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What makes us buy, and why? The future of consumers’ roles and motivations

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Team Finland Future Watch Report: What makes us buy, and why? The future of consumers’ roles and motivations

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  • 1. What makes us buy, and why? The future of consumers roles and motivations

2. Contact information Research led and report prepared by: Soren Kaplan, Ph.D. Managing Principal [email protected] www.innovation-point.com San Francisco - USA Soren Kaplan is the author of the awardwinning bestseller, Leapfrogging. He is founder of InnovationPoint,arecognizedspeakeroninnovation,andconsultstoCisco,Colgate,Disney,NBC Universal,Medtronic,RedBull,andothers.HeledtheinnovationgroupatHPinSiliconValleyand teaches in the Imagineering Academy at NHTV Breda University in The Netherlands and the executive education program at Copenhagen Business School. To learn more about Soren, visit www.leapfrogging.com InnovationPoint is a nontraditional consulting firm with a laser focus on Strategic Innovation. InnovationPointhelpsdrivebreakthrough,profitabletoplinegrowthbyworkingcollaborativelywith crossfunctionalteamstochallengethestatusquo,toidentifyandcapitalizeonnewgrowth.Clients includeDisney,Visa,Medtronic,Colgate,RedBull,Cisco,Grundfos,ArcelorMittal,andotherglobal innovators.Formoreinformation,visitwww.innovationpoint.com. Tekes the Finnish Funding Agency for Innovation Tekes is the main public funding organisation for research, development and innovation in Finland. Tekes funds wide-ranging innovation activities in research communities, industry and service sectors and especially promotes cooperative and risk-intensive projects. Tekes current strategy puts strong emphasis on growth seeking SMEs. 3. 1 Roles & Motivations of the Future What will get people to buy or participate what we have to offer? This simple question is at the heart of most marketing programs, business strategies, innovation initiatives, and business models. Companies make huge investments based on the hope of hitting upon unmet needs or finding the hook to get people engaged. Most purchase decisions are driven by motivations. Sometimes these motivations are conscious calculations. In other cases, motivations may be unconscious though theyre just as powerful (or even more powerful) in influencing why someone might choose one product or service over another. Todays reality is that our social institutions and personal experiences are increasingly fragmented. We may act differently at home than at work. We may want things for our children that we dont splurge on for ourselves. The social networks we care about may be different from those of our closest friends, or even our spouses. We may work from home certain days, while jump on airplanes or go into a corporate office other times. Life has become a complex combination of choices and options. The motivations that lead us to choose to do business with one company over another are influenced by our backgrounds, social context, and culture. Just like each of us possesses unique DNA, so do we possess unique life experiences that impact what we think, feel, and do. Through extensive research, we identified eight primary roles that consumers play as they interact with companies, products, and services. At certain times we may let one role drive our behavior over others. At other times and in other contexts, we might assume a different role. We also might also take on two or more roles at the same time. The person who loves Apples technology, stores, and user experience, for example, might be completely committed to Apples higher end offerings while at the same time deciding to purchase a used iPad from the online classifieds to save money. This individual is a high-end brand lover who demonstrates cost conscious behavior. 4. 2 Deep Motivators for the Future Here are the eight roles and what makes them tick: 1. ValueChasersLookforthegreatestvalue,usuallywithcostinmind 2. ImpulseFollowersFollowthemostconvenientpath,includingbuyingand engagingwhenitsfastandeasy 3. SimplicitySeekersSeeksolutionsthatreducecomplexityandmakethings easier 4. BrandLoversGravitatetospecificbrandsandaspiretotheimagesandvalues theyrepresent 5. FearFixersDowhatittakestominimizerisk,reducethepotentialfor problems,andaddressfearsaboutthefuture 6. ExperientialEngagersEnjoyparticipatinginuniqueexperiencesandplace valueinintangibleservicesovertangibleproducts 7. MeaningMakersTriestofindmeaninginmosteverythingtheydo,including thecauses,companies,andproductstheysupport 8. ExpressiveCreativeslookforwaystoexpressthemselvestoreleasecreativity andgainapersonalsenseofcreativeaccomplishment So what inspires people to engage with organizations in ways that lead to real competitiveadvantage,cocreationandinnovation,andgreaterprofitabilityforone companyoveranother? Theanswersarentsimple.Buttheresafirststepinfiguringitouttounderstand thedeepmotivatorsthatdrivedecisionmaking.Thisisntjustaboutwhysomeone mightchooseoneproductoveranother.Itsaboutthefundamentalmotivatorsof human behavior and how we express these when we consider consciously or 5. 2 unconsciouslyifwewillbuysomething,beserved,cocreate,orinteractwitha product, service, or business model. Its about how companies can connect into deepmotivatorsasasourceofbusinesstransformationforthefuture. Most successful products, services, and business models already tap into these motivatorsinsomewayoranother.Inthefuture,thecompaniesthatharnessthe powerofthesemotivatorsinnewwayswillreapthebiggestrewards.Herearethe motivationaldriversofconsumerengagementandinteraction: Thesemotivatorsarenotmutuallyexclusive.Heretheyvebeentiedtothespecific roles they support, but any individual may experience a variety of these deep motivatorsduringanyperiodoftheday,andespeciallyovertheirlives. 6. 3 The underlying motivations for each of these roles run deep. Most of the motivations are fundamental to what provides purpose in life, and theyve been around for a long time. How these motivations are met and expressed today, however, changes depending on how the options available how innovative organizations choose to address these with new products, services, and business models. 7. 4 Business Implications and Opportunities Most companies provide products or services that focus on delivering specific featuresandbenefits.Withoutanunderstanding ofthedeepermotivationsthat drive consumer behavior, it becomes much harder to create differentiation in a crowdedmarket. Companiesthataddressdeepmotivatorsincreativewayscanprotectthemselves fromcommoditization.Deepmotivatorsareessentiallythebuildingblocksofgreat customerexperiencesandbusinessmodelsthatcreatecompetitiveadvantage. Astodaysworldbecomesincreasinglycomplex,avastarrayoftechnological,social, political,andothertrendsshapeourlocalandglobalenvironmenteveryday.Here are10examplesoftrendsthathighlighthowleadingedgecompaniesaretapping intosomeofthedeepmotivatorstoinnovatetheirwaytofuturesuccess.Asyou reviewthese,consider: 1. Howmightthesetrendsapplyinmymarketsandformycustomers? 2. Whichtrends,roles,anddeepmotivatorsaremostrelevantforwhatwedo today? 3. Whichtrends,roles,anddeepmotivatorsrepresentopportunitiesforfuture innovationtotapintonewcustomersegmentsorasthebasisfornew products,services,processes,experiences,orbusinessmodels? 4. Whatothertrendsinyourownindustrytapintothedeepmotivators,and howcanyouusethemasasourceofinnovation? 1. Instapreneurship: TheInternetmakesiteasierforbrandsandconsumerstoconnectandco create.Anumberofplatformshaveemergedthatenableaspiring entrepreneurstodesign,create,develop,andselltheirproducts,ideas,and orservices.ThesearethesocalledInstapreneurswhoareabletocreate businessesandaccomplishgreatthingsin(almost)aninstant.Itempowers consumerswhommayhaveneverdevelopedtheirideaswithoutthese programs. KeyTarget:ExpressiveCreatives,ValueChasers 8. 5 Zazzle The online community enables consumers to become codesigners of by making custommade bags and other merchandises, this codesigner can then check out, voteon,andbuyfromotherusersand/orbrandedpartners,andsetlicensingfees fortheirowndesigns.Theseconsumersareabletoexpressthemselvesbycreating somethingoftheirownwhilebelongingtoaspecificcommunityaswellashaving thesenseofaccomplishmentandrecognition. Website:Zazzle Video:Zazzle HuggiesMominspired KimberlyClarkgives$15,000'HuggiesMomInspiredGrants'to'Mompreneurs'who arecreatingtheirownbusinessessothattheycanbuildrelationshipswithwomen whoareinnovatingchildren'sproducts.Thecompanygivesthesewomenmoneyto fundtheirbusiness,andtheonlythingtheyaskinreturnistohavetherightstobuy their business if they decide to sell. The program received 50 millions web impressions when it went live which created incredible brand awareness. The companyhasreceivedhundredsofnewideasandproductsubmissionsfrommoms aroundtheworld. Website:HuggiesMomInspired Video:HuggiesMomInspired 9. 6 2. SocialCurrencyMarketing KeyTargets:BrandLovers,ExperientialEngagers,ValueChasers Marketing messages bombard consumers every day. To cut through the noise, manycompaniesnowprovidemerchandiseordiscountsinreturnforconsumers socialsharingandpromotiontotheirfriends.Consumerswhoarepassionateabout certain products, brands, or experiences share with their networks and receive financialincentivesinreturnforpromotingthecompany. MarcJacobsPopUpTweetShop MarcJacobsopenedupapopupshopinthemiddleofManhattanforitsperfume brand,Daisy.Customerspaythroughthetweettheysendoutand/orsharethe moretheytweet,themorefreeproductstheyreceive.Thehighenddesignergoes beyondadvertisingandengagehisclientsinwaysthattheybecomeambassadorsof thebrand. Website:MarcJacobsPopUpTweetShop Video:MarcJacobsPopUpTweetShop HertzShareitUp TheShareitUPcampaigngave consumerstheopportunitytosharepromotion Hertz to their friends on Social Media. The more they shared, the higher the discountstheyreceived. Website:HertzShareitUpCampaign 10. 7 3. AffinityNetworks: KeyTargets:MeaningMakers,ExpressiveCreatives,BrandLovers AffinityNetworksarecommunitieswherepeoplecometogetheraroundashared purpose or focus. Companies create networks where people connect, share, and interactwitheachotherbasedonspecificcommoninterests. Untappd Beerfanscansociallyconnectwithoneanotheronthismobileappbysharingtheir favoritebeersandbreweries.Memberscanalsogainpointsforthedifferentkind andbrands,andamountofbeertheypostandshareontheiraccount.Thismobile appisdevelopedspecificallyforpeoplewhohaveaspecificsubjectincommonin this case, beer that brings them all together and creates a sense of exclusive communityforbeerenthusiastsallovertheworld. Website:Untappd Video:UntappdBeerApp Runkeeper Runkeeperisamobileappwherepeoplewithacommoninterestathleticactivities areabletotracktheiroutdoorfitnessactivitiesandconnectwithfellowathletes. Theirpersonalrecords,andtimetrackingcanalsobesharedwithfellowmembers, which makes Runkeeper part app and part social network. Runkeeper members share a common passion, which encourages them to stay active and progress towardtheirindividualandsharedgoals. Website:Runkeeper Video:Runkeeper 11. 8 4. RentaAnything: KeyTargets:FearFixers,SimplicitySeekers,MeaningMakers Many consumers increasingly recognize the value in approaches that share, rent, swap,orloanproducts,services,andexperiences.Concernfortheenvironment,a desire for greater simplicity, freedom from accumulating stuff, and a sense of communityaretriggersforparticipationinsuchmarketplaces. OpenShed OpenShedsvaluepropositionspeaksforitself:Whybuy,whenyoucanshare?The companyconnectspeoplewithotherswhowouldliketoshareandlendhousehold items and tools to them. When looking for hardware tools, consumers no longer have to buy them for a onetime use, but are able to make their lives easier by borrowingwhattheyneedforwhentheyneedit. Website:OpenShed Video:OpenShed Meemeep Meemeepsimplifiesthehassleofmoving.Usually,movingmeanscosts,especially when renting a moving van or hiring a moving service. Through Meemeep, customersposttheitemstheywanttomoveandtowhere,andotheruserswitha movingvanfromthegivengeographicareapickupandhelpthesemoverstoget from point A to point B at the lowest possible cost. The two parties make agreements on the price while Meemeep holds the money until the items are successfullydelivered. Website:Meemeep Video:Meemeep 12. 9 5. PeerSupportforMotivation&Change: KeyTargets:FearFixers,SimplicitySeekers Mostpeoplewanttochangesomethingaboutthemselves.Butchangeistough!A newbreedofcompanynowbrokersconnectionswithpeersandexpertstopromote greatercompliancewithgoalsandthemotivationtoachievepersonalobjectives. Whetherfinancialplanning,weightloss,orjuststickingtoaNewYearsresolution, socialsupportisoneofthemostpowerfuldriversofpersonalchange. Myntcity Myntcityprovidesawayforpeopletoincentivizetheirsocialnetworksfriendsby requesting for help with tasks. These tasks include; resume writing, babysitting, plumbing,andaccounting.ThefriendswhohelpoutreceiveMyntpointsthatare redeemableforproductsonline. Website:Myntcity Video:Myntcity JennyCraigBuddyGroups Focusedondietingandweightloss,JennyCraigprovidesapeersupportcommunity for behavior change. Members share their goals and get both emotional and practicalfeedbackfromothermembersandnutritionexperts.Thejourneyoflosing weight could be hard on some people and the company provides a safe environmentwherepeoplecanobtainsupportthathelpsthemreachfuturegoals. Website:JennyCraigBuddyGroups 13. 10 6. Interactive(Virtual)Shopping: KeyTargets:ExperientialEngagers,ImpulseFollowers,SimplicitySeekers The line between physical and virtual shopping is rapidly becoming blurred, and shopping,itself,willlikelybecomeablendedvirtualandretailexperience.While wizbang technology may feel novel initially, interactive shopping can save time, revealoptionsforcustomizationandpersonalizationnotavailableinphysicalstores, anddeliverengagingexperiencesaspartofthepurchaseprocess. Tesco/HomePlus Tesco,thegiantsupermarketchain,cameupwithafreshnewideaforSouthKorea, wherepeopleworklonghoursandhavelittletimetoshop.Avirtualbillboardin subwaystationslookslikesupermarketshelves,whichgivescommuterstheability toscanQRcodeswithinthebillboard.Selecteditemsarethendeliveredtotheir homes.Thebillboardsdeliveraunique,surprising,andengagingexperienceas wellasfood! Website:Tesco/HomePlus Video:Tesco/HomePlus AdidasAdiverseFootwearWall WithinselectedAdidasstores,thesavvyathleticbrandprovidesaninteractivein storedigitalwallthatallowscustomerstopurchaseonlinemerchandisenotfoundin the store. The wall features shoes not physically available while helping provide more options without the inventory, which saves space and cost. Customer satisfaction increases due to greater product assortment, customization options, andoneclickordering.Itsatrulydifferentbrickandmortarretailexperience. Website:AdidasAdiverseFootwearWall Video:AdidasAdiverseFootwearWall 14. 11 7. FunandGamesAgement(EngagementforFun&Games) KeyTargets:ExperientialEngagers,ImpulseFollowers Withthestruggletogainconsumermindshare,manybrandsarelookingtointeract withconsumersbycreatingexperiencesthatrelyonfun,games,andhumor.Often thesestrategiesandprogramstakeconsumersbysurprise,tappingintotheimpulse toexplore,trysomethingnew,orjusthavefun. TrafficLightPong ThiscrosswalktrafficlightindowntownGermanyengagesfellowpedestriansfrom theoppositesideofthestreetwithagameofpong.Eachsideusesacontrollerona streetpost.Strangersbecomegameopponentswhilewaitingforthelighttogreen, andareabletoexpresstheirgloryordefeatafterthetrafficlightturnsgreen.This urban interactions was originally created as an art installation, but commercial applicationsmayberightaroundthecorner. Website:TrafficLightPong Video:TrafficLightPong CocaColaSmallWorldsMachine TwocountrieswithhightensionscametogethertosharehappinesswhenCocaCola placedtwovendingmachinesintwomalls,oneinIndiaandtheotherinPakistan. Thevendingmachineswereconnectedwithtouchscreensandalivestreamingvideo feed.Consumersfrombothcountrieswereencouragedtocompletetaskstogether includingdancing,peacesigndrawing,andwaving,beforereceivingtheirCoke. Website:CocaColaSmallWorldsMachine Video:CocaColaSmallWorldsMachine 15. 12 8. Upgradeability: KeyTargets:MeaningMakers,BrandLovers,ValueChasers Upgradeabilityisntaboutconsumersmakingnewpurchaseseverytimetheywant something new. Its about constantly upgrading or improving existing products. Tappingintoconsumersdesireforinstantaccesstothenextversion,thewhole conceptofupgradesarenowbeingappliedtophysicalobjects.Preservingthe environment,obtainingasenseofcommunity,andsavingmoneyarealltriggersfor engaginginupgradeability. Phonebloks Invented by a Dutch designer, Phonebloks focus on reducing electronic waste. Phones are split in different blocks and are customizable. Consumers, for example,decidehowlargetheirbatterieswillbeorthesizeoftheircameralenses. When parts of the phone malfunction, they can instantly replace the faulty part insteadofbuyinganewphone. Website:PhoneBloks Video:PhoneBloks Ovicuo CarmanufacturerRenaultpartneredupwithOvicuotodesignamultipurposecar. Thecarisversatile,whichmeansitcanbetransformedfromanordinarycarintoa camper in just minutes. This new design provides a fresh look to camping, and makesitmoreaccessiblesinceanyonewithOvicuodoesnthavetorentorbuyaRV togocamping. Website:Ovicuo Video:Ovicuo 16. 13 9. SocialEnterpriseBusinessModels: KeyTargets:MeaningMakers,ExperientialEngagers Socialenterprisesarebusinessesthatbringsocialvaluetosocietywhileatthesame generating revenue. Their goal is to provide a winwin that allows consumers to givebacktosocietybydoingbusinesswiththem. GrannysFinest Grannys Finest brings fresh new clothing designs to life through the knitting of volunteer grandmothers. The grannies knit for free since they are given opportunities to come together and meet other grannies within the network. Incentives include social gatherings, lunches, and group day trips for sightseeing. GrannysFinestissolvingthesocialproblemofelderlyisolationinTheNetherlands by giving grandmothers new meaning in life all while selling highend and fashionableknitwear. Website:Granny'sFinest Video:Granny'sFinest MyBnk A Londonbased financial program, MyBnk delivers financial and enterprise education to schools and youth groups. Financial experts teach children how to manage their finances. Its not just about education, but also practice. Kids can receive loans without any interests when they setup their own entrepreneurial enterprisesintheirlocalcommunities.Theygainafeelingofempowermentwitha senseofresponsibility,whilegeneratingvaluefortheneighborhoodsinwhichthey live. Website:MyBnk Video:MyBnk 17. 14 10.GrassrootsExperientialMarketingCampaigns(GEMCs): KeyTargets:ExperientialEngagers,MeaningMakers GEMCs are interactive consumer activation campaigns in which consumers are directlyengagedasthedrivingforcebehindaproductrolloutormarketingstrategy. VolkswagenFastlane The guerilla marketing campaign called Fast lane was implemented in order to promoteVWPoloGTstwocoreelements:havefunwhiledrivingwithspeed.The campaignenabledmallgoerstochoosebetweenanormalescalatorandabright redslidetodescend.Manychosetoslidedownwhileahiddencamerarecorded theirexperienceandfacialexpressionsthecampaignwentviral. Website:VolkswagenFastLane Video:VolkswagenFastLane TNTDrama TheAmericantelevisionnetworkTNTcreatedadramaticsurprisefortheirlaunchin Belgium.ItcreatedaguerillacampaignonaquietsquareinBelguimandputapole with a red button where people could push. As soon as people pushed the red button,atheatricaldramawouldoccurthatwouldleavepeoplesfacesinawe.The network managed to engage spectators with the element of surprise by keeping themontheirtoesastowhatwouldhappennext. Website:TNTDrama Video:TNTDrama 18. 15 Idea Generation for Implications & Opportunities DeepMotivatorsasDriversofFutureOpportunities Sowhatmotivatesyourcustomers?Wherearetheopportunitiestotapintoone ormoreofthesemotivatorstocreatecompetitiveadvantage? Select several deep motivators and brainstorm answers to their respective questions. Identifywaystoaddressmultipledeepmotivatorsinyourproducts,services,experiences,or businessmodels.Considerthetrendexamples,discussothertrendsinyourindustry,and explore how you might connect trends, consumer roles, and motivators to create competitiveadvantage. 19. 16 References Bhalla,G.(2010,November03).InnovationManagement CollaborationAndCoCreationIncentivesAreImportant.RetrievedFebruary12, 2014,fromInnovationManagement: https://innovationmanagement.se/2010/11/03/collaborationandcocreation incentivesareimportant/ Dvorak,T.(2013,February02).UniversityofTwente.RetrievedFebruary12,2014,from Utwente.nl:http://www.utwente.nl/mb/ba/education/bathesis20132/dvorak.pdf Edelman.(2013,November12).EdelmanEditions.RetrievedFebruary24,2014,from Edelmaneditions.com:http://edelmaneditions.com/2013/11/cocreation crowdsourcing20/ Edelman.(2014,April2).EdelmanEditions.RetrievedApril2,2014,from Edelmaneditions.com:http://edelmaneditions.com/2014/04/thecontentchallenge drivingmeaningfulconsumerengagement/ GreenBookBlog.(n.d.).GreenBookBlog.RetrievedfromGreenBookBlog.org: http://www.greenbookblog.org/2013/10/01/cocreation30/ MSLGroup.(2013,March01).PeoplesLab.MSLGroup.com/PeoplesInsights/AnnualReport. 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