WHAT CUSTOMER BEHAVIORS SHOULD WE CHANGE TO GENERATE THE HIGHEST GROWTH?
BEHAVIORAL MARKETING IN A NUTSHELL:
The key idea behind the behavioral approach is to identify with precision how further growth can be achieved by changing specific customer behaviors.
Behavioral change opportunities then need to be quantified and prioritized.
Finally, companies should determine what change in mindset is needed to determine a change in behavior and what marketing actions and what messages are needed to achieve the desired objectives.
FOUR ALTERNATIVE CHANGES IN CUSTOMER BEHAVIOR GENERATE ORGANIC GROWTH:
There are 4 alternative sources of growth each company can focus on, when designing its growth strategy.
Each of them corresponds to specific customer behaviors that should be changed to achieve it. Pursuing one or the other requires totally different messages, channels and investments.
1. START USING THE CATEGORY
Induce new customers to start using products in your category, instead of substitute / adjacent categories products
2. CHANGE BRAND PREFERENCE
Induce your competitors' customers to change their brand and company preference in your favor
3. INCREASE USAGE OR PURCHASE FREQUENCY
Induce your current customers to use your brand more frequently, use more of it in each consumption occasion or stock more of your brand
4. UPSELL: HIGHER PRICE OR BETTER MIX
Convince your current customers to buy at a higher price or to upgrade their product choice within your portfolio
WE SUPPORT CLIENTS TO IDENTIFY, CHOOSE AND CAPTURE SOURCES OF GROWTH
We help companies assess the feasibility of each of these alternative avenues to growth, calculate the upside achievable and the investments required and ultimately select the approach to growth that will bring the highest returns.
We then define which customer segment should be targeted for the selected growth strategy and we determine the positioning, messages, media mix and investments required.
If pricing adjustments are required, we support our clients to assess value and price gaps and to identify the best levers to improve their pricing.
A PROCESS IN 6 STEPS:
The approach to growth-boosting programs consists of 6 consequential steps.
Each of them can constitute a stand-alone project. When performed in sequence, however, the result becomes more powerful: in fact we have consistently proven able to generate measurable growth in the companies where we have run the program.
CUSTOMER JOURNEY & SEGMENTATION
Identify leverage points in the customer journey where behavioral change should take place. Develop a predictive segmentation
SOURCES OF GROWTH & WHERE TO PLAY
Decide "where to play" in the market, based on the quantification and prioritization of sources of growth
CUSTOMER PERSONA & INSIGHTS
Discover customer insights and shifts in mindset, beliefs and attitudes that should be leveraged to induce a change in behavior
POSITIONING & CREATIVE PLATFORM
Craft a compelling and differentiated positioning and a creative idea that influences emotional response and inspires to take action
MARKETING MIX OPTIMIZATION
Understand which specific elements of the marketing mix have the highest potential to induce a change in behavior. Then optimize based on ROI
INTEGRATED COMMUNICATION PLAN
Link communication objectives to specific changes in mindset and behavior to be achieved
ACCORDING TO OUR CLIENTS, THESE PROJECTS BRING SEVERAL BENEFITS:
SYSTEMATIC AND SUSTAINED GROWTH RESULTS
- Important growth in the first 1-2 years after full implementation
- Significant impact obtained in the high majority of cases
- Results highly dependent on full translation of the strategy into marketing actions
CLEAR GUIDELINES FOR THE MARKETING DEPARTMENT
- Clear guidelines for the marketing department
- New consumer insights
- Distinctive brand positioning
- Guidelines for marketing mix choices
HIGH ROI ON MARKETING INVESTMENTS
- Significant improvement of the return on marketing investments, guaranteed by:
- Focus on the most promising segments
- Selection of messages, media and channels guided by clear behavioral objectives
CLEARER DIALOGUE WITH COLLEAGUES AND AGENCIES
- Better internal dialogue and clearer exchanges with agencies:
- Shared frameworks and language
- Clarity on objectives to be pursued and improved specificity in agency briefs