EMBRACING THE MODERN CONSUMER DECISION JOURNEY

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Embracing The Modern Consumer Decision Journey

Equipped with these capabilities, consumers have come to dictate how, when and where they engage with brands and purchase products. Accompanying this reality is a deluge of unconnected and unstructured data, events and records against which the conventional analytics approaches of global brands stand little chance towards revealing the many “whys” surrounding consumer behavior and intent. Rather than react to consumer movements, brands must proactively respond to “shift on the fly” sentiment and create richer, more pertinent purchasing experiences. Utilizing the military-proven concepts of signals intelligence, brands can uncover a deeper understanding of the modern consumer decision journey, as well as the relative opportunities within each critical stage, to drive optimal engagement and consumption.

is the average cost to develop and launch a new consumer product

Nielsen1

of new consumer products remain on the shelf for less than 12 months

HBR2

of all new consumer products fail to return their cost of capital

Deloitte3

Brand’s abilit

y to

deliv

er o

n pr

omis

e

and quality of

pro

duct

is c

ritic

al

CONSIDER (Initial Consideration)

PART 2

BUY

START

calls this:

IN

FINIT

Y

LOOP

EVALUATEADVOCATE

LOYA

LTY

LOO

P

Anticipating consumer needs and aligning

the brand experience to this is vital

FMOT

First Moment of Truth

ZMOT

Zero

Moment of Truth

PART 1

TMO

T

Third Mom

ent of Truth

Second Moment of T

ruth

SMOT

UMOTUltimate Moment of Truth

BOND

EXPERIENCE

These staggering figures reveal that consumer goods companies need a faster, more effective and less expensive way to make data-driven product decisions. And we can look no further than the modern consumer decision journey as a primary area of concentration for a new intelligence-driven approach. Today’s real-time consumer decision journey has never been more challenging due to fleeting loyalty, rampant product switching and continually changing needs. In 2016, the world’s top 500 consumer brands spent over $800 billion extending, researching, developing and commercializing products, but almost 80% of these same companies experienced a decline in market share that year. The reasoning for this erosion is simple; with the emergence of agile micro competitors, the ubiquity of mobile devices and the proliferation of digital media, today's always-on shoppers have unparalleled access, choice and buying power.

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Embracing The Modern Consumer Decision Journey

1. CONSIDERATION

2A. EVALUATION – ZERO MOMENT OF TRUTH

Critical Questions

With brand awareness most critical, are your marketing messages aligned with the latest consumer trends or

fads? Are audiences responding favorably to your brand image or are competitors winning the battle? Are your

advertising channels truly effective and optimized?

Critical Questions

Can you discover and understand the impact of third-party reviews, key opinion leaders and

digital body language? Do you understand brand preconceptions, relevance and connectivity

indicators beyond “likes,” “retweets” and “clicks?”

transitions from consider to evaluate, digital channels take on an increasingly vital role. With brand awareness playing such a critical role in the consideration stage, it is imperative for companies to assess if marketing messages are aligned with the latest consumer interests, as well as fully-leveraging and optimizing the necessary advertising channels. Clicks and pageviews are insufficient for telling this whole story. Qualitative data that provides an interpretation of actual consumer voices towards your brand and associated campaigns is a must.

Truth” (ZMOT), representing the detailed effort of digitally browsing forums, reviews, social media and other websites for pertinent answers. Brands are best positioned for success at this stage by understanding consumer questions, challenges and concerns, as well as providing unbiased information with the highest level of transparency.

The consumer decision journey begins with the consumer's initial consideration of branded products and services based upon exposure to ads, in-store merchandising, a social encounter, and other types of stimulus. Traditionally, this stage contained the largest number of brands to consider; however, today's consumer, surrounded by media and presented with a multitude of choices, will many times over reduce the number of products they consider at this stage. Non-digital channels such as television advertising, in-store shopping and word of mouth are most impactful at this stage, but as the consumer

At the evaluation stage, consumers undertake direct outreach to websites, marketplaces and other digital sources for product specifications, reviews and ratings. This information has a much higher likelihood of impacting consumer decisions than “forced” efforts to sway them. Brands are no longer the de facto resource for the quality and value of their products and services. Google refers to this at the “Zero Moment of

66%

of smartphone users will turn to their devices to further research the content

viewed in a television commercial – Google4

90%

of consumers say their buying decisions are influenced by

online reviews – Dimensional Research5

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Embracing The Modern Consumer Decision Journey

of consumers change their minds just before a purchase due to something they see or hear

– McKinsey & Company6

40%Up to

89%

customer retention rate for those companies with extremely strong

omnichannel strategies– Aberdeen Group7

2B. EVALUATION – INITIAL MOMENT OF TRUTH

3. BUY

Critical Questions

With the blending of digital and physical experiences, are you anticipating different interaction points with your brand or product? Are these interactions aligned with and geared

towards satisfying consumer needs and adaptable to changes?

Critical Questions

Do you understand how to rapidly close the gap between purchasing intent and propensity to buy? Is your customer engagement strategy aligned to

specific needs and behaviors?

heavily on digital third party sources. Consumers will be making buying decisions based on reviews, key opinion leader critiques and retailer feedback, among other outlets. Savvy marketers realize that fully understanding consumer opinion on product quality is much more than just the number of “likes” and “retweets.” Identifying key blogs, review sites and rating engines to derive true, underlying feedback tells the real story.

offerings. Today’s empowered consumers expect a variety of purchasing alternatives (online via browser, mobile app and in-store) combined with different fulfillment options (in-store pickup, home delivery and same-day shipping). An advanced omnichannel strategy ensures that you are aligning to any potential combination of the consumer’s desired needs.

The second phase of the evaluate stage is the “First Moment of Truth” (FMOT); where the consumer has reached a finalized “short list” of products and is performing last-minute evaluations. This would include detailed reviews and comparisons, both digital and in-store (usually both) and potentially even concurrently. The evaluate stage turns the emphasis away from product information and instead leans

This is the stage in which the actual buying decision is executed. Traditional components of the purchasing cycle such as pricing, packaging, placement, availability and sales assistance continue to play a key role. However, this is also where the “Path to Purchase” becomes a vital part of the process; specifically, the extensiveness of your omnichannel

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Embracing The Modern Consumer Decision Journey

4. EXPERIENCE

5. ADVOCATE

Critical Questions

Do you understand the initial “whys” behind consumer experience, sentiment and satisfaction? Are

customers sharing their reasons for purchase? Are early impressions positive, neutral or negative? Which

digital channels are they most utilizing?

Critical Questions

Are they passive or aggressive in sharing feedback? How does this compare to customer responses of your competing brands?

Do they engage directly with you or only third-party sources? Does this depend upon positive or negative feedback? And are customers invested enough to share suggestions for short-term

extensions and/or longer-term innovations?

foundation for potential future purchases is being laid. Further consumer interaction at this stage would include registering for warranty, following brand on and sharing purchase via social media. It is also critical for the brand to ensure that troubleshooting issues and customer support options are easily accessible at this stage.

customer is willing to share this sentiment via social media and, potentially, word of mouth. These feelings may be short-lived or could progress into the Bond stage. It is also possible that the customer enters the “loyalty loop” and repeats purchase without considering or evaluating competitive brands.

With the purchase having taken place, the emphasis shifts to a deeper brand connection as the consumer begins to interact with the product and with new digital touch points. This is the “Second Moment of Truth” (SMOT) and represents the consumer’s experience with the product in a home environment. Initial impressions are developed and the

The advocate stage is the “Third Moment of Truth” (TMOT) and occurs when a consumer shares their experience and promotes your brand with a testimonial or review. This moment is when the “consumer” becomes the “customer.” There is initial purchasing happiness and satisfaction, and the

Customers referred by other customers have a

37%

retention rate

– Deloitte9

90%

of customers expect consistent interactions across channels

– SDL8

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Embracing The Modern Consumer Decision Journey

6. BOND

Critical Questions

Can you ensure your new customers will enter the “Loyalty Loop”, not become lost in the “Infinity Loop”

by determining brand affinity traits and amplifying them via preferred channels, as well as continuously

engaging in consumer centric innovation?

a seemingly limitless supply of continuously-expanding unconnected and unstructured digital data, a deeper understanding of the consumer decision journey and the relative opportunities within critical decision points is at our fingertips.

Signals Analytics invites you to join us for the continuation of this discussion in our 6-part series The Modern Consumer Decision Journey, where we will explore how consumer goods executives can utilize augmented intelligence to stay ahead of always-shifting consumer wants, needs and demands, as well as drive deeper omnichannel engagements and greater brand loyalty to win in today's ultra competitive and increasingly fickle marketplace.

The bond stage is the “Ultimate Moment of Truth” (UMOT) and occurs when the “customer” becomes a “true fan” of your company. The raving reviews and word-of-mouth marketing make this customer a loyal and vocal champion of your brand - the utopia of marketing. They are personally invested in your brand at this stage and desire to digitally interact with you. Even more importantly, there is the highest possible likelihood that they will enter the “Loyalty Loop” wherein they bypass the consider and evaluate stages and proceed directly to the buy stage for their next purchase of your product.

In the real-world, providing the optimal consumer experience is an ongoing challenge. Rapidly changing consumer needs and a steady influx of new digital avenues increase the difficulty of staying ahead of shifting trends. However, with

73%

of customers prefer to buy from brands that personalize their

shopping experiences – Accenture10

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Embracing The Modern Consumer Decision Journey

1. Nielsen, Proprietary Research.

2. "Why Most Product Launches Fail," Harvard Business Review, April 2011, by Joan Shneider and Joan Hall; https://hbr.org/2011/04/why-most-product-launches-fail

3. Deloitte and Doblin Group, published in Fast Company, April 2012; https://www.fastcompany.com/1829483/8-ways-ensure-your-new-product-launch-succeeds

4. think with Google.com, “4 New Moments Every Marketer Should Know;” https://think.storage.googleapis.com/docs/4-new-moments-every-marketer-should-know.pdf

5. “The Impact of Customer Service on Customer Lifetime Value,” Survey conducted by Dimensional Research and funded by Zendesk, April 9, 2013; http://marketingland.com/survey-customers-more-frustrated-by-how-long-it-takes-to-resolve-a-customer-service-issue-than-the-resolution-38756

6. “The Consumer Decision Journey,” McKinsey Quarterly article, June 2009, by David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik; http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey

7. “Omnichannel Customer Care Report,” Aberdeen Group; Digital Commerce 360, December 31, 2013; https://www.digitalcommerce360.com/2013/12/31/why-omnichannel-strategy-matters/

8. SDL Global Study, October 23, 2014; http://www.sdl.com/about/news-media/press/2014/90-percent-of-holiday-shoppers-expect-consistent-brand-experiences-across-channels-and-devices-according-to-sdl-survey.html

References Cited9. Presentation, “Harnessing the Power of Consumer Advocacy to Fuel Efficient Growth,” by Art Ash, Deloitte and Brandon Murphy, 22squared, December 11, 2009; https://www.slideshare.net/brandonmurphy/brand-advocacy-and-social-media-2009-gma-conference/11-Are_you_activating_your_advocatesConsumers (Slide #11)

10. Accenture Study; Digital Trends, December 10, 2012; http://www.digitaltrends.com/social-media/why-consumers-are-increasingly-willing-to-trade-data-for-personalization/#ixzz2g8dgrqko

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