McKinsey's Consumer Decision Journey - Chandigarh Angels ...

McKinsey's Customer Decision Journey is a fresh take on the traditional yet obsolete sales funnel. This article gives explains the CDJ and ... Skiptocontent Previous Next McKinsey’sConsumerDecisionJourney McKinsey’sConsumerDecisionJourney Whenthetopicofsalesisbroughtup,itishardnottothinkaboutthesalesfunnel.Whilecompaniesaroundtheworldcontinuetousethefunneltounderstandcustomersanddrivesales(itdoeshavesomeapparentbenefits),thestartlingfactisthatthesalesfunnelisactuallymorethanacenturyold.  Thebusinessenvironmenthasundergonesignificantchangesinthepastcoupleofdecadeswhichisenoughtorenderthetypicalfunnelpracticallyredundant.Whiledifferentiterationsofthemodelhavebeenputforth,thelinearityoftheprocesshasbeenquestionedtimeandagain.  McKinseyexaminedthepurchasedecisionsofalmost20,000customersacross5industriesand3continentsanddiscoveredthatthestagesofthecustomerjourneyweresimilarbutwerecyclicalinnature.Withtheseinsights,theybuiltanewframeworkcalledtheCustomerDecisionJourney(CDJ)whichismorerelevanttotoday’stimesandthedigitalera. Here’smoreaboutCDJanditsimportanceforstartups.Foreachstep,wehaveputtogethersomeKeyQuestionsthatentrepreneursshouldthinkaboutbeforestrategising. Trigger McKinseysaysthatacustomer’sdecision-makingjourneystartswithatriggerorastimulus.Thisiswherethecustomerrealisesthattheyarefacingaspecificproblemorpainpointandneedasolutiontoit.Thisstartstheprocessoffindingcompaniesthatoffertherightproductsorservices.  KeyQuestion:Whatcreatesacustomerneedorwant? InitialConsiderationSet Everyday,customersareexposedtoavarietyofdifferentbrands,someoldandsomenew.Digitalplatformshaveonlyaddedtotheamountofexposurethatindividualsget.  However,whenacustomerrealisestheneedforaparticularproductorservice,therearesomebrandsthatimmediatelycometomind,beforetheentireresearchprocessstarts,thankstotheseveryimpressions.Thisiscalledtheinitialconsiderationset. Thisstephighlightstheimportanceofcreatingbrandawarenessandremindingcustomersofyourpresence,whethertheyhaveshoppedfromyouearlierornot.Youalsohavetoedgeoutthecompetitionbecausetheinitialconsiderationsetissmallandincludesonlyafewbrands.  Themainideaistobewherethecustomersare.Understandeachsaleschannelandknowwhereyourtargetaudienceislikelytobe.Beconsistentandcreativewithyourcustomerengagementlikenewsletters,calls,demos,etc. KeyQuestions:Docustomersrecognisemybrandwellenough?Willitbethefirstnametheythinkof? ActiveEvaluation Thisistheinvestigativestageoftheconsumer’sdecision-makingprocess.Thecustomerswillgenerallytrytogatherasmuchinformationastheycanfrommultiplesourcesonlineandoffline.Somepeopleprefercheckingoutreviewsonlinewhileothersconsulttheirfriendsandfamilybeforemakingthepurchasedecision.And,itisalsohighlyprobablethatcustomerswillgobeyondtheirinitialconsiderationsettoexploremoreoptions. Infact,theactiveevaluationstagehasgainedsignificancebecausebetween80-90%ofcustomerstodayreadandtrustonlinereviewsbeforemakingadecision.Forstartups,thismeansthattheyhavetoproactivelyencouragecustomerstogivefeedbacksothattheystandoutduringthisstageoftheprocess.  Thereisalsoaheavyinfluenceofpaidadvertisementsduringactiveevaluation.Becausethecustomeristryingtofindmoreandmoresourcesofinformation,anadvertisementplacedintherightplacecandirectuserstoyourwebpage.  KeyQuestions:Doesmyproductsatisfytheneedsofacustomer?Isinformationaboutmyproductsreadilyavailable? MomentofPurchase Afterallthesearchingandfiltering,customersfinallyreachthestagewheretheyarereadytobuy.It’sthedecision-makingtime.Whetherthecustomerismakingthispurchaseonlineoroffline,youneedtogivethemafinalnudgetochooseyouoveryourcompetitors.Offeringasmalldiscountcouponorsomeadditionalfeaturescantipthescalesinyourfavour. Thisisalsothestagewhereyouseehowyourmarketingeffortshavepaidoff.Youcreatedawareness,gaveinformationbutthatshouldresultinsalesasoftenaspossible.Inthetraditionalfunnel,thiswouldbeconsideredthelaststepinthecustomerjourney. KeyQuestion:Weremymarketingeffortssuccessfulingeneratingsales? Post-PurchaseExperience Thisiswheretheconversionhappensfromregularcustomertoaloyalcustomer.Onekeyreasonwhytheoriginalsalesfunnelwascriticisedwasthatitnevertalkedabouttherelationshipbetweenthebrandandthecustomerafterthepurchasewasmade.  McKinseyspecificallyhighlightedtheimportanceofthepost-purchaseexperienceandtakingcustomerfeedbacknotonlyabouttheproductbutalsotheirjourneywiththebrand.Therearemany,manywaystoengagecustomersinthisstepsuchassurveys,follow-oncalls,appreciationemails,etc.  Theyalsoneedtobeassistedwithanyproblemstheyfaceafterbuyingaproductorservice.Forexample,someonebuyingatablemayneedassistanceinputtingittogetherwhilesomeonebuyingaCRMsoftwaremayneedhelpinsettinguptheaccount.Furthermore,therecanbeinstancesofdamage,warrantyorreplacement,allofwhichfallunderthepost-purchaseexperience.    KeyQuestion:Doesmyproduct/servicefulfilcustomerexpectations?DoIhavethenecessarypost-salesprocessesinplace? LoyaltyLoop Thisiswheretherealmagichappens!McKinseytalksabout2kindsofloyalists-oneactiveandtheotherpassive.Activeloyalistsaretheonesthatopenlyshowtheirpreferenceforacertainbrandandadvocateforthesame.Incontrast,thepassiveonescontinueusingthebrandbutdon’tindulgeinoutrightadvocacy.  Thetaskforeverycompanytodayistobuildasetofactiveloyalistswhocontributetosalesandalsohelpinacquiringnewcustomers.The“loop”comesintoplaywhenacustomerthinksofsomethinghe/shewantsandimmediatelyrecallsyourbrand.Amazonisagreatexampleofacompanythathasalmostperfectedthisloyaltyloop.Thinkofthisyourself,anytimeyouwantaproduct,isn’tAmazononeofthefirstnamesthatpopupinyourhead? AsseenintheCDJdiagram,theloyaltyloopalsoallowscustomerstobypasstheentireprocessandimmediatelyreachthemomentofpurchaseafterthetrigger.That’swhatstartupsshouldstrivefor.  KeyQuestion:Docustomersactivelyadvocateformybrand?Dotheyimmediatelythinkofmybrandwhentheyhaveaspecificneed? TheFinalWord McKinsey’sCDJprovidesamoreholisticapproachtoacustomer’sjourneywiththebrandandhighlightsthekeytouchpointsthatcompaniesshouldfocuson.Loyaltyisgrowinginimportanceandtoughness.Whilebrandstrytopersonalisethecustomerjourneytoencourageloyalty,theintensecompetitionallowscustomerstowanderawayandtrysomethingnew.  Whilethisframeworkisnotwithoutflaws,itcaterstotoday’stimesbetterthanthesalesfunnel.Startupsshoulddelvedeeperintoeachstepandgiveallofthemequalvaluewhiledesigningstrategies. RecentPostsChandigarhAngelsNetwork2021-11-23T10:28:56+05:30Howto‘create’Wealth?ChandigarhAngelsNetwork2021-10-20T20:24:40+05:305WaystodoaStartupValuationChandigarhAngelsNetwork2021-10-15T13:24:26+05:30TheriseofCloudKitchensChandigarhAngelsNetwork2021-10-15T13:25:44+05:30Universities:Anidealstart-upplatform ChandigarhAngelsNetwork2020-09-24T18:18:10+05:30September24th,2020|Blog|CommentsOffonMcKinsey’sConsumerDecisionJourney ShareThisStory,ChooseYourPlatform! 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