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Transcript of TCA Trends Review 2015 English
Marzo 2016
Trends review 2015The 12 lessons that 2015 leaves us
ContentIntroduction: Why Trends Review?
Millennial Consumer or how to make a virtue from a need2My standard is NOW3
A vulnerable citizen looks for refuge1
2
From anger to long friendship5Transfer of references among categories4
Customer Centric: the paradox of the enterprises 6
Self-Learning as an opportunity for brands8The Low Cost metamorphosis 9
Educated for comparison7
Don’t ask me what you already know11The micro-moments of Smartphone: shuttles or self-sufficient?12
Internet privacy: from the fear of Big Brother to the market of data10
Introduction: Why Trends Review?
Why Trends Review?
4
In the last years, it has become a classic that, at the end of December or early January, numerous consulting firms publish prognostics of trends that will define the beginning of the year, normally since a technological perspective.
The Cocktail Analysis wanted to go a step beyond and build over what the consumer has taught us during 2015:
1. We believe in the importance of understanding nowadays reality as a first gauge of the consumer trend in the future.
2. As a consumer knowledge agency that we are, we are passionate about going deeply in consumer’s behavior and that our analysis focuses and rounds around the consumer and not so much in the potentialities of the technology.
5
So, in this perspective The Cocktail Analysis has developed a document that gathers the 12 lessons about the Spanish consumer in 2015, it’s important to mention:
● They were developed in a transversal way from our studies for different clients.
● While we identify them as lessons acquired in 2015, logically its origin can be traced in the previous years.
● They may be actionable insights for brands, companies or organizations.
In this regard, they will be presented as follows: learning, description, facts that endorse / exemplify, and implications for brands.
We hope that it will be of your interest !!!
Why Trends Review?
12 lessons that 2015 leaves us
1. Vulnerable citizen looks for refuge
8Vulnerable citizen looks for rfuge//
And the perception of little likelihood of return to the model of the Welfare State.The individual vulnerability feeling prevails
Public universities have lost more than 1500 million Euros of funding in the past four years
Source: nuevatribuna.es - 21/01/2015 http://goo.gl/jdkQYp
The consumer/citizen identifies as one of the main consequences of the crisis, the weakening of lots of support networks, specially regarding the institutions of the classical Welfare State.
Facing some years ago, there is the feeling that this will become a structural and ultimate status, which produces fear regarding an eventuality of not having covered certain needs and / or desires in the short or medium term.
The tax authority foresees that the piggy bank of pensions will run out of funds by 2018
Source: El Confidencial - 24/02/2016 http://goo.gl/nuPn47
They are addressing and solving needs (transportation, energy, health, etc.) that were traditionally addressed by the public welfare from the private and collaborative perspective
Private & common alternative for public emptiness
With more or less acceptance, citizenship perceives inevitable that the market and civil society will end up taking care of those need neglected and / or abandoned by the public sector areas.
9Vulnerable Citizen looks for refuge
Som Energy: consumer cooperative green energy
www.somenergia.coop/es/
Caja Rural Pension Plans
Santander Bank: Generación Encontrada
https://youtu.be/zYHNBRfp5OA
https://www.youtube.com/watch?v=8jHiRYxJqSM
www.somenergia.coop/es/
10Vulnerable Citizen looks for
refuge //
Beyond the ideological thoughts, it is assumed –since the feeling of no return-
that the private or common initiative develops competencies up to this
moment proper of the public sector.
The feeling of no return
2. Millennial consumer, or how to make a virtue from needs
(...) more than a third of
employees (34%, 6.7
million) are seiscientoeurist
as. For them, being mileurista
is an utopia.
12
The inability of the Millennial population to become part of the labor market under conditions that allow them to access large goods, leans toward the micro-consumption or short consumption- (electronics, small trips ...).
These micro-consumption meet small immediate goals without compromising a future that from a personal point of view is anticipated uncertain and unstable (intermittent labor careers and cycles of abundance and "shortage" in the personal finance).
Source: bez.es - 02/02/2016 (http://goo.gl/cs8a0M)
El Mileurismo como utopía – Joaquín Estefanía(El País - http://goo.gl/RZYVJz)
Variation of the workforce in the last four years, by age segment
Millennials have given an answer in terms of consumption values for the structural disability to access high cost products
The experience of use and enjoyment without purchase
Millennial consumer, or how to make a virtue of need //
13Millennial consumer, or how to make a virtue of need
//
Millenials look for the benefit of use & enjoyment without the compromise that implies the ownership or the long-term agreements.
Meet the need without the toll of the property
This situation opens the door to new proposals for leasing, collective properties, shared uses and innovative ways of renting.
In products of high and medium value, new generations of consumers try to
avoid property leaning to "Rent experiences of use."
Millennial: the benefit of use and enjoyment without going through
the property
14Millennial consumer o cómo hacer de la necesidad
virtud //
3. My standard is NOW
16
Waiting periods have become a source of anxiety that the user perceives “preventable”Little tolerance to not immediate
Whether as a consumer, user, or customer, it has been standardized the instantaneity as a settled reality, demanding it to all areas and categories of their daily life (from the answer in WhatsApp, to the content access or the delivery of an online purchase).
This instantaneity is also accompanied by the demand for permanent control over the specific situation they are facing and the status from their communication, order or transaction are in every moment: if their message has been received (and read), where their purchase is, how long their taxi will take to arrive, etc...My standard is the RIGHT NOW //
17
The immediate service and instant communication are taken for granted: the expectations have become risk factors in relationships, whether commercial or personal.
Immediacy is a standard for the consumer, but still a difference between companies.
36% of Spaniards left an establishment without buying anything if they find a queue in the checkout
Source: State of Retailing Study-2015
(Epson)
36% Buyers that don't expect more than three seconds before abandoning an e-commerce web or travel
Source: Forrester Consulting on behalf of Akamai Technologies (Online Consumers )
40%
My standard is the RIGHT NOW //
Stress factor that drives and electrifies organizations. Great potential for
innovation accompanied by service attention, POS management and
logistics.
The dictatorship of NOW!
18My standard is the RIGHT NOW
4. Transfer of referents among categories
Directivo responsable servicio Post-VentaEstudio para cliente TCA (2016)
20
They are those companies that provide the best experience, regardless of the sector in which they operate.
The reference is not necessarily the leader in same the category
The standard assessment of a service is no longer the best player in each category: references and requirements are transferred among categories. Thus, disruptive companies are establishing demands requirements, whether in service or technology. Expectations regarding to incorporate innovations are transferred instantly, to every moment of the customer journey.
Likewise, during the product development “the minimal viable product” is a consideration, for the consumer there is a “minimum assessment criteria” among categories.
(...) the consumer does not understand that when they come to our post-selling, they don’t need to have a selection process and a definition of the visit (time, location, type of visit), this is different from what happens when going to Sanitas or when buying a ticket.
I don’t understand how the people over the phone can tell me exactly, each second, the consumption of my mobile data, but when talking about the light, the gas and the water. They need to do “an estimation”Electricity Company CustomerStudy for a TCA client (2016)
Transference of referents among categories //
21
The consumer expects to find best practices of each category in all their consumption.
The meaning of "competitive environment" is expanded
It is in the use of technological solutions where the consumer takes for "granted" and with more intensity the transference: once a device / technology solution provides a significant benefit in a category, it is claimed of the rest of the companies.
They already has it
They will buy it before 12 months
They will buy it in the next 1-3 years
Source: Engaging the Digital Consumer in the New Connected World-2015 (Accenture)
Devices they own and the intention of acquiring it
1212 17
12 17 11
12
8
17 14
9 1316
9
10
8 14 14
8 12 10
Wearable fitness monitor
SmartWatch
Camera or System of Internet
surveillance Car entertainment system
Smart thermostat
Health device wearable
3D Printer
Personal Drone
40
41
7
417
7376
3814
386
16 13
355
284
16
10
They will buy it in the next 3-5 years
Transference of referents among categories //
A significant disruption of service that transforms the customer experience in
any category, it is requested immediately to all other
Transference among categories
5. From anger to long friendship
24
Facing any issues, the consumer is prepared to the worst
They are not used to take care of the experience in the management of errors.
Only 25% of respondents worldwide said they feel that employees "are on their side".
Investigación global sobre la experiencia del cliente (AchieveGlobal)
25%Consumers and users have accepted errors and problems as part of usual relationship with brands. It is part of the humanization of organizations: fallible, "smelling" the people behind.
At the same time, they have also been used to mismanagement of errors and they got very surprised when the problems are solved with warmth and efficiently.
From annoyance to a long friendship //
25
Management of errors, crucial for an optimal experience.
According to consumers, the best two positive employee behaviors were "apologize" (28% of comments) and "be polite" (17%).
Global Reseacrh about customer experience (AchieveGlobal - 2013)
Sometimes, an adequate resolution “at the right moment", with an appropriate emotional tone might mean a really differential added value in the customer experience and on the brand image, especially for those companies that are not leaders in their category (in the case of leaders, the degree of discomfort by the incidence is not lowered despite great attention).
The two main negative employee behaviors that were mentioned: "being rude" (23% of comments) and give an "automatic or false" response (17%).
From annoyance to a long friendship //
The number of incidents does not necessarily affect satisfaction with the
company: companies with a larger number of incidents may have a better
NPS, thanks to their management of incidents.
An adequate error management can improve the NPS
6. Customer Centric: The paradox of enterprises; the most vulnerable employees are also the protagonists.
28
The customer- centric attitude involves a shot of stress in organizations that lies especially in the human touch point of direct contact with customers (attention & commercial)
The Customer-Centric enterprises place a great strain on the front line of service
Consumers and their demands to organizations ( the standard of
the Now, level of demand transferred from other
categories, relevance of the management of incidence)
operate as a stress factor that tense the companies, take them to the limit, blowing their seams
and question both, organizational structures as processes.
And that stress is managed essentially from the profiles of
first line.
The easy and routine things will not need
qualified staff, but P2P interactions will become more sophisticated, and
companies should be aware and having
adequate staff to handle these situations.
Achieving this symbiosis requires people who do
actually have certain skills, but also requires
that companies give them a special
treatment, invest in their development and really place them in the "front
line" within their organizations.
Fuente: Laura Abarquero (Director Client Strategy.
ING Spain&Portugal)
Customer Centric: The paradox of the enterprises //
29
The responsibility to provide optimal customer experience lies on highly precarious profiles, outsourcing, worse working conditions, high turnover, etc.
The responsibility lies with the more precarious profiles
Average annual salary in Spain (2013) and variation in acquisitive power over the previous year
80.330€Senior Executive Mid-level managers
36.552€Employees
21.307€
Source: Evolución de las retribuciones durante la crisis 2007-2014 (ICSA y EADA Business School)
+3,42% - 8,56% - 4,72%
Customer-Centric: The paradox of the enterprises //
The most vulnerable employees, the protagonists. The commitment for the
"first line" is not limited to the design of attention processes, onboarding or sale:
it also involves a professional revaluation of the profiles in contact with
the customer
Customer-Centric: The paradox of
enterprises
7. Educated in comparison
32
In certain sectors (insurance, mortgages, flights, ...) where the comparators have achieved to place themselves as reference mediators, the consumers have learnt to assess the offer, exclusively by the consumer contemplated criteria, where the price is central. This dynamic standardizes the market and impacts on shaping the offer: companies decide to develop a "minimum comparable product" that allows contrast with other competitors in the category from the available platforms.
Insurances buyer
Relevant when the consumer is in front of products that are difficult to understand (insurance, mortgages, ...) or products whose offer is unmanageable (cars, travel, ...).
Buyers: Solving the complexity of the decision at the same time that they provide standardization to the market
Educated in comparison
rastreator.com
momondo.es
Travel Buyer
33
The "Education" of consumers that has been driven by comparators force the companies to deploy a progressive enhancement of the product when they already have the consumer in their environment (lead) or when is already a customer: is the moment of the ancillary, cross selling or loyalty programs.
At the same time, new products with disruptive character that are launched using categories set by comparators does not face only the acknowledge of the consumer but also the standardizing logic of the comparison. Educated in comparison //
Also, they hamper the launch of disruptive products because of difficulties in introducing new assessment criteria.
Comparators tend to force an initial simplification of the product
Usage-Based Insurance: Global Study
(Ptolemus - 2016)
Vehicle policy app that varies depending
on driving habitsAdventure Travel agency flexible, personalized and oriented to the
integration with destination (public transport, family accommodation, ...)
pasonoroeste.es
They solve the complexity of decision making of user, while they assume a
great challenge to innovation in product configuration.
Comparators and their “teachings”
8. Self-Learning as an opportunity for brands
36
The result of three fundamental realities: the lower relevance of academic credentials, availability and accessibility to micro-content
The impulse and the self-learning boom
Internet has made cheaper and universal the access to learning environments. This accessibility, particularly used by younger people, often takes place outside apart from the classical education institutions, without taking in consideration the "credentials" that formally education provides.
Self-Learning as opportunity for brands//
4,8
La sociedad de la información en España (Fundación Telefónica - 2014)
Media
10
20
30
40
50
De 14 a 19
años
De 20 a 24
años
De 25 a 34
años
De 35 a 44
años
De 45 a 54
años
De 55 a 64
años
De 65 a 99
años
28,537,2
33,1 33,132,6
26,5
14,7
4,8
People over 14 years who have made online courses from May to July 2014
37
Brands can play their role within self-learning environments
Learning environments (Youtube, MOOC, blogs ...) are spaces of access to valuable content, propelled content equally, educational organisms..., but where the brands and organizations can play an important role is from educational programs to micro-contents associated to their products / services.
Source: VII Estudio Anual de Redes Socialeshttp://goo.gl/mlfGtG
(The Cocktail Analysis- 2015)
www.google.es/landing/activate
miriadax.net
Self-Learning as opportunity for brands//
The consumer / citizen self-learning attitude facilitates a relationship with brands / organizations supported on a proposal content, whether micro, or
even "study plans" of certain ambition.
Brands as learning facilitators
9. The metamorphosis of low cost enterprises
40
The saturation of Low Cost players makes that the affine consumer, without abandoning the centrality of price, also contemplates criteria such as customer experience or quality of service / product
Enriching assessment criteria
The Low Cost's consumer (almost all, in at least one category) has learned to sophisticate its relationship with a conglomerate of companies that compete with the same model (in any category there are several LowCost). Whether by this sophistication of the relationship or by a more economic breathing space, begins to be receptive to use new selection criteria in addition to the price that is now taken for granted.
The metamorphosis of low cost enterprises//
Satisfaction with operator services (0-100)
Source: encuesta “Satisfacción con los operadores de telefonía” (OCU-2014)
Voice
co
vera
ge
Data
Co
vera
ge
Cust
ome
r sup
port
Invo
icing
SATI
SFAC
TIO
N
86787881
7674
7368
7769687162
5956
61
8976737170
5552
57
9183747474
5555
56
8577767470
6462
67
41
The expectations are higher: they take for granted the price, but some specific brand criteria appear, of shopping experience or service, of product configuration ...
Being cheap is not enough anymore
Part of the exercise of Low Cost companies is to identify the possible
existence of sub-segments within a
target that has been maturing relationship and thus fragmenting.
Source: Libremercado.com - 10/06/2015 (http://goo.gl/WDNn9v)
Source:02B.com - 10/01/2016 (http://goo.gl/JIHhJd)
Ryanair bets for a "most stylish" cabin.
DIA creates a new brand aimed at fresh produce
The metamorphosis of low cost enterprises //
The new challenge for Low Cost lies on identifying and implementing those
elements of value for a client, which in turn, has become sophisticated and
diversified.
The expectations are higher, being
cheap is not enough anymore.
10. Internet privacy: from the fear of Big Brother to the market of the data
44
Cookies have indicated to the consumer the relevance of their digital behavior.
From suspicion to value
In recent years, several regulatory developments have been imposed as mandatory warns for users about the capture of their browsing data through cookies.This, along with the expansion and standardization of services based on navigation knowledge, which end up being perceived by the consumer, have favored the user become aware of itself and their data as a business object. Internet privacy: from the fear of Big Brother to the market of the
data //
Spain
30
40
50
60
70
80
90
100
20
10
Italy
Total Europe
Netherlands
Germany
France
UK
Denmark
% - Think that their personal data have economic value
State of Privacy Report (Symantec - 2015)
45
Since special offers, personalized services or an extremely individualized attention.
The consumer demands a tangible performance at the data capture
Likewise, the consumer requires maintain the control of their information in order to respond to failures or dissatisfaction of their expectations with the withdrawal of concessions.
Fuente: Transformación digital en banca: la perspectiva del consumidor (The Cocktail Analysis - 2015)http://goo.gl/gjcfWQ
Promotions based on their use of the
card, in establishments
they usually visit
Investment products
based on the customer
data
Home insurance if
they just take out a mortgage
% - Spaniards respondents very interested that their bank would offer
them proactively
51%28%
Car insurance if they just take out a loan to purchase a vehicle
22%23%
Internet privacy: from the fear of Big Brother to the market of the data //
The consumer has not only lost the "fear of being watched”, but also demands
"the best deal" in exchange for its data.
The consumer willing to negotiate for its information
11. Don’t ask me what you already know
48
This is a derivative of the learning of "data market" and "standard of right now" if you know me don’t make me wait or repeat information
If you know me… then anticipate
The user is accustomed to receive any kind of offers and advertising adapted to its profile (needs and demands), its hobbies and even its navigation.
In occasions they get upset if they need to introduce profiles, interests or product preference settings in sites they have previously visited.
Don’t ask me what you already know //
Save data of its last purchasesQue guarde los datos de mis últimas compras
5 10
15
20
25
30
35
40
50
45
55
60
65
Need to register o the siteTener que registrarme en la páginaReceive personalized offers regarding my purchases
That all my searches are saved so, while I navigate I can see related advertising
% - Spanish respondents report they agree or strongly agree with each of these aspects of
eCommerce
Source: encuesta “Los hábitos de compra online de los consumidores españoles”
(IAB - 2015)
49
Transverse to all categories: financial institutions, retailers, the hotel chain where I usually stay, the usual websites...
It is recognized the interest for the anticipation
Beyond the benefits of the personalized offers, the claim is anticipate the consumer desires, translated in the customization of the product, service and navigation (when the interaction is digital). Customization
will be more important for me
in the coming years
Personalization and targeted
offers encourage my brand loyalty
I am glad that the brands register my purchase habits in order to give me a tailored advertising and personalized
offers
% - Spanish respondents that report they agree with the following statements
Source: State of Retailing Study (Epson - 2015)
79% 73% 73%
Don’t ask me what you already know //
Anticipation to consumer desires and needs becomes a structuring element of
a good customer experience.
If you know me, anticipate my
desires...
12. The Micro-moments of the smartphone: shuttles or self-sufficient?
52
The Smartphone is the Hub which pivots presence management and relationship to the digital realm.
The Smartphone, the device by excellence in micro-moments
The Smartphone has become and consolidated as the device by excellence when it is talking about filling some “micro-moments” (or no-moments, those which happen among tasks or activities: displacements, waitings, short breaks…). Those instants are dedicated in the accomplishment of some tasks that do not need great concentration neither imply great compromise: consultations, locations, communication, little purchases or micro transactions...
Occasionally, more demanding activities are conditioned to time disposal and of other device.
51% 41% 41%
36% 33% 26%
Among those who see content on smartphone, moments and places that access to it.
Out of home; in transportation, during
meal time, ...
At home when I can not use the TV (in bed, in the
kitchen, ...)
On vacations or weekends out of home
At home when the TV is being used by others
At home, even if the TV is not being used
At other people home
Source: VIII Oleada Televidente (The Cocktail Analysis - 205)
http://goo.gl/1ql9q5
The Micro-moments of the smartphone: shuttles or self-sufficient? //
53
The understanding of needs (intentions) and contexts of use should guide the design of the service and the role of the Smartphone: starting point or complete experience.
The Smartphone, the starting point
A starting point always determines the route: the Smartphone is the
first contact to activities that imply greater concentration and
commitment (contracting,
assessments ...), whose design should include an initial start on the mobile
device even if they are concluded in another
https://www.youtube.com/watch?v=QvMqzRilvnY
Another alternative in terms of design is to facilitate at maximum processes
that can be solved from the Smarthpone (click & close)
These micro-moments are critical touch points within the current
customer journey, and when they are together, ultimately determine how the
trip ends up.
Source: Micro-Moments: your guide to winning the shift to mibile (Google - 2015)
https://goo.gl/6aXaH2
Contexto
Inmediatez
Intención
MICRO MOMENTO
The Micro-moments of the smartphone: shuttles or self-sufficient? //
1) Designing for "guiding" its closure in other device different than where
initiate the process2) 2) or simplify at maximum to finalize
them in the Smartphone itself.
Strategies at the micro-moments
Thank you.
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