08.02.2012

MARKETING MASTERS

MARKETING

MASTERS08.02.2012

the evolving path to purchase

our servicesagenda

Where we’ve been

Where we are

Where we’re going

Key learnings

Discussion time MARKETING

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where we’ve been

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blast from the past

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when things were simplerWe’ve come from an environment where the customer was regarded

as an amorphous mass, rather than an individual.

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televisionWith television we could reach 70% of the Australian population

by buying 7 and 9 during prime time

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magazine1 magazine, The Woman’s Weekly,

had over 1,000,000 readers per month

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press2 Daily Newspapers had very healthy circulations,

driven by job classifieds

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radioA couple of AM stations dominated radio - 3AW and 3KZ

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local pressLocal press meant genuine local newspapers - not just real estate mags

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so the path to purchase......was pretty simple - get the interest of

as many people as possible through main stream media, and hope that they’ll walk into a shop.

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but there were some major problemsThere was no opportunity for an individual relationship with a customer.

There was huge wastage in the media buy.

I.E. If you were selling dog food, 40% of the Australian population own a dog, but 70% of people would see your ad on prime time = 30% wastage.

No wonder Facebook shares are worth so much, because Facebook can deliver that one-one customer relationship = no wastage!

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where we are

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yesterday’s model

For many years marketers have visualised the path to purchase as a linear equation, a simple journey from Awareness thru to Loyalty – with a few stops inbetween

(evaluation / consideration etc).

This now antiquated model assumes that in order to reach purchase behaviour the customer must travel through each stage of the path.

So traditionally we use paid media to push people towards the final destination.

awareness interest evaluation commitment loyalty

things have changed

The reality is path to purchase is no longer linear. Instead it is a complex and integrated somewhat chaotic network.

And it changes in real time (based on new information and customer engagement).

It has multiple entry points and multiple exits, depending on the level of involvement required

for the purchase decision.

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today’s P2P

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Forums

Radio

TVC

Press (Paid) - QR codes

Point of sale (Print)

Ourdoor/Mobile Mobile Txt/SMS

Word of Mouth

Magazine

Online Vouchers

Advertorial

Service (Retailer)

Sampling/Demo/Testing instore

Print

Experience (brand/retail)

Way Finder

eNews (loyalty)EventsPR

DM

Blogs

Comparison Sites

BTL:- Packaging- Shelf Space- Distribution

APP ( iphone/ipad/web) Brand Website

Social Media (FB Twitter)

why has the path changed?The key driver of this change in path to purchase has been technology

and its influence on our behaviour.

Our demand for instant gratification and expression of our individualism means we engage our technology differently. But we all expect immediacy!

We (as consumers) are demanding more & more from our brand relationships. And as a result we’re simply seeing a greater convergence between our technology

and our shopping experience. MARKETING

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marketers need to catch up

From a marketing perspective, this means we need to change our attitude to acknowledge and embrace the fact that our customers path to purchase has changed.

Customers are engaging technology earlier & earlier in their paths to purchase. The decision to buy a new Canon HD digital camera is rarely being made at POS. Instead,

people are arriving in store armed with more information than is offered by the retailer.

Information from forums, blogs, product review, social media outlets – and all that is before they even land on the brand’s product page.

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understanding the challenge

This may mean significant challenges for retail brands and our brands too. As to how / where we engage our customers, manage their expectations

& how / where we communicate our brand’s experience.

Let’s first consider the digital space – and the traditional use of our brand websites in the marketing mix.

Traditionally we use our domains as a ‘hub’ of controlled content, information about what’s on, store hours, centre directories etc. And most marketers are trained to focus on driving traffic back

to their website – from press, tv, outdoor, radio etc.

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understanding the challenge

However what we as marketers need to now accept and understand is that we no longer have exclusive control / ownership of our brand and its content.

Consumers have just as much chance of engaging our brands in another space – social media, blogs, editorial, PR (in any number of ways as illustrated in the P2P web).

So what we need to start thinking about is HOW do we enhance our brand’s experience outside of our paid media. How do we begin to influence the “non-paid” / social media spaces?

We as marketers need to create a cohesive brand experience from our online to offline activity. From our paid to our non-paid activity.

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the brand experience

This is easier said than done. Even more so if those experiences are sometimes managed by different agencies they are rarely an extension of the same experience

– and this can result in customer dissonance. And a less meaningful brand experience.

Lets look at a brand that re-imagined its retail experience based on the evolution of their customer’s path to purchase.

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nespresso

Nespresso has always been considered a low value FMCG brand. Its brand experience was always limited to supermarket shelves and other large format home retailers where

it was inevitably judged purely on its price point.

To reposition itself amongst its competitors, it decided not to compete solely on function (rational motivations) but on its fashionability (it’s customer’s emotive drivers)

and by doing so helped redefined its customer’s experience, better controlling their path to purchase and creating a strategic competitive advantage for its brand.

Let’s take a look at one of the Nespresso Boutiques.

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iphone app

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website & blog

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nespresso

As you saw, this brand (which was once considered the bottom end of the ‘coffee’ spectrum) has reconnected with their customers by re-shaping their marketing activity to engage their customer at a different juncture of their path to purchase.

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the result

This initiative from Nespresso is not about “selling” – yet their sales are up 300% on targets

They are now an experiential brand who’s core marketing activity is simply to create a space to engage their customer.

They’ve changed their marketing approach from a “push” to a “pull” strategy, where they are simply facilitating a relationship with an engaged customer.

It is now a two way street (and like any relationship there needs to be benefits for both parties).

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our customer

Let’s look at how we currently engage our customer on their path to purchase and where are efforts are currently focused.

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QIC P2P

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CO

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IN CENTRE

AWARE

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IN CENTRE

AWARE

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QIC P2P

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Events

Point of Sale

Word of Mouth

Brand Site

Radio

Magazine

PR

TVC

Press

Blogs

DM/Print

App

eNews (loyalty)

Social Media (Convo)

Forum/Reviews

App

Service

BTL

ExperienceSampling/Demo

filling in the gapsBased on today’s evolving path to purchase, what touch points can we identify

where our customers are active, but our brand is not?

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where we’re goingMARKETING

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what does the future hold?

So we’ve touched on the evolution of a consumer’s path to purchase. But what does the future hold?

The long term future of retail lies with the Digital Native Generation (those born after 1985), who have been raised on pervasive technologies and will be

the most connected retail consumers yet!

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the 2011 oracle survey

In July 2011 Oracle commissioned a survey of 19 to 23 year olds in the UK, France & Germany to examine their views on retail today and their expectations for retail in 2025.

The report was presented at the last World Retail Congress and key findings suggest;

• Digital Natives want a better multi-channel experience that facilitates seamless & connected interactions in a 24/7 environment

• Technology is key to expediting the shopping experience & retail operations must be optimised in support of customer priorities

• Stores are the channel of choice and will remain critical in the shopping experience of the future

• Retailers need to make better use of actionable insight to target this group with personalised promotions & interactions.

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flash forward

So, let’s look into the not too distant futureand explore some examples of how we can expect to see greater convergence between the retail experience and our technology.

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google wallet- how do we believe this effects the evolving Path 2 Purchase?

- gimmick or game-changer?

- is it really that different to Visa Pay Pass?

- what is the financial benefit to the retailer?

- if an entire Shopping Centre was to embrace and promote this technology, how would it influence the customer’s perception of the brand?

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internet TV

Providers: Google TV, Sony TV, SMART TV (Samsung), Telstra TBox, Apple TV, Fetch TV etc.

Channels/Portals: YouTube, iView, Hulu, BPTV, etc.

Advertising opportunties: pre-roll videos, banner indents/overlays, sponsored content.

“As technology improves and the variety of content increases, Australia’s video content viewing habits are changing rapidly with more of us choosing to watch television online.

While this sector is in its early days, internet TV is already reaching upwards of 12 million viewers per month according to comScore statistics,

which represents a huge potential for advertisers within this emerging market.”*

*Internet TV Advertising Set To Soar, Madeleine Ross, B&T, Sept 19, 2011

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the connected vehicle

the connected vehicle

- Over 90% of cars and trucks in the US now have an auxiliary input for hooking up smartphones, tablets and music players.

- 11 million Pandora subscribers listen in their cars

- 19 million satellite radio subscribers listen via units in their vehicles.

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a few things to take home...

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technology rulesThe convergence of technology and the retail experience

are the main influencing factors on today’s path to purchase.

Retailers need to embrace technology at a faster rate to keep up with customers.

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lets get personalWe are no longer talking about ‘consumer groups’.

We are now talking to ‘the customer’.

Everyone’s path to purchase journey is different, requiring a different relationship that need to be built with each customer.

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branding, branding, brandingWith more and more touchpoints continuing to influence the path to purchase,

consistent branding across the spectrum has never been more important.

Seamless integrated brand experiences across Awareness, In Centre and Connection phases of the

QIC path to purchase cycle will help achieve this.

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discussion time

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THANKYOU