Archive

Posts Tagged ‘Consumer Marketing’

Emotional Marketing: How to be a killer marketer and have a clean conscience

October 5th, 2018
Share

 

I want to be a good person. Chances are, you do too. So sometimes it bothers me when people stigmatize marketers as spammers and manipulators for money. (This happened to one of my colleagues here at MarketingSherpa, Daniel Burstein, recently.)

But marketing is a neutral term. It is simply the way we speak to customers. How we use marketing is up to us. We can be ethical, or not. We can influence people for good, or bad. We can choose to appeal to the best in us or instead, appeal to the beast in us. Actually, when you think of it, marketers wield a lot of power.

It’s true that there are marketers who choose to sell a product by appealing to our baser instincts of greed, selfishness, pride and lust, but you and I don’t have to, and we can still be successful. We can understand our customers as people and tap into their emotions, become a part of the story they want for their lives, not just pushing the goals we have for our business.

That’s why I was really encouraged when I listened to some major insights gleaned from the databank of The Institute of Practitioners in Advertising UK. IPA has nearly 1,400 case studies showcasing the most successful advertising campaigns across 30 years, and discovered the most successful marketing campaigns were utilizing emotional marketing that brings out the best in people as opposed to those that simply focus on the surface-level, material desires we may have.

What really drives consumer decisions

The IPA is one of the world’s pre-eminent trade bodies for marketing communications agencies. Marie Oldham, Chief Strategy Officer, Havas Media, stated that the evidence suggests deeper, meaningful need states are driving consumer decisions.

The strongest ones [campaigns] were the ones [that] fully understood how the world has changed since 2008 and the whole credit crunch, how it destroyed some of the things that we thought were the dominant things in life, having a bigger car, getting a bigger job, getting on in life … [instead, customers said] ‘time spent with families and friends or reconnecting with our passions in our communities is really important.’ 

The winning entry for 2012 and also for 2016 IPA effectiveness awards was a TV ad from John Lewis. This chain of high-end department stores has repeatedly created extremely successful advertising campaigns.

The company traditionally used product-focused advertising but decided to shift to an emotional strategy, focusing on the consumers’ higher motivations for buying. It’s not about furnishing a house but building a home. It’s about creating a safe, inspiring and stimulating environment for their children; it’s about realizing their dreams for their family, their health and wealth. It’s not about getting rich, but about living a richer life.

The following advertisement was an immediate success going viral throughout television and social media platforms and catapulting their business forward as a leader in their industry in the UK.

 

Read more…

Ask MarketingSherpa: How to get high-paying customers and clients

September 6th, 2018
Share

We frequently receive questions from our email subscribers asking marketing advice. Instead of hiding those answers in a one-to-one email communication, we occasionally publish edited excerpts of some of them here on the MarketingSherpa blog so they can help other readers as well. If you have any questions, let us know.

Dear MarketingSherpa: I am so happy I came across your site. Just flipping through and reading this email alone convinced me I’ll learn a lot from you. I am also grateful for the high-value report, I have downloaded it and will schedule time to really consume it.

My current challenge in my business is how to package my services for high-profile clients and charge them the premium fees for what I am worth. My business suffers from [in]consistent cashflow and high-paying clients.

I appreciate your help in transforming my businesses to target the affluent.

Dear Reader: So glad you found it helpful. Here are a few pieces of advice to help you overcome your challenges. This is a very frustrating challenge I’ve heard expressed by business leaders and companies ranging from ecommerce sites to consulting firms.

To charge premium fees you must have a powerful and unique value proposition.

What you offer must be appealing, however, in your situation where you are able to sell the service but must sell it at a low price, the likely culprit is lack of exclusivity in your value proposition.

To illustrate the point, I worked with James White, Senior Designer, MECLABS Institute (parent research organization of MarketingSherpa), on the below visual. Let’s walk through it.

The letters in the equation-looking grouping in the upper right are from the MECLABS Net Value Force Heuristic, a thought tool based on almost 20 years of research to help you understand which elements to adjust to increase the force of a value proposition. As you can see, exclusivity isn’t the only element of a forceful value proposition.

To the left are products and services with a low level of value differentiation. And to the right are products with a high-level of value differentiation.

Read more…

Marketing 101: What are decoy marketing and price anchoring?

July 26th, 2018
Share

Marketing has a language all its own. This is our latest in a series of posts aimed at helping new marketers learn that language. What term do you find yourself explaining most often to new hires during onboarding? Let us know.

The entire global marketplace is built on transactions. And those transactions occur because a buyer perceives that the value of a product or service justifies the cost (and a major part of that cost is monetary price).

I bring this up because many business and marketing folks think they set the price of their products. Well, they don’t. In a capitalist system, only the market sets the price for your product.

Of course, business and marketing professionals have an essential role in this process …

Marketers present the price, they don’t set the price

This is an important distinction because it’s not only the monetary amount of the price that affects how well it will be perceived and thus how likely it is to be accepted.

It’s how that price is presented.

Which brings us to some common price and value presentation tactics.

Price anchoring

When I learned Economics 101 in high school, one of the first things I learned was that the supply and demand set the price in the market. You can even plot it out with simple curves. When the demand shifts up — boom — the price goes up.

Demand curve shift via Silverstar

It all seems so logical. Just crunch the numbers.

But it’s not. Because supply and demand don’t only set price, price itself can influence demand. And price influences demand because humans don’t run a logical calculation for every transaction they face every day. That is far too complex. We’ve got other things to do.

So we look for shortcuts. We look for signals. And one of them is this: What should the price of this product be?

Here’s where price anchoring comes in. Let’s say you see a box of cereal in a store. It costs $3. Is that a lot or a little? A good price or a bad price?

Wait, there’s some more information. Actually, the regular price of that cereal is $4. And it is on sale for $3. In fact, if you buy this cereal today, you’re saving a whole dollar compared to what it normally costs.

Read more…

Marketing 101: An intro to social listening, why you should become an undercover social media agent (and where to begin)

July 3rd, 2018
Share

Marketing has a language all its own. This is our latest in a series of posts aimed at helping new marketers learn that language. What term do you find yourself explaining most often to new hires during onboarding? Let us know.

In the early 2000s when social media networks like My Space and Facebook first came out, many of us thought they were just a passing fad. We were wrong.

These social networks have been so successful because people are hardwired to be social. And they want to share on social platforms.

Then businesses began to realize that customers were reacting more positively toward this gentler inbound strategy as opposed to the traditional, more aggressive outbound methods. Today, social media marketing is a vital part of most companies.

Yes, social media marketing is here to stay, and statistics show that it reigns as king of the mountain in the business world, being one of the most widely used lead gen tactics.

Most Widely Used Lead Gen Tactics

If you have been trying to avoid learning hashtag lingo, retweet etiquette and analytics, then chances are your business won’t last long among its many competitors. Because THEY most certainly are utilizing social platforms to their advantage. You, on the other hand, are trying to execute your business strategy blindfolded.

Some benefits of social listening

Even if your business doesn’t have the budget for a dedicated social media analyst or the latest and greatest social monitoring tools, you can still go ahead and set up some accounts. Twitter, Facebook and LinkedIn are some of the most popular ones but you should conduct some sleuthing to determine which social media platforms are the best fit for your ideal customer.

Read more…

Selling and Marketing to Senior Citizens When Your Team is Very Different From the Customer

April 26th, 2018
Share

“Nobody reads direct mail letters anymore.” “Everybody has the latest iPhone now.” “I would never read that.”

Let’s unpack these sentences. What they are really saying is:

  • “Nobody (I know) reads direct mail anymore.”
  • “Everybody (I follow on Instagram) has the latest iPhone now.”
  • “I would never read that (but I’m not the ideal customer for the product).”

We humans, we’re a self-centered lot. And we think other people are much more like us than they really are. Psychologists call this false-consensus bias. And it is a significant challenge for the CMO or other sales or marketing leader in charge of a team that is very different from them.

I discussed this topic with Denis Mrkva, general manager of Aetna’s HealthSpire subsidiary, right before I interviewed him about a landing page optimization effort that increased leads 638% for a call center. Denis’ ideal customer is interested in Medicare Advantage. So his fairly young team is selling to senior citizens.

We also discussed hiring and creating the right culture, how senior citizens use digital channels, and how Denis’ team helps his customers navigate the digital environment. You can watch the video below or jump to the full transcript.


Customer-first sales and marketing

In discussing the customer, Denis had some good advice:

“Put them and their needs first — and listen. And try to understand not only their needs for the product they want to buy, but their lifestyle, the important things in their life.”  — Denis Mrkva

Read more…

Email Open Rates: 9-point checklist to get more opens for your email marketing by reducing perceived cost

March 21st, 2018
Share

The Radicati Group predicted that the average business user would receive 97 emails per day in 2018.

97 emails per day.

So why should they open yours?

To help you optimize your open rate, we’re giving you a nine-point checklist for minimizing the perceived cost of the email open. This checklist is from the Email Messaging online certification course taught by MECLABS Institute (MarketingSherpa’s parent research organization).

You can click here to download a PDF of the Email Open Cost Force Checklist (no form fill required, instant download), and I will walk through the checklist step-by-step in this blog post.

EMAIL OPEN COST FORCE

For macro decisions, like a purchase process, you likely spend significant time and resources ensuring that customers understand the value of the product.

However, it’s all too easy to overlook the smaller decisions your customers are taking every day — the micro-yes(s) — like email open.

Every decision you ask prospective customers to make has a perceived value to the customer as well as a perceived cost. The “force” of value or cost is a term designed to discuss the strength of the effect of those elements on the customer’s decision-making process.

Put simply, if the value force is stronger, your customer will take the action you are asking. If the cost force is stronger, your customer will not take the action.

Now, this isn’t the actual value or cost of an action. It is the perceived cost or value before customers take an action. After all, they don’t know what value they will really receive until they act.

Read more…

Business Intelligence: If only more of our customers were like Larry David

February 23rd, 2018
Share

I usually watch “Curb Your Enthusiasm” through the eyes of a fan. But recently I watched the popular HBO show through the eyes of a marketer.

And it struck me — Larry David is an extremely valuable customer. And not just because he has all of that “Seinfeld” money (some $900 million of it, according to Adweek).

Larry is valuable because he actually tells brands what he is thinking. Commonly derided as “complaints” or “rants,” in reality, Larry is offering up valuable customer intelligence.

Complaints are business intelligence

In a recent episode, Larry is staying at a hotel. When asked by the front desk employee if he had any feedback on his stay, he suggests that they shouldn’t tuck the sheets in so tight when making the bed. Who sleeps like that?

But Larry isn’t the normal, quiet customer. He’s a super-suggester. And he goes far beyond replying to a question from an employee asking for feedback. He offers unsolicited advice on topics the hotel doesn’t even think to ask about.

While the hotel brags about cookies made by its pastry chef, Larry isn’t buying it. He says the cookies are from Pepperidge Farm.

And Larry is none too happy about the cookie retrieval system the hotel has set up in its lobby. Larry doesn’t want to use tongs to grab the cookies — he is afraid the cookie will get crushed — and he suggests a wider cookie layout system so guests can pick cookies with their bare hands without touching an adjacent cookie.

Read more…

Screw the Competition: How to avoid dreaded commodification

February 16th, 2018
Share

In high school, I never quite found my niche. I wasn’t a jock or preppie, neither freak nor geek. I just had to be me.

In other words, my focus was on my intrinsic value proposition, not what the competition was doing.

Competitive analyses are valuable, don’t get me wrong. They are necessary to ensure you have a unique value proposition. After all, your product isn’t for sale in a vacuum. I’ve worked with a competitive sales office in the past and you can learn a lot from win-loss reports as well.

But don’t go too far with this business intelligence. My point is this …

Don’t let the competition define you

At some point, you have to say, “screw the competition.”

If your focus is on the competition, you’ll just be another Why Bother Brand.

And if your focus is on the competition, it’s in the wrong place. Your focus should be on the customer. That’s the way you create differentiated value.

Here are three examples of focusing on the customers, not the competition, from otherwise commodified industries:

Example #1: Southwest Airlines

Airlines have become a dreadfully commoditized industry. Just look how they move in lockstep. One airline adds baggage fees, and then every other “me too” airline jumps in behind it.

Not Southwest Airlines. I’m sure it has analyzed the competition. I’m sure it is aware of fee revenue.

But that simply doesn’t work for this brand. So Southwest offers “No change fees. No matter what.” And communicated that value proposition cleverly in a recent TV ad about a coach who believed in his basketball team so much, he already booked tickets to the championship game.

The kicker, of course, is that the team doesn’t make it to the championship game and has to change their flight plans. Cue the tagline — “That’s Transfarency. Low Fares. Nothing to Hide.”

Does this mean you’ll fly Southwest every time? Probably not. I know I prefer non-stop flights. And you might have a favorite frequent flyer program.

But I tell you this — next time you’re charged $200 for canceling a flight, you’re going to remember that Southwest commercial. And if you go through negative experiences with your current airline enough, you may choose not to shop only on price but to favor flights from Southwest Airlines.

Read more…

Marketing 101: What is an A/B split test?

February 2nd, 2018
Share

Marketing has a language all its own. This is our latest in a series of posts aimed at helping new marketers learn that language. What term do you find yourself explaining most often to new hires during onboarding? Let us know.

An A/B split test refers to a test situation in which two randomized groups of users are sent different content at the same time to monitor the performance of specific campaign elements.

A/B split testing is a powerful way to improve marketing and messaging performance because it enables you to make decisions about the best headline, ad copy, landing page design, offer, etc., based on actual customer behavior and not merely a marketer’s opinion.

 

Let’s break down the process of A/B split testing.

Real People Enter the Test

This is part of the power of A/B split testing as compared to other forms of marketing research such as focus groups or surveys. A/B split testing is conducted with real people in a real-world purchase situation making real decisions, as opposed to a survey or focus group where you’re asking people who (hopefully) represent your customers what they might do in a hypothetical situation, or to remember what they have done in a past situation.

Not only can you inadvertently influence people in ways that change their answer (since the research gathering mechanism does not exactly mimic the real-world situation), but people may simply tell you what they think you want to hear.

Or, many times, customers misjudge how they would act in a situation or misremember how they have acted in the past.

That doesn’t mean you shouldn’t use surveys, focus groups and the like. Use this new information to create a hypothesis about your customers. And then run an A/B split test to learn from real customers if your hypothesis is correct.

Read more…

Customer Satisfaction Segmentation: Customer expectations extend beyond the end users of your products

January 26th, 2018
Share

When measuring customer satisfaction after the purchase of your products, it’s all too easy to think of the process in a linear fashion:

  • I produce marketing and advertising that sets an expectation for my product
  • A customer then buys and uses my product
  • I will then ask that customer if they are satisfied with the product

However, while reading Customer Expectations: 7 Types All Exceptional Researchers Must Understand by Scott Smith, Ph.D., as part of my studies in the University of Florida/MECLABS Institute Communicating Value and Web Conversion graduate certificate program, there was a line from Dr. Smith that really stood out to me: “The product purchaser, influencer and user may have each been a different type of individual, each having different expectations.”

Notice he doesn’t just say a different individual, but a different type of individual. The key lesson here is that you should not only segment your marketing but segment your customer satisfaction measurement as well.

And while many B2B marketers will see how this is instantly applicable to them, it likely applies to many B2C and nonprofit marketers as well.

Let’s take a look at each type of customer, with an example for each type of marketer.

                                                                                Photo courtesy Flickr CC Village9991

Read more…