THE CONSUMER JOURNEY TO 2020
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1 THE CONSUMER JOURNEY TO 2020 Five Trends Driving the Future of Brands Silicon Valley Chicago Toronto New York City GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
2 II. Five Trends Driving the Future of Brands GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
3 The Consumer Journey To 2020 Today, consumers: Don t follow a straight line path to purchase Share information, interact with brands in different ways Experience brands in-store, by WOM, using social media, mobile apps and more Have different expectations For marketers: More opportunities to engage and influence More complexity in understanding how market dynamics inter-relate Fast, accurate activation Source4: Roper Reports Worldwide 2012 (US filter) GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
4 Consumer Journey Is a Deeply Felt Experience Consumers in the US (58%) index high on GfK s Experience trend, +15 points from global average Value the social and cultural capital of what I do versus what I ve got 52% agree strongly experiences are more important than possessions, +6 points above global average Attuned to the experience of using a product 39% agree strongly that the look, feel, and smell of a product are very important to me Source4: Roper Reports Worldwide 2012 (US filter) GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
5 Trend 1 Living on the Other Side of Change More Comfortable with the Pace Pessimistic About the Quality of Change Things are changing faster than any time previously I find it difficult to keep up with the changes I believe most of today's changes will turn out for the best I find I am disappointed at the lack of meaningful change today For the first time, fewer than 50% of consumers find it difficult to keep up with change they ve adjusted to a warp-speed world Chart: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
6 Trend 1 Living on the Other Side of Change Consumers have adjusted to limitless change What s in it for them? Enormous consumer appetite for positive change Can you be the game changer? Chart: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
7 Trend 2 From Interruption to Information : Advertising s New Identity Consumers views shift: Growing numbers find utility in advertising and marketing Since 2008: % who agree with statements about advertising Current Provides useful information Makes possible entertainment Helps me keep up-todate about products, services I'd like to have Fun or interesting to read, watch, or listen to Helps me decide which products, brands to buy Chart: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
8 Trend 2: From Interruption to Information and Integration : Advertising s New Identity % saying souce gives them the best ideas or information for type of purchase Online (net) People (net) TV (net) Magazines (net) Newspapers (net) Ways of improving your health Relative merits of new makes of cars New meals or dishes you'd like to try Improving your home's appearance Clothes you'd like to own or try Source: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
9 Trend 2 From Interruption to Information : Advertising s New Identity Ad clutter is a thing of the past Technology enables consumer control, efficiency, integration of information, and enjoyment Chart: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
10 Trend 3 Point of Sale Becomes Point of Sway Consumers draw on many sources before buying % use to get information before buying product for first time +/ Ask friend or family member Product-package information 70 NA Ask a salesperson In-store info, displays, brochure Online product reviews NA +20 Company or brand website Call on cell phone from store Ads in magazines, newspapers Reviews in magazines, books TV ads, informercials Check reviews, prices from cell TV programs NA -1 Chart: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
11 Trend 3 Point of Sway Is Increasingly Mobile 6% of consumers have made a mobile wallet transaction in the past 30 days. Far more likely to be: Young: Gen Y (42%) and Gen Z (17%) Brand-oriented: 66% (+19 points from total public) Advocates: Advise friends on technology products (71%, +36 total public) to health (54%, +24) to personal appearance (49%, +26%) Source: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
12 Trend 3 Continued Real Sway Relies on Good Listening Qualities most important in making someone influential: 58% US Is helpful and offers useful recommendations 54% US Is someone with a lot of knowledge about things 51% US Is a good listener 48% US Has a lot of real life experience What makes a good listener? 61% Asks Appropriate Questions Listening is more than monitoring 54% Patient, Lets Me Take the Time I Need 48% Shares Their Own Ideas 45% Focuses all attention on conversation 44% Doesn t Interrupt Roper Reports Worldwide, filtered for US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
13 Trend 3 Point of Sale Becomes Point of Sway Technology has transformed the shopping experience Perhaps ironically enhancing what happens in-store Chart: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
14 Trend 4 Platform-agnostic (and loving it!) How consumers use smartphones, tablets % of owners who have done with device in past 30 days Smartphones Tablet PC, laptop 64% 54% 86% Browse the Internet Play games Listen to music Participate in social network or online community Watch short video clips Bank online Read or watch the news Edit or share photos or videos All of the above = Digital choice of consumers Shop online View or edit documents Read books or magazines Watch movies or TV programs Table: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
15 Trend 4 Platform-agnostic (and loving it!) GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
16 Trend 5 Consumers are Brand Fickle Fickle Consumers: 39% choose whichever brand seems best at the moment * across 7 categories vs. 29% who buy the same brand and 26% who generally choose from 2-3 brands Fickle by Category: Clothing (51%), consumer electronics (44%), and H&BA (41%) Fickle Generation? Gen Y (44% avg.) vs. X (38%), Boomers (37%), Preboomers (36%) * Average of 7 categories: Autos, Beverage Alcohol, Clothing, Consumer Electronics, Food, Health & Beauty Aids, Household Cleaning Products,Source: Roper Reports US GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
17 Trend 5 Consumers are Brand Fickle Why Whichever? 67% Like to try brands others have recommended especially electronics, food, auto, & HH cleaning 45% Like to try new and different things all the time especially alcoholic beverages Variety 58% Buy whatever is on sale or have coupons for especially HH cleaning and food 42% Can t find a brand that satisfies enough to stick with especially consumer electronics No Wow Factor GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
18 Trend 5 Consumers are Brand Fickle A fickle heart is the only constant in the world (or market) Advancing technology should keep us fickle Breakthrough innovation is key to lasting courtship,source: Howl s Moving Castle, Diana Wynne Jones GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
19 Five Trends Driving the Future of Brands Trend 1 Living on the Other Side of Change Trend 2 From Interruption to Information : Advertising s New Identity Trend 3 Point of Sale Becomes Point of Sway Trend 4 Platform-agnostic (and loving it!) Trend 5 Consumers are Brand Fickle GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
20 Thank you! GfK 2012 The Consumer Journey to 2020: Five Trends Driving the Future of Brands October
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