Download - 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
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RENT VS. BUY: I USE, NOT OWN… AND I SHARE AND EXPERIENCE
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.”
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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.”
• How does the sharing economy impact your organization and its brands?
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THE NEW NORMAL… THE BLURRING OF GENDER ROLES
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
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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 • 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
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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.”
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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?
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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.”
• .”
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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.
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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.
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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?
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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.”
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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?
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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.”
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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?
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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.”
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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?
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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
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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?
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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.”
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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
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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.”
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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
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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.”
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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?
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