Winning in Today’s Market and Beyond€¦ · POST‐DEMOGRAPHIC IMPERATIVES (A Mega‐Trend...

Know Your Customer and Build an UNSTOPPABLE Trend Culture

WINNING In Today’s Market and Beyond

Professional Courtesy…PERFORMANCE CONCEPTS HAS INVESTED A SIGNIFICANT AMOUNT OF TIME AND EFFORT INTO THE DEVELOPMENT OF THE INFORMATION INCLUDED HEREIN. IT IS OUR BELIEF THAT OUR IDEAS ARE CREATIVE AND UNIQUE IN THEIR CONTENT, AND AS SUCH REPRESENT AN INTELLECTUAL PRODUCT THAT IS ESSENTIAL TO OUR BUSINESS SUCCESS. WE THEREFORE CONSIDER THESE MATERIALS TO CONSTITUTE CONFIDENTIAL TRADE INFORMATION, ON LOAN TO YOU FOR YOUR EXCLUSIVE, INTERNAL USE, WITH THE UNDERSTANDING AND ACCEPTANCE OF THEIR PROPRIETARY NATURE. WE TRUST THAT THIS MATERIAL WILL BE HANDLED IN ACCORDANCE WITH COPYRIGHT AND TRADEMARK LAWS AND APPROPRIATE PROFESSIONAL PRACTICES.NO PORTION OF THE MATERIAL CONTAINED HEREIN MAY BE RE‐USED OR DISTRIBUTED, IN WHOLE OR IN PART, OUTSIDE OF THE BUSINESS TO WHOM THIS FILE WAS SENT WITHOUT THE EXPRESSED WRITTEN CONSENT OF PERFORMANCE CONCEPTS, INC..THANK YOU!

©2017 PERFORMANCE CONCEPTS, INC.

By 2020 in the US…

• The median age will be 37.8• 24%of our 330 million population will bebetween the ages of 20 and 34

• 51% of the population will be women• 16.2% will be multi‐race/culture• 32% of households will be earning over$150,000 per year

• and…


OVER $16.1 BILLION

All together, we'll be spending

On fine jewelry and watches


ARE YOU READY?

• Dramatic shifts– Expectations

• Service• Corporate Responsibility

• Drastic adaptations– Communication– Processes– Policies/Procedures


POST‐DEMOGRAPHIC IMPERATIVES(A Mega‐Trend we’ll discuss later!)

• The era in which we live now – beyond traditional ways of looking at consumers

• 5 generations of consumers in the market!• Three strands of current consumer behavior that demand you take action:– The rapid embrace of new technologies, rampant global urbanization and the expectation that everyone should be empowered to live the way they want – and to buy what is important to THEM – for their reasons

• SO…


3 Things You Must Do NOW…

1. Know your customer (no… REALLY !)

2. Understand trends and how they apply to your business

3. Build a forward‐focused, winning culture


KNOW YOUR CUSTOMER1.


Consumer Demographics

• “People – of all ages and in all markets – areconstructing their own identities more freelythan ever. As a result, consumption patternsare no longer defined by ‘traditional’demographic segments such as age, gender,location, income, family status and more”Trendwatching.com


Strategy…• Demographic Analysis – NOT like it used to be!

– Use zip codes of existing customers todefine the population

– Look carefully at projections for trends• Age• Income• ‘Eligible for marriage’• Spending habits (jewelry, watches, gifts)• Market size (households X spending)• Market share (what do you need to keep up?)


LIFEISGOOD JEWELERS

Western US2016 = $3.86 Million volume


AGE


Households By Income


2000

MarriedDivorcedWidowedNever Married

2010

2015 2020

Eligible ForMarriage


Market SizeJewelry ‐Watches

Millions


Market SHARE

10.87% 11.56%

3.86M 4.93M0

5

10

15

20

25

30

35

40

45

2016 2020

Assuming 5% increase in store sales year to year


WHAT DO YOU REALLY KNOW?YES, all of that is important – but…


Lifestyle Data – Mosaic Profiles

• A Classification system that paints a rich picture of US consumers in terms of– Sociodemographics– Lifestyles– Behaviors– Culture

• Provides a comprehensive view of customers, prospects and markets


Mosaic Groups & Segments• Household‐based consumer lifestyle segmentation system

• Classifies all U.S. households and neighborhoods into 71 unique descriptive segments organized into 19 overarching groups based on similar income, buying habits, age household composition and life events

• Mosaic uses more than 300 data factors to classify American households and to accurately assign individual households to specific groups.


LIFEISGOOD Jewelers

• Over 50% of the customer base comes from 4 groups:– Group H ‘Progressive Potpourri’– Group B ‘Cosmopolitan Achievers’– Group I ‘Steadfast Conventionalists’– Group C ‘Silver Sophisticates’

• GOAL: Look for commonalities among groups


LIFEISGOOD Jewelers

• General commonalities among ‘Progressive Potpourri’, ‘Cosmopolitan Achievers’, ‘Steadfast Conventionalists’ and ‘Silver Sophisticates’:– Immigrant families – striving for success– Budget necessities, enjoy luxuries– Brand loyal– Disposable income, but debt‐resistant– Traditional media responsive– Internet savvy


STRATEGY…• Use available information to identify and understand your customer base. – Review current operations to optimize offerings and experience

– Look for like clusters segments and groups– Careful analysis of people who live within a defined radius of your store• How does the data compare to your current client base?

• Who are you missing?• What can you do to get them?


UNDERSTAND CONSUMER TRENDS2.


What is a Consumer Trend?

• A consumer trend is a new manifestation among consumers – in behavior, attitude, or expectation – of a fundamental human need, want or desire

• Trends apply in different ways across broad ranges of consumer segments and groups


Understanding Trends• Trends emerge when market innovators address evolving basic needs and wants in novel ways

• Look for innovations that are (re)defining what your customers will want and expect


WHY Do Customers Buy?

These 3 elements combine to

create TRENDS in the market

Emotional drives create basic needs in the luxury consumer

These needs create shifts in our industry and in our markets

Successful businesses innovate and evolve to meet shifting needs


Trends and Luxury

• Affluence X Connectivity changes everything!– Rising affluence and the lifestyles made possible by connectivity have shifted the frontiers of luxury

– Epic shift towards more varied, complex, individualized, and meaningful forms of luxury consumption

– Fundamental truth: • At its heart, luxury has always been about STATUS


Trends and Luxury• Status

– Used to be ‘physical’ ‐ about thepossession of certain objects

– Has now become ‘intangible’ ‐ lessabout 'what I have' and much moreabout 'who I am': more ethical, creative,connected, tasteful – than the masses.

• Creates significant OPPORTUNITIES for brands thatunderstand and deliver on the new luxury mindset.


TREND FRAMEWORK: MEGA TRENDS THAT WILL INFLUENCE AND DRIVEThe Luxury Consumer in 2017 and Beyond


MICRO‐TREND EXAMPLESNew Global Citizens – Nation Nurturers


New Global Citizens – Nation Nurturers(Combining luxury with a drive to make the world better)

• In 2017, millions of consumers will continue to wrestle with an issue that has continued to grow over the last 12 months: the economic, social and cultural impacts of their own lifestyle choices

• Many will turn inward towards their own local area• This creates two opportunities:

– serve the NEW GLOBAL CITIZENS – Cater to the NATION NURTURERS



• Your Customer…– Ethics‐based purchasers– Need to feel good about theluxury they want

–Want to buy products that align with their ethical standardsfrom businesses who share their values


• What it Means For You:– Value Includes compatibilitywith personal ideals and ethical sensibilities

– Know the facts, dial in on value triggers and handle client questions with regard to global impact directly and clearly

– Align with positive action industry organizations



• What it Means For You:– BE the hometown business – and make that identity a legitimate part of your brand• Creating local jobs• Contributing to local causes• Supporting other local businesses

– The STORY matters!



MICRO‐TREND EXAMPLEThe Quintessential Self


The Quintessential Self(Because my self‐actualization is smarter, faster and more exclusive than yours!)

• The quest for self‐actualization should never mean compromising on self‐indulgence.– And if the results make for shareable content – ('I'm doing this, you probably haven't heard of it yet‘) – then all the better!

– It’s all about PERSONAL, INDIVIDUAL and UNIQUE

– It’s all about telling the STORY!


• Your Customer– Luxury consumers will seek out exciting and storied products and experiences that supercharge their sense of self

– Expectations equate the value of the product with the quality of the experience and the personal relevance of the story

– Lifestyle transcends income!



• What It Means for You:– Successful businesses will let go of pre‐conceived ideas of who their customers really are and will start looking for ways to deliver a more personal, more captivating experience

– Marketing initiatives should take into consideration overall lifestyle profiles – well beyond traditional demographic bands

– Understand YOUR customer and look for ways to make your brand unique, responsive and ‘exclusive’ across price ranges and categories



• An Example (and a minor diversion… ) – Consumer spending on pets has risen 25 percent over the past five years and likely will continue to rise • Urban couples are opting to get animals as they wait longer to have children (Consider new, newly popular and crazy expensive breeds!)

• More pet owners are thinking of their pets as family.

– Retailers who appeal to animal‐loving consumers have seen significant benefit



BUILD A FORWARD‐FACING, WINING CULTURE

3.


Trends, Culture and Innovation

• Businesses win when they identify where consumer expectations are heading next – and innovate to meet those emerging expectations consistently

• That takes more than an individual: it takes a trend‐driven culture.


Trends, Culture and Innovation

• Successful organizations don’t win by spotting a single trend, no matter how big or game changing

• Long term success comes from recognizing and acting on multiple trends as they arise

• You will win if you and your team can sense and respond to shifts in your customers’ expectations on an ongoing basis.


Trends, Culture and Innovation• To stay ahead of accelerating customer expectations, everyone in your organization must be: – empathetic to people’s needs– alert to moments of tension – aware of the opportunities that come from resolving them.

• Unmet expectations lie beneath people’s statements of frustration with the products they use on a daily basis: – ‘I can’t understand why…?’ – ‘why can’t I...?’


Be At The Forefront!• Market leaders are TREND SETTERS, not trend followers

• To be a trend setter, you need people who are– Intuitive– Sensitive– Aware– Committed

• You need a forward focused CULTURE that nurtures the right people and that will evolve with your customers and your market


Build the culture

• Inspire • Inform • Collaborate • Train • Empower


INSPIRE• TALK to your associates!

– Daily (individuals) and weekly (team)– Set your agenda, reinforce your standards and support your values

– Encourage innovation and action– Challenge everyone to be a part of your ‘business DNA’ • To observe, suggest, innovate and take responsibility for results


INFORM

• Customer focused cultures continually monitor the direction in which customer expectations are heading.

• Stay on top of customer trends (inside and outside of our industry) and make people aware of them!– You’ll inspire a culture in which people actually think about this stuff and look for new opportunities to delight your customers!


COLLABORATE

• Many minds make light work!– Be genuine in asking for input

• Don’t just share information. Share ideas about how to ACT on the information within your business– Varied perspectives increase the potential for success in developing innovative ideas.


TRAIN

• Your team won’t become expert at recognizing and acting on shifts in customer demands overnight– It takes time, commitment and training to insure that an innovation‐based culture takes root

• Providing opportunity for training underscores priority– Growth is a great staff retention tool!


EMPOWER

• Inspiration, information, collaboration and training are useless if people are not empowered to use what they learn and build innovative solutions themselves.

• Consider initiating competitions that ask associates to propose, pitch and ultimately launch new service innovations in your business– Benefits: Focus, enthusiasm, sense of recognition, engagement and diverse perspectives on new opportunities


Build the Culture

• By starting the discussion:– Top‐down: from your company mission statement, strategy or market objective

– Bottom‐up: analyze recent innovations in the industry, and analyze the consumer needs/trends they serve

– Outside‐in: present snapshots of other industries or markets in order to provoke new perspectives.


READY?ARE YOU


Now, DO SOMETHING!• Trends give us a quick look

at how the consumer landscape will look in 2017 and beyond.

• Take these insights as the launch‐pad for a discussion with your team.

• How can you adapt these trends to serve your clients better?


REMEMBER…

• It’s All About Actionable Opportunity – Information is power. Learn about your customers and make the lesson work for you!

– Trends aren’t really the point – opportunities are. How can you be at the forefront of emerging trends for YOUR customers?


148 Applegrove #5. | N. Canton, OH 44720P. 330.492.1100

www.performanceconcepts.net

Please stop by The Loupe

any time during the show for more information!


For More Information…

DIRECT9628 Whetstone Drive Montgomery Village, MD 20886 (240) 683‐0224 Office(240) 731‐1471 [email protected]

BUSINESS OFFICE148 Applegrove #5N. Canton, OH 44720(330) 492‐1100 [email protected]


Winning in Today’s

Market and Beyond

Know Your Customer and Build an UNSTOPPABLE Trend Culture


Winning in Today’s Market and Beyond€¦ · POST‐DEMOGRAPHIC IMPERATIVES (A Mega‐Trend...

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Transcript of Winning in Today’s Market and Beyond€¦ · POST‐DEMOGRAPHIC IMPERATIVES (A Mega‐Trend...