The 8 global consumer types and how to reach them

Increasing sales whilst tightening budgetary expenditure seems paradoxical, but it can be achieved by focussing marketing efforts on your key audiences.

Traditionally, consumers were categorised by demographics, skewing representation of their habits and lifestyle; however, marketers are now releasing that consumer habits and preferences are the most important factors influencing purchasing behaviour.

Evaluating personal attitudes (i.e. media consumption, buying behaviour, individual aspirations); Euromonitor International identified 8 global consumer types in a 2018 study:

 

Identifying key audience/s, their shopping motivators, major personal influences, habits, and purchase decision drivers when evaluating product innovation, sales and the marketing will enable retailers to maximise sales on a low budget.

Source: Euromonitor International

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Satisfaction is not enough – How to build emotional customer connections

Today companies face ever increasing global competition, whilst striving for continuously growing profits and market share. Most firms focus on achieving high customer satisfaction at every stage of the customer journey. But satisfaction is not enough!

A recent study published by the Harvard Business Review suggests that customers with an emotional connection to a brand are 52% more valuable than highly satisfied ones.

They purchase more and more often, are less price sensitive, pay closer attention to promotional material, follow advice and actively promote the brand.

But how can a brand build emotional connections with their customers?

A brand has to understand their customers’ deep and often unspoken needs and link these motivators to specific purchasing behaviour to evaluate which desires are most profitable.

 

Source: Scott Magids, Alan Zorfas, and Daniel Leemon, “The New Science of Customer Emotions” 

 

Emotional connections may differ between industries, categories and customer segments and may even shift in a segment depending on where a customer is in their customer journey.

Each brand needs to identify a specific set of needs that motivate their key customers and drive sales:

  1. Examine how the top quartile of your customer base or your most successful location differ from others
  2. Search for the key motivators of these connected customers
  3. Quantify the impact of different motivators on purchasing, spending, loyalty, and advocacy
  4. Gain a deeper understanding of connected customers through online surveys
  5. Evaluate motivators separate from your brand (reasons for brand choices do not always match key motivators)
  6. Develop informed strategy and optimise investments to turn highly satisfied customers into emotionally connected ones
  7. Make emotional connection a key objective not just in the marketing department but across the firm
  8. Regularly review customers’ emotional connection levels, as well as the correlation of customers’ emotional connection scores with lifetime value measures, such as annual spending, churn and tenure to adjust the strategy

A retail case study has shown that the implementation of an informed strategy led first year sales of new stores to exceed past averages by 20%, leading to shorter breakeven times and higher returns on capital. Sales grew by 3.5% in comparison with the annual average of just 1%, whilst inventory turnover increased more than 25%. Market share and customer advocacy also grew, contributing to record-high customer lifetime values.

The retailer had identified the need for a sense of belonging, a sense of thrill and a sense of freedom as key motivators. The brand redesigned their stores and implemented a social media campaign were customers could share their favourite outfits to satisfy their customers deepest desires.

 

Sounds daunting?

Actually, some of the world’s leading brands mistakenly believe that being considered a “good brand” by a large percentage of customers will secure long-term success. However, the blue bar in the following graphic demonstrates how many customers these brand failed to build an emotional connection with.

 

Source: Scott Magids, Alan Zorfas, and Daniel Leemon, “The New Science of Customer Emotions” 

 

This emotional connection gap represents an enormous opportunity for all brands to transform satisfied customers into emotionally connected and more valuable ones.

Source: The New Science of Customer Emotions

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The Power of Data Analysis

Global competition and increasingly ambitious business objectives leave no room for instinctive decision making.  Staying ahead in a world of infinite social media tweets and posts and online shops requires a 360-degree view of the elusive customer to guarantee successful and goal oriented omni-channel brand engagement. You have to know your customer and their every wish and desire to service them strategically and uniquely to guarantee sustainable success.

However, a 2017 CMO survey by Black Ink revealed that marketers perceived access to advanced analytics and general data to be the biggest hurdles in marketing; and, continually find themselves forced to rely on legacy solutions such as Excel or CRM systems.

The key to sustainably successful marketing is to align data insights with strategic company objectives.

Ask yourself:

  • What are your core objectives?
  • How does marketing contribute to these objectives?
  • Which data can you utilize to analyse your performance?
  • How will you measure success?
  • How can you design and install a systematic and continuous measurement process?

These questions will help you identify your key objectives and strategically collect and analyse data to measure success and inform strategy.

Be very selective about which data you choose to analyse and how and why. Metrics should only be included if the relationship between the metric and the goal is clear.

Such as:

Goal

Metric

Increase brand awareness number of daily website visitors
Focus budget on most profitable customer segments return on ad spend
Maintain market leader position content trends
Optimise spending on campaigns campaign conversion rates

 

This objectives-focused data analysis approach makes data both accessible as well as actionable by providing an in-depth performance summary, enabling decision making on the spot.

Metrics should be re-evaluated and modified regularly and made accessible to all team members; guaranteeing informed, prompt and appropriate decision making and goal oriented actions.

Source: Marketing Analytics dashboards: The do’s and don’ts

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Market Research – The Key to Successful Marketing

Marketing is a vital part of business operations, as it promotes the business brand, products and, importantly, what they stand for, hopefully in front of the company’s target audience and ultimately grow their customer base and sales.

However, every business differs in its products, services, customers, target audiences, distribution and many more factors. So, the success of every marketing strategy depends on market insights, informed strategy and appropriate budget allocations.

In order to develop an effective marketing strategy and maximise outcomes, businesses have to understand their own industry trends and inform themselves about major players within the industry in order to identify threats and opportunities (to their business), prior to potential disruption of sales, but also jumping on any first-mover competitive advantages there may be.

An in-depth analysis of regulations and risk factors, such as impacts of political and financial fluctuations will help risk mitigation or avoidance of some costly missteps down the track.

The importance of an overview of industry external influences, such as substitute and complementary industries is commonly underestimated. Strategy informed with industry insights allows a business or company to position themselves to add more value to their customers’ lives, and also helps to define and improve the company’s Unique Selling Proposition (USP), i.e. that X-Factor.

A crucial part of market research is the identification and profiling of target customer groups. This will inform the development of new products and/or services, as well as assisting in targeting marketing campaigns, maximising outcome, whilst minimising expenses, i.e. reducing expenditure in areas where it is not needed as urgently.

Every company aiming for sustainable growth and success should trial new products and services and give their customers a voice – they can tell you everything you need to know. This will identify areas of improvement, growth opportunities and minimise of risk exposure. Key Performance Indicators (KPIs) should be implemented and used to measure the success and effectiveness of every marketing strategy and campaign and ensure that organisational objectives are aligned with appropriate budget allocations.

These combined, will then empower a business to effectively allocate their budget accordingly to needed areas, maintain good relationships with suppliers and distributors, and ultimately maximise customer satisfaction and value.

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Social Media Digest: Timing

The desirability of your content and products is always built over time (through social media). Treat it like building any face-to-face relationship, except you won’t actually see them. The quality of your content is also very important. No one wants to read you blabbing on about nothing of relevance.

Timing your posts has equal importance to the quality of the content you’re aggregating or creating. The timing of your posts will generally dictate what type of content you’ll write and for whom. As a general rule of thumb, post during (inspired by Kevin Munro @ Checklist):

06:00 – 08:30
(weekdays)

(The Breakfast Club)

Getting out of bed and switching on the TV is just too hard but you still want to know what’s happening out in the big wide world, so you reach for your phone which lives next to your bed.

Posts should be short, precise, light, positive and feel-good, without the sales pitch.

11:00 – 13:00
(weekdays)

(The Lunch Break)

You don’t have much time to eat that sandwich you just bought but you might want to be kept entertained while you eat it with one hand, so you grab for your phone.

Like breakfast, posts should be short and sharp and perhaps humorous, without the sales pitch.

15:30 – 17:30
(weekdays)

(The Distraction/Commuter Phase)

You glance at the clock and realise it’s almost time to clock off but realise you won’t be any more or less productive if you did any more work. You could be on your way home on the bus and don’t want people glancing back at you when you clearly weren’t looking at them, so you grab your phone.

People want to be distracted (yes, that’s right) from what they’re doing so your posts should be short, sharp and funny, without the sales pitch. Avoid too many videos or long articles. People want to be entertained, quickly.

19:50
(weekdays)

(The Recreational Period)

You might be making dinner (or not) and you’re definitely not watching the TV but it’s still on. You’re on your phone.

This period is where people are most engaged with social media. Your posts can be longer and include videos as people have more time to engage with your content. Make sure your posts here are good quality and, more importantly, relevant to what your business is or stands for, without the sales pitch.

Truth is every business’s social media schedule won’t be the same as the next. This will largely depend on the nature of the industry you work in and the type of people your audience is or already are. Adjusting your timeline to suit your target audience and demographic is ALWAYS okay. You can test out different times and see what works best for your business. Always post your content at the start of each period and not after so it’s there waiting for your audience to read.

Now, you might notice a little bit of repetition here: without the sales pitch. That’s right. Your audience does not want to be, nor are they interested in being, constantly pestered to buy something from you. It’s always a good habit to constantly remind your audience you exist without hard selling to them all the time.

Release your potential with market research. Get to know your customers better and how you can tailor your message to them more effectively. Find out what resonates and, equally important, what doesn’t.

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