Controlling consumer touchpoints by designing from outside-in

January 21, 2013

Designing from outside-in has been on top of my mind these days and I’ve decided to write about it. If you are in Singapore, this is the Lean UX week! Do catch it if you can.

I’ve decided to cover something a little bit more traditional that I feel people kinda forgot. We talk a lot about user experience (UX), be it a device, website, let alone a service. But I found myself lost about what it really is. So I’m figuring out how to be able to, in baby-steps, design experience in a way that is simple yet effective.

Experience has been especially relevant in this era of free information where it is much more difficult to earn loyalty or simply presence in the minds of consumers. As such, marketing strategies has moved from a one-way communication push to a 2-way conversation. Or better still, one that gets viral.

The big question I’m posing here is; how do we, with limited resources, provide the best experience for a consumer in a way that will translate to brand equity? I think that it is as important to slip in nuances of your identity system so people would link that experience you provide uniquely to your brand. What kind of experiences actually matter uniquely to your consumers? That’s how you earn loyalty. It’s when you OWN a good experience in your customers minds. So in simple terms, today’s formula is;

Customer needs + Brand Promise = Brand experience

As a cumulative process, we have to provide many mini good experiences at all stages of the consumer decision process; that is pre-purchase, purchase and post purchase

purchasedecision

 

In the pre-purchase stage, we are looking at making a good initial impression. Looking professional is the basic requirement for one to consider your product, and this applies to all, from low-cost to premium products. What’s more important here is to create an accurate impression. A visual designer would come handy here to know exactly the kind of visual that would best elicit the right impression to readers at a particular touchpoint. Give a misleading visual + copy; A consumer gets the wrong expectation of the product; He ends up disappointed in your store. Such a bad experience would actually backfire on your credibility simply because you’ve just broken what the audience has perceived as your brand promise.

A good pre-purchase experience would land the brand in the consumers’ consideration list, making them move on to the purchase stage. The idea in the purchase stage is to give the consumer a taste of the product. Common examples include free product samples, test-drives for cars and free trials for software. The challenge here, is making sure that the consumer gets a good experience as how you controlled it to be, even if the consumer did not end up buying it. One could come out from a automobile showroom tweeting either of this two;

1 – “Decided to drop the option of car XXX, doesn’t feel quite right.”

2 – “Car XXX a little too sporty for me. Nice to drive but just not my type I guess :) “

Do you see the difference? Not only is the consumer complimenting but also branding car XXX as sporty. That would probably attract sporty people from that particular consumer’s network. The potent for network marketing is probably the reason why companies invest so much in making stores look good and that the staff are well trained to preach the brand promise. Starbucks scores in this area I would say. For sure their coffee is not the best in my list. From their friendly staff that would remember your name to the lucky 100th customer that gets a free drink ( I got it twice already!). These are simply but well-thought experiences that are within the provider’s control.

brand_touchpoint_wheel

Controlling post-purchase touchpoints entails delivering on your brand promise. Exceed the customers’ expectation beyond usage and performance. A lot of companies under leverage post purchase touchpoints. Increase your brand loyalty through say, efficient after sale services, loyalty coupons, newsletters, or anything to delight your customers. Invest in your customers for they are a strong marketing tool. This will get you not only repeat purchases but also customers endorsing and recommending your brand to others. Such brand equity is key to sustainable and profitable growth to any company.

designoutside-in

To sum everything up, I conclude with the notion of designing from outside-in, something I’m still trying to fully grasp - a design process that is user-centered and focused on brand experience. Be in control of the important consumer touchpoints and slip in nuances of your brand promise to increase brand equity.

Source;

Harmonizing your ‘Touchpoints’ by Scott Davis and Tina Longoria

The consumer decision journey – McKinsey Quarterly


The Social Brand Value of the World’s Leading Brands

October 4, 2012

The Social Brand Value of the World's Leading Brands Infographic

In November 2011, social media consultancy Sociagility looked at the social brand value of 50 of the world’s leading brands, creating a revised top 50 ranking according to their social media performance, as measured by the consultancy’s PRINT Index™ KPI. The PRINT system compares brands on five key dimensions or ‘attributes’ of social media performance – popularity, receptiveness, interaction, network reach and trust – across multiple platforms. The Sociagility Top 50 report analyses the social brand value of the world’s leading brands and the competitive influences that determine their social media performance. Here’s a visual representation of just some of the report highlights


How to Retain Your Best Customers

May 1, 2012

Just spotted this blog reference retaining your best customers and thought it provided some good insight.
 
Most CPG marketing budgets allocate spending between  three “buckets”: Trade Marketing, Advertising (TV and  Print), and Consumer Promotion. But Michael Schiff, a loyalty marketing consultant, proposes an alternative viewpoint using just two categories: Acquisition and Retention. Acquisition is spending directly aimed at gaining trial of your brand by consumers who have never tried it before. Retention is spending directly aimed at stemming the inevitable attrition of current buyers.

“The simple act of recasting a budget can be a real eye-opener,” said Schiff, managing director of Partners In Loyalty Marketing (www.PartnersILM.com). “For most brands, it shows that upwards of 85% of their marketing spending is focused on Acquisition.”

Parsing retention spending into dollars focused against Heavy Buyers vs. Mediums and Lights also reveals valuable lessons. For most brands, Heavies (that is, the top 25% of buyers) control 60-75% of sales. In fact, the top 5% or the SuperHeavies can control 20-30% of dollars. In contrast, the bottom 50% of buyers typically account for 6-12% of sales. Many of these Lights are one-time buyers. Most brands spend just a tiny fraction, if at all, of their total budget on Heavy Buyer retention; the vast majority of retention spending is aimed at trying to “up-sell” Mediums and Lights, typically a very inefficient use of limited marketing dollars.

“For most brands, fully half of the franchise (that is, Lights) is MIA for most of the year,” says Schiff. “It makes us feel good to count them in the franchise, but the reality is they’re a distraction from the business of meeting the needs of consumers that count. Spending against retaining or up-selling Lights (and even Mediums) is generally very ineffective. When it does work, you’ve essentially ‘rented a share point’ and in many cases eroded brand equity by excessive dealing. Yet, almost every brand we’ve looked at is chasing new buyers and giving short-shrift to the Heavies that truly are the core of its business.”

While Schiff believes the balance between Retention and Acquisition spending can be narrowed, he doesn’t believe it should ever be 50/50. “Acquisition is an investment spend. It will always cost more to capture a new buyer than retain an existing one. Ignoring one comes at the expense of the other.”

According to Schiff, 10-20% of Heavy buyers of a brand on a year-over-year basis leave the franchise altogether. Another 15-30% “downsize” their buy-rate. Hence, rather than having a “lock” on its Heavy Buyers, most brands have a major retention issue.

“The reason brands give short-shrift to spending against Heavy buyer retention,” he explains, “is because they mistakenly believe their buyers – especially Heavies – are way more loyal than they really are. The truth is you’re in a daily hand-to-hand battle to hold on to the 25% of buyers that drive your business. Except in a few categories, even the SuperHeavies do not translate into SuperLoyals.”

Retention marketing is not easy. The skew of most budgets toward acquisition spending means that brand managers are primarily taught acquisition skills. Most “relationship marketing” programs fail because they try to build a closer relationship with the Heavies using the same messaging, offers and creative that the brand uses to acquire totally new consumers.

Schiff recommends employing some simple and effective strategies for building relationships. It’s key to understand that Heavies understand your brand benefits, point of difference and effectiveness. You have equity with them, so speaking to them in “acquisition mode” is both condescending and a waste of time. Instead, effective relationship communication focuses on allowing Heavy buyers to discover information that validates their pre-existing beliefs about the efficacy and good qualities of the brand.

“When you look at brand marketing budgets through the lens of Acquisition and Retention, what you see is that most brand spending is focused on the lowest yielding activities and consumer segments,” he says. “Brands winning in today’s marketplace are increasingly making Heavy Buyer retention an important and consistent part of their marketing mix, and growing their expertise at creating true relationship-building communications.”

This essay was written by Michael Schiff, managing partner of Partners In Loyalty Marketing, a Chicago-based consultancy that specializes in program strategy, optimization, and evaluation for CPG, Rx, and OTC companies. For more information: www.PartnersILM.com.

Retailers use of Social Media

August 15, 2011

More online consumers are using Facebook on a regular basis to find information about their favorite retail brands, whereas fewer consumers are turning to blogs, forums, and consumer review sites than they were a year ago, according to a new survey from Compete.

Moreover, Twitter is less popular than Facebook for finding retail information, but Twitter feeds are more successful than Facebook pages at influencing purchase decisions among users, the study found.

Among various social channels, more online consumers report using Facebook to find information about brands, according to Compete, while the use of retail forums and review sites is down:

  • 27% of surveyed online consumers visit official retail or consumer product Facebook pages at least once a month, up 3 percentage points (PPs) from the 24% who did so a year earlier.
  • 23% read or post on blogs, forums, consumer review sites, or discussion boards hosted by retailers on a monthly basis, down 6 PPs from the 29% who did so a year earlier.
  • 10% read Twitter messages from brands, down 1 PP from the 11% who did so a year earlier.

Below, additional findings from The Spring 2011 Online Shopper Intelligence report, based on a survey of 3,269 online buyers in the US.

Among those who visit retailers’ Facebook pages on a monthly basis, 56% say they do so to keep up to date on sales and promotions, while 29.0% do so to learn about a specific retailer.

Fewer consumers interact with Facebook pages for social reasons such to connect with others who like a specific brand (13.6%).

Influence of Facebook Pages

Facebook pages are influencing purchasing decisions: More than one in five online consumers say Facebook pages have been very influential (16.7%) or extremely influential (6.2%) in making a purchase decision.

Only 22.5% of online consumers say Facebook pages have no influence at all on their online purchase decisions.

Moreover, one-third (33%) of online consumers “like” six or more retailers or consumer products brands on Facebook

Thanks to www.marketingprofs.com


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