The-Consumer-Decision-Journey-Retail-Considered-Purchases.pdf

The Retail Consumer Journey

Considered Purchases: Consumer Electronics

UK

US

Canada

For this research, we used a 2 phased approach

Online consumer blogs, in-depth interviews & hypothesis setting

2. Quantitative: In-market questionnaire:2,000 consumers across 3 markets (1,000 in CA)

Microsoft Consumer Decision Journey: Retail

Consumers aren’t in our funnel; we’re in their journey

Consumers have 4 key areas of need throughout their journey:

Validation

Am I making the right

choice? Do others think

so too?

PersonalizationHow will this product fit

into my life?

EnrichmentDo I like the way it looks

and feels?

Information

How do the facts stack up?

What else do I need to

know?

Each can be met by a variety of sources (e.g., media, word of mouth, activities)Microsoft Consumer Decision Journey: Retail

Decisionto change

Getting the

go-ahead

Evaluating

WorldviewHoning

in

Shopping

Getting the right

product

Experiencing

Home

Open to possibility

Current state

There are 5 key stages in the considered path to purchase:

By uncovering consumer needs, influences, and experiences at each stage, we’re able

to better understand how people make decisions during their retail shop.


Current stateA general understanding of what electronics are out there

vs. what you currently own

Open to a Possibility Decision to Change Evaluating ExperiencingShopping

1.

Getting the go-aheadConvincing the biggest stakeholders in your life to make the leap

& setting up basic parameters


2.

50%

38%42%

25%

45%40%

Buying for… Family Me

Canadians don’t just buy for themselvesFamilies are key stakeholders in electronics purchases – retailers need to make it easy for

families to shop & explore together to visualize how products can fit into & benefit their lives.


Both wants & needs play a role along the considered journeyNeeding an upgrade or wanting new are top reasons for buying electronics. Use offers,

deals, and even ads to help to ignite these feelings sooner.

40%36%

22%

11% 11%5%

Old/Underperform Want Newer Need Another Recommendation Saw an Ad Impulse Buy


BUT, triggers do vary by deviceTVs are most often driven by need, while tablets tend to be wants.

54%

27%

35%

22%

52%

42%

Wants vs. Needs by Device Needs Wants


47%

33%

WantsNeeds

45%

40%

34%

37%

Decision to change

Evaluating

Shopping

Experiencing

The fun is in wanting electronics pre-shopRetailers need to make shopping experiences more fun, particularly for needs-based

purchases, like TVs.


49%43% 41%

37% 36%

Good Quality for Price Affordable Reliable Trustworthy Easy to Use

Important Product Characteristics Average Across Stages Go-Ahead

As consumers get the go-ahead, they think about product

quality, price, and reliabilityThere is an opportunity for brands to engage consumers with emotional & enriching

experiences before they become increasingly analytical.


41%

33% 33% 32%29%

Competitive Prices Good Warranties Reputation for Quality Trusted/Well-Known Store Good Return Policy

Important Store Characteristics Average Across Stages Go Ahead

At this stage, price is less important for store choiceThis opens the door for retailers to grab attention with messaging about quality, before

consumers become more price-focused.


N E

ED

S T

A T

E S

Media

I N F L U E N C E R S

Personalization

Enrichment

Information

Validation

A little influence

A lot of influence

Word of Mouth Activities

Consumers still need help visualizing how products fit their livesRetailers and brands can leverage their websites to provide personalized suggestions based

on consumer inputs/requirements. Digital addresses the need for information during planning.


Worldview & Honing In Getting a sense for available options, whittling down to your shortlist, and choosing a retailer


3.

Consumers expect relaxation online, but more of a balance of efficiency & leisure in-store

44%

38%

31%36%

Online Store Physical Store

Expected Mood – Online vs. Physical Shopping

Relaxed Efficient


As consumers narrow options, digital is key in enrichment However, consumers still need help finding & triangulating information and

understanding how products can benefits them/their families.

N E

ED

S T

A T

E S

Media


Personalization

Enrichment

Information

Validation

A little influence

A lot of influence



When honing in, Canadians start to care more about store characteristics as they decide where to shopPrice/deals, trust and return policies are all top criteria, but consumers also want fun!

49%

35% 34%29%

22%18%

59%

40%

46%43%

27% 27%

Competitive prices Good return policy Good deals/offers Trusted/well-known Broad range of

products

Shopping is fun

Worldview Honing In


10%store

80%getting the right

product at the right price

Shopping focus

Overall, consumers are focused on their productsRetailers need to provide positive experiences to become more of a consideration earlier

in the process.


Quality & function are increasingly important to product choiceBrands can leverage digital (tech/comparison/consumer opinion sites) to provide the information and validation consumers need to help decide which product is right for them.

48%

42%40%

33% 32%30%

57%

39%

47%

36%40%

36%

Quality for price Affordable Reliable Trustworthy/ Well-

known

Easy to use Good screen

Worldview Honing In


Getting the Right ProductCommitting to a retailer & product and doing one last check before checking out


4.

Mood of trip

When shopping, consumers want relaxed & efficient experiences The stress of the physical shopping environment is a pain point for considered

shoppers and is one of the main reasons they buy online (besides price).

42%relaxed & leisurely

32%quick & efficient

+


Personalization is met by product look, while opinion sites & store satisfy

informational needs.

N E

ED

S T

A T

E S

Media


Personalization

Enrichment

Information

Validation

A little influence

A lot of influence



Canadian consumers are still most likely to buy in a physical storeBut, likelihood to purchase online is also very common for all devices – retailers need to plan

for both avenues and ensure that experiences are seamless and consistent.

42%37% 39%

58%

47%

57%

Online Physical Store


Many preview products and then buy laterProvide information to help consumers feel in control to help tip the scales in store/online,

rather than risking them buying elsewhere once they’ve left the store/site.

35%

28%

16%

26%

20%16%

Preview Offline

Buy Online

(Same Store)

Preview Online

Buy Offline

(Same Store)

Preview Offline

Buy Offline

(Same Store)

Preview Offline

Buy Online

(Diff Store)

Preview Online

Buy Offline

(Diff Store)

Preview Offline

Buy Offline

(Diff Store)

68% buy from the same store


Most Canadians only visit areas needed & buy only target productsUse personalized information & suggestions on target products & relevant peripherals to

encourage more browsing, both online and in-store.

Browse whole

store, 9%

Visit a few

other areas

30%

Only visit

areas needed

61%

Browsing

Other

7%

Related

Electronics,

19%Only the

Electronic

74%

Additional Purchases


HomeGetting your new electronic home, setting it up, and testing it out


5.

Canadians are product advocates but few discuss their store experience

34%

31%

28%

9%

5%

2%

Talk with Partner

Talk with Other Family

Talk with

Friends/Colleagues

Reviewed on Website

Posted on Social Network

Join/Follow Brand

Product Advocacy

16%

18%

14%

6%

3%

2%

Store AdvocacyGlobal Total

Canada


Social circles

Family

Partner Tech sites

Consumer opinion

sites

Friends & colleagues

Tech/ electronics

stores

Experts

Other consumers

Drive advocacy & validation by bringing key influences together


Shopping

Decisionto change

Evaluating

Experiencing

•Tech sites

•Consumer opinion sites

•Partners

•Tech sites

•Price comparison sites


•Partner

Journey re-cap: every stage matters!

TOP INFLUENCERS OPPORTUNITIES

•Product look, specs & format

•Promos & deals

•Partner


•Tech/Electronics stores

•Trigger wants sooner via personalized offers, deals, and ads

•Grab attention with messages about quality before consumers become more price-

focused

•Drive pre-shop anticipation with enriching online experiences that help consumers narrow

their lists

•Link consumers to consumer opinion & price comparison information to help them feel

informed, and in control

•Solicit feedback post-shop & use it to personalize future trips

• Inspire and enable customers to speak out positively to reinforce choice and keep the

retailer/product top of mind

•Brand & product sites

•Partner

•Foster relaxing & efficient shopping experiences

•Help consumers easily explore tactile product aspects

•Encourage browsing & discovery with personalized suggestions that enrich the experience

of the desired product.

•Provide easy access to reviews, in-depth specs, & pricing info


Marketer Implications

Encourage discovery

Enable mobile and in-store technology to bring at-the-shelf information

3. Encourage consumers to experience products outside of packaging to understand fit

2. Help consumers easily compare & contrast features to see benefits beyond just price

4. Bring fun to shopping with interactive experiences for the whole family

1.


1. Deliver personal experiences at each step of the journey

2. Play the role of editor & curator, not just aggregator

Get to know your customers


Combat a ‘race to the bottom’ with value-adds

Take the showroom beyond the walls of the store by making both functional & emotional content accessible anywhere

1. Follow-up post-purchase to help consumers get the most out of products, validate choice & encourage advocacy

3. Provide access to reviews, expert ratings and in-store recommendations to deepen information and allow validation

2.


Thank you

www.advertising.microsoft.ca/research

Questions? Contact [email protected]

Documents

The-Consumer-Decision-Journey-Retail-Considered-Purchases.pdf