Maijaliina Hansen

I Demand!

by Maijaliina Hansen

2011/07/26

I am an addict. I am fairly open about my problem (which makes it acceptable, right?). Most weekends/ weeknights you can find me floating through the brightly lit stores of the V&A flashing my credit card at anyone and anything.

This is not a new problem, Saturday morning shopping trips with my dad were a cornerstone of my childhood, but what has changed is the way I shop. Yesterday I found myself in Country Road (again), casually browsing the racks while simultaneously checking my brand new (woop woop) iPhone's internet connectivity to see if I should not be purchasing something similar I had seen at Topshop online (for approximately the same price including import tax). My consideration set was not limited to what I had available in front of me or even to the vastness of the Waterfront itself. I was quite literally making the world my shop (happy place). Although I exist on the periphery of almost being a geek (I work at Quirk and have an invite to Google +), I am not alone in my new purchasing/ consumption behaviour.

Online shopping with the push of a button

Image Credit: Danilo Rizutti

The power of digital and its infiltration into our everyday lives has seen a change in the average consumer that most marketers have started to realise is a major trend (the one to watch).
The trend I am referring to: The expectant consumer.

The key characteristics of the expectant consumer: They are demanding.

Demanding in terms of knowledge (knowledge is power), the best goods and services (at the best prices), fantastic service and complete transparency from all of their brands.
Wow - since when did your average "Dick and Jane" expect so much?

What has led to this new consumer? Several factors - sit back while I expand:

#1: Knowledge and awareness
Consumers now have access to multiple media channels. Back in 1991, there were less than 20 television channels in South Africa. Now we have hundreds with multiple networks and highly targeted advertising (that’s without going into the new digital mediums!). Consumers are now more aware of the choices on offer. Which leads me to my next point…

#2 Choice
Consumers are no longer restricted to one or two brands per category. Take a look at your average Pick n Pay cereal aisle. This increase in competition means that consumers expect their choice to be the best and their standards of what this means have increased due to this.  Coco Pops need to be more chocolaty and last 6 times as long on the shelf, but also contain no preservatives and extend your life expectancy by 20 years.

#3 Comparison
We no longer rely on a "gut feeling" when making a purchase. Comparison shopping via a simple Google search for even the smallest of purchases removes the uncertainty many consumers have for even frequently purchased products. We are now gifted with the power of knowledge. Search Engines are the first source of information for news about a company or brand.

#4 No geographical limitations
Online shopping has become increasingly standard due to the reduced risk of credit card fraud. This means that consumers are not limited to their local mall. They can shop from anywhere and have the goods delivered to their door (with the minor 40% import taxes hardly an issue when faced with the limited range in SA...when Zara...when)

#5 Social sharing
Social media networks and their multiple plugins allow us to see and track what our friends like and we are heavily influenced by their choices in our own purchase and consumption decisions. Although the 2011 Edelman Trust Barometer results for credible sources of information saw a drop from 2010 for the category “a person like me”, this still holds true for 43% of the survey population.

#6 Technology
Almost point b of the above... Integrating social media into all online retail shops and the increasingly intuitive use of technology in search engines like Google and even Facebook means that our search results are now personalised so that the top results are the ones that people in our social networks have liked and visited meaning we are even more influenced by friends choices and behaviour (arrggg - where is the individuality these days?).

#Ijustboughtthis
The rise of Twitter as a personal loudspeaker for some really uninteresting and irrelevant proclamations of shopping habits means we are exposed to when our local radio DJ last bought toilet paper (and which brand) and possibly influencing our own ply-based decision.

#8 I just can't think for myself
The interwebs are a vast and changing landscape of choice. Consumers don't really want so much choice. The rising trend of content curation reduces this difficult decision making and makes the choice for us by presenting us with the best options. Sites like Hippo do the insurance comparison shopping for us. Sites like 1band 1brand can even reduce the need to decide which your favourite new band is?

As a result of all of the above the consumer is even more expectant and demanding. They want the best product at the cheapest price no matter where in the world they need to get it from (and their friends must like it too).

What can we as marketers do?

We need to put our creative hats on and start fishing where the fish are...
Knowing how our consumers engage with media and social networks as part of their consumption behaviour requires research and effort - but just do it!

What do consumers want from their retail experience (online or offline)?

According to the 2011 Edelman’s Trust Barometer; quality, transparency and trust feature as the top three important factors to consumers in terms of a brand’s reputation.

Our discussion can be summarised into three main requirements from the expectant consumer:
1.    Simplicity
2.    Transparency
3.    Efficiency

Examples of retail brands getting it right:

  • Simplicity and Efficiency encapsulated by the brands that are engaging consumers by introducing a new way to shop for clothing via social media. French Connection launched a YouTube online shopping boutique called YouTique.  This platform allows consumers to have an interactive virtual shopping experience, view style tips and clothing items.  Consumers can click on items and go straight through to the online store, purchase and complete their user journey through entertainment to consumption in a couple of clicks.
  • Transparency illustrated by brands that are bringing their consumers closer to the brand through crowdsourcing of price. Uniqlo launched their new range with a simple campaign called Lucky Counter - allowing the consumer to set the price they want to pay for an item simply by tweeting to reduce the price, “more tweets, lower price”.  This allowed consumers to get a better price in exchange for brand awareness via Twitter.

Place the power in the hands of the consumer and get them to put your brand in their consideration set by making it easy (and making it fun)!

Heed this advice and get creative!

That's all folks. Happy shopping!


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Comments

Fantastic analysis. But what about LSM 1-5?

Posted by Mark H on 2011/07/26

Good point! Often when it comes to digital we focus on the higher LSMs (like this article) as this is the market of early adopters in SA on this channel (using computers and smart phones to access our platforms). However this does not mean we should forget about the lower LSMs when getting creative with online retail. Platforms like MXit are allowing brands to come up with innovative campaigns that target and connect with mainstream market on a daily basis. I will have to follow up with a part 2 of I Demand! :)

Posted by Maijaliina on 2011/07/27

so all those saturday mornings in the hardware shop, the guitar shop and the record shop were not wasted !! LOL

Posted by joh hansen on 2011/07/27

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