7
FACEBOOK.COM/OGILVY MANAGE HOW TO CONSUMERS’ EXPECTATIONS JORDAN BERKOWITZ EXECUTIVE DIRECTOR, CREATIVE TECHNOLOGY OGILVY & MATHER FACEBOOK.COM/OGILVY

How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

Embed Size (px)

Citation preview

Page 1: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

F A C E B O O K . C O M / O G I L V Y

MANAGEHOW TO

CONSUMERS’EXPECTATIONS

J O R D A N B E R K O W I T ZE X E C U T I V E D I R E C T O R , C R E A T I V E T E C H N O L O G YO G I L V Y & M A T H E R

F A C E B O O K . C O M / O G I L V Y

Page 2: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

THE FIRST THING TO KNOW ABOUT expectations is that there are biological reasons we behave the way we do. One force at work is something called negativity bias—the tendency for humans

to overstress the negative even in predominantly positive circumstances. Ever get a report card with four As and one C? Which mark did you dwell on? That links back to prehistoric times, when people had to assume every time they went out to the watering hole that they could be attacked by a saber-toothed tiger, and thus habitually came to expect the worst.

F A C E B O O K . C O M / O G I L V Y

Page 3: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

EXPECTATIONS EVOLVE. Think about flying; 20 years ago, waiting in line for a ticket was the accepted norm. Now you take care of that on your mobile phone before arriving at the airport, and the idea of having to stand in a queue is unthinkable.

Therefore, you have three choices:

RAISING EXPECTATIONS If there’s a chance you won’t meet or exceed them, this might not be a great idea.

MAINTAINING EXPECTATIONS In some cases this presents an opportunity, especially if customer expectations can be used to highlight a contrast. For example: What would happen if a new feature were released with little or no fanfare? If the quality of the product experience increases while expectations remain the same, you should see an impact.

LOWERING EXPECTATIONS This feels counterintuitive, but dampening expectations can be a very effective tool, assuming it’s used strategically and with a smart, creative approach.

Whichever route you choose, here is our formula:

EXPERIENCE – EXPECTATION = IMPACT

F A C E B O O K . C O M / O G I L V Y

Page 4: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

MODEL CUSTOMER EXPECTATIONS YOU MAY HAVE QUALITATIVE data that helps form a picture of what your customers expect. Or you may need to evolve the questions you’re asking your customers to better gauge what they expect. In either case, the closer you can get to the actual moment—that is, right in the thick of the customer journey—the more accurate the response will be.

On the quantitative side, it’s equally interesting and challenging. We know that people express their expectations in the decisions they make and their subsequent levels of satisfaction. Can this be identified in raw data? When people abandon an online shopping cart, is there a link between their expectations and the experience? We have some interesting hypotheses, and the quest for answers is already beginning to reflect that there may be ways of quantifying expectations.

F A C E B O O K . C O M / O G I L V Y

Page 5: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

MAP THE EXPERIENCE ONCE YOU HAVE SOME MEASURE of customer expectations, mapping them against the customer journey is relatively straightforward. Much can be gleaned from this exercise. What frequently becomes apparent is that marketing efforts are misaligned with opportunities relative to our customers’ expectations. Frequently we see marketers failing to focus on areas with extremely low customer expectations. Our model suggests that these points have the largest potential to drive a measurable impact.

BE DYNAMIC HAVING A FULLER VIEW of expectations across the customer journey allows us to decide what to do, and when to do it—understanding that the by-product of a lowered expectation at one stage is that we might need to over-deliver on experience at another. In the same way that expectations change over time, so must our strategies. Expectation dynamics are just that: dynamic. This is meant to be an ongoing and iterative process that informs and helps drive the final two stages of this plan.

F A C E B O O K . C O M / O G I L V Y

Page 6: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

COMMUNICATE ACCORDINGLY WE SEE COMMUNICATIONS as an expectations-management tool. When used wisely, you should be able to actively shift customer expectations to drive business impact. But this isn’t solely a communications job. Expectations don’t respect silos, so every aspect of the business—especially the product and services arms—has to be on board with this.

BE HOLISTIC ABOUT IT EXPECTATIONS SHOULD ALSO INFORM the products, services, and innovations you produce. Yes, communications can be used to manage expectations in the near-term. But when our businesses react to expectations in the same way communications do, marketers have significantly more leverage and tools to increase the effectiveness of their work.

F A C E B O O K . C O M / O G I L V Y

Page 7: How to Manage Consumers' Expectations by Jordan Berkowitz, Executive Director, Creative Technology O&M

DON’T EXPECT ALL OF THIS TO HAPPEN OVERNIGHT. Some of this you can take action on immediately, while other steps require more time and investment. Data needs to be curated. Processes need to evolve. Teams need to learn to leverage new tools. Take the time to dial it in, and it will pay off.

F A C E B O O K . C O M / O G I L V Y