CONNECTED PRODUCTS WILL MAKE YOU SELL MORE. REVITALIZE YOUR SALES FUNNEL WITH POST-SALES CONNECTED EXPERIENCES.
KEY TAKEAWAY FROM THIS ARTICLE: THE ROLE OF CONNECTED PRODUCT EXPERIENCES IS ESSENTIAL FOR ANY BRAND'S FUTURE.?
We attended the last SXSW in Austin, where we met and talked with many brilliant professionals from different parts of the world. Last year, we focused on AI, learning about its impact on the world and our customers, and we were there to see how to better transform Connect Reply to handle the challenge. We met Greg Brockman and many other AI superstars. In the rest of 2023, we started a new Lab on AI for IoT, created a new specialized business unit, and are getting ready to launch our first asset—a sophisticated customer knowledge system that combines AI, advanced profiling, and trends to create segments for dynamic targeting with activations and marketing automation. We’ll come up with a shorter, catchy name for it—promise.?
THIS YEAR, WE EXPLORED HOW SHIFTS IN CONSUMER BEHAVIORS AFFECT HOW OUR CUSTOMERS AND PARTNERS PROMOTE THE PRODUCTS WE CO-CREATE.
Fact 1: Consumers are changing the way they buy products and the way they build trust in brands.?
Consumer buying behaviors are evolving. They're focusing on less quantity and more quality, with a preference for more personalized and human interactions. Indeed, 58% of US consumers believe that interactions with salespeople or customer service departments are enhanced by the presence of an actual person. This shift highlights how consumers are increasingly concentrating on what matters most to them, influencing their desires, needs, and perceptions of value
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Social media have become a predominant channel, where purchasing habits are undergoing significant changes. Purchases have become faster and more impulsive, with quicker sales cycles heavily influenced by the fast-paced dynamics of social media. Interestingly, 50% of consumers engage in brand research after their initial purchase.?
This trend emphasizes the importance of building trust between consumers and brands post-purchase. As the saying goes, 'The first sale opens the door, but that’s where the hard work starts.' The sales funnel has evolved, assigning as much importance to post-sales as to the initial sale. This fundamental shift draws attention to the significance of trust-building and maintenance in the after-sales phase.?
Consumers are simultaneously seeking value and indulging in premium products and services. Roughly two-thirds are opting for more affordable options, such as cheaper brands or private-label products. In Europe, a significant 84 percent view the quality of branded products as comparable to private labels. Concurrently, 44 percent of consumers globally, including 60 percent of Gen Zers and millennials, express intentions to splurge, especially on experiences or purchases that offer immediate gratification, such as dining out or travel.?
Fact 2: Brands need to rethink how they interface with consumers, focusing on building long-term trust rather than just building up to the sales moment.
Marketers have traditionally encouraged consumers to embrace not just their products, services, or functions, but the 'concept' of their brand, symbolizing emotions and lifestyles. Consumers are increasingly aligning with brands that reflect their values. However, this approach has its risks: consumers are also quick to vocally reject brands that fail to match their values.
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Professional marketers, aptly termed 'marketing truths specialists,' acknowledge the enduring relevance of the classic AIDA funnel (Attention -> Interest -> Desire -> Action). However, they recognize its evolution into a more dynamic loop or flywheel. In this transformation, post-sales services gain equal importance to marketing and sales. With the shift toward a digital-first landscape, where consumer voices are as prominent as corporate branding, the funnel extends to include Adoption, Retention, Expansion, and Advocacy. Thus, AIDA evolves into ASDAAREA. While this acronym may require more refined branding, the concept it represents is sound.?
CONSEQUENCE: ANY BRAND NEEDS TO DESIGN WAYS TO CREATE AND MAINTAIN TRUST OVER TIME, AS MANY DON’T KNOW THEIR CUSTOMERS WELL.?
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Talking to customers after the initial sale is becoming increasingly crucial. Many manufacturers of great products don't have a direct connection or way of communicating with their final customers. Often, the distribution channels own that relationship. Connected experiences offer a subtle but elegant way to establish this communication channel. A connected experience serves not just to build brand equity, drive conversions, and increase consumer lifetime value but also to create opportunities to develop trust.?
Opportunity: Incorporating an internet connection into your product, typically accompanied by a digital experience such as a mobile app, unlocks a wealth of opportunities.?
Many brands have recognized this trend and are connecting their products to the internet. Global data shows that the number of IoT connections has tripled over the past five years, with projections suggesting another threefold increase in the next five years, reaching nearly 40 billion connections by 2028.
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Conclusion: Connected products offer a tremendous opportunity to revitalize your sales funnel, creating marketing activation and automation opportunities, additional services, and a deeper understanding of your customers. Connected experiences are not just about generating new revenue streams; they also lay the groundwork for building a future consumer trust platform.?
SOURCES:
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-world-of-ands- consumers-set-the-tone?
https://www.edelman.com/trust/2023/trust-barometer/special-report-brand-trust/collapse-purchas e-funnel?
(Mintel, Global Consumer Trends 2024 report). + the people at SXSW?
Campaign monitor (https://www.campaignmonitor.com/blog/email-marketing/the-marketing-funnel-is-dead-and-thats -good-news-for-marketers/)