Wary consumers will give more money to the businesses they feel emotionally connected to — while ignoring, or even opposing, those that provide them no value.
I was doing some research recently on eCommerce personalization, and I kept running across the term ‘Engaged Customer’, and so I started breaking down the meaning of the engaged customer. Maybe this article with encourage your thoughts to help you strategically tie eCommerce personalization into your Marketing plan to build that emotion.
Engaged customers are important. Engaged customers spend more money; and are more loyal. Engaged customers are emotionally attached customers. They ‘feel good‘ about the product or service.
According to Gallup, “When American consumers do spend, they’re vigilant in making sure they get the best value for their hard-earned money. They research, compare, seek out recommendations, ask questions, and carefully consider their options. Buying just about anything, whether it’s a $20 shirt or a $20,000 car, is more of an emotional act for customers than ever before.
A customer who is fully engaged represents an average 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer.
The upshot is that consumers are spending money, but they’re more inclined to spend it only with businesses they ‘feel good’ about. Here are some great examples of ads you won’t forget using humor to make you ‘feel good’.
How do you define ‘feel good’? How do you create a ‘feel good’ brand? Are ‘Feel Good’ and ‘Emotion’ terms that can be used interchangeably?
What are the emotions we are trying to connect with? How do we connect with them?
Research Junction blog with examples about building a brand based on a wide variety of emotions that include the desire for freedom; fear; instant gratification; control; guilt; love; a good deal; desire to be trendy; trust; and security.
Where do you fit on Kevin Roberts’ Love/Respect Axis?
Engaged customers spend more money.
Gallup research has found that:
- Restaurant — casual dining: Fully engaged customers make 56% more visits per month than actively disengaged customers do.
- Restaurant — fast food: Fully engaged customers make 28% more visits per month than actively disengaged customers do.
- Hospitality: Fully engaged hotel guests spend 46% more per year than actively disengaged guests spend.
- Insurance: Fully engaged policy owners purchase 22% more types of insurance products than actively disengaged policy owners do.
- In the retail banking industry, customers who are fully engaged bring 37% more annual revenue to their primary bank than do customers who are actively disengaged. Fully engaged banking customers also have more products with their bank, from checking and savings accounts to mortgages and auto loans. c
- In the consumer electronics industry, fully engaged shoppers make 44% more visits per year to their preferred retailer than do actively disengaged shoppers.
And don’t use the Omnichannel platform to create a ‘feel bad’ brand. I ordered a new iPad from Best Buy recently online to pick up in a nearby store. An email arrives and says, ‘your iPad is ready to be picked up.
So, I go to the nearest Best Buy and they tell me it is ‘ready’ at a Mall 500 miles south. This is about as poor a way to use an excellent platform (ATG) as can be imagined. Knowing inventory availability, shipping times, my address – none of this was important to the people that set-up the platform, or worse; they did not care. I did get charged, so the shopping cart was of importance. Are you feelin’ me?
But, I digress.
Ecommerce platforms and associated tools have given us the ability to track customer touchpoints and learn about the individual in detail. Now, it is up to Marketing departments to take action on those attributes to build the ‘feel-good’ Emotional brand.
Best of luck building your Emotional brand.