Part 2: DNA of the New Age Consumer

In my previous blog [Decoding New Age Consumer] the intention was to bring awareness about the transformation brought by the advent of newer technologies in the retail industry. The changing buying pattern is primarily being driven by “New Age Consumer” and the availability of myriad branded products to choose from, adds to complexity. The adaptation of mobile phones, tablets and other smart devices has resulted in the convergence of market places, shifting power from the seller to the consumer.

Let us take a look at some mind boggling numbers that show how new age consumers have changed the retail landscape:

• Worldwide B2C e-Commerce sales amounted to more than 1.2 trillion US dollars in 2013.
• Current e-Commerce statistics state that 40 percent of worldwide internet users have bought products or goods online via desktop, mobile, tablet or other online devices. This amounts to more than 1 billion online buyers and is projected to grow continuously.
• Mobile e-Commerce is ramping up faster than online e-Commerce, now making up 4 percent of total retail sales. 
• 48 percent of all Internet users come from just five countries (Brazil, Russia, China, India and the US)
• The average iPhone user only spends 45 percent of his on-device time making voice calls.

So what is the DNA of this new age consumer? 

• They belong to multi-tasking phenomenon; there is a constant consumer switch from messaging apps to social networking to e-mail to video-sharing among other communication channels. All newly introduced promotional media are sampled by the consumer in real time and engaged in one’s own space.
• They will look purely for brands that will offer the best value and best buying experience. 
• They rely on their smartphones and social media for promotions and product information.
• They look forward to coupons and offers on their smart phones, that will help save them money
• They also rely more on word of mouth recommendations. Any brand that is not being shared in a positive light within their social network will have a lot of catching up to do.
• They look forward to speed delivery and 24x7 customer service across communication platforms

Some MNC retail brands and their marketers are gearing up to this new age consumers and trying to leverage new technologies and data analytics that will help devise better strategies. But many retail brands and traditional retailers still need to up their ante. This will help them garner more mind share and thereby garner higher market share. The time has come to adopt new rules of the game, but adapt to new game thrown by the competitors and also change the way the game is played.

Decoding the New Age Consumer

The rapid penetration of broadband, advent of new age mobile devices and a zest for embracing all forms of online communities and social media have resulted in paradigm shift the way consumers perceive brands and their buying behavior. The impact of this on retail industry is profound. They must explore newer ways of gaining mind share and thereby the market share. The need is to understand complex consumer journeys and intelligently engage them in real time with targeted campaigns. This blog series titled “ Decoding New Age Consumer” will help retailers to see the advantages of adopting right approach - Consumer Insights, Analyzing Buying Patterns, Technology and Communication Strategies - to establish sustainable brands no matter where consumers are and how they buy.

Part 1: Dawn of New Age Retailing

From sprawling malls that sell luxury brands to 5-inch smart phones that bring multiple brands right to your fingertips, the retail industry has witnessed some tectonic changes over the last few years. Customer behavior has changed drastically on a global level.

Consumers are now increasingly demanding the best in class service at all times and brands ignoring this do it at their own risks. The change in consumer behavior has been triggered by advancements in technology; the booming rise of smart devices and penetration of social media. Today, they demand instant response, look for personalization and are free from the ties of brand loyalty. The challenge for retailers is to build and sustain brand loyalty despite this awareness as the demand from consumers is just bound to become more complex in the coming decade. Retailers have to be geared up for these constantly changing demands.

The sudden rise of mobile-commerce, new modes of shopping, and ever-decreasing profit margins are driving retailers to explore new strategies to give customers what they want.

Today, with over 1.75 billion smartphone users globally, consumers will generate high volumes of data that can help retailers make better decisions for better ROI. This data can help retailers focus on key priorities, such as increased growth, operational efficiency and better customer experience. This requires a new approach considering the lines between traditional and new format of retailing are fast blurring, giving technology the opportunity to be a great enabler.

Imagine this: A customer walks into or walks by a branded retail store with her smart phone. The in-store Bluetooth setup picks up the customer number connects back to BI server. The backend analytics engine runs a real time analysis of her online buying behavior and sends out real time alerts on discounts to the customer, on all relevant products.

The consumer behavior pattern and insights that can be acted upon using data generated by online sales give retailers with new business opportunities and revenue streams. It is clear that seamless blending of customer activity across multiple channels can be truly driven by technology. Technology helps connect the traditional point of sales in a physical store to online and mobile platforms. A number of opportunities are waiting to be explored by retailers by leveraging the power of technology.

It is but ironical that as the retail world gets sophisticated and more complex the consumers demand solutions that are simpler; only technology can help achieve this feat. An able technology partner can help retailers in this journey by addressing the challenge of seamless integration and analysis of data across various channels and thereby allowing the retailers to focus simply on what they do best: being retailers – focusing on one’s strength is the best model for retail business operation.

The changes are taking place at a rapid pace, and so with the right mix of smart technology, brick & mortar and also online retailers need to get ahead of the game and deliver the right experience to consumers at all times. The key to success will lie in being obsessive about one’s own customers and leverage technology not just to be a winner but to be seen as the reliable brand.