The New Smart Customers - How They Really Buy

The New Smart Customer | euroIA – Paris | 1

The New Smart Customers

http://www.flickr.com/photos/tao_zhyn/2450284882/


THE NEW SMART CUSTOMERS

The New Smart Customer | euroIA 2010 – Paris | 3

THERE AREMILLIONS


AND THEY AREALL DIFFERENT

http://ken-jennings.com/blog/?m=200809


THE SHORTEST DISTANCEBETWEEN TWO POINTS

IS NO LONGER A STRAIGHT LINE.


What used to be this….


Is now this


Situations

Customers get in touch with brands in various situations – be it relaxed at home or in a hurry while traveling. They may live in a big city or in a small town where the next retailer is miles away.


How customers really buy

9


CULTURE

The purchase path depends on different factors

PRODUCT

personalitypreferences

habitsattitudes

everyday productsinformation-intense productslook-and-feel products

urgency to buy the productshopping infrastructure


Spontaneous purchase

http://www.flickr.com/photos/37504045@N00/237947864

There are different ways to shop for products. Sometimes we buy spontaneously, out of mere pleasure, not having realized that we wanted to have such a thing before. Sometimes we consider purchases more deeply: During the considered purchase we spend some thoughts on what to buy and we do some research beforehand.


Considered purchase: criteria

My new camera:easy to carry aroundtakes great photostelephoto and wide-angle lensmanual shutter speed and aperturerechargeable, but also works with normal batteries


Research process

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visited small stores and big chain retailersspoke to staff and tested in-storeread consumer magazinesspent 10 hours online: price comparison, manufacturer websites, product details onlineborrowed a camera and tested itblogged about the experiences


Decision & purchase


After-purchase

Used and evaluated the cameraRecommended the camera to others online or in real lifeStayed in touch with the brand and the retailer


The purchase process


Purchase paths

Forrester 2009, Depicting European Shoppers’ Complex Purchasing Decision Path


The purchase process: Idea

http://www.flickr.com/photos/kubina/1497679352/


Need identification How did you get the idea for the purchase?

SapientNitro online survey August 2010


Specificity of product vision


How specific was your initial idea of the product in your opinion?

My criteria:easy to carry aroundtakes great photostelephoto and wide-angel lensmanual shutter speed and aperturerechargeable, but works also with normal batteries

My criteria:a good camera


The purchase process: Research

http://www.flickr.com/photos/andercismo/2349098787/sizes/l/in/photostream/


Product types

Consumer electronics

Travel

Beauty, cosmetics and health

Food

Clothing and footwear

Mobile phone or accessories

Furniture

Media and leisure

Computer hard- & software


Information gathering



Computer hard- and software


very helpful

a little

helpful

not helpful

Offline

Online

Channel

neutral

It is about information


Clothes and footwear


very helpful

a little

helpful

not helpful

Offline

Online

Channel

neutral

It is about look and feel


Travel


very helpful

a little

helpful

not helpful

Offline

Online

Channel

neutral

It is about price


More online information gathering

I searched department stores online to see where I could find the same boots for the best price. (Bought Frye Boots.)

I watched for e-mail deals from airlines, specifically spirit air. (Bought a travel.)

I emailed the reseller asking for further detail on the product. (Bought herb pots.)

Browsed the Dell Outlet store and signed up for their offers program. (Bought a laptop.)

I compared which websites had free shipping. (Bought a stand for gardening equipment.)

I looked at different aggregators websites (Expedia and Opodo). Their user experience is different and it gave me information to refine my results. (Bought flight London-Sydney.)I watched the product and similar products on eBay auctions to compare price difference for new vs. used products (Bought a Therm-A-Rest camping matress.)

Video reviews on Youtube is super helpful. (Bought printer/scanner/copier.)

What else did you do to be able to make your decision?


Open Question in SapientNitro online survey August 2010

I created a list of all my options - prices, dates, places covered and prioritised them. (Bought a holiday to Jordan.)I also photographed the products and scanned the barcodes to locate pricing on the web that could beat the physical store. (Bought socks.)

I got home demos from manufacturers (Bought home water purifier system.)

Watched television shows dedicated to gadgets and mobile phones. (Bought an HTC Desire.)

More offline information gatheringWhat else did you do to be able to make your decision?


45%SapientNitro online survey August 2010

Consumer Commerce Barometer 2010

of respondents to the Consumer Commerce Barometer study sometimes check availability online before going to the store.



of respondents to the Consumer Commerce Barometer study have taken printouts of product

information to the store.

23%


80%SapientNitro online survey August 2010

of smart-phone owners in our survey have used their mobile phone in-store to retrieve product

information.

The New Smart Customer | euroIA 2010 – Paris | 32 32

Dark figureSapientNitro online survey August 2010

http://lh3.ggpht.com/_eN9tzgso-m0/S3k81g8DNQI/AAAAAAAAIpY/fwN9hLEpEaY/s720/F.P.HoseNeu3.JPG

Some respondents also reported to have taken photos in fitting rooms to continue their research online later.


Dark figure

http://lealoves.blogspot.com/2008/07/akute-shoppingunlust.html

On the internet consumers also blog their pictures to share their experiences and get other people’s opinions.


The purchase process: Decision

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Ease of decision: Products

easy to decide

difficult to decide

so so


In-store demo

Advice from store staff

Calling customer care.

Consumer magazines

Most helpful for making a decision

Personal recommendations and advice from friends and family

To see and test the productChats and

ForumsReviews and Ratings

Price comparison engines

Detailed product information

Product comparison

Good pictures from multiple perspectives.

Demo videos

Trust in the brand


The purchase process: Purchase

http://www.flickr.com/photos/srs0001/4562512283/


Reason for purchase channel


The best price.

I could see and test the product.

Online Offline

Great assistance by staff.

No delivery times, I don’t have to wait.

It was the easiest.

It was the closest.

I had a voucher.

I got a discount.

In India: So I know what I get.

Ease of delivery.

No pressure by sales people.

It was on sale.

It was not available in-store.Avoided the lineups.

More choice.

I had a voucher.

24 / 7


90%



of respondents in the Sapient internal study report that they have already used price comparison engines.



24% find arranging suitable delivery times

difficult.

42% find returning items inconvenient.

38% think that shipping cost is too expensive.

https://www.dpd.com/de/content/download/763/7406/image/DPD_Bildmotiv_Zustellung_2C_02.jpg



23%

http://www.flickr.com/photos/brackch/4351273998/

have already reserved an item online and picked it up in-store.


The purchase process: After-purchase

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After purchase


Have you ever done one of the following… ?


The purchase process: Lessons learned

The right formula for every product – be it information, mood, look & feel or ratings

Intrinsic triggers.All you need to do is make them stay!

Bring the information of both worlds together to enable decision making

Trust.Good prices.Fast and flexible delivery.

Engage your customers and make them help you.


How can we address this?


CREATE RELEVANCE


Why?

How?

What?

Golden circle

by Simon Sinek


Toolbox

http://www.flickr.com/photos/ctreadway/3607458841/


KNOW YOUR SYSTEM AND PROCESSES


A great team


KNOW YOUR CUSTOMERS


Field studies

Well known sources

Customersegmentation

InterviewsSurveys

Focus GroupsTesting


Web analytics

Web analytics helps you to understand the behavior of your customers: Know where they come from, track the buzz around your brand, products or services on Twitter, check if your conversion funnel works well.


MODEL THE EXPERIENCE


Personas

Extend your Personas: Think about their online behavior and their touchpoints with your brand: This could be local retailers, the call center or your Facebook page – they will always leave their marks and shape the brand experience.


Customer journeys

Buckminster.be


More deliverables

Service Blueprint Touchpoints Matrix

Mental Model Experience Map


Show time

http://www.flickr.com/photos/st3f4n/2769915203/


BE HONEST


Shared customer experience

Juicystar01 has nearly 500,000 subscribers and over 25 million channel views on YouTube.She presents the results of her latest shopping tour on YouTube in short videos – a user generated product test channel.


Integrate the user

Talbots.com integrates user generated content on their website: Users provide stories on the products and situations in their life

Won Best in Class award for eCommerce @ interactive media awards 2010 Q2.


IT’S ABOUTCUSTOMER EXPERIENCE


Share happiness

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Award-winning ice ‘vending’ machine for Heart brand (better known as Wall’s or Langnese in local markets):Smile and you get an ice cream for free!

Probably not the best way to make money, but very effective to create happy customers who share their experiences with your brand on Facebook and among their friends.


CONNECT THE CHANNELS


This is a music video

http://www.diesel.com/ahundredlovers/

Music video for the spring summer collection of Diesel and also the entry point for the online shop.

Hovering on the people reveals interactive elements. Clicking on those opens a preview of the respective item.

Created by Anomaly and Stink Digital


Put it in the right place

http://www.designbynotion.com/metamirror-next-generation-tv/

Future vision by Notion DesignInteractive experience on a device that suits best the customer’s current situation.


Extend your offline store

http://www.flickr.com/photos/macinate/2016365041/

Create an online presence of an offline store. This can be achieved by creating a white label solution that is later branded by the local retailer. The solution can be used online or as self service kiosk in store.

In contrast to pure online shops provide additional information, e.g. on your special focus. Your online recommendations and reviews will be experienced as coming from a renowned and trusted expert your clientele knows from real life. Furthermore provide local activities to tie the customer to your store (e.g. readings). Make him return not only because of the content he can purchase - he could do that also at Amazon.


Your online team

http://www.flickr.com/photos/bike/3983843569/

This could be your online team. It’s important for your staff to know both worlds. Use your staff as a direct feedback channel to your online self service system.


IN STORE EXPERIENCE


Intelligent signage

© 2010 SapientNitro and Designaffairs

A short user journeyA customer walks by the store front and discovers an interactive ‘window’ with product information on featured products – 24 hours a day / 7 days a week.


Interactive mirror


A short user journey (continued)She finds a jacket and has a look at herself in a mirror. She swipes the badge of the jacket on the mirror and gets information on the item and on related articles. She tries on one of the suggested trousers. Unfortunately it is too big but the correct size is available in the online store. She adds the trousers to her virtual shopping basket.


Mood box


A short user journey (continued)In the changing room she is provided with different ambiences. She finds herself immediately transferred into her next hiking trip in the mountains.


CONTEXT IS KING


Augment your information

http://www.taschenkaufhaus.de/

Which items fit in this bag?taschenkaufhaus.de not only shows the measurements of the bag but also views from different angles and the bag in context with a person’s silhouette, so the customer can understand the size relations.


Provide contextual tools

Ionos: Mobile app for iPhone and Blackberry

Ionos’ Mobile app for iPhone and Blackberry focuses on the special context of a person at an airport. The user can retrieve information that is relevant in this situation, such as flight status and real-time change alerts, parking lot availability, gate information and maps, security waiting times and concessionaire listings (including user ratings). The user can also retrieve information on ground transportation options, baggage claim locations and local weather conditions, which become relevant after arriving at the destination.


TRACK CONVERSION


Web analytics

http://www.flickr.com/photos/arcadiaphotographicuk/4883308302/

Vouchers available online bring your customers into the store and allow you to track online-to-offline conversion: A unique QR code on the detail page of a certain product can be saved as a bookmark. Revealed in store the customer gets a free cup of coffee with some cookies in return – and you know what website the customer visited at home that made him come here.


Smart targeting

http://www.flickr.com/photos/davepearson/537557306/

Smart Targeting by SDL Tridion matches search terms used by visitors to display relevant results. Thus you know where your visitors come from – be it Google, Facebook, Twitter, your search marketing campaigns or affiliate websites – and enables you to create an intelligent and dynamic CMS.


Wrap up


Wrap up

Know your system and processes

Know your customers and their current situation

Focus on the why and create relevance for the customer

Align your information and offerings

Connect the channels and track the paths

Create a connected customer brand experience

Know their needs in each phase of the purchase process


Sources and recommendations

BooksUnderhill, P. (2008). Why we buy: The science of shopping. Simon & Schuster. Schwartz, B. (2005). The Paradox of Choice: Why More Is Less. Harper Perennial.

Reports and studiesFehrenbach, C. & Rösgen, A. (2010). How the customer really buys. Sapient internal online survey on consumer behavior (internal resource).Camus, L., Freeman Evans, P., Klevchuk, O. & McGowan, B. (2009). Depicting European shoppers' complex purchasing decision path. Forrester.Freeman Evans, P., Camus, L. & McGowan, B. (2010). Trends 2010: European retail eBusiness and channel strategy. Forrester.

Online resourcesConsumer Commerce Barometer: consumerbarometer.euSinek, S. (2010). The Golden CircleTED presentation: http://www.startwithwhy.com/#video1


Carmen FehrenbachInformation Architect

Psychologist Focus on Media Psychology

Axel RösgenSr. Information Architect

Industrial DesignerFocus on Computational Design


THANK YOU!www.sapientnitro.comTwitter: @sapientnitro

facebook.com/sapientnitro

[email protected]@sapient.co

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The New Smart Customers - How They Really Buy

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