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The new smart customers

How they really buy – And how we can address this

Carmen Fehrenbach & Axel Rösgen


euroIA 2010 – Paris – September 24th 2010

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http://www.flickr.com/photos/tao_zhyn/2450284882/
Axel Rösgen Carmen Fehrenbach
Sr. Information Architect Information Architect

Industrial Designer Psychologist


Focus on Computational Design Focus on Media Psychology

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The New Smart Customer | euroIA 2010 – Paris | 3
7000+
passionate people

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30+
offices globally
connected

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Multi-
DISCIPLINE

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Clients

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Agenda

!   About us
!   The new smart customers
!   How they really buy
!   Idea
!   Research
!   Decision
!   Purchase
!   After-purchase
!   How can we address this
!   Toolbox
!   Show time

!   Questions

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THE NEW SMART CUSTOMERS

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THERE ARE
MILLIONS

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AND THEY ARE
ALL DIFFERENT

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http://ken-jennings.com/blog/?m=200809
THE SHORTEST DISTANCE
BETWEEN TWO POINTS
IS NO LONGER
A STRAIGHT LINE.

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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.

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How customers really buy

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16
The purchase path depends on different factors

CULTURE

urgency to buy the product


shopping infrastructure

personality
preferences
habits CIRCUMSTANCES
attitudes

everyday products
PRODUCT information-intense products
look-and-feel products

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Spontaneous purchase

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.

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http://www.flickr.com/photos/37504045@N00/237947864
Considered purchase: criteria

My new camera:
!   easy to carry around
!   takes great photos
!   telephoto and wide-angle lens
!   manual shutter speed and
aperture
!   rechargeable, but also works
with normal batteries

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Research process

!  visited small stores and big chain retailers


!  spoke to staff and tested in-store
!  read consumer magazines
!  spent 10 hours online: price comparison,
manufacturer websites, product details online
!  borrowed a camera and tested it
!  blogged about the experiences

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20
Decision & purchase

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After-purchase

!  Used and evaluated the camera


!  Recommended the camera to
others online or in real life
!  Stayed in touch with the brand
and the retailer

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The purchase process

Idea

After-
Research
Purchase

Purchase Decision

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


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The purchase process: Idea

Idea

After-
Research
Purchase

Purchase Decision

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http://www.flickr.com/photos/kubina/1497679352/
Need identification
How did you get the idea for the purchase?

I needed it. 49%

I wanted to have it (for a long time) 39%

The old one was broken / is quite old 21%

I saw someone else with it 8%

I saw it in a store / shop window 6%

I saw an online advert 4%

I saw an offline advert 4%

0% 10% 20% 30% 40% 50%

SapientNitro online survey August 2010


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Specificity of product vision
How specific was your initial idea of the product in your opinion?

30%

My criteria:
25%
!   easy to carry around
!   takes great photos
20% !   telephoto and wide-angel lens
!   manual shutter speed and
aperture
15% !   rechargeable, but works also
My criteria:
with normal batteries
!   a good camera
10%

5%

3% 3% 7% 10% 28% 21% 29%


0%
not at all 2 3 4 5 6 very specific
specific

SapientNitro online survey August 2010


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The purchase process: Research

Idea

After-
Research
Purchase

Purchase Decision

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http://www.flickr.com/photos/andercismo/2349098787/sizes/l/in/photostream/
Product types Consumer electronics

Computer hard- &


Travel software

Mobile phone or
accessories

Clothing and footwear


Media and leisure

Furniture

Beauty, cosmetics
Food
and health The New Smart Customer | euroIA 2010 – Paris | 29
Information gathering

SapientNitro online survey August 2010


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Computer hard- and software
Online reviews

Manufacturer's websites

Product ratings

Compare descriptions

Price comparison engines

Looked at products in-store

Online test results

Spoke to others

Advise from staff

Ordered online and tested

Description of resellers

Consulted forums / chats

Borrowed from others and tested

Trade or consumer magazines


It is about information
Hotline

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SapientNitro online survey August 2010


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Clothes and footwear
Looked at products in-store

Manufacturer's websites

Price comparison engines

Product ratings

Online reviews

Compare descriptions

Advise from staff

Description of resellers

Spoke to others

Ordered online and tested

Online test results

Consulted forums / chats

Trade or consumer magazines

Borrowed from others and tested


It is about look and feel
Hotline

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SapientNitro online survey August 2010


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Travel
Price comparison engines

Compare descriptions

Online reviews

Product ratings

Manufacturer's websites

Description of resellers

Online test results

Hotline

Spoke to others

Consulted forums / chats

Looked at products in-store

Ordered online and tested

Trade or consumer magazines

Borrowed from others and tested


It is about price
Advise from staff

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SapientNitro online survey August 2010


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More online information gathering
What else did you do to be able to make your decision?

I searched department stores I emailed the Browsed the Dell


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

I created a list of all my


options - prices, dates,
places covered and
I got home demos from prioritised them. (Bought a
manufacturers (Bought holiday to Jordan.)
home water purifier
system.) I also photographed the
products and scanned the
Watched television shows barcodes to locate pricing on
dedicated to gadgets and the web that could beat the
mobile phones. (Bought an physical store. (Bought
HTC Desire.) socks.)

Open Question in SapientNitro online survey August 2010


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45%
SapientNitro
of respondents to the Consumer Commerce online survey August
Barometer study2010
sometimes check availability online before going to the store.

Consumer Commerce Barometer 2010

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

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

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Dark figure
Some respondents also reported to have taken photos
in fitting rooms to continue their research online later.
SapientNitro online survey August 2010

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39
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Dark figure
On the internet consumers also blog their pictures to
share their experiences and get other people’s opinions.

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http://lealoves.blogspot.com/2008/07/akute-shoppingunlust.html
The purchase process: Decision
Idea

After-
Research
Purchase

Purchase Decision

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http://farm1.static.flickr.com/172/378441879_621a7c7782_z.jpg?zz=1
Ease of decision: Products
100%

90%

80% easy to decide


70%

60%

50% so so
40%

30%

20%
difficult to decide
10%

0%

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easy to decide medium difficult to decide

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Most helpful for making a decision
Price comparison
engines
To see and test
the product Personal recommendations
and advice from friends and
Chats and Forums family

Reviews and Trust in Product In-store


Ratings comparison demo
the brand
Advice from Consumer
store staff Demo videos
magazines

Calling Detailed
Good pictures from
customer care. product
multiple perspectives.
information

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The purchase process: Purchase

Idea

After-
Research
Purchase

Purchase Decision

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http://www.flickr.com/photos/srs0001/4562512283/
Reason for purchase channel
Online Offline

The best price. I could see and


test the product.
Ease of delivery.
Great assistance by staff.
No pressure by sales people. No delivery times, I don’t have to wait.

It was not available in-store. It was the easiest. It was the closest.

Avoided the lineups.


24 / 7 It was on sale. I had a voucher.
I had a voucher. I got a discount.
More choice.
In India: So I know what I get.

Open Question in SapientNitro online survey August 2010


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

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SapientNitro online survey August 2010
24% find arranging suitable
delivery times difficult.

42% find returning items


inconvenient.

38% think that shipping


cost is too expensive.

Consumer Commerce Barometer 2010

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https://www.dpd.com/de/content/download/763/7406/image/DPD_Bildmotiv_Zustellung_2C_02.jpg
23%
have already reserved an item online
and picked it up in-store.
Consumer Commerce Barometer 2010

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http://www.flickr.com/photos/brackch/4351273998/
The purchase process: After-purchase

Idea

After-
Research
Purchase

Purchase Decision

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http://www.flickr.com/photos/sambhusankar/4218337610/
After purchase
Have you ever done one of the following… ?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rated a product

Rated a service

Written a service review

often
Written a product review sometimes
once or twice

Open Question in SapientNitro online survey August 2010


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The purchase process: Lessons learned
Intrinsic triggers.
All you need to do is make them stay!

Idea
Engage your customers and
make them help you.
The right formula for
After- every product – be it
Research information, mood,
Purchase
look & feel or ratings

Bring the information of


Trust. Purchase Decision both worlds together to
Good prices. enable decision making
Fast and flexible delivery.

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How can we address this?

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CREATE RELEVANCE

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Golden circle

Why?

How?

What? by Simon Sinek

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Continuous process

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Toolbox

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http://www.flickr.com/photos/ctreadway/3607458841/
KNOW YOUR SYSTEM AND
PROCESSES

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A great team

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KNOW YOUR CUSTOMERS

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Well known sources

Surveys
Interviews
Customer
segmentation
Focus Groups
Testing
Field studies

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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.

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MODEL THE EXPERIENCE

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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.

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Customer journeys

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Buckminster.be
More deliverables
Mental Model Experience Map

Service Blueprint Touchpoints Matrix

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Show time

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http://www.flickr.com/photos/st3f4n/2769915203/
BE HONEST

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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.

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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.

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IT’S ABOUT
CUSTOMER EXPERIENCE

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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.
71
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CONNECT THE CHANNELS

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This is a music video

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

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http://www.diesel.com/ahundredlovers/
Put it in the right place

Future vision by Notion Design


Interactive experience on a device that
suits best the customer’s current
situation.

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http://www.designbynotion.com/metamirror-next-generation-tv/
Extend your offline store

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.

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http://www.flickr.com/photos/macinate/2016365041/
Your online team

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.
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http://www.flickr.com/photos/bike/3983843569/
IN STORE EXPERIENCE

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Intelligent signage

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.
The New Smart Customer | euroIA 2010 – Paris | 78
© 2010 SapientNitro and Designaffairs
Interactive mirror

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.

The New Smart Customer | euroIA 2010 – Paris | 79


© 2010 SapientNitro and Designaffairs
Mood box

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.

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© 2010 SapientNitro and Designaffairs
CONTEXT IS KING

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Augment your information

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.

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http://www.taschenkaufhaus.de/
Provide contextual tools

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.
Ionos: Mobile app for iPhone and Blackberry

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TRACK CONVERSION

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Web analytics

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.
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http://www.flickr.com/photos/arcadiaphotographicuk/4883308302/
Smart targeting
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.

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http://www.flickr.com/photos/davepearson/537557306/
Wrap up

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Wrap up

Know your customers and their current situation

Know their needs in each phase of the purchase process

Know your system and processes

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

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Sources and recommendations

!   Books
!  Underhill, P. (2008). Why we buy: The science of shopping. Simon & Schuster.
!  Schwartz, B. (2005). The Paradox of Choice: Why More Is Less. Harper Perennial.

!   Reports and studies


!  Fehrenbach, C. & Rösgen, A. (2010). How the customer really buys. Sapient internal
online survey on consumer behavior (internal resource).
!  Camus, L., Freeman Evans, P., Klevchuk, O. & McGowan, B. (2009). Depicting
European shoppers' complex purchasing decision path. Forrester.
!  Freeman Evans, P., Camus, L. & McGowan, B. (2010). Trends 2010: European retail
eBusiness and channel strategy. Forrester.

!   Online resources
!  Consumer Commerce Barometer: consumerbarometer.eu
!  Sinek, S. (2010). The Golden Circle
TED presentation: http://www.startwithwhy.com/#video1

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

aroesgen@sapient.com
cfehrenbach@sapient.com

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