2. What we’ll cover…
Start with technology, and end with people!
What Google has uncovered about ZMOT
Compare Google’s findings about ZMOT in US to ours in China
Why FMOT remains critical
An end!
2
4. It’s never been easy to understand media
consumption, let alone manage its placement, in
China
Source: Synovate Media Atlas China Dec 2009-Feb 2010
4
Yesterday: TV, newspaper, internet and radio
5. Considerable effort, expense and delays to get
timely measures of things important for decisionmaking
5 Source: China Mosaic, Synovate, 2006
6. China has been in a perpetual state of change for
years…ZMOT could actually make things easier
Past 3 month purchasers of respective model
20%
40%
60%
6 Source: China Mosaic, Synovate, 2006
9. And what is the Zero Moment of Truth?
“That instant when they open their laptop, pick up their
smart phones, or grab their tablets, and search to see if you
meet their needs.
They may read a review, look for a coupon, watch a
video, or read a blog or social network discussion of your brand [on-line].
We are officially living in a post-Akerlof* world – any trace of
information assymetry tipping the balance in favour of the
seller is officially gone”
Jim Lecinski, MD Sales Google.
* Ackerlof’s principle: adverse selection ….where the seller has more
information than the buyer.
9
10. Source: ZMOT Macro Study, Google/Shopper Sciences, 2011
Researching ZMOT
In the US….
Google &
Shopper Science
In China….
WIMI &
Viewstap
10
Online shopper survey
Past 6 mth buyers sports
shoes, past 12 month buyers
auto, luxury brands
Fielded Aug 2013
11. Source: ZMOT Macro Study, Google/Shopper Sciences, 2011
Researching ZMOT
In the US….
Google &
Shopper Science
In China….
WIMI &
Viewstap
11
Online shopper survey
Past 6 mth buyers, sports
shoes, past 12 month buyers
auto, luxury brands
Fielded Aug 2013
12. The top ten – the most commonly used information
sources when making a purchase decision…which is
China, which is the US?
Searched online with a search engine
1
Read product reviews online
Traditional WOM
2
Comparison shopped products online
Looked at product in-store
3
Searched online with a search engine
Comparison shopped products online
4
Traditional WOM
Saw ads on TV
5
Talked with a salesperson at channel
Read brochures
6
Looked at product in-store
Sought information from a brand website
7
Sought information from a brand website
Talked with a salesperson at channel
8
Noticed ads online
Received DM/mail shot
9
Sought information from a retailer website
Read product reviews online
10
Saw ads on TV
Source: ZMOT Macro Study, Google/Shopper Sciences, 2011
China ZMOT Study, WIMI/Viewstap, Aug 2013
12
13. Some similarities wrt purchase journey …
interestingly, commonalities with the borderless
internet
60
50
40
30
20
10
0
Source:
ZMOT Macro Study, Google/Shopper Sciences, 2011
13 China ZMOT Study, WIMI/Viewstap, Aug 2013
14. But significant differences elsewhere, especially
importance of traditional media…old world still
likes old media. Suggest China will blaze forward
60
50
40
30
20
10
0
Source:
ZMOT Macro Study, Google/Shopper Sciences, 2011
14 China ZMOT Study, WIMI/Viewstap, Aug 2013
15. How many brands have their adspend allocations
reflecting this dominance of on-line? Still not too
late to buy shares in Tencent!
60
50
40
30
20
10
0
Source:
ZMOT Macro Study, Google/Shopper Sciences, 2011
15 China ZMOT Study, WIMI/Viewstap, Aug 2013
17. The ZMOT bible talks about individual
journeys….so of course categories are different
Percent who strongly agreed to statement
If a brand on-line has good support, I find
out more about it in the store
I ignore other brands, go to the brand
that was well-represented on-line
I trust what I read from general
consumers on-line
I trust what I read from KOL's on-line
It is important to consider a wide range
of options before narrowing down
Price promotions have a significant
influence on my end buying decision
I trust what the sales assistant says if it
supports the messages on-line
I am persuaded by instore POSM if the
brand has good on-line elements
It is important that the messages, images
in store matches on-line
0
5
10
Sports shoes
15
20
25
Luxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
17
30
Auto
35
40
45
18. Clicks are as important as pricing to your business
strategy
Percent who strongly agreed to statement
If a brand on-line has good support, I find
out more about it in the store
I ignore other brands, go to the brand
that was well-represented on-line
I trust what I read from general
consumers on-line
I trust what I read from KOL's on-line
It is important to consider a wide range
of options before narrowing down
Price promotions have a significant
influence on my end buying decision
I trust what the sales assistant says if it
supports the messages on-line
I am persuaded by instore POSM if the
brand has good on-line elements
It is important that the messages, images
in store matches on-line
0
5
10
Sports shoes
15
20
25
Luxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
18
30
Auto
35
40
45
19. A pertinent on-line strategy will help the brand
instore…if they work in harmony
If a brand on-line has good support, I
find out more about it in the store
I ignore other brands, go to the brand
that was well-represented on-line
I trust what I read from general
consumers on-line
I trust what I read from KOL's on-line
It is important to consider a wide range
of options before narrowing down
Price promotions have a significant
influence on my end buying decision
I trust what the sales assistant says if it
supports the messages on-line
I am persuaded by instore POSM if the
brand has good on-line elements
It is important that the messages, images
in store matches on-line
0
5
10
Sports shoes
15
20
25
Luxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
19
30
Auto
35
40
45
20. A pertinent on-line strategy will also reduce
competitive pressures, and focus the shopper
If a brand on-line has good support, I
find out more about it in the store
I ignore other brands, go to the brand
that was well-represented on-line
I trust what I read from general
consumers on-line
I trust what I read from KOL's on-line
It is important to consider a wide range
of options before narrowing down
Price promotions have a significant
influence on my end buying decision
I trust what the sales assistant says if it
supports the messages on-line
I am persuaded by instore POSM if the
brand has good on-line elements
It is important that the messages, images
in store matches on-line
0
5
10
Sports shoes
15
20
25
Luxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
20
30
Auto
35
40
45
21. Poor sports shoes…mid term Olympic blues
perhaps. But also…a potential warning sign KOL’s
might be getting close to their “sell-by-date”!
If a brand on-line has good support, I
find out more about it in the store
I ignore other brands, go to the brand
that was well-represented on-line
I trust what I read from general
consumers on-line
I trust what I read from KOL's on-line
It is important to consider a wide range
of options before narrowing down
Price promotions have a significant
influence on my end buying decision
I trust what the sales assistant says if it
supports the messages on-line
I am persuaded by instore POSM if the
brand has good on-line elements
It is important that the messages, images
in store matches on-line
0
5
10
Sports shoes
15
20
25
Luxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
21
30
Auto
35
40
45
22. Good on-line a good life-line
Index to category average
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1
Auto
2
Luxury
3
Sports Shoe
If your customers liked your on-line messaging a lot
they are far more likely to be brand ambassadors on-line
after purchase.
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
22
23. And who are the “stronger” brands on-line…we can
learn from them
Auto
Luxury
Sports shoes
23
25. In the past 6 – 9 mths….
Category
Evaluation of product
and concept
Grades for the MOT’s
Soup
Amazing product,
great concept.
FMOT – D
ZMOT – C minus, although it
prompted very good WOM, no one
knew where to find it in the store
Toothpaste
Great concept, very good
product
ZMOT – C minus, failed to link
mother brand to product line, or
provide visual cues for intuitive
shopping
FMOT – E, wonderfully creative, but
by-passed instore
Luxury brand
Of course, perfect product
and concept
ZMOT – A
FMOT – C. Remember who you are
selling to.
25
25
26. In the past 6 – 9 mths….
Category
Evaluation of product
and concept
Grades for the MOT’s
Soup
Amazing product,
great concept.
FMOT – D
ZMOT – C minus, although it
prompted very good WOM, no one
knew where to find it in the store
Toothpaste
Great concept, very good
product
ZMOT – C minus, failed to link
mother brand to product line, or
provide visual cues for intuitive
shopping
FMOT – E, wonderfully creative, but
by-passed instore
Luxury brand
Of course, perfect product
and concept
ZMOT – A
FMOT – C. Remember who you are
selling to.
26
26
27. In the past 6 – 9 mths….
Category
Evaluation of product
and concept
Grades for the MOT’s
Soup
Amazing product,
great concept.
FMOT – D
ZMOT – C minus, although it
prompted very good WOM, no one
knew where to find it in the store
Toothpaste
Great concept, very good
product
ZMOT – C minus, failed to link
mother brand to product line, or
provide visual cues for intuitive
shopping
FMOT – E, wonderfully creative, but
by-passed instore
Luxury brand
Of course, perfect product
and concept
ZMOT – A
FMOT – C. Remember who you are
selling to.
27
27
28. Shoppers are spending more time making decisions in-store
than previously expected
• Grocery shopping isn’t always a time pressured activity.
• Shoppers can spend more time studying POSM and reading
pack information than they do watching a TVC.
• Potentially, marketers can use this time devotion to
communicate more information about the product.
• Remember, in China, studying pack is #6 in terms of
importance.
17 minutes
Time spent at ONE luxury skin
care brand’s counter in BJ
4 minutes 50 seconds
Average time spent in
toothpaste aisle in Hangzhou
superstores
1 min 52 seconds
Average time spent in crisps
aisle in HK
28
28
29. UNDERSTAND INTUITIVE SHOPPING….eg Shoppers’ line-of-sight is
above shoulder height when navigating around supermarket aisles
•
•
•
Supermarket shoppers have been trained by hypermarket retailers to look up, to spot the
big red/yellow posters that symbolize the bargain that the shoppers are seeking.
Therefore, design elements or messaging on major POSM should not be lower than waist
height (shoulder height is even better) to capture attention in main aisles. Creative
design effects or messaging below the waist is more-or-less wasted…as it will not be
noticed.
But at the actual shelf, lower levels are not losing positions, because the bargainseeking shopper also gives close scrutiny here to ensure the best value is not missed.
29
29
30. POSM that clusters all the brands’ products is an important way to
draw shoppers’ attention
• To display all the products under the
master brand together within a ‘special
shelf’ captures interest.
• The variety of the product reinforces
the brand’s credibility.
30
31. Careful consideration of the purpose of promotions/premiums
• First time trialists seek reassurance of product
efficacy; especially for skin care products,
promotions may not always work.
• Promotions/gifts are likely to be appreciated
by repeat purchasers.
– At best, make them select our product from a shortlist.
– Perhaps not needed in our own stores, but in
competitive environments.
Role of promotions
Post shopping interview:
Mod: “ Why are you not
interested in the gift
items”?
Shopper: “ I only care for
the product quality
31
32. It is important to get the right balance for product displays
to avoid physical barriers being created for the shopper
•
A common retail design feature
used in premium skin care brands
has counters surrounding a central
column. This is like building mini
castles.
•
These display counters work like an
“unconscious” wall, or
barrier, between the assistants and
the shoppers that they have to
engage with.
•
Engagement is more difficult to
achieve when there is a fence that
divides you.
CASTLE Style
Hiding behind the counter
32
32
33. Promoters can be very effective, but performance can be very
mixed
•
Promoters can be very helpful to the
shopper, especially when there is
uncertainty in their mind. But there is
quite a lot of cynicism towards
promoters, because of poor experiences.
•
Promoters should be constantly diligent to
assist and support the shopper who needs
it.
•
Shoppers want them for facts – to fill
information gaps.
•
Given their importance, auditing is
recommended.
34
34. Sales assistants, and promoters, in general….are we training them
the way we should be?
• The BA is commended for her attitude, but the
experienced skin care shopper needs reassurance about
why she should switch to “XXX”.
– Nor are her explanations very compelling – few end benefits
explained when introducing 3 different lines.
• We had a mystery shopper compelled to buy a product because the BA
told a story – linked benefits to her own personal experiences.
– The BA’s complexion is criticized. It is not a positive endorsement
of the products she is selling.
Insufficient explanation
35
35. Pride is fine – arrogance is not
• Having pride in your brand is important, as it will mean our pitch to shoppers
will be made with genuine earnestness.
• But don’t take it too far, as some luxury BA’s have done. This results in
aloofness: you don’t have to even say anything…your body will do your talking.
36
36. Either I’m really ugly, or, he is very inexperienced, or, he’s well
short of his sales target!
• What message are we sending shoppers when we bring out a lot of products to
try?
• It simply is not credible.
• Immediately, the shopper goes on the defensive to prepare for a hard sell.
37
37. Golden rules of shopper engagement etiquette broken
• Whilst the BA was struggling, the interruption
from the experienced staff was not
appreciated.
• Although the senior BA did compliment the
shopper, and offer advice, the experience was
far from a positive one. It was construed as
hard sell:
–
–
–
–
–
No introduction
Interrupted
Did not prove herself as a skin care expert
Did not listen to the shoppers needs
Recommended products that the shopper did not
want
38
Ambush
39. THE PURCHASE PARADOX
Counter tension creates a purchase paradox
Will the sales assistant
think I am a genuine
buyer; will they respect
me?
Will the product be
worth what it’s
costing me?
I want the
product, but…
Will the sales assistant
know what I need?
Trust combats the tension
Tension must be overcome before a
purchase is made. Trust is the
antidote, but is more difficult in new
purchase occasions.
40
Am I going to be
pitched products I
don’t need?
I actually know a
reasonable amount
already.
40. •The small golden bottle (Dior product) given by my friend is very good to use. After that, I Ibuy it myself. I Ifeel the effect is excellent even I Ionly use this product. So I Istick to it.
•The small golden bottle (Dior product) given by my friend is very good to use. After that, buy it myself. feel the effect is excellent even only use this product. So stick to it.
Overcoming purchase tension: repurchase occasions
TENSION
“The small golden bottle (Dior product)
given by my friend is very good to use.
After that, I buy it myself. I feel the effect is
excellent even I only use this product. So I
stick to it.”
41
A quality product experience is irrefutable proof of
trust.
Repeat purchase is virtually re-assured if efficacy is
delivered.
Counter experience and public opinion forums
play an important supporting role:
- Counter: brand and luxury experience – a
special treat.
- Public opinion forums: cursory review as a
disaster check.
Product trial and free samples an absolute must
given the key role product experience plays with
purchase decisions.
41. Overcoming purchase tension: new purchase occasions
Reducing tension
Removing tension is much harder without prior product
experience. Surrogates for trust are looked for.
Brand halo
Brand pedigree and reputation in skin
care and advertising
care,
Positive WOM
Is WOM/online forums reporting
positive news about product efficacy
and/or no side effects?
SALES STAFF REASSURANCES
COUNTER DISPLAY
POSITIVE WOM
REPUTABLE BRAND
Counter display
Is the counter environment
aesthetically pleasing, tidy and inviting?
Sales staff: pleasant & professional
Is the salesperson someone the
customer wants to deal with?
42
TENSION
42. Overcoming purchase tension: new purchase occasions
Removing tension is much harder without prior product
experience. Surrogates for trust are looked for.
Brand halo
Brand pedigree and reputation in skin
care and advertising
care,
Positive WOM
Is WOM/online forums reporting
positive news about product efficacy
and/or no side effects?
ZMOT
Counter display
Is the counter environment
aesthetically pleasing, tidy and inviting?
Sales staff: pleasant & professional
Is the salesperson someone the
customer wants to deal with?
43
TENSION
