marketing

Understanding customers more deeply

In my last Research Tidbit, we discussed the importance of uncovering customers’ unconscious motivators and the use of techniques from NLP and hypnotherapy, such as guided visualization, to do so.

Another valuable technique for market researchers is the ego state approach, widely used in hypnotherapy. This model suggests that our personalities are made up of different “parts” or ego states, each of which comes to the forefront in different contexts.

For instance, an accountant might draw on a highly analytical part of herself when reviewing a spreadsheet, but access a more playful part while riding a rollercoaster with her kids. Most of the time, these parts work together smoothly – but not always. If you’ve ever thought, “A part of me wants to eat that donut, but another part knows I’ll regret it later,” you’ve experienced a moment when your internal parts were in conflict.

The ego state approach can be very helpful in understanding customer decision-making and how to appeal to all the parts involved in the decision. In research sessions, we can apply this approach by:

  • Asking about the parts involved in the decision.
    “Is there a part of you that really wants to make the purchase? A part that’s hesitant? Are there other parts that have concerns?”
  • Exploring the motivations of each part.
    “If the part of you that wants to go for it could speak, what would it say?”
  • Discussing what would help align the parts.
    “What would the resistant part need to feel more comfortable? What information or reassurance would help it get on board?”

This technique encourages participants to move beyond purely rational explanations and share emotional, intuitive, and even contradictory motivations – which are often more telling and actionable than logical responses alone.

For clients, the benefits go beyond deeper empathy. The ego state approach can help marketing teams:

• Create richer personas that reflect different internal drives and tensions.
• Identify internal conflicts that may be blocking conversions.
• Design messaging that speaks to multiple “parts” of the consumer—addressing doubts while inspiring desire.

By mapping out these inner dynamics, brands can craft communications that don’t just inform, but resonate – acknowledging and validating the complex inner worlds that shape real-world choices.

Let’s find ways to understand your customers more deeply. Email me at info at bureauwest.com.

Reference: “Ego State Therapy,” Gordon Emmerson, 2007

Posted on by Jay Zaltzman

How to avoid unprofitable customers

Not all customers are profitable to a business. There are those who only ever buy products at a discount. There are customers who return products repeatedly. And those who utilize customer service disproportionately. (It turns out the customer isn’t always right!) Even though it goes against our instincts, there are customers that companies should not want – they should either be “fired” or, better yet, never become customers in the first place.

Some examples:

  • Years ago, Best Buy classified its customers as “angels” or “devils.” According to The Wall Street Journal, “The devils are its worst customers. They buy products, apply for rebates, return the purchases, then buy them back at returned-merchandise discounts.” They changed their policies to make them less vulnerable to exploitation, adding a 15% restocking fee and selling restocked goods over the Internet instead of in-store.
  • Hubspot had two main customer segments: people who run small businesses (1-10 employees) whom they called “Ollie Owner,” and marketers at companies with 10-1000 employees (“Mary Marketer”). At a certain point, the company realized that the Mary Marketers were much more loyal and profitable then Ollie Owners. They didn’t “fire” their Ollie Owner customers, but rather, focused their marketing and service efforts on pleasing Mary Marketers.

How can your company avoid unprofitable customers?

  • Analyze existing data to identify and focus on customer groups that are likely to be profitable. Consider behavioral segmentation, looking at purchase recency, frequency and value, as well as customer lifetime value.
  • Approach discounting with care, looking for ways to incentivize good customers rather than encouraging unprofitable ones. One option: make discounts part of a loyalty program.
  • Develop personas for both profitable and unprofitable customers. Those “negative” personas can help guide marketing and product offerings, making sure you appeal to the good customers and not the unprofitable ones.
  • Pamper your high-value customers. Provide an amazing customer experience to your most profitable customers. Consider having explicit customer tiers like airlines do with frequent flyer status – those who are most profitable can unlock extra bonuses and services.
  • For some companies, it may make sense to screen customers and/or have minimum purchase levels.

Let’s discuss how to find your most profitable customers. Email me at info at bureauwest.com.

Sources: “Case study: how audience-driven products built a unicorn,” GTMonday, 3/4/24; “Best Buy hopes to exorcize devil patrons,” Ars Technica, 11/8/04

Posted on by Jay Zaltzman

Beyond research: empathy

I was recently talking to my friend and colleague Rob Volpe, CEO of Ignite 360 and author of the book Tell Me More About That: Solving the Empathy Crisis One Conversation at a Time. We were discussing a recent presentation he gave about how empathy influences buyer behavior. Spoiler alert: empathy has always been required to conduct market research well and to create effective marketing. But with the pressures we all face, clients can sometimes forget that, and it can be worth reiterating the benefits of utilizing empathy in our work:

  • Empathy allows marketers to deeply understand the needs, desires, and pain points of their target audience. This understanding helps in creating products, services, and marketing messages that truly resonate with customers.
  • Empathetic marketing builds trust because it shows customers that brands genuinely care about their concerns and well-being. This trust leads to stronger customer relationships and loyalty over time.
  • Empathy enables brands to create emotional connections with customers. They are more likely to choose a brand that makes them feel understood and valued.
  • Empathy can influence purchase decisions by addressing emotional triggers and motivations effectively. Brands that connect on an emotional level through empathy are more likely to influence customers to choose their products or services.

How can we infuse empathy in our market research and our marketing?

Start with overall mindset. When conducting research, we should go beyond seeing answers to questions such as “how do you choose which product to buy?” and strive to understand customers’ overall lives. This means:

  • Taking the time to build rapport with participants.
  • Asking open-ended questions that invite detailed responses.
  • Reflecting back answers to show participants we understand.

Most of us would call the above “conducting research the right way!” But when time and cost pressures come to bear, it can be worth reminding our clients of the benefit of conducting truly empathetic research.

Let’s discuss how to infuse empathy into your research. Email me at info at bureauwest.com.

Sources: Tell Me More About That: Solving the Empathy Crisis One Conversation at a Time, Rob Volpe, 2022; Rob Volpe

Posted on by Jay Zaltzman

Mindful consumerism: quality over quantity


Welcome to the era of mindful consumerism, where quality reigns supreme and intentional purchases are the new black. Consumers are embracing a new mantra: less is more. But this isn’t just about decluttering or minimalism. It’s about making deliberate choices that align with their values, their wallets, and their world.

Picture this: You’re standing in a store, eyeing a beautiful leather jacket. It’s not cheap, but it’s well-made and timeless. Next to it hangs a cheaper alternative that’s on-trend but likely won’t last the season. Which do you choose?

Increasingly, consumers are opting for the former. They’re investing in quality pieces that stand the test of time, both in style and durability. This shift towards intentional purchasing is reshaping the retail landscape, forcing brands to up their game or risk being left behind.

But why the change? Several factors are at play:

  • Economic savviness: With inflation biting and purse strings tightening, consumers are thinking long-term. They’re realizing that spending more upfront on quality items can save money in the long run.
  • Environmental consciousness: The throwaway culture is out. Sustainability is in. Consumers are waking up to the environmental impact of fast fashion and disposable goods.
  • Value alignment: People want to support brands that share their values. Whether it’s ethical production, fair labor practices, or eco-friendly materials, consumers are voting with their wallets.
  • Experience over stuff: There’s a growing realization that happiness doesn’t come from accumulating things. Instead, people are seeking quality experiences and products that enhance their lives.

How is this trend reflected in customer behavior?

  • Customers are doing more research before they buy.
  • There is greater interest in timeless pieces that are perceived to transcend trends.
  • They consider cost per use. A $200 jacket worn 100 times is better value than a $50 one worn twice.
  • They are willing to pay more in areas that matter to them. It’s okay to splurge when it’s important while economizing on less important items.

But defining “quality” isn’t always straightforward. It’s not always about price tags or brand names. The perception of quality can come craftsmanship, the materials used, and the values behind the brand. This presents both a challenge and an opportunity for brands. Those who can authentically deliver on quality and communicate their value proposition effectively will win the hearts (and wallets) of discerning consumers.

What are your customers looking for when it comes to quality? Let’s ask them! Email me at info at bureauwest.com.

Sources: “Here Are The Consumer Behaviors That Will Continue Into 2024.” 5Wpr, 1/15/24; “Conscious Consumer Spending Could Be At A Tipping Point,” Forbes, 11/30/23; “Navigating the Dynamic Retail Landscape,” KNow Research, 1/26/24

Posted on by Jay Zaltzman