NEWS26 June 2009
US— Traditional models of how people choose and purchase products are out of date, say McKinsey researchers.
In a paper entitled ‘The consumer decision journey’, David Court, Dave Elzinga, Susie Mulder and Ole Jorgen Vetvik argue that the traditional ‘funnel’ analogy for understanding how consumers narrow down their choices no longer applies.
“The funnel concept fails to capture all the touchpoints and key buying factors resulting from the explosion of product choices and digital channels, coupled with the emergence of an increasingly discerning, well-informed customer,” they write. “A more sophisticated approach is required to help marketers navigate this environment, which is less linear and more complicated than the funnel suggests.”
The model they propose is circular rather than linear, and based on constant ongoing exposure to brands. At some point a trigger starts the process of initial consideration, which is followed by active evaluation, during which the number of brands being considered could go up rather than down. It also takes into account the effect of post-purchase experience on future decisions.
The researchers say companies should align all elements of their marketing and integrate all their customer-facing activities.
“Companies need an integrated, organisation-wide ‘voice of the consumer’, with skills from advertising to public relations, product development, market research and data management,” they write.
The full paper, based on a survey of 20,000 people across three continents, can be found here.