The Future of the Customer Journey (Part 1) ~From ad:tech tokyo international 2015~

AdTech Tokyo International 2015, a global digital marketing event, was held at Tokyo Midtown Hall in July 2015. This time, we present content from a session titled "The Future of the Customer Journey."

From left: Mr. Kizuna Kato ( Salesforce.com ),Mr. Keisuke Konishi (Dentsu Inc.),Mr. Ken Suzuki ( New Balance Japan ), Mr. Shintaro Tabata (LINE)

Kato: In this session, we'll discuss the theme "The Future of the Customer Journey." First, I'll provide a brief introduction. If we define the term "customer journey," it could be described as "the individual customer experience created by the continuous sequence of all moments where the customer connects with the company." It's a crucial keyword for considering today's marketing, and it's undergoing significant changes amid digitalization. But why, and what fundamental changes are occurring?

Konishi: Of course, the proliferation of smartphones has fundamentally altered the customer journey, but the concept itself is also growing in importance. If I were to cite three factors: First, the consumer shift to digital media has made customer touchpoints far more "diverse and fragmented" compared to the past. While this may seem complex and challenging for marketers, customers are simply gathering information and making purchases efficiently using the most accessible devices and media. Only by understanding the customer journey can marketing approaches be optimized. Second, the smartphone shift has made "control" over media and customer touchpoints more customer-driven. Companies and media can no longer control the journey as they once did; they can only influence it or simplify the path.

The third change is "instantization," where the process from consumer awareness to purchase/action has accelerated dramatically. This differs from the traditional image of a journey; today, information gathering and consumption occur in "moments" lasting seconds to minutes, creating new opportunities for engagement. Furthermore, today's consumers are "Always On." This is an era where journeys—discovery, interest, search, and purchase—can occur anytime, 24/7, via smartphones. Grasping and creating customer-centric timing has become critically important.

Suzuki: While the customer journey is by no means a new concept, I believe it is an essential perspective in this digital age. I would like to point out three changes in the journey.
First, the shift in "media experience." During the heyday of mass marketing, mass media played a significant role in making consumer needs and desires explicit as they became customers. Today, however, digital media, led by social media, has greatly eroded the traditional media experience, and smartphones have given individuals control over information selection and consumption. Second is the change in the "purchase experience." P&G once noted that as retail influence grew, the moment consumers physically interact with and select products in-store became more crucial than brand awareness through media—defining it as the first "Moment of Truth." However, today, digitalization and the "instantaneous" nature of the purchasing process have re-emphasized the importance of the Zero Moment of Truth (ZMOT) – the starting point of the process, such as a Google search. This now significantly influences product comparison and channel selection itself.

The third shift is the changing nature of the "usage experience." Today, the importance of core moments and experiences that create brand value has increased even further. Social media amplifies these experiences by sharing them, while digital services have moved the usage experience from post-purchase to the starting point (pre-purchase). Adopting models like freemium has enabled the proposition: "Try it first, get satisfied, then pay later."

Tabata: I believe the changes brought by smartphones represent an irreversible historical paradigm shift that will have an even greater impact going forward than we currently realize. We call it the customer "journey." The massive transformation in "mobility" and "travel" brought about by the mass-produced Model T Ford in the early 20th century is literally happening again today in the 21st century, driven by smartphone adoption. We can access information anytime on the device in our hands, instantly go anywhere, and buy anything. In other words, the vehicle of the journey itself has completely changed.

 

(Continued in Part 2 )