Millennials: the marketing environment for the new generation of shoppers
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This document provides an overview of marketing to millennials. It discusses how the marketing environment is constantly changing due to information overload, short attention spans, disruptive technologies, and new generations of shoppers. Digital marketing allows for personalized engagement and measurement of customer journeys. Millennials in particular value convenience, trust, and seamless omnichannel experiences. Customer experience is now key to building loyalty as customers have more control over the purchasing process and demand two-way dialogue. The conclusion emphasizes that a seamless customer journey across channels is essential for modern marketing.
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Millennials: the marketing environment for the new generation of shoppers
- 1. Millenial Marketing: Overview of the marketing context when approaching the new generation of shoppers Guest lecture AAB Caroline Van der Avoort October 6th 2016
- 3. “Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.” - Peter Drucker
- 4. 4 MARKETERS FACE A CONSTANTLY CHANGING ENVIRONMENT
- 5. Customers are bombed with an overload of information 31,250,000 Source: Adweek and Forbes
- 6. People today have an attention span shorter than the one of a goldfish Goldfish Attention Span = 9 seconds > ... a 4 second drop in just 13 years! Modern Human Attention Span = 8 seconds
- 7. Technology is not always helping marketers Global Ad Blocking Growth Source: PageFair
- 8. New market players are able to change the rules of the game by inventing disruptive business models
- 9. Welcome to the era of « good enough » products The “good enough” wins over… the “perfect” Source: The New Normal: Explore The limits of the Digital World, Peter Hinssen
- 10. 10 Digital marketing is dead
- 11. For many marketers it is not clear why to use digital marketing
- 12. Digital makes it possible to engage personally with your customers IKEA: “Make small spaces Big” Audi: “Be creative, design your Audi A1 and win!” From a focus on transactions to a focus on building personnalized relationship Burberry: “Capture and send a digital kiss”
- 13. Digital makes it possible to create a smooth end-2-end experience Pizza.be Netflix.com
- 14. Digital allows to get instant feedback about anything It is now possible to measure everything and in a very short time! Source: Chiefmartech.com
- 15. The increasing complexity of the customer journey 15
- 16. Appearance of new generations of shoppers and new purchasing behaviors • Aged 13-18 • Mobile- native • Instant information • Aged 19-34 • Discoverers and pioneers of web and technology Source: Centennial Shopper Study, Connecting with the next Generation of Shopper, Power Reviews and Who are the Millenial Shoppers and What do they really want, Accenture • Research first, purchase later • Customer reviews above all • Purchase in- store • Two-way dialogue • Research in- store, buy online • Customer reviews and product availability • Personalized and targeted promotion
- 17. The customer journey is now fractured into hundreds of real-time, intent-driven micro-moments… Source: Consumerproof
- 18. While making a purchase decision today’s customers show primary importance to: 1. Convenience 2. Trust
- 19. Customers demand an integrated and seamless experience regardless of the channel
- 20. 20 Customer experience builds loyalty
- 21. Everyone is now chasing a dream of experience
- 22. Everyone is now chasing a dream of experience
- 23. Contact is king and community is queen ! Nike Run Club: “YOUR PERFECT RUNNING PARTNER Track your runs, get coaching that adapts to you, and bring your friends along for the ride. It’s all possible with the Nike+ Run Club app.”
- 24. Conclusions and key takeaways A seamless omnichannel customer journey is a must Marketers face a constantly changing environment Marketing is now a technology-powered discipline Customer experience builds loyalty Contact is king and community is queen 1 2 4 5 3 New consumer behaviors are disrupting 6
- 25. WHO ARE WE?
- 26. We are a team of more than 50 passionate marketers 26
- 27. We help you build a future- proof organization
- 28. Market Assessment Research (qualitative – quantitative) Customer journey mapping Customer segmentation Branding & Positioning Pricing Marketing Strategy & Planning Communication Planning Product / Brand Management CRM – Loyalty Organization & Competencies Marketing Automation WHO WHAT HOW I M P A C T Our 4 fields of expertise allow us to create impact Omni-channel & E-Commerce Integration Go-to-market CORE MARKETING EXPERTISE Customer Centricity Value Proposition
- 29. We are a marketing hub of more than 75 dynamic passionate marketers THE HOUSE OF MARKETING www.thehouseofmarketing.be Any questions ?
Editor's Notes
- Aim of this presentation: Today, we would like to talk to you about the environment that today’s marketers are facing and the latest marketing trends while approaching a new generation of shoppers, “the Millenials”
- It might be unclear what the key success drivers of a good marketing campaing nowadays.
- According to Peter Drucker, a business has only two functions: marketing and innovation
- E.g.: Facebook users send on average 31.25 million messages and view 2.77 million videos every minute! But there are many more astounding numbers about how Much Data/ Information Do the World’s Internet Users (3.2 billion people in 2015) Produce Every Minute. http://www.forbes.com/sites/bernardmarr/2015/09/30/big-data-20-mind-boggling-facts-everyone-must-read/#223fa2556c1d http://www.adweek.com/prnewser/how-many-times-do-the-worlds-social-media-users-click-every-minute/117427
- Consequence of the highly digitalized lifestyle
- Peter Hinssen: With the digitalization of our economy, the outside world became a network. Organizations will have to learn to behave like networks as well. What UBER has done is nothing spectacular, they just leverages existing assets and networked them together: The existing infrastructure of cars The existing infrastructure of Google Maps The existing infrastructure of smartphones Result: agility, speed, user traction and revenue GAFA: Google, Amazon, Facebook and Alibaba They are all powerful networks They believe in: Meritocracy Sharing information Equality The more they share in the network the more they become valuable, the more they are able to disrupt Silicon Valley used to be the high tech capital (HP, Google and HP) of the world but it is now becoming the industry disruption capital of the world Tesla is disrupting mobility Youtube is disrupting the television industry Paypal is disrupting the finance industry Air BnB (180 000 beds in their supply every night) the world of hospitality and their IT department counts 3 people only
- The perfect is the enemy of the good especially if the good is cheaper, faster and more convenient Velocity trumps perfection The growing need for a lean approach of business development within corporations, i.e. constantly test, learn and improve
- Digital marketing is now marketing in a digital world. The truth is that digital has become so mainstream and central to marketing that is no longer a niche or apart channel. It is intrinsic to today’s marketing. Digital has changed the world so much that it has become the world. Digital marketing is no longer a niche channel. Marketers no longer make a clear distinction between offline and online marketing disciplines. As customers opt for digitally led experiences, digital marketing stops being a discrete discipline and instead becomes the context for all marketing. Marketing unquestionably became a technology-powered discipline!
- From mass marketing (one size fits all) to a 1 to 1 relationship
- The advent of real-time analytics and marketing analytics the technology landscape is constantly growing
- Consumers are moving outside the marketing funnel by changing the way they research and buy products. Here's how marketers should respond to the new customer journey. If marketing has one goal, it’s to reach consumers at the moments that most influence their decisions. That’s why consumer electronics companies make sure not only that customers see their televisions in stores but also that those televisions display vivid high-definition pictures. It’s why Amazon.com, a decade ago, began offering targeted product recommendations to consumers already logged in and ready to buy. And it explains P&G’s decision, long ago, to produce radio and then TV programs to reach the audiences most likely to buy its products—hence, the term “soap opera.” Marketing has always sought those moments, or touch points, when consumers are open to influence. For years, touch points have been understood through the metaphor of a “funnel”—consumers start with a number of potential brands in mind (the wide end of the funnel), marketing is then directed at them as they methodically reduce that number and move through the funnel, and at the end they emerge with the one brand they chose to purchase (Exhibit 1). But today, the funnel concept fails to capture all the touch points and key buying factors resulting from the explosion of product choices and digital channels, coupled with the emergence of an increasingly discerning, well-informed consumer. A more sophisticated approach is required to help marketers navigate this environment, which is less linear and more complicated than the funnel suggests. We call this approach the consumer decision journey. Our thinking is applicable to any geographic market that has different kinds of media, Internet access, and wide product choice, including big cities in emerging markets such as China and India.
- While Centennials were born with technology, the Millennials, age 19 to 34, discovered it. Millennials grew up with the high-pitched tones of dial-up internet at home, they had their first mobile phones as teenagers and watched social media develop from MySpace to the vast social networks of today dominated by Facebook, YouTube, Twitter and Instagram. Millenials: High expectation for information Technology provides with a wider spectrum of options, encouraging less brand loyalty “Showrooming”: 41% examine merchandise at a nearby store and then shop online 89% say real-time product availability information influence their buying behaviour They want to be able to buy online when the shop is closed (24/7 purchase) Free shipping and free returns have a positive impact on their purchase decision They seek targeted promotions and discounts as the price for their loyalty Centennials: Higher expectations for information – they want instant information Equipped with tools to seek out answers and make informed decisions 95% reading reviews, and nearly two thirds reading at least four reviews before they buy. Reviews are also more valued by Centennials than a brand name or free shipping while nearly all Centennials do their shopping research online, more prefer shopping in-store. Centennials also don’t want to be talked at – they want a two-way dialog. If you fail to engage with this generation, they have the independence and control to conduct their entire shopper journey without you. Centennials is on a laptop or desktop computer (52%). Second is the mobile phone (37%) for consumers on the move, followed by the tablet (5%). But while Centennials do purchase in store, just 6% will do their research there. Nearly three quarters of Centennials say they take their time with most purchases by researching price, reading product reviews and looking at different brands. The majority (70%) of Centennials say that quality is more important to them than price. So how do they determine quality? By reading online reviews. In fact, nearly half of Centennials say they won’t purchase a product if there aren’t enough reviews. The presence of online reviews is more important than the brand or perks such as free shipping They go straight to Amazon if they don’t find the info or cannot ask their question on the brand website In the past month, 62% of Centennials say they haven’t written an online review – Incentivize reviews
- http://consumerproof.com/2015/06/25/4-new-moments-every-marketer-should-know/
- Example: Torfs (cfr POV Caroline) The challenge is then to synchronize all of your channels so that you can provide a consistent and seamless shopping experience to your customers. The secret of success is to focus constantly on building an exclusive customer experience. Torfs is a retailer that excels at this. The Belgian shoe retailer won the 2015 omnichannel award. Torfs is able to show the stock availability for any item in each of their stores via its website in real-time. Online shoppers can reserve shoes at the shop of their choice. Any online order placed before 7 pm is delivered the next day (even on Saturdays and late in the evening). It can also be returned to any shop for an immediate refund. The company’s digital devices, from 3D machines scanning for foot measurements, to online backordering, are available in the physical stores create such a “wow” effect that it makes it really difficult to not want to come and visit regularly.
- Customer experience has been receiving a lot of attention over the last few years, primarily among B2C companies and retailers. It involves the combination of people, process and technology to understand, anticipate and consistently deliver exceptional personalized experiences across all touch points. In 2016, leaders will understand and anticipate individual needs to deliver personalized experiences, sharply increasing their lead in the market. Not surprisingly, companies that focus on customer experience throughout a customer’s lifetime see higher growth. Studies show that it takes 12 positive experiences to make up for one negative experience As today’s B2B buyers are increasingly influenced by their consumer experiences and have begun to demand similar experiences in their professional lives, firms are recognizing how customer experience can be a driver of both business differentiation and profitability. For marketers this will mean a much more systematic and intentional focus on the entire experience for a customer, delivering a seamless and consistent experience, regardless of channel or device and in a way that is consistent with your brand promise. Not surprisingly, companies that focus on customer experience throughout a customer’s lifetime see higher growth. Studies show that it takes 12 positive experiences to make up for one negative experience. And in a world where B2B buyers see 80% of their sales engagements as being valueless, it is a major differentiator for your company to deliver a positive, value-based experience. Prospects will expect to be treated as individuals – anticipate what they need and respond accordingly with a customized solution and relevant content as support. As today’s B2B marketers have begun to recognize how individual experience can be a driver of both business differentiation and profitability, companies need to focus on the entire experience for a customer regardless of channel or device and in a way that is consistent with your long-term brand promise.
- The hunt for WOW experience and VIPIRITIZATION is what today’s customers aspire to today Example: Tomorrowland (180.000 tickets sold in 40 min at 130€ per day)
- The hunt for WOW experience and VIPIRITIZATION is what today’s customers aspire to today Example: Jeep Get Lost function
- Peter Hinssen: Contact is king: customers value the quality of the interaction they have with your brand. Rethink your interactions with your customers knowing that they will be digital. And the dictator of this contact is the customer not the brand. Community is queen: you’ll have to adapt the rise of participation behavior among your customers. Customers are willing to participate to your brand and join your brand community (Apple, Nike Run Club, …) The most important digital demographic shift is that your customers flock together and live in virtual communities since the Internet has enabled to dissociate communities from their geographical context. People can now gather virtually and and share common interests regardless of the physical locations. And this rising community trend became addictive (cfr. Success of Facebook, Pinterest, …) Apple has merely brought together a worldwide community by creating a feeling of belonging that its users get when they utilize their products. Their slogan, “Think Differently” defines their cult like following because people who want to be seen as creative broad thinkers can often be found attached to their Macbook inside a Starbucks somewhere. Almost as if the presence of an Apple defines who they are. Digital customer behavior reveals a connection between community and content. That connection creates a virtuous circle: Value-added content attracts community; community produces, vets, interacts with, shares, and talks about content; those activities can motivate new community members to join a list to receive more content, or participate at a deeper (or shallower) level. Apple has merely brought together a worldwide community by creating a feeling of belonging/ community that its users get when they utilize their products. Their slogan, “Think Differently” defines their cult like following because people who want to be seen as creative broad thinkers can often be found attached to their Macbook inside a Starbucks somewhere. Almost as if the presence of an Apple defines who they are. Nike Run Club “YOUR PERFECT RUNNING PARTNER Track your runs, get coaching that adapts to you, and bring your friends along for the ride. It’s all possible with the Nike+ Run Club app.” “We are all meant to be runners”
- We are part of the Quanteus Group We are marketing experts since more than 20 years We embrace technology We believe in an omnichannel approach We help you build a future-proof organization