© 2014 John Sing – All Rights Reserved
The 2015+ “Digital Customer Journey”
For your Business and Career
John Sing, Director of Technology
John Sing, [email protected]
© 2014 John Sing – All Rights Reserved
2014 – The New Customer Journey
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What’s Inside: New business reality:
“Digital Customer Journey” Mapping the
2014+ customer journey
Applying it to our business models Understanding
what’s changed 2014+ customer buying behavior
© 2014 John Sing – All Rights Reserved
2014 – The New Customer Journey
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A long time ago, there were fewer choices…..
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2014 – The New Customer Journey
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The 2014 customer’s problem: (too) many choices!
http://digitalvideospace.blogspot.com/2012/11/the-coming-battle-for-second-screen.html
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2014 – The New Customer Journey
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Meanwhile, regarding our business models…..
McKinsey Marketing and Saleshttp://media-cache-ec0.pinimg.com/originals/ab/57/f0/ab57f0388e175b0b0f3150a5538f3cbb.jpg
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2014 – The New Customer Journey
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Today’s evaluation phase research shows: > 60% consulted
others
> 60% consulted
others
< 9% from advertising< 9% from advertisinghttp://www.pinterest.com/pin/94083079686991394/
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> 50% of all internet access via mobile
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The “Showrooming” effect (auto dealer example):
http://marketingland.com/report-6-71748
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“Showrooming:” Amazon impact physical store retailers:
https://www.placed.com/resources/case-studies-and-white-papers
Top retailers where
customer purchased online on
Amazon…
After or while seeing item in
their retail store
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2014 – The New Customer Journey
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Today’s customer views your brand in fundamentally different way
Promiscuous in brand relationships – 10s/100s
Magnified by mobile-enabled instant internet-scale searching
Creates constantly shifting, expanding array of options
After purchase, customers aggressively engaged with social media, public reviews, complaints
In real-time, customers collaborate / condemn, depending on their experience, at internet scale and speed
Learning points for today’s customer
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2014 – The New Customer Journey
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Thus, we have 2014+ Business Model challenge…..
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But all is not lost! Even if this is your current state:
http://www.mckinseyonmarketingandsales.com/the-funnel-is-dead-long-live-consumer-decision-journey
Percentage of companies that admit they havelimited to no understanding
on how their customers interactwith them digitally
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2014 – The New Customer Journey
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How we used to attract customers = “The Funnel”:Initial
choicesInitial
choices
Whittle down to final buy
Whittle down to final buy
Prior to 2009:
© 2014 John Sing – All Rights Reserved
2014 – The New Customer Journey
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VS.
Before vs. Today:
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Could it be… there might be a new buying model?
Prior to 2009: “The Funnel”
Since 2009: “Customer Decision Journey”
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“The Customer Decision Journey”
Goal: Cut through the noise. Create “The Loyalty Loop”
In 2009, a “new journey”was first identified:
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“Customer Decision Journey”:
2. Evaluate2. Evaluate
3. Buy3. Buy
4. Enjoy, Advocate,
Bond
4. Enjoy, Advocate,
Bond
1. Consider1. Consider
Loyalty Loop
Let’ssummarize this model:
And it’s6-yearjourney
Four “battlegrounds”
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2014 – The New Customer Journey
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1. Consider 1. The customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
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2014 – The New Customer Journey
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1. The customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
1. Consider
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2014 – The New Customer Journey
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1. Consider 1. The customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
© 2014 John Sing – All Rights Reserved
2014 – The New Customer Journey
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1. Consider 1. The customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
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2014 – The New Customer Journey
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2. Evaluate
Customers add or subtract brands as they evaluate what they want
2/3 of interactions are “pulled” by customer from “earned social media”2/3 of interactions are “pulled” by customer from “earned social media”
Highly cross-channel journeyHighly cross-channel journey
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3. Buy
40% of customers change their minds at this point
Thus these are important:
- In-store experience ( physical or virtual )- Salesperson knowledge / approach- Merchandising, packaging, visual- Comparison shopping- Price check, etc.
Only stage where discount coupons are effective
Only stage where discount coupons are effective
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4. Enjoy / Advocate / Bond: “Loyalty Loop”
After purchase, customers remain aggressively engaged, publically promoting / assailing, collaborating / crowdsourcing your brand’s development, challenging / shaping your brand’s meaning in marketplace.
Loyalty Loop
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2014 – The New Customer Journey
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Loyalty Loop
Quiz: “Customer Decision Journey”: four stages
2. Evaluate2. Evaluate
3. Buy3. Buy4. Enjoy,
Advocate, Bond4. Enjoy,
Advocate, Bond
1. Consider1. Consider
Initial consideration set
Based on branding
Add / subtract choices
2/3 of interactions based on “PULL”
Earned social media
40% change mind
“In-store” experiencePackaging, visual
Comparison / price check
Word of mouthReviewsCrowdsourcingActive loyalists
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2014 – The New Customer Journey
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1st step: understand our ”Digital Customer Journey”
Loyalty Loop
2. Evaluate2. Evaluate
3. Buy3. Buy
4. Enjoy, Advocate,
Bond
4. Enjoy, Advocate,
Bond
1. Consider1. Consider
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http://franksdesigns.com
For designing some of the key graphics:
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1. June 2009: McKinsey publishes the initial “consumer decision journey” paper:http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey
2. December 2010: Harvard Business School publishes “Branding in the Digital Age – You’re Spending Your (2010 Marketing) Money In All the Wrong Places”:
http://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-all-the-wrong-places/ar/1
3. Above evoked industry-wide discussions, prompting this 2012 B2B follow-on: “Aligning with Consumer Decision Journey”: http://hbr.org/web/ideas-in-practice/aligning-with-the-consumer-decision-journey
4. By April 2013, dynamic content management becomes the norm in digital marketing: http://www.mckinsey.com/insights/marketing_sales/the_coming_era_of_on-demand_marketing
5. By May / June 2014, the best practices for Reinventing IT to support digitized customer journey had become clear: http://www.mckinsey.com/insights/business_technology/reinventing_it_to_support_digitization and http://www.mckinsey.com/insights/marketing_sales/digitizing_the_consumer_decision_journey
6. All of this has evolved into a strong body of research, here’s the McKinsey free online versions: http://www.mckinsey.com/client_service/marketing_and_sales/latest_thinking/customer_decision_journeyAlso do search on “David Edelman”, author of papers #2 and #3 above.
Notes – Where did this all come from
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1. People experience a brand in many ways other than purchase and usage of a product. Be aware of that no longer only customers that advocate / denigrate a product. Advocacy therefore is all through the cycle, not just after buying the product (May 2014) :
http://blogs.hbr.org/2014/05/marketing-can-no-longer-rely-on-the-funnel/
Counterpoints / enhancements / clarifications to CDJ:
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John Sing 32 years of experience in enterprise servers, storage, and software
– 2014: Director of Technology, 4cube – Infrastructure for Tomorrow
– 2009 – 2014: IBM Executive IT Consultant: IT Strategy and Planning, Enterprise Large Scale Storage, Internet Scale Workloads and Data Center Design, Big Data Analytics, Cloud Infrastructures, High Availability, Disaster Recovery
– 2002-2008: IBM IT Data Center Strategy, Large Scale Systems, Business Continuity, HA/DR/BC, IBM Storage
– Previous experience 1990s: Enterprise Storage Server Marketing Manager, Planner. International experience in Europe, Asia, IBM Hong Kong, IBM China, Systems Center, Specialist
[email protected] or [email protected]
@john_sing
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