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  • 1. Get Inside the Minds of Customers and Get Lifetime Results! Jeanette McMurtry e4marketing www.e4marketingco.com © Jeanette McMurtry, 20Old World:Loyalty and Trust were sure indicators of long‐ term success.New World:Brand Loyalty and Trust are fleeting and easily destroyed.   1
  • 2. 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. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. 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© Jeanette McMurtry, 2009 www.e4marketin gco com aa In 2008, Cheerios lost 28.2% of high loyalty  customers while 37.1% reduced loyalty. ‐ CMO Council Report on US Consumer Loyalty 2
  • 3. Consumer TrustBroken Trustis the Number One ReasonPeople Switch Brands.No method for regainingtrust has been proven.Source: Yankelovich Partners © Jeanette McMurtry, 2009 www.e4marketin gco com 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.e4marketin gco com © Jeanette McMurtry, 2009 www.e4marketingc 3
  • 4. When Trust is Broken • 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© Jeanette McMurtry, 2009 www.e4marketin gco com Why ESPs work Human behavior is based upon two emotional premises: • The Avoidance of Pain • The Pursuit of Pleasure© Jeanette McMurtry, 2009 www.e4marketin gco com 4
  • 5. 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. © Jeanette McMurtry, 2009 www.e4marketin gco com Conscious Mind Choice © Jeanette McMurtry, 2009 www.e4marketingc © Jeanette McMurtry, 2009 www.e4marketin gco com 5
  • 6. Irrational Behavior QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. © Jeanette McMurtry, 2009 www.e4marketin gco com Irrational  Behavior QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. © Jeanette McMurtry, 2009 www.e4marketin gco comInvestor Behaviors Irrational  Behavior 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% © Jeanette McMurtry, 2009 www.e4marketin gco com 6
  • 7. What Makes Us Happy The Happiness Hypothesis: All we need is to:  • Feel connected to others • Making a difference • Associate with and  experience “good” • Reciprocity • Fairness, Justice© Jeanette McMurtry, 2009 www.e4marketin gco com Reward and Loss Triggers© Jeanette McMurtry, 2009 www.e4marketingc Reality© Jeanette McMurtry, 2009 www.e4marketingc 7
  • 8. Neuromarketing 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© Jeanette McMurtry, 2009 www.e4marketin gco com© Jeanette McMurtry, 2009 www.e4marketin gco com Power of ColorPsychology and Color:• Within 90 seconds, consumers  make an unconscious judgment  of a product or environment• 60‐90% of that judgment is  based upon color© Jeanette McMurtry, 2009 www.e4marketin gco com 8
  • 9. Impact of Color© Jeanette McMurtry, 2009 www.e4marketin gco com Meaning of Red RED + Energy, strength, power, desire ‐ Danger, anger, malice • Enhances metabolism, respiration rate, raises blood  pressure • An accent to encourage quick decisions© Jeanette McMurtry, 2009 www.e4marketin gco com Meaning of Color BLACK + Power, elegance, formality, prestige ‐ Death, mystery, grief  • Creates a sense of authority • Makes other colors stand out • Makes you look thinner© Jeanette McMurtry, 2009 www.e4marketin gco com 9
  • 10. Color Combinations© Jeanette McMurtry, 2009 www.e4marketin gco com© Jeanette McMurtry, 2009 www.e4marketin gco com Results • 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 of 81% • Sales Quota: 113% of projection© Jeanette McMurtry, 2009 www.e4marketin gco com 10
  • 11. Power of Words 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 Unconditional Unsurpassed Urgent Wonderful© Jeanette McMurtry, 2009 www.e4marketin gco com© Jeanette McMurtry, 2009 www.e4marketingc© Jeanette McMurtry, 2009 www.e4marketin gco com 11
  • 12. © Jeanette McMurtry, 2009 www.e4marketin gco com Love the Results!Amongst Internal Database:  • Achieved an ROI 31 times the costs • Beat control by 640%Overall Results:• Achieved an ROI of 20 times the costs Boosting response by 300%© Jeanette McMurtry, 2009 www.e4marketin gco com 12
  • 13. Power of Fonts If you don’t think fonts matter, THINK AGAIN!© Jeanette McMurtry, 2009 www.e4marketin gco com Another Key Motivator FUN© Jeanette McMurtry, 2009 www.e4marketin gco com© Jeanette McMurtry, 2009 www.e4marketin gco com 13
  • 14. 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 higher than general DM (.5 to 9.0)• Personalized coupon increased redemption by 150% for one retailer and transaction value by 118% © Jeanette McMurtry, 2009 www.e4marketin gco com 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 © Jeanette McMurtry, 2009 www.e4marketin gco comLifetime value The Power of Lifetime Value Upscale Cars Purchase frequency is every three years Lifetime is 20 years ~ ages 40 to 60 Lifetime 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 © Jeanette McMurtry, 2009 www.e4marketin gco com 14
  • 15. Lifetime Brands Deliver emotional thrills that create  memorable experiences.   Focus on customers, not themselves. © Jeanette McMurtry, 2009 www.e4marketin gco comESP Brands © Jeanette McMurtry, 2009 www.e4marketin gco com © Jeanette McMurtry, 2009 www.e4marketingc 15
  • 16. MUSEUM OF HEART© Jeanette McMurtry, 2009 www.e4marketin gco com© Jeanette McMurtry, 2009 www.e4marketingc Never Underestimate Service4 6% 3 2% 4 6% dropped 43 % dropped 30 % dropped dropped dropped© Jeanette McMurtry, 2009 www.e4marketin (Source: Mobius Management Systems research, 300 respondents) gco com 16
  • 17. THANK YOU! Get a free Report and Join the dialogue  on  Psychology‐Based Marketing  LinkedIn Group ‐ PBM jeanette@e4marketingco.com Twitter at @jeanettee4m www.e4marketingco.com© Jeanette McMurtry, 2009 17