Today, our customers engage whether to do business with us in fundamentally different ways, relying heavily on digital interactions, evaluating a constantly shifting array of options, and affecting our future business by their post-purchase continual engagement through social media, recommendations, and reviews. A new customer buying model is the new normal. First described in 2009, continually refined since, this is my tutorial on this proven McKinsey / Harvard paradigm. Essential info. I also have an IT-specific version of this presentation on Slideshare.net ( "Will your 2015 IT Roadmap Drive Business Success?" ) which supplements this presentation by describing the deep implications to the IT technology organization, and best practices for IT and the business to address these implications successfully. The URL for that presentation (you may cut/paste) is: http://www.slideshare.net/johnsing1/2015-it-roadmapdrivingbusinesssuccessv31
Graphic:
http://www.forbes.com/sites/glennllopis/2014/03/24/every-leader-must-be-a-change-agent-or-face-extinction/
In that article, the picture came from: http://blog.lamarsh.com
http://liesdamnedliesstatistics.com/2012/05/stats-that-show-why-you-need-a-mobile-first-approach-now.html
http://www.digitalbuzzblog.com/2011-mobile-statistics-stats-facts-marketing-infographic
By 2014:
mobile will be main way of connecting to Internet.
Younger consumers are already doing so,
various activities ranging from social media to online shopping are increasing on smartphones.
Smartphones are becoming the primary camera for more and more people
coinciding with Instagram reaching 50 million users
while smartphone users are not only always connected but engage in content snacking as this US report says
In other words, what we consume may not be different
but how we consume it, how long for, how they share it and how they view it will be.
the role that smartphones play on the auto dealership lot:
http://marketingland.com/report-6-71748
Impact of Amazon on the retailer:
http://www.placed.com/press-release/aisle-to-amazon-showrooming-retail-impact
Source of graphic for the “5 choices”: http://www.aptuss.com/resources/business-owners/
Source of question mark: http://photosinbox.com/sign-and-symbol/question-symbol
http://www.mckinseyonmarketingandsales.com/the-funnel-is-dead-long-live-consumer-decision-journey
As well as these:
http://zeitgeistandstuff.wordpress.com/2014/03/03/techs-impact-on-business-and-culture-in-2014/
http://desiregroupe.com/marketing-in-a-connected-world-an-excerpt-from-paul-g-roberts-new-book-how-secrets-of-the-new-economy-2nd-edition/
Marketers used to think that customers methodically whittled down their purchase choice until a final selection was carefully made. Not only that, but this outdated funnel analogy didn’t account for what happened *after* the purchase, which arguably when all the hard work *really* starts.
Marketers still use funnel analysis to track discrete processes (i.e. checkout funnel), but it’s not how we describe the broader customer decision journey any more.
http://www.inma.org/blogs/value-content/post.cfm/hiking-the-customer-decision-journey
Comparing the “funnel” vs. the “Customer Decision Journey”
You can see tons of versions here:
http://www.pinterest.com/McKMktgSales/customer-decision-journey/
Instead, our customers (and thus, we as business owners) take a much more iterative, circular, less reductive journey
Nowadays, we describe the customer’s decision journey as more of an orbit. The farther away the customer ‘travel’s from your brand, the more consideration and pause and departure in their process of deciding to buy from you. The tighter the customer ‘travels’ to your brand, the more loyal they are.
Ideally, you of course should be spending (far) less to acquire a customer for a repeat purchase, than you did for their first purchase. Often, your most vocal advocates are your most loyal customers, giving rise to the idea of the “Loyalty Loop”.
Key takeaway: these 4 stages are the 4 “battlegrounds” for your customer’s business
Customers are more influenced by the “evaluate” and “enjoy / advocate / bond “ stages, than the “consider” and “buy” stages
Consideration
Customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
Customer impressions formed from: Advertising, news, conversation, product experience shapes the “initial consideration set” (only!)
Consideration
Customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
Customer impressions formed from: Advertising, news, conversation, product experience shapes the “initial consideration set” (only!)
Consideration
Customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
Customer impressions formed from: Advertising, news, conversation, product experience shapes the “initial consideration set” (only!)
Consideration
Customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points
Customer impressions formed from: Advertising, news, conversation, product experience shapes the “initial consideration set” (only!)
1. Consideration
1. Consideration
With all of this as a context, now when we see the 1000s of articles like this one, they start to make sense:
http://www.ducttapemarketing.com/blog/2014/07/17/brand-advocates/
Nowadays, we describe the customer’s decision journey as more of an orbit. The farther away the customer ‘travel’s from your brand, the more consideration and pause and departure in their process of deciding to buy from you. The tighter the customer ‘travels’ to your brand, the more loyal they are.
Ideally, you of course should be spending (far) less to acquire a customer for a repeat purchase, than you did for their first purchase. Often, your most vocal advocates are your most loyal customers, giving rise to the idea of the “Loyalty Loop”.
Key takeaway: these 4 stages are the 4 “battlegrounds” for your customer’s business
Nowadays, we describe the customer’s decision journey as more of an orbit. The farther away the customer ‘travel’s from your brand, the more consideration and pause and departure in their process of deciding to buy from you. The tighter the customer ‘travels’ to your brand, the more loyal they are.
Ideally, you of course should be spending (far) less to acquire a customer for a repeat purchase, than you did for their first purchase. Often, your most vocal advocates are your most loyal customers, giving rise to the idea of the “Loyalty Loop”.
Key takeaway: these 4 stages are the 4 “battlegrounds” for your customer’s business
Customers are more influenced by the “evaluate” and “enjoy / advocate / bond “ stages, than the “consider” and “buy” stages
Thank you!
A catch-all list of other articles talking about CDJ and related research:
http://wimrampen.com/2013/08/17/marketings-new-key-competence-driving-the-consumers-decision-journey/
http://www.smartinsights.com/content-management/content-marketing-strategy/googles-zmot-brilliant-or-bocks/
http://www.slideshare.net/McK_CMSOForum/customer-experience-journey-webinar-v10-091713