Tuesday, 31 October 2017

The Four Battlegrounds in Consumer Marketing for Business Expansion

When we talk about consumer marketing, we refer to social media and ecommerce. It is true that, over the years, social media has become a highly deliverable marketing platform, nevertheless, E-Commerce is been consumers’ favorite over the years. So, what helps consumer loyalty? Will a consumer choose particular brand or a particular line of product or service? What decides a particular type of purchase? To know the answers, you need to regularly track analytics data and examine your marketing strategies and improvise on those.

Your consumers’ loyalty quotient 

Depending on the buying behavior of a consumer, you can decide whether they will be loyalists or not. A recent market survey by a famous E-Commerce enterprise showed that most previous purchasers made a new purchase on the basis of their last purchase. So, the analytics indicated their inclination towards the brand previously purchased. The other choices were clicked on and left. 

While vulnerable purchasers took the above mentioned path, the switchers did not falter from considering purchasing a new brand. The study recorded only 13% of consumers as loyalists. Whereas, 87% of consumers, wandered around other brands. At the end of the survey, the results read that 29% of consumers remained loyalists after visiting other brands. The remaining 58% of consumers converted into switchers. Major brands found 42 percent of loyalists.

Linking consideration and progress 

A buyer’s journey begins from awareness, leading to considering and then the purchase, i.e. the decision phase. So, in order to be knowledgeable of your buyer’s phase, you need to be in regular contact with them. Use a targeted consumer data list to establish business coherence with your prospects to measure your brand value. You can study which brand has been immediately considered by the prospects in initial stage of consideration in comparison to other brands. Eventually, you will know which product or service offered by that brand is mostly considered for purchase. We then divided that consideration measure by the brand’s market share and multiplied it by 100.

Customer growth indicator (CGI) is a metric which studies which brand commands frequent and immediate consideration. Depending on the growth of a brand’s share the pace of its progress in the E-Commerce section becomes clearer. So how does CGI calculate a brand’s growth rate? It will see whether a there has been a complete 60% to 80% of difference in the sales rate between the previous purchase and the recent one. So, the sales growth can be co-related with CGI. This helps a company in deciding upon improving its brand strategy for achieving better brand health.

Better marketing strategies to improve consideration 

To be able to gain consideration in the initial stage means that your potential shoppers have acknowledged the value added to your brand rather than just being aware of it. In such a situation, you can be assured that your shoppers have sensed the uniqueness in the benefits your products and services have to offer. Their buying journey can suggest how your brand has been able to engage them. Previously, while,  most companies would spend a lot on television advertising, search engines and social media have made advertising both cost-and time-effective. 

Re-segmentation of consumer lists depending on targets 

Earning consumer loyalty is the beginning, and being able to maintain that is a process. This process is known as loyalty-based marketing. This type of marketing considers a specific list of high-value consumers. Hence, high expenditure is required to contain them. So, shoppers who might not have engaged with the brand before cannot be included in this list. The initial consideration growth strategy may work in case of new prospects. But already once shoppers need to be placed in the loyalists list. 

If a past experience with a brand has been positive for a consumer, but he or she stopped buying after a while, they are known as ‘lapsed customers’. They are considered as highly potential consumers. The previous interaction with a brand makes a lot of difference in a consumer’s present buying preferences, taken place no matter how long back. So, if there has been no repurchases happening from their end, as a marketer you would need to analyze the scenarios possible:
  •  Better by your competitors,
  • Consumers’ habits or lifestyles may have changed,
  • The emotional connect may have evaporated over time, etc.

Sometimes, few consumers will not be able to understand the objective behind your brand, so they will not bother to get back to the several lines of products and services offered by you. At other times, an earlier experience with another brand offering similar products may not have been good. This experience will bring wrath to your brand too, because of the product in concern. So, it is important that you offer a wide range of products or services. As they are not business decision makers, who will stick to their decision of buying a specific line of products, they might also want to check out other offers by you. Creating unique experience for ‘had almost left’ consumers through an advertisement of another category of products is a wise move. Just like Disney, being a world famous entertainment firm has its cruise service too. Its CGI measure shows above-average progress in its sales.

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