ibm institute for business value capitalizing on the smarter consumer global view understanding and...
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IBM Institute for Business Value
Capitalizing on theSmarter ConsumerGlobal View
Understanding and Responding to the Consumers Wants and Needs
Retail Industry Perspective
Capitalizing on theSmarter Consumer Global View
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Today’s consumers are fundamentally changing industries, brands, interactions, and relationships
“Sales of
4,500,000 iPads in 3Q 2010”*
Source: Fortune October 5, 2010 http://tech.fortune.cnn.com/2010/10/05/how-many-ipads-has-apple-really-sold/
So what characterizes these smarter consumers?
InstrumentedInstrumented InterconnectedInterconnected IntelligentIntelligent
662 million activeusers on Facebook5 billion mobile phonesconnections globally
95 milliontweets are sent each day
45% of consumersask friends before purchasing
75% of peopledon’t believe that companies tell the truth in advertisements3 out of 4 business leaderssay more predictive information would drive better decisions
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Mature
IBM’s Institute for Business Value (IBV) studied this new consumer taking into account 13 countries in both the mature and emerging markets
Total Surveyed Population = 30,624
Canada (2221)
Australia (2274) France (2200)
UK (2200)Germany
(2200)
Italy (2200)
United States (4121)
Emerging
Brazil (2200)
Colombia (2200)
Mexico (2200)China (2200)
Argentina (2200)
Chile (2200)
Source: Institute for Business Value Retail 2011 Global = 30624
Website usage continues to rise
75%75%75%75%68%68%68%68%
2009 2010
Mobile technologies have almost doubled globally and is already more
widely accepted in the growth markets
13%13%13%13% 25%25%25%25%
Technology: Instrumentation has increased year-to-year and mobility has increased 92% globally
Instrumentation has increased year to year and mobility is 48% higher in Chile than the global percentage
Websites have increased 7 %
80%80%
75%75%
Willingness to use TVs to make purchases is growing as a preferred technology like mobile
37%37%24%24%
Source: Institute for Business Value Retail 2011 Global = 30624; Chile = 2200
Global Chile
Mobile technologies has increased 48% globally and is still more widely accepted in the growth markets
25%25%
37%37%
Kiosks are popular across all countries
43%43%
39%39%
InfluencesInfluences
ExpectationsExpectations
The profile of today's Smarter Consumer
Technology
AttitudesAttitudes
AttitudesAttitudes
Consumers attitudes are optimistic globally but they are notgoing back to pre-recession spending levels
• 70% of global consumers are optimistic about the future of their income
• 46% believe income will stay the same
• 24% believe income will increase by 20% in the next 5 years
• Optimism was not limited to the higher income brackets
Kiosks are popular across all countries
Attitude Toward Income Attitude Toward Shopping
20%
19%
Spending only on needs
Searching out sale items
16%Waiting longer to purchase
12%Buying more online
11%Purchase items to
reward yourself
10%Trading up/down in some
categories
8%Spend more on travel/entertainment
5%Eating out more
Source: Institute for Business Value Retail 2011 Global = 5188
InfluencesInfluences
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Globally, 18% of consumers are influenced by the retailer or manufacturer
Who do you trust to provide honest feedback on product information and product reviews?
Source: Institute for Business Value Retail 2011 Global = 30624
Trust Ranking
Family/Friends
45%
21%Customer Reviews
Product experts
16%Retail/Manufacturer
18%
While in Chile, 21% of consumers are influenced by the retailer or manufacturer
Who do you trust to provide honest feedback on product information and product reviews?
Source: Institute for Business Value Retail 2011 Chile = 2200
Trust Ranking
Family/Friends
33%
23%Customer Reviews
Product experts
23%Retail/Manufacturer
21%
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From awareness to research, consumers are influenced by numerous consumer media that they control
Retailer-Controlled
Consumer-Controlled
Product Awareness Product Research
Greatest Influences During Product Awareness and Research
To
p 5
Infl
uen
ces
Friends / Family
Search Engine
TV/Radio/Billboard
Retailer Store
Mobile Apps
Emails
Online Streaming
Magazines
Social Media
Shopping Portal
Retailer Website
Emails
Shopping Portal
Online Streaming
Magazines
Retailer Website
Social Media
Mobile Apps
Search Engine
Friends / Family
Retailer Store
TV/Radio/Billboard
Source: Institute for Business Value Retail 2011 Global = 30624
Consumers Moment
Social Media
Compared to the global average, Chilean consumers are using search engines and online streaming to find new products and do research
Retailer-Controlled
Consumer-Controlled
Product Awareness Product Research
Greatest Influences During Product Awareness and Research
To
p 5
Infl
uen
ces
Friends / Family
Search Engine
TV/Radio/Billboard
Retailer Store
Mobile Apps
Emails
Online Streaming
Magazines
Social Media
Shopping Portal
Retailer Website
Emails
Shopping Portal
Online Streaming
Magazines
Retailer Website
Mobile Apps
Search Engine
Friends / Family
Retailer Store
TV/Radio/Billboard
Source: Institute for Business Value Retail 2011 Chile = 2200
Consumers Moment
ExpectationsExpectations
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The Future is about ME
Listen to meKnow me
Empower meServe me
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A personalized interaction remains the top demand
Serve me Convenience: Top area for retailer innovation• Provide the right products and appropriate variety of
brands• Allow customers to see inventory availability before
going to store• Loyalty programs that can be used at other retailers
Service: Most important loyalty drivers• Make it feel like a pleasure to help me• Have employees that are knowledgeable about
products/services• Allow me to return products without hassle or
questions asked• Easy way to order items not in stock
Convenience: Top area for retailer innovation• Provide the right products and appropriate variety of
brands• Allow customers to see inventory availability before
going to store• Loyalty programs that can be used at other retailers
Service: Most important loyalty drivers• Make it feel like a pleasure to help me• Have employees that are knowledgeable about
products/services• Allow me to return products without hassle or
questions asked• Easy way to order items not in stock
“Serve me”
Source: Institute for Business Value Retail 2011 Global = 30624
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With which social networks do you have an account? (select all that apply)
• 45% of consumers have media sharing sites• 33% of consumers belong to a social network
How often do you visit social media sites?• 5% visit social media daily / weekly to post comments • 75% casually participate monthly by responding to
posts or writing reviews• 37% are influenced by external reviews
More than half of “connected” consumers state social media interactions influence their spend
Consumers are actively engaging with social media and are expecting their voices to be heard
Source: Institute for Business Value CRM Global n =1056
Listen to me
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A personalized interaction remains the top demand
Personalize Promotions (#1 purchase influencer)• Most likely to increase spend• Top consideration when determining where to shop• The area retailers need to improve most
Personalize Shopping (Most important factors)• Provide preferred receipt type• Recognize me in the store or online• Remember preferred payment method
Personalize Assortments (Most important loyalty drivers)
• High quality/low price private label products• New and unique products• Manufactured or grown in my country (tied)• Environmental friendly/sustainable products (tied)
Know me
Source: Institute for Business Value Retail 2011 Global = 30624
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It’s hard to get to know consumers, when 59% of consumers do not provide the retailer their primary email
1. Apply discounts/coupons to loyalty program
2. Notice of upcoming sale or promotion
3. Receive relevant email from a retailer they trust who has products they love
1. Apply discounts/coupons to loyalty program
2. Notice of upcoming sale or promotion
3. Receive relevant email from a retailer they trust who has products they love
Top 3 Reasons Consumers Open and Read Emails
Check out
Shopping Online
Loyalty Program
64%
56%
76%
Consumer Interaction % that provide secondary emails or decline to provide
Source: Institute for Business Value Retail 2011 Global (US, UK, Australia, China, Mexico, Germany only) = Cater Buying = 8680, Household Changes = 2328, Services = 949
Retailers have a vested interested in enabling m-commerce
“Empower me”
I want to opt in!I don’t care
Emerging MarketMature Market
Promotions in the Store
63% Proactively communicate promotions to me based on what scan
61% Allow me to check prices from other physical and virtual locations
Service In The Store
50% Help me find the customer service desk or associate
48% identify myself in store or mobile for help
44% Allow me to order out-of-stock items
43% Provide the most efficient route through store
41% Allow me to take a picture/text to get product information
Source: Institute for Business Value Retail 2011 Chile = 2200
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Responding as a smarter retailer involves listening to the customer, making changes to the organization and improving the shopping experience
1Listening and Learning
Analytics to listen to consumers
Learn from consumer controlled content
Key factors of influence and motivation
1Enabling and Executing
Single View of Consumer across channels
Actionable analytics around merchandising and marketing
Make the interaction personalized across channels
Change sales to service associates
1 Empowering the Consumer
Consumer self select interaction
Consumers choice of the interaction channel
Consumers providing suggestions
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Jill PuleriVice President, Global Industry Leader
Gracias
www.ibm.com/iibv
Si desea conocer más sobre las soluciones de negocio de IBM, visítenos en:www.ibm.com/ar/services
O escribanos a [email protected]
Si desea conocer más sobre las soluciones de negocio de IBM, visítenos en:www.ibm.com/ar/services
O escribanos a [email protected]