The Growing Power of Consumer

THE GROWING POWER OF CONSUMER
1. Definition
Consumer’s power: The ability of consumer to vote with their feet, or with their
wallets, and now that power is stronger to influence not only what they buy, but also what
others buy. They dictate when, where and how they engage with brands, demand a more
personalized service, and expect to be able to shape the products and services. They have
been given a voice, willing to share their opinions, experiences.
2. Situation + Reason + Solution
2.1. More informed, connected and demanding consumers
No. Reality Reason Solution
1 A growing gap  Power of knowledge - Consider new touch
between - Consumers are now well points such as social
consumer equipped to do research and media and online as
expectations and receive satisfaction for most opportunities to engage
the ability of of their needs.  let them more openly with
business to meet connect with peers and consumers.
them. enrich the information - Develop new capabilities
shared. such as encouraging sales
- They use tools such as on social media (s-
social media, price commerce) and social
comparison websites to customer relationship
perfect their choices. management (Social
- Figure 1: 81% people read CRM) with consumer-
reviews and check ratings. centric process.
More than 1 in 3 consumers
contribute to online forums
or other’s blog comments.
Case study: Amazon has announced a partnership with Twitter that allows users to add
products to their shopping baskets by replying to tweets containing a link to an Amazon
product with #amazonbasket. Then, uses go to Amazon to complete the purchase. This
highlights the offering of s-commerce function.
2 - The trust issues. - Customer become the - Develop content to inform

Consumer be professional shoppers with and educate consumers
more skeptical more confidence. They and help them move
about the ability know where to get needed through the decision
of big brands to information. process. Arming
keep their - Consumers prefer “pull” consumers with the right
promises. information rather than information helps them
- Business has “push” information from move independently
less control over brands. (case 1,2) through the shopping
the information -Crowd-based power: journey, creates trust and
that consumer Empowered consumers are increases their loyalty.
use and circulate actively sharing their views, - Keep promise and act
to make and as a result are becoming transparently (42%
decisions. more involved in the consumers will tell friends
- Family and development of products and and family about a
friends, services. (case 3). positive experience, but
consumer  Such power has become a only a third will talk about
reviews and force in the consumer their experience when
independent market, going beyond they are dissatisfied –
experts are the reviews and Figure 3).
most trusted recommendations into co- - Manage the reputational
sources of creation. risks associated with
information for social platforms by
customer now. establishing social
command centres to listen
to conversations, engage
with consumers and help
to share positive stories
beyond the most valued
consumers.
Case study:
1. ASOS: The #AsSeenOnMe campaign encourages consumers to share photos of
themselves wearing the retailer’s clothing and footwear via Twitter, Facebook
and Instagram or upload them directly via the Asos.com website. Consumers can
browse through the images on the #AsSeenOnMe channel and purchase directly.
2. Coca-Cola: Coca-Cola launched its first TV commercial created with user
generated content. It features content generated by a competition that challenged
teenagers to submit short video clips “sharing what it feels like when they take a
sip of Coke.”
3. Lego: Lego Cuusoo is a crowdsourcing platform where people post their Lego
creations. If the creation gets more than 10,000 supporters, Lego will
commercialise it and the creator will receive royalties.
2.2. The path to purchase has changed with more opportunities for business.
No. Reality Reason Solution
1 - Traditional - Consumer are enabled by - Decide on the appropriate
purchasing path digital technology and engagement approach
has changed: extensive information whether it is being actively
 In the past: sources, so they can engaged in the
consider what is choose how engaged they conversation, monitoring it
on offer. want to be across the or simply ignoring it
 Now: star with different touch points of
an idea, a need their path to purchase.
and browse
online to refine
and locate what
they are looking
for.
2 - Two additional - At the end of the journey - Adjust the marketing mix to
phases have now consumers have access to account for new channels
been added to networks and and the extended path to
the traditional communication tools to purchase, with less direct
customer share their experience with branding and more
journey and others who themselves management of unbranded
have helped to might use this information content on social platforms
create a ‘cycle’. to select a product or a and communities.
(Figure 4) service  Customer - Gain a deeper
- The supply- journey is more of a circle understanding of
driven world is consumers, including their
becoming a behaviors and the value
demand-driven. they derive from products
and services.
- Help consumers share
content on brands or
businesses but also to create
and curate their own.
- Adopt tools to shorten the
lag time between a
consumer action and a
targeted response
Case study: Ford: The business introduced initial elements from the strategy around
this year’s Champions League final when it worked in partnership with a social media
agency to promote the European launch of the Mustang. Ford integrated all consumer
facing parts of the business such as customer assistance “live chatters” and community
managers alongside the communications teams and the team generating real time
content.
3 - Product and - New technologies enter the - Invest in monitoring and

service mainstream. understanding how
awareness: consumers become aware
 In the past: of their products and
broadcast media services beyond the
 Now: Internet traditional marketing
search, mobile channels.
access - Use social media to extend
- Products in store customer support beyond
aisles and on the product and transform it
shelves are into an experience
becoming part of
the global digital
marketplace.
- Transactions are
becoming
simpler,
seamless,
intuitive.
4 - Different level - High spending category - Empower all staff,
of engagement have higher activity levels. regardless of what level of
by category: - Categories are considered interaction they have with
(figure 5) as utilities (low average consumers, to make
 Consumers spending) having lower decisions and respond to
undertake a activity level. consumers directly to
higher number personalize the service they
of activities for receive
categories such
as sports and
leisure, major
home
appliances,
electrical
equipment and
packaged.
 Fewer activities
when planning a
purchase in
categories such
as books, DVDs,
music, going out
or buying train
tickets

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THE GROWING POWER OF CONSUMER

2 - The trust issues. - Customer become the - Develop content to inform

3 - Product and - New technologies enter the - Invest in monitoring and

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