Digital Transformation

Topic 3

The Business Paradigm Shift

LEARNING OUTCOME
After this class , students will

• Be aware of the changes in consumer behavior in the digital economy.

• Understand the changing business paradigm and the importance of
customer-centricity for businesses in the digital era.
• Understand the four pillars of the C2B approach to innovation.
• Understand the importance of the consumer persona for C2B business
and be able to develop a simple persona based on interviews.

2
 CONTENTS

Element 3.1
The New Digital Consumers
Element 3.2

B2C Model and Constraints

Element 3.3

From B2C and C2B

Element 3.4
Consumer Personas & Insights
Element 3.1
The New Digital Consumer
 The New Digital Consumers

Key Knowledge Points

1. Why consumers are changing – the new global digital landscape

Technology and globalization give consumers more power. They can get products and services from anywhere in the world. There is more
supply than demand, so consumers have the final say in what they choose.

2. How consumers are changing

1) More differentiated consumer segments
Classic demographics like age and gender appear to be losing their popularity among marketers as the most common forms of
segmentation. Rather than looking at big, homogenous demographic segments, we need a more precise breakdown of a much more
complex consumer economy in which consumer segments are becoming more differentiated than ever before.

2) New values towards brands

In the past, consumers evaluated products primarily based on their functional and technical elements, Today, the brand’s purpose that
reflects their own values and beliefs is equally important. Digital consumers expect to be more involved with the brand and to emotionally
connect with it. brands are increasingly evolving their approach to reflect their consumers’ behavior, attitudes and life stage.

3) New preferences for consuming information

In the mobile internet era, the media environment is characterized by a large variety of information sources, fragmented consumer
preferences and an expectation of frequent, personalized updates. Consumers have extremely short attention spans, and most engage only
superficially with content.
 THE WORD DIGITAL IS MISLEADING.

IT’S NOT ABOUT TECHNOLOGY,

IT’S ABOUT

PEOPLE
 3.1 Digital consumer

Power Shifts to the Connected Customers

Japan: A young girl in Tokyo

glance at the discussion about
China: A mom in Shanghai face wash on social network
Mexico: A resident of Leon
reads blogs and decides feeds just before entering a
downloads a coupon on a
which books to buy even drugstore.
smartphone before walking
before making a visit the
into a restaurant.
bookstore.
 3.1 Digital consumer

Why Have Consumers Changed?

Technology Empowerment Globalization Supply > Demand

 3.1 The New Digital Consumers

Why Have Consumers Changed?

Technology Empowered The world at your fingertips

Digital technology has transformed consumer habits.

Interestingly, customers use their mobile devices for 50.8% of the World’s Population is
various online shopping activities such as Online, 4+ billion internet users
researching product features, locating a store, searching, discovering, sharing, asking,
etc. ​AI and deep learning have changed the way comparing, purchasing products and
people interact with information, technology, brands services instantly from smartphones —
and services, enabling personalized experiences. here in lays their power.
 3.1 Digital consumer
Why Have Consumers Changed?

Globalization Consumers are able to “shop the

world.”

Globalization Connected consumers have

access to information about products and
services around the world, driving demand and
adaptation in their own markets.

Chinese consumers can easily purchase seafood from

India, Thailand, Russia, United States, Chile and other
countries from the fresh-food platform every day.
3.1 Digital consumer

Why Have Consumers Changed?

Supply > Demand

As more and more brands

flood the market, consumers
50 million
come away with the power to
In 2018, more than 50 million new products from
demand better and more 200,000 local and foreign brands hit the market
personalized products from through Alibaba’s retail platform Tmall. That means a
brands looking to differentiate. new product is launched on Tmall every 0.52 second
on average.
3.1 Digital consumer

How Have Consumers Changed?

Changes in
consumer segments

Consumers
are
changing

Changes in Changes in way of

brand values receiving
information
 3.1 Digital consumer

How Have Consumers Changed?

As consumer economy matures, its consumers are

1 Changes in developing more diverse preferences for products
and services. Distinct consumer segments have
consumer segments emerged as a result of the structural demographic
and behavioral changes, and each segment has a
unique set of needs.
 The New Digital Consumer

How Have Consumers Changed?

Diverse, Fragmented & Overlapping Interests

With more communities available, consumer’s interests are getting more fragmented making it difficult to
accurately identify and reach customers. A “one size fits all” approach is now impossible.

Modern Internet Lifestyle

Hobbies
Communities
Novelties Gym
Traditional junkies
Hipsters
Culture
Real life Revival
dweller The Post-
Lazy Experiential
One child Autonomy
Economy Consumption
Social
Attributes Consumption
Levels
The New Digital Consumer

How Have Consumers Changed?

The New Digital Consumer

How Have Consumers Changed?– Traditional Culture Revival

➢ Most young people today are only children who grew up with
a lot of family and material resources. They also depend on
the internet and have diverse skills and knowledge. That’s
why they usually come from rich families and have high
levels of education.
➢ People who grew up in this environment are independent
and have their own consumer values. They also have
different social circles that change quickly. Young people
born after 1995 are the main group in this new consumer era.
They spend more money than any other group.
 The New Digital Consumer

How Have Consumers Changed?– One Child

➢ Most of the Post-90s generation
grew up as only children. They
grew up enjoying a higher
standard of living as well as
having a greater amount of pocket
money which they can use.
➢ By now, they have successively
entered the workplace and begun
to distribute their own increasingly
higher incomes.

➢ They are extremely dependent on online consumption and consumption of foreign products, and show a very
high appetite for trendy products, luxury goods and new products.
➢ As the 1990s begin to become parents, their habits are expected to remain focused on spending rather than
saving.
 The New Digital Consumer

How Have Consumers Changed?– Autonomy

➢ Reliance on O2O services and

takeaways
➢ Willing to pay for sentiment and content
➢ Product storytelling sales model
➢ Paying for Quality
➢ Consumer Upgrades
➢ Many Labels
➢ More diverse range of products
➢ Overspending
➢ Financial Awareness and Internet
Finance
The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

According to Taobao's "Lazy Consumer Category", the post-00s can almost be

called "all-round lazy people", with nearly 90% of the post-00s in each category.
90% of the post-00s are non-cookers; 79.5% of the post-95s are experts in
housekeeping. The post-60s and post-70s have the highest number of bending
disorders due to age and physical factors, accounting for 91.8% and 76.8%
respectively.

In terms of consumer upgrading and the pursuit of efficient living, the

trend of people becoming "lazy" has become irreversible. It is also
clear from the data that the pursuit of a convenient and quality
lifestyle is no longer the exclusive preserve of young people in
Generation Z. The "lazy" user group is also spreading to the post-
90s, post-80s and even the post-70s and post-60s.
 The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

Convenient hotpot
 Some people in the city earn a lucrative
income, dress elegantly, socialize frequently
but never bother to do any household
chores or grocery shopping. Floor sweepers
 Workplace challenges keep them too
occupied to pay attention to anything else
besides their career.
 They don’t care much about their home life
and like to keep things simple, but they work
hard on their job, fitness, beauty and
hobbies.
go-for
The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

• While various factors have slowed down the demand for

conventional home appliances in recent years, smart home
products have continued to grow rapidly.
• Smart home appliances such as smart speakers, smart TVs,
floor sweepers and large-screen refrigerators are beginning
to be increasingly accepted by consumers and are gradually
becoming standard in home products.
• In 2022, China's whole-house intelligence market sales may
grow by a whopping 54.9% year-on-year, and smart home
shipments will maintain a high growth rate of 15%-25% over
the next five years, with whole-house intelligence also set to
become a trillion-dollar market.
The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

Reliable after-sales service

• Smart home products offer intelligence, convenience

and security to people’s lives. They make life more
comfortable and safe, and that’s why consumers love
them.
• Young consumers love staying at home and enjoying a Maximum facilitation for consumers
comfy and cozy life. They follow the rule of “why walk
when you can talk, why talk when you can text”. This
way, they save time and do what they like.

Reasonable price Automatic Stir Fryer

The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

Professional Dog Walkers

Home-cooked meals
In-Home Organizer
The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

Consumers today want more than just products. They want services and experiences that make them
happy. Brands need to innovate their packaging to meet this demand. Packaging is not just a functional
tool. It is also a golden opportunity to advertise and create a brand image. How can brands use
packaging to offer innovative experiences for lazy consumers who want everything at their fingertips?

Fodibel has developed

microwave micro-pressure
technology, combined with pre-
cooling and other techniques to
ensure the flavour of the food.
The unique packaging
technology allows the consumer
to microwave the food without
having to remove the packaging.
The New Digital Consumer

How Have Consumers Changed?– The Post-Lazy Economy

For Eagle Coffee, 50% ground coffee and 50% The coffee start-up, Gee Beverage, takes cold brew coffee
freeze-dried coffee powder are mixed in a hand-held concentrate and packs it directly into a small, portable tube
filter bag in the shape of a stick to create a "stick and fills it with nitrogen to keep it fresh. At the touch of a button
coffee". Place in water and gently stir to create a full- the cold brew falls out of the tube and is filled with hot water or
bodied cup of coffee. milk to make a delicious Americano or latte.
3.1 Digital consumer
How Have Consumers Changed?

Small-town
youth Young consumers in lower-tier cities shop online almost as much as
those in top-tier cities.
They have lower living costs and more free time than their big-city
peers. They don’t spend much time commuting to work.
They buy more online products in some categories, especially
premium and luxury brands that are not available in physical stores in
their areas.
They value social engagement, such as referral programs,
KOLs/KOCs endorsements, and special edition products.
3.1 Digital consumer
How Have Consumers Changed?

Gym junkies
The market scale of sports nutrition products in China is growing
rapidly. According to Euromonitor, the China sports nutrition market
was valued at US$206m in 2017, having experienced a CAGR of
42% for 2014-2017. It was forecast to continue to grow at a CAGR of
25% between 2017 and 2020. In 2020, China had the second-
largest sports nutrition market in Asia Pacific (after Japan), with $329
million in sales. E-commerce accounted for 84% of the sports
nutrition products sold in China.

A gym junky consuming protein powder after his workout, 2018

 3.1 Digital consumer

Changes in consumer segments - the Single Person

The single economy in China has grown dramatically over the

last few years. Single
According to a WSJ article, there are nearly 200 million single Person
adults in China, accounting for 14.6% of the total population.
Which is a sum greater than the population of many
countries.

Single person are:

 Career-oriented
 living alone but digitally connected
 have a different lifestyle, which leads to changes in the products
they purchase: They seek smaller volumes, greater convenience,
and higher-quality goods.

People’s perceptions of remaining single: the concept is no longer

stigmatized in the Chinese culture, where getting married and
starting a family is considered a filial duty.
 3.1 Digital consumer

Changes in consumer segments - the Single Person

 Proud, Playful
 Disposable income
 Desire for Convenience
 Eating Alone
 Different Values
 3.1 Digital consumer

Changes in consumer segments - the Single Person

GDT Case study

C2B Marketing in the Digital Era: Single Dogs,
Consumer Persona and Content Marketing

This case study shows how emotional attachment will ultimately

build brand loyalty. Brands need to understand how their
products and services meet specific consumer needs, and those
needs are increasingly functional and emotional, rather than just
technical.
3.1 Digital consumer

Changes in consumer segments - the Single Person

Single Dog chips

In just two years,
the brand has gone from zero to CNY 200
million($28,000,000) revenues and even won
Series A investments of CNY 60 million($
8,500,000).
 3.1 Digital consumer

Changes in consumer segments - the Single Person

Many single people in China jokingly call themselves

“dogs” in a self-deprecating way. So it was inevitable that
they would make fun of themselves with dog food
references.

By identifying its target market early on, Single Dog has

been able to concentrate its efforts on ensuring
communication resonates powerfully with its intended
high-profit customers.

This has resulted in fans of Single Dog sharing brand-

related images on social media, enhancing the notion that
singledom is a lifestyle choice and not an affliction, and
further connecting this cultural phenomenon to the brand,
which in turn is exploiting that phenomenon.
 3.1 Digital consumer

Changes in consumer segments - the Single Person

Single Dog takes the moment when single people are proud of them being independent but feeling lonely
occasionally at the same time as their advertising copy.

“The only complaint I ever

“I‘m strong enough to made to McDonald was after
unscrew a fire hydrant, let its staff threw my food away
along some water bottle caps.” when I went for the bathroom.”
3.1 Digital consumer

Changes in consumer segments - the Single Person

Dark Hour Chips

Consumption scenario of dark hour chips for the single: in the night, a
single person can watch TV shows or sports games while enjoying this
snacks all by them self. Single Dog introduces dark hour chips, hoping
to remind consumers that this potato chips can be a companion for
single people when they are lonely at night.
Co-branding Strategy

Single Dog and Sprite jointly launched the single

package: instant noodles + Sprite
Single person community

​Single Dog uses emotional connections with

clients to build communities, bringing together
large numbers of singles. And more products and
services will be developed based on the needs of
single people.
 3.1 Digital consumer

How Have Consumers Changed?

Consumers used to judge products mainly by how

Changes in well they worked. Now, they also care about the
2 brand’s purpose that matches their own values and
brand values beliefs.
3.1 Digital consumer

Changes in Brand values

Seller’s Market: Buyer’s market:

In the past, consumers evaluated products Today, consumers have high expectations for
primarily based on their functional and price brands to take a stand on values and provide
elements. better services and experience.

Product

Experience
Product

Value
Price

Service
Price
 3.1 Digital consumer

The old way of profiling customers is vague and shallow. It doesn’t help us understand them well or target them
precisely.

Basic Information: Behavioral True situations: Spiritual Cores:

 Demographic characteristics:  Life stage  Mentality
attributes  Daily scenarios  Lifestyle  Value
 Social attributes  Media habits  Hobbies  Personality
 Consumption
behavior

Ninety-five percent of people‘s decisions are emotional and only five percent are rational. Most brand purchases are emotional decisions made
by consumers in a short time. Taking advantages of this 95% and reaching and moving consumers is the best way for brands to occupy
consumers’ mental space.

——Yabing He, Vice President of Brand Marketing and Media Department and Consumer Insight
Department of P&G Greater China
 3.1 Digital consumer

Changes in Brand values

Customers want to have fun, feel special and enjoy

themselves when they shop. Products are not just things
they buy, but part of how they live and express
themselves. That means brands have to offer experiences
that focus on the customer and connect with them on a
deeper level than ever before.

Mondelez launched a music box that played tunes when an Oreo cookie was placed
on a turntable-like device. Taking a bite of the cookie and putting it back on the
turntable changed the tune. Consumers could record their own voices on the music
box and decorate it, customizing it by scanning a QR code.
 3.1 Digital consumer

Changes in Brand values

GDT Case study

Everlane: Creating Emotional Brand Connection

This case study teaches students about the applications

of customer centricity in brand building and how to
develop a consumer-to-brand mindset.
 3.1 Digital consumer

Changes in Brand values

 is an American clothing retailer that sells primarily online.

 Founded in 2011
 70 employees
 “We believe we can all make a difference”. Our way: Exceptional quality.
Ethical factories. Radical Transparency.
 Hit $100M+ Revenue in 2016
 Everlane is No. 40 on the 2018 World’s Most Innovative Companies list.
 3.1 Digital consumer

Changes in Brand values

Everlane’s target demographic is

described as “conscientious
young people”, with an emphasis
on the millennial market.

Millennials are in the vanguard

Fair labor
Sustainable resourcing
Environment protection
brands that are doing good in the world
……
3.1 Digital consumer

Changes in Brand values

Radical Transparency and the New World of Everlane.

In nine words.
Know your factories. Know your costs. Always ask why.

Never producing more than people want,

and not selling clothes for 10 times more than they cost to make.
 3.1 Digital consumer

Changes in Brand values

Transparency

Production process

Everlane’s quirky team highlights behind-the-

scenes views and glimpses of real moments
in production and sales.
The company prides itself on its “ethical factories.” The company
shares some information on the factories that produces its clothing,
The photos of the workers show how they enjoy their work.
 3.1 Digital consumer

Changes in Brand values

Transparency

Cost

Everlanes' most well=known feature; their cost

breakdown on website By offering transparency
customers can hold the brand accountable for how
products are produced , and the prices they are sold at
 3.1 Digital consumer

Changes in Brand values

Value

Environmental awareness

Consumers now ask, what can your

brand do for the world? How will your brand solve
problems?

Everlane’s products are fully sourced from recyclable

or sustainable materials, a concept that resonates well Everlane turned recycled water bottles into
coats.
with a generation concerned with climate change.
 3.1 Digital consumer

Changes in Brand values

How does Everlane launch and promote a product?

Here is an example
Everlane was looking for a factory that met the company’s
sustainability standards, then the company eventually found
one in Vietnam that recycles 98% of the water used in denim
manufacturing and turns the leftover sludge, filtered of
chemicals, into bricks that are used to construct affordable
houses.
For several weeks before the denim was released online,
Everlane shared pictures and stories from the factory, which
led to a record-breaking waiting list.
A year earlier, Everlane alerted customers that the brand
was dropping the price of its cashmere sweaters from $125
to $100 to reflect the lower cost of raw materials. The
company’s cashmere sales jumped 200%.
 3.1 Digital consumer

Changes in Brand values

Value

Are some customers willing to pay more than the

lowest possible price?
Everlane developed a Choose What You Pay
model for overstocked items, where customers can On a $75 sweater, the discounted prices are $32, $39, or $68.
pick up, say, a dress shirt for one of three different  The cheapest price covers Everlane's production and shipping costs;
 The second goes a step further, covering that plus "overhead for our
prices. The website explains that the lowest one
70-person team."
lets Everlane recoup its costs, while paying more  The highest price, which is only $7 less than the sweater's original
allows it to invest in future product development. price, includes all of that and also allows Everlane to "invest in
growth."
Twelve percent of shoppers opt to pay more.
 3.1 Digital consumer

Changes in Brand values

Collaboration with
consumers and factories

Everlane uses its waiting lists, along with real-time

data and customer feedback, to make inventory
decisions. When in doubt, it stocks less. And when
items sell out—which happens a lot—Everlane can
restock quickly, thanks to its close relationships with
its more than two dozen factories worldwide.
 3.1 Digital consumer

Changes in Brand values

For example, Everlane releases notices of new
products on social media or via email and invites
customers to provide feedback.

Everlane’s products are not from

designers who push out their latest and
greatest, dictating what is ‘in’ for the
season, but rather timeless pieces that
are dictated from the demand of a
majority of their customers directly
meeting the desires of the consumer.

Customers feel directly empowered to promote Everlane’s products.

 3.1 Digital consumer

Changes in Brand values

Giving Customers The Full Experience

While originally just online, Everlane now

features offline retail stores, they serve not
just as places for people to buy product, but
also as gathering spots for people who feel The store has iPads with card readers set up. Customer needs create
an account on Everlane's website in order to make a purchase.
an affinity to the brands.

Information about each of the factories Water boxes and neighborhood

Source: Business insider Everlane uses around the world. guides available for customers.
 3.1 Digital consumer

Changes in Brand values

Everlane has more to offer than just clothes. They have their own
factories, loyal customers, and a green and ethical vision.
The New Digital Consumer

GDT Case study: Freshippo

The New Digital Consumer

GDT Case study

Positioned at the middle
and high end of the
Differentiated market consumer spectrum, these
positioning intellectual, fashionable
young people born in the
1970s, 1980s and 1990s

Mainly consumed by middle Younger customer base

to high income women compared to traditional
aged 25-35 supermarkets

FRESH FOOD DINING ONLINE BUSINESS

SUPERMARKET EXPERIENCE STORAGE
The New Digital Consumer

GDT Case study

Some of their customers are home users who stay at home in the evenings, office workers, and
parents who shop with their kids on weekends. They can satisfy these customers by offering
them fast, personalized shopping or home delivery services. This way, they can turn what
customers value into what the company produces and then use it to market and promote their
products.

​Using Alibaba's consumer data, consumers are digitized through membership registration, store
face recognition and user browsing records to obtain user portraits. Then refer to the front-end
sales data to personalize products and services for different users to increase user engagement
and cultivate loyal users. Linking the performance of brands to the psychological needs of
consumers, it lays a broad and solid user base for marketing planning schemes and increases
the market share and influence of brands.

​Focus on connecting with consumers and improving user conversion rates. Break the traditional
retail model and create unique values that users identify with, communicate and share with
users, create social experiences and engage, etc. to increase consumer recognition of the
brand's culture and values.
The New Digital Consumer

GDT Case study

The Shopping Model of Freshippo

 The New Digital Consumer

GDT Case study

✓ The quality of the products and the service is what matters, not the price wars. There are no middlemen to mark
up the price. Vegetables go straight from the farm to the store and then to the customers. The savings in the
supply chain are passed on to the consumers, making the products more than 10% cheaper than regular
vegetable markets. The fair and smart pricing strategy has won many customers and made Freshippo produce
micro-profit model last.

✓ They cater to the different and specific needs of customers and make things easy for them. For example, the
vegetables are packed in a way that keeps them fresher; they come in sizes from 200g to 500g for customers
who don’t need much; they also have zip bags and fancy gift packages for more options.
 The New Digital Consumer

GDT Case study

They deliver to your home in 30 minutes if you live within

3km of the store. They use technologies like big data,
mobile internet, smart devices and automated facilities to
match the staff, goods and locations in the best way. With
easy shopping methods and fast delivery system,
Freshippo can boost their sales and brand awareness.
 The New Digital Consumer

GDT Case study

Green Box District Scheme

➢ Green consumption, green recycling, green supply chain

➢ To encourage eco-friendly consumption in shops, Freshippo
has teamed up with Ant Forest to give consumers 21 grams
of Ant Forest Green Energy once a day if they do not
purchase a plastic bag when they check out with the
Freshippo App.
➢ Freshippo hardly uses any cardboard boxes or tape for its
deliveries. It also plans to make its supply chain more eco-
friendly by replacing the disposable foam boxes in the
seafood warehouses with reusable water trucks, collecting
waste from the fresh produce processing centers and
improving the packaging of fruit and vegetables.
 The New Digital Consumer

GDT Case study

✓ The two parties launched co-branded

coffee products, which will be sold
exclusively through the online channel
and offline shops.
✓ Includes two RTD (Ready-to-Drink)
ready-to-drink products - Velvet Cocoa
Coffee and Blossom Chestnut Latte
✓ Consumers can buy from more than 300
physical shops nationwide as well as
Tims China & Freshippo
through the online app.
✓ Bringing Freshippo users a wider range
of fresh coffee products to experience,
which will enrich their choice.
The New Digital Consumer

GDT Case study: Lululemon

 Founded in 1998

 Valuations have increased approximately 100

times in the last ten years

 Approximately 25,000 employees in 521 shops in

17 countries worldwide

 Adopted a "market focus" strategy to enter the

yoga sports sector, mainly serving the women's
yoga wear vertical segment
 The New Digital Consumer

GDT Case study

Lululemon's customers cover the young age group of 15 to 35 years

old. Although the company started out as a women's brand, it now
targets both women and men.

But the majority of Lululemon's sales continue to be attributed to

women's products. women account for nearly $4.2 billion in sales in
2021, compared to slightly more than $1.5 billion for men.

Lululemon has the largest share of the US market of any country and
is enjoying explosive growth.

As a premium fitness wear brand, Lululemon tends to appeal to an

upper-middle class clientele.
The New Digital Consumer

GDT Case study

• Lululemon's DTC includes self-operated e-commerce,

with channels mainly on the website and App, which
are self-operated online channels, as well as Tmall and
WeChat Mall in China.

• Increased views on the e-commerce site, improved

conversion rates and increased unit prices have
enabled Lululemon to achieve strong growth in its DTC
business

• Lululemon's DTC business continues to grow as

digitization increases and traffic to the company's
website and mobile app increases
The New Digital Consumer

GDT Case study

 The New Digital Consumer

GDT Case study

Lululemon‘s marketing strategy

includes extensive social media
Lululemon has set itself up well by There are currently over 1.5 million
content on many platforms,
encouraging customers to use Instagram posts using #thesweatlife,
including the main account and
#thesweatlife in posts about although not all accounts posted are
regional branches. Lululemon's
Lululemon. wearing Lululemon.
largest audience is on Instagram,
with 3.8 million followers.
 3.1 Digital consumer

How Have Consumers Changed?

In the past, traditional media (TV, broadcast, newspaper,

3 Changes in
etc.) dominated the flow of information. it was common
for companies to broadcast their message through
various advertisement media.
Way of Receiving Today, Consumers are exposed to more, through digital
channels, friends and increased brand penetration.
Information They are better equipped to research products and find
exactly what they want.
3.1 Digital consumer

How Have Consumers Changed?

Decentralized

In the digital era, Information is no longer dominated by mass media. everybody became a newsmaker
thanks to the rise of social media. They are also very social; they communicate with and trust one another.
In fact, they trust their network of friends and family more than they trust corporations and brands.

Centralized & traffic-oriented Decentralized & recommendation-oriented

头条
 3.1 Digital consumer
The New Digital Consumer

Example of Decentralization
On Taobao live-streaming, hosts have built their status through
thought leadership and proven expertise are typically preferred and
more effective than celebrities. The host is one of us, They can be
stay-at-home moms, aunties, big sisters… The host is one of us

A retired mother live-streams cooking shows at home, attracting 200000 fans a year, and
promoting the sales of kitchenware
 3.1 Digital consumer
The New Digital Consumer
Fragmented
Connectivity, along with the presence of multiple devices and screens, brings distractions.
It hampers the customers’ ability to focus and often limits their ability to decide.

Larger Quantity And Variety More Fragmented Higher Pace

The variety of media has become more
Consumer behavior is diversified, Every day there are a lot of news, hot
and more abundant, and the amount of
fragmented and the paths (to reach events, and new information. With the
content delivered every second has
them) are complex. It will be more and rapid switching of focus points, the
increased dramatically. Points of entry in
more difficult to integrate resources life cycle of IP becomes shorter and
space and time are getting scattered,
for effective communication. shorter.
and it is more and more difficult to reach
the target consumers.

Television, broadcast, paper Switching between

Weibo popular
Apps installed per 1 minute/time
media, smart phones,
tablets…
multiple media and
screens
50+ person on average
search update
frequency

Livestreaming, short videos New trends keep End devices owned Baidu real-time hot
1 hour/time
WeChat official
coming
5-6 by an urban family
on average
events update frequency

accounts have 518 posts/year Users’ favorite

Headlines, news
Multi-platform, cross-device forms of
summary information in 2016
 3.1 Digital consumer

How Have Consumers Changed?

Changes in
consumer segments

The
Consumers "consumer decision making process”
are
changing are changing
Changes in Changs in
brand values
3.1 Digital consumer

The "consumer decision making process” are changing

While there are more and more channels and ways for consumers to collect information and
they are influenced by deep-level factors such as emotions, experience, values, etc., consumers'
decision-making is also becoming more complicated.

How we decide to buy has changed, forever

With Digital Consumers, brands are faced with a “Zero Moment of Truth” (ZMOT). The moment
when consumers researches a product prior to purchase. This moment no longer takes place in
the aisles of the supermarket or in a shopping mall. Instead ZMOT occurs online, happens in
real time, the consumer is charge, it’s emotional and conversation is multiway between
marketers, friends, strangers, websites, and thought leaders.
Element 3.2
The B2C Model & Its Constraints
 The B2C Model & Its Constraints

Key Knowledge Points

Traditional B2C businesses is based on the principle of pushing mass-produced products to

consumers through impersonal broadcast marketing. However, the characteristics of the
consumer in the digital era require companies to be close to their consumers and respond
quickly to changes in their behavior, values and interests.
Businesses with too many layers in their distribution are insensitive to the constantly
changing consumer demands of the digital era. Traditional B2C business is characterized
by being too slow, overprotective and having a fixed mindset.
3.2 The B2C Model and Its Constraints

What is the B2C Model?

What is the B2C Model and why are there now constraints
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

“Customer First”
Is it just a slogan?
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Traditional B2C Models

BIG
MANUFACTURER + BIG
RETAIL + BIG
BRANDING + BIG
MARKETING

Supply Chain Distribution Reactive Mass

Efficiency Power Customers Marketing
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Henry Ford was the founder of the Ford Motor

Company which famously developed the assembly
line to mass produce cars

➢ Developed and manufactured the first

automobile that many middle-class
Americans could afford

➢ Converted the automobile from an expensive

curiosity into a practical convenience that
would profoundly impact the 20th century

➢ Introduced the Model T which revolutionized

transportation and American industry
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

When many Western consumer companies develop a

new product, they set out on a long, slow process with an
uncertain outcome. That’s because innovation typically
starts internally, with ideas that flow from the business to
the consumer (B2C). A full rollout could take several
months, and during that period, executives are haunted
by a single question: “I wonder if this thing will sell?” All
too often, it won’t, because by the time the product is
finally available, the market has already moved on.
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Major Limitations

Rigid Product Unreliable Consumer Struggle with

Development Feedback Channels Shortened Life Cycles
 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Rigid Product Development

Rigid, inflexible product development processes struggle to keep up with rapidly changing consumer
demands and tastes. Limiting product variety in favor of efficiency leads to excess inventory and
additional costs when consumer preferences shift. As consumers increasingly demand personalized,
customized products, the ability to accurately predict demand becomes more difficult. The resulting excess
inventory from mis forecasting customer wants translates to real costs like spoilage, warehousing, and
overhead. To meet the challenge of fast-changing consumer desires and personalization, product
development needs greater agility and responsiveness, even if that means sacrificing some efficiency.

Per a McKinsey report, the market demand prediction accuracy

rate have continued to decline. 90% 60%-80% 40%-60%
Half of the products predicted were not what consumers
wanted resulting in demand not being satisfied.
Before 1970s 1980s 1990s
 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Negative Example of the heterogeneity of products:

As the once leading brand in the mobile phone

industry, it no longer exists in the mainstream
market

• Few product categories and slow to update

As of the beginning of February 2023, Sony has only 3 phones on
sale and Motorola has 10 models on sale, but only 2 brand new
phones for 2023. Consumers are not offered sufficient choices when
making purchasing decisions.
 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Positive Example of the heterogeneity of products:
Nescafe Gold Blend Nescafe Gold

In the UK, where tea has a longer Coffee has a long tradition in
tradition, only affected by the supply Germany and Germans seem to
prefer the 'Espresso' and
of tea during the Second World War,
'Cappuccino' flavours, which have
the British have a lighter taste, while a stronger taste.
the blend type of coffee usually
It is this difference in consumer requires a little milk and is smoother.
preference that has led Nescafe to
adapt its brand name and taste
when selling worldwide.

Nescafe Yunnan Limited

As a brand using a single brand Yunnan is the largest coffee-growing region in
strategy, Nescafe has enriched China. Nescafe uses the more common Yunnan
its product range and brand Arabica coffee beans, the packaging also
names according to the coffee incorporates the iconic Yunnan flowers, this is a
habits of different regions. lighter-tasting instant compared to the Nescafe
Gold model and is more suitable for the Chinese
who are new to black coffee.
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Limited Product Variety

Traditional businesses with rigid structures and slow-moving processes are ill-equipped to keep up with
today's rapidly changing consumer demands. Their inability to respond with agility leaves them with
excess inventory and waste when the market shifts unexpectedly.

Mass production of homogenous Too many layers in the distribution Mass marketing as dominant information
products unable to match demand complicates demand planning channel doesn’t capture feedback

Supply ≠ Demand Bullwhip Effect Passive Consumers

 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

In the past, sugar-free beverages have

been relatively niche, but as the concept of
healthy eating and drinking has become
more popular, a large number of sugar-
free beverages with “sugar-free”, ”low-
Mass production of
homogenous products
cal“ and ”zero-fat“ labels are now on the
unable to match demand ”tip of the pyramid“ in the beverage
industry. Zero-sugar beverage production
is also rising gradually.
Supply ≠ Demand

2014 experiments on artificial sweeteners in mice published in the journal on

Nature showed that artificial sweeteners may affect intestinal bacteria, can also
increase the risk of diabetes" and "has a carcinogenic risk", among others.
Yuanqi Forest apologised for
People want to eat healthier food, but these products have illegal the misleading slogan "0
sweeteners and false claims. This makes people distrust them. sucrose" for its milk tea
products and changed "0
sucrose" to low sugar
 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Supply chain complexity: It’s harder to manage global supply

chains. People want different things, and orders vary a lot. More
Influenced by the external
people and touch points are involved in these supply chains. environment, consumer habits tend
to stock up on products in high
Consumer expectations: Customers want more choices, like getting demand and necessary, such as
medicines, and food becomes a key
things in the store or from the suppliers. This can make it hard to have commodity.
enough products and make the supply chain more complicated.
Too many layers in the Having enough of everything can mean having too much.
distribution complicates
demand planning Batch orders: For simplicity, members of the supply chain may
choose to round their orders up or down or wait until a certain date to
Bullwhip Effect place an order, which does not always accurately reflect demand.

Price fluctuations: Discounts, sales and other offers can affect

typical demand and can lead to inaccurate forecasts as buyers try to
reconcile these sales with their usual forecast measures.

Long delivery times: If replenished products do not reach sellers for This often has a negative impact on the
supply chain:
a long time, they will not be able to meet demand and help sellers
• increasing storage and labour costs,
meet customer demand. • leading to waste when forecasted demand
is not accurate,
• running out of stock and increasing
prices for products that may not meet
customer expectations.
 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

“Mass marketing campaigns are less likely to be successful; as

consumers have a range of specific tastes and requirements that
they would more likely find in alternative products”.
Bennett and Strydom (2001)

Traditional mass marketing often runs afoul of the Law of Large

Mass marketing as dominant
information channel doesn’t capture
Numbers: the idea that big numbers tend to come with big
feedback denominators. If you’re reaching millions of people, but only a tiny
fraction of those people buy your product or click your ad, you’ve
Passive Consumers wasted time and money.

L‘Oréal, Estée Lauder and other groups have stayed strong because they have a
network of brands that work well together but are also independent. P&G and
Unilever’s beauty brands declined partly because they used a one-size-fits-all
marketing strategy.

For example, in the Estée Lauder Group, besides its own brand, it has three other
major brands: Clinique, Aquamarine and MAC. They cover the mass skincare
market, the luxury skincare market and the colour cosmetics market respectively.
Each of these brands also has a loyal customer base in their own markets.
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Unreliable Consumer Feedback Channels

Focus groups can be unreliable

Consumers don't always know exactly “Consumers don't think how they feel.
what they want or what they will They don't say what they think, and they
purchase — once a product hits the don't do what they say.”
market it can be too late - David Ogilvy
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

Shortened Life Cycles
Traditional B2C model are gradually exposed to the
drawbacks of fewer categories, fewer designs and
fewer styles, the retailers itself has the disadvantages
of a cumbersome process, high sales cost and low
conversion rate.

- The traditional B2C model cannot keep up

If your product does not convince customers to buy right now, you have probably lost their attention
forever - bombarding them with ads may no longer work.

The “accelerated loyalty journey” not just providing information to help customers evaluate products,

but ALSO delivering that information in the shortest time to the most targeted customer segments

Information is not enough! Must be given to the right people at exactly the right time
 3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

The example of B2C Model Constraints in the Digital Era

People don’t buy colour TVs like they used to. This is because:
Rigid Product
Development
1. Everyone has a TV already, and they don’t like the features.
2. People watch other things like short videos and don’t use
their TVs much.

Unreliable Consumer “Hisense sold more laser TVs than anyone else in 2021. It had
Feedback Channels 43% of the market. But laser TVs are very expensive (about
RMB 16,786 each in 2021) and not many people buy them
(less than 1%).”

“Hisense sells air conditioners in almost 3,000 stores. It’s the

Struggle with second best seller after Midea. From January to October 2021, it
Shortened Life Cycles sold 11% online and 24% offline. Most of its offline sales were its
own products. But people want better things, and they buy less in
stores.”
3.2 The B2C Model and Its Constraints

The B2C Model Constraints in the Digital Era

The market is leaning towards a C2B model
• The new online + offline are gradually moving towards a symbiosis rather than the antagonistic
competition of the past B2C model.
• Online platform merchants through a long period of time on the online consumer insight, consumer
portraits are basically formed, consumer segments are settled, avoiding certain risks.

• Wider coverage, a good location can bring a lot of traffic for the shop, to
the surrounding area can be radiated, covering a larger radius.

• Stronger penetration of users, offline customer flow to online for

conversion.

• Better user experience, with offline shops clearly understanding

consumer needs and providing professional and quality proactive
shopping guidance and after-sales service.

• High competitiveness, e-commerce competition is extremely fierce, e-

commerce customer acquisition costs are gradually higher than offline
customer acquisition costs, etc.
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

United States-based consumer goods corporation Procter &

Gamble, which has enjoyed three decades of success in China.
P&G TV commercials stood out among others and really educated
a generation of Chinese in 1990s and early 2000s.

P&G's overall market share in China once reached 47%.

However, in 2016, the market share of P&G in China had declined

to 30%.
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

P&G’s losing market share in China is taken by other brands, not any
specific brand, but a large category, called others.

Find out how P&G lost market share to nimbler rivals and local players.
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

The number of P&G's global brands once reached several hundred, but so far
only 23 of them entered the Chinese market. From 1998 to 2013, P&G China
has only added two or three more brands.

Today, there are more than 2000 shampoo manufacturers in China and more
than 3000 shampoo brands in the domestic market.
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

P&G can’t compete simply by selling standardized products at lower cost

P&G failed to recognize the growth of the middle

class and underestimated the sophistication of
consumers in China.

Chinese households are paying more attention to

digitalized consumer products and high-end cosmetics. Rejoice $3.4 Nattitude $12.8
What's more, they are less price-sensitive now. Nattitude is an online retailer of shampoo
Rejoice is still aiming to meet
the customers who don’t want to spend and skin care products,
too much money on shampoo. It was founded by former P&G employees
and focuses on natural plant ingredients.

“In many ways we looked at China little bit too much as a developing market,
as opposed to the most discerning consumers in the world.”
——P&G CEO David Taylor
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

In China, P&G learns one size doesn’t fit all

Chinese consumers value a product‘s good

appearance, and they would likely buy
"pretty looks" and "charming intrinsic value"
items.

P & G China once reported the preference

of Chinese consumers for product
packaging to the U.S. headquarters, but the
headquarters refused the idea by "it will take
at least 18 months to change the packaging,
under the global unified standard, the scale A niche shampoo has become popular
is too large and the cost is too high". on Chinese social media by its
The packaging of head & shoulders attractive packaging. Young ladies on
embodies the characteristics of global the social media praised that
standardization, mass production and shampoo’s packaging is a match to
low cost. sky color.
 New definition of brand recognition:
You take a selfie with it!

Instant noodles
Avocado independence (Single set)
One can consume as much avocado as they want, The girl posts a picture of the single set instant
has been coined to replace “financial independence” noodles on social media. She wants to show the joys
It’s symbol of a modern, western, healthy lifestyle. of single life.
The girl takes a selfie with the avocado toast to
represent her middle to high socio-economic status.
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

P&G missed the shift in the channels where Chinese

consumers are shopping more and more online.

While P&G historically served all channels, it had a strong

focus on the hyper and superstores. The company‘s
advertising methods also need to change, because the
reach of traditional TV is declining, trust in digital media is
eroding and e-commerce continues to expand
 3.2 The B2C Model and Its Constraints

The example of the constraints of B2C model

Although P&G's value is "consumer is the boss", it's not

easy for a multinational enterprise that emphasizes the
American gene and whose headquarters has an
absolute say to get close to the local consumers.

The management has also been criticized for being too

slow in reacting to changing trends in key markets such
as China.

“A few years ago we got too central and global and too slow to address market opportunities. We
need more direct ownership for our regional managers all the way to the store shelf,”
——CEO David Taylor
Element 3.3
From B2C to C2B
 From B2C to C2B

Key Knowledge Points

The global economy is experiencing a shift away from business to consumer (B2C) and toward "customer to
business," or C2B.
B2C companies make products and try to sell them to people. C2B companies learn from the market and make
products that people want. C2B means that more things can be made when people ask for them at a good price,
thanks to better connections and data.
To practice C2B model, companies first have to build on-demand marketing, to build direct access to customers,
and then build online community with customers. Only then can you start the process of customer engagement in
product development.
C2B business strategy innovation has four main pillars:
1. Customer data
2. Access to distribution
3. Flexible manufacturing
4. Agile product development.
3.3 From B2C to C2B

Transforming from B2C to C2B

“ B2C and C2B is not simply a reversion of letters, it is the disruption of the entire
business logic. It is a transformation of business network from traditional supply chain
to internet collaboration. This is a revolution of business paradigm shift.

”
- Ming Zeng
Chairman of the Academic Council of Alibaba Group
3.3 From B2C to C2B

Transforming from B2C to C2B

Unreliable Consumer Struggle with Rigid Product

Feedback Channels Shortened Life Cycles Development

Responsive and Adapt to Shortened Agile Product

Unbiased Feedback Life Cycles Development
 3.3 From B2C to C2B

CRITICAL FACTORS OF C2B INNOVATION

CUSTOMER DATA ACCESS TO DISTRIBUTION FLEXIBLE MANUFACTURING AGILE PRODUCT DEVELOPMENT

Capture more online data Launch products through a Use shorter production runs with Foster an agile organizational
Use engaging content, suck as rapid, asset-light approach faster turnaround time structure and culture
entertainment and live shows,
Distribute products through e- Develop an agile supply chain in order Push innovation at decision-making
to keep consumers online.
commerce to react quickly to changes in authority for launches to frontline
Capture a wider range of data consumer demand and to teams
Work with third-party companies channels only
Pilot tests limit launches to economically produce a greater
that offer insights, launch affinity
specific variety of products Focus on speed
programs,and forge data-sharing
business units, customer Get products out quickly, capture
partnerships with social media
segments, or Build strategic relationships with feedback, shut down unsuccessful
companies
geographic markets suppliers launches, and scale up the winners
Involve suppliers more directly in the
Translate data into actionable
innovation process to leverage their Shift the organizational mindset
Insight
Integrate data from the entire value
capabilities and insights and reduce Treat launch failures as an inherent
chain (including customer the time to market. part of the process, learn from them,
feedback,transaction data, and social and keep innovating
media) into a single customer view
Sources: Alibaba and BCG analysis.
3.3 From B2C to C2B

Transforming from B2C to C2B

CUSTOMER
DATA

Responsive and Unbiased Feedback

Capture and translate data to actionable insights to get highly responsive
and unbiased feedback from consumers

Capture more Capture a wider Translate data into

online data range of data actionable insight

Use engaging content, such as Work with third-party companies Integrate data from the entire
entertainment and live shows, that offer insights, launch affinity value chain (including customer
to keep consumers online. programs, and forge data-sharing feedback, transaction data, and
partnerships with social media social media) into a single
companies customer view
3.3 From B2C to C2B

Transforming from B2C to C2B

FLEXIBLE DISTRIBUTION
& MANUFACTURING

Adapt to Shortened Life Cycle

Leverage innovative and light approaches in manufacturing and
distribution to adapt to shortened life cycles.

Use shorter production runs Build strategic relationships Launch products through a
with faster turnaround time with suppliers rapid, asset-light approach

Develop an agile supply chain in order Involve suppliers more directly in the Distribute products through e-
to react quickly to changes in innovation process to leverage their commerce channels only Pilot tests
consumer demand and to capabilities and insights and reduce limit launches to specific business
economically produce a greater the time to market. units, customer segments, or
variety of products geographic markets
3.3 From B2C to C2B

Transforming from B2C to C2B

AGILE PRODUCT
DEVELOPMENT

Agile Product Development

Incorporating agile product development enables companies to
quickly match changing consumer demand

Foster an agile organizational Focus on speed Shift the organizational

structure and culture mindset
Push innovation at decision-making Get products out quickly, capture Treat launch failures as an inherent
authority for launches to frontline feedback, shut down unsuccessful part of the process, learn from them,
teams launches, and scale up the winners and keep innovating
3.3 From B2C to C2B

A Young Entrepreneur takes C2B Approach

CASE STUDY VIDEO

A Rising Star

A case study of a young entrepreneur from Alibaba

business school
3.3 From B2C to C2B

A Young Entrepreneur takes C2B Approach

How does Zhou capture a wider range of data?

 Analyze the store’s user data on Taobao back-end platform
and discover that her main customers are university girls from
the generation born after 1990;
 Collect user feedback through store message;
 Set up accounts on Taobao and other social media platforms,
Responsive and release product and lifestyle information, keep interacting with
Unbiased Feedback customers and get user feedback.
 Customer vote for new style.

How does zhou translate data into actionable insight?

 Knowing that the users are planning to wear the clothes for
vacation or meeting boyfriend's parents, the clothing style is
thus positioned as sweet, girly style and vacation style;
 Because some users left messages inquiring about the
accessories in product picture, Zhou discovered their needs
and opened an accessories store.
3.3 From B2C to C2B

A Young Entrepreneur takes C2B Approach

Use shorter production runs with faster turnaround time.

Considering there are too many choices of goods and shops on Taobao,
Zhou launches new products every month in order to continuously attract
customers.

Build strategic relationships with suppliers

Zhou's team is only responsible for product design and store operation,
Adapt to Shortened
while the clothes are produced by Taobao factory on Taobao platform.
Life Cycles Taobao platform gathered large numbers of factories who accept small
orders, which provides rich choices and reliable guarantee for Zhou to
chose based on the cost, scale and quality.

Launch products through a rapid, asset-light approach

Before Zhou completes the design and carries out the production, she
first posts the product photos on social media and asks the fans to vote.
She then put the five styles with the most votes into small-scale
production. After the products are on the shelves, the actual sales data
determines which styles will be produced in large quantities later.
3.3 From B2C to C2B

A Young Entrepreneur takes C2B Approach

Foster an agile organizational structure and culture

Zhou's shop with annual sales of tens of millions is not with a complex
organizational structure and system. The team contains three people,
each of whom is cross-functional. For example, Zhou is responsible for
product design, development, and store operation; the other two
Agile Product partners are responsible for customer service, photo shooting, and
product packaging, etc. Each team member has direct access to
Development customers, feedback and decision-making power.

Focus on speed
Every time the products get put on the shelf, they are all small orders of
less than 100 pieces. According to the actual purchase data of users, the
warehouse will clear these products off the shelf if the sales data does
not meet the expectation within one month. If the sales data exceeds the
expectation, the mass production will be carried out.
3.3 From B2C to C2B

The case of C2B Glasses industry (Special)

Semi-finished products

Processed by retailers

Sold to customers

• Ten years ago, there was very little information transparency in the optical industry
• Poor information for sellers and buyers
3.3 From B2C to C2B

The case of C2B

Diversification

Diversity of types Diversification of materials Functional diversity

Size
Colours Eco-friendly Waterproof
Eyeglass frames Fashion Radiation protection
Eyeglass Legs Matching designs Protected against glare

In recent years, there has been a more diversified consumer demand for the current eyewear industry.
The eyewear industry can be combined with jewellery and fashion and is no longer just about
functionality.
As a result, the consumer space is inevitably enlarged and customer needs are becoming more and
more varied.
 3.3 From B2C to C2B

The case of C2B

How do physical eyewear stores compete with

online stores amid the COVID-19 pandemic?

E-commerce has indeed had a considerable impact

on the eyewear industry, represented by brick-and-
mortar shops.

Some shops have closed, while others have shifted

to high-end.
Some shops have moved from simply selling
products to providing comprehensive services for
healthy eyes. Finding the "added value" of services
that e-commerce cannot provide is the only way for
physical shops to cope with the impact of e-
commerce and continue to develop.
3.3 From B2C to C2B
A new attempt:
The case of C2B Trying to break the B2C model

Peng Yongze elaborated on the business model

Maff of Maofu technology landing way:

• Customers make choices about brands, materials and prices, and

the data is uploaded to the platform.
• According to customers' needs and preferences, the eyeglass
housekeeper selects appropriate eyeglass brands and styles
from the massive data on the platform for door-to-door service.
• After the eyeglasses housekeeper completes the optometry face
to face, the lens is determined according to the vision data, and
all the work related to the eyeglasses is completed, and the
'commodity' is really formed.
• After the order is completed, it goes back to the terminal for
processing, assembly and logistics. This is the realization of
'glasses personalized customization service'.
 3.3 From B2C to C2B

The case of C2B

• Eco-friendly concept Allbirds

(use of environmentally friendly raw materials)

Consumers now ask, what can your

brand do for the world? How will your
brand solve problems?

Allbird’s products are fully sourced from

recyclable or sustainable materials, a
concept that resonates well with a
generation concerned with climate
change.
3.3 From B2C to C2B

The case of C2B

Allbirds
• Remove the logo and decoration
• Suitable for many social occasions
• Spend less time and effort on dressing up.

Business, Sport, Party

3.3 From B2C to C2B

The case of C2B

Allbirds

• Real-time adjustments
based on consumer
feedback

Allbirds builds on-demand

marketing, builds direct
access to customers, and
then builds online
communities with
customers.
3.3 From B2C to C2B

The case of C2B

Abby’s Choice 完子心选

Abby's Choice uses data analytics to connect

consumer demand with supply chain partners. This
helps convert customer preferences into actual
products.

• Abby's Choice always puts user value first and

focuses on the needs of people in the z-era.
• Abby's Choice gradually transforms from a single
brand to multiple brands; and again.
• Abby's Choice develops strategic scale with user
needs and eventually realises online-offline
integration.
3.3 From B2C to C2B

The case of C2B

统帅（Leader）

Leader launched a "custom pre-order" campaign, where users were free to combine TV
sizes, bezels and features. Within 10 minutes of the campaign, 3,000 custom orders were
placed and over 10,000 colour TVs were sold out in two days, with over one million users
participating in the customisation.

The entire operation process is:

collect fragmented user needs - customise modular solutions - user customisation voting -
provide products based on demand --Online booking - Meeting demand (service and
installation). Taking colour TVs as an example, the fragmented needs of consumers were
collected 15 to 30 days in advance through the official Tmall Haier flagship shop and Haier
Mall, while voting was then carried out and production was classified and confirmed based
on the information voted by netizens.
3.3 From B2C to C2B

The case of C2B

IDX's main product is currently shoe
IDX 爱定客 customisation, covering the customisation
of different trendy shoes for all seasons.
Different combinations of colours, pictures
and graffiti can be chosen to match and
change the laces, toes and many other
components, enabling almost tens of
millions of variations.
 3.3 From B2C to C2B

The case of C2B

Shangpin

Custom furniture lets people choose the size and style

of their wardrobes, cabinets and other things. People
want more personal things as they get richer. Custom
furniture also uses space well and looks good together.

"In the past, we talked about mass production, mass

marketing, assembly line production and partial logistics
outsourcing, but now we are talking about personalised
marketing, flexible production and socialised logistics;
production on demand, what the customer needs, what
the company produces."
 3.3 From B2C to C2B

The case of C2B

Nappy

In its market research, P&G found that Japanese

mothers were more concerned about the cleanliness of
their children than American mothers.

For this reason P&G designed extra large capacity

nappies by changing the absorbency, so mothers don't
have to change nappies as often and can stay fresh at
the same time.

P&G also found that Japanese households generally

had less storage space and produced thinner nappies to
fit into smaller household storage spaces. The nappies
were successful in penetrating the Asian market.
 3.3 From B2C to C2B

The case of C2B

BOJUE
PHOTOGRAPHY

BOJUE PHOTOGRAPHY combines wedding photography with travel. The customer can
choose the photographer and choose the style of photography. The photographer and the
company customise different themes according to the customer's choice.
 3.3 From B2C to C2B

Transforming from B2C to C2B

Companies can create new products that

customers really want by keeping an eye on
what’s popular online, on social media, and in the
news. They can make and sell these products
C2B innovation fast through a few channels. If a product is a hit,
is they scale it up. If not, they drop it and try
becoming the norm in China. something else. The whole cycle, from idea to
launch, is super quick - just weeks instead of
months.

Source: BCG, What China Reveals about the Future of Innovation

 Traditional B2C model C2B model

The company makes the same products and sells them in The Internet makes information go fast and everywhere. Making the
the same places. It asks customers and the market what same things for everyone will be replaced by making new things
they want. It makes a product and tells customers they need quickly. Businesses will listen to customers and work together to make
it with ads and marketing. It sends the product to the stores. what they want. Customers will be able to ask for things they like and
get them in a few days from fast and flexible makers.

<>
Marketing
R&D Retail
Manufacture Distribution
Customer
Design service

Source： KPMG - 破茧成蝶：新零售赋能服装业

Element 3.4

Consumer Personas & Insights

Consumer Persona

Key Knowledge Points

Consumer Personas

Consumer Persona Consumer Centric Parts of a

Consumer Research
Overview Future Consumer Persona
• A consumer persona is a • In the internet era, the Demographics and Geography • Background
representation of your ideal consumer is at the center of • Sales Data • Demographics
customer digital interactions and product • Social Media Analytics • Interests
development. • Website/eCommerce Analytics • Goals
• Consumer persona includes • Without understanding goals, • Competitor Analysis • Fears
customer demographics, challenges, and motivations of • Third Party Research • Challenges
behavior patterns, motivations, the customer, marketing and • Government Data • Objections
fears, challenges, and goals to sales efforts are merely shots
give a much more detailed in the dark and product Behavior Patterns
picture of the customer. development is done in vain. • Keyword Search
• Social Media Analytics
• Whereas the target audience • Website/eCommerce Analytics
information might indicate where
a group lives, the age range, Psychographics
and some buying behaviors. • Interviews
• Surveys
Consumer Persona

Demographics vs Consumer Persona

Target Audience
• The target audience is simply the people who are most likely to
buy products or services, and they are united by some
common characteristics, like demographics and behaviors.
• This might indicate where a group lives, the age range, and
some buying behaviors.
Consumer Persona

What is a Consumer Persona?

Consumer Persona
• A consumer persona is a representation of your ideal customer
• Consumer persona includes customer demographics, behavior patterns,
motivations, fears, challenges, and goals to give a much more detailed
picture of the customer.
Consumer Persona

Traditional Target Audience vs Consumer Persona

Consumer Persona Target Audience

• A buyer persona is a semi-fictional • They are the people who are most likely to
representation of your ideal customer based buy your products or services, and they are
on market research and real data about your united by some common characteristics, like
existing customers. demographics and behaviors.

• The consumer persona(s) include customer • The target audience information might
demographics, behaviors, motivations, goals indicate where a group lives, the age range,
and more. and some buying behaviors.

• A focus on psychographics such as

motivations, fears and goals is differentiator
between consumer personas and Target
Audience analysis

Source: Hootsuite
Consumer Persona

Traditional Target Audience vs Consumer Persona

Consumer Persona Typical Target Audience

Background Consumer Persona’s Challenges Background

• Career Name • Career
• Life Stage • Life Stage
• Education • Education

Common Objections
Photo of Consumer

Demographics Demographics
• Sex • Sex
• Age • Age
• Income • Income / Spending
• Location Power
Goals • Location

Interests Biggest Fears Interests

• Hobbies
• Affiliations

In-depth zoom into members of the customer group to enrich our Defines and gives an identity to a particular customer group that is
understanding of the customer. Adds qualitative data from sources being aimed at. Typically segmented with quantitative data
such as interviews to quantitative data from target audience analysis
Consumer Persona

Traditional Target Audience vs Consumer Persona

Consumer Persona Typical Target Audience

Background Shirley Challenges Background

• A consultant that works • Busy work life results in • University educated
long hours occasionally less time at home • Single
• She is weekend warrior • Raising pet with high
• Undergrad at an Ivey standard is difficult
League and an MBA
• Single and dating
Common Objections
• Has always had pets in
the house and likes it
Demographics done the old way Demographics
• Female - 30 Years Old • Very careful of pets • Female
• Earns an annual wellbeing • 25-35 years old
income of $85,000 • Pets should be treated • Annual Income over
• Lives in Seattle with dignity $80,000
Washington Goals • Must be by humans • Urban Dweller
• Work hard and travel
• Keep up to date with
Interests the latest tech trends Biggest Fears Interests
• Uses linkedin to get the • Volunteer more with • Pets not getting fed • Exercises weekly
latest news for work non-profits and starving • Likes outdoor activities
• Uses Instagram to • Spend more time with • Not getting work done • Enjoys watching sports
follow family & friends her pet because of pet needs • Loves pets
• Stays fit and active • Treat her pet like a kid to be fed • Enjoys traveling

In-depth zoom into members of the customer group to enrich our Defines and gives an identity to a particular customer group that is
understanding of the customer. Adds qualitative data from sources being aimed at. Typically segmented with quantitative data
such as interviews to quantitative data from target audience analysis
Consumer Persona

The Importance of a Consumer Persona

Towards a Consumer Centric Future

In the internet era, the consumer is at the center of digital interactions and
product development. Without understanding goals, challenges, and motivations of
the customer, marketing and sales efforts are merely shots in the dark and product
development is done in vain.

For marketers, personas help create a better understanding of the user allowing for
better digital interactions that lead to stronger communications and engagement
throughout the consumer journey at each vital touchpoint.
Consumer Persona

The Importance of a Consumer Persona

Consumer Centric Future

Consumer Product
Marketing
Persona Development

Digital Consumer
Product
Interactions Insights
Consumer Persona

The Importance of a Consumer Persona

Marketing

Marketing Strategy – Who the consumers are, challenges and fears they face and the goals they have so we
1
as marketers can serve them and provide value to them

Pain Points & Solutions – Understand challenges to provide very specific and relevant communications to
2
the consumer that help create value to consumers by providing them with solutions to their pain points

Touchpoints – Personas allow marketing messages to be targeted and consistent throughout the
3
consumer journey
Consumer Persona

The Importance of a Consumer Persona

Product Development

Who Products are for – Allows product development team to understand who they are creating products
1
for and what type of products should be created

Feedback & Data – Successful products generate more feedback loops, allowing the brand to win more fans,
2
earn more feedback, data and insights

Iterative Improvements or New Products – New insight from feedback and data, may lead iterative
3
improvements for existing consumers or even the development of new products for new consumer personas
Consumer Persona

A Completed Consumer Persona

3 to 5 Consumer Personas
Ideally a brand should have between 3 to 5 consumer

?
personas. More personas allow for a larger group of
consumers to be reached and targeted but it is a tradeoff with
trying to reach too many consumers and saturating resources.

#
Consumer Persona

From Consumer Research to Application

1 Consumer
Research 2 Assemble
Consumer
Persona 3 Apply
Consumer
Persona

Identify who the consumer Build representations of the Leverage the consumer
are with quantitative and customer as consumer persona to drive strategies
qualitative research personas in the consumer journey
Consumer Persona

From Consumer Research to Application

1 Consumer
Research 2 Assemble
Consumer
Persona 3 Apply
Consumer
Persona

Identify who the consumer Build representations of the Leverage the consumer
are with quantitative and customer as consumer persona to drive strategies
qualitative research personas in the consumer journey
Consumer Persona

Part 1: Consumer Research

1 2 3

Demographics & Behavior Psychographics

Geography Patterns
Consumer Persona

Part 1: Consumer Research 1 2 3

1. Demographics & Geography

Start with existing data and target audience information

Where to Start Target Audience Information

One of the first steps for any

With the target audience you can
business involves identifying the
obtain general demographic
target audience to make sure there
information and in some cases
is interest in the brand, products, or
behavior information.
services.
Consumer Persona

Part 1: Consumer Research 1 2 3

1. Demographics & Geography

Research both internal and external data sources to discover demographic and geographic data

Primary Research / Secondary Research /

Internal Data External Data

Sales Data Competitor Analysis

Social Media Analytics Third Party Resources
Ecommerce / Website Government Data
Consumer Persona

Part 1: Consumer Research

Sales Data
• Review the company’s sales data and talk to sales staff
to discover who the company’s current customers are
and where they are from.

• By running simple analytics on the sales data such as

revenue per sale, customer retention rate, we can also
get a glimpse of what customers want right now
Consumer Persona

Part 1: Consumer Research

Social Media Analytics

• Tools from different social media platforms can aid in
creating the consumer persona.
• Facebook Insights for example provides valuable data
and insights for brands.
• By viewing the Audience Insights through Facebook’s
Ads Manager, brands can see the location, age, sex and
interest of their followers.

Image Source: socialmediaexaminer

Consumer Persona

Part 1: Consumer Research

Owned Website Analytics

• What about visitors to a brand’s owned website?
Information on who is visiting a brands website can be
found by using Google Analytics.
• By launching Google Analytics a brand can dig up
information on its website visitors that include gender,
age, and location.
• Cross reference this information with the social media
analytics, and third-party research to make sure the
audiences are the same. If not, figure out why it isn’t.

Image Source: eclipsemediasolutions

Consumer Persona

Part 1: Consumer Research

Competitor Analysis
• Review what your competitors are doing. Which markets
are your competitors selling their products/services?
Who are your competitors targeting?
• Tools such as SEMRush.com enables you to get data on
a competitor simply by inputting a competitor’s website.
• Searching an automatic dog feeder brand petsafe, we
see the display ads from the company is being targeted
at 56% female mostly at the 25 to 44 age group.

Image Source: semrush.com

Consumer Persona

Part 1: Consumer Research

Third Party Research

Leveraging industry reports is a great way to use third party
research to develop an understanding of the audience.

A North American on E-bike owners survey shows that E-

bike owners in the United States are typically Caucasian
males between 55-64 years of age with high income.
Customers are clustered in southern California and
northeastern parts of the US.

Image Source: North American E-bike Owner Survey

 Consumer Persona

Part 1: Consumer Research 1 2 3

2. Behavior Patterns

Leverage search engines, social and eCommerce analytics to discover more

Keyword Searches Social Media Analytics + Listening Ecommerce Research

Review information on those who

A great of information about people
Enables brands to discover what have bought and those who may
who are interacting with a brand
customers are searching for as it consider buying. These individuals
online. Facebook Audience Insights
relates to their products or services. have very high intention to buy are
is a common source.
likely your consumers.
Consumer Persona

Part 1: Consumer Research

Keyword Search
• Search engine tools can enable discovery of what customers are
searching for as it relates to their products and or services.

• Use Google’s Keyword Planner (paid) or Google Trends (free)

(https://trends.google.com/trends), to see which words are associated to
its brand.

• ‘Durability’ and ‘tough’ could mean that customers value quality over other
factors such as price, entertaining content or speed of shipping. This
insight can help understand the motivations of the consumer.
 Consumer Persona

Part 1: Consumer Research

Peaks around
Christmas Another around
Summer

Is the keyword
trending? Is it
consistent all year?

Image Source: Google Trends

Consumer Persona

Part 1: Consumer Research

Keywords Related queries

associated to
product

Image Source: Google Trends

Consumer Persona

Part 1: Consumer Research

Keywords
associated to
product

There’s a
competitor!

Image Source: Google Keyword Planner

Consumer Persona

Part 1: Consumer Research

See who What their

competitors are interests are
targeting

Image Source: semrush.com

Consumer Persona

Part 1: Consumer Research

See who What their

competitors are interests are
targeting

Image Source: semrush.com

Consumer Persona

Part 1: Consumer Research

Social Media Analytics

• Facebook Analytics
• Audience Insights: Understand Facebook audience to better
target ads and create more relevant content.
• Page Insights: Understand your Facebook fans, to track what
works, learn how people interact with your content and improve
results over time.

• Social media listening

• Help track conversations in real time. Social Media listening
enable marketers to find what consumers are saying

Image Source: Facebook

Consumer Persona

Part 1: Consumer Research

Audience Insights:
Understand the
possible
demographic

Image Source: Facebook

Consumer Persona

Part 1: Consumer Research

Page Insights:
Understand what content
gets the most
engagement

Image Source: Facebook

Consumer Persona

Part 1: Consumer Research

Owned eCommerce & Website Analytics

• Information on who is visiting a brands website can be
found by using Google Analytics.

• eCommerce platforms provide a plethora of analytics

options for brands and depends on the platform you are
selling on whether it be shopify, tmall, amazon, Lazada
and more.

Image Source: eclipsemediasolutions

Consumer Persona

Part 1: Consumer Research

Competitor’s eCommerce Analysis

• Review what competitors are doing on their eCommerce
• Which markets are your competitors selling their
products/services? Who are your competitors targeting?
• Search and see what competitors are doing on Aliexpress,
Amazon and other platforms.
• Review the comments to get an understanding of the
feedback they are receiving the issues that matter and
make sure you address these problems.

Automatic Dog Feeder

Consumer Persona

Part 1: Consumer Research

Look for the top

sellers

Image Source: AliExpress

Consumer Persona

Part 1: Consumer Research

Read the customer

reviews to see what
consumers want

Image Source: AliExpress

Consumer Persona

Part 1: Consumer Research

Look for the top

sellers.

This is another
competitor! Image Source: Amazon.com
 Consumer Persona

Part 1: Consumer Research

See the demand of

the product. What are
consumers buying?
Who are the key
competitors?

Image Source: JungleScout

Consumer Persona

Part 1: Consumer Research

Read the customer reviews

to see what consumers want
and need

Image Source: Amazon.com

Consumer Persona

Part 1: Consumer Research

See what consumers

like and say

Image Source: Facebook

Consumer Persona

Part 1: Consumer Research

See how
competitors are
talking to their
fans

Read Comments
and Look at UGC
Content

Image Source: Facebook

Consumer Persona

Part 1: Consumer Research 1 2 3

3. Psychographics

Dig into what the consumers are thinking and discover what’s on their minds

Surveys Interviews

While the previous two methods

Dive deeper into the consumers
allow for reach, interviews enable a
thoughts by asking them questions
two way conversation allowing
directly. Surveys can be an efficient
researchers to dive deeper with
way to get consumers thoughts,
more questions and follow up
motivations and goals.
questions.
Consumer Persona

Part 1: Consumer Research

Surveys
• Surveys are a powerful research tool to discover opinions
and attitudes towards a company and the competition from a
large group of people.
• Surveys allows you to get more responses in an efficient
manner
• Tools
1. https://www.surveymonkey.com/
2. https://www.sogosurvey.com/
3. https://www.google.com/forms/about/
4. https://surveyplanet.com/
Consumer Persona

Part 1: Consumer Research

Interviews
• To collect qualitative data, interviews play one of the
most important roles.
• Interviews enable researchers to ask questions to
the consumers directly and dig deeper for insights

Image Source: Macromill

Consumer Persona

From Consumer Research to Application

1 Consumer
Research 2 Assemble
Consumer
Persona 3 Apply
Consumer
Persona

Identify who the consumer Build representations of the Leverage the consumer
are with quantitative and customer as consumer persona to drive strategies
qualitative research personas in the consumer journey
Consumer Persona

Part 2: Assemble Consumer Persona

Using our Consumer Research to Fill In a Consumer Persona Template

Consumer Persona’s
Name
Challenges
Background

Photo of Typical
Consumer

Common Objections

Demographics

Goals
Biggest Fears
Interests
Consumer Persona

Part 2: Assemble Consumer Persona

Demographic
Basic information of the consumer.
• What is your gender?
• What is your age?
• What is your income?
• Where are you located?

From the third-party survey on eBike Owners, our fictional consumer is

likely, male, between 55 to 64, high income earner and leaves in either
California or the Northeast of the United States

Image Source: North American E-bike Owner Survey

Consumer Persona

Part 2: Assemble Consumer Persona

Background
Remember, a consumer persona is a semi-fictional representation, thus we
must make some assumptions in order to complete the persona. What is our
best guess on:
• Career
• What is your Job Title, Professional Designation(s), Career Path
• Life stage
• What is your family status, marital status
• Do you have children?
• Education
• What is your highest level of education?
Consumer Persona

Part 2: Assemble Consumer Persona

Using Surveys
Surveys are a powerful research tool to discover opinions and
attitudes towards a company and the competition from a large
group of people. Surveys are especially useful to small
businesses as online survey tools such as SurveyMonkey have
greatly brought down the price. Gone are the days of hiring
large groups of researchers to conduct surveys.

The cost effectiveness and speed of surveys has made the

traditional use of focus groups less desirable.
 Consumer Persona

Tips for Survey Tools

There are many free survey tools available online

If you are unfamiliar with these tools here a few free tools:

1. https://www.surveymonkey.com/
2. https://www.sogosurvey.com/
3. https://www.google.com/forms/about/
4. https://surveyplanet.com/
Consumer Persona

Part 2: Assemble Consumer Persona

Interests
Through surveys and interviews researchers can discover interests by asking questions such as:
• What are your primary information sources of information for research and or to make a purchase
decision?
• What social media platforms do they use?
• How often do you check social media and your email each day?
• What publications or blogs do you read?
• What hobbies do you have?
• What search engine do you use? What’s the process for you to find something online?
• What sources do you trust most?
Consumer Persona

Part 2: Assemble Consumer Persona

Using Interviews
• Despite the cost effectiveness and speed of surveys, the
quantitative nature of surveys hinders its ability to collect
important qualitative data.
• To collect qualitative data, interviews play an important role
as interviews enable researchers to ask questions to the
consumers directly and are able to ask critical follow up
questions to probe for deeper insights.

Image Source: Macromill

Consumer Persona

Part 2: Assemble Consumer Persona

Goals, Challenges, Fears and Objections

Questions to analyze goals, challenges, fears and objections – Understand consumer’s pains and how they try to fight it.
• Take me back to the time when you needed [INSERT PRODUCT] and tell me what happened?
• How did you know this product exist?
• Trigger you to search for it?
• ”What is the problem you’re trying to solve” – What is the goal and challenge the consumer has
• “Why do you need to solve this problem?” – Understand the consumer’s goals or fears
• “Why is the problem so frustrating or irritating?” – The challenges the consumer faces
• “How did you try to solve the problem before?” – the objections and challenges the consumer had
• “What is the main benefit of using this product for you? why?” – The goal that the consumer has

Note: Let the consumer talk, these questions are all about quality and not quantity. Ask follow up “why” questions to get deeper
understanding. Consumers pain points may be different, but patterns may emerge to give you a consumer insight.
Consumer Persona

Part 2: Assemble Consumer Persona

Goals, Challenges, Fears and Objections

Considerations for questions to ask during an interview to help understand features that consumers want
• “What do you want this product to do for you?” – understand the goal and challenge the consumer has
• “What features of the product benefits you the most? Why?” – Understand challenges the user is trying to overcome
• “Is the product/feature important now or can it wait?” – determine how urgent and important the need is
• “What challenges occur in the decision making process to get the product” – understand the objections in the way
• “Who else will be using this product/feature?” – understand who the real user is. Perhaps the consumer is buying the
product for a relative or a friend.
Consumer Persona

From Consumer Research to Application

1 Consumer
Research 2 Create
Consumer
Persona 3 Apply
Consumer
Persona

Identify who the consumer Build representations of the Leverage the consumer
are with quantitative and customer as consumer persona to drive strategies
qualitative research. personas in the consumer journey
 Consumer Persona

Part 3: Applying the Consumer Persona

Create Solutions Based on Goals, Challenges, Fears and Objections

Consumer Challenge Consumer Goal How Can We Help?

Solution – Marketing Message or

Challenge Consumer Goal
New Product Development

I feel guilty when I have to Automatic dog feeder schedules

I want a way to make sure my
overtime and my pet is home by the exact amount at the exact
dog is fed at the right time
themself time

My cat is very independent except she I want the ability to make sure my I can use my app to make sure I
eats too much when alone and I don’t cat is fed while I’m on a business feed my cat and I don’t have to
want to ask friends to help trip without bothering friends bother friends anymore
Consumer Persona

Part 3: Applying the Consumer Persona

Guiding Digital Marketing with Consumer Personas

• Thinking of the personas as real people allows the marketing message to
engage with real people.
• Thinking of the persona keeps consumers challenges, goals, objections and
fears first rather than the brand.
Consumer Persona

Part 3: Applying the Consumer Persona

Now that we know the Who…

What, When, and Where?
Consumer Persona

Part 3: Applying the Consumer Persona

What is the goal of marketing?

Consumer Persona

Part 3: Applying the Consumer Persona

“Reach consumers at the moments that most

influence their decisions also called touch points.”

- McKinsey
Consumer Persona

Part 3: Applying the Consumer Persona

To help us MAP out all the TOUCH POINTS,

we create a CONSUMER JOURNEY
Consumer Persona

Part 3: Applying the Consumer Persona

What is a consumer journey?

“Customer journey refers to the path followed by a customer via so-called touchpoints
before making a purchase decision. It can be visualized in a customer journey map.”

- https://en.ryte.com/wiki/Customer_Journey
Consumer Persona

Part 3: Applying the Consumer Persona

What is a touchpoint?
“Touchpoints are interactions between businesses and customers
that occur during the customer's journey. These moments
significantly influence customer experience as well as brand
perception. By outlining key touch points on a map, businesses can
capitalize on timely opportunities to optimize their customer journey.”
- Hubspot
Consumer Persona

Part 3: Applying the Consumer Persona

What is the process of consumer journey mapping?

1. All the possible customer touchpoints are mapped out
2. User journeys are created for each consumer persona
3. Consumers pain points, thinking, emotional state, key actions are recorded
 Consumer Persona

Part 3: Applying the Consumer Persona

Name What are the consumers goals?

Persona Goals

Stages Awareness Interest Purchase Loyalty

Touch- What are the touchpoints the persona uses?

points

What actions are the persona taking? What actions are the persona taking? What actions are the persona taking? What actions are the persona taking?
Key
Actions

What are the problems in achieving the goal? What are the problems in achieving the goal? What are the problems in achieving the goal? What are the problems in achieving the goal?
Pain
Points

What is the persona thinking? What is the persona thinking? What is the persona thinking? What is the persona thinking?
Thinking
Consumer Persona

Issues & Considerations

Issues when Segmenting Audiences

As typically is the case, technological Following hearings on the topic of online
advances in marketing bring with them an behavioral tracking, a set of four behavioral
increased ability to serve consumers, but advertising principles were issued in the US in
also at the risk of invading privacy. 2009:

Applied in the context of online behavior • transparency and consumer control (i.e.,
targeting, web surfers are increasingly regarding notice, consent, access of
more likely to be served with ads for information collected)
products that are most relevant to their • security for data retained
interests. However, this advantage comes • affirmative express consent (opt-in) for
at the expense that companies have material changes to existing privacy
access to our online search behavior often promises
without our approval or knowledge. • affirmative express consent (opt-in) for
sensitive data (i.e., health, financial,
The benefit, to be targeted with only those children) for behavioral advertising.
ads that we are most likely interested in.
The cost, who wants “Big Brother” These go some way to imposing limits on the
overlooking what users do? Would you ways in which digital technologies and micro
want someone observing, if they could, segmentation tactics can be used to monitor
every TV program you viewed during the online search habits and collection of
course of a year? The ethical debates are information for commercial usage.
often grey and subjective.
 Consumer Persona

Issues & Considerations

Consideration when Segmenting Audiences

Traditional segmentation based on demographic, For example, an internet-based company can offer one-
psychographic and behavioural data are well to-one service more inexpensively than can other
understood and acknowledged using traditional data venues, such as retail stores or telephone-based
and survey methods. While these methods have businesses. Frequent air fliers can check prices and
served as a useful guide for decades, the era of Big choose special services online at a fraction of the cost
Data has created segmentation version 2.0. Thanks to that the company would incur for a phone consultation
a multitude of new data types and improved audience with a ticket agent.
segmentation analysis, Marketing practitioners are
learning even greater, more granular details about The Internet also simplifies customer identification.
Cookies, or small text files stored in a visitor’s browser,
audiences everywhere.
provide unique identification of each potential customer
who visits and details how the customer has searched
With data collected via social media, mobile and other the site.
online interactions, marketers can further narrow these Marketers also can ask visitors to fill out an online
customer segments. These smaller groups, or micro- registration form. Using such information, the company
segments, allow marketers to create more tailored and can make a variety of recommendations to customers.
targeted content, offers, products and services. The marketing strategy therefore is customised in real
Companies can cater to very small segments, time, using known and accurate data about the customer.
sometimes as small as one customer at a time,
relatively efficiently and inexpensively. The MarComms potential is endless. Customers can
even do the work themselves, both to create items for
themselves and to find the perfect gifts for others. For
exmple, Mars’ M&Ms site (www.mymms.com ) lets
customers customise their own M&M’s with personalised
greetings, including messages for birthday parties,
sporting events, graduations, and weddings.
Supporting Materials:

Alibaba’s chief strategy officer on what makes a smart business today

Alibaba’s chief strategy officer on what makes a smart business today
(digitalcommerce360.com)

BCG & AliResearch, What China Reveals about the Future of Innovation
What China Reveals About the Future of Innovation (bcg.com)

Chapter 5, Smart Business: What Alibaba's Success Reveals about the Future of
Strategy, Ming Zeng, 2018