Archive

Posts Tagged ‘customer behavior’

Ecommerce: Northwestern University study on how online reviews affect sales

August 15th, 2017

Every week (as the name suggests), I write the Marketing Sherpa Chart of the Week email newsletter. And so, every week, I come across interesting research and data, along with sources that add analysis and color to that research.

Usually, that analysis is confined to the MarketingSherpa Chart article. However, this week, my cup especially runneth over with good ideas and analysis that I thought you might find helpful on your ecommerce sites, especially as you set the groundwork for your holiday marketing initiatives.

When I interviewed Tom Collinger, the Executive Director of the Spiegel Research Center at Northwestern University, and Edward Malthouse, professor at Medill Northwestern and the Research Director of the Spiegel Center, we went well over our allotted time.

You can see their data and some of their analysis in this week’s Chart of the Week article — Ecommerce Chart: Star ratings’ impact on purchase probability. But if you’d like a deeper understanding of their research into how online reviews affect sales, I’ve included a lightly edited transcript of our conversation below. To make the transcript easily scannable for you, I call out key points with bolded subheads

Bringing evidence to the answer of how newer forms of consumer engagement with brands drive financial impact

Daniel Burstein: Why don’t we jump in and you give me a high level of the type of work you’re doing here? I believe, Tom, we may have had you as a source in the past at one point.

Read more…

Email Messaging: Start empathizing with your potential customers

September 17th, 2013

One of the biggest hurdles you face as marketer lies in the mind of your customers.

What do they think when they read your marketing messages? How does your copy make them feel? What impresses them? Are they sold on what you’re saying? Do they understand what you’re saying? Are you coming on too strong? Are they intrigued? Are they frustrated?

You need to uncover the attitude of your consumers and tweak your marketing efforts to appeal to that way of thinking.

 

Understanding a customer’s mindset

In the MECLABS Email Messaging Course, Flint McGlaughlin, Managing Director, MECLABS, dissects the attitude of prospective customers towards marketers. Below is a list of the “Prospect’s Protest,” which illustrates the mindset of your customers: what they want from you and, more importantly, what they don’t.

Brace yourself. These may be harsher than you’d expect:

  • I am not a target. I am a person. Don’t market to me – communicate with me.
  • Don’t wear out my name, and don’t call me “friend” until we know each other.
  • When you say “sell,” I hear “hype.” Clarity trumps persuasion. Don’t sell – say.
  • I don’t buy from companies, I buy from people. Here’s a clue: I dislike companies for the same reason I dislike people.
  • Stop bragging. It’s disgusting.
  • Why is your marketing voice different from your real voice? The people I trust don’t patronize me.
  • In all cases, where the quality of the information is debatable, I will always resort to the quality of the source. My trust is not for sale. You need to earn it.
  • Dazzle me gradually. Tell me what you can’t do, and I might believe you when you tell me what you can do.
  • In case you still don’t get it, I don’t trust you. Your copy is arrogant, your motives seem selfish, and your claims sound inflated. If you want to change how I buy, first change how you market.

No sugarcoating there.

“Sorry if this is strong medicine, but you’ve got to understand this is the attitude that you’ve got to overcome with the way you write your copy,” Flint explained.

 

Adjusting your own marketing attitude

Now that you have a better glimpse into the attitude of your customers, you can adjust your own attitude and approach as a marketer to better suit your consumers and overcome their attitude.

In the course, Flint outlines the “MarketingExperiments Creed,” which is a response to the “Prospect’s Protest.” It’s a way of thinking on the marketer’s side. It’s an attitude syncing to the consumer’s mindset.

 

Article 1: We believe that people buy from people, people don’t buy from companies, from stores or from websites. People buy from people. Marketing is not about programs. It is about relationships.

Article 2: We believe that brand is just reputation. Marketing is just conversation, and buying is an act of trust. Trust is earned with two elements:

  1. Integrity
  2. Effectiveness

Both demand that you put the interest of the customer first.

Article 3: We believe that testing trumps speculation and that clarity trumps persuasion. Marketers need to base their decisions on honest data, and customers need to base their decisions on honest claims.

 

Notice the consistencies between the Prospect’s Protest and the MarketingExperiments Creed. Clarity trumps persuasion. People buy from people. Trust.

“Though you may be a marketer every single day, you’re treated as a consumer, too,” Flint explained. “Because all of us are not just marketers, we’re consumers and we’re tired of it, also.”

As a marketer, you need to empathize with your consumers. After all, you can.

  Read more…

What is Data? A discussion about getting value from your marketing analytics

July 12th, 2013

What is marketing data really? When used right, it’s not just numbers that tell you what happened.

That is what I like to call the “newsman approach” to marketing analytics – information that simply sums up previous customer behavior.

You don’t want to be the newsman. You don’t want to be Walter Cronkite, Tom Brokaw or Brian Williams. You, dear marketer, must look to the likes of Al Roker and Willard Scott. After all, it is the intrepid weatherman that discusses not only what already happened, but what is going to happen.

I discussed with Scott Hutcheson, Content Director, Paramore, how to effectively use marketing data to look beyond a simple gut reaction to numbers to find out what they can tell you about future customer behavior in this, the most recent episode of MarketingSherpa Marketing Research in Action …

 

In this episode, Scott and I discussed research from the MarketingSherpa 2013 Marketing Analytics Benchmark Report, which is sponsored by Paramore…

00:42 – Up is good, down is bad? Not so simple. Don’t settle for gut reactions to your marketing analytics. Scott and I discussed non-analytical decision-making strategies. 

 

4:44 – What can you learn from page views? Scott and I discussed content marketing metrics tracking.

  Read more…

Email Marketing: 5 questions to find out if you’re using CRM as a glorified autoresponder

March 15th, 2013

One of my favorite proverbs is “Change yourself and you change your fortunes.”

Making changes that increase the bottom line starts with marketers making a commitment to change how they engage customers effectively with their tools at hand.

Tools like customer relationship management (CRM) and marketing automation systems that track user activities allow marketers to leverage behavior insights gained from captured analytics to engage both return customers and potential prospects.

But, according to Jermaine Griggs, Founder, Hear and Play Music and AutomationClinic.com, some marketers fail to put these tools to good use.

“Instead of better understanding ‘who’ or ‘what’ and letting the captured data talk to us, many of us are using CRM to send static time-based follow-ups,” Jermaine said.

Jermaine was a presenter at MarketingSherpa Email Summit 2013, and one of the key takeaways from his session at Summit was a hypothetical litmus test for marketers to self-assess their CRM and marketing automation usage.

Today’s MarketingSherpa blog post will present Jermaine’s litmus test as five questions every marketer should ask themselves about how they use CRMs and marketing automation to drive email campaigns. Our goal is to share peer insights you can use to aid your email marketing efforts.

But first, let’s take a look at a case study that provides a little backstory on how Jermaine discovered he was not using his CRM and marketing automation platform to their full potential.

Jermaine explained Hear and Play underwent a transformation when it started using its CRM and marketing automation platform to focus on personalizing its automated email marketing campaigns. The change resulted in a 416% increase in lifetime customer value and product purchases per customer from an average of 1.5 to 12.46.

“Our transformation came when we stopped using our CRM merely as a glorified autoresponder and started to really harness the power of behavioral and personalized marketing,” Jermaine explained.

 

Question #1: Do I have email campaign steps users can’t influence?

Jermaine suggested marketers assess their email campaigns using a ratio he calls an S2D score, or static vs. dynamic ratio.

In Jermaine’s S2D ratio:

  • Dynamic sends are influenced directly by customer action
  • Static sends are steps in a process that are not influenced by any customer action

Jermaine accredited increased use of dynamic sends over static sends as a driver of success in Hear and Play’s email marketing strategy reformation and suggests marketers take the time look at their data and acknowledge past customer behavior.

“It will go a long way, and there is an exponential impact on how customers respond,” Jermaine said.

Read more…