The New Smart Customers http://www.flickr.com/photos/tao_zhyn/2450284882/

THE NEW SMART CUSTOMERS

THERE ARE MILLIONS

AND THEY ARE ALL DIFFERENT
http://ken-jennings.com/blog/?m=200809

THE SHORTEST DISTANCE BETWEEN TWO
POINTS IS NO LONGER A STRAIGHT LINE.

What used to be this….

Is now this

Situations Customers get in touch
with brands in various situations – be it relaxed at home or in a hurry while traveling. They may live in a big city or in a small town where the next retailer is miles away.

How customers really buy

The purchase path depends on
different factors PRODUCT personality preferences habits attitudes everyday products information-intense products look-and-feel products urgency to buy the product shopping infrastructure CULTURE

Spontaneous purchase http://www.flickr.com/photos/37504045@N00/237947864 There are
different ways to shop for products. Sometimes we buy spontaneously, out of mere pleasure, not having realized that we wanted to have such a thing before. Sometimes we consider purchases more deeply: During the considered purchase we spend some thoughts on what to buy and we do some research beforehand.

Considered purchase: criteria <ul><li>My new
camera: </li></ul><ul><li>easy to carry around </li></ul><ul><li>takes great photos </li></ul><ul><li>telephoto and wide-angle lens </li></ul><ul><li>manual shutter speed and aperture </li></ul><ul><li>rechargeable, but also works with normal batteries </li></ul>

Research process <ul><li>visited small stores
and big chain retailers </li></ul><ul><li>spoke to staff and tested in-store </li></ul><ul><li>read consumer magazines </li></ul><ul><li>spent 10 hours online: price comparison, manufacturer websites, product details online </li></ul><ul><li>borrowed a camera and tested it </li></ul><ul><li>blogged about the experiences </li></ul>

Decision & purchase

After-purchase <ul><li>Used and evaluated the
camera </li></ul><ul><li>Recommended the camera to others online or in real life </li></ul><ul><li>Stayed in touch with the brand and the retailer </li></ul>

The purchase process

Purchase paths Forrester 2009, Depicting
European Shoppers’ Complex Purchasing Decision Path

The purchase process: Idea http://www.flickr.com/photos/kubina/1497679352/

Need identification How did you
get the idea for the purchase? SapientNitro online survey August 2010

Specificity of product vision SapientNitro
online survey August 2010 How specific was your initial idea of the product in your opinion? <ul><li>My criteria: </li></ul><ul><li>easy to carry around </li></ul><ul><li>takes great photos </li></ul><ul><li>telephoto and wide-angel lens </li></ul><ul><li>manual shutter speed and aperture </li></ul><ul><li>rechargeable, but works also with normal batteries </li></ul><ul><li>My criteria: </li></ul><ul><li>a good camera </li></ul>

The purchase process: Research http://www.flickr.com/photos/andercismo/2349098787/sizes/l/in/photostream/

Product types Consumer electronics Travel
Beauty, cosmetics and health Food Clothing and footwear Mobile phone or accessories Furniture Media and leisure Computer hard- & software

Information gathering SapientNitro online survey
August 2010

Computer hard- and software SapientNitro
online survey August 2010 It is about information very helpful a little helpful not helpful Offline Online Channel neutral

Clothes and footwear SapientNitro online
survey August 2010 It is about look and feel very helpful a little helpful not helpful Offline Online Channel neutral

Travel SapientNitro online survey August
2010 It is about price very helpful a little helpful not helpful Offline Online Channel neutral

More online information gathering I
searched department stores online to see where I could find the same boots for the best price. (Bought Frye Boots.) I watched for e-mail deals from airlines, specifically spirit air. (Bought a travel.) I emailed the reseller asking for further detail on the product. (Bought herb pots.) Browsed the Dell Outlet store and signed up for their offers program. (Bought a laptop.) I compared which websites had free shipping . (Bought a stand for gardening equipment.) I looked at different aggregators websites (Expedia and Opodo). Their user experience is different and it gave me information to refine my results. (Bought flight London-Sydney.) I watched the product and similar products on eBay auctions to compare price difference for new vs. used products (Bought a Therm-A-Rest camping matress.) Video reviews on Youtube is super helpful. (Bought printer/scanner/copier.) What else did you do to be able to make your decision?

More offline information gathering Open
Question in SapientNitro online survey August 2010 I created a list of all my options - prices, dates, places covered and prioritised them. (Bought a holiday to Jordan.) I also photographed the products and scanned the barcodes to locate pricing on the web that could beat the physical store. (Bought socks.) I got home demos from manufacturers (Bought home water purifier system.) Watched television shows dedicated to gadgets and mobile phones. (Bought an HTC Desire.) What else did you do to be able to make your decision?

45% SapientNitro online survey August
2010 Consumer Commerce Barometer 2010 of respondents to the Consumer Commerce Barometer study sometimes check availability online before going to the store.

Consumer Commerce Barometer 2010 of
respondents to the Consumer Commerce Barometer study have taken printouts of product information to the store. 23%

80% SapientNitro online survey August
2010 of smart-phone owners in our survey have used their mobile phone in-store to retrieve product information.

Dark figure SapientNitro online survey
August 2010 http://lh3.ggpht.com/_eN9tzgso-m0/S3k81g8DNQI/AAAAAAAAIpY/fwN9hLEpEaY/s720/F.P.HoseNeu3.JPG Some respondents also reported to have taken photos in fitting rooms to continue their research online later.

Dark figure http://lealoves.blogspot.com/2008/07/akute-shoppingunlust.html On the
internet consumers also blog their pictures to share their experiences and get other people’s opinions.

The purchase process: Decision http://farm1.static.flickr.com/172/378441879_621a7c7782_z.jpg?zz=1

Ease of decision: Products easy
to decide difficult to decide so so

Most helpful for making a
decision In-store demo Advice from store staff Calling customer care. Consumer magazines Personal recommendations and advice from friends and family To see and test the product Chats and Forums Reviews and Ratings Price comparison engines Detailed product information Product comparison Good pictures from multiple perspectives. Demo videos Trust in the brand

The purchase process: Purchase http://www.flickr.com/photos/srs0001/4562512283/

Reason for purchase channel Open
Question in SapientNitro online survey August 2010 The best price. I could see and test the product. Online Offline Great assistance by staff. No delivery times, I don’t have to wait. It was the easiest. It was the closest. I had a voucher. I got a discount. In India: So I know what I get. Ease of delivery. No pressure by sales people. It was on sale. It was not available in-store. Avoided the lineups. More choice. I had a voucher. 24 / 7

90% SapientNitro online survey August
2010 SapientNitro online survey August 2010 of respondents in the Sapient internal study report that they have already used price comparison engines.

Consumer Commerce Barometer 2010 24%
find arranging suitable delivery times difficult. 42% find returning items inconvenient. 38% think that shipping cost is too expensive. https://www.dpd.com/de/content/download/763/7406/image/DPD_Bildmotiv_Zustellung_2C_02.jpg

Consumer Commerce Barometer 2010 23%
http://www.flickr.com/photos/brackch/4351273998/ have already reserved an item online and picked it up in-store.

The purchase process: After-purchase http://www.flickr.com/photos/sambhusankar/4218337610/

After purchase Open Question in
SapientNitro online survey August 2010 Have you ever done one of the following… ?

The purchase process: Lessons learned
The right formula for every product – be it information, mood, look & feel or ratings Intrinsic triggers. All you need to do is make them stay! Bring the information of both worlds together to enable decision making Trust. Good prices. Fast and flexible delivery. Engage your customers and make them help you.

How can we address this?

CREATE RELEVANCE

Why? How? What? Golden circle
by Simon Sinek

Toolbox http://www.flickr.com/photos/ctreadway/3607458841/

KNOW YOUR SYSTEM AND PROCESSES

A great team

KNOW YOUR CUSTOMERS

Well known sources Field studies
Customer segmentation Interviews Surveys Focus Groups Testing

Web analytics Web analytics helps
you to understand the behavior of your customers: Know where they come from, track the buzz around your brand, products or services on Twitter, check if your conversion funnel works well.

MODEL THE EXPERIENCE

Personas Extend your Personas: Think
about their online behavior and their touchpoints with your brand: This could be local retailers, the call center or your Facebook page – they will always leave their marks and shape the brand experience.

Customer journeys Buckminster.be

More deliverables Service Blueprint Touchpoints
Matrix Mental Model Experience Map

Show time http://www.flickr.com/photos/st3f4n/2769915203/

BE HONEST

Shared customer experience Juicystar01 has
nearly 500,000 subscribers and over 25 million channel views on YouTube. She presents the results of her latest shopping tour on YouTube in short videos – a user generated product test channel.

Integrate the user Talbots.com integrates
user generated content on their website: Users provide stories on the products and situations in their life Won Best in Class award for eCommerce @ interactive media awards 2010 Q2.

IT’S ABOUT CUSTOMER EXPERIENCE

Share happiness Award-winning ice ‘vending’
machine for Heart brand (better known as Wall’s or Langnese in local markets): Smile and you get an ice cream for free! Probably not the best way to make money, but very effective to create happy customers who share their experiences with your brand on Facebook and among their friends.

CONNECT THE CHANNELS

This is a music video
http://www.diesel.com/ahundredlovers/ Music video for the spring summer collection of Diesel and also the entry point for the online shop. Hovering on the people reveals interactive elements. Clicking on those opens a preview of the respective item. Created by Anomaly and Stink Digital

Put it in the right
place http://www.designbynotion.com/metamirror-next-generation-tv/ Future vision by Notion Design Interactive experience on a device that suits best the customer’s current situation.

Extend your offline store http://www.flickr.com/photos/macinate/2016365041/
Create an online presence of an offline store. This can be achieved by creating a white label solution that is later branded by the local retailer. The solution can be used online or as self service kiosk in store. In contrast to pure online shops provide additional information, e.g. on your special focus. Your online recommendations and reviews will be experienced as coming from a renowned and trusted expert your clientele knows from real life. Furthermore provide local activities to tie the customer to your store (e.g. readings). Make him return not only because of the content he can purchase - he could do that also at Amazon.

Your online team http://www.flickr.com/photos/bike/3983843569/ This
could be your online team. It’s important for your staff to know both worlds. Use your staff as a direct feedback channel to your online self service system.

IN STORE EXPERIENCE

Intelligent signage © 2010 SapientNitro
and Designaffairs A short user journey A customer walks by the store front and discovers an interactive ‘window’ with product information on featured products – 24 hours a day / 7 days a week.

Interactive mirror © 2010 SapientNitro
and Designaffairs A short user journey (continued) She finds a jacket and has a look at herself in a mirror. She swipes the badge of the jacket on the mirror and gets information on the item and on related articles. She tries on one of the suggested trousers. Unfortunately it is too big but the correct size is available in the online store. She adds the trousers to her virtual shopping basket.

Mood box © 2010 SapientNitro
and Designaffairs A short user journey (continued) In the changing room she is provided with different ambiences. She finds herself immediately transferred into her next hiking trip in the mountains.

CONTEXT IS KING

Augment your information http://www.taschenkaufhaus.de/ Which
items fit in this bag? taschenkaufhaus.de not only shows the measurements of the bag but also views from different angles and the bag in context with a person’s silhouette, so the customer can understand the size relations.

Provide contextual tools Ionos: Mobile
app for iPhone and Blackberry Ionos’ Mobile app for iPhone and Blackberry focuses on the special context of a person at an airport. The user can retrieve information that is relevant in this situation, such as flight status and real-time change alerts, parking lot availability, gate information and maps, security waiting times and concessionaire listings (including user ratings). The user can also retrieve information on ground transportation options, baggage claim locations and local weather conditions, which become relevant after arriving at the destination.

TRACK CONVERSION

Web analytics http://www.flickr.com/photos/arcadiaphotographicuk/4883308302/ Vouchers available
online bring your customers into the store and allow you to track online-to-offline conversion: A unique QR code on the detail page of a certain product can be saved as a bookmark. Revealed in store the customer gets a free cup of coffee with some cookies in return – and you know what website the customer visited at home that made him come here.

Smart targeting http://www.flickr.com/photos/davepearson/537557306/ Smart Targeting
by SDL Tridion matches search terms used by visitors to display relevant results. Thus you know where your visitors come from – be it Google, Facebook, Twitter, your search marketing campaigns or affiliate websites – and enables you to create an intelligent and dynamic CMS.

Wrap up

Wrap up Know your system
and processes Know your customers and their current situation Focus on the why and create relevance for the customer Align your information and offerings Connect the channels and track the paths Create a connected customer brand experience Know their needs in each phase of the purchase process

Sources and recommendations <ul><li>Books </li></ul><ul><ul><li>Underhill,
P. (2008). Why we buy: The science of shopping. Simon & Schuster. </li></ul></ul><ul><ul><li>Schwartz, B. (2005). The Paradox of Choice: Why More Is Less. Harper Perennial. </li></ul></ul><ul><li>Reports and studies </li></ul><ul><ul><li>Fehrenbach, C. & Rösgen, A. (2010). How the customer really buys. Sapient internal online survey on consumer behavior (internal resource). </li></ul></ul><ul><ul><li>Camus, L., Freeman Evans, P., Klevchuk, O. & McGowan, B. (2009). Depicting European shoppers' complex purchasing decision path. Forrester. </li></ul></ul><ul><ul><li>Freeman Evans, P., Camus, L. & McGowan, B. (2010). Trends 2010: European retail eBusiness and channel strategy. Forrester. </li></ul></ul><ul><li>Online resources </li></ul><ul><ul><li>Consumer Commerce Barometer: consumerbarometer.eu </li></ul></ul><ul><ul><li>Sinek, S. (2010). The Golden Circle TED presentation: http://www.startwithwhy.com/#video1 </li></ul></ul>

Carmen Fehrenbach Information Architect Psychologist
Focus on Media Psychology Axel Rösgen Sr. Information Architect Industrial Designer Focus on Computational Design

THANK YOU! www.sapientnitro.com Twitter: @sapientnitro
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