Notes Version: Get Inside Consumers' Minds and Trigger Lifetime Results

Get Inside the Minds of Customers
and Get Lifetime Results!
Jeanette McMurtry
e4marketing

www.e4marketingco.com
© Jeanette McMurtry, 20

Old World:
Loyalty and Trust were sure indicators of long‐
term success.

New World:
Brand Loyalty and Trust are
fleeting and easily destroyed.

1

From 2007 to 2008:
• 52% of “highly loyal” customers reduced or defected
• 1/3 defected to a competing brand
• Loyalty churn cost global brands more than 20% in
lost revenues in 2008.
• In general, only 40% of brands
retain 50% or more of customers
year to year.

QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.

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

© Jeanette McMurtry, 2009 www.e4marketin
gco com

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In 2008, Cheerios lost 28.2% of high loyalty
customers while 37.1% reduced loyalty.
‐ CMO Council Report on US Consumer Loyalty

2

Consumer Trust

Broken Trust
is the Number One Reason
People Switch Brands.
No method for regaining
trust has been proven.

Source: Yankelovich Partners
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In God We Trust…But Not In Business
• Globally, brand trust has slipped 50% in recent years
• 80% believe business values profits over consumers
• 66% believe business will take advantage of public
• 63% believe big business can’t be trusted
• 48% of US trust business;
• 40% trust government (on par with Russia)
• 25% of US trust banks, down from 71% in 2008

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© Jeanette McMurtry, 2009 www.e4marketingc

3

When Trust is Broken
• Tell others 76%
• Stopped buying indefinitely 58
• Told business concerns 55
• Bought from competition 49
• Reduced frequency 49
• Cancelled store card 18
• Wrote about on web 13
• Complained to BBB or CofC 11
• Did nothing 03

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Why ESPs work

Human behavior is based upon
two emotional premises:

• The Avoidance of Pain
• The Pursuit of Pleasure

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4

Emotional Relevance

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.

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Conscious Mind Choice


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5

Irrational Behavior

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Irrational Behavior

QuickTime™ and a

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Investor Behaviors
Irrational Behavior
Investors have fared well below the
S&P from 1983 - 2000:
• Gaining 5% when the S&P
gained 16%
• Fixed income investors gained
6% while Government Bond
index gained 12%

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6

What Makes Us Happy
The Happiness Hypothesis: All we need is to:
• Feel connected to others
• Making a difference
• Associate with and
experience “good”
• Reciprocity
• Fairness, Justice

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Reward and Loss Triggers


Reality


7

Neuromarketing
Neuromarketing reveals consumers are:
• Self Centered: “Its all about me.”
• Crave contrast: Notice edgy, irreverent
• Lazy: Don’t make us think to get your point.
• Story fans: Facts fade; stories stick.
• Visual: Colors impact retention and action
• Emotional vs. rational: Emotion trumps reason
and common logic
Christopher Morin, Author, Neuromarketer
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Power of Color

Psychology and Color:
• Within 90 seconds, consumers
make an unconscious judgment
of a product or environment
• 60‐90% of that judgment is
based upon color

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8

Impact of Color

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Meaning of Red

RED
+ Energy, strength, power, desire
‐ Danger, anger, malice
• Enhances metabolism, respiration rate, raises blood
pressure
• An accent to encourage quick decisions

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Meaning of Color
BLACK
+ Power, elegance, formality, prestige
‐ Death, mystery, grief
• Creates a sense of authority
• Makes other colors stand out
• Makes you look thinner

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9

Color Combinations

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Results
• 7.9% of postcard recipients visited
PURL:

• 79% of PURL visitors entered
drawing

• 11% of HTML e-mail recipients visited
PURL

• Compared to prior year’s sales, the
campaign generated an increase of
81%

• Sales Quota: 113% of projection

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10

Power of Words
Words must be about customer not the brand. Most emotionally
charged words:

Approved Complete Discount Dependable Guaranteed
Immediately Improved Limited Time Powerful
Professional Recommended Reliable Unconditional
Unsurpassed Urgent Wonderful

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11

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Love the Results!

Amongst Internal Database:
• Achieved an ROI 31 times the costs
• Beat control by 640%

Overall Results:
• Achieved an ROI of 20 times the costs

Boosting response by 300%

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12

Power of Fonts

If you don’t think fonts matter,

THINK AGAIN!

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Another Key Motivator

FUN

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13

It’s All About Me
• 58% online shoppers more likely to click through to
personalized messages
• 39% more willing to buy from recognized brand
• Personalized DM pulls significantly higher
than general DM (.5 to 9.0)
• Personalized coupon increased redemption by
150% for one retailer and transaction
value by 118%

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The Power of Direct

• DM to add over $143 trillion to US GDP
• Average ROI per dollar spent:
– $11.63 in 2008
– $11.74 in 2009
• 81% of HHs read/scan advertising mail
• Growing at a rate of 4% annually while other
channels are shutting down
• Represents 53% of total ad spend

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Lifetime value
The Power of Lifetime Value
Upscale Cars
Purchase frequency is every three years
Lifetime is 20 years ~ ages 40 to 60
Lifetime purchases are around 6
• One car = $45,000 x 6 $270,000
• Services = $1000/yr x 20 $ 20,000
• Customer Worth $290,000
• Referral Worth (3) $870,000
• Potential LTV: $1,160,000

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14

Lifetime Brands
Deliver emotional thrills that create
memorable experiences.

Focus on customers, not themselves.

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ESP Brands

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15

MUSEUM OF HEART

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Never Underestimate Service

4 6% 3 2% 4 6%
dropped 43 % dropped 30 % dropped
dropped dropped

© Jeanette McMurtry, 2009 www.e4marketin (Source: Mobius Management Systems research, 300 respondents)

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16

THANK YOU!

Get a free Report and Join the dialogue
on
Psychology‐Based Marketing
LinkedIn Group ‐ PBM

jeanette@e4marketingco.com

Twitter at @jeanettee4m
www.e4marketingco.com

© Jeanette McMurtry, 2009

17

Notes Version: Get Inside Consumers' Minds and Trigger Lifetime Results

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