Redacted Case Study Consumer Product Customer Journey Prepared for: 1 Project Overview Executive Summary Agenda Phase One - Qualitative Martec will present their findings from all Phase Two - Quantitative three phases of this project Phase Three - Qualitative Conclusions & Recommendations 2 Icons made by Freepik from www.flaticon.com Project details and background information PROJECT OVERVIEW 3 Study Methodology This presentation outlines the findings from all three phases of the study Module I Module II Module III In-Depth Phone Interviews Quantitative Survey Online Bulletin Board Fully test and flesh out issues Customer journey mapping and In-depth qualitative exploration and questions to be asked of needs-based segmentation and of key issues from quant phase customers in Quantitative phase preliminary personas to drive action from insights 4 Study Objectives What was the goal of this study? Brand A requires a detailed understanding of the consumer purchase decision making process (customer journey) and the types (segments) of customers in the process. Key objectives include the following: • Brand A Product Customer Profile • Consumer Product Buying Decision Purchasing Process • Decision Drivers & Key Purchase Criteria • Attitudes & Industry Trends Insights will provide opportunities to optimize marketing approaches, identify potential next gen solutions and ideas, and test management hypotheses regarding the business. 5 Consumer Interviews PHASE ONE - QUALITATIVE 6 Consumer Experiences Trigger events Consumers approached their The following influences • Broken hinges purchases in a variety of ways consumer decisions: • Remodeling • Store Shelf Retail (e.g. Home • Online reviews • Cracked product Depot) – 3 • Online research • Child usage • Online/eCommerce (e.g. Amazon) • Friends & Family • Hygiene concerns – 3 • In-store customer assistance • Online Retail (e.g. Lowe’s website) – 0 People buy a new product in Product purchases were • eCommerce research to in-store most often initiated by buy – 3 response to an event, but people looking to replace a • Trend toward online their decision is increasingly broken item. education and/or informed by the internet. comparison before purchasing in-person Phase One 7 Purchase Journey One common purchase The following are the most journey: important things to most 1. Old product breaks consumers when selecting a 2. Several weeks pass product: 3. Do some online research • Comfort 4. Already at a store that • Durability sells the item • Functionality 5. Examine available • Appearance options • Cost (often a simple price range 6. Make a purchase e.g. “$10 and below is too cheap but I wouldn’t want to spend Consumers focus on over $35, that’s the limit.”) several packaging and web-page components including images and description of features. Phase One 8 Branding Brand awareness • Half of consumers had heard of Brand A, though fewer had heard of their subsidiaries. Brand impressions • No strong opinions but thought that Brand A had a variety of options at a lower price Recommendations & Requests include: • Better pictures or videos online • Highlight the differences between brands Brands Purchased: • 6 Brand B – 2 slow close, 1 quiet close, 1 child friendly, 2 no features • 1 Brand A – slow close • 1 Brand C – no features • 1 Brand D – no features Phase One 9 MOTIVATIONS Consumers are driven to pursue a product purchase due to a variety of circumstances. Broken Item Children “It was several years Renovation “The old product was old and deteriorating “I was updating my loud and heavy… My …This unsightly crack home.” daughter could not use was developing.” it.” Products are typically seen as a necessary, event-triggered purchase. Most people did not purchase a new one unless their circumstances required it. Phase One 10 What types of consumers are purchasing products? Caring Crafty Just the Concerned with Parents DIYers Basics Cleanliness Consumers who are Consumers who Consumers who buy Consumers who motivated to purchase a perform their own new items out of purchase a new product new product that will renovations and buy necessity and aren’t regularly for sanitary better suit the needs of new products to match looking for any reasons their children particular functions Phase One 11 Unmet Needs What would make their lives easier? • More reviews • Clearer packaging descriptions – especially ones that pointed out benefits for groups like children and the elderly • More pictures online • Videos that demonstrate features • Marketing that pointed out differences from other brands • Several participants were looking for a side-by-side comparison or matrix that outlined key differences between brands • If the manufacturer was on Amazon Phase One 12 Online Survey PHASE TWO – QUANTITATIVE 13 Respondent Demographics Before we dive into our findings, here’s a quick snapshot of who we surveyed. Respondents were 46% male and 53% female Household income skewed lower, with over 50% making below $75k $25,000 or less $25,001 to $50,000 $50,001 to $75,000 $75,001 to $100,000, 17% 25% 23% 17% 7% 5% 6% $100,001 to $125,000 $125,001 to $150,000 Over $150,000 They skewed older in age 31% Most respondents had between a high school 28% diploma and a Bachelor’s degree High school diploma Technical school 24% or equivalent Bachelor's degree, Master's degree 2% degree 2% degree 30% 13% 6% 15% 32% 18% Less than a high school diploma PhD Other (please specify) 43% had children, 50% of the parents had children under 6 years old 18 to 27 28 to 36 37 to 51 52 to 70 Phase Two Q1, Q36-Q37, Q39-Q43 | N= 1051 14 Detailing the product purchasing process CONSUMER JOURNEY Phase Two 15 4 5 3 The Experience 2 Decision- Purchase 1 Debrief Information Making Journey Gathering Start How do they feel during this journey? Before we get started on this product consumer journey, let’s see how shoppers feel. We asked consumers to give us one word to describe how they feel during the product purchasing process. They generally feel content with this process— feelings of satisfaction, ease, and relief are associated. However, there are some consumers who feel frustrated, confused, or overwhelmed. Phase Two Q17 | N= 1051 16 4 5 Why does 3 The Experience 2 Decision- Purchase this journey Debrief Making begin? Information 1 Gathering 66% Purchase Reasoning The most common reason for purchasing the product is because the previous item was broken or damaged—hygiene, remodeling, and new house/apartment are secondary 29% 26% Slightly higher for parents (9%) 15% 6% For children I was moving into a new I was remodeling For hygiene/cleanliness The previous product was house/apartment purposes broken or damaged Phase Two Q19 | N= 1051 17 4 5 3 The Information Experience Decision- Purchase 1 Debrief Gathering Making Journey Start 2 57% say they would write Reviews & Recommendations a review on a product 39% were influenced by reviews or they purchased. recommendations. That 57% of people typically Reviews usually impacted their decision in the writes reviews for… following ways: • Having more details allowed them to make a better 43% POSITIVE EXPERIENCES decision 7% NEGATIVE EXPERIENCES • Good reviews are persuasive—they value opinions • A low star rating can lead to product avoidance 50% BOTH POSITIVE & NEGATIVE Phase Two Q20-Q23 | N= 1051, 410, 602 18 4 5 3 The Information Experience Decision- Purchase 1 Debrief Gathering Making Journey Start 2 The most common online sites for information Sources of Information gathering are Amazon and Home Depot. 44% looked for product information before their most Amazon 55% recent product purchase. The Home Depot 53% Walmart 45% The majority gathered information online. Lowe's 43% Target 28% Online 64% Bed Bath & Beyond 22% Menards 14% Retailer (in-store) 25% Ace Hardware 13% Friends/Family 7% True Value 9% Showroom 3% Manufacturer's Website (please specify) 3% Other (please specify) 3% Other (please specify) 0% I don't know 0% I don't know 0% Phase Two Q25-Q26 | N= 1051, 462, 297 19 4 5 Decision- The Purchase Experience 1 2 Making Debrief Journey Information Start Gathering 3 Stated vs. Derived Importance Attribute Importance Properly fits HIGH & Considerations Does not come loose When deciding on a product, the DECLAREDEasy to install KEY The right price Comfortable Durable key influencers are more Easy to replace The right hinge functional attributes (i.e. properly IMPORTANTEasy to remove INFLUENCERS fits, comfortable, durable, etc.). Matches the décor Hidden opportunities are more Box 2 Top The right material Attractive design cosmetic—like material, matching Closes slowly the décor, and design. LIMITED HIDDEN Stated Importance Stated Environmental and antimicrobial OPPORTUNITIES IMPACT Brand concerns are minimal. Environmentally friendly Antimicrobial agent materials LOW LOW Derived Importance HIGH Phase Two Correlation between attribute satisfaction & overall satisfaction Q15-Q16, Q27 | N= 1051 20 4 5 Decision- The Purchase Experience 1 2 Making Debrief Journey Information Start Gathering 3 64% Purchase Location Considerations 54% Price is top of mind 48% 45% when deciding where to purchase the product. 36% 30% The decision-making process is about price and convenience. Prices Convenience/Location Selection/Variety Familiarity with store Reviews/reputation Supporting a local business Phase Two Q28 | N= 1051 21 4 5 Decision- The Purchase Experience 1 2 Making Debrief Journey Information Start Gathering 3 Too expensive Getting expensive Too cheap Bargain 50% Pricing Considerations 45% The Van Westendorp pricing 40% Too Cheap: analysis illustrates consumer $5-$10 opinion on product prices. 35% 30% Point of Marginal The price point of marginal 25% Expensiveness expensiveness is the recommended price point: $27. 20% % of Respondents of% 15% The space highlighted in green 10% Point of Marginal ($22-$27) is the range of Cheapness acceptable prices. 5% 0% 0 10 20 30 40 50 60 70 Phase Two Q7-Q11 | N= 1051 22 Price ($) The 5 3 Experience 1 Purchase 2 Decision- Debrief Journey Information Making Start Gathering 4 Amazon 37% 28% Ultimate Purchase Location The Home Depot 17% 28% Walmart 13% Note: A quota was set so that 20% of our 20% Lowe's 10% respondents purchased online.