Post-digital customers On my terms

Transcription

1 Post-digital customers On my terms Ben Skelton, Managing Partner

2 Post-digital customers 1. The post-digital customer landscape 2. A staggering rate of change 3. The implications for brands 2

3 1. The postdigital customer landscape The big shift in customer expectations, attitudes and behaviours caused by digital and more importantly, mobile connectivity - has already happened. This fundamental, irreversible change empowers customers; and has far-reaching implications for how brands operate, do business and make money. 3

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5 On my terms How customers engage with brands, across their: Behaviours Expectations Loyalty Attitudes With a mentality of: When I want Where I want How I want 5

6 Behaviours A heavy dependency on mobile. 66% The first thing I do when I wake up is look at my mobile phone 6 Amongst those who display the most extreme post-digital behaviours, expectations, loyalty and attitudes vs 34% av.

7 Behaviours Tackling poor service. 45% Use Facebook or Twitter to complain about brands 7 vs 25% av.

8 Behaviours The search for an easier life. 65% Use brands that simplify things 8 I very rarely now go into town. If I m going to order clothes, I do it online. I also do quite a lot of food shopping online. We have an Asda shop pretty much every week, which is just delivered to the door, just for ease, really. Shopping with two kids is not fun. vs 46% av.

9 Expectations An expectation of a tailored service. 63% Want a more personalised service online and offline 9 vs 44% av.

10 Attitudes Lower levels of tolerance. 58% Are impatient of brands and expect them to get it right 1 st time 10 Vodafone are the brand that has annoyed me the most. I can t even remember what happened, really, but I can remember being really, really angry, and there was nothing I could do about it. They put me in a box where I needed to pay this money, that I didn t agree with. vs 47% av.

11 Loyalty Hunt for value. 58% Switch brands to get a better deal I ve got reminders in my diary that will encourage me to go and change my house contents insurance and buildings insurance, my car insurance, my meter and I m doing that now on an annual basis, because I know I will lose out if I stay with the same company. 11 vs 39% av.

12 Loyalty Have lower levels of loyalty. 48% Switch brands to try something different 12 vs 23% av.

13 Behaviours Show ambivalence towards the high street. 35% See little point in high street stores 13 vs 11% av.

14 Attitudes Revel in the power of technology. 74% Technology has made my life easier 14 When I m using Ocado, it s really simple, I just hop onto my mobile phone, and there s a really easy app, and they save all your favourites. vs 41% av.

15 Attitudes Optimistic outlook. In the next 5 years, changes in digital technology and connectivity will have a positive impact on my. 53% Happiness 52% Health & Wellbeing 15 vs 22% av.

16 Attitudes Some wariness of the digital world remains. 31% The internet is not a trustworthy source of information 16 vs 17% av.

17 Attitudes Increasing awareness of the world of data in 5 Know something related to GDPR With Spotify and Netflix it just got to the point where we felt that they knew us too well. I d quite like to pick and choose exactly where and who has my data, and who s looking at my data. What I know is probably the tip of the iceberg. Seriously, like I m 35, and they have so much data on me.they probably know more about me than I do; my shopping habits, I like a certain cheese or I like a certain flavour crisp. 79% vs 58% av.

18 So, customers are becoming: Less tolerant More promiscuous More demanding But there is a positive side 18

19 They are also more connected to some brands than ever before. 19

20 Get it right, and there are huge opportunities. 20

21 Behaviours They love a great app. 68% Return to apps time after time 21 vs 39% av.

22 Behaviours And positively engage with brands they like. 72% Use loyalty schemes 38% Like sharing offers with friends 22 I always buy my clothes from Dorothy Perkins. Well, not always, but a lot of the time. So, I welcome any vouchers and things like that from them and I do get a lot. So actually, I think it s both ways. I purchase from them, and it s good for me because I use their 25%. vs 53% & 23% av.

23 Behaviours There is a downside for established players. 63% Comfortable using new mobile banks 23 vs 31% av.

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25 2. A staggering rate of change In 2016, we identified four core classification dimensions: 1. Mobile connectivity 2. Attitudes to Technology 3. Willingness to share data with brands 4. Perceived power in their relationships with brands This major quantitative study involved 5000 interviews. We recently repeated the study to map changes, and dig deeper into customer behaviours and attitudes towards brands. There has been a x3 increase in the most extreme group. 25

26 The big shifts : A greater sense of POWER. Higher expectations of getting something in return for their business Less tolerant of poor service Stronger feeling of control over brands because they can switch easily 26

27 The big shifts : A greater willingness in DATA. A greater willingness to provide extra information to brands to help them target them better 27

28 The big shifts : Only one of our measures has declined. Fewer people think that technology has made the world a better place 28

29 3. The implications for brands. Post-digital, the imperative for ambitious brands is to not so much listen to, but hear what matters to customers, who have mastered the triple-whammy of: Smartphones Social media And 24/7 connectivity Having now made digital integral to their routines, customers take it all for granted and have moved on. 29

30 Digital has empowered and changed customers. Put unprecedented power in customers hands Driven a deep, permanent rupture in customer behaviours, expectations, attitudes, and loyalty Raised the bar for brands proficiency online These changes the impact of which is still working through have profound implications for brands. 30

31 What this means for brands. Tech-based competitors are building direct relationships, as their agenda moves from disruption to displacement Brands can no longer get away with talking about, rather than being customerfocused Customers have little interest in brands listening : they want to be heard, and for brands to act on what they say 31

32 Three core challenges for brand decision-makers. Leverage digital s strengths Cut through the endless flow of customer info coming in Play into what matters to customers 32

33 quadrangle We are a customer consultancy. We help brands understand, and play into what matters to customers. 33 Quadrangle Research Group The Butlers Wharf Building 36 Shad Thames, London SE1 2YE quadrangle.com/hello +44 (0)