Get Inside Consumers' Minds and Trigger Lifetime Results

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Get Inside Consumers' Minds and Trigger Lifetime Results

  1. 2. Get Inside the Minds of Customers and Get Lifetime Results ! Jeanette McMurtry e4marketing © Jeanette McMurtry, 20 www.e4marketingco.com
  2. 3. Old World: Loyalty and Trust were sure indicators of long-term success. New World: Brand Loyalty and Trust are fleeting and easily destroyed.
  3. 4. <ul><li>From 2007 to 2008: </li></ul><ul><li>52% of “highly loyal” customers reduced or defected </li></ul><ul><li>1/3 defected to a competing brand </li></ul><ul><li>Loyalty churn cost global brands more than 20% in lost revenues in 2008. </li></ul><ul><li>In general, only 40% of brands </li></ul><ul><li>retain 50% or more of customers year to year. </li></ul>
  4. 5. © Jeanette McMurtry, 2009 www.e4marketingco.com 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
  5. 6. In 2008, Cheerios lost 28.2% of high loyalty customers while 37.1% reduced loyalty. - CMO Council Report on US Consumer Loyalty
  6. 7. Consumer Trust © Jeanette McMurtry, 2009 www.e4marketingco.com Broken Trust is the Number One Reason People Switch Brands. No method for regaining trust has been proven. Source: Yankelovich Partners
  7. 8. <ul><li>In God We Trust…But Not In Business </li></ul><ul><li>Globally, brand trust has slipped 50% in recent years </li></ul><ul><li>80% believe business values profits over consumers </li></ul><ul><li>66% believe business will take advantage of public </li></ul><ul><li>63% believe big business can’t be trusted </li></ul><ul><li>48% of US trust business; </li></ul><ul><li>40% trust government (on par with Russia) </li></ul><ul><li>25% of US trust banks, down from 71% in 2008 </li></ul>© Jeanette McMurtry, 2009 www.e4marketingco.com
  8. 9. © Jeanette McMurtry, 2009 www.e4marketingco.com
  9. 10. <ul><li>Tell others 76% </li></ul><ul><li>Stopped buying indefinitely 58 </li></ul><ul><li>Told business concerns 55 </li></ul><ul><li>Bought from competition 49 </li></ul><ul><li>Reduced frequency 49 </li></ul><ul><li>Cancelled store card 18 </li></ul><ul><li>Wrote about on web 13 </li></ul><ul><li>Complained to BBB or CofC 11 </li></ul><ul><li>Did nothing 03 </li></ul>When Trust is Broken © Jeanette McMurtry, 2009 www.e4marketingco.com
  10. 12. Why ESPs work © Jeanette McMurtry, 2009 www.e4marketingco.com <ul><li>Human behavior is based upon two emotional premises : </li></ul><ul><ul><li>The Avoidance of Pain </li></ul></ul><ul><ul><li>The Pursuit of Pleasure </li></ul></ul>
  11. 13. Emotional Relevance © Jeanette McMurtry, 2009 www.e4marketingco.com 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.
  12. 14. © Jeanette McMurtry, 2009 www.e4marketingco.com Conscious Mind Choice
  13. 15. © Jeanette McMurtry, 2009 www.e4marketingco.com
  14. 16. Irrational Behavior © Jeanette McMurtry, 2009 www.e4marketingco.com
  15. 17. Irrational Behavior © Jeanette McMurtry, 2009 www.e4marketingco.com
  16. 18. Irrational Behavior © Jeanette McMurtry, 2009 www.e4marketingco.com Investor Behaviors <ul><li>Investors have fared well below the S&P from 1983 - 2000: </li></ul><ul><ul><li>Gaining 5% when the S&P gained 16% </li></ul></ul><ul><ul><li>Fixed income investors gained 6% while Government Bond index gained 12% </li></ul></ul>
  17. 19. <ul><li>The Happiness Hypothesis : All we need is to: </li></ul><ul><li>Feel connected to others </li></ul><ul><li>Making a difference </li></ul><ul><li>Associate with and experience “good” </li></ul><ul><li>Reciprocity </li></ul><ul><li>Fairness, Justice </li></ul>© Jeanette McMurtry, 2009 www.e4marketingco.com What Makes Us Happy
  18. 20. Reward and Loss Triggers © Jeanette McMurtry, 2009 www.e4marketingco.com
  19. 21. Reality © Jeanette McMurtry, 2009 www.e4marketingco.com
  20. 22. <ul><li>Neuromarketing reveals consumers are: </li></ul><ul><li>Self Centered: “Its all about me.” </li></ul><ul><li>Crave contrast: Notice edgy, irreverent </li></ul><ul><li>Lazy: Don’t make us think to get your point. </li></ul><ul><li>Story fans: Facts fade; stories stick. </li></ul><ul><li>Visual: Colors impact retention and action </li></ul><ul><li>Emotional vs. rational: Emotion trumps reason and common logic </li></ul>© Jeanette McMurtry, 2009 www.e4marketingco.com Christopher Morin, Author, Neuromarketer Neuromarketing
  21. 23. © Jeanette McMurtry, 2009 www.e4marketingco.com
  22. 24. Power of Color © Jeanette McMurtry, 2009 www.e4marketingco.com <ul><li>Psychology and Color: </li></ul><ul><li>Within 90 seconds, consumers make an unconscious judgment of a product or environment </li></ul><ul><li>60-90% of that judgment is </li></ul><ul><li>based upon color </li></ul>
  23. 25. Impact of Color © Jeanette McMurtry, 2009 www.e4marketingco.com
  24. 26. <ul><li>RED </li></ul><ul><li>+ Energy, strength, power, desire </li></ul><ul><li>- Danger, anger, malice </li></ul><ul><li>Enhances metabolism, respiration rate, raises blood pressure </li></ul><ul><li>An accent to encourage quick decisions </li></ul>Meaning of Red © Jeanette McMurtry, 2009 www.e4marketingco.com
  25. 27. <ul><li>BLACK </li></ul><ul><li>+ Power, elegance, formality, prestige </li></ul><ul><li>- Death, mystery, grief </li></ul><ul><li>Creates a sense of authority </li></ul><ul><li>Makes other colors stand out </li></ul><ul><li>Makes you look thinner </li></ul>Meaning of Color © Jeanette McMurtry, 2009 www.e4marketingco.com
  26. 28. Color Combinations © Jeanette McMurtry, 2009 www.e4marketingco.com
  27. 29. © Jeanette McMurtry, 2009 www.e4marketingco.com
  28. 30. © Jeanette McMurtry, 2009 www.e4marketingco.com <ul><li>7.9% of postcard recipients visited PURL: </li></ul><ul><li>79% of PURL visitors entered drawing </li></ul><ul><li>11% of HTML e-mail recipients visited PURL </li></ul><ul><li>Compared to prior year’s sales, the campaign generated an increase of 81% </li></ul><ul><li>Sales Quota: 113% of projection </li></ul>Results
  29. 31. <ul><li>Words must be about customer not the brand. Most emotionally charged words: </li></ul><ul><li>Approved Complete Discount Dependable Guaranteed Immediately Improved Limited Time Powerful Professional Recommended Reliable Unconditional Unsurpassed Urgent Wonderful </li></ul>Power of Words © Jeanette McMurtry, 2009 www.e4marketingco.com
  30. 32. © Jeanette McMurtry, 2009 www.e4marketingco.com     
  31. 33. © Jeanette McMurtry, 2009 www.e4marketingco.com
  32. 34. © Jeanette McMurtry, 2009 www.e4marketingco.com
  33. 35. <ul><li>Amongst Internal Database: </li></ul><ul><li>Achieved an ROI 31 times the costs </li></ul><ul><li>Beat control by 640% </li></ul><ul><li>Overall Results: </li></ul><ul><li>Achieved an ROI of 20 times the costs </li></ul>Love the Results!
  34. 36. <ul><li>Boosting response by 300% </li></ul>© Jeanette McMurtry, 2009 www.e4marketingco.com
  35. 37. <ul><li>If you don’t think fonts matter, </li></ul><ul><li>THINK AGAIN! </li></ul>Power of Fonts © Jeanette McMurtry, 2009 www.e4marketingco.com
  36. 38. <ul><li>FUN </li></ul>Another Key Motivator © Jeanette McMurtry, 2009 www.e4marketingco.com
  37. 39. © Jeanette McMurtry, 2009 www.e4marketingco.com
  38. 40. It’s All About Me © Jeanette McMurtry, 2009 www.e4marketingco.com <ul><li>58% online shoppers more likely to click through to personalized messages </li></ul><ul><li>39% more willing to buy from recognized brand </li></ul><ul><li>Personalized DM pulls significantly higher than general DM (.5 to 9.0) </li></ul><ul><li>Personalized coupon increased redemption by </li></ul><ul><li>150% for one retailer and transaction </li></ul><ul><li>value by 118% </li></ul>
  39. 41. The Power of Direct © Jeanette McMurtry, 2009 www.e4marketingco.com <ul><li>DM to add over $143 trillion to US GDP </li></ul><ul><li>Average ROI per dollar spent: </li></ul><ul><ul><li>$11.63 in 2008 </li></ul></ul><ul><ul><li>$11.74 in 2009 </li></ul></ul><ul><li>81% of HHs read/scan advertising mail </li></ul><ul><li>Growing at a rate of 4% annually while other channels are shutting down </li></ul><ul><li>Represents 53% of total ad spend </li></ul>
  40. 42. © Jeanette McMurtry, 2009 www.e4marketingco.com <ul><li>Upscale Cars </li></ul><ul><li>Purchase frequency is every three years </li></ul><ul><li>Lifetime is 20 years ~ ages 40 to 60 </li></ul><ul><li>Lifetime purchases are around 6 </li></ul><ul><ul><li>One car = $45,000 x 6 $270,000 </li></ul></ul><ul><ul><li>Services = $1000/yr x 20 $ 20,000 </li></ul></ul><ul><ul><li>Customer Worth $290,000 </li></ul></ul><ul><ul><li>Referral Worth (3) $870,000 </li></ul></ul><ul><ul><li>Potential LTV: $1,160,000 </li></ul></ul>The Power of Lifetime Value Lifetime value
  41. 43. Deliver emotional thrills that create memorable experiences. © Jeanette McMurtry, 2009 www.e4marketingco.com Focus on customers, not themselves. Lifetime Brands
  42. 44. © Jeanette McMurtry, 2009 www.e4marketingco.com ESP Brands
  43. 45. © Jeanette McMurtry, 2009 www.e4marketingco.com
  44. 46. <ul><li>MUSEUM OF HE ART </li></ul>© Jeanette McMurtry, 2009 www.e4marketingco.com
  45. 47. © Jeanette McMurtry, 2009 www.e4marketingco.com
  46. 48. <ul><li>(Source: Mobius Management Systems research, 300 respondents) </li></ul>© Jeanette McMurtry, 2009 www.e4marketingco.com Never Underestimate Service 0 % 3 dropped 6 % 4 dropped 3 % 4 dropped 2 % 3 dropped 6 % 4 dropped
  47. 49. THANK YOU! Get a free Report and Join the dialogue on Psychology-Based Marketing LinkedIn Group - PBM [email_address] Twitter at @jeanettee4m © Jeanette McMurtry, 2009 www.e4marketingco.com

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