There are branches in science and economics dedicated to understanding how the mind of a consumer works, and while those have given great insight into how a person decides what to purchase or subscribe to, digital technology has proven itself a resource that is just as invaluable as years of theoretical study.
Data gathered through smart devices has granted big business a new perspective, able to analyze behavior and probability through different trigger points. Data has also given people a new insight on how the demographics have changed — who are the people, and what exactly are they buying?
In the recent event Disrupting The Future, experts from Kantar shared the trends for the future in terms of shopper, channel and branding towards sustainable growth. The conference was divided into four sessions:
- Growing Your Brand Today and Tomorrow by Marie-Anne Lezoraine, General Manager of Worldpanel Division, Kantar
- FMCG Now and in the Future: The Aftermath of TRAIN Law by Ruth Sazon, Account Director of Kantar
- What’s Next: Winning Over Future Shoppers by Diwa Manila, Account Director of Kantar
- Getting There: Artificial Intelligence / Machine Learning for Brand Growth by Hernan Sanchez, Head of Expert Solutions of Kantar in Asia, and Kimberley Hiu, Regional LinkQ Director of Kantar in Asia
What was apparent in the conference was that consumer behavior is drastically changing, and so is how industries understand what those changes actually are.
According to the panel, demographics in the Philippines is changing as the economy grows (ranked among fastest growing in Asia). They point out that there is now improved quality and better access to education, higher rates of job creation, and sustained OFW remittances that result to an expansion of the upper income sectors.
Kantar also mentioned that population growth has slowed down as more individuals are marrying late or opting out of marriage resulting to a decline in growth of households.
These two main points are painting a picture on what could happen in the near future, but Kantar is also pointing out that there are untapped markets in the Philippines, including the rising Muslim population who remain severely underserved as companies have yet to create products that have taken what’s allowed under Shariah Law into consideration.
The changes in demographics and realizations of untapped markets now pose a question: how do you win them over? Kantar’s Account Director Diwa Manila says there are three things you need to primarily take note of: Stay connected, be relevant, and act fast. Brands can take advantage of this with a potential of upgrading and premiumization of higher price formats, opting for new categories, and creating more advanced formulation. It’s important to stay connected with the consumers needs, and by studying and understanding data, brands can maximize their potential on transforming data capital into economic capital.
There are three mega trends Kantar is seeing in the near future that brands should carefully follow if they wish to continue towards sustainable growth.
First, consumers purchase based on convenience. What mobile apps people subscribe to paint a picture on what they find is important these days: instant gratification in the form of convenience. Never mind the high costs of a Grab or Uber ride, if a person gets to their destination hassle-free, paying a premium is not a big concern. The same goes for products. Consumers want to get products in the fastest and most convenient way possible.
Another key consideration in planning campaigns and production of supplies is this aspect of satisfaction or feeling good. Modern-day consumers want to feel good about their purchase, whether it’s about leading a healthier lifestyle or supporting a sustainable product that has less or lessens carbon footprints.
Lastly, consumers don’t just buy products for use, they want the experience broader than that moment of purchase. In the retail world, brands are quickly adapting in an effort to stay relevant to their shoppers.
For the last session, Hernan Sanchez, Head of Expert Solutions of Kantar in Asia, and Kimberley Hiu, Regional LinkQ Director of Kantar in Asia spoke about how the combination of behavioral data and AI are key solutions to brand growth in a digitally-driven market environment.
Sanchez states, “Transformations are hard, and digital ones are harder”, and rightly so. Only a small number of companies manage to create value out of their digital transformation process and this is due to the lack of data about digital shoppers behavior and purchase patterns. The access to behavioral consumer data allows brands to understand the consumer in its totality and helps creating a strong relationship between brands and consumers though the practice of data-driven marketing. The right data architecture equals to potential new insights of the world of human behavior to improve results.
To maximize the value of data and transform it into sustainable revenue growth, the use of AI and Machine learning techniques is of paramount importance given that they have a superior performance versus traditional analytics approaches when used to forecast markets evolution or formulate the best marketing strategy.
Finally, Kimberley Hiu stated that “the key to building sustainable brand growth is the effective management of all aspects of the purchase funnel, systematically, across its four steps: Attraction, Attention, Acquisition, Adherence”. Having a holistic view of the relationship between brands and their communities over time allows marketing teams to identify opportunities and align the resources to capture them faster and in a more effective way than its competitors. Commercial teams operating in this way accelerate sales and dominates markets.
