digital age & its effects on the marketing model, consumer decision journey and customer...
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Digital Age & Its Effects On The Marketing model, Consumer Decision Journey and Customer Experience
Apoorv Pandey
Apoorv Pandey
MARKETING MODEL
How digital age has changed the marketing model. The introduction
of ZMOT
Apoorv Pandey
Procter & Gamble’s 3-Step Marketing Model In 2005.(old)
Stimulus
1st moment of truth
2nd moment of truthAt shelf – In a
storeExperience
Need for a product (by seeing an ad etc.)
Consumer is at the shelf, in a store with a wide number of
options to choose from.
After purchasing the product, does the product live upto expectation. What is the experience with that
product
Source : Procter and gamble 2005
Apoorv Pandey
Revised 3-Step Marketing Model In 2011 By Google/Shopper Sciences. (new)
Stimulus 1st moment of truth2nd moment of truthAt shelf – In a store Experience
Zero moment of truthPre-shopping | i-store | In-Home
https://www.thinkwithgoogle.com/collections/zero-moment-truth.html
Whether we're shopping for corn flakes, concert tickets or a honeymoon in Paris, the Internet has changed how we decide what to buy. This online decision-making moment is called the Zero Moment of Truth — or simply ZMOT.
Apoorv Pandey
CONSUMER DECISION JOURNEY
How digital age has changed the decision journey of a consumer
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The Funnel Metaphor (old)
For years, marketers assumed thatconsumers started with a large number ofpotential brands in mind and methodically winnowed their choices until they’d decided which one to buy. After purchase, their relationship with the brand typically focused on the use of the product or service itself.
BUY
Final Choice
Fewer Brands
Many Brands
https://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-all-the-wrong-places
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McKinsey & Company Consumer Decision Journey (new)
The Customer considers and initial set of brands, based on brand perceptions and exposure to recent touch points.
Consumers add or subtract brands they evaluate what they want
Ultimately the consumer selects a brand at the moment of purchase
After purchasing a product or a service, the consumers build expectations based on experience to inform the next decision journey
http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
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McKinsey & Company CDJ – Question to Ask Yourself
What creates Consumers needs?
Do consumers recall and recognize my brand?
Do my products satisfyConsumers needs?
Do my sales efforts result in wins for my brands?
Do the experiences I deliver fulfill customer expectations?
Do customersAdvocate for my brand?
As Marketers you need to as yourself the following set of questions at different stages of the Consumer decision journey
Apoorv Pandey
McKinsey & Company CDJ – Types of analysis
ClickstreamAnalysis
CompetitiveIntelligence
Experimentation/ Testing
OutcomesAnalysis
Voice of Customer(Experience Surveys)
Voice of Customer(Brand Advocacy)
Types to analysis required at different stages of Consumer Decision Journey.
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Pyramid model of web data relates value to availability
Hits
Page Views
Visits
Unique Visitors
Uniquely Identified Visitors
Volume of web data
Incr
easin
g valu
e of d
ata
User submitted information and related sources
Usability Studies
Web transactional data
Web server performance data
Web traffic data
Eric Peterson, “Web Analytics Demystified” (2004)
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There is an analytics tool for any need and data situation
Enterprise Packages Point Solutions Analysis Gadgets
High DataDensity
Low Data Density
Based on what amount of data you want and what are you going to use it for, the market breaks into 3 different types of tool :
Apoorv Pandey
Best marketing analytics metrics vary by size ofbusiness
Small Medium Large
Cost per acquisition Bounce rate Macro-Conversion rate
Click-through rate Page Depth Micro-Conversion rate
Percentage new visits Loyalty Per visit goal value
Events per visit Days to conversion
Checkout Abandonment rate
Percent Assisted Conversions
To understand what information and data is useful, you need to step back and see the organizational size (resources, marketing challenges and opportunities). These are almost dictated by the size of the organization. For eg. A smaller organization has one set of challenges and as it moves ahead to become a large size business then the set challenges change as well as the resources
Source: Avinash Kaushik, “Best Web Metrics / KPIs for a Small, Medium or Large Sized Business” (2011)
Apoorv Pandey
Tools can be prioritized by business size
Business Size
Clickstream Analysis
Outcome Analysis
Voice Of Customer
Experimentation/Testing
Competitive Intelligence
Small 1 2 3
Medium 2 1 3 4
Large 3 2 1 4 5
Marketers can also choose the tool based on the size of organization which are prioritized below:
Source: Kaushik, “Best Web Analytic Tools” (2010)
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Tools For Specific PurposeCompetitiveIntelligence
Experimentation /Testing
Outcomes Analysis
Voice of Customer Clickstream Analysis
Misc EmergingAnalytics
Compete Google WebsiteOptimizer
Mongoose Metrics Qualaroo (formerly
KissInsights)
Yahoo! Web Analytics
Klout
AdWords KeywordTool
Optimizely ifbyphone UserTesting.com Google Analytics AnalyzeWords
Alexa AdWords Campaign
Experiments
LivePerson Loop11.com Piwik Topsy
Google Trends Concept Feedback Feedburner TweetBinder
Google Correlate Bounce Google Webmaster
Tools
Think With Google
Google ConsumerSurveys
Bing WebmasterTools
Source: Avinash Kaushik, “Best Web Analytic Tools” (2010)
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The Experience Effect
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The new In-store behavior
38%
52%
7%3%
I know exactly what I want to buy I’ve narrowed it down to 2-3 products and need help making FInal decision I know the need I’m trying to ful ll, but I don’t know what to buy to meet that need I usually don’t know what I’m looking for when I go to the store
In-store behavior has shifted from “discovery” to “final purchase decision.”
• By the time a person walks into a store they are well versed on what they want to buy, they have not made a final decision but they need emotional validation for the purchase.
• This is why they go into the store and seek out experts that can help them. So, this modern store behavior is really about buying much more so than it is about shopping.
• So, the in-store experience is very important because the customer for the most part, know what they want, they just need help with the last steps.
When you browse online before making a purchase, how much do you know about what you want to buy before you go to the store?
The-State-of-Retail-2015_-Consumer-Behavior
Apoorv Pandey
The Experience Effect
If an experience with a product is memorable and a cherished one. If the
Product delivered the required needs to the consumer then the consumer enters a
loyalty loop. So, now whenever there is a need for similar product the consumer will
automatically buy from the same brand and hence become its loyal customer.
Apoorv Pandey
Experience Sustenance – Creating WOW
Time
IntensityEngaging
Exiting
Extending
Entering
Enticing
Creating Customer experience is creating a full length movie.
It is like creating a Drama
Like any other movie there are stages of the experience. Every stage is equally important as it
holds a value to enter the next stage and it depends on companies and their type of
products on what drama they want to build.
Apoorv Pandey
Creating the Perception of Satisfaction
No. of Interactions
CustomerSacrifice
With more number of interactions Good companies reduce the perception Of customer sacrifice.
Customer Sacrifice – The difference between what a customer settles for and what he wants exactly.
Customer Satisfaction – The difference between what a customer expects and what the customer perceives he gets.
Customer Sacrifice is inevitable as fulfilling everyone's expectations is impossible. With more number of interactions, companies can reduce the perception of Customer Sacrifice.
Apoorv Pandey
Glossary
• Macro Conversion Rate: Simply number of sales divided by the number of visitor sessions
• Micro Conversion Rate: Number of predefined goals achieved divided by the number of visitor sessions
• Per Visit Goal Value: Cumulative predefined value of goals achieved divided by the number of visitor sessions
• Days to Conversion: Average time between purchases made by a consumer
• Percent Assisted Conversions: Conversions with more than one ad / media / marketing touch prior to converting
Apoorv Pandey
Glossary
• Audience Growth: Increase in the number of people following or liking digital content over time
• Amplification Rate: Rate at which your followers take your content and share it through their network
• Applause Rate: Rate at which your followers attach special recognition to your post (e.g., Likes, +1’s, Favorites, etc.)
• Micro Conversion Rate: Number of predefined goals achieved divided by the number of visitor sessions
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Glossary
ROI on Experience
Measuring Return on Advertising Investment
Measuring Return on EXPERIENCING Investment
Incremental revenueCost
Admission Fees
Incremental revenue
Cost -
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Apoorv Pandey
Thank You