UNIT 1 TRIMESTER 5

Some Definitions of Consumer Behavior

Consumer behavior is the study of when, why, how, and where people do or do not buy products or services It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups.

Some Definitions of Consumer Behavior

It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Some Definitions of Consumer Behavior

The study of how people behave when obtaining, using, and disposing of products and services. The behavior of individuals when buying goods and services for their own use or consumption. The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
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Why is it important to study consumer behavior?

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as: The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers). The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media). Through the application of sociology, psychology and demographics, marketers can begin to understand why consumers form attitudes and make decisions to purchase.
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Why is it important to study consumer behavior?

The behavior of consumers while shopping or making other marketing decisions. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. For marketing, these influences are studied in the context of demographics, which includes ethnicity, age, marital status, size of family, income, education and employment.

Why is it important to study consumer behavior?

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. Consumer-behavior studies inform marketers, advertisers and public agencies how product and service selection is influenced by personality, perception, values and beliefs.

Why is it important to study consumer behavior?

Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well as the study of how they are purchased.
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Why is it important to study consumer behavior?

Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or letting garbage pileup ) this is also an area of interest.
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Why is it important to study consumer behavior?

Consumer behavior involves services and ideas as well as tangible products. The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.
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U.S. Consumers Had Short-Term Response to First BSE (bovine spongiform encephalopathy also known as mad cow disease) Announcements

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Why is it important to study consumer behavior?

Food purchase data reveal that the response of U.S. consumers to the 2003 discovery of BSE in two North American cows was limited and dissipated within 2 weeks. Purchase data are a more reliable source of information on consumers risk perceptions than consumer surveys. Future food safety announcements may not have the same effect on consumers food purchase decisions because consumers risk perceptions are likely to change.
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Why is it important to study consumer behavior?

In May 2003, several U.S. Government agencies reported that BSE had been found in Alberta, Canada. The following December, agencies reported that a cow in Washington State had BSE. Both of these announcements had the potential to influence consumers food choices and retail food markets in the United States.
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Why is it important to study consumer behavior?

To measure consumer reaction to those announcements, researchers compared householdlevel retail food purchases of three types of beef products before and after each announcement to see if consumers reduced their purchases of those products, and, if so, for how long.

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Why is it important to study consumer behavior?

Consumers reactions to food safety news will be influenced by how much it changes their risk perceptions. Consumers beliefs about food safety may change over time, and subsequent announcements could be made under very different conditions.

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Why is it important to study consumer behavior?

Many consumer surveys were conducted after the BSE announcements. Each survey asked consumers whether they reduced beef consumption following the announcements. The main drawbacks to such surveys are that consumers memories of previous food purchases may be error prone and consumers may sometimes feel compelled to answer in the affirmative. Using records of food purchases can be a more reliable means of assessing consumer response.
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Why is it important to study consumer behavior?

Food purchases vary throughout the year and evolve over time. Americans habitually consume more of particular foods seasonally and around holidays. Some foods, over time, have fallen out of favor while other foods have taken their places. Change attributed to BSE announcements might be confused with seasonal purchase patterns or long run trends if underlying patterns created by habit and tradition, as well as evolving preferences, are not taken into account.
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Why is it important to study consumer behavior?

Researchers examined three marketsfresh beef, frozen beef, and frankfurters. Frankfurters are more processed than frozen beef (primarily steaks and hamburger patties). More processed food satisfies demands different from those for fresh or frozen beef, so a BSE announcement might have different impacts on consumers frankfurter purchases than on other meats.
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Consumer Buying Behavior What Influences Them To Buy

The most challenging concept in marketing is understanding why buyers do what they do (or dont do). Such knowledge is critical for marketers since having a strong understanding of buyer behavior will help shed light on what is important to the customer and also suggest the important influences on customer decisionmaking. Using this information, marketers can create marketing programs that they believe will be of interest to customers.
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Consumer Buying Behavior What Influences Them To Buy

Factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology and sociology. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made.

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Consumer Buying Behavior What Influences Them To Buy

Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food, shelter) while others are not required for basic survival and vary depending on the person. Needs that are not a necessity are wants or desires

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Consumer Buying Behavior What Influences Them To Buy

The consumer could be the actual buyer, the person spending the money. But it is also possible that the one who does the buying is not necessarily the user of what is bought and that others may be involved in the buying decision in addition to the actual buyer. The purchasing process in the consumer market is not as complex as the business market. But having multiple people involved in a purchase decision is not unusual.
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Consumer Buying Behavior What Influences Them To Buy

For example, when planning a family vacation the mother may make the hotel reservations but others in the family may have input on the hotel choice. Similarly, a father may purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf. So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases.
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What Influences Purchasing?

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Internal Influences (Perceptual Filter)

Perceptual Filter: Perception is how we see ourselves and the world we live in. A consumers mental makeup results from information that has been consciously or subconsciously filtered as he experiences it, a process referred to as a perceptual filter.

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Internal Influences (Perceptual Filter)

Perception has several steps. Exposure sensing a stimuli (e.g. seeing an ad) Attention an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad) Awareness assigning meaning to a stimuli (e.g., humorous ad for particular product) Retention adding the meaning to ones internal makeup (i.e., product has fun ads)
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Internal Influences (Perceptual Filter)

How these steps are eventually carried out depends on a persons approach to learning. By learning means how someone changes what they know, which in turn may affect how they act. E.g., A person may be able to focus very strongly on a certain advertisement and be able to retain the information after being exposed to it only once. While another person may need to be exposed to the same advertisement many times before he even recognizes what it is.
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Internal Influences (Perceptual Filter)

Consumers are also more likely to retain information if a person has a strong interest in the stimuli. If a person is in need of a new car he is likely to pay attention to a new advertisement for a car while someone who does not need a car may need to see the advertisement many times before they recognize the brand of automobile.
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Internal Influences (Perceptual Filter)

Marketers spend large sums of money in an attempt to get customers to have a positive impression of their products. Exposing consumers to a product can be very challenging considering the number of competing product messages (ads) that are also trying to accomplish the same objective. So marketers must be creative and use various means to deliver their message to capture the attention of the consumer.
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Internal Influences (Perceptual Filter)

Marketers must continually monitor and respond if their message becomes distorted in ways that will negatively shape its meaning. This can happen due to competitive activity (e.g., comparison advertisements). Finally, getting the consumer to give positive meaning to the message they have retained requires the marketer to make sure that consumers accurately interpret the facts about the product.
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Internal Influences (Knowledge)

Knowledge is the sum of all information known by a person. What exists as knowledge to an individual depends on how an individuals perceptual filter makes sense of the information he is exposed to. Marketers may conduct research that will gauge consumers level of knowledge regarding their product. It is likely that other factors influencing consumer behavior are largely shaped by what is known about a product. Thus, developing methods (e.g., incentives) to encourage consumers to accept more information (or correct information) may affect other influencing factors.
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Internal Influences (Attitude)

Attitude refers to what a person feels or believes about something. Attitude may be reflected in how an individual acts based on his or her beliefs. Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative attitude toward a particular issue it will take considerable effort to change what they believe to be true.
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Internal Influences (Attitude)

Marketers facing consumers who have a negative attitude toward their product must work to identify the key issues shaping a consumers attitude then adjust marketing decisions (e.g., advertising) in an effort to change the attitude. For companies competing against strong rivals to whom loyal consumers exhibit a positive attitude, marketers must find out why consumers feel positive toward the competitor and then try to meet or beat the competitor on these issues. Alternatively, a company can try to locate customers who feel negatively toward the competitor and then increase awareness among this group.
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Internal Influences (Personality)

The behavior one projects in a situation is similar to the behavior the person exhibits in another situation, this is personality. Personality is the sum of sensory experiences others get from experiencing a person (i.e., how one talks, reacts). While ones personality is often interpreted by those we interact with, the person has his own vision of his personality, called Self Concept, which may or may not be the same has how others view us.
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Internal Influences (Personality)

Using research techniques to identify how customers view themselves may give marketers insight into products and promotion options that are not readily apparent. For example, a marketer may initially build a marketing strategy around more obvious clues to consumer behavior, such as consumers demographic indicators (e.g., age, occupation, income).
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Internal Influences (Personality)

But in-depth research may indicate that consumers are purchasing products to fulfill self-concept objectives that have little to do with the demographic category they fall into (e.g., senior citizen may be making purchases that make them feel younger). Appealing to the consumers self concept needs could expand the market to which the product is targeted.
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Internal Influences (Lifestyle)

Lifestyle relates to the way we live through the activities we engage in and interests we express. In simple terms it is what we value out of life. Lifestyle is often determined by how we spend our time and money. Products and services are purchased to support consumers lifestyles. Marketers have researched on how consumers in their target markets live their lives since this information is key to developing products, suggesting promotional strategies and even determining how best to distribute products
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Internal Influence (Motivation)

Motivation relates to our desire to achieve a certain outcome. When making purchase decisions a customers motivation could be affected by such issues as financial position (e.g., Can I afford the purchase?), time constraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I getting my moneys worth?), and perceived risk (e.g., What happens if I make a bad decision?).
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Internal Influence (Motivation)

Motivation also which relates to how much effort the consumer will exert in making a decision. Highly motivated consumers will want to get mentally and physically involved in the purchase process. Not all products require a high percentage of involvement.(e.g., buying milk). Products/services that may require high level of consumer involvement should have options that will be attractive to consumers. For instance, marketers should make it easy for consumers to learn about their product (e.g., information on website, free video preview) and, for some products, allow customers to experience the product (e.g., free trial) before committing to the purchase.
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Internal Influences (Roles)

Roles represent the position we feel we hold or others feel we should hold when dealing in a group environment. In support of their roles, consumers will make product choices that may vary depending on which role they are assuming. E.g. a person who is responsible for selecting snacks for an office party that his boss will attend may choose higher quality products than he would choose when selecting snacks for his family.
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Internal Influences (Roles)

Advertisers often show how the benefits of their products aid consumers as they perform certain roles. Typically the message of this promotional approach is to suggest that using the advertisers product will help raise ones status in the eyes of others while using a competitors product may have a negative effect on status.
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External Influences (Culture)

Consumer purchasing decisions are often affected by factors that are outside of their control but have direct or indirect impact on how we live and what we consume. An example of this are cultural factors. Culture represents the behavior, beliefs and, in many cases, the way we act which is learned by interacting with or observing other members of society. Much of what we do is shared behavior, passed along from one member of society to another.
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External Influences (Culture)

Sub-cultures exist where groups share similar values in terms of ethnicity, religious beliefs, geographic location, special interests. Marketers often use cultural representations, especially in promotional appeals. The objective is to connect to consumers using cultural references that are easily understood and often embraced by the consumer. By doing so the marketer hopes the consumer feels more comfortable with or can relate better to the product since it corresponds with their cultural values.
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External Influences (Group Membership)

Besides cultural influences, consumers belong to many other groups with which they share certain characteristics and which may influence purchase decisions. Often these groups contain Opinion Leaders who have a major influence on what the customer purchases. Some of the basic groups a consumer may belong to include:

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External Influences (Group Membership)

Social Class represents the social standing one has within a society based on such factors as income level, education, occupation. Family ones family situation can have a strong effect on how purchase decisions are made. Reference groups most consumers simultaneously belong to many other groups with which they associate or, in some cases, feel the need to disassociate
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External Influences (Group Membership)

Identifying and understanding the groups consumers belong to is a key for marketers. This helps identify target markets, develop new products, and create appealing marketing promotions to which consumers can relate. Marketers seek to locate group leaders and others to whom members of the group look for advice or direction. These opinion leaders, if well respected by the group, can be used to gain insight into group behavior.
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External Influences (Purchase Situation)

A purchase decision can be strongly affected by the situation in which a consumer finds himself. A situation is the circumstances a person faces when making a purchase decision, which could be the nature of their physical environment, their emotional state, or time constraints. Not all situations are controllable, in which case a consumer may not follow their normal process for making a purchase decision. For instance, if a person needs a product quickly and a store does not carry the brand they normally purchase, the customer may choose a competitors product.
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Types of Consumer Purchase Decisions

Consumers are faced with purchase decisions almost every day. But not all decisions are treated the same. Some decisions are more complex than others and therefore require more effort by the consumer. Other decisions are fairly routine and require little effort. Consumers face four types of purchase decisions:
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Types of Consumer Purchase Decisions

Minor New Purchase these purchases represent something new to a consumer but in the customers mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group). Minor Re-Purchase these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyal).

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Types of Consumer Purchase Decisions

Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumers lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.. Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product.
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CUSTOMER CENTRIC ORGANIZATIONS

Creating a positive consumer experience at the point of sale and post-sale. A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.

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CUSTOMER CENTRIC ORGANIZATIONS

Being Customer Centric is about an ability for everyone in the company to continuously learn about its customers and the market. It is also the responsibility of everyone in the company to respond appropriately to what they learn (about the customer).

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CUSTOMER CENTRIC ORGANIZATIONS

Customer centric does not mean simply doing everything the customer wants, irrespective of the impact on the business. Products, services and resources should be utilized in line with the organizations overall strategy as well as meeting the needs of customers.

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CUSTOMER CENTRIC ORGANIZATIONS

Customer centric strategy has to be well communicated throughout the whole company and senior managers have to be seen to be setting examples by practicing what they preach. Customer centric strategy must fit the culture and values of the organization. Organizations must document and clearly explain and communicate their values to ensure a customer centric organization.
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CUSTOMER CENTRIC ORGANIZATIONS

Being Customer centric means better relationships across the organization and customers which leads to increased revenues. Organizations must have a strong, shared set of beliefs that guides how customers are treated.

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CUSTOMER CENTRIC ORGANIZATIONS

A major impediment to building a customer-centric organization is the conflicting goals of the primary customer-facing departments: sales, marketing and service. Somehow, in the drive to achieve goals, each department loses sight of customers as people and sees them only as "objects" that need to be optimized. Shift the focus back to customers.
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CUSTOMER CENTRIC ORGANIZATIONS

When some companies have tried to standardize goals, their revenues decreased, customer satisfaction fell and loyalty dropped off, because the three primary customer-facing groups failed to cooperate.

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CUSTOMER CENTRIC ORGANIZATIONS

Treat customers like humans. Leon Leonwood Bean, the founder of L.L.Bean (a privately held mail-order, online and retail company based in Freeport, Maine, United States, specializing in clothing and outdoor recreation equipment. Its annual sales were USD 1.78 billion in 2006) believed that you should "sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more."

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CUSTOMER CENTRIC ORGANIZATIONS

It's all about leadership. Customer centricity is not a fad; it's a cornerstone of all successful businesses. Customers like to do business with companies that know who they are and demonstrate that they really care. The linchpin (key player) is senior leadership. Enterprises can change, but it has to come from the top.
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CORE VALUES OF CUSTOMER CENTRIC ORGANIZATIONS

Every interaction with customers (or lack of interaction) tells customers how much they are truly valued. Customer interactions are moments of truth when a customer learns if promises made to them will be honored or not. Experiences must match the level of importance/value/meaning of the interaction. That is, a wow experience is NOT always required, in fact it might be viewed as wasteful by the customer.
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CORE VALUES OF CUSTOMER CENTRIC ORGANIZATIONS

In order to create great experiences for customers, organizations must define what they want customers to think, feel, and do at every stage of the customer life cycle. Processes must be developed with business goals AND customer experience in mind. Customer experience failures are analyzed to learn how to create great experiences and value WITH not for customers. Communities of customers and prospects are actively fostered and supported.
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SOME COMMON FEATURES OF CUSTOMER CENTRIC ORGANIZATIONS

Market Intelligence/Knowledge: 1.Meeting with customers to determine current/future needs. 2.An in-house market research department. 3.Ability to detect changes in customers' product preferences. 4.At least annual surveys of customer perceptions.

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SOME COMMON FEATURES OF CUSTOMER CENTRIC ORGANIZATIONS

Communication to all employees: 1.Regular interdepartmental meetings on market trends and developments. 2.Important events in the market or with key customers are shared quickly with all affected departments. 3.Regular dissemination of customer satisfaction data at all levels of the company.
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SOME COMMON FEATURES OF CUSTOMER CENTRIC ORGANIZATIONS

Responsiveness: 1.Recognition of changes in customers' product or service needs. 2.Alignment of product development efforts with customer needs. 3.Regular, interdepartmental planning to respond to changes in the business environment. 4.Responsiveness to customer complaints. 5.Making concerted efforts to modify products or services to fit customer needs.
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SOME EXAMPLES OF CUSTOMER CENTRIC ORGANIZATIONS

Some examples of companies that are great at focusing on the customer and the experience they have. As a result, these organizations tend to build a loyal customer base the kind that will increase purchases with time, and that will generate longterm profits.

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SOME EXAMPLES OF CUSTOMER CENTRIC ORGANIZATIONS

Bose Supports its customers by honoring the warranty without question, even a few days past expiration. After buying an expensive product (say, a $300 pair of headphones), its nice to know the investment is protected.

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SOME EXAMPLES OF CUSTOMER CENTRIC ORGANIZATIONS

Apple Their stores are inviting, and are a place where customers can try virtually all of the products before purchase. Customers can and do check email on the computers, listen to music on an iPod or make a phone call from an iPhone. Free technical support is available at the Genius Bar, and you can even schedule a personal shopping appointment, so that an expert can help you buy the right products for you. Defective products are replaced on the spot, no questions asked.

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SOME EXAMPLES OF CUSTOMER CENTRIC ORGANIZATIONS

Kroger One of the largest grocery chains in the U.S. uses data from its Kroger Plus shopper card, sending loyal customers personalized coupons four times a year. The coupons have an extremely high redemption rate, since each customer gets coupons only for products or categories that they have previously purchased.
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SOME EXAMPLES OF CUSTOMER CENTRIC ORGANIZATIONS

Baristas happily and without question take back any beverage not made to a customers liking, and will make a new one that the customer chooses. Customers with dietary restrictions can usually find a product for them. For example, the company offers soy milk as an option for beverages,

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CUSTOMER LOYALTY AND PROFITABILITY

Customers are becoming a lot more demanding, and in most markets they have more options to choose from than ever before. The inconveniences of changing supplier, are being reduced. The growth of internet and telephone banking has presented consumers with a breadth of new alternatives
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CUSTOMER LOYALTY AND PROFITABILITY

Why does customer loyalty matter? It has been demonstrated that it is more expensive to acquire a new customer than it is to keep an existing one. They come to you. One of the key benefits of establishing a good level of customer loyalty is that you don't have to sell to them, they will come to you when they need a product or service, and they may even come to see if you have new products.
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CUSTOMER LOYALTY AND PROFITABILITY

Buy more often. Loyal customers come back more often, since they enjoy the service they receive from you. Try new products. If customers are happy with what they've bought from you before, they will be more willing to try new products. Perhaps they will even trust you to suggest products suitable for them.
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CUSTOMER LOYALTY AND PROFITABILITY

Recommend you. Loyal customers can become your most effective marketing tool (far more trustworthy than salesmen in the eyes of other customers) and they're free. Buy only from you. A strong relationship of trust can mean that customers will prefer you even if it is more difficult or more costly to use you than a competitor and they will not go to the trouble of shopping around before buying.
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CUSTOMER LOYALTY AND PROFITABILITY

Why are loyal customers more profitable than new customers? Acquisition costs: Gaining a new customer typically requires some marketing expenses such as advertising, sales commissions, sales force overhead, etc. unlike existing and loyal customers

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CUSTOMER LOYALTY AND PROFITABILITY

Revenue growth: With most companies customer spending tends to increase over time as customers become more familiar with the company and its product and service offerings. Cost savings: The longer you have a customer the more efficient you become in servicing them.
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CUSTOMER LOYALTY AND PROFITABILITY

Referrals: Long term customers tend to recommend your business to others because of their satisfaction with your company. Price Premium: In most industries, old customers tend to pay effectively higher prices than new ones who may receive trial discounts, introductory offers, etc.
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CUSTOMER LOYALTY AND PROFITABILITY

Loyal customers may not be the most profitable ones: Research finds a majority of loyal customers often more than 50%are not profitable for most companies, because their loyalty is driven largely by expectations of great deals. Long term (loyal customers) usually pay less than newer customers because they are more knowledgeable about the products quality, price.
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CUSTOMER LOYALTY AND PROFITABILITY

Some customers tend to buy from the same company out of sheer inertia and who want to avoid the inconvenience of shopping for new companies. Such customers do not necessarily advocate your company to others. Organizations sort customers based on how often and how much they spend. It is important to scrutinize customers on the profit that they are generating for the organization that they are buying from.
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CUSTOMER LOYALTY AND PROFITABILITY

It is important also to analyze the profitability of each customer and treat them differently. A swanky hotel in Dsseldorf, noticed that some of their most loyal customers constantly telephoned the concierge with impossible requests. These "attention-seekers" were often less profitable than other loyal customers who made fewer demands but spent more.
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CUSTOMER LOYALTY AND PROFITABILITY

Customer loyalty does not always equal profits. Many companies dont know how to recognize and thus encouragethe kind of customer loyalty thats really not worth having. Instead of making sure that you have enough loyal customers a company should be asking 1) which loyal customers are good for the business, 2) how do we hang onto them, and 3) how do we get more customers like them.
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CUSTOMER LOYALTY AND PROFITABILITY

Unprofitable loyal customers tend to be loyal for one of two reasons: 1) they are driven by unprofitable pricing or exchange policies, or 2) they demand an excessive amount of service that they are not willing to pay fairly to receive. Profitable Loyals on the other hand are almost always driven by differentiating aspects of product or service offering.
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CUSTOMER LOYALTY AND PROFITABILITY

While not every customer has the potential to be a Profitable Loyal, it is important to remember that they are the ideal customers of the firmthey feel an attachment to the firm/brand, have a high share of category spend, and contribute profits to the firm. Strategies aimed at improving customer loyalty should focus on understanding what differentiates a companys offer from competitors to Profitable Loyals and work towards strengthening that competitive edge.
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

It is all about understanding the psychology of the customers. It requires getting into the mind and heart and head of customers and ultimately, discovering the clues that make them loyal, sometimes irrationally so, to a brand. Companies are moving from making and selling to really sensing and responding. Creating an emotion by thinking and looking at everything from the customers point of view.
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

It is fundamental to understand how customers behave. It is necessary to become very concerned about attitudes. How customers feel about a company. How they feel about its products and brand. But the ultimate value is how it causes them to feel about themselves
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

Customers consciously and unconsciously filter a barrage of clues and organize them into a set of impressionssome rational, some emotional. Some clues are relayed from human behavior (voice tone, body language) and others are mechanical (design, color, temperature). Thus, without consciously knowing it, we are aware of the comfort of a chair in a Coffee Day or how a hotel that you frequent folds towels.
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

Organizations should try to be as transparent as possible in their interactions with customers so that customers dont feel as though the organization is hiding something from them or lying to them or cheating them. Organizations managers and its other employees should live the brand with their customers. Harley-Davidson executives ride and interact with their customers on H.O.G. (Harley Owners Group) rallies.
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

Consumers make purchase decisions for many different reasons. To fully engage a customer, a company needs to understand and appeal to the rational (analytical) reasoning as well as the irrational (emotional) reasoning. An organization needs to know when, how, and why to contact the customer and how to utilize relationship data to appeal to both the emotional aspects and analytical reasoning for each individual; constantly learning and evolving with each contact.
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

Customers can become emotionally involved in a brand and that emotional involvement can become extremely powerful. Reasons why emotionally engaging your customers is important to your companys success: People respond well to tugs on their heartstrings

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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

It is not possible to force them, buy them, or turn them into something they are not ready to be. Therefore, by authentically and gently touching on peoples emotions, people will get to know, like and ultimately trust you over time. Take every single opportunity to show you truly care about your customers, their opinions and how they experience the relationship with your business.
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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

It generates consumer gratitude, loyalty and respect. It increases positive word of mouth. Apologize for a mistake, you have a golden opportunity to turn a disgruntled customer into an advocate of your brand. Why? Because you took the time to listen and care about them as an individual.

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EMOTIONAL ENGAGEMENT WITH CUSTOMERS

It will increase your bottom line. People like to do business with people they like. Implement a culture of caring and communication into your business, nurture one-to-one relationships and watch your customers reward your efforts by using their new and massively powerful word of mouth to market your brand for you.

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CUSTOMER PORTFOLIO MANAGEMENT

Learn who your customers are, why they purchase from you and what keeps them buying from you rather than your competitors. That doesn't mean that you need to know EACH customer individually, but to know what types of people buy from you. In short, develop customer profiles. In traditional marketing lingo, this means "market segmentation." Divide your entire market into smaller groups of potential customers that have similar demographic, psychographic and / or product usage characteristics.
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CUSTOMER PORTFOLIO MANAGEMENT

Many companies have adopted market segmentation as a corporate strategy, creating and maintaining detailed profiles for each product or service group. This type of program then directs many strategic decisions and tactical activities in marketing, sales, product development, and customer support.

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THE CUSTOMER IS KING!

The mantra that the Customer is King is the premise that any products design, production, distribution and marketing should have one central focus at the core of all decision-making: the customer (remember: in some instances, the customer may not necessarily be the end-user or consumer).

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THE CUSTOMER IS KING!

Products or brands by themselves do not automatically usher in customer loyalty or strengthen customer relations. In todays world, customers are looking for products that suit their purpose best in terms of price, features, quality and appearance. They expect to be treated as "kings" and to receive sales and service support, along with definite solutions to problems from retailers, dealers or channel partners.

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THE CUSTOMER IS KING!

Customer First make customers the central focus of all decision making; product design, production, distribution and marketing Customers want products that best meet their needs in terms of price, features, quality and appearance. Know your customer and predict their needs before they ask the question. Tailor products to meet different customer needs. Simplify the purchase process for your customer. Add value through innovation and incentives. Deliver something that goes beyond the basic product.
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