Customer behavior and purchase decision-making is growing increasingly complex, driven by multiple factors that include accelerated mass adoption of new technologies and mobility, according to KPMG. A new KPMG report, Me, My Life, My Wallet, introduces a new customer engagement framework that is designed to help businesses understand the forces that influence decision-making and preferences of today’s customers.
“How companies understand their customers and respond to their unmet needs has changed drastically,” says Julio Hernandez, head of KPMG’s Global Customer Center of Excellence and U.S. advisory customer solutions lead partner. “Differentiating your products, services and experiences requires a deep understanding of the trade-offs customers are willing to make, as well as the forces impacting their decision to open and close their wallets.”
The survey found that 57% of U.S. respondents said they would like technology and apps to automatically filter information for them and that the U.S. has the highest media and digital media consumption compared to the rest of the world. U.S. consumers also demonstrate more trust in online reviews.
“Ordering and paying for goods and services on mobile devices is becoming the norm, which is why we’re seeing significant investments by retailers in the mobile consumer experience,” says Mark Larson, national leader of KPMG’s consumer and retail practice. “Companies need to adjust to customers’ increasing dependence on mobile devices and provide frictionless experiences and on-demand services for everything from food to a pet grooming.”
KPMG’s ‘Five Mys’ framework is designed to help strengthen businesses in the race to the customer. The ‘Five Mys’ include:
- My motivation – characteristics that drive behavior and set our expectations.
- My attention – ways we direct our attention and focus.
- My connection – how we connect to information, devices and each other.
- My watch – how we place a value on time and manage its constraints.
- My wallet – how the spend and save functions of our wallet change during our lives.
“Making sense of the signals of change is critical to keeping up with your evolving customers. Finding the right ways to mine and analyze these signals will help companies better predict customers’ changing needs and expectations,” says Colleen Drummond, head of KPMG Innovation Labs and KPMG partner in the U.S.