Archive for ‘Consumer Behavior’

January 15th, 2015

50 Essential Facts About Consumer Behavior

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Whether your area of specialty is social media, mobile marketing, paid search or just about any other marketing discipline, all of your efforts should start by analyzing the wants, needs and behaviors of your consumer.

With that in mind, we’ve collected 50 essential facts about consumer behavior that we think will help you wrap your mind around the funny, oddball and sometimes counter-intuitive side of why people buy.

    1. Price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service. http://www.linkedin.com/today/post/article/20130604134550-284615-15-statistics-that-should-change-the-business-world-but-haven-t
    2. A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. http://www.linkedin.com/today/post/article/20130604134550-284615-15-statistics-that-should-change-the-business-world-but-haven-t
    3. Limited availability of certain items can create an obsession with the items, such as KFC’s “Double Down” and McDonald’s “McRib.” http://hbswk.hbs.edu/item/7236.html
    4. Bundling products together increase sales as long as consumers have the option of buying the products separately. http://hbswk.hbs.edu/item/6814.html
    5. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%  http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    6. According to the White House Office of Consumer Affairs, happy customers who get their issue resolved tell about 4-6 people about their experience. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    7. A 2% increase in customer retention has the same effect as decreasing costs by 10%. http://www.linkedin.com/today/post/article/20130604134550-284615-15-statistics-that-should-change-the-business-world-but-haven-t
    8. 56% of consumers under the age of 35 interact with their favorite brands on Facebook. http://www.brandchannel.com/images/papers/530_chadwick_martin_bailey_ppt_fb_consumer_behavior_0911.pdf
    9. 62% of online shoppers are brand loyal. http://www.slideshare.net/InterbrandDesignForum/082410-csa-slideshow
    10. 77% of online shoppers use reviews to make a purchase decision. http://www.slideshare.net/InterbrandDesignForum/082410-csa-slideshow
    11. 89% of shoppers do online research before purchasing an item in-store. http://www.slideshare.net/InterbrandDesignForum/082410-csa-slideshow
    12. 42% of shoppers spend over half their shopping time doing online research. http://www.slideshare.net/InterbrandDesignForum/082410-csa-slideshow
    13. 45% of shoppers use their phone to research prices. http://www.slideshare.net/InterbrandDesignForum/082410-csa-slideshow
    14. When shopping online, 58% of women and 44% of men are concerned about the cost of shipping. http://threedeadlyvenoms.blogspot.com/2011/02/todays-five-facts-about-consumer.html
    15. 81% of affluent families with teenagers own five or more computers, according to Ipsos OTX. http://threedeadlyvenoms.blogspot.com/2011/02/todays-five-facts-about-consumer.html
    16. 62% of drivers believe that talking on a cell phone while driving is dangerous, but 69% have done so in the past month, according to AAA Foundation.  http://threedeadlyvenoms.blogspot.com/2011/02/todays-five-facts-about-consumer.html
    17. 38 % of people buy online because of low prices. http://www.rubymarketer.com/online-consumer-behaviour-2011-2015/
    18. 79% of women shop online compared to the 77% of men who shop online. http://www.rubymarketer.com/online-consumer-behaviour-2011-2015/
    19. Only 14% of online shoppers use the internet to search for online coupons. http://www.rubymarketer.com/online-consumer-behaviour-2011-2015/
    20. 33% of men and 38% of women don’t buy online because they want to touch the product before the buy it. http://www.rubymarketer.com/online-consumer-behaviour-2011-2015/
    21. 94% of respondents had used their smartphone to look for local information and 90% of those had taken action as a result. Of those, 70% connected with the business, 66% actually visited the business, and 36% made a purchase. http://factsandtacts.blogspot.com/2012/10/some-facts-about-us-mobile-consumer.html
    22. After finding local business information on their mobile, 15% of respondents said they had read or written a review, while 13% recommended the business to someone else. http://factsandtacts.blogspot.com/2012/10/some-facts-about-us-mobile-consumer.html
    23. An overwhelming majority of respondents (96%) had searched for product information from their mobile device. http://factsandtacts.blogspot.com/2012/10/some-facts-about-us-mobile-consumer.html
    24. 35% intentionally carry their smartphone while shopping so they can comparison shop. 32% said they had changed their mind about purchasing in-store based on information found online while shopping. http://factsandtacts.blogspot.com/2012/10/some-facts-about-us-mobile-consumer.html
    25. 35% of American smartphone users have purchased through their mobile device, 68% of those within the last month.  However, 65% still prefer to purchase while on their computer. http://factsandtacts.blogspot.com/2012/10/some-facts-about-us-mobile-consumer.html
    26. 98% of U.S. smartphone users notice mobile ads; 48% while in an app, 46% while on a website, 40% while using a search engine, and 27% while watching a video. http://factsandtacts.blogspot.com/2012/10/some-facts-about-us-mobile-consumer.html
    27. 75% of consumers buy nothing (or buy less) if there are not enough employees at the store. http://www.buzzbooster.com/blog/consumer-behavior-facts/
    28. 66% of consumers will watch a video twice if it is informative. http://www.buzzbooster.com/blog/consumer-behavior-facts/
    29. Consumers will watch videos 60% of the time they find them on retail sites. http://www.buzzbooster.com/blog/consumer-behavior-facts/
    30. 85% of all consumer brand purchases are controlled or influenced by women. http://www.marketingmel.com/2012/10/02/consumer-behavior-and-the-new-woman/
    31. 91% of women do not feel advertisers connect with them. http://www.marketingmel.com/2012/10/02/consumer-behavior-and-the-new-woman/
    32. 88.7% of online user also shop online. http://www.invesp.com/blog/ecommerce/online-consumer.html
    33. 81% of consumers possess a loyalty card from at least one store. http://thenokadiblog.com/new-light-on-consumer-behavior-around-loyalty-cards/
    34. 55% would welcome signing up for more loyalty programs as long as it doesn’t mean more plastic cards in their wallet. http://thenokadiblog.com/new-light-on-consumer-behavior-around-loyalty-cards/
    35. 17% of US population has a tablet, but what they’re doing on it is what’s really important. 43% are pulling the trigger and making a purchase, twice the percentage of those with mobile phones. http://www.experian.com/blogs/marketing-forward/2013/07/11/fun-facts-from-the-ems-client-summit-understanding-consumer-behavior-is-the-key-to-marketing-program-success/
    36. 11% of people are more likely to make a purchase if their network of friends have used or recommended the item. http://www.experian.com/blogs/marketing-forward/2013/07/11/fun-facts-from-the-ems-client-summit-understanding-consumer-behavior-is-the-key-to-marketing-program-success/
    37. 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    38. 55% of customers would pay extra to guarantee a better service. http://returnonbehavior.com/2010/10/50-facts-about-customer-e
    39. 72% of all customers believe it takes too long to reach a live agent http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    40. 70% of buying experiences are based on how the customer feels they are being treated. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    41. A customer is 4 times more likely to defect to a competitor if the problem is service related than price or product related. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    42. 85% of consumers are dissatisfied with their phone experience. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    43. 28% of the mobile users are responsible for 90% of the spending. http://www.nada.kth.se/utbildning/grukth/exjobb/rapportlistor/2006/rapporter06/ahslund_frida_06011.pdf
    44. 79% of consumers prefer to connect with brands on Facebook http://www.socialmediaexaminer.com/9-consumer-social-media-trends-that-could-impact-marketers/
    45. It takes 12 positive experiences to make up for one unresolved negative experience – “Understanding Customers” by Ruby Newell-Legner http://quest-news.whereilive.com.au/blogs/story/customer-service-pays-its-a-fact/
    46. Customer loyalty is, in most cases, worth 10 times the price of a single purchase. http://quest-news.whereilive.com.au/blogs/story/customer-service-pays-its-a-fact/
    47. eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers.  http://www.linkedin.com/today/post/article/20130604134550-284615-15-statistics-that-should-change-the-business-world-but-haven-t
    48. 55% of current marketing spent is on new customer acquisition. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    49. Only 12% of current marketing spend is on customer retention. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/
    50. For every customer complaint, there are 26 other unhappy customers who have remained silent. http://returnonbehavior.com/2010/10/50-facts-about-customer-experience-for-2011/

We hope you find the data here helpful. Of course, data is just data unless you draw insights from it. So we’d encourage you to take a spin through these facts and figures, highlight the ones out that match up with your industry or product category, then try to draw some insights from them that you can use to improve your marketing results.

Keep us posted on how things go. And let us know about your favorite facts about consumer behavior.
Jamie Turner is the CEO of the 60 Second Marketer and 60 Second Communications, an Atlanta-based advertising agency and digital marketing firm that works with national and international brands. He is the co-author of “How to Make Money with Social Media” and “Go Mobile” and is a popular marketing speaker at events, trade shows and corporations around the globe.

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Archive for ‘Consumer Behavior’

December 30th, 2014

How to Use Brain Science to Improve Your Next Social Media Campaign

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Did you know that our brain processes visual information 60,000 times more quickly than it does text?

It’s true. And it’s just one of the many facts about brain science that you can use in developing your next social media campaign.

Check out the full infographic below, brought to us by our friends at email marketing service provider Emma.

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Archive for ‘Consumer Behavior’

November 17th, 2014

How to Improve Your Marketing ROI by Targeting the Secondary Shopper

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Did you know that 29% of women worry that their husbands will get something wrong when shopping? That’s just one of the findings from a consumer behavior study shared with us by our friends at 22squared.

The research, conducted with over 500 shoppers in the U.S., also found that while 72% of those surveyed said they were the primary shopper, 82% actually shared in the responsibility for shopping.

Research on shoppers

Interestingly, 38% of the men surveyed were quick to admit their wives pitched in on the shopping, while only 18% of the women admitted their husbands pitched in. What’s more, unlike other shared duties like paying bills or picking up the children, household shopping isn’t something couples consciously plan for.

Here’s a quote from one of the women in the study:

Being a team is part of being married. No one said, ‘Here’s how you’re doing to divide up the shopping.’ It happened organically and it works.

– Female, 38

The study also took a look at how people shop when they’re in-store. For example, the graphic below highlights how collaboration varies across different categories of retail stores.

Chart with shopping research

Here’s some additional good news in the research — 79% of respondents are satisfied with the shared involvement and are even grateful to have a teammate to lean on. And 65% would shop together more often if they had more time.

The study also concluded that there are 6 different kinds of team shoppers, outlined in the chart below.

Team Shopping Graphic

Why does all this matter? The research found that effective teams make more valuable shoppers. In fact, those who shop as an effective team are 20% more likely to love shopping at your store (which, of course, means they’re more likely to come back).

Data about shoppers

 

The study from 22squared is packed with interesting information and insights. If you’re a business owner an you’re interested in improving the results of your next marketing campaign, check out this information-packed infographic or view the accompanying SlideShare presentation.

 

Jamie Turner is the CEO of the 60 Second Marketer and 60 Second Communications, a marketing communications agency that works with national and international brands. He is the co-author of “How to Make Money with Social Media” and “Go Mobile” and is a popular marketing speaker at events, trade shows and corporations around the globe.

Book by Jamie Turner

Archive for ‘Consumer Behavior’

August 4th, 2014

Use Visual Saliency Detection to Bond with Your Customers on a Subconscious Level

Slide1 Did you know that the first few seconds that your ad appears on a page are the most critical? It turns out that that’s when the subconscious does all its work. The subconscious is the emotional driver that influences the powerful human need for safety and reward, and that reward is what we experience from making purchase decisions.

But how can you know if your ads are standing out to your audience in those critical early seconds?

New scanning technology developed by neuroscientist laboratoriespredicts with 80 to 90% accuracy if consumers are seeing core advertising and marketing messages in the first seconds. Graphic designers can combine art and science to connect messages with the subconscious mind (where 95% of buying decisions are made) in those early seconds. This proven science is the biological basis for how consumers make impulse decisions from survival instincts.

The science of what happens in the first seconds:

Our subconscious protects us from perceived threats while searching for resources critical to survival. Humans are biologically wired in the subconscious for safety, reward and social interaction with other humans to build long-term relationships and attachments, even with brands. This all happens in the blink of an eye. Therefore, messages that consistently and quickly communicate safety and reward will trigger vital instincts in the reward and pleasure center of the subconscious, which determines safety from advertising messages. This will mean that people will be drawn to your ads rather than repelled by them.

The biological visual system is object-oriented:

Because of its desire to avoid danger, the visual system is innately drawn to specific, perceivably harmful salient objects. These can be sharp points, edges, angles, bright color contrasts and contour shapes in any visual scene that will signal danger to the subconscious. But once the salient objects attract the attention of the subconscious, the messages surrounding the objects can send a message of safety and reward. Untitled Road traffic signs are a good example of salient objects that strongly attract the visual system. They signal danger to the subconscious, which then determines safety and reward from the signs’ messages. The scanning technology software, called visual saliency detection, models these survival instincts, highlighting the salient objects in a visual that the biological visual system will be attracted to first. Basically, it shows via heat map what your audience will see in those critical first seconds. In this example, the darker red mapping first detected the bright color contrast and contour shape on the green pail and the plant’s edges and angles emerging from the pail. Untitled3 Untitled2

How perfect ads can be created with salient objects:

In this Miss Dior ad,scanning first detected in the darker red mapping what the consumer’s visual system would see first.  This was the sharp font contrasted against the arm on the Dior D and the M on the Miss. It then detected the edges, angles, and color contrast on the pink flower, followed by the Dior brand and product.

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The Miss Dior ad illustrates the effectiveness of visual saliency detection. Observing these results shows that the contrast could be a touch stronger on the name of the product, and the product itself almost doesn’t register at all. While the imagery that does register drastically supports the brand image and communicates safety, it will work better as a branding point rather than a direct response tool since the product itself is dulled.

How to use salient objects to increase your advertising and marketing visibility:

You can strategically integrate sharp points, edges, angles, color contrast, and contour shapes into your core messages with safety and reward. This will attract the visual system in the first seconds and trigger the reward and pleasure center of the subconscious. Scanning is effective on mobile, banner, print, and out-of-home ads, as well as websites, product packaging, in-store marketing, and even video (coming soon). It can also be applied to corporate internal marketing, brand communications, and PR.

Try it for free:

To learn more about how you can increase your ad visibility effectiveness in the first seconds, email adimage@visualadscan.com one ad image and you will receive one FREE scientific scan that predicts if consumers are seeing your core messages in the first critical seconds.

Joe Cirillo, CEO of Visual Ad Scan Technology™ Vast™, is a marketing entrepreneur and author. He co-founded Visual Ad Scan Technology™Vast™ after conducting research with an evolutionary psychologist and a neuroscientist on how human behavior developed from early human experiences. This research revealed how decision-making is biologically influenced from survival instincts in the subconscious that controls why we buy.

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Archive for ‘Consumer Behavior’

April 16th, 2014

How to Use Consumer Psychology to Grow Your Sales and Revenues

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Timing is everything. The more personalized an ad experience is, the better. The privilege to recommend is based on trust. Emotional connections are always stronger than superficial ones.

Chances are, if you’ve been in the marketing world for any amount of time, you know all of these principles and more. You probably employ them, or at least assume their truth, in some way every single day.

But do you really understand why they work?

What is it about the human brain that relies on trust and emotion over hearsay and superficiality almost every time? And how does this effect differ from person to person? Most of these principles boil down not to basic marketing truth but to basic human psychology. And having an understanding of that consumer psychology is imperative to fully exercising those marketing principles.

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In Dr. David Lewis’ new book The Brain Sell (Nicholas Brealey Publishing), you can take a dive into how consumer psychology impacts ad viewing, consideration, and purchasing, which reflects the things marketers are doing right (and wrong). And better yet, he does it all from the perspective of the digital marketing trend, bringing tried and true principles into the modern day, still holding their own.

How Frito Lay Leveraged Common Teenage Behaviors to Grow their Market Share

Perhaps one of the most interesting campaigns Dr. Lewis discusses is one created in 2008 by Frito Lay called Hotel 626. The game was a computer-based adventure where players had to fight to escape a haunted hotel, interacting with other players and the program via webcam, microphone, and mobile devices. It was, all in all, a terrifying experience available only at night, and the teenagers loved it.

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The campaign was an effort to bring “back from the dead” two unpopular Doritos flavors, and it was wildly successful. First of all, they were able to hold the attention of the players for an average of 13 minutes, which is an eternity for food marketers.

Second of all, they were able to jumpstart their Twitter presence (the platform was still gaining popularity at the time). Of course, if you’ve read any of the previous blogs on the 60 Second Marketer, you know we’re all about ROI, so the important thing is whether or not the campaign generated sales revenue.

Boy, did it ever. The campaign cost less than $1 million, pocket change to a huge conglomerate like Frito Lay, and inspired sales of more than 2 million bags of the relaunched flavors within just three weeks. The campaign won the Cyber Lion that year, and the company recreated the game as Asylum 626 the following Halloween (which was exactly as horrifying as it sounds, though also very successful).

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Some of the coolest aspects of this campaign were the technologies involved. In the re-created version, Asylum 626, the webcam actually employed head-tracking capabilities, requiring players to physically dodge attacks. In both versions, players could ask for help via a live Twitter stream, and their friends could help rescue them by banging on their keyboards. They were even shown pictures of multiple Facebook friends and asked to choose who would live.

But perhaps even cooler than the technology is the psychology behind the phenomenon. Until that point, Frito Lay had been putting a lot of effort into marketing to moms. But they realized at some point that it wasn’t working, and they decided to turn their attention to their actual consumers: teenagers. To do that, they needed to endure one of the hardest tasks in psychology: to understand the minds of volatile teenagers.

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Actually, what they found was both simple and accurate. Teenagers don’t yet have fully matured prefrontal cortexes, meaning they are not as capable of making mature decisions and are especially vulnerable to fear-related stimuli.

Basically, it means that the easiest way to get a teenager to eat a high-fat snack is to scare him into doing it while rewarding him simultaneously. By forcing the teens to make decisions under high-stress situations, the campaign created a connection between high-stress situations and the desire for certain flavors of chips.

Manipulative? Maybe. Genius? Definitely.

Every marketing decision should be made with psychology in mind, because every purchasing decision is.

Hotel 626 is just one fascinating example of the case studies found in The Brain Sell. Click here to find the book on Amazon, and don’t forget to consider the psychology of your consumers the next time you evaluate your marketing strategy.

About the Author: Samantha Gale is a social media and content marketing specialist working for 60 Second Communications, a full-service marketing agency working with brands around the globe.