The [not so] new digital consumer

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This presentation is designed to highlight key shifts in our use of technology and explain what this means for businesses today. The presentation draws upon cyberpsychology in particular to explain people's attitudes towards and motives for using new digital tools, technologies and platforms especially facebook and other social media.

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© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

The new digital consumerWhat businesses need to know and why Eleanor Barlow, Managing Consultant3rdMarch 2011

DIGITAL CHANNEL TRANSFORMATION

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

You’ve gotta be in it to win it…but in the right way

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Behaviour ImplicationsTechnology

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Behaviour ImplicationsTechnology

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Technology facilitates human behaviour.

We continuously evolve technologies to better suit our needs.

New Internet enabled technologies allow us to relate, communicate, buy, sell, share and collaborate more quickly, easily and on larger scale than ever before.

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Social network platforms

Wikis

Sharing/book marking sites

Online forums/virtual communities

Blogs & micro blogs

Content creation & collaborationSocial

media

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

What does this evolution mean?

==

= New digital channelsFor businesses

=More (or better) ways of doing what we’ve always done

For users

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

What once seemed simple… …has become increasingly complex.

But most businesses aren’t structured in the right way to support this evolution

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Behaviour ImplicationsTechnology

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Interaction and consumption via closed networks is increasing

Facebook is fast becoming an all encompassing personalised portal to the digital and non digital world.

Facebook traffic outpaced Google for the first time in March 2010Facebook passed the 500 millon user mark on July 21, 2010Source: Hitwise, June 2010

“Facebook is now ‘This place where 50 per cent or more of our customers live online, where a

quarter of all US ad impressions are – if we don’t go there I’ll be

fired’”. (Michael Lazerow, Wired, Feb 2011).

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Searching for information or advice via known & trusted contacts will always win out

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

We are developing our digital identities

Aspirationalself

Actual self

True self

Eleanor Barlow

Digital Customer & Channel Transformation

“I am linked therefore I am.” (Gergen, 1973)

Some Social Network Sites, provide us with an environment where we can construct a very carefully moderated version of ourselves - our Aspirational self (Zhao et al. 2008)?

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

As we continue to digitise we find new ways to ‘show and tell’ who we are…

Source http://www.bized.co.uk/

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

…what we do, what we like, what we buy, where and how

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Channel me: ‘the world will come to me how, when and where I choose’

Eleanor Barlow

Digital Customer & Channel Transformation

Driven by accurate and seamlessly integrated data

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

We want a natural and intuitive experience facilitated by invisible technology

“Any sufficiently advanced technology is indistinguishable from magic.”Arthur C. Clarke

Eleanor Barlow

Digital Customer & Channel Transformation

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

“Fundamentally, privacy is about having control over how information flows. It's about being able to understand the social setting in order to behave appropriately. (boyd, d. 2010. "Making Sense of Privacy and Publicity." SXSW.)

But…issues of trust, control and privacy are still important

Eleanor Barlow

Digital Customer & Channel Transformation

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

Behaviour ImplicationsTechnology

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

We must create solutions which support customer behaviours

Identity development

Discovery & opinion

Control

‘Channel Me’

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

You must know your audience…properly

ONLINE vs. OFFLINE CHANNEL

DEVICE

Demographics Attitudes & Motives

Salience

Location

Context

Then Now

Demographics Attitudes & Motives

© 2011 IBM Corporation

IBM Global Business ServicesBusiness & Customer Transformation

Eleanor Barlow

‘Social’(explicit & implicit)

Automated & ‘intelligent’

(implicit)

User defined/Driven(explicit)

Online and offline behavioural data (web analytics/business analytics/marketing data)

Contextual data (e.g. browser, device, time, location etc)

Previous product purchase information(online &/or in store)

Attitudinal datae.g. sign up/survey data

Social network profile data

Blogs/customer reviews/recommendations Customer profile data

e.g. demographics, preferences

Explicit data = provided explicitly by the userImplicit data = derived by tracking users behaviour whilst using a site/portal

Use all customer data intelligently to provide a seamless and highly personalised experience

eleanorbarlow@uk.ibm.com

Thanks!

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