Tutorial on the McKinsey/Harvard "Customer Decision Journey" by John Sing

© 2014 John Sing – All Rights Reserved

The 2015+ “Digital Customer Journey”

For your Business and Career

John Sing, Director of Technology

John Sing, [email protected]


2014 – The New Customer Journey

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What’s Inside: New business reality:

“Digital Customer Journey” Mapping the

2014+ customer journey

Applying it to our business models Understanding

what’s changed 2014+ customer buying behavior



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A long time ago, there were fewer choices…..



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The 2014 customer’s problem: (too) many choices!

http://digitalvideospace.blogspot.com/2012/11/the-coming-battle-for-second-screen.html



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Meanwhile, regarding our business models…..

McKinsey Marketing and Saleshttp://media-cache-ec0.pinimg.com/originals/ab/57/f0/ab57f0388e175b0b0f3150a5538f3cbb.jpg



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Today’s evaluation phase research shows: > 60% consulted

others

> 60% consulted

others

< 9% from advertising< 9% from advertisinghttp://www.pinterest.com/pin/94083079686991394/



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> 50% of all internet access via mobile



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The “Showrooming” effect (auto dealer example):

http://marketingland.com/report-6-71748



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“Showrooming:” Amazon impact physical store retailers:

https://www.placed.com/resources/case-studies-and-white-papers

Top retailers where

customer purchased online on

Amazon…

After or while seeing item in

their retail store



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Today’s customer views your brand in fundamentally different way

Promiscuous in brand relationships – 10s/100s

Magnified by mobile-enabled instant internet-scale searching

Creates constantly shifting, expanding array of options

After purchase, customers aggressively engaged with social media, public reviews, complaints

In real-time, customers collaborate / condemn, depending on their experience, at internet scale and speed

Learning points for today’s customer



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Thus, we have 2014+ Business Model challenge…..



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But all is not lost! Even if this is your current state:

http://www.mckinseyonmarketingandsales.com/the-funnel-is-dead-long-live-consumer-decision-journey

Percentage of companies that admit they havelimited to no understanding

on how their customers interactwith them digitally



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How we used to attract customers = “The Funnel”:Initial

choicesInitial

choices

Whittle down to final buy

Whittle down to final buy

Prior to 2009:



14http://industriamusical.es/8-casos-de-exito-de-artistas-a-traves-del-social-media/

VS.

Before vs. Today:



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Could it be… there might be a new buying model?

Prior to 2009: “The Funnel”

Since 2009: “Customer Decision Journey”



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“The Customer Decision Journey”

Goal: Cut through the noise. Create “The Loyalty Loop”

In 2009, a “new journey”was first identified:



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“Customer Decision Journey”:

2. Evaluate2. Evaluate

3. Buy3. Buy

4. Enjoy, Advocate,

Bond

4. Enjoy, Advocate,

Bond

1. Consider1. Consider

Loyalty Loop

Let’ssummarize this model:

And it’s6-yearjourney

Four “battlegrounds”



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1. Consider 1. The customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points



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1. The customer considers an initial set of brands, based on brand perceptions and exposure to recent touch points

1. Consider



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2. Evaluate

Customers add or subtract brands as they evaluate what they want

2/3 of interactions are “pulled” by customer from “earned social media”2/3 of interactions are “pulled” by customer from “earned social media”

Highly cross-channel journeyHighly cross-channel journey



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3. Buy

40% of customers change their minds at this point

Thus these are important:

- In-store experience ( physical or virtual )- Salesperson knowledge / approach- Merchandising, packaging, visual- Comparison shopping- Price check, etc.

Only stage where discount coupons are effective

Only stage where discount coupons are effective



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4. Enjoy / Advocate / Bond: “Loyalty Loop”

After purchase, customers remain aggressively engaged, publically promoting / assailing, collaborating / crowdsourcing your brand’s development, challenging / shaping your brand’s meaning in marketplace.

Loyalty Loop



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Loyalty Loop

Quiz: “Customer Decision Journey”: four stages


3. Buy3. Buy4. Enjoy,

Advocate, Bond4. Enjoy,

Advocate, Bond


Initial consideration set

Based on branding

Add / subtract choices

2/3 of interactions based on “PULL”

Earned social media

40% change mind

“In-store” experiencePackaging, visual

Comparison / price check

Word of mouthReviewsCrowdsourcingActive loyalists



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1st step: understand our ”Digital Customer Journey”

Loyalty Loop


3. Buy3. Buy

4. Enjoy, Advocate,

Bond

4. Enjoy, Advocate,

Bond




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http://franksdesigns.com

For designing some of the key graphics:



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1. June 2009: McKinsey publishes the initial “consumer decision journey” paper:http://www.mckinsey.com/insights/marketing_sales/the_consumer_decision_journey

2. December 2010: Harvard Business School publishes “Branding in the Digital Age – You’re Spending Your (2010 Marketing) Money In All the Wrong Places”:

http://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-all-the-wrong-places/ar/1

3. Above evoked industry-wide discussions, prompting this 2012 B2B follow-on: “Aligning with Consumer Decision Journey”: http://hbr.org/web/ideas-in-practice/aligning-with-the-consumer-decision-journey

4. By April 2013, dynamic content management becomes the norm in digital marketing: http://www.mckinsey.com/insights/marketing_sales/the_coming_era_of_on-demand_marketing

5. By May / June 2014, the best practices for Reinventing IT to support digitized customer journey had become clear: http://www.mckinsey.com/insights/business_technology/reinventing_it_to_support_digitization and http://www.mckinsey.com/insights/marketing_sales/digitizing_the_consumer_decision_journey

6. All of this has evolved into a strong body of research, here’s the McKinsey free online versions: http://www.mckinsey.com/client_service/marketing_and_sales/latest_thinking/customer_decision_journeyAlso do search on “David Edelman”, author of papers #2 and #3 above.

Notes – Where did this all come from



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1. People experience a brand in many ways other than purchase and usage of a product. Be aware of that no longer only customers that advocate / denigrate a product. Advocacy therefore is all through the cycle, not just after buying the product (May 2014) :

http://blogs.hbr.org/2014/05/marketing-can-no-longer-rely-on-the-funnel/

Counterpoints / enhancements / clarifications to CDJ:



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John Sing 32 years of experience in enterprise servers, storage, and software

– 2014: Director of Technology, 4cube – Infrastructure for Tomorrow

– 2009 – 2014: IBM Executive IT Consultant: IT Strategy and Planning, Enterprise Large Scale Storage, Internet Scale Workloads and Data Center Design, Big Data Analytics, Cloud Infrastructures, High Availability, Disaster Recovery

– 2002-2008: IBM IT Data Center Strategy, Large Scale Systems, Business Continuity, HA/DR/BC, IBM Storage

– Previous experience 1990s: Enterprise Storage Server Marketing Manager, Planner. International experience in Europe, Asia, IBM Hong Kong, IBM China, Systems Center, Specialist

[email protected] or [email protected]

@john_sing

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