The document discusses how today's consumers are smarter and more technology-savvy. It notes that 662 million people are active on Facebook, 95 million tweets are sent daily, and 5 billion mobile phone connections exist globally. The document then summarizes research by IBM on the profile of smarter consumers, noting that they are more instrumented, interconnected, and intelligent. It provides data on how Dutch consumers compare to European peers in their use of technology and their influences, attitudes, and expectations around shopping and retailers. The key expectations are for retailers to know customers, serve them with convenience and personalization, listen to their voices including via social media, and empower them.

1. Capitalizing on the smarter consumer
Rob Garf
IBM Global Business Services
rgarf@us.ibm.com
Dutch contact:
Jerry Stam
IBM Global Business Services
Jerry.stam@nl.ibm.com / +31(0)651285639

2. Today’s smarter consumers are fundamentally changing industries,
brands, interactions, and relationships
© 2011 IBM Corporation

3. So what characterizes these smarter consumers?
Instrumented Interconnected Intelligent
662 million active 95 million 75% of people
users on tweets are sent don’t believe that
Facebook each day companies tell the truth in
advertisements
5 billion mobile 45% of consumers 3 out of 4 business
phones ask friends before leaders
connections globally purchasing say more predictive
information would drive
better decisions
© 2011 IBM Corporation

4. IBM’s IBV studied this new consumer taking into account 13 initial
countries with an addendum for Holland
Mature Emerging
Canada (2221)
USA (4121)
Brazil (2200) Argentina (2200)
Australia (2274)
France (2200) Italy (2200) Chile (2200) Colombia (2200)
Germany UK (2200)
(2200) China (2200) Mexico (2200)
© 2011 IBM Corporation

5. The profile of today's Smarter Consumer
Influences
Attitudes
Technology
Expectations
© 2011 IBM Corporation

6. Technology: Dutch consumers using slightly less technology than
European peers
Number of Instrumented Consumers
80% 83%
24%
38% 2 or more technologies
56%
45% 1 technology
20% 17% No technology
Netherlands Europe
© 2011 IBM Corporation

7. Technology: Instrumentation has increased year-to-year and
mobility has increased 92% globally
13% 25% 68% 75%
Mobile technologies have almost Website usage continues to rise
doubled globally and is already more widely
accepted in the growth markets
2009 2010 © 2011 IBM Corporation

8. Influences
© 2011 IBM Corporation

9. Influences: European consumers are still most influenced by
stores…consumer control is largest in the awareness phase
Greatest Influences
Awareness Research
& Engagement & Discovery
Top 5 Influences
Retailer Store Retailer Store
TV/Radio/Billboard Search Engine
Friends / Family TV/Radio/Billboard
Mobile Apps Retailer Website
Online Streaming Friends / Family
Search Engine Online Streaming
Retailer Website Mobile Apps
Retailer-Controlled
Consumer-Controlled
© 2011 IBM Corporation

10. Influences: Only 21% of Dutch consumers trust retailers and
manufacturers to provide honest feedback on products
17%
Product experts
21%
30% Retail/Manufacturer
Customer Reviews
33%
Family/Friends
10 © 2011 IBM Corporation

11. Attitudes
© 2011 IBM Corporation

12. Attitudes: Dutch consumer attitudes are neutral towards income, but
they are not going back to pre-recession spending levels
Attitude Toward Income Attitude Toward Shopping
• 54% of consumers are optimistic about Spending only on
the future of their income 53%
needs
– 24% believe their income will stay
the same Searching out sale 39%
– 30% believe their income will items
increase by 20% in the next 5 years Kiosks arelonger to across all countries
Waiting popular 31%
• Optimism was not limited to the higher purchase
income brackets
Buying more online 21%
Purchasing items 12%
to reward yourself
Spending more on 12%
travel/entertainment
© 2011 IBM Corporation

13. Expectations
© 2011 IBM Corporation

14. Expectations: Allowing the Dutch customer to specify how to take
possession of the product is important
Which of the following methods would you prefer to obtain the item?
Purchase at store and leave 46%
store with item
Purchase online and deliver on the 24%
date you specify
Purchase online/in store and 16%
delivery next day
Purchase online and pick up 9%
in the store
Purchase at store and deliver to home 4%
the same day © 2011 IBM Corporation

15. Expectations: Retail must close the sale
Top Reasons Why Consumers Abandon Items: Store
1. Just did not want it
2. Thought the item might go on sale and decide to wait
3. Did not want to spend the money
Top Reasons Why Consumers Abandon Items: Online
1. Just did not want it
2. Did not want to spend the money
3. Thought item might go on sale and decided to wait
15 © 2011 IBM Corporation

16. Expectations: Only 51% of Dutch consumers provide primary email
Consumer Provide Primary Top 3 Reasons Consumers
Interaction Email Open and Read Emails
1. Review weekly ads/store
Check out 38% events
2. Apply discounts/coupons to
loyalty program
Shopping Online 56% 3. Notice of an upcoming
sale/promotion
4. Receive relevant email from a
retailer they trust who has
products they love
Loyalty Program 59%
© 2011 IBM Corporation

17. Expectations: The Future is about ME
Listen to me Serve me
Know me
Empower me
© 2011 IBM Corporation

18. Expectations: A personalized interaction remains the top demand
“Serve me”
Convenience: Top area for retailer innovation
Serve me
• Provide the right products and appropriate variety of
brands
• Allow customers to see inventory availability before
going to store
• Loyalty programs that can be used at other retailers
Service: Most important loyalty drivers
• Make it feel like a pleasure to help me
• Have employees that are knowledgeable about
products/services
• Allow me to return products without hassle or questions
asked
• Easy way to order items not in stock
© 2011 IBM Corporation

19. Expectations: Consumers are actively engaging with social
media and are expecting their voices to be heard
Listen to me Social media accounts
• 45% of consumers have media sharing sites
• 33% of consumers belong to a social network
Frequency of social media visits
• 5% visit social media daily / weekly to post
comments
• 75% casually participate monthly by responding
to posts or writing reviews
• 37% are influenced by external reviews
More than half of consumers state social
media interactions influence their spend
© 2011 IBM Corporation

20. Expectations: A personalized interaction remains the top demand
Know me
Personalize Promotions (#1 purchase influencer)
• Most-likely to increase spend
• Top consideration when determining where to shop
• The area retailers need to improve most
Personalize Shopping (Most important factors)
• Provide preferred receipt type
• Recognize me in the store or online
• Remember preferred payment method
Personalize Assortments (Most important loyalty
drivers)
• High quality/low price private label products
• New and unique products
• Manufactured or grown in my country (tied)
• Environmental friendly/sustainable products (tied)
© 2011 IBM Corporation

21. Expectations: Dutch retailers have a vested interested in enabling
m-commerce – especially for promotions
“Empower me”
I want to opt in! I don’t care!
49% Allow me to check prices from other
physical and virtual locations
47% Proactively communicate promotions
to me based on what I scan
34% Allow me to order out-of-stock items
30% Allow me to take a picture/text to get
complimentary product information
Mature Market Emerging Market
© 2011 IBM Corporation

22. Smarter retailers interact with customers in a personalized way
Customer Insight
Customer Value
Strategy
Customer & Partner
Engagement
© 2011 IBM Corporation

23. Dank u!
Robert Garf
rgarf@us.ibm.com
23 © 2011 IBM Corporation