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FMOTZMOT
…WTF
1
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!
Why all the hullaballo?
3
4
It’s never been easy to understand media consumption, let alone manage its placement, in China
Yesterday: TV, newspaper, internet and radioSource: Synovate Media Atlas China Dec 2009-Feb 2010
5
Considerable effort, expense and delays to get timely measures of things important for decision-making
Source: China Mosaic, Synovate, 2006
6
China has been in a perpetual state of change for years…ZMOT could actually make things easier
Source: China Mosaic, Synovate, 2006
20% 60%40%Past 3 month purchasers of respective model
Let’s learn from Google!
7
8
How many have read this?
zeromomentoftruth.com
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.
Then….ZMOT doesn’t apply to ~600,000,000 people in China
10
Researching ZMOT
In the US….Google &
Shopper Science
In China….WIMI & Viewstap
Online shopper survey
Past 6 mth buyers sports shoes, past 12 month buyers auto, luxury brands
Fielded Aug 2013
N = 600
Sour
ce: Z
MO
T M
acro
Stu
dy, G
oogl
e/Sh
oppe
r Sci
ence
s, 2
011
11
Researching ZMOT
In the US….Google &
Shopper Science
In China….WIMI & Viewstap
Online shopper survey
Past 6 mth buyers, sports shoes, past 12 month buyers auto, luxury brands
Fielded Aug 2013
N = 600
Sour
ce: Z
MO
T M
acro
Stu
dy, G
oogl
e/Sh
oppe
r Sci
ence
s, 2
011
We are NOT related at all to Google. W
e acknowledge
their brains, and replicated some of the research design
for China…because it will be interesting to compare
12
The top ten – the most commonly used information sources when making a purchase decision…which is China, which is the US?
Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 China ZMOT Study, WIMI/Viewstap, Aug 2013
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
Let’s not ignore the importance of pack
13
Some similarities wrt purchase journey … interestingly, commonalities with the borderless internet
Source: ZMOT Macro Study, Google/Shopper Sciences, 2011China ZMOT Study, WIMI/Viewstap, Aug 2013
Noticed ad
s onlin
e
Talke
d with
a sa
lespers
on
Compariso
n shopped
products
online
Sough
t info bran
d web
site
Sough
t inform
ation fr
om a ret
ailer
websit
e
Read co
mments
following a
n article
online
Became a
frien
d / follo
wer bran
d online
Saw ad
s on TV
Rec mail
from bran
d man
uf
Saw an
ad in
a new
spap
er
Read new
spap
er ari
cles
Read an
recei
ved fr
om a bran
d
Read bro
chures
about p
roduct
Searc
hed onlin
e with
a sea
rch en
gine
Traditional
WOM
Read pro
duct rev
iews o
nline
0
10
20
30
40
50
60
14
But significant differences elsewhere, especially importance of traditional media…old world still likes old media. Suggest China will blaze forward
Noticed ad
s onlin
e
Talke
d with
a sa
lespers
on
Compariso
n shopped
products
online
Sough
t info bran
d web
site
Sough
t inform
ation fr
om a ret
ailer
websit
e
Read co
mments
following a
n article
online
Became a
frien
d / follo
wer bran
d online
Saw ad
s on TV
Rec mail
from bran
d man
uf
Saw an
ad in
a new
spap
er
Read new
spap
er ari
cles
Read an
recei
ved fr
om a bran
d
Read bro
chures
about p
roduct
Searc
hed onlin
e with
a sea
rch en
gine
Traditional
WOM
Read pro
duct rev
iews o
nline
0
10
20
30
40
50
60
Source: ZMOT Macro Study, Google/Shopper Sciences, 2011China 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!
Noticed ad
s onlin
e
Talke
d with
a sa
lespers
on
Compariso
n shopped
products
online
Sough
t info bran
d web
site
Sough
t inform
ation fr
om a ret
ailer
websit
e
Read co
mments
following a
n article
online
Became a
frien
d / follo
wer bran
d online
Saw ad
s on TV
Rec mail
from bran
d man
uf
Saw an
ad in
a new
spap
er
Read new
spap
er ari
cles
Read an
recei
ved fr
om a bran
d
Read bro
chures
about p
roduct
Searc
hed onlin
e with
a sea
rch en
gine
Traditional
WOM
Read pro
duct rev
iews o
nline
0
10
20
30
40
50
60
Source: ZMOT Macro Study, Google/Shopper Sciences, 2011China ZMOT Study, WIMI/Viewstap, Aug 2013
A deeper dive into ZMOT in China
16
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The ZMOT bible talks about individual journeys….so of course categories are different
0 5 10 15 20 25 30 35 40 45
It is important that the messages, images in store matches on-line
I am persuaded by instore POSM if the brand has good on-line elements
I trust what the sales assistant says if it supports the messages on-line
Price promotions have a significant influence on my end buying decision
It is important to consider a wide range of options before narrowing down
I trust what I read from KOL's on-line
I trust what I read from general consumers on-line
I ignore other brands, go to the brand that was well-represented on-line
If a brand on-line has good support, I find out more about it in the store
Sports shoes AutoLuxury items
Percent who strongly agreed to statement
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
18
Clicks are as important as pricing to your business strategy
0 5 10 15 20 25 30 35 40 45
It is important that the messages, images in store matches on-line
I am persuaded by instore POSM if the brand has good on-line elements
I trust what the sales assistant says if it supports the messages on-line
Price promotions have a significant influence on my end buying decision
It is important to consider a wide range of options before narrowing down
I trust what I read from KOL's on-line
I trust what I read from general consumers on-line
I ignore other brands, go to the brand that was well-represented on-line
If a brand on-line has good support, I find out more about it in the store
Sports shoes AutoLuxury items
Percent who strongly agreed to statement
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
19
A pertinent on-line strategy will help the brand instore…if they work in harmony
0 5 10 15 20 25 30 35 40 45
It is important that the messages, images in store matches on-line
I am persuaded by instore POSM if the brand has good on-line elements
I trust what the sales assistant says if it supports the messages on-line
Price promotions have a significant influence on my end buying decision
It is important to consider a wide range of options before narrowing down
I trust what I read from KOL's on-line
I trust what I read from general consumers on-line
I ignore other brands, go to the brand that was well-represented on-line
If a brand on-line has good support, I find out more about it in the store
Sports shoes AutoLuxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
20
A pertinent on-line strategy will also reduce competitive pressures, and focus the shopper
0 5 10 15 20 25 30 35 40 45
It is important that the messages, images in store matches on-line
I am persuaded by instore POSM if the brand has good on-line elements
I trust what the sales assistant says if it supports the messages on-line
Price promotions have a significant influence on my end buying decision
It is important to consider a wide range of options before narrowing down
I trust what I read from KOL's on-line
I trust what I read from general consumers on-line
I ignore other brands, go to the brand that was well-represented on-line
If a brand on-line has good support, I find out more about it in the store
Sports shoes AutoLuxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
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”!
0 5 10 15 20 25 30 35 40 45
It is important that the messages, images in store matches on-line
I am persuaded by instore POSM if the brand has good on-line elements
I trust what the sales assistant says if it supports the messages on-line
Price promotions have a significant influence on my end buying decision
It is important to consider a wide range of options before narrowing down
I trust what I read from KOL's on-line
I trust what I read from general consumers on-line
I ignore other brands, go to the brand that was well-represented on-line
If a brand on-line has good support, I find out more about it in the store
Sports shoes AutoLuxury items
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
22
Good on-line a good life-line
1 2 30%
10%
20%
30%
40%
50%
60%
70%
80%
90%
If your customers liked your on-line messaging a lotthey are far more likely to be brand ambassadors on-line
after purchase.
Auto Luxury Sports Shoe
Source: China ZMOT Study, WIMI/Viewstap, Aug 2013
Inde
x to
cat
egor
y av
erag
e
23
And who are the “stronger” brands on-line…we can learn from them
Auto
Sports shoes
Luxury
Great ZMOT means FA withoutGood FMOT
24
25 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.
26 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.
27 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.
28 28
Shoppers are spending more time making decisions in-storethan previously expected
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
• 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.
29
• 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 bargain- seeking shopper also gives close scrutiny here to ensure the best value is not missed.
29
UNDERSTAND INTUITIVE SHOPPING….eg Shoppers’ line-of-sight is above shoulder height when navigating around supermarket aisles
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
• 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 short-
list.– Perhaps not needed in our own stores, but in
competitive environments.Post shopping interview:
Mod: “ Why are you not interested in the gift items”?
Shopper: “ I only care for the product quality
Role of promotions
Careful consideration of the purpose of promotions/premiums
31
• 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.Hiding behind the counter
CASTLE Style
32
It is important to get the right balance for product displays to avoid physical barriers being created for the shopper
32
• 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.
Promoters can be very effective, but performance can be very mixed
34
35
• 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
Sales assistants, and promoters, in general….are we training them the way we should be?
• 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.
Pride is fine – arrogance is not
36
• 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.
Either I’m really ugly, or, he is very inexperienced, or, he’s well short of his sales target!
37
• 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
Ambush
Golden rules of shopper engagement etiquette broken
38
An ending
39
Will the sales assistant think I am a genuine buyer; will they respect me?
Will the product be worth what it’s costing me?
Will the sales assistant know what I need?
Am I going to be pitched products I don’t need?
I actually know a reasonable amount already.
THE PURCHASE PARADOX
I want the product, but…
Trust combats the tension
Counter tension creates a purchase paradox
Tension must be overcome before a purchase is made. Trust is the antidote,
but is more difficult in new purchase occasions.
40
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.
Overcoming purchase tension: repurchase occasions
PRODUCT EXPERIENCE
Counter experience
Opinion forums
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.•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.
“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
Removing tension is much harder without prior product experience. Surrogates for trust are looked for.
42
TENSION
REPUTABLE BRANDPOSITIVE WOM
COUNTER DISPLAYSALES STAFF REASSURANCES
Overcoming purchase tension: new purchase occasions
Brand haloBrand pedigree and reputation in skin care
Positive WOMIs WOM/online forums reporting positive news about product efficacy and/or no side effects?
Brand haloBrand pedigree and reputation in skin care, and advertising
Counter displayIs the counter environment aesthetically pleasing, tidy and inviting?
Sales staff: pleasant & professionalIs the salesperson someone the customer wants to deal with?
Reducing tension
ZMOT
Removing tension is much harder without prior product experience. Surrogates for trust are looked for.
43
TENSION
Overcoming purchase tension: new purchase occasions
Brand haloBrand pedigree and reputation in skin care
Positive WOMIs WOM/online forums reporting positive news about product efficacy and/or no side effects?
Brand haloBrand pedigree and reputation in skin care, and advertising
Counter displayIs the counter environment aesthetically pleasing, tidy and inviting?
Sales staff: pleasant & professionalIs the salesperson someone the customer wants to deal with?
ZMOT