Understanding the Intent of the Customer P. McElligott – 40 pt. assignment Fall 2020 What happens if I peruse the TJMaxx™ website for purses, but I do not immediately decide to buy? Most of you already know what happens: Thanks to those little things called “cookies”, retargeting begins. The next time I log-on to my Facebook site, I am confronted by online ads for those purses I viewed earlier, and sometimes the content marketing suggests that I may have forgotten to complete an order; or, the next time I check email, TJMaxx has reminded me once again that there are only “5 of that style” left in stock. And, it doesn’t stop there. Nordstrom and Macy’s may also target me with an online ad for their purses. Or, the official Dooney and Bourke™ website enters my personal, online channels with its own ads and promotions. The same probably holds true if I happen to Google and view a Jeep Cherokee. Before the day is over, I am deluged with messages from local dealers, and I may even be the lucky recipient of one of those pop-up chat rooms that wants to further personalize the connection between a Jeep vendor and me. While TJMaxx and others know that I shopped for purses; and while Jeep knows that I window shopped for a Jeep Cherokee, they really don’t know my intent. Perhaps I am a bonafide, prospective customer with the funds to spend on these particular products. Perhaps I was asked by a good friend to take a look at what he/she is thinking about purchasing, just to get my opinion. Perhaps I have already purchased, and, I have experienced some sort of buyer’s remorse, cured only by some reassurance that I did indeed get a good deal on my sunken investment value type purchase. Fortunately for marketers, the emergence of new technologies (new software) now provides a much better picture of my intent. According to Tanzena Vega who writes for a fast forward blog called BITS (Business, Innovation, Technology, Society), marketers – within seconds – now have a better understanding of one’s intent, thanks to Big Data (those large databases that collect, organize, and manipulate data). This results is a more prescriptive, custom type of promotion directed at each individual. If you just purchased a Jeep Cherokee, there is most likely no reason to send you an online ad about features, colors, benefits of a new 2018 Jeep Cherokee; or, even an ad that differentiates this particular SUV from the Honda CRV (Vega). However, the marketer may want to send a “thank you” email with a note about why you made a great choice. “The amount of information available to advertisers has increased exponentially, from credit card and telecommunications companies and even from brands. Instead of using old retargeting methods, such as showing someone an ad for a car that person just viewed online, brands are using new technologies to help them decide, often in advance, whether a consumer should be shown an ad for, say, a luxury car or an inexpensive car, or any car at all….In milliseconds, fast technologies can determine whether a person is in the market for a new car or has bought a car recently, yielding different types of ads. One ad could focus on a new vehicle that a company is trying to promote to energy-conscious drivers, while another might focus on accessories for the car.”(Vega) Your author introduces you to the traditional “funnel” approach to the consumer decision making process. This is still widely used today because disruptive technologies do not necessarily wipe-out a method immediately. It usually takes several years, and often other external environmental circumstances combined with new technology trends/forces will also interfere and make the change. With the funnel approach, the consumer begins with understanding he/she has a problem to solve, and usually collects information on a set of familiar brands. Then, there is a process of elimination (without any new brands added to the choices) before settling on one brand to purchase. Problem Recognition Brands: Ford Escape Jeep Cherokee Hyundai Santa Fe Toyota Rav-4 Buick Encore Create Evaluation Criteria Select Consideration Set – usually two or three brands Purchase With a purchase that has a sunken investment value (such as a vehicle), there is usually testdrives and word-of-mouth discussions with family and friends (particularly family). In the traditional approach, there was seldom any change from the original few brands under consideration. As you can see by the phone example in the textbook, the consumer will evaluate each brand using a set of evaluative criteria. Usually two choice emerge toward the end (the Consideration Set), and then the buyer makes the final choice. The online shopper’s intent may be different, depending upon his/her current location on the Consumer Decision Journey (CDJ). Following is a graphic of the CDJ developed by well- known consulting firm, McKinsey & Company. ZMOT 1MOT 2MOT To further explain, the CDJ, Google named the stage of the CDJ cycle where the consumer is gathering information: the Zero Moment of Truth (ZMOT). This is the active evaluation period where the consumer may be adding or subtracting brands from his/her consideration set of brands. Let’s say, for example, a person is shopping for a new SUV. Initially, he is considering the Jeep Cherokee and the Chevrolet Equinox. However, during the evaluation stage, the Honda CRV becomes a strong contender, as does the Ford Escape. By the time the shopper decides to buy, the consideration set may include brands that were not considered in the beginning. The Jeep Cherokee is dropped from the mix, and now the contenders are Honda CRV, Chevrolet Equinox, and Ford Escape. The convenience of obtaining quick and reliable information online has changed the way the decision is made. The marketers for Ford Escape and Honda CRV intentionally and successfully attracted the attention of the SUV shopper during ZMOT. Google partnered with an organization known as Shopper Science to gather intel on the shopper experience during ZMOT Following are some results: 88% of U.S. consumers now engage in the "zero moment of truth" prior to making their final decision In 2011 consumers consulted an average of 10.4 new media or traditional sources before purchasing, 2x the sources consulted just the year before ZMOT sources like search engines rank high in the degree of influence they have in the shopper's decision making (Consumer). Whether you are a B2C marketer or a B2B marketer, it is important to prepare for the ZMOT. How do you achieve this? Client/consumer product/service reviews are visible; What do yours tell the buyer? Prospective buyers can access case studies about your products; Value and utilize Search Engine Optimization (SEO) as a way to connect with prospects online (just about every consumer search begins with an online search); Think “video” because during ZMOT, consumers/clients are also watching videos to help with their purchase decision (Hanington). Intel – attach cookies to prospects for SUVs, in general. Referring to the previous CDJ diagram, the First Moment of Truth (1MOT) occurs when the marketer experiences conversion. The customer decides to buy the product. The Second Moment of Truth (2MOT) occurs during the time period that follows fulfillment of an order. In today’s fast-paced marketing world, it is instrumental to understand the intent of the online consumer; but also the “value” of that intent. Mr. Sheldon Gilbert, founder and chief executive of Proclivity Media, a company that specializes in advertising technologies explains that the data collected today assist marketers with determining the value of one customer compared with another. “If a consumer has a 10 percent chance of making a $50 purchase, that consumer can be valued at $5, Mr. Gilbert said. If a person’s dollar value is lower than the cost of marketing, an advertiser may opt not to show an ad to that person, he said“(Vega). Consumer Insights, Micro-Moments. “The Zero-Moment of Truth Macro Study”. Google and Shopper Science. 11 April 2011. Hanington, Jenna. “The Zero-Moment of Truth: What is it and Why You Should Care” . Salesforce Pardot. 6 November 2012. Retrieved online 31 July 2017. Vega, Tanzania. BITS 1. After reviewing the very important chart by McKinsey, how does the CDJ for online purchases differ from the traditional consumer decision making process developed by your textbook authors? (10 points) 2. What are the pros and cons of using tools that offer a more prescriptive solution to a consumer’s needs? (5 points) Pros Cons 3. If you are a manufacturer of professional wireless hand tools (such as drills or electric saws used by skilled tradesmen in commercial construction work) (1) how do you Where will you show-up online for these buyers prepare your marketing efforts so that you show-up in the ZMOT stage for construction company procurement officers (the buyer) who are ordering a sizeable quantity of tools for various building projects? (2) What marketing efforts are you likely to engage in? (3) What media channels are important? (20 points) 4. In the case study, Mr. Sheldon Gilbert talked about the “cost of marketing”. In your own words, explain what he means by this term, and provide an example of how he uses it to provide prospects online ads. (5 points)