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Understanding Consumer Purchasing Patterns Presented by:
Tim Fung Tuesday, 26 Feb 2013
Why should we be obsessed with de-coding
Consumer purchase behaviour?
Need recognition
Information search
Evaluation of alternatives
Purchase decisions
Post purchase behaviour
To improve long term CLV: ! Customer lifetime ! Purchase frequency ! Basket value
Increasing lifetime value…
Need recognition
Information search
Evaluation of alternatives
Purchase decisions
Post purchase behaviour
Smooth your sales funnel: ! Start conversations ! Simplest purchase process ! Enable repeat purchase
Smooth-ening funnels…
Need recognition
Information search
Evaluation of alternatives
Purchase decisions
Post purchase behaviour
To drive down CPA: ! Find real customers, not tyre kickers ! Increase referrals ! Identify customer “fire hoses”
Driving down marketing spend…
Tracking Purchase Behaviour:
Data Sources
on-page heat mapping, mouse and click tracking behaviour triggered automated marketing newsletter analytics website and app performance acquisition funnels, referrals A-B testing on key-page tweaks Quick roll out and testing of landing pages
Online data sources:
Customer accounts Membership and loyalty Mystery shopping Check-ins and reviews Real world analytics – field research
Real-world data sources:
More data, the better:
Start a conversation: Incentivise friendship, either by rewarding users or adding value using data. So cold blooded! For example, Facebook Connect can pick up: ! Location ! Likes (interests) ! Connections ….which will help you serve the best possible experience (curated product lists, suggested services etc)
How to influence purchase behaviour?
Test, track, then ask why?
Stimuli Buyer’s black box Buyer response
HYPOTHESISE TEST TRACK ASK WHY?
Reason
Marketing > Tech Testing Cycle
(Runners are our customers)
Testing example:
Airtasker conversion funnel…
Zooming in a little…
…and then a little further…
Result of this “tiny” change:
! 30x increase in customer click-throughs
! Instant 34% increase in task assignment
! Literally hundreds more people completing real-world tasks.
Tiny Change
Stimuli Buyer’s black box Buyer response
HYPOTHESISE
Softening calls to action will lead more people through the
sales funnel.
TEST
Use VWO to A-B test two different copy
types on main call to action buttons.
TRACK
Google Analytics and conversion metrics showed significant
uplift with new copy.
ASK WHY?
In our case, customers want
to feel in charge of the quotation
process.
Reason
NEXT HYPOTHESIS: Customers want to sell themselves as well as bidding on existing available work.
Meet Airtasker Stores.
…and then back to testing cycle…
JUST DO IT!
Remember that black box?
Don’t waste time hypothesising…
Brands that understand purchase patterns:
Pretty Good…
Up-sell Email
Very good…
Brands that understand purchase patterns: Amazon: Cross-Sell Funnel
Brands that understand purchase patterns:
Very good…
Cross-Sell Funnel
Best Practice Clearly Contacts – understand offline lifecycle Amazon – overcome interuptions
Brands that understand purchase patterns:
Scary.
Customised Sales Funnel
Then, close your purchase loops:
Understand customer “non-purchasing patterns” too…
Acquiring data in the real-world… Field Research and Marketing:
! Mystery shopping
! Vox-pop content capturing
! In-field consumer Polling
! Observational research
! Sampling feedback loop
Some food for thought…
Prism Sky Labs is coming soon to the real world near you!
Questions? Tim Fung Founder and CEO Phone: 0413 030 939 Email: [email protected] Airtasker Pty Ltd
www.airtasker.com Level 1, 17-19 Bridge Street Sydney NSW 2000 AUSTRALIA
