Buying Behaviour Explained How to Keep Your Customers Coming Back for More Presented by Martin Varley President & CEO of Customer Focus With Original Research from Impact 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 it Because you’re worth it It’s the real thing Be 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 s received at professional accounts are not essential. Source: Mimecast

What to send welcome message, coupon for next purchase, newsletter, promotional material Mail: catalog / brochure Web: re- marketing

When to send Welcome message: Straight away! Triggered messages get 119% higher click-through rates than “business as usual” messages. Source: Epsilon

When to send The average person first checks their 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 s improve click-through rates by 14%, and conversion rates by 10% Source: Aberdeen

Stay relevant The top reasons for U.S. users to unsubscribe from a business or non-profit subscription are too many s (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

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