Decoding the New Consumer Mind

TNS Growth Through Consumer Insight SummitHelsinki 22.11.2013

Kit Yarrow, Ph.D.Consumer Psychologist, Professor, Author

kityarrow.com

How and Why We Shop and Buy

Kit Yarrow Phd

Key Slides:

#1 Technology

#3 IncreasedEmotionality

#2 Individualism1. Think Differently2. Symbolic Communication

3. Belief in Innovation 1. Empowerment2. Self Reliance

3. Yearning for Belonging

1. Wary and Guarded2. Option Overload

3. Conscious Consumption

Part 1: Socio-Cultural Shifts Behind The New Consumer Mind

#1 Technology

It’s not what we’re doing with it, it’s

what it’s doing to us

IWWIWWIWI

Impatience Anxiety InertiaExasperation

AnticipatedNeeds

Immediate Solutions Authority Inspiration

I want what I want when I want it

2013 Communication: Symbolism, Stories, Images, Experiences, Associations

#2 Individualism

#3 IncreasedEmotionality

SafetyControlPredictability

Money + Time + Support = Resources

Fewer Resources = More Stress

More Stress = More Emotionality in Decision Making

Kit’s Consumer Decision Equation

The “emotionally overloaded” shopper

Inertia

Complexity

Rationalization

Trusted Advisors & CuratorsIN

IN

IN“Gut” IN

OUT

Bargains are about more than money:

Pare DownChoices

Rationalize

ValueAssurance

NotMissing

Out

Part 2: Six Recommended Strategic Shifts

1. Involve Them2. Ramp it Up3. Get Real

4. Go Visual over Verbal5. De-Silo

6. “Technovate”

1. Involve Them With the 4 C’s

ChampionsCustomization, Co-Creation

Crowdsourcing, CrowdfundingContests

2. Ramp it Up to Get Noticed and Inspire Action

+ MarketingBreak Through Intensity

Faster & More Responsive

3. Get Real

Honor Your WordBe Transparent

Showcase HumanityAvoid Corporate-Speak

4. Emphasize Visuals over Verbals

Consider the “Rub-Off ”Be Ubiquitous

Replace Words with SymbolsBe Intuitively Understood

5. De-Silo (Omni-Channel)

Don’t Compete - IntegrateLearn and Leverage from Both Worlds

6. Technovate

Innovate to Stay RelevantIncorporate Technology Everywhere

Refresh Messages & Offerings More Frequently