Me, My Life, My Wallet | KPMG | IE
Me, My Life, My Wallet

Me, My Life, My Wallet

Me, My Life, My Wallet

Our latest insights on consumer behaviour is based on comprehensive, customer-focused research, tapping into the extensive worldwide experience of KPMG’s network of member firms. The report includes surprising findings from a survey of 10,000 people across the US, UK, India and China with implications for consumer focussed business in Ireland and worldwide. It details insights on how the seismic influences of technological disruption, erratic socio-political and economic shifts, and enhanced mobility are upending fundamental beliefs around what drives consumer behaviour.

The multidimensional consumer

In an era defined by uncertainty, the companies that get closest to their customers will emerge ahead of the pack. This begins with an “outside-in” view, building new ways of understanding how and why people make decisions.

You already know that customer behaviour is changing. Power has shifted from companies to consumers, the mobile phone has become the remote control of our lives, trust in institutions and traditional advertising has diminished. Customer trade-offs and decisions are more opaque and moving faster.

You’re already aware that the structure and composition of industry has changed.

New entrants with radically new business models are enacting disruption across the value chain, reshaping ecosystems from sector to sector.

Meanwhile, company lifespans are shrinking and the paths to billion-dollar valuations are accelerating.

All these challenges are well documented across business media, research reports and conference presentations. But how should you use this information to understand not only where your customers are today but where they’ll be tomorrow? How can you rethink the basis of competition and pivot your operations and business models to win in the battle for growth?

It’s time for a new approach. One that employs a multidimensional framework to engage what is now a multidimensional consumer.

Five Mys

The underlying drivers of human decision making have become exponentially more complex in recent years. Yet transactional data, traditional market research and demographic profiles alone are proving inadequate to explain not just what customers are doing, but why.

As a result, many of our clients have found themselves out of step with a changing, more informed and more empowered customer.

They’re struggling to understand customer motivations and how these translate into new products and propositions, new services or ways of doing business and, crucially, how they should align their organizations to keep driving growth.

We start by taking an outside-in view of customer behaviour that enables companies to understand the multiple layers and related calculus of human decision making.

And our research has led us to focus on five key dimensions of customer behaviour — motivation, attention, connection, watch and wallet. Considering any one of these dimensions in isolation tells only one aspect of a customer’s story. Together, however, they enable companies to navigate the complexity of consumer decision making, and build a richer understanding of changing attitudes, needs and behaviour.

  1. My motivation Trust, authenticity and social values are critical but intangible motivators of the choices today’s consumers make.
  2. My attention The fight for consumer attention has never been more intense, exacerbated by unprecedented volumes of content at our fingertips.
  3. My connection Today’s technology connects humans to information and each other 24/7, driving shifts in our social interactions and behaviour.
  4. My watch The companies that understand the constraints of time and anticipate how that changes across life events are best placed to engage customers in the moments of greatest impact and to meet their needs head on.
  5. My wallet How consumers adjust their share of the wallet across life stages and pivotal life events is changing, creating a ripple effect of change across not just one, but all categories to which they allocate their money.

Read the full report here.