Buying Behaviour Explained
How to Keep Your Customers
Coming Back for More
Presented by Martin Varley
President & CEO of Customer Focus
With Original Research from
Impact Consulting Psychologists
Why it’s important
Retaining existing customers
costs five times less than
attracting new ones.
Source: Lee Resource Inc.
Cognitive Dissonance
Two (or more) opposing
thoughts, e.g. I like smoking
but I know it’s bad for me
We are ‘wired’ to reduce this
conflict (quit smoking or decide
you’re not really at risk)
Cognitive Dissonance
Dissonance occurs when things go
wrong after a purchase decision:
• Unexpected price hikes at checkout
• Poor after-sales service
• Poor quality product / service
• Perceived indifference
What could happen
• The customer’s attitude could change
• They could research competitors
• They may engage in trivialization –
what didn’t matter before becomes a
top priority
• They are likely to shop around and
find a good deal elsewhere
It doesn’t stop there…
The majority of dissatisfied
consumers will tell between 9
and 15 people. About 13% tell
more than 20 people.
Source: White House Office of Consumer Affairs,
Washington, DC
Building trust
How to ensure
you deliver
customer
satisfaction
Be trustworthy
Plausibility
Be trustworthy
Credibility
Be trustworthy
Honesty
Deliver a positive experience
60% of consumers will pay more
for a better experience; 86%
break ties following a bad
customer experience.
Source: Harris Interactive, Customer Experience Impact
Report
Using cognitive dissonance
When you care enough to send
the very best
Just do it
Because you’re worth it
It’s the real thing
Be all that you can be
Ensure value
It takes 12 service experiences
where a consumer feels they
have received value, to make
up for one negative experience
Source: “Understanding Customers” by Ruby NewellLegner
Handle problems well
Those whose issue is successfully
resolved, quickly, will tell about
4 to 6 people about their
experience.
Source: White House Office of Consumer Affairs,
Washington, DC
Practical applications
What do you
know about your
customer after
one purchase?
What info could you request?
•
•
•
•
•
Age
Gender
Industry
Source
Opt In
Where can you collect data?
How you can use data
What is CRM?
A company-wide
business strategy
designed to reduce
costs and increase
profitability by
solidifying customer
satisfaction, loyalty,
and advocacy.
Why CRM?
• Helps you identify
opportunities
• Allows easy
segmentation of the
database
• Needs to be linked to
all sales channels
Further benefits of CRM
Source: Benchmark
Targeted marketing
•
•
•
•
Builds interest
Creates brand loyalty
Boosts competitive strength
Maximizes return on
investment
Importance of targeting
61% of emails received at
professional email accounts are
not essential.
Source: Mimecast
What to send
•
•
•
Email: welcome
message, coupon
for next purchase,
newsletter,
promotional
material
Mail: catalog /
brochure
Web: remarketing
When to send
Welcome message: Straight
away!
Triggered email messages get
119% higher click-through
rates than “business as usual”
messages.
Source: Epsilon
When to send
The average person first checks
their email just after 7:00 AM
Consider the nature of your
message and what makes the
most sense for your brand.
Use your database well
Personalized emails improve
click-through rates by 14%,
and conversion rates by 10%
Source: Aberdeen
Stay relevant
The top reasons for U.S. email
users to unsubscribe from a
business or non-profit email
subscription are too many
emails (69%) and content that
is no longer relevant (56%).
Source: Chadwick Martin Bailey
Customers as advocates
•
•
•
•
Ask for feedback
and add it to your
website
Offer an incentive
to ‘refer a friend’
Engage with them
via social media –
encourage ‘likes’
Deliver an
exceptional product
exceptionally well
We’re here to help
• Visit our website
www.customerfocus.com
• Call me on 305-639-0252
• Email martin@customerfocus.com
• Connect with me on LinkedIn (search
Martin Varley)
• Twitter: @martinvarley