....a little insight in the changing landscape of marketing's path to purchase!

1. MAR KETI NG
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2. the evolving path to purchase
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3. ouagenda es
r servic
Where we’ve been
Where we are
Where we’re going
Key learnings
Discussion time MAR KETI NG
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4. where
we’ve
been
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5. blast from the past
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6. when things were simpler
We’ve come from an environment where the customer was regarded
as an amorphous mass, rather than an individual.
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7. television
With television we could reach 70% of the Australian population
by buying 7 and 9 during prime time
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8. magazine
1 magazine, The Woman’s Weekly,
had over 1,000,000 readers per month
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9. press
2 Daily Newspapers had very healthy circulations,
driven by job classifieds
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10. radio
A couple of AM stations dominated radio - 3AW and 3KZ
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11. local press
Local press meant genuine local newspapers - not just real estate mags
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12. 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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13. but there were some major problems
There 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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14. where we are
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15. 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
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16. 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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17. today’s P2P Point of sale Ourdoor/
(Print) Mobile Mobile Txt/SMS
Press (Paid) - QR codes
Word of Mouth
TVC
Radio Magazine
Social Media
Online Vouchers
(FB Twitter)
APP ( iphone/ipad/ Advertorial
web) Brand Website
Service (Retailer)
Forums
Sampling/Demo/
BTL: Testing instore
- Packaging
- Shelf Space Print
- Distribution
Experience (brand/retail)
Blogs
Comparison Sites Way Finder
DM
PR
eNews (loyalty) MAR KETI NG
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18. 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.
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19. 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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20. 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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21. 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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22. 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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23. MAR KETI NG
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24. 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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25. iphone app
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26. website & blog
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27. 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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28. 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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29. 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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30. QIC P2P
C E NTRE
IN
CONNEC
N ESS
RE
T I
A O
N
AW
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31. QIC P2P
C E NTRE
IN
Events
Service
Sampling/Demo
Experience
Point of Sale
PR
BTL
CONNEC
Brand Site App
ESS
Word of Mouth eNews (loyalty)
Press Radio Social Media
(Convo)
N
Magazine Blogs
RE
Forum/
T
TVC DM/Print Reviews
I
A App
O
N
AW
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32. filling in the gaps
Based 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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33. where we’re going
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34. 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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35. 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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36. flash forward
So, let’s look into the not too distant future
and explore some examples of how we can expect to see greater
convergence between the retail experience and our technology.
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37. MAR KETI NG
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38. 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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39. MAR KETI NG
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40. 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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41. the connected vehicle
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42. 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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43. a few things
to take home...
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44. technology rules
The 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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45. lets get personal
We 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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46. branding, branding, branding
With 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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47. discussion time
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48. THAN K
YOU