This article consists of two parts:
Part 1 – discusses the trends in sales and communication channels leading to channel abundance.
Part 2 – covers how this channel abundance will impact the future, much more scattered, consumer landscape, and the implications for consumer understanding and consumer insights managers.
The last year we’ve seen that digital commerce and digital advertising has increased enormously. The way products are sold (more e-sales including direct sales) is changing. This also has repercussions for the supporting digital promotion/advertising. This phenomenon has accelerated enormously during the COVID-19 pandemic, and may continue to do so in the future. Besides this, there’s been a generic trend towards more digital advertising amongst others stimulated by less linear TV watching. It looks like technology will strengthen this trend in the coming years.
We foresee the following main trends that could lead to different behaviour compared to that experienced by sales and communication channels in the past and are no longer the standard: channel abundance. These patterns are interwoven – they don’t stand alone:
1. Individualized data driven sales and marketing will intensify
In the last few years individualized sales and marketing has become an accepted phenomenon. The rise of technology has driven this. The development of DMP’s (data management platforms) which are tools that power customer segmentation, audience targeting, the optimization of digital advertising and experience personalization by combining first- and third-party data, aiding in identity management, and supporting data enrichment. And more recent CDP’s (customer data platforms) which is a marketing system that unifies a company’s customer data from marketing and other channels to enable customer modelling, and optimize the timing and targeting of messages and offers. DMP’s are working with personas and look-a-likes (and anonymous entities such as cookies, devices, and IP addresses), to bring the right message via efficient digital advertising. Meanwhile CDP’s (which are using personally identifiable information) aim to close the deal with optimized messaging and offers. It means that now individual customer’s journey is optimally influenced making use of AI-technology. Working with personal data implies that companies need to have implemented a solid and transparent GDPR-policy.
2. Purchase decision will be much more driven via social media and digital assistants
Social media has a strong influence on purchase decisions. As smartphones get smarter and social networks become more sophisticated, it’ll become easier for consumers to share their opinions about products and services. Companies can’t afford to ignore these conversations. They should invest in ways to listen in on—and, just as important, generate—social-media buzz.
Digital assistants, like Alexa from Amazon, will influence brand choice. If a consumer asks the digital assistant to order a Coke, it’s upon the digital assistant to choose the brand. The digital assistant can select the brand the consumer is loyal to or the brand being promoted. This means for companies must understand the AI technology the digital assistants are applying and how to influence digital assistants and consumers.
3. IoTs (Internet of Things) and wearables will intensify
The IOT and the embedded SIM (eSIM is a digital SIM that allows you to activate a cellular plan from a carrier without having to use a physical SIM card and offers much more flexibility) are creating an exciting new phase of the connected world. Laptops, phones, fitness wristbands, televisions, security sensors, appliances, utilities and more will converge into an easy-to-control, totally interconnected environment. The arrival of the eSIM—embedded in devices, able to be network agnostic as they automatically seek the best connectivity and tariffs—significantly seeds the arrival of the IoT. CSP’s (Communication Service Providers) as well as disruptors, are coming with innovative software and hardware solutions on top of their current customer knowledge, such as Amazon and Apple are competing to become the single, preferred digital provider to the smart home. The IoT in smart homes as well as all kind of wearables will generate an enormous wealth of data. This can inform hyper-personalized sales and marketing in a hyper connected world. But there’ll be an enormous amount of consumer behavioural data accessible.
What does the above mean? How will this have an impact on the current landscape for the consumer? Where consumers buy their products, how can you reach consumers via media and the different means to influence the final purchase decision. Part 2 discusses the implication of this future scattered landscape.
Part 2 of this article will be published on Monday, 9 November (ed.)
