consumer trends... as we head into 2015

CONSUMER TRENDS: 2014

PREPARED BY: PROFESSOR JENNY DARROCH THE PETER F. DRUCKER AND MASATOSHI ITO GRADUATE SCHOOL OF MANAGEMENT WWW.JENNYDARROCH.COM

E: [email protected]

© Jenny Darroch 2014 1

© Jenny Darroch 2014

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RENT VS. BUY: I USE, NOT OWN… AND I SHARE AND EXPERIENCE


•  “I don’t need to own a car, or even books or music.”

•  “I have more than I need, and so I will share with others.”

•  “I enjoy the experience of sharing.”



•  “I don’t need to own a car, or even books or music.”

•  “I have more than I need, and so I will share with others.”

•  “I enjoy the experience of sharing.”

•  How does the sharing economy impact your organization and its brands?



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THE NEW NORMAL… THE BLURRING OF GENDER ROLES


•  Women out-learn men •  Women are beginning to out-earn men •  Men are spending more time with their

children •  More women head households •  Work life balance affects men and women •  Women account for 85% of all household

purchase decisions



•  Women out-learn men •  Women are beginning to out-earn men •  Men are spending more time with their children •  More women head households •  Work life balance affects men and women •  Women account for 85% of all household

purchase decisions •  Take care not to stereotype based on

gender. •  Does your organization understand the

role of women as influencers, buyers and users of your products or services?



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THE NEW NORMAL –TRADITIONAL LIFE STAGES NO LONGER APPLY TO “SWIRLERS”

THE NEW NORMAL – SWIRLERS

•  Traditional life stages do not apply. Examples: •  “I incurred a lot of college debt and can’t afford to buy a

home or have children.” •  “I can’t afford to buy a home and so I will move back in

with my parents.” •  “I will delay marrying and having children. •  “I get married… and then remarried”. I might have more

children later in life. •  “I am over 65 but I don’t want to retire. I am active and

healthy and enjoy work.” •  “I am over 65 but I can’t afford to retire because I’m still

paying off a mortgage” © Jenny Darroch 2014 9

THE NEW NORMAL – SWIRLERS

•  Traditional life stages do not apply.

•  Take care not to stereotype based on life stage because life stage does not necessarily determine consumption patterns.

•  Does your organization truly understand the demographics of your customer base? Do you stereotype based on demographics?



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ON-LINE INTERACTION: “SOCIAL” MEDIA CAN ISOLATE AND DEPRESS – ARE YOU MY FRIEND? IS YOUR LIFE BETTER THAN MINE?

ON-LINE INTERACTION: “SOCIAL” MEDIA CAN ISOLATE AND DEPRESS

•  “I have a lot of “friends” on Facebook and Facebook has allowed me to revive dormant friendships. Are they true friends?”

•  “My use of social media is keeping me away from traditional settings such as voluntary groups and public spaces.”

•  “Facebook depresses me because it makes me think other people have better lives than me.”


ON-LINE INTERACTION: “SOCIAL” MEDIA CAN ISOLATE AND DEPRESS

•  Consumers are starting to put value on their core groups of friends again. Who’s in my phone book vs. who’s in my Rolodex.

•  Does your organization’s use of social media enhance or diminish consumers’ happiness and sense of self worth?



WHO AM I? YOU SHOULD KNOW ME BY NOW.. SO TREAT ME WELL WHEN WE DO BUSINESS TOGETHER

WHO AM I? YOU SHOULD KNOW ME BY NOW

•  “I have given up some of my privacy concerns: I use Cloud computing; when there are data breaches, I expect you to fix them [or better still make sure you’ve got security in place so it doesn’t happen] and I know you capture data on me all the time”.

•  “When we do business together, I expect you to know me.”

•  .”


WHO AM I? YOU SHOULD KNOW ME BY NOW

•  “I have given up some of my privacy concerns: I use Cloud computing; when there are data breaches, I expect you to fix them [or better still make sure you’ve got security in place so it doesn’t happen] and I know you capture data on me all the time”.

•  “When we do business together, I expect you to know me.”

•  Brands need to know their customers and acknowledge customer loyalty.



WHAT WAS THAT ALL ABOUT? ? - RIGHT EDUCATION, GOOD EXPERIENCE, YET I STILL CAN’T FIND A SUITABLE JOB

WHAT WAS THAT ALL ABOUT?

•  “I did all the “right” things [right school, right degree, internships, work experience] and yet I can’t find a job or a job that matches my abilities.”

•  Consumers will look for other experiences from which to create meaning and provide validation. School and job become less relevant.


WHAT WAS THAT ALL ABOUT?

•  “I did all the “right” things [right school, right degree, internships, work experience] and yet I can’t find a job or a job that matches my abilities.”

•  Consumers will look for other experiences from which to create meaning and provide validation. School and job become less relevant.

•  What does your brand do to help consumers find meaning and validation?



THE JEKYLL AND HYDE PHENOMENON: I CAN TAKE ON DIFFERENT PERSONALITIES WHEN I POST ONLINE... BEWARE BIG DATA.

THE JEKYLL AND HYDE PHENOMENON: I CAN TAKE ON DIFFERENT PERSONALITIES •  “When I post comments online, I could be

anyone – a man, women, young, old, white, black, wealthy, poor. My alter ego can say mean things to others even though I’m usually nice.”


THE JEKYLL AND HYDE PHENOMENON: I CAN TAKE ON DIFFERENT PERSONALITIES

•  “When I post comments online, I could be anyone – a man, women, young, old, white, black, wealthy, poor. My alter ego can say mean things to others even though I’m usually nice.”

•  Do you have access to big data? What decisions do you make with it? How accurate does big data need to be?



TAKE A LOOK AT THIS: I SHARE A LOT ABOUT MYSELF… AND I SHARE IMAGES NOW NOT WORDS

TAKE A LOOK AT THIS: I SHARE A LOT ABOUT MYSELF

•  “I used to share words but now I share images.”


TAKE A LOOK AT THIS: I SHARE A LOT ABOUT MYSELF

•  “I used to share words but now I share images.”

•  Do you give your customers stories to share, … and stories that contain photos and videos?



THE HUMAN POLYGRAPH: I’M GOOD AT DETECTING LIES AND SIFTING THROUGH INFORMATION ONLINE

THE HUMAN POLYGRAPH: I’M GOOD AT DETECTING LIES AND SIFTING THROUGH INFORMATION •  “I do most of my research online and I’m

getting used to filtering information I find. I know not to trust all data sources.”


THE HUMAN POLYGRAPH: I’M GOOD AT DETECTING LIES AND SIFTING THROUGH INFORMATION •  “I do most of my research online and I’m

getting used to filtering information I find. I know not to trust all data sources.”

•  When you provide information [online, in print] do you tell readers where the information is coming from – your organization vs. an outside source and if an outside source, which source?



CONNECTIVITY: I’M MOBILE AND CONNECTED… ANYWHERE, ANYTIME

CONNECTIVITY: I’M MOBILE AND CONNECTED… ANYWHERE, ANYTIME •  90% of adults have a cell phone; 5% have

a smartphone; 42% own a tablet computer •  67% of cell owners check their phone for

messages, alerts, or calls — even if not phone ringing or vibrating.

•  44% of cell owners sleep with their phone next to their bed because they want to make sure they don’t miss out


CONNECTIVITY: I’M MOBILE AND CONNECTED… ANYWHERE, ANYTIME •  “I will use mobile technology when I’m out

shopping.” •  “I expect to be able to communicate with

you and for you to respond straight away

•  How responsive are you to customer feedback?

•  Do you have a mobile strategy?



THE SUSPICIOUS SKEPTIC: I DON’T TRUST OR RESPECT YOUR BRANDS OR YOUR ORGANIZATION ANYMORE

THE SUSPICIOUS SKEPTIC: I DON’T TRUST OR RESPECT YOU…

•  “I once saw a boundary between me and your organization.”

•  “I would buy what you told me I needed” •  “The recession taught me not to respect

large organizations” •  “You care more about profits than my

welfare.”


THE SUSPICIOUS SKEPTIC: I DON’T TRUST OR RESPECT YOU… •  “I once saw a boundary between me and your

organization.” •  “I would buy what you told me I needed” •  “The recession taught me not to respect large

organizations” •  “You care more about profits than my welfare.”

•  Do your customers trust your brand? Are you open with them? Do you take care of problems they have with your organization? Do they trust you



THE UNEVEN PARTNERSHIP: CO-CREATING VALUE WITH YOUR ORGANIZATION

THE UNEVEN PARTNERSHIP: CO-CREATING VALUE •  “You used to do so much more for me.” •  “I prefer to create my own experiences.”


THE UNEVEN PARTNERSHIP: CO-CREATING VALUE •  “You used to do so much more for me.” •  “I prefer to create my own experiences.” •  How can your customers co-create value

with you so that you both benefit? •  What can you do to help customers

personalize their experiences – e.g., Amazon and Netflix personal recommendations



CONSUMER REBELLION: I DON’T MIND STARTING MY OWN BUSINESS AND COMPETING WITH YOU

CONSUMER REBELLION: I DON’T MIND COMPETING WITH YOU •  “I don’t trust or respect you as much, and

you’ve encouraged me to fulfill a lot more of the services you once provided for me. I’m happy to think “outside of the box” for service providers, even if that means I must now compete with you.”


CONSUMER REBELLION: I DON’T MIND COMPETING WITH YOU •  “I don’t trust or respect you as much, and

you’ve encouraged me to fulfill a lot more of the services you once provided for me. I’m happy to think “outside of the box” for service providers, even if that means I must now compete with you.”

•  What could your customers do to compete against you?


consumer trends... as we head into 2015

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