Purchasing decision process: Concept of the 5 "Mys"
The digital transformation is in full swing. Technological developments are rapid and are changing the purchasing decision process and, above all, the way we communicate, work, learn and live.
How digital transformation is changing customer behavior
Digital applications and digital customer loyalty programs automate existing processes on the one hand and are increasingly being developed to solve various everyday challenges on the other. The question here is: Which everyday problems can be solved by new technologies and how does this influence the purchasing decision process? To find this out, it is first necessary to understand customer behavior. A study published by KPMG shows new ways to comprehensively analyze the driving factors of consumers.
How customers make purchasing decisions today
It is important to change our perspective. Many companies continue to view the world through glasses that have brought them success in the past.
But as Confucius said: "Experience is like a lantern behind us, it only ever illuminates the part of the path we have already traveled."
Customers today expect companies that think ahead. Companies must be able to predict what customers need before they realize what they are missing. If the customer already knows what they want, it is usually already too late - as the customer has already made up their mind. If the company makes the right product suggestions to the customer in advance, they will ensure that the customer chooses your company over the competition. The success factor here is proximity to the customer & the right influence during the purchasing decision process.
New strategies must be chosen that put customers and their needs first.
A clear change in perspective: The 5 "Mys" as a foundation
The so-called "5 Mys" can serve as the basis for a new strategy. Together with the model of the three phases - behavior, finances and demographics - they help to provide a comprehensive and complete customer view.
The three phases model describes the driving factors that lead customers to make a decision. Companies that understand this concept and take it into account when designing customer experiences will benefit from a lasting competitive advantage. The results in the individual categories allow companies to recognize where their strengths lie and where there is potential for improvement.
So what is a "My"? Each of the five "Mys" tells a part of each customer's story: their motivation, attention, connections, time and money. The "5 Mys" together enable companies to better understand the complexity of customer decisions, as already mentioned, and at the same time companies learn how consumers make decisions:
The "5 Mys"
1st Mys: My connections
Recognize the digital networking of your customers so you can generate consumer-oriented insights.
2nd Mys: My attention
Gaining the attention of customers must be the first goal of a company. If you have your customers' attention, it's much easier to know where to invest and maximize your company's profits.
Mys 3: My motivation
It is crucial to recognize what motivation customers have. What standards do they set? How do they value experiences? This can help a company to focus exclusively on those things that are promising.
4th Mys: My wallet
The time factor plays a decisive role for many customers. In order to maximize customer loyalty, companies need to understand how to optimally combine the customer's time and money and what compromises can be made.
5 Mys: My time
Identifying key customer life events enables companies to build customer loyalty.
In a nutshell: A new era has begun!
The 5 My's can specifically help with digital change - the targeted use of new technologies will have a positive impact on the customer experience. But don't forget: Not every technology has the same impact on the individual areas of the customer experience.
