In September last year, Experian completed a research study looking at retail in Australia and the need to embrace the digital world. One finding that really resonated with me was that as a result of active and intelligent engagement, 74% of customers will respond positively to a brand. Even more encouragingly, 57% of customers would be happy to recommend a product or brand, if they had a positive experience.
In order to create that experience, you need to know what your customers want and relate to them in a way that’s relevant to their life stage, attitudes and behaviours.
Social Demographer Mark McCrindle believes being able to relate to others can be achieved by being aware of external trends that shape society. He spoke on this theme, identifying five mega trends that are influencing individuals, at the launch of Experian Mosaic 2013 this week in Sydney and Melbourne. He believes the biggest trends redefining Australia right now are: technology, generations, demographics, finance and community.
We are in a rapidly changing society and technology has played a significant role in this. It’s changed the way we interact with others, the way we speak – words and phrases such as ‘tweet’ and ‘status update’ have been added to our vocabulary. Gen Ys are akin to ‘showrooming’. When shopping, they use their smartphone to price compare, read a consumer blog review and take a picture of the product, uploading it to Facebook.
Other external factors influencing social change are population growth, household structures, access to jobs, infrastructure and services.
- Melbourne will be Australia’s biggest city by 2050.
- Of the five household types (nuclear family, couples, living alone, single parent and group living), it is expected that single parent households are the group expected to see the greatest increase.
- In 1973, house prices were five times the average annual income; they are now ten times the average annual income.
- Over one third of households have neither parent born in Australia.
Understanding these changes in society enable us to create relational and authentic marketing communications. Are you taking these societal, cultural and behavioural shifts into account in your marketing plans?
Creating a common currency between individuals and organisations is one of the key benefits of Experian Mosaic 2013. We have re-built it with data at a household level, in fact, 8.5 million households across the country, and have segmented these into 49 groups and 13 types.
Groups include ‘Exclusive Environs’, made up of households in the most prestigious addresses in the country. Householders frequently take overseas holidays, attend cultural events and are employed in managerial and professional roles. ‘Books and Boots’ are the youngest and the most multicultural of all groups. These households are made up of young professionals or students, renting an inner city share apartment close to a university or the city CBD. They travel overseas regularly and are engaged in issues such as climate change.
This deep view enables us to have a strong understanding of what different traits and behaviours individual Australian consumers have, providing actionable insights. When the Mosaic groups and types are used, a shared customer language can be used to all teams across a company. This could be from the way they are targeted with marketing communications to developing products and services by R&D teams.
These insights also mean that marketers have a clear picture of what their target consumers look like – their key characteristics, behaviours, interests and hobbies – which can help to improve campaigns and touch points. Being able to deliver campaigns that achieve ROI has become increasingly important for marketers.
Reflecting on Mark’s presentation, marketing campaigns become powerful when we use insights gleaned from products like Mosaic and our own tools, our eyes, ears and observations of the societal shifts happening in the world around us.
If you would like to learn more about the latest release of Mosaic download the latest report.