European Head of Customer InsightsCustomer Insights · • We are making it very difficult to shop...
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Transcript of European Head of Customer InsightsCustomer Insights · • We are making it very difficult to shop...
Influencing the shopper decision and ti th t ti l h iconverting the potential purchaser in
toughening economic conditions
Mark GurneyEuropean Head of Customer InsightsEuropean Head of Customer Insights
William UllsteinGroup Business Development Director
Influencing the shopper decision & converting potential purchasers in toughening economic conditionsg gMark GurneyEuropean Head of Customer Insights
The consumer electronics market is suffering
• Manufacturers struggling for profit
• Retailers in survival mode
• Aggressive price led messaging• Aggressive price led messaging
• Market value and volume decline
• Confused consumers
What’s important to overcome these h llchallenges
• Which are the key touchpoints that consumers use?
• Just how important is the internet and how is it used?Just how important is the internet and how is it used?
• Where should we prioritise our marketing investment?
• What triggers a consumer to buy?
• How do we increase conversion?How do we increase conversion?
• How do we improve our messaging?
We needed to better understand the shopping journey and how to enhance
the experience for consumers in order to the experience for consumers in order to overcome barriers for conversion and
increase valueincrease value
12
A comprehensive research programmeA comprehensive research programme
Understanding the purchase journey
In store L it di l QualitativeIn-store Longitudinal Qualitative
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The market is increasingly complicated for customersOur respondents alone interacted with over 22,000 touch points in just 3 months!Our respondents alone interacted with over 22,000 touch points in just 3 months!
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Long Purchase Journey – 10 weeks, 49 touchpointstouchpoints
Week 10 Bought a 50” + Samsung from Comet
“Seen a tv I like, just waiting now to go in store to buy or online so
• 10 weeks and 49 touchpoints
• 3 key stages:
looking at best price now”
“G i i t t d l ith th • Narrowing• Short list• Deal Hunting
“Going into stores and play with the tv's”
“Looking on the Internet is good as it's quicker by comparing all the
tv's, but the best thing I did was go to a few stores and see them as
you can't always be certain online”
Week 0 I want a bigger TVWeek 0 I want a bigger TV
Every journey is different with a range of
Store visits Written info Amazon Retailer websites Manufacturer websites
touchpoints
Price comparison sites Blogs / forums Social media Friends & family recommendations
Average number of touchpoints = 14
The majority of purchases are made in store
50% 79% buy 73% 7%
start online
79% buy in storeresearch
online
7% online only
online
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Although no journeys are identical there are key themes confusion and conflicting advice
Journey Start
themes – confusion and conflicting advice
Price Comparison
Sites
29%
Store Visits
57%
ManufacturerWebsite29%
57%
S i l Retailer
WrittenInformation
30% Social Networks
2%
Retailer Website
55%BlogsForums
9%
30%
Journey Start
Adverts46% Friends &
Family
36%
Journey Start
PURCHASE27%
GIVE UPPURCHASE
Journey Start GIVE UP
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Consumers feel confused when shopping for Consumer Electronics and gain a sense of relief once completedElectronics and gain a sense of relief once completed
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The current store environment is failingg
Overwhelmed by tech jargonOverwhelmed by tech jargon 75% fail to demo a product75% fail to demo a product
Unable to compare easilyUnable to compare easily
Too much choiceToo much choice
Only 20% who came to make a purchaseOnly 20% who came to make a purchase
50% will not go back to that store50% will not go back to that storeToo much choiceToo much choice
Concerns about future proofingConcerns about future proofing
50% will not go back to that store50% will not go back to that store
70% find online more useful than store70% find online more useful than storeConcerns about future proofingConcerns about future proofing
Source: Future Thinking Research, Jan 2011
70% find online more useful than store70% find online more useful than store
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Complexity and confusion leads to more than 1 in 4 people giving up without buyingin 4 people giving up without buying...
££2bn 2bn lllost lost
sales?sales?sales?sales?
TV Buyers
• People looking for bigger / slimmer TV with better picture quality
• We talk tech consumers talk need the classic salesman’s trap of • We talk tech – consumers talk need – the classic salesman s trap of talking features NOT benefits
• When presented with clear benefit and compelling content, demand is there e g Catch up TV = iPlayeris there e.g. Catch up TV = iPlayer
Key messages
• Use the power of reviews
• Enhance store environment
• Improve messaging and its consistency
• Focus on key drivers to purchase and consumer benefitsFocus on key drivers to purchase and consumer benefits
The key stories for Sony
• We are making it very difficult to shop for electronics
• We are not communicating the benefits effectively
• The importance of touch points varies massively
• Consistency in multi channel is key
• The store is still king despite the growth in online
• The power of reviews can not be underestimated
Improve & reward the in-store experience
Reward retailers who best demonstrate Sony y
Branded areas to showcase products and latest technology
Simpler messaging backed up by reviews
Latest HX8 TV focused on picture quality and design
Utilised expert and consumer reviews to build trust
Summary• No miracle cure for driving consumer spend
• We better understand where the consumer shops
• We have simplified our messaging
• We have avoided price led promotions
• We are selling more higher end products
• Seeing improved profit