®

“THAT WAS THEN. THIS IS NOW”

How the New Consumer Decision Process

Requires a New Capability Model

CARY ZACKMAN

Executive Director, Industry Business Leader

TOPICS

1. Burying the Marketing Funnel : its all about the consumer

2. A capability model for driving customer engagement

3. Q&A

• Why the funnel?

• What happened?

• What’s next?

CONSUMER PURCHASE DECISION PROCESS

CAR BUYING: 40 YEARS AG0

5

Aware of Brands

Brands Under Consideration

Prefer

THE FUNNEL VIEW

6

Aware

Prefer

Consider

Purchase

MORE CONSUMERS

7

HOW THE MARKETERS SEE IT

8

FITS THE FUNNEL

• Brand-centric, push model• Broad, general reach• Limited product choice• Barriers to information

PURCHASE FUNNEL WORKED

9

The difficulty in getting inputs was so significant that the brands had the ability to significantly alter their inclusion in various steps

THE FUNNEL:WHAT HAPPENED

10

CAR BUYING: TODAY

11

OUTCOME

PURCHASE

LEASE

WAIT

WHAT’S CHANGED

12

THEN NOW

• Limited product choices

• Brand-Centric, push model

• Broad, general reach

• Barriers to information

• Interaction ends with purchase

• Defined consumer decision timeline

• Transparency of information

• Post purchase feedback is key

• Timelines will vary

• Proliferation of product customization

• Consumer-Centric, pull model

• Expanded, targeted reach

THE FUNNEL: WHAT’S NEXT

13

MCKINSEY

Image source:. MCKinsey. “The Consumer Decision Journey.”

14

…Aligning Marketing with the Consumer Decision Journey

The consumer considers an initial set of brands, based on brand perceptions and exposure to recent touch points.

1

Consumers add or subtract brands as they evaluate what they want.

2

Ultimately, the consumer selects a brand at the moment of purchase.

3

After purchasing a product or service, the consumer builds expectations base on experience to inform the next decision journey.

4

…the consumer decision journey

Loyalty loop

Post purchase experienceOngoing exposure

: IT’S ALL ABOUT…FORRESTER: IT’S ALL ABOUT…

…Engagement

Image source: Steven Noble. Forrester.“It's Time To Bury The Marketing Funnel.”

Moment of purchase

Active evaluationInformation gathering, shopping

Initial-consideration

set

Trigger

CAPABILITY MODEL FOR A CONNECTED WORLD

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Key requirements. Separating contenders from pretenders

SO WHAT’S NEXT

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EXPERTS AGREE ACTIONS TO TAKE

• Top-down models are less predictive

• Focus on “Push”/mass media is behind us

• Role of consumer has shifted

• Customer engagement extends beyond purchase

• Siloed organizational structures need to change

• Expand and integrate valuable consumer data

• New org structures factor in the consumer experience

• Leverage multi-dimensional insights to guide customer interactions

• Narrowcasting with relevant communications at all touch points

• Our role has also changed – we need to identify, understand, engage