Customer choices have always been influenced and governed by multiple factors, but never has this been as complex and subject to disruption as it is today.
The Five Mys framework is a tool designed to help organizations identify what customers value in an experience, understand the moments that matter to them, get smarter about the connections that contextualize their lives, and learn from the trade-offs they make around time and money. How these factors work in concert – and how they change across different life stages and life events – is the key to unlocking real market insights and understanding both where your customer is today and where they'll likely be tomorrow.
Characteristics that drive behaviour and expectations
Today, a customer's best experiences have become their expectations. They no longer compare a company solely to its closest competitors but rather to whoever sets the standard for their best experience as customers. They crave convenience and more intuitive, personalized experiences, value peer reviews and social reference, and place more confidence in individual influencers than in companies and institutions.
Ways people direct their attention and focus
In the age of data overload, individuals are making fundamental shifts as to how they process and filter the information in their increasingly crowded environment. As patience thresholds fall, they are cutting through the "noise" to focus their energies on the things that matter most.
Understanding how individual Canadians prioritize their time and attention is essential to breaking through that noise and building deeper, more meaningful relationships with customers.
How individuals connect to devices, information and each other
Increased connectivity is leading to more digitally "connected" interactions. Consequently, they're getting smarter about the world and the world is getting smarter about them; specifically about who they are, their communities, cultures, trends, and groups that share commonalities.
Understanding the shape and patterns of these wide-ranging interactions and networks is central to understanding how decisions are influenced, when and by whom. The companies that cultivate such an understanding, and recognize how technology is constantly changing the game, will be the ones best equipped to engage with customers on their terms.
How individuals balance the constraints of time and how that changes across life events
How much time individuals have (or think they have) influences how they interact with other people, services, and companies. More and more, individuals are using technology to automate or accelerate tasks throughout their lives, whether with recurring grocery and household orders or the use of algorithms to help guide them on what to purchase, watch, or listen to next.
By understanding the impact of life events on the trade-offs between time and money – as well as when and where they occur, how this is changing and new, emerging life events – companies can engage with customers at the time of greatest impact, identifying and addressing their unmet needs.
How individuals adjust their share of wallet across life events
The shape of an individual's wallet changes according to major life events and often shares a symbiotic relationship with time. How much money they have, how they choose to allocate it and their attitude towards it shifts based on numerous factors, not just salary or age.
Understanding the relationship between income, consumption, and spend mix – and how this relationship changes for different generations across various life events – provides a level of intelligence beyond that offered by traditional demographic models.
How the new customer wallet is changed by individuals' motivation, attention, and connection will drive the next generation of business models and determine the companies that thrive in the race for the evolving customer.
For more information on the Five Mys, their business impact, the questions you should be asking as well as an overview of the trends shaping Canadians' buying behaviours, contact one of KPMG's professionals.
*All statistics quoted are from 2018 Me, my life, my wallet survey results.