What is required for Brands to serve customers in social distancing era- Part 2?
- Anupam Ahluwalia
In my last blog I talked about variables involved in customer behavior for purchase decisions and arrived at list of consumer activities that form part of overall engagement associated with purchase.
I also concluded, that to effectively support end consumers, who wish to avoid exposure by visiting markets, it is not enough to offer a channel to purchase products. Instead strategies that enable all or most of listed engagement activities without requiring customer to leave his home as far as possible will be ideal.
In this blog, I detail out these activities to outline what may be required from the perspective of Brands to align to their customer social distancing preferences via digital means. The list is long, and to keep this document of acceptable length, I have had to skip visual representations. If you are serious about digitization, then below may well serve as a useful checklist.
Pre-Purchase Activities
The good news is, that regardless of the ‘type of your product’, bulk of the pre-purchase activities can be digitized. By the term ‘type of product’ here I mean two types- 1) commoditized - which doesn’t require look/feel in person evaluation (like cement/steel/pipes etc.) – or 2) non-commoditized where look/feel is important and in person judgement is often needed (like selecting a paint shade, tile texture etc.).
Let us break down the pre-purchase activities and detail out what digitization could really mean in context of enabling process by reducing or eliminating need for physical visits outside home:
Product Search- look for specific products
This scenario refers to when customer already knows what product he needs- e.g. replace a switch at his home. In this case, support to reduce/eliminate physical visit to store would require the following:
- Easily find the product online.
- Find retailer or nearby seller who potentially deals in the product.
The first one is possible via various online marketplaces who may maintain a catalogue of your products or even Brand website that describes the product. Though, it is not always simplistic, as customer may know what type of product/Brand he wants but not know the model number and alternatives. These are potential reasons why they may not proceed with ordering online but may make their way to find a store for inputs.
However, finding a nearby retailer who may stock that product is not always straightforward. Customers may go to markets and enquire for dealers. Also, for home maintenance/repair kind of scenarios, immediate purchase is usually desired. This means, ideally effective strategy that avoids physical visits, requires ability to:
- Find a dealer nearby for that Brand who can potentially offer some useful inputs
- Freely connect & chat with the seller for some quick advice
What does it mean for Brands?
Brands must ensure their products (catalogued to support consumer searches) and retailers local to customer location can be found via online means in ways that customer can easily access.
Solution Search- look for worker who can fix a problem- service & recommend product
This scenario refers to when customer is looking for someone to provide solution, like fix a malfunctioning installation (light/switch/appliance etc.) or replace a broken sliding door glass etc.
The options available for this are usually to order service from many service provider aggregators, however they work well when requirement is not urgent and service is well defined.
Number of home maintenance and repair scenarios pose a challenge where this is not the case. To effectively support customers in such situations, ideally it should be possible for customer to find solution providers, connect freely with them over chat, show photos and agree on time & terms etc.
What does it mean for Brands?
Brands must ensure that their ‘champions’, i.e. loyalty member workers & referrers are accessible to customers on such forums & sites, so as to ensure, where appropriate, their products are part of the solution.
Further, Brands can support candidature of their champions by endorsements that is visible to customer when reaching out (e.g. authorized for repair/installation of xyz etc).
Advisor- Connect & seek advice before identifying a product/service need
There are times when customer wants a free connect to determine what he needs, example, whether to replace or fix. In such cases, neither the product nor the service is well defined. The context is similar to the previous one but difference lies in the fact that customer cares for skill endorsements rather than Brand endorsements.
In such cases, it must be possible for customers to see workers with their ratings, reviews and ideally a brief write up, images etc. about the credentials.
What does it mean for Brands?
Brands would do well to ensure they identify and incentivize independent workers who have good ratings. They need to design an effective reward system (e.g. Loyalty plans) and where relevant, support with helping them to build their profile via their field workforce teams (such as help them with images, write up on the profile etc.).
De-risk - product credentials- Check various competing products
This refers to scenarios where customer would like to assess competing choices before decision. E.g. when replacing does it make sense to select an alternate Brand/product?
At bare minimum level this means customer should be able to easily access the product specifications, introduction video and other relevant details of the product. It’s usually the case, when confronted with choices between 2 competing products, one with extensive information and the other with minimal information, customer would usually opt for one where he feels the answers he has been looking for are readily there. Risk aversion is normal for home maintenance and repair purchases.
What does it mean for Brands?
Brands must ensure that whichever forums/sites offer their products, the cataloguing must support access to detailed specs, usage videos and any other relevant credentials. It may not be enough to just have photos to win new customers who are possibly not fixated on their choice of products.
De-risk- price- check competing offers, price quotes before purchase
Customers tend to compare prices & specs of competing products. It is not necessary that such comparison puts a downward price pressure, but discerning customers love to understand what exactly they are paying the premium for.
It is often the case, that customers would visit those marketplaces/sites more where such comparisons are possible. This is also the reason that Brand supported direct online buy options on their own website are often less successful as it forces customers to do research across multiple sites.
What does it mean for Brands?
Brands must recognize that sites that deliver a wider range of competing products actually work better for them rather than “consortium” sites where a few Brands only are present. Brands must ensure, that they are present on such sites with sufficient depth of information on their products.
Price -shop hopping- check same product prices from multiple points
It is almost always the case that your product will be offered at different rates by different retailers, reflecting different discount rates, locality etc. It is also well established that customers in almost all cases want to ensure they are not overpaying for the same product. It may come across as surprising, but it’s true for low priced items purchases from relatively well-off segment too, who see this as a matter of principle, not necessarily a money saving tactic.
In such cases, customers often wish to compare prices of the same product from different sellers. This has traditionally been done via shop hopping, which of course, is something customers wish to avoid in these times. Hence being able to check prices from different retailers in accessible areas is a key factor to support avoidance of multiple visits. This also helps to put customer at ease that product he is going for is readily available from multiple outlets.
What does it mean for Brands?
Brands must consider approaches that enables their sellers to be found online with ability to quote and raise offers for their products. This raises visibility of Brands as well as supports sales without Brand having to discriminate between sellers or compromise choices available to customer.
Validate dealer credentials- warranty availability
For certain products, especially appliances and personal use items, buyers tend to shortlist and enquire from sellers where they can verify Brand authorization. Additionally, access to warranty information clearly defined when searching for products may tilt new customers who may switch but are undecided yet.
What does it mean for Brands?
Brands must opt for online marketplaces/sites where Brands can ideally authorize credentials of sellers dealing in their products, or at minimum have the option of marking out sellers who are not authorized. Additionally, Brands must ensure that warranty details are clearly specified in detail along with their products, especially if warranty is a differentiator for them. Relying on customers to research on their own websites to confirm warranty information can potentially lose some customers.
Purchase Activities
Actual purchase- pick products or get it delivered without pay online option
The nature of many home maintenance products is such that often customer wants to physically inspect the product before finalizing purchase for products that are not commoditized. For building material kind of products, it is a common practice that regular customers run a credit account with sellers and thus paying upfront is not always an option.
What does it mean for Brands?
While it depends on segment, Brands must carefully consider if their products always fit context of pay upfront model, common amongst most online modes available. Hence Brands must evaluate whether their products are more suitable for an ‘enabling’ kind of transaction, where customers can assess their choices and complete payment after physical visit or whether they are suitable for being left to be directly negotiated between buyer/seller without intermediary enforcing payment.
Service provider checks- credentials & availability check
Number of services in home maintenance segment is difficult to commoditize and hence are discussed freely between service provider and customer. This involves a significant element of trust which is difficult unless customer has some information on credentials of service provider. Additionally, customers want to limit their interaction to shortlisted service providers who are available to work in their location and suitable time windows. In such cases, clear information on Brand authorization, such as “authorized to service xyz…” can go a long way for Brands to support their champions getting business. Being able to find service providers with Brand authorization may also result in customer favoring a Brand.
What does it mean for Brands?
Marking service providers with Brand endorsement is a new concept but increasingly important for increasing digital transactions. Brands must evaluate whether their chosen online platforms give them the capability to authorize their champions.
Post Purchase Activities
Claim Benefits – claim any benefits available, register product for warranty
Benefits may influence customer decision if benefits in form of Loyalty points etc. is readily accessible with minimal effort, customer has clear understanding of what benefits he gets and how. Gone are the days when small physical gifts such as clocks, watches, cutlery etc. served as incentive since effort to access these benefits outweighs the value in many cases. In new digital world, customers expect seamless crediting of points and tangible credit of benefits, all digitally in form of digital money, eGifts etc.
Also, registering for warranty with near to nil effort serves as a comfort point for customer. Access to warranty service via digital means can be a differentiator and may help in winning customers. This is particularly true in some segments such as appliances, however, may apply to many others too.
What does it mean for Brands?
Brands must find means for a digital, seamless journey for customers to enroll in their plans, credit transparently and provide claim benefits in electronic forms that can be credited immediately. For this Brands must opt for those platforms that enable them to do so directly to customer devices. Equally, where warranty is a factor, enabling customers to register with minimal or ideally no effort with clear delivery of warranty information (such as warranty number with validity date) could be pursued with digital platforms Brands opt for.
Support & feedback- provide feedback
Customers tend to use public forums to vent their ire when their expectations are not met. On the other hand, Brands spend a small fortune to continually understand their customer requirements, buying behavior etc. Digital now offers an opportunity for Brands to achieve both. Providing channels for direct feedback serves two purposes-
- Enables Brands to address concerns before they surface as bad feedback, often only because customer did not have an easy way to get it addressed directly with Brands.
- Enables Brands to provide easy feedback options to customer. While customers tend to not invest time in writing over public forums unless they have an issue, they would probably respond to a simple question post purchase if it can be done seamlessly with little effort.
What does it mean for Brands?
Brands must find a way to get and build a digital bridge to customer on purchase, its now possible with digitization of transactions, like never earlier. However, Brands must carefully evaluate whether their digital strategy supports direct customer engagement, and if not explore digital platforms that do.
Conclusion
Brands would do well to recognize that going digital means more than customer being able to purchase their products online from some disconnected (from Brands) marketplace. It may appear extensive at the beginning, but as Brands & customers discover conveniences and cost benefits of covering wider set of engagement activities, it may gradually, but surely tilt the balance in favor of Brands who embrace full spectrum of digital engagement. In this sense, this article may well serve as a useful checklist for Brands to assess relevance, depth and success of their digital strategies for customer engagement.