BY Fraser Tennant
Providing businesses with deeper insights into consumer behaviour across the globe and pinpointing the drivers of choice that open and close the customer wallet is a new report released by KPMG.
In the inaugural ‘Me, My Life, My Wallet’ report, KPMG analyses how the seismic influences of sociopolitical and economic shifts, accelerated mass adoption of new technologies and mobility are upending fundamental beliefs around what drives consumer behaviour.
The KPMG report also unveils a new customer engagement framework designed to help businesses understand the increasingly complex and multidimensional forces that influence decision making and preferences of today's and tomorrow's consumer.
The framework is based on what KPMG calls the ‘Five Mys’ (which focus on five behavioural drivers – My Motivation, My Attention, My Connection, My Watch and My Wallet), Customer Wallet (fresh thinking on our changing relationship with money) and Generational Surfing (a new perspective on how those life event drifts can help businesses anticipate changing needs and preferences). The customer engagement framework goes deeper than just the analysis of data through a single lens.
From millennials to baby boomers, the framework helps businesses to assess the drivers of consumer decision making by looking at the multiple factors that influence people's everyday lives. Together, the three dimensions of the framework – behavioural, financial and demographic ─ help deliver a more comprehensive, 360-degree view of a consumer.
“Every day, new influences impact consumer motivation, behaviour and consumption and these forces are upending the conventional predictors of when, why and for what the customer wallet opens,” said Willy Kruh, global chair of KPMG's consumer and retail practice, and a partner with KPMG in Canada. “Transactional data, traditional market research and demographic profiles alone are proving inadequate to explain not just what customers are doing, but why.”
The report is based on a survey of 10,000 people across the US, UK, India and China, using comprehensive, customer-focused research methodology.
Mr Kruh concluded: “It is time for an industry reset that re-orients us to understand what drives consumer engagement today. This calls for a new, intelligent, multi-dimensional model that uses predictive insights to help companies understand the customer journey and who their customers truly are.”
Report: Me, My Life, My Wallet