TRUE CUSTOMER CONVERSION MODEL

CUSTOMER

prospect

prospectprospect

customerconversion

changeofcustomerstateofmindorbehaviour

Whichmodelisright?

E.K.Strong

• awareness A• interest I• desire D• acBon A

DaveMcClure

•  aqiusiBonA•  acBvaBonA•  returnR•  revenueR•  referalR

notAIDA

E.K.Strong

• awareness A• interest I• desire D• acBon A

Whatisaproblem?

•  Awareness,Interests,Desirearestatesofcustomer’smind…

...andmeasuringthemisquesBonableastheyare

fluctuaBng

•  ItnottruecustomermakesjustonefinalacBon.

neitherAARRR

Whatisaproblem? DaveMcClure

•  aqiusiBonA•  acBvaBonA•  returnR•  revenueR•  referalR

Itismeasurable,but..•  …itdoesnotapplytoevery

product.Whilepeoplemaketheirdecisionssameway,always.

neitherAARRR

Whatisaproblem? DaveMcClure

• aqiusiBonA• acBvaBonA• returnR• revenueR• referralR

Itaddressesbehavioursthusitismeasurable,but..

•  WhytheseparBcular5steps?

•  AcquisiBon≠acBonofcustomer

•  AcBvaBonisnotspecificenough

•  Referral=0%,conversion=0%

Whatisrightapproach?

1st

Peoplehavingajobtodo,hireproductstodothejobforthem.

ClaytonM.Christensen

behaviorsof(hiring)customers

Arrive

Accept

Apply

InterestedCustomervisitsaplace,wheregoodorserviceispresented.

Customerhiresit,ifheacceptsitsvalue.

Customerappliesittodoajobforhim.

2nd

CustomersrequiremoBvaBontoact.

mo5va5on=expecta5onofvalue

behavioralpsychology

customermoBvaBon

Arrive

Accept

Apply

Customerexpectstolearnrealvalue.

Customerexpectstogetaprooveofvalue.

Customerexpectstogetvalue.

valuepercepBon

achievablecosts

requiredresults

desiredrewards

•  VALUE is true if all 3 elements are TRUE •  sequence is irrelevant

ExpectancyTheoryV.Vroom

acBonsproovingvalueacceptace

Arrive

AcceptREWORD

AcceptRESULTS

AcceptCOSTS

Apply

byCHOOSING

byCONFIRMING

byBUYING

3rd

CurrentCustomersare

asourceofinvoluntaryreferralthatmakesreachingProspectspossible.

conclusionfromEricRies

3typesofinvoluntaryreferral

EricRies

PaidadverBsing

• CustomersfinanceitaccepBngprofitableprice

Meto

• Prospectsfollowexampleofcurrentusers

Viral

• Customersneedtoinvolveotherstoconsumeaproduct

involuntaryreferral

Arrive

Accept

Apply

involuntary

REFERR

AL

3-5A’scustomerconversionmodel

3A’s 5A’s

3-5A’sCUSTOMERCONVERSIONMODELbyKRZYSZTOFCEMBROWSKIislicensedunderaCreaBveCommonsAdribuBons

–ShareAlike4.0InternaBonalLicese.

5A’s onlineshoes’store

Arrive

AcceptREWORD

AcceptCOSTS

AcceptRESULTS

Apply

Customervisitsanonlinestoreadractedbygivenpromiseofvalue.

Customerselectsshoes.

Customerbuysthem.

Shoesaredeliveredtocustomerandheacceptsresultsbynotreturningthem.

Customerbuysshoesintheonlinestore,repeatedly.

3A’s potatochips

Arrive

AcceptREWORD

AcceptCOSTS

AcceptRESULTS

Apply

CustomerwanBngasnacknoBcepotatochipsatfoodstore.

Customerchooseandpickupabagofchips.UNMEASURED

Customerbuysthem.

Customereatsthem.UNMEASURED

Customerpurchases(andeatsthem),repeatedly.

5A’s acar .

Arrive

AcceptREWORD

AcceptRESULTS

AcceptCOSTS

Apply

Customervisitsproducer’sonlinesiteadractedbyadverBsing.

Customerconfigurscaronlineandordersatestdrive.

Customerteststhecarandconfirmshis/heracceptanceofresults.

Customerbuysthecar.

Customerusethecar,repeatedly.

KRZYSZTOFCEMBROWSKI

3-5A’swillhelpyou:

•  learncompeBBvenessofyourproduct

•  discoverwhatyouneedtoimprove