New purchase behaviours

Purchase behaviour 2015

Purchase behaviour in 2015

Group 3March 28th

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UNDERSTAND AND ADAPT TO IT


Chapters

Introduction P 3

Reasons P 5

Consequences P 8

Adapted answers P 13

UAE specificities P 24

Conclusion P 31

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Introduction Globalization and a worldwide crisis has brought apparent

transformations in purchase behaviour Shifts in market trends due to a fast changing

customer : marketers, Brands and retailers have to update their strategies Companies are dependent on the economic trends,

politics and sharehorlders but now there is somebody much more powerfull, who can fire everybody, from the employee to the CEO in a few weeks...

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Introduction

He has survived an economic crisis, he is coming back, stronger, faster and smarter…

the CONSUMER 3.0 !!

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The consumer

Before

Now

The « consum’actor » is born (or ethic consumer)

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Reasons

Social evolution from « Cocos » to « Momos »

Media evolution one media completely changed the relationship between companies and customers

It created the « LATERAL POWER » « Purchasing is voting »

INTERNET

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Reasons A real social and psychological need

« I share therefore I am »

Need to be reassured by the community

Nobody listens to clients in digital life (just spy)

Listen to them and you will fullfill in the same time social and commercial expectations

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New values

New expectations

New marketing rules

New actors

New purchase media

New cross-channel purchase

Consequences

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Consequences

New values a Momo does not buy a product, he buys a value, a spirit and all the DNA in the product. So where he buys and to whom he is buying is now important, then what and how much

New expectations brought by social networks and real life new values : sharing, transparency, permanent connectivity, intimacy democratisation and truthfull interactivity (expecting a real relationship, not only a « trade-interested relation ». In this 2-way process, they expect more consideration, respect and attention

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Consequenses New marketing rules

- Forget classic demographics segmentation

- Understand the new « taste communiting »

- Understand convenience client’s expectations

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Consequences New actors

Sharing changed the references : Wiki, Google, Trip Advisor, I-Tunes…Death of the traditionals (Encyclopedia Brittanica, music industry...)

New purchase media And payment technologies (flow, m-payment…)

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Consequences New cross-channels purchase

Customers are using several channels just for the shopping experience convenience

Online presence helps consumers to access to a product, read reviews and compare prices with other products online. They use the internet for in-depth research before going on a product and they need to find reviews from friends and social media Deep mistrusting toward companies communication ( trend shared by Momos and Yoyos avoiding manipulation in trading relationship)

The « Clic & Mortar » process is a classic

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Core value strategy

E-marketing

Community creation

Loyalty program

CRM

Operation manager

Customer service

Payment technologies

Adaptated answers

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Adaptated answers Core-values strategies Like a human, a company must have :

- a global ethic (CSR, Sustainable development, footprint reduction, fair attitude...)

- social business linked to the main activity - should be a real effort (green washing for ex is a fatal error )

A charter and honest behaviour this is not incompatible with a commercial activity

Traditional wall gets thinner between social and business world

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Adapted answers

E-marketing - based on a quality parameter, not quantity

( less usefull because of multi-sollicitations, multi-media…)

- with customized services to the « community »

- to increase customer’s convenience

Corporate website is now a hub and essential key.

Marketing strategies are reducing the « Push » to get toward a Pull approach (customers are now coming to the brand)

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Adapted answers Community creation

hosting a forum, a meeting point for customers opinions... A risk a company has to take

« Closing the eyes will not remove the sickness »Allow them to be transmitters, not only receivers

Be alive on social networks- always updated- always reachable- always reactive

- always following Bastien RENAULT 16


Adapted answers Create a blog

- reassure- reference- contextualize

According to a Custom Content Council survey, 61% of consumers say they feel better about a business that offers custom content and, in turn, are more likely to buy from that company.

As it changes everyday, it improves Google referencing( SEO)Blogging is one of the easiest and most effective ways to form a connection with prospects and customers. They can review your content at their leisure and then contextualize it to their individual situation.

« content plus context = connection »What is a content ? Anything that will answer a question that your prospects have, or help them

resolve a want or a need.

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Adapted answers

Loyalty program In order to show your customer that you are considering him, recognizing what he is doing for you.

He must be proud to buy your productsYou should be proud that he came for you

« Keep and please your fans before trying to catch new ones »

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Adapted answers CRM (Customer Relationship Management ) « the better you know your customer,

the more able you are to tailor the offer »

He gives so many informations and oftenly companies are missing a large part

« It takes only 2 years to learn how to speak but one entire life to learn how to listen » Confucius

A CRM software is essential to data mine customers informations

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Adapted answers Operations manager

To make so that Brand’s promises are real and practical for your customers, you need a good Operations Manager to implement them and so reduce the gap between rhetoric and reality

« Operations manager sleepy, customer service busy »

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Adapted answers Customer service

It is an essential link between a company and its customers

Should be organized in a 2-way communication process in order to maintain a real relationship with the customer

A CS is not only made to receive clients complaints but also to listen to their wishes, collect them and give some informations or rewards…

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Adapted answers Client-facing staff

They are the image of your company !So they must be made aware of the corporate’s values,adopt them, become them…

And of course well-trained At a human level also, quality is more important than quantity

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Adapted answers

Payments technologies

Be e-payment and m-payment readyBe trustable (security)

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UAE specificities

Overall trend

In-store purchase

On-line purchase

Mobile purchase

Multi-channel purchase

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UAE specificities Overall trend

People in the UAE were known (or seen) for their exuberant lifestyles, catching up with latest trends, buying new phones, cars or designer clothes. Living within the means is something unheard of. But a recent survey has shown that behaviour is changing, people are becoming more conscious about how they spend their money. (Dunia Finance Study after crisis)

Purchase is more TOUGHTFULL and RATIONAL. There are still three caracteristics that a product must have here, it has to be :- NEW- IMPROVED - CUSTOMIZED if possible

(common expectations in large cities worldwide)

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UAE specificities About the core values

Here also you will have to attach values in your corporate speech.

And you will have to inser primarily customer-oriented values (like sens of service, customization, convenience...) more than ethic or green ones. Even if CSR expectations are increasing in ME, it is just the beginning and not yet the first priority. This will change quickly with arrival of 2020 Expo and Masdar city.

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UAE specificities In-store purchase

The classic and more important channel (99,43 % of the incomes, cf T-Index 2012). It has the advantage of offering a personal welcoming experience and a product immediately delivered.

A more assisted and tailor-made purchase process, adapted to locals expectations

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UAE specificities On-line purchase

- high internet penetration rate (70%)- only 0,57% of the global trade income is on-line (cf T-Index 2012)(America is 22,5%, China 13,5% with a 40% internet penetration rate…)

E-retail in the UAE face stiff competition from shopping malls and is trying to attract consumers to increase the rate.

« Online shopping sites should complement in-store shopping and not compete with them here » says Tejury CEO (largest online Mall)

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UAE specificities Mobile purchase

- best smartphone penetration rate in the world (74% of the population and 100% expected, Ref OurMobilePlanet report 2013)

- mobile internet will overtake fix internet in 2015 (Ref IMRG)

Only few businesses have mobile communications strategies

- 80% of users have clicked on an advertisement or looked for more informations on a product

- 58% of users had visited a business after performing a search on their

smartphones- 68% had made a purchase transaction on their smartphones in

the last month... Bastien RENAULT 29


UAE specificities Multi-channel purchase

As everywhere else in the world, UAE citizens are cross-channel buyers because looking for more convenience

Marketers have to deal with a local difficulty : the multi-ethnic population E-marketing and Multi-channel allows to penetrates culturally segmented niches

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Conclusions Customers behaviours are changing much faster than years ago. The goal is to

observe all these shifts, define a direction and try to reach it.

« There is no good wind for the sailor who does not know his home port » A recent world economic storm sank many companies, the goal for the remaining ones is to stay in the race becoming better. When you understand a customer or identify a trend, you are much stronger and efficient in retailing.

Shopping experience and services provided are as important as the product in itself

In Dubai more than elsewhere, you always have to stay in motion

« In the storm, only stationary boats sink »

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Conclusion The secrets

- Transform your customers in fans or addicts !- Be like your fans : Connected and Concious- Keep tracking fans social trends need to be listened to need to have « convections » with brands

- Be structured to be able to fullfill your fan’s social and commercial needs

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Conclusion

« Facing change, the optimist will always see the opportunities »

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