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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 [email protected]• Connect with me on LinkedIn (search
Martin Varley)• Twitter: @martinvarley
