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Marketing

Consumer 4.0 | CX - Omnichannel

by Filip Vanderbeken
Bio

o Filip Vanderbeken
o born in Belgium
o international career in B2B and Services Industry in EU
o since 2008 business owner of PERFORMAN, active in
Business & Marketing Strategy and Business Transformation
o University Lecturer and Researcher in BM
o Board Member in several companies

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CONSUMER 4.0 IS DISRUPTIVE TO THE EXISTING
BUSINESS MODELS & MARKETING THINKING

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MARKETING is first of all about

• creating customer value ; • traditional advertising models


• direct mail marketing
• developing and optimizing
‘profitable’ customer relations ; • Digital First
• Mobile & Social Media First (SEO/SEA)
• influencing the buying decision
process of customers and
potential buyers to hopefully
make them buy your products
over the competitors ones ; • AI First
• collecting and analyzing markets – new technologies
and consumer insights  – data analytics
influencing the way people
think  changing their help us to create new benefits for
behaviour in your favour our customers.

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Consumer 1.0 Consumer 4.0

The product must The consumer


offer a solution has options

The consumer has


higher expectations Consumer 3.0
+ wants to belong + technology

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Market research and data are crucial
when dealing with Consumer 4.0

Big data is a raw resource that is a few


important steps away from being useful

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Consumer 4.0

1. more and more personalized products and customer services,


individualized marketing programs
data analytics + technology + mass customization

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Consumer 4.0

12 Ikea Place: omnichannel / CJ-CX / AR-technology


Consumer 4.0

2. high expectations with regards to convenience (kenyanaman / mudahnya)


and easiness (kemudahan)
easy, fast, fun, trouble fee, omnichannel

CONVENIENCE (= zero effort)


vs
CHOICE (= effort)

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Consumer 4.0

(SmartInsights - Jan28, 2020)

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Consumer 4.0

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Consumer 4.0

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Consumer 4.0

How to deal with this?

TIME is becoming the AI + consumer data +


customer’s most technology
valuable resource.
FASTER
HYPER PERSONALIZED
CONVENIENCE

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Consumer 4.0

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Consumer 4.0

3. expects superior personal contact or advice when needed or wanted ;


in all other situations “please, don’t bother me” + convenience
commodity = digital & online vs. special or complex = human touch

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Consumer 4.0

4. less brand loyalty, but more sensitive to strong, attractive brands with
an authenthic DNA, an attractive story and recognizable culture and
values
growing importance for brand management (image, identity, loyalty)

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Consumer 4.0

The first steps to the single and different size


shoes program

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Consumer 4.0 - recap

 more and more personalized products and customer services, individualized


marketing programs
o data analytics + mass customization

 high expectations with regards to convenience (kenyanaman / mudahnya)


and easiness (kemudahan)
o easy, fast, fun, trouble free and omnichannel

 expects superior personal contact or advice when needed or wanted ; in all other
situations “please don’t bother me” + convenience
o commodity = digital / online vs special or complex = human touch

 less brand loyalty, but more sensitive to strong, attractive brands with an
authenthic DNA, an attractive story and recognizable culture and values
o growing importance for brand management (image, identity, loyalty)

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IT IS STILL ALL ABOUT OUR CUSTOMERS, BUT…

 Being customer-value driven is the absolute minimum in today’s business and


marketing environment. But it is not enough anymore.

 Consumer 4.0 wants more than just excellent service.


Excellent service is the new commodity.

 Consumer 4.0 expects much more, thanks to technology and companies such as
Amazon, Alibaba, Tripadvisor, Booking.com, Google, Facebook, Tesla, …

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IT IS STILL ALL ABOUT OUR CUSTOMERS, BUT…

 Being customer-value driven is the absolute minimum in today’s business and


marketing environment. But it is not enough anymore.

 Consumer 4.0 wants more than just excellent service.


Excellent service is the new commodity.

 Consumer 4.0 expects much more, thanks to technology and companies such as
Amazon, Alibaba, Tripadvisor, Booking.com, Google, Facebook, Tesla, …

for Companies & Organisations for Consumer 4.0

COMPLEXITY ² CONVENIENCE ²
EASINESS ²

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Key challenges for businesses

 The COVID-10 pandemic is the biggest digital training course


the world has ever seen.

 Online sales continue to grow


• in B2B – B2C – C2C – D2C
• with existing customer but also with new customers

 McKinsey study reports that overall customer loyalty has never


been lower than during COVID-19 pandemic.

NIKE shares hit a record high after the company


reported an 82% jump in online sales.

COVID-19 has changed online shopping forever

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Key challenges for businesses

 Competitive landscape is changing drastically with plenty of newcomers


(from inside / outside the industry).

 Technology companies and platforms are very powerful and play another game.
They compete for the market ; not for a share of the market!!!
Their marketing is faster, smarter and more agressive.

 Online orders using Alexa, the


voice-assistant from Amazon, are increasing.

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How to compete, differentiate and win Consumer 4.0?

The basics of a successful company are still


o ‘good’ product
o ‘good’ price CONSUMER INSIGHTS
o ‘good’ service

Add Consumer 4.0 value

o digital convenience (= creating optimal transaction of the Customer Journey)


o time (= safe time for customer + add time for customer)
o experience (= talk to the human behind the customer | create the best CX)
o trust (= become the ‘partner in life’ | change the world using your strengths)

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How to compete, differentiate and win Consumer 4.0?

How to make the difference in a positive way and


win the trust of the customer?

• more digital
• + more human
• + more local
• + make them matter (care about them)

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How to compete, differentiate and win Consumer 4.0?

Marketing the Machine

o algorythm influenced buying


behaviour

o Business & Marketing


Strategy must answer to the
question: how will we or
how can we influence the
algorithm?

o Must we start talking and


communicating with the
algorithm? Is ALGORITHM
MARKETING the next step?

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Consumer 4.0 | Customer Experience

Dream the ultimate or best possible CX of tomorrow


and reverse engineer it back to today.

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Consumer 4.0 | Customer Experience

When talking about CX, ask yourself the following question:

“ Why do I go back over and over again to that store, that restaurant, that e-platform? ”
(by Patrick Bet-David)

Customer Cheap
Service

User
Quality
Friendly

Luxury Fast

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Consumer 4.0 | Customer Experience

• ACTIVE + REACTIVE • PROACTIVE

• Can I help you? Thank you! Can I do • It is all about the way you treat your customers ;
anything elso for you? I understand. data & details ; listening & talking ; showing
• When client is upset: handle things, react, interest ; delivering more than expected.
solve the problem, fix it. • Creating VIPs and ambassadors.
• Very important but transactional Your best sales team ever (and “for free”).
• Examples: Zappos, Amazon Prime,
• Examples: Amazon, Southwest Airlines, Executive Programs by airlines and hotels
Zappos, Apple, BMW, etc.
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Consumer 4.0 buys omnichannel

Single channel = only 1 channel between distributor and customer (e.g. physical store, webshop)

Multichannel = based on the assumption that customers were choosing a main way to shop and buy. Each channel is isolated and
independant (budget, teams, processes, tools, reporting structures, revenu goals). No integration, no communication, no alignment, no
data exchange about the customers between the different channels.

Cross channel = cross-over version between multi-channel and omni-channel. Usually a transitional phase due to budget and/or
organisational restrictions.

Omnichannel = no longer about maximizing channel efficiency. It puts the customer at the core of the strategy.
The omnichannel goal is to deliver consistent and seamless customer experience.
Everything is integrated, aligned, synchronized and of the same quality level. The different channels empower each other.
There is no “interruption” or “noise” between the brand experience online and offline.
1 data
35 source – 1 brand experience – 1 product range – 1 price strategy – 1 client identity
Consumer 4.0 buys omnichannel

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Customer Experience in 2021
Study by SuperOffice (a cloud CRM platform) – Oct 12, 2020

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Customer Experience in 2021
Study by SuperOffice (a cloud CRM platform) – Oct 12, 2020

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Customer Experience in 2021
Study by SuperOffice (a cloud CRM platform) – Oct 12, 2020

• Mobile customer experience is priority

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Customer Experience in 2021
Study by SuperOffice (a cloud CRM platform) – Oct 12, 2020

• Customer frustration will lead to churn

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6 Trends in Customer Experience

1. Automated commerce (push of the button and voice)


• Digital convenience has now become the most natural thing in the world.
• New buying methods and models are here to stay
• E.g. Apple Watch & Healthcare / Alexa analyzes your sleep / face recognition instead of
badges / grocery purchase patterns / selfdriving taxis

2. From Customer Journey to Life Journey


• Brands are becoming partners in people’s life, and that goes beyond selling a
product and giving them a good service
• How to add value to society (People & Planet) and not only to the customer?
• E.g. Google, booking.com,

3. Branding is new religion | Power of ‘true’ brands


• Platforms and technology companies try to get in between companies and
customers. They will decide, through their data and algorythms, what they will
offer and show you.
• Brands have to reach out and speak out!

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6 Trends in Customer Experience

4. Companies must take bold and clear decisions


 People and consumers distrust companies, governments and content
(fake news, UGC, Reviews)
 Twitter adds fact-check warnings
 22 major companies in USA support #Blacklivesmatter (Shopify, Uber, Airbnb,
IBM, Microsoft, Salesforce…)

5. Ethical and societal marketing will become even more important


for brands and customers
 AI and data analytics can lead to abuse and information manipulation.
Societal and ethical marketing have a huge role to play.

6. End of the trade off. Consumer 4.0 wants it all!


 privacy vs. convenience
 what is good for me vs. what is good for the planet
 cheap prices vs. ethical products and work conditions

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Consumer 4.0 | Marketing to do’s

• More short term Higher flexibility than


• More unexpected ever before

Need for constant analysis and market research on

• Business & Portfolio Analysis (BCG-matrix, Product Life Cycle and others)
• Consumer Insights & Behaviour
• Competition Analysis (don’t forget the technology companies and platforms!)
• Competitive advantage & positioning
• The marketing mix composition

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Happy Employees = Happy Customers

• Happy employees with a great “employee experience” make


happy customers with a great “customer experience”.

• Employee 4.0 wants a company that makes him/her proud.


The same goes for Costumer 4.0.

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