experiences
to maximise the participation we need




                                      Source: Luke Wroblewski, The Impact of Social
                                      Models

www.twitter.com/akshatk
3 key themes:

1. A business problem is a behavioural change
   in disguise

2. Think about network insights, not (only)
   consumer insights

3. From โ€œthe single thing we want to sayโ€ to
   โ€œthe single thing weโ€™re going to make or doโ€


www.twitter.com/akshatk
The heart of every marketing
campaign/message/ initiative/โ€ฆ:




What is the single thing we want to say?




www.twitter.com/akshatk
But weโ€™ve establishedโ€ฆ.

Participation disrupts business models

Consumers ability to participate has the power to impact our
businesses in more profound ways than ever before

The solution to a much more diverse range of business problems
lies in changes to consumer behaviour

If we want to change behaviour, weโ€™re probably not going to be
talking at peopleโ€ฆโ€ฆ



www.twitter.com/akshatk
www.twitter.com/akshatk
What are we going to make or do that will enable the
behaviour we need to see?

www.twitter.com/akshatk
Hence

1.     A business problem is a             What do we need people
       behavioural change in disguise      to do?

2.     Think about network insights, not
                                           Why would they do it?
       (only) consumer insights            -what are their network
                                           motivations?
3.     From โ€œthe single thing we want to
                                           What are we going to
       sayโ€ to โ€œthe single thing weโ€™re
                                           make or do that will
       going to make or doโ€                enable them to do it ?


     www.twitter.com/akshatk
โ€ข GOAL OF BUSINESS
 โ€ข Sell stuff often

 โ€ข GOAL OF MARKETING
 โ€ข Influence consumers to buy stuff often




www.twitter.com/akshatk
What aids consumer decision making?
โ€ข CLOUT
  โ€“ The marketing that has the most clout is the
    marketing that already has your consumerโ€™s ears
  โ€“ Most trusted form of marketing โ€“ word from friends
    and family
โ€ข RELEVANCE
  โ€“ Break the clutter; too much noise
  โ€“ Map the consumer decision journey, align messaging
    with the journey, sell an outcome or a lifestyle , not a
    product
What aids consumer decision making?
โ€ข EASY
  โ€“ Invest in findability, reward loyalty
  โ€“ Use CRM
  โ€“ Make it easy for the consumer to โ€˜likeโ€™ you
โ€ข DIFFERENT
  โ€“   Consumers are looking for a story to tell
  โ€“   Create a unique/key selling point
  โ€“   Personalisation
  โ€“   Build in virality
  โ€“   Package the brand experience for consumers to
      understand and share
The perception gap: Needs & Wants




www.twitter.com/akshatk
The evolving ecosystem




The key to this new ecosystem is the arrows between each bucket though. Paid drives Owned
which can drive Earned, but things are more complicated than this.

- Owned Media presence (for example a YouTube video) can aid visibility on Search Engines and
can also be used to drive back to the main site (for example Alexa currently shows that 44.64%
of visitors to Evian.com come from YouTube.)

- Conversation can also produce activity that aids SEO (through creating an increase in both
Search results and links) with this helping Paid Search ads to work harder.


www.twitter.com/akshatk
Brands are Publishers
    -   Large well-known brands are beginning to realize that the media they own (the product
        itself, how itโ€™s sold and distributed, etc.) are more powerful than the media they buy.



           Johnson & Johnsonโ€™s Baby Center, a portal    P&G launched a new platform called โ€œMan
           for new and expecting mothers, is said to    of the Houseโ€ which revolves around male
           be one of the most effective marketing       grooming and menโ€™s lifestyle besides
           initiatives J&J has ever undertaken.         working as a plug for Old Spice and Gillette


    -   Owned media are not only more credible and effective than paid media, but they
        actually sometimes have better reach and frequency.




www.twitter.com/akshatk
Thank You

โ€ข   imadreamer@gmail.com
โ€ข   www.twitter.com/akshatk
โ€ข   in.linkedin.com/in/akshatkumar
โ€ข   www.slideshare.net/inkgenie

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Consumer decision making on digital

  • 1. Consumer Decision Making in the digital realm IIM Bangalore 27th July, 2012 www.twitter.com/akshatk
  • 4. Gone in 60 seconds www.twitter.com/akshatk Slide 4
  • 5. Consumers are making informed decisions www.twitter.com/akshatk
  • 6. Introduction โ€ข Media outposts have multiplied and they don various roles sometimes interchangeable โ€ข Brands have evolved. They are embracing new media. They want to be present at every touch point consumer has access to. โ€ข Consumers are smarter and more informed. They rely on multiple information sources before they make a purchase decision. And hence brands and marketers are increasingly putting consumers at the heart of everything they do www.twitter.com/akshatk
  • 7. 3 key themes: 1. A business problem is a behavioural change in disguise www.twitter.com/akshatk
  • 8. At the heart of every business problem today is an opportunity to change consumer behaviour - Even in those areas we previously struggled to impact www.twitter.com/akshatk
  • 9. Start with a clear, simple, granular problem (N.B. these arenโ€™t easy to get to) THE PROBLEM -We need 1m users to buy 1 more pack a year each -Rate of sale is sky high but our distribution is a barrier to growth www.twitter.com/akshatk
  • 10. Then identify the behaviour you need to change to make that happen THE PROBLEM THE BEHAVIOURAL CHANGE -We need to create one -We need 1m users to buy 1 more additional occasion a year for pack a year these users -Rate of sale is sky high but our -We need our fans to become our distribution is a barrier to distribution channel growth www.twitter.com/akshatk
  • 11. Move from โ€œniceโ€ sharing to โ€œsharing that breaksโ€ www.twitter.com/akshatk
  • 12. 3 key themes: 1. A business problem is a behavioural change in disguise 2. Think about network insights, not (only) consumer insights www.twitter.com/akshatk
  • 14. Thinking about network insights ensures we understand why our target might participate with our platform www.twitter.com/akshatk
  • 15. And it ensures we know how to design experiences to maximise the participation we need Source: Luke Wroblewski, The Impact of Social Models www.twitter.com/akshatk
  • 16. 3 key themes: 1. A business problem is a behavioural change in disguise 2. Think about network insights, not (only) consumer insights 3. From โ€œthe single thing we want to sayโ€ to โ€œthe single thing weโ€™re going to make or doโ€ www.twitter.com/akshatk
  • 17. The heart of every marketing campaign/message/ initiative/โ€ฆ: What is the single thing we want to say? www.twitter.com/akshatk
  • 18. But weโ€™ve establishedโ€ฆ. Participation disrupts business models Consumers ability to participate has the power to impact our businesses in more profound ways than ever before The solution to a much more diverse range of business problems lies in changes to consumer behaviour If we want to change behaviour, weโ€™re probably not going to be talking at peopleโ€ฆโ€ฆ www.twitter.com/akshatk
  • 20. What are we going to make or do that will enable the behaviour we need to see? www.twitter.com/akshatk
  • 21. Hence 1. A business problem is a What do we need people behavioural change in disguise to do? 2. Think about network insights, not Why would they do it? (only) consumer insights -what are their network motivations? 3. From โ€œthe single thing we want to What are we going to sayโ€ to โ€œthe single thing weโ€™re make or do that will going to make or doโ€ enable them to do it ? www.twitter.com/akshatk
  • 22. โ€ข GOAL OF BUSINESS โ€ข Sell stuff often โ€ข GOAL OF MARKETING โ€ข Influence consumers to buy stuff often www.twitter.com/akshatk
  • 23. What aids consumer decision making? โ€ข CLOUT โ€“ The marketing that has the most clout is the marketing that already has your consumerโ€™s ears โ€“ Most trusted form of marketing โ€“ word from friends and family โ€ข RELEVANCE โ€“ Break the clutter; too much noise โ€“ Map the consumer decision journey, align messaging with the journey, sell an outcome or a lifestyle , not a product
  • 24. What aids consumer decision making? โ€ข EASY โ€“ Invest in findability, reward loyalty โ€“ Use CRM โ€“ Make it easy for the consumer to โ€˜likeโ€™ you โ€ข DIFFERENT โ€“ Consumers are looking for a story to tell โ€“ Create a unique/key selling point โ€“ Personalisation โ€“ Build in virality โ€“ Package the brand experience for consumers to understand and share
  • 25. The perception gap: Needs & Wants www.twitter.com/akshatk
  • 26. The evolving ecosystem The key to this new ecosystem is the arrows between each bucket though. Paid drives Owned which can drive Earned, but things are more complicated than this. - Owned Media presence (for example a YouTube video) can aid visibility on Search Engines and can also be used to drive back to the main site (for example Alexa currently shows that 44.64% of visitors to Evian.com come from YouTube.) - Conversation can also produce activity that aids SEO (through creating an increase in both Search results and links) with this helping Paid Search ads to work harder. www.twitter.com/akshatk
  • 27. Brands are Publishers - Large well-known brands are beginning to realize that the media they own (the product itself, how itโ€™s sold and distributed, etc.) are more powerful than the media they buy. Johnson & Johnsonโ€™s Baby Center, a portal P&G launched a new platform called โ€œMan for new and expecting mothers, is said to of the Houseโ€ which revolves around male be one of the most effective marketing grooming and menโ€™s lifestyle besides initiatives J&J has ever undertaken. working as a plug for Old Spice and Gillette - Owned media are not only more credible and effective than paid media, but they actually sometimes have better reach and frequency. www.twitter.com/akshatk
  • 28. Thank You โ€ข imadreamer@gmail.com โ€ข www.twitter.com/akshatk โ€ข in.linkedin.com/in/akshatkumar โ€ข www.slideshare.net/inkgenie

Editor's Notes

  1. Media platforms are multiplying; all vying for consumersโ€™ attention
  2. Marketers have been taught to โ€œpushโ€ marketing toward consumers at each stage of the funnel process to influence their behavior. But our qualitative and quantitative research in the automobile, skin care, insurance, consumer electronics, and mobile-telecom industries shows that something quite different now occurs.Actually, the decision-making process is a more circular journey, with four primary phases representing potential battlegrounds where marketers can win or lose: initial consideration; active evaluation, or the process of researching potential purchases; closure, when consumers buy brands; and postpurchase, when consumers experience them
  3. Nielsen Research produced various data that showed that incorporating social / Earned actions into Paid Media placements increased their effectiveness on Facebook - Earned helps Paid to work harder- Conversation can amplify the effects of offline Paid Media advertising too and this can change the approach to Paid Media strategy. Traditional frequency of three thinking was based around Paid Media being used to drive all impacts, but the scaling of the conversation means that the second or third impression can now be delivered through the sharing actions of the so-called 'People's Network.' - The Conversation can also be a great source of insight, surfacing trends that can be harnessed, providing focus group type insight, facilitating customer service or providing data for measurement - with everything then fuelling other parts of the Paid Owned Earned ecosystem.http://www.nickburcher.com/2011/06/paid-owned-earned-how-it-works-image.html