Digital Age & Its Effects On The Marketing model, Consumer Decision Journey and Customer Experience

Apoorv Pandey

Apoorv Pandey

MARKETING MODEL

How digital age has changed the marketing model. The introduction

of ZMOT

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Procter & Gamble’s 3-Step Marketing Model In 2005.(old)

Stimulus

1st moment of truth

2nd moment of truthAt shelf – In a

storeExperience

Need for a product (by seeing an ad etc.)

Consumer is at the shelf, in a store with a wide number of

options to choose from.

After purchasing the product, does the product live upto expectation. What is the experience with that

product

Source : Procter and gamble 2005

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Revised 3-Step Marketing Model In 2011 By Google/Shopper Sciences. (new)

Stimulus 1st moment of truth2nd moment of truthAt shelf – In a store Experience

Zero moment of truthPre-shopping | i-store | In-Home

https://www.thinkwithgoogle.com/collections/zero-moment-truth.html

Whether we're shopping for corn flakes, concert tickets or a honeymoon in Paris, the Internet has changed how we decide what to buy. This online decision-making moment is called the Zero Moment of Truth — or simply ZMOT.

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CONSUMER DECISION JOURNEY

How digital age has changed the decision journey of a consumer

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The Funnel Metaphor (old)

For years, marketers assumed thatconsumers started with a large number ofpotential brands in mind and methodically winnowed their choices until they’d decided which one to buy. After purchase, their relationship with the brand typically focused on the use of the product or service itself.

BUY

Final Choice

Fewer Brands

Many Brands

https://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-all-the-wrong-places

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McKinsey & Company Consumer Decision Journey (new)

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

Consumers add or subtract brands they evaluate what they want

Ultimately the consumer selects a brand at the moment of purchase

After purchasing a product or a service, the consumers build expectations based on experience to inform the next decision journey

http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey

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McKinsey & Company CDJ – Question to Ask Yourself

What creates Consumers needs?

Do consumers recall and recognize my brand?

Do my products satisfyConsumers needs?

Do my sales efforts result in wins for my brands?

Do the experiences I deliver fulfill customer expectations?

Do customersAdvocate for my brand?

As Marketers you need to as yourself the following set of questions at different stages of the Consumer decision journey

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McKinsey & Company CDJ – Types of analysis

ClickstreamAnalysis

CompetitiveIntelligence

Experimentation/ Testing

OutcomesAnalysis

Voice of Customer(Experience Surveys)

Voice of Customer(Brand Advocacy)

Types to analysis required at different stages of Consumer Decision Journey.

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Pyramid model of web data relates value to availability

Hits

Page Views

Visits

Unique Visitors

Uniquely Identified Visitors

Volume of web data

Incr

easin

g valu

e of d

ata

User submitted information and related sources

Usability Studies

Web transactional data

Web server performance data

Web traffic data

Eric Peterson, “Web Analytics Demystified” (2004)

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There is an analytics tool for any need and data situation

Enterprise Packages Point Solutions Analysis Gadgets

High DataDensity

Low Data Density

Based on what amount of data you want and what are you going to use it for, the market breaks into 3 different types of tool :

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Best marketing analytics metrics vary by size ofbusiness

Small Medium Large

Cost per acquisition Bounce rate Macro-Conversion rate

Click-through rate Page Depth Micro-Conversion rate

Percentage new visits Loyalty Per visit goal value

Events per visit Days to conversion

Checkout Abandonment rate

Percent Assisted Conversions

To understand what information and data is useful, you need to step back and see the organizational size (resources, marketing challenges and opportunities). These are almost dictated by the size of the organization. For eg. A smaller organization has one set of challenges and as it moves ahead to become a large size business then the set challenges change as well as the resources

Source: Avinash Kaushik, “Best Web Metrics / KPIs for a Small, Medium or Large Sized Business” (2011)

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Tools can be prioritized by business size

Business Size

Clickstream Analysis

Outcome Analysis

Voice Of Customer

Experimentation/Testing

Competitive Intelligence

Small 1 2 3

Medium 2 1 3 4

Large 3 2 1 4 5

Marketers can also choose the tool based on the size of organization which are prioritized below:

Source: Kaushik, “Best Web Analytic Tools” (2010)

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Tools For Specific PurposeCompetitiveIntelligence

Experimentation /Testing

Outcomes Analysis

Voice of Customer Clickstream Analysis

Misc EmergingAnalytics

Compete Google WebsiteOptimizer

Mongoose Metrics Qualaroo (formerly

KissInsights)

Yahoo! Web Analytics

Klout

AdWords KeywordTool

Optimizely ifbyphone UserTesting.com Google Analytics AnalyzeWords

Alexa AdWords Campaign

Experiments

LivePerson Loop11.com Piwik Topsy

Google Trends Concept Feedback Feedburner TweetBinder

Google Correlate Bounce Google Webmaster

Tools

Think With Google

Google ConsumerSurveys

Bing WebmasterTools

Source: Avinash Kaushik, “Best Web Analytic Tools” (2010)

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The Experience Effect

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The new In-store behavior

38%

52%

7%3%

I know exactly what I want to buy I’ve narrowed it down to 2-3 products and need help making FInal decision I know the need I’m trying to ful ll, but I don’t know what to buy to meet that need I usually don’t know what I’m looking for when I go to the store

In-store behavior has shifted from “discovery” to “final purchase decision.”

• By the time a person walks into a store they are well versed on what they want to buy, they have not made a final decision but they need emotional validation for the purchase.

• This is why they go into the store and seek out experts that can help them. So, this modern store behavior is really about buying much more so than it is about shopping.

• So, the in-store experience is very important because the customer for the most part, know what they want, they just need help with the last steps.

When you browse online before making a purchase, how much do you know about what you want to buy before you go to the store?

The-State-of-Retail-2015_-Consumer-Behavior

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The Experience Effect

If an experience with a product is memorable and a cherished one. If the

Product delivered the required needs to the consumer then the consumer enters a

loyalty loop. So, now whenever there is a need for similar product the consumer will

automatically buy from the same brand and hence become its loyal customer.

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Experience Sustenance – Creating WOW

Time

IntensityEngaging

Exiting

Extending

Entering

Enticing

Creating Customer experience is creating a full length movie.

It is like creating a Drama

Like any other movie there are stages of the experience. Every stage is equally important as it

holds a value to enter the next stage and it depends on companies and their type of

products on what drama they want to build.

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Creating the Perception of Satisfaction

No. of Interactions

CustomerSacrifice

With more number of interactions Good companies reduce the perception Of customer sacrifice.

Customer Sacrifice – The difference between what a customer settles for and what he wants exactly.

Customer Satisfaction – The difference between what a customer expects and what the customer perceives he gets.

Customer Sacrifice is inevitable as fulfilling everyone's expectations is impossible. With more number of interactions, companies can reduce the perception of Customer Sacrifice.

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Glossary

• Macro Conversion Rate: Simply number of sales divided by the number of visitor sessions

• Micro Conversion Rate: Number of predefined goals achieved divided by the number of visitor sessions

• Per Visit Goal Value: Cumulative predefined value of goals achieved divided by the number of visitor sessions

• Days to Conversion: Average time between purchases made by a consumer

• Percent Assisted Conversions: Conversions with more than one ad / media / marketing touch prior to converting

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Glossary

• Audience Growth: Increase in the number of people following or liking digital content over time

• Amplification Rate: Rate at which your followers take your content and share it through their network

• Applause Rate: Rate at which your followers attach special recognition to your post (e.g., Likes, +1’s, Favorites, etc.)

• Micro Conversion Rate: Number of predefined goals achieved divided by the number of visitor sessions

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Glossary

ROI on Experience

Measuring Return on Advertising Investment

Measuring Return on EXPERIENCING Investment

Incremental revenueCost

Admission Fees

Incremental revenue

Cost -

=

=

Apoorv Pandey

Thank You