Me, my life, my wallet2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member frms of the KPMG network are affliated.2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member frms of the KPMG network are affliated.
Me, my life, my walletMe, my life, my walletThe multidimensional
customer
In an era dened 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 of
understanding how and why people make decisions.
ou already know that customer
behavior is changing. Power
has shifted from companies to
consumers, the mobile phone
has become the remote control
of our lives, trust in institutions and traditional
advertising has diminished. Customer trade-offs
and decisions are more opaque and moving faster.
You’re already aware that the structure
and composition of industry has changed.
New entrants with radically new business models
are enacting disruption across the value chain,
reshaping ecosystems from sector to sector.
Meanwhile, company lifespans are shrinking
and the paths to billion-dollar valuations
are accelerating.
All these challenges are well documented
across business media, research reports and
conference presentations. But how should you
use this information to understand not only where
your customers are today but where they’ll
be tomorrow How can you rethink the basis
of competition and pivot your operations and
business models to win in the battle for growth
It’s time for a new approach. One that employs
a multidimensional framework to engage what is
now a multidimensional consumer.
Genesis of our ndings
For several years, we’ve worked shoulder to
shoulder with clients to understand customer
attitudes, behavior and expectations in our
present era of disruption and uncertainty. Faint
signals of change grew louder and bigger patterns
began to emerge beyond one individual sector,
building a sense of urgency and leading to our
belief that we’re witnessing a structural change,
not a temporal one. As our teams constructed a
new way of thinking about a changing customer,
we embarked on a multifaceted research program
to validate our thinking and bring to bear the voice
of the consumer.
Combined with the extensive, worldwide
experience of KPMG’s network of member
firms, this has enabled us to identify how best
to engage the 21st-century consumer, and our
approach provides a tangible framework to help
companies identify, understand and respond to
today’s changing customer.
Five Mys
Presenting the Five Mys — a framework to
help navigate the complexity of consumer
decision making
The underlying drivers of human decision
making have become exponentially more
complex in recent years. Yet transactional data,
traditional market research and demographic
profiles alone are proving inadequate to explain
not just what customers are doing, but why.
As a result, many of our clients have found
themselves out of step with a changing, more
informed and more empowered customer.
They’re struggling to understand customer
motivations and how these translate into new
products and propositions, new services or ways
of doing business and, crucially, how they should
align their organizations to keep driving growth.
We start by taking an outside-in view of
customer behavior that enables companies
to understand the multiple layers and related
calculus of human decision making.
And our research has led us to focus on
five key dimensions of customer behavior —
motivation, attention, connection, watch and
wallet. Considering any one of these dimensions
in isolation tells only one aspect of a customer’s
story. Together, however, they enable companies
to navigate the complexity of consumer decision
making, and build a richer understanding of
changing attitudes, needs and behavior.
01 My motivation Trust, authenticity and social
values are critical but intangible motivators of
the choices today’s consumers make.
02 My attention The fight for consumer
attention has never been more intense,
exacerbated by unprecedented volumes of
content at our fingertips.
03 My connection Today’s technology
connects humans to information and each
other 24/7, driving shifts in our social
interactions and behavior.
04 My watch The companies that understand
the constraints of time and anticipate how that
changes across life events are best placed to
engage customers in the moments of greatest
impact and to meet their needs head on.
05 My wallet How consumers adjust their
share of the wallet across life stages and
pivotal life events is changing, creating a ripple
effect of change across not just one, but all
categories to which they allocate their money.
In the first part of this report, we explore
each of the Five Mys in detail, illustrating how
they contribute to a deeper understanding of
the changing customer and potential impacts
on the customer wallet. Based on our in-depth
research, we discuss how these forces manifest
across different generations and in different
parts of the world.
Customer wallet
Introducing the customer wallet — the reality
of how we spend and save
Y
2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member rms of the KPMG network are afliated.The three dimensions of how
customers make decisions
Until now, there has not been
a compelling, comprehensive
account of how to understand
customers or consumers as the
real living, breathing, complex
human beings that they are.
The holistic view of me as a
customer can be gathered by
understanding three key
dimensions to know
me better.
Five Mys
My motivation,my attention,
my connection and mytrade-offs between time
and money
While potential earning power and disposable
income have long been used in segmentation
and in determining customer attractiveness,
the forces that open and close our wallets are
undergoing significant change.
When, where, how and why we spend is
becoming more complex, influenced by a greater
variety of forces and greater availability of choice.
It’s becoming less predictable, as demographic
and economic shifts challenge the accuracy of
legacy earning and spending trends. And the
trade-offs we’re willing to make across different
categories are constantly evolving, powered by
mass adoption of new technologies and the rise
of the on-demand economy.
The complex, unpredictable and changing
nature of our wallets calls for a new way of
thinking about the interrelationship among
income, borrowing, savings and spend. We need
to consider this mix in the context of why we’re
making the choices we are and how the mix
changes across generations and is influenced by
pivotal life events.
Later in the report, we focus on the customer
wallet, a framework which, when used in concert
with the Five Mys enables companies to go
beyond the limitations of socioeconomic profiles
and credit scoring.
Generational surfing
Introducing generational surfing —
the unpredictability of our life patterns
For years, companies have relied on
assumptions about our life stage, using age as
a proxy, to determine our spending power, likely
needs and relative attractiveness as customers.
But things are no longer happening at the
same time, or in the same order, as with
Defning the Five Mys
My motivation – Characteristics that drive
behavior and expectations
My attention – Ways we direct our
attention and focus
My connection – How we connect to
devices, information and each other
My watch – How we balance the constraints
of time and how that changes across life events
My wallet – How we adjust our share
of wallet across life events
earlier generations. Life stages are shifting and
extending, and life events aren’t as reassuringly
predictable as they once were.
To help companies ride the waves of
change, we’ve developed generational
surfing, a fresh way of thinking about the
changing patterns of consumers’ lives and
anticipating their needs, behaviors, trade-offs
and choices as they move from one life stage,
or wave, to another.
In the third part of this report, we explore how
life events are “drifting” among generations and
reveal where our research has found new, pivotal
life events that introduce new forces on the
customer wallet.
Change isn’t looming in the distance. Instead,
it’s the reality being faced by companies all over
the world and no company, regardless of maturity
or sector, is immune from these forces and
competitive pressures. It’s demanding fresh ways
of thinking about the customer.
The Five Mys, customer wallet and
generational surfing combine to provide that
fresh thinking, bringing companies closer to their
multidimensional customers, meeting them
where they are and on their terms, and helping
them navigate the change and disruption of both
today and tomorrow.
Influencing
events
Events of my formative years that shaped my
values and influencemy behaviors
Life stage
Where I am in my life stage journey
Source: GMC
2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member frms of the KPMG network are affliated.。