The new consumer journey demands greater flexibility MaxPoint Interactive, Inc.
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1 4 The new consumer journey demands greater flexibility 35
2 4 The new consumer journey demands greater flexibility The new consumer mobility has dramatically changed the consumer journey to purchase. The entire journey from awareness to consideration to purchase can now happen in a digital second or it can require multiple online and offline touchpoints to achieve conversion. These changes require that shopper marketers incorporate mobile insights and expectations into all of their efforts. 36
3 4 Setting the Stage Consumer Journey The new consumer mobility has dramatically changed the consumer journey to purchase There are now many new marketing touchpoints and consumer options for researching and purchasing products, all of which a consumer may experience in virtually any order, at any time, in any place. These changes have given rise to three new imperatives for shopper marketers: customer mobile interactions that meet expectations Organize for speed and flexibility so you 2. Design 3. for a flexible, friction-free, and personalized experience. can quickly respond to new opportunities. mobile insights into every 1. Incorporate stage of the customer journey. Videos and e-commerce are two growing influences, and digital advertising remains important. There are some new items to put on your checklist when evaluating the design of mobile customer experiences. For example, use conditional and dynamic ad campaigns to beat competitors to real-time consumer needs. Touchpoints Along the Consumer Journey Brand Website Rapid Reorder Promotion App Scheduled Replenishment User Reviews Interactive Ads Physical Store 37 Retailer Website Social Media Brand Website Retailer App Digital Coupon
4 4 Consumer Journey Setting the Stage Pre-shop product research behavior has changed significantly Mobile devices have taken the lead over desktop devices for pre-purchase research. * In 2013, 49% of consumers said they preferred a desktop device for preshopping. In 2015, preference had shifted to mobile: 44% of consumers preferred mobile while 43% preferred desktop. 1 Google has reported that more than half of all US Google searches now happen on mobile devices. 2 E-commerce sites are increasingly favored over search engines as the place for product research. A 2015 survey by BloomReach asked US consumers where they start product searches and learned that 44% start on Amazon, while 34% start on a search engine, and 21% use another retailer site. 3 While 90% of shoppers still complete their purchase offline, e-commerce sites are increasingly the source of product ideas, specific item details, price checks, peer reviews, and other information used to build shopping lists xad, Google, May BloomReach, October *Mobile = smartphone + tablet
5 4 Consumer Journey Setting the Stage Digital advertising remains an important part of the new consumer journey Some common ways of influencing consumer purchase decisions are becoming less effective: Automatic replenishment is reducing opportunities to influence consumers at the point of purchase. Whether you call it convenience commerce, programmatic purchasing, or subscription replenishment, consumers are rapidly adopting the habit of setting up automatic shipments of daily-use products like pet food and vitamins. Digital advertising remains an important tool for shopper marketers because it can reach high-potential shoppers at scale around specific stores and drive incremental foot traffic and sales at those stores. While many item-level purchase decisions are made in the store, it s also true that 72% of category-level purchases are on the shopper s list before they head to the store. 2 Digital ads are an effective way to reach consumers pre-shop, when they re making lists and deciding what store to go to. Shifting product research habits are reducing opportunities for searchbased marketing. The latest research indicates that 44% of consumers now start their product searches on Amazon, with just 34% starting on search engines Need Recognition Pre-Shop 1. BloomReach, October Nielsen, Shop Usage Experience
6 Consumer Journey Mobile Throughout 4 Shoppers have become more comfortable making purchase decisions on their mobile devices Give your shoppers everything they need to make a purchase decision in the mobile context. Consumers are now using smartphones for complete product research up to and even including the purchase transaction. Though the vast majority of CPG purchases still happen in-store, consumers nonetheless expect to be able to complete a purchase on their phone. So give them full functionality in your mobile ads and landing pages so they can quickly and easily: Zoom in on product images The ad opens the door, but the landing page closes the deal. Percentage of consumers who pre-shopped on a mobile device before purchasing 1 Percentage of those pre-shoppers who made their final purchase on a mobile device 1 Research product details Comparison shop your portfolio Check consumer ratings and reviews View how-to videos 34% 54% 23% 35% Use their favorite e-shopping tools (e.g., deal apps and payment systems) Share via their favorite social media tools NinthDecimal, May *Mobile = smartphone + tablet These figures are not specific to CPG products. Mobile* Desktop
7 4 Consumer Journey Mobile Throughout Mobile video is increasingly important in the consumer journey, both for general viewing comscore reports an explosion in mobile YouTube usage. Time spent in the YouTube app on smartphones more than doubled from June 2014 to June 2015, rising from a per-visitor average of 4 hours to 9 hours per month. 1 56% of the US adult smartphone audience used YouTube s mobile app in June 2015, up 18% from the prior year. 1 By 2017, emarketer expects mobile video consumption time to be twice that of desktop comscore, June emarketer, May 2016.
8 Consumer Journey Mobile Throughout 4 And for paid advertising Take advantage of the video trend while it s hot. According to the IAB s third annual Video Ad Spend Study, 72% of media buyers said they plan to shift funds from TV to digital video advertising. 1 Advertisers are jumping into video advertising because click-through rates average five to ten times higher for video ads than for static banner ads. A 2015 Innovid study reports CTR benchmarks of 0.8% for passive pre-roll ads (forced viewing before a user-selected video plays) and 1.2% for interactive ads (users can chose to play video when given the option). As with static banner ads, video ads experience higher CTR on mobile devices than on desktops. 2 Videos (typically 15 seconds or less) allow for presentation of a longer message than will fit in a typical banner ad frame. Marketers more than doubled their spending on digital video ads from 2013 to Digital Video Ad Spending 3 Spending on mobile video is growing faster, but desktop is projected to retain a bigger share of video advertising at least through $9.6B $14.8B 46% $3.8B 19% 81% 43% 57% 54% IAB, May Innovid, July emarketer, March *Mobile = smartphone + tablet Mobile* Desktop
9 Consumer Journey Mobile Design 4 The new consumer mobility involves a more flexible consumer journey Design digital experiences with maximum flexibility to accommodate consumers on whatever path to purchase they choose. Rather than designing a single ad with a single option for consumer response, give the consumer flexible options. Instead of a single banner ad: New product ad campaign 43 Consider a carousel or filmstrip ad format with multiple panes Build a series of ads that can be varied based on context or delivered in a specific sequence Ad with link to online retailer site morning afternoon evening late night Ad with link to digital coupon app Instead of a single option for response, let consumers choose what they want to do next: Learn more about the product, including videos and user reviews Access deals through retailer, coupon, or rebate apps Find a place to purchase online or offline Share on social media Ad with link to rebate app Ad with link to brand site Ad with link to retailer app Remember that while they may both be in the target market for your product, the ideal advertisable moment or in-ad offer for Suburban Family mom Ali may not be ideal for Career Professional Jae. The more options you provide, the better your chance of conversion.
10 Consumer Journey Mobile Design 4 The new consumer mobility has more friction due to shorter sessions, smaller devices, and more interruptions Reduce unnecessary friction in digital experiences by designing to mobile first requirements. New Challenges New Requirements 72 sec 150 sec Mobile * Desktop Shorter sessions 1 Ensure rapid loading of both ads and landing pages Provide the ability to complete a task on one screen Slower data entry More touch/click errors Smaller screens and keyboards Leverage phone features like camera, location, contacts, etc., to minimize typing Design to avoid accidental, time-wasting misclicks (e.g., offer auto-zoom and undo options) Less stable connectivity Give location and contact info high priority 44 More find something near me right now situations 42% of consumers will, on an almost daily basis, start an activity on one device and finish on another 2 On-the-go issues 1. Nielsen Norman Group, April Yahoo, January *Mobile = smartphone + tablet Provide options to finish a task later (possibly on a different device), such as pinning a recipe or requesting an or text reminder
11 Consumer Journey Mobile Design 4 Mobile devices are highly personal Design digital experiences that are context-aware in order to make them feel more personalized and relevant to your target. Mobile devices are highly personal: they re in the palm of your hand 100+ times a day, and they tell you the time, weather, directions, and what your friends are doing. Thus, it s only natural that consumers expect ads to be as context-aware and relevant as their mobile apps are. You can use any aspect of context for personalization: location, day/time, weather, and so on. Here are just a few examples: Localize ad headlines This can be as simple as changing an ad s headline from a generic Conquer the Mountains to a localized Conquer the Rockies in Colorado and Conquer the Cascades in Washington. Eliminate a Step in Store Finding Provide a Carousel of Options for Different Tastes Localize featured products Just by knowing someone s location, you can know which products they re more likely to be interested in. Campaigns can be easily programmed to show different product options to consumers by location. Localize Featured Products & Prices Whitening Toothpaste for Young Singles Neighborhood Plaque-Fighting Mouthwash for Families Neighborhood 45
12 4 Consumer Journey Mobile Design Mobile apps have created higher expectations for visual experiences Strive for visuals that differentiate and spur emotional engagement. Increased usage of highly visual apps like YouTube (+16%), Instagram (+35%), and Pinterest (+66%) along with major advances in smartphone screen quality have contributed to rising demand for high-quality visuals. 1 Remember, too, that consumers can easily become hardened to the same old, same old ads. The brain needs contrast to react. Look for creative ways to deliver the three elements of digital ads that have proven effective in driving incremental sales: What to buy Feature a large, readable image of the product package, or, for a very well-known brand, just the logo can be sufficient. Why to buy now Clearly state a benefit that the consumer can experience immediately, preferably one that engages the emotions. If the benefit is cost savings, state the actual dollar savings rather than just get coupon. Tying in a cartoon character or targeting a serious consumer need are two ways to achieve visual differentiation. Where to buy Include a retailer s name, specific location, a reason to visit on a specific date (e.g., in-store demo), a link to find a location, or a spot to enter your zip code right in the ad comscore, June 2015.
13 Consumer Journey Speed 4 In the new consumer mobility, it s survival of the quickest Organize for speed and flexibility so you can quickly respond to new opportunities to be contextually relevant. Learn how to set up campaigns that trigger ads to run in real-time response to local conditions, such as weather forecasts or pollen counts. Explore the use of dynamic ad formats that change automatically with conditions. 47
14 4 Consumer Journey Summary The new consumer journey demands greater flexibility The consumer journey from awareness to consideration to purchase can now happen in a digital second or it can require multiple online and offline touchpoints to achieve conversion. Recommendations Incorporate the latest mobile activities and insights into every stage of the customer journey. Videos and e-commerce are two growing influences. Design customer experiences for new mobile expectations: flexibility, freedom from friction, and personalization. There are some new items to put on your checklist when evaluating the design of mobile customer experiences. 48 Organize for speed and flexibility so you can quickly deliver relevant messages when new opportunities arise. For example, use conditional and dynamic ad campaigns to beat competitors to real-time consumer needs.
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