In Pursuit of the New Consumer Creating a Captivating Brand Experience

new thinking for direct marketing

in pursuit of the new consumer: creating a captivating brand experience

presented bylois brayfield; president


“The majority of people meet with failure because of their lack of

persistence in creating new plans to take the place of those which

fail.”

- Napoleon Hill; Author-Innovator


TesaracPeriods in history when momentous social and cultural changes occur. During a Tesarac, society becomes increasingly chaotic and confusing before reorganizing itself in ways that no one can accurately predict or easily anticipate.

Shel Silverstein – American author and poet


a few things to think about …

123

understanding the new experience

mapping the experience

managing the experience

4 selling the experience


understanding the new experience (the decision path)

1


the traditional funnel

70%


the new decision path

In depth qualitative and quantitative research conducted in three major geographic locations in 8 major consumer industries. 20,000 interviews.

McKinsey & Company


trigger

initial consideration set

active evaluation

purchase

purchase experience

active

passive

align your marketing efforts!

45%


is the new acquisition model a really good retention plan?


mapping the experience

2


a little test …


Answer yes, no or “sort of”– Are you regularly testing new formats and new offers (both

offline and online?)– Do you regularly monitor what customers are saying about

your brand and then DO something with the information?– Do you offer relevant content, appropriate to your brand, in a

place where THEY might look for it?– Do you have a specific plan for those new customers which

come in through search?– Do you have a specific “thank you” plan established for loyal

customers?– Have you created triggered programs that tap customers &

prospects on the shoulder depending upon specific behavior? – Do you have a robust way of capturing prospects that might

be interested in your brand but have yet to purchase?– Do ALL your marketing efforts have a “call to action” offering

something of true value that is unique and relevant?


game changer?acquisition & retention programs


Brands must map the customer experience and then deliver on their expectations


How do your customers make purchase decisions?

consumer-driven(company reactive)

• research• talking to friends• third party sites• interactive search• word of mouth• blogs• social marketing

trigger


active evaluation

purchase

purchase experience


consumer driven research:

Are you in a position to react to prospect research efforts?


If a consumer engages with a brand in ANY way, they are 63% more likely to purchase a product in the future.


140,000 rented names1.1% response

+1.8% (2520 names) to raise their hands (note: these are “qualified” prospects)

convert 27% into new buyers (680) via series of triggered emails (without having to pay for the name a second time!)


one-and-done


research

co-op lists+ overlays

search+ social

free online offerrelevant guide

trigger email offerwelcome message

trigger emailgeo-specific offer

direct mail

additional 1.8% raise handconvert at 27%

and more …


What compelling reason can you give prospects to leave an electronic trail online?


Tony Hsieh’s rules of engagement:

ICEEInterestingCompellingEntertainingEducational


company-driven(proactive)• tap on the shoulder• offer-driven marketing• triggered emails• loyalty messages• aligned message

across channels

trigger


active evaluation

purchase

purchase experience

how will you engage customers based on their needs?


company driven marketing:

Do your efforts still reach them where they are?

Is your message still relevant?


company driven marketing:

And what about this decrease in loyalty? What are you doing to truly captivate customers?


loyalty is no longer guaranteed


You cannot afford generic programs in which all customers are treated the same.

Speak to them where they are!


mapping the customer experience …

trigger


active evaluation

purchase

purchase experience

your most profitable opportunity


Brands must develop programs in which the customer is involved in the process and their needs are met.


managing the experience

3


a little history …

commodity goods services experiences

extract make deliver stage

customization customization customization

commoditization commoditization

Joseph Pine; Author, “Mass Customization”

information

content

?


Commodities$ .02

Goods$ .20

Services$2.00

Experiences$5.00

a little history …31 flavors!


managing the customer experience is paramount

% EXCEEDING PROFIT TARGETS

Managed customer experience

Did not actively manage

Those companies who actively manage the customer experience are twice as likely to exceed their profit targets.

Aveus, “Domino” by Linda Ireland


brand:a person’sperceptionof a product, service, or company.


your brand is your reputation,not your logo.


“It takes twenty years to build a reputation and five minutes to

ruin it.”

— Warren Buffett


managing the experience is really about managing the customer’s perception


perception is everything

MRI brain imaging- feelings of reward- beliefs and self-identity

it's our brains that love coke, not our taste buds.


new thinking for direct marketingBuyology; Martin Lindstrom

High–tech brain scanning techniques, such as MRI and EEG, to investigate brain activity. This neuro–imaging hardware enables us to examine and analyze what really drives our behavior, our opinions and our preferences.

Neuro-Marketing

cravingfear

cool collection


“Nearly 90% of our consumer buying behavior is unconscious, and we can’t

actually explain our preferences.”

Martin Lindstrom; Buyology


If our minds believe, our bodies will follow.


How can a direct channel create an experience so powerful that it becomes an end destination?


two simple things …• do you really know who you are

talking to and do you understand their preferred customer experience?

• do you truly understand the emotional reason customers do business with your brand?


never assume


put on your customer goggles …


what is important to you is rarely important to your customer!

what entertains you is rarely what entertains your customer!


research, research, research• online research• online focus groups• customer advocates• one-on-one interviews• listening in• read what they are saying• psychographic overlays• modeling overlays


what do you need to learn?• who are they as an individual• perception of your brand• perception of competitors brands• what they value• pain points and satisfiers• decision-making process

– trigger points– customer-driven activities– company-driven activities– channel preference– key motivators


our two customers …

Linda HeatherOur two customers share the same reality but with two unique points of view. Linda is committed to her job while Heather watches the clock. Both share a meager income and work in a cramped corner of a very public building. All day long, they receive complaints and seldom get thanked. Our products will improve their lives by …

+ 12% + 27%



word clouds


it’s the emotional reason customers do business with you

higher order benefit


time?

esteem?

security?

escape?


Ed Mayer’s Checklist of Human Motivators• financial comfort• save money• save time• avoid effort• comfort• health• popularity• stylish• avoid criticism• avoid pain• satisfy curiosity• avoid trouble

• satisfy appetite• protect reputation• beautiful possessions• to be admired• attract opposite sex• individualism• enjoy life• be clean• be appreciated• protect family• emulate those you admire• be creative


escape and indulge=

? affordable style =

old-fashioned comfort=

reach your creative potential=


“We are BMW, but we don't just build cars. We invent time machines. It was clear to us from the beginning that what people feel is exactly as important as what they drive. Joy is what moves us. Joy is BMW.”

“The Joy of Driving”

pleasure vs. luxury


“Understanding and then effectively marketing your higher order benefit is

one of the seven essentials to becoming a billion dollar company.”

David Thomson; author Blueprint to a Billion


This effort must be strategically managed at all levels within all activities and become a part of your corporate DNA.


customer touch-pointsbrand identity

marketing

customer service

retail – front of housefulfillment

corporate


the instant an order is placed …

a strong finish will increase future purchases by 12%

a brusque finish can decrease loyalty by 8%


Successful brands intimately understand who they are selling to (and customer perceptions) and what they are selling (higher order benefit.)


selling the experience

4


Your brand must demonstrate value!


1,900 affluent Americans were surveyed and found that 48% think they could suffer major financial losses in the near futureHarrison Group, January 2011

Consumers are willing to spend more as long as they feel they’ve received a measurably increase in valueBarons June 2010


value = price + quality

value = lowest price

value = emotional alignment


it’s not always about money

value can be interpreted by how the brain reacts in a non-conscious way.

= nurture


it’s not always about money

People are most satisfied when they spend more money on a premium brand if the essence of its value was delivered.


price testing

price perception can add value to the customer experience

McKinsey & Company; Feb 2010


Add value by organizing information in the same order in which customers make decisions.

You value what they value.


organize by what they value

$“this is important to me”


factValue means something different from one brand to another

Learn what value means to your customer!


must be authentic!

demonstrating value• provides a real solution• lasts longer• more for my money• an amazing experience• the best ingredients• look better• treated better• feel better

• simplifies my life• creates lasting

memories• aligns with my values• a life better lived• less is more• live a longer life• builds my esteem• get noticed


Cyberswimwe love curves


You must prove & protect your “why” over and over again to create the desired perception of value. It is the key driver of loyalty.


the value of customer excitement


satisfied customers = increased profits?

incremental changes to improving customer satisfaction have a limited affect on purchasing behavior …

extreme loyalty occurs when you surprise, thrill and captivate


WOWing customers!

new thinking for direct marketingMcKinsey & Company; January 2011


customer excitement is different than

customer satisfaction


customer excitement creates value• customers willing to pay more• your brand is memorable• word-of-mouth advertising (viral)• increased loyalty


in closing …• align your marketing efforts

– consumer-driven (reactive)– company-driven (proactive)

• be where your customers are– where they go for answers– where they are in the decision/purchase cycle

• closely manage the experience– know your customer, talk in their language and

provide an experience they prefer– articulate and sell your brand’s higher order benefit

• understand, demonstrate and sell value


“The secret is respecting the consumer.You are interrupting their life. All advertising is unwanted, so if you’re going to crash the party, bring some champagne with you.”

Bob Thacker, Sr. VP-marketing & advertising; OfficeMax


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In Pursuit of the New Consumer Creating a Captivating Brand Experience