Emotion marketing

Tiago Antonio Ferreira da Silva Certificate IV : Marketing ,2012 PERTH WESTERN AUSTRALIA

EMOTION MARKETINGThe Hallmark way of winning customers for life

Scott Robinette& Claire Brand with Vick Lenz

Addaptated: Tiago Antonio Ferreira da Silva

McGraw – Hill, New York,2001


PORPOSE

• In writing this book we struggled with the idea of how “add emotion” to business theories and marketing principles.

It is simple:It is the right message

At the right timeTo the right people


The Emotional E´s

• Equity• Experience(relationship)• Energy ( Convenience )


The Emotional E´s: Equity



The Emotional E´s:Equity

• Equity= Is a combination of the trust a brand earns and identity that allows consumers to feel emotionally conected to it.


The Emotional E´s:Experience



The Emotional´s: EXPERIENCE

• Experience= Deals with customers interaction with a brand

Visit to a store

Visit to a web site

Employee contacts

Communications Visit to the factory

Loyalty programs


The Emotional E´s : EXPERIENCE

Ritz-Carlton Hotel employees are empowered to do whatever it takes to ensure satisfaction.

“ We are Ladies and Gentlemen Serving Ladies and Gentlemen.”


The Emotional E´s : EXPERIENCE

• http://www.youtube.com/watch?v=KosJK_ZMMu0

HEART and Soul

Giant piano Keyboard

Whimsical * enviroment

Entertaining emploeeys

And a scope of the procuct offering háve made

FAO SCHAWARZ A TOY LOVES MECCCA

FAO = For attention off


EXPERIENCE

Sales and Marketing Management Dell computers said:“Research shows that a positive customer experience drives more e-loyalty

than traditional attributes like product slection or price”.

Quality On time delivery

Two Drives of e-loyalty


The Emotional E´s:Energy



Energy: Convenience + Save timeEnergy is the investiment of time and effort a customer makes in a

product or service.

Is it easy?

Accessible?

Worthwhile?

60% of potencial customers drop away each additional click in order. Process., According to forrester researcher.

Amazon.com leads the way with 1-click ordering.

Online shopping saves Energy and eliminating errands.


ENERGY e.g.

Inform customers by email if their flight has been canceled or delayed.

Delivers groceries on demand

Club gold members find their rental cars parked in a weather protect space with the key in the ignition.

One click order


Value and basic human needsLove,passion,guilt,acceptance

Selt-esteem,self image

Heath,security,safety

Atatus,achievement

Security,greed,power

Trust,hope,faith,belief

Expression,pleasure,control

Escape,freedom

Escape,simplicity,involvement

Fun,laughter

relief, from pressure,stabilityCircumstance

Stronger

Weaker

FromMadduck,Fulton Marketing Top of the Mind


Value and basic human needs

• To provide value,a company can associate its brand with helping a customer satisfy higher level needs.By meeting more than one need,it is possible to exponentially improve the chances of differentianting a company from its competition.


Emotion – Bridging needs and behavior

• Motives reside primarily in the unconscius mind,which makes them nearly impossible to fully understand or predict on a conscious level.



“ Root impulses to act,the instant plans for handling life” The very root of the word emotion is the Latin verb movere, “ to move ”.

Emotional Intelligence, Daniel Goleman defining motion



“Emotions actually stimulate the mind 3000 times faster than regular thought.”


Think and Feel

Head• Reflection• Conscious thoughts• Basic needs• Reason by objective• Evidence• Prudence• Transactional• Features• What ( Verbal )

Heart• Action• Unconscious feelings• Higher needs• Beliefs justified by feelings• Passion/Meaning• Relational• Benefits• How ( Perceptual )


The new paradigma

• “ The old paradgma held na idea of reason freed of the pull of emotion,” Goleman says: The new paradigm urges us to harmonize head and heart.”


Behind a brande

• The power behind a brand name that consumers insist on is undeniable.

• It all begins with a promise to deliver value to consumers.


Powerful brands

• Powerful brands assert their strength at every phase of a customer relationship.

• They make it easier to:• Acquire new customers• Retain and grow current customers• Cross-sell complementary products and services• Establish positive word of mouth and earn referrals• Fend off competitors.• Win back defections.


Consumers x Companies

• Consumers can eventually think so highly of a company that the business relationship begins to resemble a personal one.

• People come to rely on, seek out and support brands much like they do certain friendships.


Relationship behind the choice

• The effort it takes to research,experience,and evaluate many option is overwhelming compared to simply relying on a relationship that has passed the test of time – so often the simplest choice is to go with a trusted brand.


Equity

• Equity depends on how the company presents itself versus how consumers perceive it.

When identity and image do not match,the result is a lack of clarity,rapport,and trust.And where there is no trust, there will be no equity, since the two travel hand in hand.


The company identity

• A company begins asserting an identity with its aspirations:• What does it strive to be?• What promises does it intend to deliver?


Message

“A solid brand constantly repeats its message and reinforces its personality” .


Align with customers

• A company must align its identity with all its customers interactions.Things like:

Retail enviroment

Product and packaging

Web site

Direct mail and email

Mass advertising : television,print,radio,outdoor

Call center

Customer service reps.


Harley Davidson

• Fulfilling basic emotional needs for adventure,freedom,and safe,honest rebellion.

• Harley Davidson sell a life style.


Brand Equity

• Brand Equity is an enormously valuable asset.• Equity benefits all stages of customer relationship.• Acquisition,Retention,cross-selling and ractivation.


Equity has two components

• Brand identity:Is what a company strives to be, its aspirations,personality and consumer promises.

• Brand image:is how consumer actually perceive the brand identity.


Experience

• Is the collection of points at which companies and consumers exchange sensory stimli,information and emotional.


Experience

• A company must stir people’s interest,excite them,turn them from satisfied shoppers into raving advocates.

• There is no better way to do this than creating an experience that lets people interact with the company.


Experience

• A successful product experience will positively influence everything else that happens.

• Setting a good context for the relationship between company and customer.


Experience in enviroment

• 1970 and 1980: The criation of The Hard Rock Café, Cassino.


Experience in Service

• Airline Service


Experience in Communication

• The best way opportunity for a brand to make an impression on its customers is after the sale.

• Consumers are reserving their loyalty for companies that provide loyalty right back.


Experience:

• Experience is made up of all the points at which companies and consumers exchange sensory stimuli,information and emotion.


These exchanges can be devided into 3 types

• Transactional exchanges= When the product or service is actually delivered and the payment is made.

• Informational exchanges= When rational data is shared.• Emotional exchanges or touch points= Where company and consumer

connect emotionally.


Components of the Experience

Company should orchestrate and align each order:•Retail environment.•Product or Service itself•Loyalty building•Follow ups•Customer Service•Social Exchanges•Events


Not used

• Points based frequency are based on rational information and rewards,not emotion.

• A company must first recognize and value its customers,connecting with them emotionally before it rewards them.

• If experiences can meet people’s basic human needs,then consumers will reward the company with loyalty


Time is the new currency

• Society is in a phase of paring down and simplifying.• Allocating time to the people,activities and events.• Marketers should make all aspects of their product: the

sale,delivery,use,service easy and efficient.

• Provide to customers the freedom to spend their time on what’s important to them.

• Company demonstrates that it understands their priorities and wants to help them manage their time and energy.

• An extraordinarily strong product or service gives consumers the confidence that they will not waste any more energy on it

The consequence


Make things personalized• Consumers fell more valued, Using their names• Providing what is uniquely important to their lives.• Making things acessible,easier, personalized and worthwhile.

• Give customers back some energy.• Sharing it will engage people and help promote an atmosphere of

trust,empowerment and loyalty.

The consequence


Benefits on saving energy

• The end benefit is that customers are able to enjoy a relaxed family dinner.• Go out on a date• Pursue a favourite hobby.


Challenge to the marketers

• Marketers need to focus on giving consumers the extra time and helping them fulfil their emotional needs.

• Emotional marketing know the power of making things easy and delighting people in this way.


So,

• Energy is made of time.• Today’s society, peoples time is being stretched in more directions than

ever.• Consumers focus their time on the important activities,events and people.• Companies can use technology and information combined with security to

empower customers.• Companies should have the ability to create more time.• Effectivelly managing people’s Energy implies that all exchanges with the

company are interesting and engaging to the customer.• Not wasting a person’s time enhance a one-to-one marketing strategy.


Relationship

• The relationship between a company and its customers provides the opportunity for a meaningful exchange of value


The value star functions on three levels

1. To evaluate a brand’s overall value proposition compared to the competition.

2. To analyze value as perceived by different customer segments.3. To help tailor products and services to individual preferences.


Data base segmentation

• By transaction or purchase behavior is only the first step-truly understanding value means taking into account life stage,demographics and attitudinal characteristics.


4 life cycles stages are:

• Acquisition High impact lead generation contacts. Introductory letters. Personal invitations to visit for free consultations or information.• Assimilation Customer welcome messages. Thank you notes for purchases. Activation incentives for new customers. Incentives for future purchases.



• Cultivation Special benefits and offers to high-value customers. Card and/or gifts for personal milestones or seasonal holidays. Referral request and follow-up thank you notes. Thank you notes or emails following orders. Newsletters with value-added content. Offers to drive top of mind awareness during high activity time

frames(back to school,holiday,sprins/home,improvement,etc) Usage incentives Customers satisfaction surveys Target cross-sell information



• Reactivation Services recovery messages. Intervention contacts with reasons to stay with the company. Acknowledgements that customers are valued and missed. Activation incentives for inactive customers. Notes letting customers know “ the door is always open”

Many to

one

Few to

one

One to

one


Companies should

• To commit to the day-to-day requirements of building successful relationships, including:

1. Mutual benefit to both parties involved.2. Commitment and dedication to making the relationship work over time.3. Authenticity, openness and genuine expressions of carrying4. Communication to help covey the other three elements.


Communication strategy

• There are 5 elements that are especially important to consider when determining an emotional driven contact strategy.

1-Relevance= Message must have meaning to the recipient.Will the recipient understand the reason for getting this?Is it meaningful and of interest to the recipient.

2-Timing= Might be expected at other times surprising.But neve unwelcome.3-Sender / Recipient Relationship=Who is it from?4-Frequency = The more frequent the communication,the more impact it can

have on the relationship.5-Perceived value=It must to be relevant

Relevant communication makes a recipient fell known and valued


Direct marketing based on 5 itens1-Perceived value Is the piece something the recipient would expect to receive from the sender? Will it be welcome? Is it likely to enhance the relationship?2-Clarity Is the purpose of the contact obvious? If a response is desired, are the expectations clear?3-Consistency Does the piece reflect the sender’s brand identity/image?4-Mutual benefit Does it offer value to the sender as well as the recipient?5-Creative concept Is it engaging and memorable? Is it unique and differentiated? Is the content compelling?


Selecting communication vehicles

• Postcards for sales promotions• Emails for updates• Help full information• Phone call to check satisfaction with a recent purchase.• 87% prefer to hear about new products and services by direct mail.• 52% notices loyalty and sends a thank you letter and gift Would strongly

encourage them to be more loyal.• Sending a letter and gift after an inconvenience strongly encourages 46%

of customers to remain more loyal.• A company that simply notices loyalty and sends a thank you letter, would

encourage 37% to more loyal


3 Emotional E’s

• Equity= For developers and reinforcing trust• Experience= For enhancing exchanges and interactions• Energy= for contacts convenient for the customer.• Emotional marketing is impossible without a robust ongoing face-to-face,

two way dialogue with customers.• Effective Emotion Marketing communication are personal, relevant,

relationship-focused, intended to create an emotional connection unique and differentiated.

• The communication stream should include functional, rational and emotional contacts.


Emotional Marketing on the Internet

• “The web is informal, it is not emotional and has not yet taken its place among the major vehicle of persuasion.”

• Profitability is driven by loyalty, and loyalty is achieved largely by building emotional relationships with best customers.


Who are business best customers in the firs place?

Who are they?What do they buy?What do the value?How do they shop?

How are they motivated?E F F E C T I V E

Means to reach these people?Communications that deliv.er relevant messages in timely meaningful ways


Business online

• “ Doing business online is about more than processing web-based transations.It is about using the internet to develop, maintain,and manage positive relationships with customers, partners and suppliers.

• The result is long term relationships, repeat sales, business efficiency and increased profitability.”


Good opportuninity to the marketers.

• Marketers also find that few people pay attention to their email ads.

• Minimizing the number of clicks

• Making the check out process secure.

• What their sites can do to conncect emotionally?To find out not only what products their visitors purchase, but what

experiences, services and information they truly value.


Broken Paradigmas

• Merely presenting merchandise

Or

• Offering a convenient way to purchase it


Internet connecting emotionally

• Williams-sonoma = share recipes.

http://www.williams-sonoma.com


Internet connecting emotionally

• Amazon.com = Book and music reviews and make product suggestion based on customers post purchase behavior.


Amazon.com


Petopia.com

• A complete guide to hunter pets in the word of war craft.• Bottomless bowl.


REI.COM

• Top-Brand Outdoor Clothing, Footwear & Gear for Summer ...


Overcommunicating

“ It is a signal to consumers that a company does not care about their time.”

Customizing means: Collecting data regarding purchase behaviour, shopping partners, demographics, services, inquires and like then putting all of it to use.


American Airlines


Franklin Covey.com

Our Mission• We enable greatness in people and organizations everywhere.FranklinCovey creates

transformational leadership in people and organizations aroundthe globe through training, executive coaching, and principle based programs.


Early stages of internet

• In the early stages of the web, companies have mostly been using its unique properties to sell more goods.

• Strategies like this may or may not work.At best, they will result in a quick,short term revenue hit,but won’t go very far in bonding with customers.


Important

• WUY – “WE understand YOU” and “ know your world is complicated” we want to help make it simpler by

providing unique, relevant solutions that enhance your life.


Bringing emotion to E.commerce

• Know why a customer is visiting: Companies must know and recognize what motivates people to go a site,then develop the site with those drivers in mind.

• It should be easily navegable, getting people in, around,and out of the site as effortlessly is possible, leaving out banners,ads,unnecessary links and slow to download graphics.


Passion

• Facts,stories,entertainment,pictures,videos and sound.

Content Architeture Navigation Design


When appropriate add content

• Customer testimonials and ratings• Access to a community or chat room• Product recommendations.• Chances to ask an expert.• Tips on how to use or enhance the product.• Entertainment


Customize Messages

• Provide real value.


Provide real value.


Integrate the web sit with other interactions and touch points

• Chat and call center


Create intrigue

• Great companies, brands can not exist just by providing information. The great ones have mystery and sensuality.


Five points of the value star.

• Since companies have limited resources to deliver messages, and consumers have limited time to hear them, a brand can not win on all five points of the value star. It should decide strategically which dimensions it will lead with and which it will deliberately not emphasize.


Winner companies

• To win in the marketplace, a company has to meet two objectives.1. Lead on at least two of the five value star dimension, including one or

more from the emotional side.2. Be at least neutral on the other dimensions to ensure a brand remains in

consumers decision sets.


The star value

• In today’s new economy, consumers have an enormous array of choices to meet their needs. If a company fails to offer a solid product value, consumers will have an easy time defecting to a competitor.


Rational points of value star.

• Product and money, the rational points of the value star, are the cost of entry into a competitive market. A brand will win based on the Emotional E’S,but satisfying the rational side is necessary to get into a competitive market.A brand will win based on the Emotional ES, but satisfying the rational side is necessary to get into consumers decision sets in the first place.

• Choosing to lead solely on product money is not a sound strategy – they are the easiest marketing tools for a competitor to replicate, and do not represent a sustainable, competitive advantage.


Emotional Marketing

• Treat employess as individuals seeking out and finding ways to meet their specific needs.

• Managers who inspire loyaty must be truly interested in helping people develop and have the interpessoal skills to facilate that process.

• Managers must be mentors not only for delegating tasks.• They must inspire and motivate employees to do what they do the best.• In short, managers must lead.


Managers x Employess

Managers guessed• Good wages• Job security• Promotion/growth

Employees preference• Full appreciation for work done• Feeling in on things• Sympathetic help on personal

problems


FACTS

• Personal thanks: 42%• Written thanks:24%• Promotion for performance:22%• Public Praise:19%• Morale Building meetings:8%

Conclusion: Easy and less expensive

Source: Armstrong


Findings about employees

• The best employees prefer to work for companies that deliver, in turn, builds customer loyalty.

• Our sales and service people are trained to know our products and to be friendly and helpful. They are urged to take all the time necessary to take care of you.

• A clear and well articulated ideology attracts to the company people whose personal values are compatible with the company’s core values.


Walt Disney’s include

• No cynicism.• Nurturing and promulgation of wholesome American values.• Creativity, dreams and imagination.• Fanatical attention to consistency and detail.• Preservation and control of the Disney Magic.


Talking about excellence

• “ Excellence happens only when people have a deeply felt sense of purpose in their lives.”

• “ Human beings want to belong to something that has significance and meaning. They want to know they are making a difference and are contributing to an important endeavor.”

Source: Galup’s workplace column


Experience starts with people

• Instigating social change• Innovating• Providing opportunity• Improving the quality of life• Building relationship provide

compelling

Reasons to give loyalty to a company


Flexibility

• “Could mean being empowered to make any decisions necessary to make a customer happy.”

Try to integrate my work into my life!!!


Rational and Emotional Drivers

Rational Drivers• Clear expectation• Appropriate materials and

equipaments• Commitment to quality

Emotional Drivers• The opportunity to do what an

employee is best at• The sense that opinions

expressed are valued• Best friend at work• Opportunities to learn and grow


Acquisition,Recruting and Hiring

“It is not technical skills we are looking for, it is nice people.We can train people to do anything technical, but we can’t make them nice.”

“Hiring starts of looking for people with good attitude, people who enjoy serving other people.”


Assimilation Training and early experience. Training programs and orientation.

Cultivation: The career phase Experienced Committed Empowered employees

Reactivation: From rough spots to resignation Keep the open door allowing workers to return when appropriate.

Acquisition,Recruting and Hiring


Communicating with employess


Reactivation

The add communication with employees is the opportunity for spontaneity


Employee loyalty

• Customer loyalty is strongly linked to employee loyalty.• Employees play a critical role in building relationships between customers

and companies.• Whether they are on the front lines or working at headquarters,

employees benefit from a customer centric culture.• Corporate downsizing, layoffs, free agents and tight labour market are a

few factors that become loyalty difficult.• Establishing clear corporate ideology plays an important part in building a

company’s Equity and in attracting and keeping the right employees.• Managers represent the strongest connection between an individual and

an employer, strong leadership adds value to an employee's experience with an organization.

• The need for flexibility, due in large part to workers desire for work – life balance, is one of the biggest challenges facing employers today.

• A satisfying job ( product ) and competitive compensation ( money ) are minimum criticals for employee loyalty.


An action plan

Is not a stand alone strategy.

Won’t mask unhealthy relationship practices.

Calls for a long term commitment to customer relationships.

Needs to down support and a caring corporate culture.

Requires continuous effort at all levels of the company.


Excellence

• Excelence is:An aspirationAn attitudeA PursuitA way of life

• Excellence is found• In the caring• In the trying• In the doing

It is our objective. We seek it with dedication.


Excellence

• Excellence is all of us working together,aspiration to the fullness of our potential.

• Always in pursuit of higher standards determined to do.• Everything we do somehow better than it ever has been done before.


Succesful Emotion Marketing• Require a four stage action plan:


Stages of action plan: Stage 1 Assessment

1-Assessment: Customer research, relevant databases, callcenters reports website activity reports, marketing strategies

Answer:

What customers want and value from the organization?

How customers currenty perceive the organization?


Assessment Involves:

• Assembling existing customer research and other data.

• Conducting additional research as needed.

• Assessing strengths and weakness relative to competitors on each of the five points of the value star.

• Assessing relative importance of each value driver to each consumer segment ( and ideally to each individual customer).

• Identifying gaps where customer needs are not currently being full met.


Stages of action plan: Stage 1 Assessment

• Equity

Dos the company have hour best interest at heart?

Does the company share your values?

Would you feel comfortable recommending the company to friends?

What is your level of trust?


Experience

• Experience

Is the shopping enviroment engaging?

Are the customer service reps a attentive and helpful?

Is it pleasant to interact with the company?

Regard less of the distribution channel?


Energy

• Energy

Is the order process easy?

Does the company respect and value your time?


Stages of action plan: Stage 2 Strategy

• Strategies, with accompanying objectives and metrics based on each segment’s value and potential value to the company, should be created with an eye toward allocating resources to meeting the customers higher level needs.


Stages of action plan: Stage 2 Strategy

Strategy1. Identify relative attractiveness of each segment2. Determine strengths and close value gaps, identified the assessment

stage.3. Determine specific tactics to implement for each strategy.4. Develop a communication plan5. Devise metrics and measurement methodology.6. Adjusting internal organizational issues as need structure,

performance management, staffing and training.7. Ensuring appropriate it infrastructure is in place to assist in adding

customer value and measuring the effectiveness at the initiative.


Stages of action plan: Stage 3 Implementation

• Write relationship building principles into corporate beliefs and values make them a dynamic part of culture.

• Create a customer centric organization structure.

• Make customer focused behaviours a criteria for hiring.

• Continuously train and retrain employees to better anticipate and meet customers needs.

• Set performance objectives and incentives around loyalty measures.

• Empower front line employees to deliver superior customer service.


Stages of action plan: Stage 4 Evaluation

• Building strong relationship is a long term proposition.

• True loyalty is not earned in a month or a quarter – but evidence proves the benefits are well worth the investment.

• Short term quantitative measures• Qualitative measures.

• Long term quantitative measures.

• Challenges to Emotion Marketers may include desire for short term gain, cost, dealing with the scope of a relationship – building program, and difficulty translating mass communication to individual messages.


Highlights

Travel

Emotion marketing