Notes Version: Get Inside Consumers' Minds and Trigger Lifetime Results

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Get Inside the Minds of Customersand Get Lifetime Results!

Jeanette McMurtry

e4marketing

© Jeanette McMurtry, 20

www.e4marketingco.com

Old World:

Loyalty and Trust were sure indicators of long‐term success.

New World:

Brand Loyalty and Trust are

fleeting and easily destroyed.

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From 2007 to 2008:• 52% of “highly loyal” customers reduced or defected

• 1/3 defected to a competing brand

• Loyalty churn cost global brands more than 20% in lost revenues in 2008.

• In general, only 40% of brands

retain 50% or more of customers year to year.

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© Jeanette McMurtry, 2009 www.e4marketingco com

In 2008, Crest Toothpaste lost some or all sales among 59% of it’s 2007 high loyalty customers.

- CMO Council Report on US Consumer Loyalty

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In 2008, Cheerios lost 28.2% of high loyalty customers while 37.1% reduced loyalty.

‐ CMO Council Report on US Consumer Loyalty

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Consumer Trust

Broken Trust is the Number One Reason People Switch Brands.

No method for regaining trust has been proven.

Source: Yankelovich Partners

In God We Trust…But Not In Business• Globally, brand trust has slipped 50% in recent years

• 80% believe business values profits over consumers

• 66% believe business will take advantage of public

• 63% believe big business can’t be trusted

• 48% of US trust business;

• 40% trust government (on par with Russia)

• 25% of US trust banks, down from 71% in 2008


© Jeanette McMurtry, 2009 www.e4marketingc

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• Tell others 76%• Stopped buying indefinitely 58• Told business concerns 55• Bought from competition 49• Reduced frequency 49• Cancelled store card 18• Wrote about on web 13• Complained to BBB or CofC 11• Did nothing 03


When Trust is Broken


Why ESPs work

Human behavior is based upon two emotional premises:

• The Avoidance of Pain• The Pursuit of Pleasure

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Emotional Relevance

This year, at the UCLA Ahmanson-Lovelace Brain Mapping Center, Marco Iacoboni and his group used functional magnetic resonance imaging (fMRI) to measure brain responses in a group of subjects while they were watching the Super Bowl ads.


Conscious Mind Choice


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Irrational Behavior




Irrational Behavior




Irrational BehaviorInvestor Behaviors

Investors have fared well below the S&P from 1983 - 2000:• Gaining 5% when the S&P

gained 16%• Fixed income investors gained

6% while Government Bond index gained 12%

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The Happiness Hypothesis: All we need is to:

• Feel connected to others

• Making a difference

• Associate with and experience “good”

• Reciprocity

• Fairness, Justice


What Makes Us Happy

Reward and Loss Triggers


Reality


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Neuromarketing reveals consumers are:

• Self Centered: “Its all about me.”

• Crave contrast: Notice edgy, irreverent

• Lazy: Don’t make us think to get your point.

• Story fans: Facts fade; stories stick.

• Visual: Colors impact retention and action

• Emotional vs. rational: Emotion trumps reason and common logic


Christopher Morin, Author, Neuromarketer

Neuromarketing



Power of Color

Psychology and Color:

• Within 90 seconds, consumers make an unconscious judgment of a product or environment

• 60‐90% of that judgment is

based upon color

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Impact of Color

RED+ Energy, strength, power, desire

‐ Danger, anger, malice

• Enhances metabolism, respiration rate, raises blood pressure

• An accent to encourage quick decisions


Meaning of Red

BLACK+ Power, elegance, formality, prestige

‐ Death, mystery, grief

• Creates a sense of authority

• Makes other colors stand out

• Makes you look thinner


Meaning of Color

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Color Combinations



• 7.9% of postcard recipients visited PURL:

• 79% of PURL visitors entered drawing

• 11% of HTML e-mail recipients visited PURL

• Compared to prior year’s sales, the campaign generated an increase of81%

• Sales Quota: 113% of projection

Results

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Words must be about customer not the brand. Most emotionally charged words:

Approved Complete Discount Dependable Guaranteed Immediately Improved Limited Time Powerful Professional Recommended Reliable UnconditionalUnsurpassed Urgent Wonderful


Power of Words



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Amongst Internal Database:

• Achieved an ROI 31 times the costs

• Beat control by 640%

Overall Results:

• Achieved an ROI of 20 times the costs

Love the Results!

Boosting response by 300%


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If you don’t think fontsmatter,

THINK AGAIN!


Power of Fonts

FUN


Another Key Motivator


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It’s All About Me

• 58% online shoppers more likely to click through to personalized messages

• 39% more willing to buy from recognized brand

• Personalized DM pulls significantly higherthan general DM (.5 to 9.0)

• Personalized coupon increased redemption by

150% for one retailer and transaction

value by 118%


The Power of Direct

• DM to add over $143 trillion to US GDP• Average ROI per dollar spent:

– $11.63 in 2008– $11.74 in 2009

• 81% of HHs read/scan advertising mail• Growing at a rate of 4% annually while other

channels are shutting down• Represents 53% of total ad spend


Upscale CarsPurchase frequency is every three yearsLifetime is 20 years ~ ages 40 to 60Lifetime purchases are around 6

• One car = $45,000 x 6 $270,000

• Services = $1000/yr x 20 $ 20,000• Customer Worth $290,000• Referral Worth (3) $870,000• Potential LTV: $1,160,000

The Power of Lifetime ValueLifetime value

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Deliver emotional thrills that create memorable experiences.

Focus on customers, not themselves.

Lifetime Brands


ESP Brands


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MUSEUM OF HEART



(Source: Mobius Management Systems research, 300 respondents)© Jeanette McMurtry, 2009 www.e4marketingco com

Never Underestimate Service

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THANK YOU!

Get a free Report and Join the dialogue on

Psychology‐Based Marketing

LinkedIn Group ‐ PBM

[email protected]

Twitter at @jeanettee4m

© Jeanette McMurtry, 2009

www.e4marketingco.com

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Notes Version: Get Inside Consumers' Minds and Trigger Lifetime Results