Consumer Behaviour – The Changes you Need to Know about and How to Respond

Damien Bennett, NMPi

2

All human actions have one or more of these seven causes:1. Chance2. Nature3. Compulsions4. Habit5. Reason6. Passion7. Desire

-Aristotle

3Areas of Focus

1. Increasingly complex customer

journeys

2. Greater customer expectations

3. Changes in customer’s interactions with brands

4

Research

Consideration

Purchase

1. Increasingly Complex Customer JourneysMarketers have historically seen the customer journey as a funnel

• Broadcast• OOH

• Prospecting display• Generic search

• Retargeting• Email

Customer Journey Funnel:

Channel

5

In fact user journeys are complex and unpredictable1. Increasingly Complex Customer Journeys

6

comScore (2015)

The majority of UK internet users use both desktops and mobile to go online1. Increasingly Complex Customer Journeys

Desktop Only Multi-Device Mobile & Tablet Only

23% 72% 5%

7

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%

8

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 MediaSavvy (2015)

9

Mobile plays an important role in driving in-store revenue1. 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

Shoppercentric (2016)

Mobile activity plays a wider number of roles in people’s customer journeys1. Increasingly Complex Customer Journeys

Consider Inspiration Research Find Share Buy After Sales

60%

52% 51% 49%

35%

28%

11%

Activities on Smartphone

11

Innovation becomes the norm increasingly quickly2. Greater Customer Expectations

122. Greater Customer ExpectationsSpeed 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 optionsEconsultancy (2015)

Of 18-24 year olds say that delivery options are a key factor influencing their choice of retailer when shopping onlineEconsultancy (2015)

13

Consumers abandon baskets for a variety of reasons2. 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)

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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

Speed is cited by customers as the most important 3. Changes in Customer’s Interactions with Brands

Contact in extended hours

Friendly agent

Single point of contact

Contact an agent instantly

Contact for free

Quick response

21%

23%

25%

46%

56%

68%

What are the most important criteria for online customer service?

eDigital Research (2015)

16

eDigital Research (2015)

43% of live chat users expect a response within one minute3. Changes in Customer’s Interaction with Brands

Email

Social Media

Web call back

Phone

Live chat

7%

10%

21%

35%

43%

% of Consumers Expecting a Response Within One Minute

17

Ofcom (2015)

75% of UK internet users read online reviews3. Changes in Customer’s Interaction with Brands

16-24 25-34 35-44 45-54 55-64 65-74 75+

76%80% 80%

73%76%

60% 58%

33%

47% 46%

39% 38%

25% 24%

Reading and Writing Online Reviews by Demographic Group

Read Write

18Areas of Focus

1. Increasingly complex customer

journeys

2. Greater customer expectations

3. Changes in customer’s interactions with brands

19How to Respond

1.Understand our customer’s journey

2.Reach our customers with the right message

3.Meet customer expectations

4.Encourage positive advocacy

20How to Respond

1. Introduce effective measurement

2. Meet customer expectations

3. Bring internal teams together

21

Experian, April 2015

Most multichannel advertisers are still reliant on basic attribution methods1. Introduce Effective Measurement

70%

30%

How do you attribute revenue to channels?

First or last touch Fractionally allocate

221. 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

2323

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

£

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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

25

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

26

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)

27

As internal teams we often behave like “The Blind Men and the Elephant”3. Bring Internal Teams Together

28

To be successful we need to kill our internal silos3. Bring Internal Teams Together

Target

Creative Brand Social Web Acquisition PR

CEO, CFO, COO

29How to Respond

1. Introduce effective measurement

2. Meet customer expectations

3. Bring internal teams together

Any Questions?