The Mobile Moment of Truth

Why Mobile is Getting More Important

to CPG Industry

Moment of Truth – The Definition and The Origin

• A “moment of truth” refer to the moment when consumers interactive with products

– The First Moment of Truth (FMOT) happens when consumers see/touch your products from the shelf in the super market

– The Second Moment of Truth (SMOT) happens every time when consumers use the products

• The theory is well known in CPG industry after it’s proposed by P&G in 2005

Internet boomed - Google is now the Zero

Moment of Truth• In a blog post published in 2010, Google claims that, due to high internet adoption

consumers are now interacting with products through search, and and make purchasing

decisions before they go to the physical shop -> Search becomes the zero moment of

truth, proceeding the FMOT

• In the 1st figure, increasing percentage of people make purchase decision before they

entering the store. In the 2nd figure, the search traffic for CPG products (e.g. Food & Drink)

are increasing consistently over the years.

• To put it in general, not only search, social media/video etc.. are also Zero Moment of

Truth

Mobile will be the next big thing – How will it affect the

Three “Moments of Truth”

Zero Moment of

Truth

First Moment of

Truth

Second Moment of

Truth

Pre-Internet

EraDoesn’t Exist

Era

Internet Era

Mobile Era

Shop Shelf Home Usage

Shop Shelf Home Usage

Mobile Moment of Truth – Zero Moment

Pre-Internet

Era Doesn’t Exist

Zero Moment of

Truth

Mobile Marketing Campaigns

•Consumers are using mobile devices to browse and search information. Mobile advertising is a natural extension of its desktop version for both search and display ads.

•The key difference is that the conversion rate of mobile advertising is higher than desktop, probably due to the fact that mobile devices are still limited to provide too many options and consumers are in a hurry

•Another new area emerging will be location-based

Internet Era

Mobile Era

•Another new area emerging will be location-based services, which could be location-specific sms broadcast or a iPhone app like foursqure to allow consumers to disclose their location information in exchange of deals. Facebook recently also launched it’s Places/Deals which is similar to foursquare. This is an interesting area because convenience (and thus location) is an important factor when buying groceries.

Recommendation to CPG•CPG brands should extend their digital ad spending to cover the mobile space. Depends on the market, SMS/Mobile Website/Apps should be used to reach out to consumers and thus affects their purchasing decision.

Mobile Moment of Truth – First Moment

Pre-Internet

Era

Mobile Enabled In-store Shopping

Pre Purchase•With mobile phone at hand, consumers now skips the shopping assistant or shopper marketing tactics. Instead they use mobile phone or pads to research products on the spot:

•Comparing prices •Looking for product reviews•Social recommendations

All will definitely affects their intent of purchasing certain brands over their competitors.

First Moment of

Truth

Shop Shelf

Internet Era

Mobile Era

Upon Purchase - Point of Sale•Mobile phone can also contain coupons to be redeemed upon checkout or even become a credit card (through NFC technology like Google Wallet) to settle the bill.

Recommendation to CPG•CPG brands should consider use mobile technologies to attract and engage with the mobile-savvy consumers. Some options are using QR code on the product packing or in-store promotion to link to a coupon, or using Augmented Reality to add the entertaining and fun elements into the product. Just like hiring a shopping assistant, these interactive content can be very effective especially when your competitors are not doing.

Shop Shelf

Mobile Moment of Truth – Second Moment

Pre-Internet

Era

CRM – Personalized Post-Purchase Experience, Delivered via Mobile Device

•Mobile technology plays a vital role to convert a one-time customers to loyal customers by providing

•Personalized offers •Rewards •Interactive Contents

•Mobile devices are personal and private - an opportunity for business to create intimacy with consumers at a personal level.

Second Moment of

Truth

Home Usage

Internet Era

Mobile Era

•People are increasingly using mobile device to use social media. Seamless integration of mobile CRM with social media will create more world-of-mouth effects for the brands.

Recommendation to CPG•CPG brands should provide useful content (e.g. educational or utility), interactive engagement (e.g. games) and personalized care (e.g. rewards points/birthday surprise) to create the intimacy with consumers and enhance the loyalty to the product. Social integration should be seamless for viral effects. Every brand will have different approach – but you can benchmark with P&G.

Home Usage

Mobile Moment of Truth - Summary

Zero Moment of

Truth

First Moment of

Truth

Second Moment of

Truth

Pre-Internet

Era

Doesn’t Exist

Shop Shelf Home Usage

Internet Era

Mobile Era

Shop Shelf Home Usage

Shop Shelf Home Usage

Mobile Marketing In-Store Shopping Post-purchase CRM

Thank You

Tony Gu Tao

Founder of E-Commerce Alliance of SingaporeFounder of E-Commerce Alliance of Singapore

Partner of Great Wall Club (Singapore)

http://www.ecommerce.org.sg

tonygutao@gmail.com