Omar Jamil, CEO Latitude blogs for Aurora from New Delhi
Session 2 – Decoding the New Age Consumer
Given that we’re running around an hour behind, the conference organisers decided to skip the scheduled tea break here and launch straight into Session 2… More on this later, but I think a lot of people probably a bit annoyed (I, at least, am somewhat peeved)…
Adil Zainulbhai, MD, India, McKinsey & Company Inc
Laxman Narisimhan, Director, New Delhi, McKinsey & Company Inc
Koichi Yamamoto, GM, General Solutions Center, Dentsu
Started with conference theme of ‘Uncertainty: the New Certainty’ – shared insights from McKinsey Global. Four scenarios on how world will evolve economically in next decade.
Scenario 1: world economy rebalances
Scenario 2: emerging markets derail; developed markets back on track
Scenario 3: decade of Dragon and Tiger – who cares about developed world; developing markets shine
Scenario 4: all Hell breaks loose and everything goes bust
Adil asked audience which scenarios everyone thought were most likely to compare with actual findings.
Scenario 1: 2000 government executives and marketers thought this was likely
Scenario 2: fewer people think this likely now than six months before
Scenario 3: a large number of people tend towards this scenario
Scenario 4: most people were becoming confident this wouldn’t happen, then Euro crisis happened and more people thinking this might still happen
What does this mean? Well basically that few people are in agreement on what will happen, and that their views and opinions are constantly changing. Good news is that around 50% of people think developing markets will do well. Adil expects greater state regulation in the marketing world – state intervening more.
Turns over to Laxman to talk about the new consumer. Laxman’s presentation a ‘rapid journey on consumer evolution’.
First force shaping consumer behaviour is demographics – youth, high percentages below 30 years old. A schism between ‘grey’ and youth.
Second, digital really big. In past few years, China added per year amount of internet users the total amount of USusers. China number one in connected folks, India number two. Laxman expects these numbers to change dramatically as prices of devices – especially handheld – drop. Going to see a huge shift in terms of who’s connected in Asia.
This connectivity creating data ready to be leveraged by marketers. 2.9 million emails sent every second. 380MB of data consumed every day. 22% of globe covered by GSM. 700 billion minutes spent on Facebook each month. Staggering amounts of data and content.
But how is this affecting consumer behaviour?
Asian consumers love brands. So brands are clearly important. Behaviour online – e-commerce still not developed in India, but clearly developed in places like China and Malaysia. In India 37% research online, before purchasing. So online used as a driver of offline purchasing.
The consequence of this is emergence of global tribes. Interconnectivity growing because of digital…
(Asides note: people losing steam at this point – I can see audience members fidgeting and getting restless – too many statistics and not enough insight).
Laxman talking about the connected consumer – I’d imagine that for most marketers this is not new news? While I understand the importance of statistics, I’d be far more interested in seeing the consequences of this digital connectivity, rather than demonstrations on how much time people are spending on ‘vernacular sites’. Show me what that means for marketers instead… Perhaps the content is being delivered more towards agencies?
Laxman uses the example of the iPhone app ‘Red Laser’ to illustrate how changing behaviour affects buying/purchasing patterns – consumers can now price check while actually browsing the product in the shopping place.
Laxman is now sharing social media usage figures… Apologies readers, because I just officially tuned out… Statistics overkill. Laxman telling us how consumer is now leading the conversation via social media – again, I’d imagine that most savvy marketers should know this already, no?
Interesting point – local and mobile, combined with mobile are big determinants in moving consumer behaviours.
Therefore 3D marketing dead; 4 dimensional advertising is the way forward. Laxman about to share some information – no wait, the connection just died, so he couldn’t. So back to the presentation and more statistics. However, he has still not explained what he means by 4D advertising…
Laxman: consumers expect companies to engage with them differently. 32% of users expect the brand to correct incorrect information online as soon as possible; 17% of users comment on brands online. Laxman: “Interestingly, consumers want to engage with brands online.” Really? I didn’t realise that… Engagement choices driving purchasing intent. And the penny drops – 4D marketing adds engagement as a dimension of marketing.
And now over to Hoichi Yamamoto to give his views. First words: I completely disagree with what these guys say (kiddingobviously). Ah, promising to be brief! Oh yay!
On serious note: agree with what the McKinsey guys are saying; frightened but also relieved (waiting for Yamamoto’s presentation to be loaded – uh oh! More tech issues…).
Ok here we go: Yamamoto starts with evolution of digital marketing and purchasing. Share leads to search leads to action leads to share. However, this was still the ‘funnel’ model and this needs to change to the ‘reverse funnel’ – small amount of consumers start process and engagement drives the process.
Consumers moving from passive/reactive to active. Move from marketer POV to consumer POV. From funnel to ‘bell process’ (reverse funnel). This new approach brings the consumer into the mix where the consumer becomes part of the brand, drives the brand, and drives interest in the brand.
Yamamoto believes way forward is a combination of funnel and reverse funnel. So continue traditional marketing approaches, but also move towards consumer engagement. Interesting point: this is actually way back to days before mass media. So times when information was shared via word of mouth – advent of mass media brought about mass communication. Now we’re back to a stage of consumer empowerment, where consumers are drivers of communication. So marketers must combine social media and ‘traditional’ communications. This will be achieved by ‘getting back to basics’.
And yay, Yamamoto San ends and off to lunch we go!