Buying Behaviour Explained

How to Keep Your Customers Coming Back for More

Presented by Martin VarleyPresident & CEO of Customer Focus

With Original Research fromImpact 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 itBecause you’re worth it

It’s the real thingBe 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 Newell-Legner

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: re-marketing

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