Understanding ConsumerPurchasing PatternsPresented by:Tim FungTuesday, 26 Feb 2013
Why should we be obsessed with de-codingConsumer purchase behaviour?
Increasing lifetime value… Need Information Evaluation of Purchase Post purchaserecognition search alternatives decisions behaviour To improve long term CLV: ! Customer lifetime ! Purchase frequency ! Basket value
Smooth-ening funnels… Need Information Evaluation of Purchase Post purchaserecognition search alternatives decisions behaviour Smooth your sales funnel: ! Start conversations ! Simplest purchase process ! Enable repeat purchase
Driving down marketing spend… Need Information Evaluation of Purchase Post purchaserecognition search alternatives decisions behaviour To drive down CPA: ! Find real customers, not tyre kickers ! Increase referrals ! Identify customer “ﬁre hoses”
Online data sources: on-page heat mapping, mouse and click tracking behaviour triggered automated marketing newsletter analytics website and app performance acquisition funnels, referrals A-B testing on key-page tweaks Quick roll out and testing of landing pages
Real-world data sources: Customer accounts Membership and loyalty Mystery shopping Check-ins and reviews Real world analytics – ﬁeld research
More data, the better:Start a conversation:Incentivise friendship, either by rewarding users or addingvalue using data. So cold blooded!For example, Facebook Connect can pick up:! Location! Likes (interests)! Connections….which will help you serve the best possible experience(curated product lists, suggested services etc)
How to inﬂuence purchase behaviour?Test, track, then ask why?
Marketing > Tech Testing Cycle Stimuli Buyer’s black box Buyer response Reason HYPOTHESISE TEST TRACK ASK WHY?
Testing example: Airtasker conversion funnel… (Runners are our customers)
Result of this “tiny” change:! 30x increase in customer click-throughs! Instant 34% increase in task assignment! Literally hundreds more people completing real-world tasks. Tiny Change
…and then back to testing cycle… Stimuli Buyer’s black box Buyer response Reason ASK WHY? HYPOTHESISE TEST TRACK In our case, Softening calls to Use VWO to A-B test Google Analytics and customers wantaction will lead more two diﬀerent copy conversion metrics to feel in charge of people through the types on main call to showed signiﬁcant the quotation sales funnel. action buttons. uplift with new copy. process. NEXT HYPOTHESIS: Customers want to sell themselves as well as bidding on existing available work. Meet Airtasker Stores.
Remember that black box?Don’t waste timehypothesising… JUST DO IT!
Brands that understand purchase patterns: Pretty Good… Up-sell Email
Brands that understand purchase patterns: Very good… Very good…Brands that understand purchase patterns: Amazon: Cross-Sell Funnel Cross-Sell Funnel
Brands that understand purchase patterns: Scary.Customised Sales Funnel Best Practice Clearly Contacts – understand oﬄine lifecycle Amazon – overcome interuptions
Then, close your purchase loops:Understand customer “non-purchasing patterns” too…
Acquiring data in thereal-world…Field Research and Marketing:! Mystery shopping! Vox-pop content capturing! In-ﬁeld consumer Polling! Observational research! Sampling feedback loop
Some food for thought…Prism Sky Labs is coming soon to the real world near you!