Me, My Life, My Wallet

Me, my life, my wallet KPMG Global Customer Insights kpmg.ie © 2019 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Me, my life, my wallet 3 The multidimensional In an era defined by uncertainty, the companies that get closest to their customers will emerge ahead of the pack. This begins with an “outside-in” view, building new ways customer of understanding how and why people make decisions. ou already know that that employs a multidimensional Five Mys customer behavior is framework to engage what is now a changing. Power has multidimensional consumer. Presenting the Five Mys — Y shifted from companies a framework to help navigate to consumers, the mobile phone Genesis of our findings the complexity of consumer has become the remote control decision making of our lives, trust in institutions For several years, we’ve worked and traditional advertising has shoulder to shoulder with clients The underlying drivers of human diminished. Customer trade-offs to understand customer attitudes, decision making have become and decisions are more opaque and behavior and expectations in our exponentially more complex in recent moving faster. present era of disruption and years. Yet transactional data, traditional You’re already aware that the uncertainty. Faint signals of change market research and demographic structure and composition of grew louder and bigger patterns began profiles alone are proving inadequate industry has changed. New entrants to emerge beyond one individual sector, to explain not just what customers are with radically new business models building a sense of urgency and leading doing, but why. are enacting disruption across the to our belief that we’re witnessing a As a result, many of our clients value chain, reshaping ecosystems structural change, not a temporal one. have found themselves out of step from sector to sector. Meanwhile, As our teams constructed a new way with a changing, more informed and company lifespans are shrinking and of thinking about a changing customer, more empowered customer. They’re the paths to billion-dollar valuations we embarked on a multifaceted struggling to understand customer are accelerating. research program to validate our motivations and how these translate All these challenges are well thinking and bring to bear the voice of into new products and propositions, documented across business media, the consumer. new services or ways of doing research reports and conference Combined with the extensive, business and, crucially, how they presentations. But how should you worldwide experience of KPMG’s should align their organizations to keep use this information to understand network of member firms, this driving growth. not only where your customers are has enabled us to identify how We start by taking an outside-in view today but where they’ll be tomorrow? best to engage the 21st-century of customer behavior that enables How can you rethink the basis of consumer, and our approach companies to understand the multiple competition and pivot your operations provides a tangible framework layers and related calculus of human and business models to win in the to help companies identify, decision making. battle for growth? understand and respond to today’s And our research has led us to It’s time for a new approach. One changing customer. focus on five key dimensions of © 2019 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Me, my life, my wallet 4 customer behavior — motivation, » 05 My wallet How consumers Customer wallet attention, connection, watch and adjust their share of the wallet across wallet. Considering any one of life stages and pivotal life events is Introducing the customer wallet — these dimensions in isolation tells changing, creating a ripple effect of the reality of how we spend and save only one aspect of a customer’s change across not just one, but all story. Together, however, they categories to which they allocate While potential earning power and enable companies to navigate their money. disposable income have long been used the complexity of consumer in segmentation and in determining decision making, and build a richer Defining the Five Mys customer attractiveness, the forces understanding of changing attitudes, that open and close our wallets are needs and behavior. undergoing significant change. My motivation – Characteristics When, where, how and why we » 01 My motivation Trust, authenticity that drive behavior and expectations spend is becoming more complex, and social values are critical but My attention – Ways we direct our influenced by a greater variety intangible motivators of the choices attention and focus of forces and greater availability today’s consumers make. My connection – How we connect to of choice. It’s becoming less » 02 My attention The fight for devices, information and each other predictable, as demographic and consumer attention has never My watch – How we balance the economic shifts challenge the been more intense, exacerbated by constraints of time and how that changes accuracy of legacy earning and unprecedented volumes of content across life events spending trends. And the trade-offs at our fingertips. My wallet – How we adjust our share we’re willing to make across different » 03 My connection Today’s of wallet across life events categories are constantly evolving, technology connects humans powered by mass adoption of new to information and each other technologies and the rise of the on- 24/7, driving shifts in our social In the first part of this report, we demand economy. interactions and behavior. explore each of the Five Mys in detail, The complex, unpredictable and » 04 My watch The companies that illustrating how they contribute to a changing nature of our wallets calls understand the constraints of time deeper understanding of the changing for a new way of thinking about the and anticipate how that changes customer and potential impacts on the interrelationship among income, across life events are best placed to customer wallet. Based on our in-depth borrowing, savings and spend. We engage customers in the moments research, we discuss how these forces need to consider this mix in the of greatest impact and to meet their manifest across different generations context of why we’re making the needs head on. and in different parts of the world. choices we are and how the mix © 2019 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Me, my life, my wallet 5 changes across generations and is attractiveness as customers. life events that introduce new forces influenced by pivotal life events. But things are no longer happening on the customer wallet. Later in the report, we focus on the at the same time, or in the same Change isn’t looming in the customer wallet, a framework which, order, as with earlier generations. Life distance. Instead, it’s the reality being when used in concert with the Five stages are shifting and extending, faced by companies all over the Mys enables companies to go beyond and life events aren’t as reassuringly world and no company, regardless the limitations of socioeconomic predictable as they once were. of maturity or sector, is immune profiles and credit scoring. To help companies ride the from these forces and competitive waves of change, we’ve developed pressures. It’s demanding fresh ways Generational surfing generational surfing, a fresh way of of thinking about the customer. thinking about the changing patterns The Five Mys, customer wallet Introducing generational surfing — of consumers’ lives and anticipating and generational surfing combine the unpredictability of our life patterns their needs, behaviors, trade-offs to provide that fresh thinking, and choices as they move from one bringing companies closer to their For years, companies have life stage, or wave, to another. multidimensional customers, meeting relied on assumptions about In the third part of this report, we them where they are and on their our life stage, using age as a explore how life events are “drifting” terms, and helping them navigate the proxy, to determine our spending among generations and reveal where change and disruption of both today power, likely needs and relative our research has found new, pivotal and tomorrow. The three dimensions of how Influencing events customers make decisions Events of my formative years that shaped my values and influence Until now, there has not been my behaviors a compelling, comprehensive account of how to understand Five Mys customers or consumers as the My motivation, real living, breathing, complex my attention, my connection and my human beings that they are. trade-offs between time and money The holistic view of me as a customer can be gathered by understanding three key dimensions to know me better. Life stage Where I am in my life stage journey Source: GMC © 2019 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Me, my life, my wallet The multidimensional customer Customer centricity Chasing

Load more