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CX Outsourcers
Windsor – March 2019
Profiling the consumer
of the future
Mark Hillary
@markhillary
Mark Hillary - Introduction
• From the UK, based in Brazil
• Author 17 books on tech, CX, globalisation
• Host, of the ‘CX Files’ podcast
• Journalism and analysis featured in the FT, BBC, Huffington Post, Reuters,
United Nations
• Experienced blogger – UK government, London Olympics, corporate sites
• Ghost to politicians, CEOs, diplomats, and astronauts – anyone who wants
to make sense when talking about tech and consumers
Consumer Futurism
• What can we see in present consumer trends that might change the
customer and customer journey in the near to mid term?
• As a thought experiment try looking back a decade and you were
probably not using a smartphone or social networks – unexpected
change happens really fast… the surveillance economy happened fast
The Challenge – shifting sand
“The pace of change has never been this fast, yet it will
never be this slow again…”
Justin Trudeau, WEF 2018
The Challenge – It’s scary
“You are rightly anxious about how quickly our existing business models
are being disrupted. Still, if you’re anxious, imagine how the folks who
aren’t in this room are feeling.”
Justin Trudeau, WEF 2018
The Challenge – No clues
“If I had asked people what they wanted,
they would have said faster horses…”
Attributed to Henry Ford
A gaze back to 2000
• Only 12% of people used a mobile phone
• 30% of humans lived in extreme poverty
• No smartphones
• No social networks – very basic blogs
• Nascent ecommerce – eBay and Amazon (Kmart sales
were 13x Amazon in 2000)
• Alibaba sales of $1m (On Singles Day
2018 it took 85s to reach $1bn)
Main Factors of Change
• Changing Consumer Behaviour – middle class explosion
• Geopolitics – China GDP could match the USA inside the 2020s
• Personal Consumption Patterns – the sharing economy and buying
access, not owning
• Technology – by 2030 ¾ of people will own a mobile and connected
device
• Structural Industrial Shifts – Activist investors
McKinsey
The Consumer - Macro
• Consumer motivations, connections, expectations, time and
purchasing power
• Landmark events - owning a home, getting married, becoming a parent
– ALL FAR LESS PREDICTABLE
• In only a decade, look at the enormous change in consumer behaviour
related to getting an education, finding a partner, engaging in politics,
and even communication itself
• Cash (only 10% of Swedes used cash in 2018)
• Expectation of personalised service
• Use of AI by individual as a personal representative, not by the
brands only
• Use of tools that combine social, discovery, communication, and
payment – already common in China with WeChat, but
coming soon to WhatsApp (live in India now)
The Consumer - Micro
Consumer: Climate Change
• Change that we thought might take a century may now
be coming inside 20 years
• Reusable economy
• Circular economy
• Greater focus on resource use
• How do new weather patterns affect your consumers?
Consumer: Life As A Service
• Renting everything – it started with Airbnb and Uber, but now we are
renting scooters, cycles, power tools, clothes
• Greater focus on using cash to buy experiences rather than objects
• How do you sell to people who don’t buy anything?
Consumer: Emotions
• Forging long-term connections and genuine customer relationships
• Heritage brands already doing this include Apple, Nike, Harley
Davidson – compare them to a hotel or airline today – people LOVE
these brands and tattoo their logo
• Moving away from managing 2-min call to a continuous 50-year
relationship
Consumer: Transparency
• Connected to climate change, but also linked to the consumer trend of
caring more about what they buy
• Before purchase supply chain – was this shirt made in sweatshop
by children?
• Post use supply chain – when I discard this, where will it go? Will it
damage rivers? What kind of heavy metals are inside this phone?
Consumer: Logistics
• Rappi in Brazil or Go-Jek in Indonesia
• Networks supplying everything
• Often started with ride-sharing services, but expanded to include
medicine, food, shopping collection, massage, bill payment, cleaning,
personal styling, auto repair, courier, and PAYMENT
• Speed and convenience
Consumers: Privacy
• Consumers WILL realise the value of their data – what may happen?
• problems with increased personalisation
• more ephemeral sharing online – nothing staying online for years
• live streaming more common as a way to share MY LIFE RIGHT
NOW – not a photo album
Consumers: Wellness
• Greater ability to monitor health metrics leading to integration with food
and health product suppliers
• Ability to subscribe to products based on real-time health data
• Employers monitoring employees forcing consumer change
Consumers: Purpose
• Failing democracy – impossible to buy homes, work more precarious,
nothing is certain any longer
• People looking for a greater purpose in life and expecting brands
to help
Consumers: Channel Shift
• Brand interaction on new channels
• Voice controlled systems – Alexa, Home
• Devices such as Nest interacting with brands on your behalf
• Google Glass making a comeback
• AI agents representing customers in all aspects
of life – shopping to politics
Summary of Trends
SHOPPING: AI bots doing the buying
LIFESTYLE: own less rent more
HEALTH: metrics and monitoring
FOOD: where is it from?
BIONIC: transhuman reality
AR/VR: gamification of consumer experience
JOBS: platform based, gig economy
What Questions To Ask?
• What makes us distinctive?
• How to we engage and build relationships with customers that last
for decades?
• Are we agile enough to react to new competitors that don’t even exist
today?
• Who can we partner with to build resilient networks
of expertise?
• How does technology help us to differentiate
and not just enable?
Recommend Reading
• Future Politics, Jamie Susskind, OUP 2018
• The People Vs Tech, Jamie Bartlett, Ebury 2018
• The End of Politicians, Brett Hennig, Unbound 2017
• The Age of Surveillance Capitalism, Shosana Zuboff, Profile 2019
• The Uninhabitable Earth, David Wallace-Wells, Allen Lane 2019
• 21 Lessons for the 21st Century, Yuval Noah Harari, Vintage 2018
Mark Hillary
@markhillary
www.carnabysp.com
mail@markhillary.com

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Profiling The Consumer Of The Future

  • 1. CX Outsourcers Windsor – March 2019 Profiling the consumer of the future Mark Hillary @markhillary
  • 2. Mark Hillary - Introduction • From the UK, based in Brazil • Author 17 books on tech, CX, globalisation • Host, of the ‘CX Files’ podcast • Journalism and analysis featured in the FT, BBC, Huffington Post, Reuters, United Nations • Experienced blogger – UK government, London Olympics, corporate sites • Ghost to politicians, CEOs, diplomats, and astronauts – anyone who wants to make sense when talking about tech and consumers
  • 3. Consumer Futurism • What can we see in present consumer trends that might change the customer and customer journey in the near to mid term? • As a thought experiment try looking back a decade and you were probably not using a smartphone or social networks – unexpected change happens really fast… the surveillance economy happened fast
  • 4. The Challenge – shifting sand “The pace of change has never been this fast, yet it will never be this slow again…” Justin Trudeau, WEF 2018
  • 5. The Challenge – It’s scary “You are rightly anxious about how quickly our existing business models are being disrupted. Still, if you’re anxious, imagine how the folks who aren’t in this room are feeling.” Justin Trudeau, WEF 2018
  • 6. The Challenge – No clues “If I had asked people what they wanted, they would have said faster horses…” Attributed to Henry Ford
  • 7. A gaze back to 2000 • Only 12% of people used a mobile phone • 30% of humans lived in extreme poverty • No smartphones • No social networks – very basic blogs • Nascent ecommerce – eBay and Amazon (Kmart sales were 13x Amazon in 2000) • Alibaba sales of $1m (On Singles Day 2018 it took 85s to reach $1bn)
  • 8. Main Factors of Change • Changing Consumer Behaviour – middle class explosion • Geopolitics – China GDP could match the USA inside the 2020s • Personal Consumption Patterns – the sharing economy and buying access, not owning • Technology – by 2030 ¾ of people will own a mobile and connected device • Structural Industrial Shifts – Activist investors McKinsey
  • 9. The Consumer - Macro • Consumer motivations, connections, expectations, time and purchasing power • Landmark events - owning a home, getting married, becoming a parent – ALL FAR LESS PREDICTABLE • In only a decade, look at the enormous change in consumer behaviour related to getting an education, finding a partner, engaging in politics, and even communication itself
  • 10. • Cash (only 10% of Swedes used cash in 2018) • Expectation of personalised service • Use of AI by individual as a personal representative, not by the brands only • Use of tools that combine social, discovery, communication, and payment – already common in China with WeChat, but coming soon to WhatsApp (live in India now) The Consumer - Micro
  • 11. Consumer: Climate Change • Change that we thought might take a century may now be coming inside 20 years • Reusable economy • Circular economy • Greater focus on resource use • How do new weather patterns affect your consumers?
  • 12. Consumer: Life As A Service • Renting everything – it started with Airbnb and Uber, but now we are renting scooters, cycles, power tools, clothes • Greater focus on using cash to buy experiences rather than objects • How do you sell to people who don’t buy anything?
  • 13. Consumer: Emotions • Forging long-term connections and genuine customer relationships • Heritage brands already doing this include Apple, Nike, Harley Davidson – compare them to a hotel or airline today – people LOVE these brands and tattoo their logo • Moving away from managing 2-min call to a continuous 50-year relationship
  • 14. Consumer: Transparency • Connected to climate change, but also linked to the consumer trend of caring more about what they buy • Before purchase supply chain – was this shirt made in sweatshop by children? • Post use supply chain – when I discard this, where will it go? Will it damage rivers? What kind of heavy metals are inside this phone?
  • 15. Consumer: Logistics • Rappi in Brazil or Go-Jek in Indonesia • Networks supplying everything • Often started with ride-sharing services, but expanded to include medicine, food, shopping collection, massage, bill payment, cleaning, personal styling, auto repair, courier, and PAYMENT • Speed and convenience
  • 16. Consumers: Privacy • Consumers WILL realise the value of their data – what may happen? • problems with increased personalisation • more ephemeral sharing online – nothing staying online for years • live streaming more common as a way to share MY LIFE RIGHT NOW – not a photo album
  • 17. Consumers: Wellness • Greater ability to monitor health metrics leading to integration with food and health product suppliers • Ability to subscribe to products based on real-time health data • Employers monitoring employees forcing consumer change
  • 18. Consumers: Purpose • Failing democracy – impossible to buy homes, work more precarious, nothing is certain any longer • People looking for a greater purpose in life and expecting brands to help
  • 19. Consumers: Channel Shift • Brand interaction on new channels • Voice controlled systems – Alexa, Home • Devices such as Nest interacting with brands on your behalf • Google Glass making a comeback • AI agents representing customers in all aspects of life – shopping to politics
  • 20. Summary of Trends SHOPPING: AI bots doing the buying LIFESTYLE: own less rent more HEALTH: metrics and monitoring FOOD: where is it from? BIONIC: transhuman reality AR/VR: gamification of consumer experience JOBS: platform based, gig economy
  • 21. What Questions To Ask? • What makes us distinctive? • How to we engage and build relationships with customers that last for decades? • Are we agile enough to react to new competitors that don’t even exist today? • Who can we partner with to build resilient networks of expertise? • How does technology help us to differentiate and not just enable?
  • 22. Recommend Reading • Future Politics, Jamie Susskind, OUP 2018 • The People Vs Tech, Jamie Bartlett, Ebury 2018 • The End of Politicians, Brett Hennig, Unbound 2017 • The Age of Surveillance Capitalism, Shosana Zuboff, Profile 2019 • The Uninhabitable Earth, David Wallace-Wells, Allen Lane 2019 • 21 Lessons for the 21st Century, Yuval Noah Harari, Vintage 2018