Zmot dazza

FMOTZMOT

…WTF

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What we’ll cover…

Start with technology, and end with people!

What Google has uncovered about ZMOT

Compare Google’s findings about ZMOT in US to ours in China

Why FMOT remains critical

An end!

Why all the hullaballo?

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It’s never been easy to understand media consumption, let alone manage its placement, in China

Yesterday: TV, newspaper, internet and radioSource: Synovate Media Atlas China Dec 2009-Feb 2010

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Considerable effort, expense and delays to get timely measures of things important for decision-making

Source: China Mosaic, Synovate, 2006

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China has been in a perpetual state of change for years…ZMOT could actually make things easier

Source: China Mosaic, Synovate, 2006

20% 60%40%Past 3 month purchasers of respective model

Let’s learn from Google!

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How many have read this?

zeromomentoftruth.com

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And what is the Zero Moment of Truth?

“That instant when they open their laptop, pick up their smart phones, or grab their tablets, and search to see if you meet their needs.

They may read a review, look for a coupon, watch a video, or read a blog or social network discussion of your brand [on-line].

We are officially living in a post-Akerlof* world – any trace of information assymetry tipping the balance in favour of the seller is officially gone”

Jim Lecinski, MD Sales Google.

* Ackerlof’s principle: adverse selection ….where the seller has more information than the buyer.

Then….ZMOT doesn’t apply to ~600,000,000 people in China

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Researching ZMOT

In the US….Google &

Shopper Science

In China….WIMI & Viewstap

Online shopper survey

Past 6 mth buyers sports shoes, past 12 month buyers auto, luxury brands

Fielded Aug 2013

N = 600

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Researching ZMOT

In the US….Google &

Shopper Science

In China….WIMI & Viewstap

Online shopper survey

Past 6 mth buyers, sports shoes, past 12 month buyers auto, luxury brands

Fielded Aug 2013

N = 600

Sour

ce: Z

MO

T M

acro

Stu

dy, G

oogl

e/Sh

oppe

r Sci

ence

s, 2

011

We are NOT related at all to Google. W

e acknowledge

their brains, and replicated some of the research design

for China…because it will be interesting to compare

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The top ten – the most commonly used information sources when making a purchase decision…which is China, which is the US?

Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 China ZMOT Study, WIMI/Viewstap, Aug 2013

Searched online with a search engine 1 Read product reviews online

Traditional WOM 2 Comparison shopped products online

Looked at product in-store 3 Searched online with a search engine

Comparison shopped products online 4 Traditional WOM

Saw ads on TV 5 Talked with a salesperson at channel

Read brochures 6 Looked at product in-store

Sought information from a brand website 7 Sought information from a brand website

Talked with a salesperson at channel 8 Noticed ads online

Received DM/mail shot 9 Sought information from a retailer website

Read product reviews online 10 Saw ads on TV

Let’s not ignore the importance of pack

http://www.google.com.hk/imgres?imgurl=http://www.jarhead.net/images/P/grungeflag.png&imgrefurl=http://www.jarhead.net/product.php?productid=6&usg=__MtdwszlPFdg9F_lYeQochhdZq4k=&h=1278&w=2484&sz=492&hl=en&start=10&zoom=1&tbnid=q9xjTgcxFh_YvM:&tbnh=77&tbnw=150&ei=bFwjUu7pKMehkAWS4ID4CA&prev=/search?q=US+flags&safe=strict&sa=X&rls=com.microsoft:en-us:IE-Address&rlz=1I7WQIB_enCN524&tbm=isch&itbs=1&sa=X&ved=0CD4QrQMwCQ

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Some similarities wrt purchase journey … interestingly, commonalities with the borderless internet

Source: ZMOT Macro Study, Google/Shopper Sciences, 2011China ZMOT Study, WIMI/Viewstap, Aug 2013

Noticed ad

s onlin

e

Talke

d with

a sa

lespers

on

Compariso

n shopped

products

online

Sough

t info bran

d web

site

Sough

t inform

ation fr

om a ret

ailer

websit

e

Read co

mments

following a

n article

online

Became a

frien

d / follo

wer bran

d online

Saw ad

s on TV

Rec mail

from bran

d man

uf

Saw an

ad in

a new

spap

er

Read new

spap

er ari

cles

Read an

email

recei

ved fr

om a bran

d

Read bro

chures

about p

roduct

Searc

hed onlin

e with

a sea

rch en

gine

Traditional

WOM

Read pro

duct rev

iews o

nline

0

10

20

30

40

50

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But significant differences elsewhere, especially importance of traditional media…old world still likes old media. Suggest China will blaze forward

Noticed ad

s onlin

e

Talke

d with

a sa

lespers

on

Compariso

n shopped

products

online

Sough

t info bran

d web

site

Sough

t inform

ation fr

om a ret

ailer

websit

e

Read co

mments

following a

n article

online

Became a

frien

d / follo

wer bran

d online

Saw ad

s on TV

Rec mail

from bran

d man

uf

Saw an

ad in

a new

spap

er

Read new

spap

er ari

cles

Read an

email

recei

ved fr

om a bran

d

Read bro

chures

about p

roduct

Searc

hed onlin

e with

a sea

rch en

gine

Traditional

WOM

Read pro

duct rev

iews o

nline

0

10

20

30

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How many brands have their adspend allocations reflecting this dominance of on-line? Still not too late to buy shares in Tencent!

Noticed ad

s onlin

e

Talke

d with

a sa

lespers

on

Compariso

n shopped

products

online

Sough

t info bran

d web

site

Sough

t inform

ation fr

om a ret

ailer

websit

e

Read co

mments

following a

n article

online

Became a

frien

d / follo

wer bran

d online

Saw ad

s on TV

Rec mail

from bran

d man

uf

Saw an

ad in

a new

spap

er

Read new

spap

er ari

cles

Read an

email

recei

ved fr

om a bran

d

Read bro

chures

about p

roduct

Searc

hed onlin

e with

a sea

rch en

gine

Traditional

WOM

Read pro

duct rev

iews o

nline

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10

20

30

40

50

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A deeper dive into ZMOT in China

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The ZMOT bible talks about individual journeys….so of course categories are different

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It is important that the messages, images in store matches on-line

I am persuaded by instore POSM if the brand has good on-line elements

I trust what the sales assistant says if it supports the messages on-line

Price promotions have a significant influence on my end buying decision

It is important to consider a wide range of options before narrowing down

I trust what I read from KOL's on-line

I trust what I read from general consumers on-line

I ignore other brands, go to the brand that was well-represented on-line

If a brand on-line has good support, I find out more about it in the store

Sports shoes AutoLuxury items

Percent who strongly agreed to statement

Source: China ZMOT Study, WIMI/Viewstap, Aug 2013

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Clicks are as important as pricing to your business strategy

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Percent who strongly agreed to statement


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A pertinent on-line strategy will help the brand instore…if they work in harmony

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A pertinent on-line strategy will also reduce competitive pressures, and focus the shopper

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Poor sports shoes…mid term Olympic blues perhaps. But also…a potential warning sign KOL’s might be getting close to their “sell-by-date”!

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Good on-line a good life-line

1 2 30%

10%

20%

30%

40%

50%

60%

70%

80%

90%

If your customers liked your on-line messaging a lotthey are far more likely to be brand ambassadors on-line

after purchase.

Auto Luxury Sports Shoe


Inde

x to

cat

egor

y av

erag

e

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And who are the “stronger” brands on-line…we can learn from them

Auto

Sports shoes

Luxury

Great ZMOT means FA withoutGood FMOT

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In the past 6 – 9 mths….

Category Evaluation of product and concept

Grades for the MOT’s

Soup Amazing product, great concept.

FMOT – D

ZMOT – C minus, although it prompted very good WOM, no one knew where to find it in the store

Toothpaste Great concept, very good product

ZMOT – C minus, failed to link mother brand to product line, or provide visual cues for intuitive shopping

FMOT – E, wonderfully creative, but by-passed instore

Luxury brand Of course, perfect product and concept

ZMOT – A

FMOT – C. Remember who you are selling to.

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FMOT – D






ZMOT – A


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FMOT – D






ZMOT – A


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Shoppers are spending more time making decisions in-storethan previously expected

17 minutes Time spent at ONE luxury skin care brand’s counter in BJ

4 minutes 50 seconds Average time spent in toothpaste aisle in Hangzhou superstores

1 min 52 seconds Average time spent in crisps aisle in HK

• Grocery shopping isn’t always a time pressured activity.• Shoppers can spend more time studying POSM and reading

pack information than they do watching a TVC.• Potentially, marketers can use this time devotion to communicate more information about the product.• Remember, in China, studying pack is #6 in terms of importance.

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• Supermarket shoppers have been trained by hypermarket retailers to look up, to spot the big red/yellow posters that symbolize the bargain that the shoppers are seeking.• Therefore, design elements or messaging on major POSM should not be lower than waist height (shoulder height is even better) to capture attention in main aisles. Creative design effects or messaging below the waist is more-or-less wasted…as it will not be noticed.• But at the actual shelf, lower levels are not losing positions, because the bargain- seeking shopper also gives close scrutiny here to ensure the best value is not missed.

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UNDERSTAND INTUITIVE SHOPPING….eg Shoppers’ line-of-sight is above shoulder height when navigating around supermarket aisles

POSM that clusters all the brands’ products is an important way to draw shoppers’ attention

• To display all the products under the master brand together within a ‘special shelf’ captures interest.

• The variety of the product reinforces the brand’s credibility.

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• First time trialists seek reassurance of product efficacy; especially for skin care products, promotions may not always work.

• Promotions/gifts are likely to be appreciated by repeat purchasers.– At best, make them select our product from a short-

list.– Perhaps not needed in our own stores, but in

competitive environments.Post shopping interview:

Mod: “ Why are you not interested in the gift items”?

Shopper: “ I only care for the product quality

Role of promotions

Careful consideration of the purpose of promotions/premiums

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• A common retail design feature used in premium skin care brands has counters surrounding a central column. This is like building mini castles.

• These display counters work like an “unconscious” wall, or barrier, between the assistants and the shoppers that they have to engage with.

• Engagement is more difficult to achieve when there is a fence that divides you.Hiding behind the counter

CASTLE Style

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It is important to get the right balance for product displays to avoid physical barriers being created for the shopper

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• Promoters can be very helpful to the shopper, especially when there is uncertainty in their mind. But there is quite a lot of cynicism towards promoters, because of poor experiences.

• Promoters should be constantly diligent to assist and support the shopper who needs it.

• Shoppers want them for facts – to fill information gaps.

• Given their importance, auditing is recommended.

Promoters can be very effective, but performance can be very mixed

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• The BA is commended for her attitude, but the experienced skin care shopper needs reassurance about why she should switch to “XXX”.– Nor are her explanations very compelling – few end benefits

explained when introducing 3 different lines.• We had a mystery shopper compelled to buy a product because the BA

told a story – linked benefits to her own personal experiences.– The BA’s complexion is criticized. It is not a positive endorsement

of the products she is selling.

Insufficient explanation

Sales assistants, and promoters, in general….are we training them the way we should be?

• Having pride in your brand is important, as it will mean our pitch to shoppers will be made with genuine earnestness.

• But don’t take it too far, as some luxury BA’s have done. This results in aloofness: you don’t have to even say anything…your body will do your talking.

Pride is fine – arrogance is not

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• What message are we sending shoppers when we bring out a lot of products to try?

• It simply is not credible. • Immediately, the shopper goes on the defensive to prepare for a hard sell.

Either I’m really ugly, or, he is very inexperienced, or, he’s well short of his sales target!

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• Whilst the BA was struggling, the interruption from the experienced staff was not appreciated.

• Although the senior BA did compliment the shopper, and offer advice, the experience was far from a positive one. It was construed as hard sell:– No introduction– Interrupted– Did not prove herself as a skin care expert– Did not listen to the shoppers needs– Recommended products that the shopper did not

want

Ambush

Golden rules of shopper engagement etiquette broken

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An ending

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Will the sales assistant think I am a genuine buyer; will they respect me?

Will the product be worth what it’s costing me?

Will the sales assistant know what I need?

Am I going to be pitched products I don’t need?

I actually know a reasonable amount already.

THE PURCHASE PARADOX

I want the product, but…

Trust combats the tension

Counter tension creates a purchase paradox

Tension must be overcome before a purchase is made. Trust is the antidote,

but is more difficult in new purchase occasions.

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A quality product experience is irrefutable proof of trust.Repeat purchase is virtually re-assured if efficacy is delivered.Counter experience and public opinion forums play an important supporting role:

- Counter: brand and luxury experience – a special treat.

- Public opinion forums: cursory review as a disaster check.

Product trial and free samples an absolute must given the key role product experience plays with purchase decisions.

Overcoming purchase tension: repurchase occasions

PRODUCT EXPERIENCE

Counter experience

Opinion forums

TENSION

•The small golden bottle (Dior product) given by my friend is very good to use. After that, I buy it myself. I feel the effect is excellent even I only use this product. So I stick to it.•The small golden bottle (Dior product) given by my friend is very good to use. After that, I buy it myself. I feel the effect is excellent even I only use this product. So I stick to it.

“The small golden bottle (Dior product) given by my friend is very good to use. After that, I buy it myself. I feel the effect is excellent even I only use this product. So I stick to it.”

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Removing tension is much harder without prior product experience. Surrogates for trust are looked for.

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TENSION

REPUTABLE BRANDPOSITIVE WOM

COUNTER DISPLAYSALES STAFF REASSURANCES

Overcoming purchase tension: new purchase occasions

Brand haloBrand pedigree and reputation in skin care

Positive WOMIs WOM/online forums reporting positive news about product efficacy and/or no side effects?

Brand haloBrand pedigree and reputation in skin care, and advertising

Counter displayIs the counter environment aesthetically pleasing, tidy and inviting?

Sales staff: pleasant & professionalIs the salesperson someone the customer wants to deal with?

Reducing tension

ZMOT

Removing tension is much harder without prior product experience. Surrogates for trust are looked for.

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TENSION

Overcoming purchase tension: new purchase occasions

Brand haloBrand pedigree and reputation in skin care

Positive WOMIs WOM/online forums reporting positive news about product efficacy and/or no side effects?

Brand haloBrand pedigree and reputation in skin care, and advertising

Counter displayIs the counter environment aesthetically pleasing, tidy and inviting?

Sales staff: pleasant & professionalIs the salesperson someone the customer wants to deal with?

ZMOT

Thank You

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