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    Consumer Decision Journey

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    AnubhavChauhan
    McKinsey conducted research in five industries and found that the consumer decision journey model has changed from a linear funnel to a more circular model with four phases: initial consideration, active evaluation, closure, and post-purchase. They identified three key areas where consumer decision making has changed: 1) consumers now consider fewer brands initially but more during active evaluation, 2) consumers are more empowered and pull information rather than having it pushed to them, and 3) loyalty now occurs both after purchase and during subsequent considerations. Marketers must align their activities with the new consumer journey by prioritizing touchpoints, using tailored messaging, investing in consumer-driven marketing, and winning at the point of sale.

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    Consumer Decision Journey

    Uploaded by

    AnubhavChauhan
    100 views2 pages
    McKinsey conducted research in five industries and found that the consumer decision journey model has changed from a linear funnel to a more circular model with four phases: initial consideration, active evaluation, closure, and post-purchase. They identified three key areas where consumer decision making has changed: 1) consumers now consider fewer brands initially but more during active evaluation, 2) consumers are more empowered and pull information rather than having it pushed to them, and 3) loyalty now occurs both after purchase and during subsequent considerations. Marketers must align their activities with the new consumer journey by prioritizing touchpoints, using tailored messaging, investing in consumer-driven marketing, and winning at the point of sale.

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    McKinsey conducted research in five industries and found that the consumer decision journey model has changed from a linear funnel to a more circular model with four phases: initial consideration, active evaluation, closure, and post-purchase. They identified three key areas where consumer decision making has changed: 1) consumers now consider fewer brands initially but more during active evaluation, 2) consumers are more empowered and pull information rather than having it pushed to them, and 3) loyalty now occurs both after purchase and during subsequent considerations. Marketers must align their activities with the new consumer journey by prioritizing touchpoints, using tailored messaging, investing in consumer-driven marketing, and winning at the point of sale.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    100 views2 pages

    Consumer Decision Journey

    Uploaded by

    AnubhavChauhan
    McKinsey conducted research in five industries and found that the consumer decision journey model has changed from a linear funnel to a more circular model with four phases: initial consideration, active evaluation, closure, and post-purchase. They identified three key areas where consumer decision making has changed: 1) consumers now consider fewer brands initially but more during active evaluation, 2) consumers are more empowered and pull information rather than having it pushed to them, and 3) loyalty now occurs both after purchase and during subsequent considerations. Marketers must align their activities with the new consumer journey by prioritizing touchpoints, using tailored messaging, investing in consumer-driven marketing, and winning at the point of sale.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    For a long time, the goal of Marketing was to capture value at the different points which

    influence Consumer buying decisions. These points are known as ‘TouchPoints’ in the
    language of marketing. Companies often understood these touchpoints through the ‘Funnel’
    (also called the AIDA model in some contexts) concept which describes the journey a
    consumer takes. The funnel keeps on narrowing itself until at the end; the consumer makes a
    decision. While the Funnel framework used to describe the journey of a customer aptly in the
    pre-digitization era, the much more informed consumer today makes this framework a little
    less useful. To understand the consumer of today, McKinsey conducted extensive qualitative
    and quantitative research in 5 different industries & came up with new findings regarding the
    decision journey the consumer takes.

    Previously, ‘The Funnel’ approach argued that the consumer narrowed his choices as he
    evaluated his options and then made the purchase. The post-sale phase then determines the
    loyalty of consumers and Marketers used to ‘push’ the marketing towards each stage of the
    funnel. McKinsey, on the other hand, found out that the decision-making journey is more
    circular now containing four phases: Initial consideration, Active Evaluation, Closure and
    Post-Purchase. They called this framework ‘Consumer Decision Journey’.

    McKinsey found out that in three broad areas, the way the consumers are making their
    decisions required a change. These were:

    1. Brand Consideration: Contrary to the funnel approach, which argues that the
    consumer considers most brands during the awareness phase, qualitative research
    suggests that the consumer has reduced the number of brands they feel at the start.
    They also found out that the number of brands considered increase during the second
    phase, i.e. Active Evaluation. This can prove to be a significant touchpoint to the
    marketers to enter the consideration and force the exit of competitors.
    2. Empowered Consumers: As argued before, the consumer of today is much more
    informed than the consumer of the previous era. Previously, Marketers used to ‘Push’
    the marketing to consumers through different media. Today, the consumer ‘Pulls’ the
    information by the Internet, social interactions and past experiences. The market must
    learn to influence these consumer-driven touchpoints.
    3. Two types of Loyalty: The post-purchase recommendation in the ‘Funnel’ was the
    ending point, but the consumer today makes brand considerations even after the
    purchase. The Marketers need to provide an after-sales experience that inspires
    loyalty. Of these loyal customers, some are Active Loyalists, who’ll stick with the
    brand for subsequent purchases and there are Passive Loyalists, who, despite their
    claim to stick with the brand, will shift to a different brand if given a reason to switch.
    Marketers must keep on expanding their active loyalists.

    The Marketer today must consider these new realities of the consumer behaviour journey and
    align his Marketing with the help of four activities:

    a) Prioritize objectives and spending: The Marketer needs to shift focus from just
    considering the endpoints of the funnel to look at each of the touchpoints separately.
    There’s a need to be much more specific about the touchpoints which can be used to
    influence customer decision from Initial consideration to closure.
    b) Tailored Messaging: A new messaging is required to shift from the generalized
    messaging, which cuts through all touchpoints to specific messaging for touchpoints
    considered as weak.
    c) Invest in Consumer Driven Marketing: The epicentre of consumer-driven
    marketing is the Internet, where the consumer finds all the information. The
    Marketers need to invest in solutions which can attract consumers through digital
    mediums. Today content creation and digital targeting enable Marketer to create
    variations in their communications according to the context.
    d) Win the in-store battle: The visual dimension of a product profoundly influences
    consumers today. Merchandising and Packaging then become an essential factor for
    consumer considerations.

    Integrating all Customer Facing activities

    Organizations today have many different specific customer-facing activities. The departments
    conducting these activities are not interacting much. The new generation CMO needs to
    understand the current realities of the Consumer Decision Process and integrate all these
    Customer Facing Activities. The Marketer of today must treat the shift in consumer behavior
    as an opportunity, giving the right information at the right time to the consumer, and help
    them make an informed decision.

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