Conversion Customer Optimisation

5 years of growth ahead

- Roger Martin Fagg, Economist, Q4 update 2015

We're all ready to grow

3 trends we're all navigating

New competition

Anything anywhere

Service transparency

If you can't find a way to give them what they want, where they want it and in a way that they value, someone else can.

"Customer experience will be more important than price by 2020"

We manage 40 million customer experiences each year.

We believe that the best way to help you achieve your goals is to help your customers achieve theirs.

YOU

CUSTOMER

3 methodologies from under the hood

Decision-making

Memory design

Customer behaviour

Marketing has never been more accountable.

You can be sure about one thing in 2020.

You will still be selling to people.

12 million feelings - Over 3 years - Global dataset

Our needs as people won't change.

Neither will the way we make decisions.

Decision-making

Memory design

Customer behaviour

#1

Simplify decision making

Sensory > Emotional > Cognitive

Sensory

Sensory > Emotional > Cognitive

Emotional

Sensory > Emotional > Cognitive

Cognitive

Title Text

Your brain is made of two systems.

System one is fast, intuitive and effortless.

Do you prefer dogs or cats?

Which one is Kiki and which one is Bouba?

Title Text

A.

B.

Bouba

Kiki

Across cultures people choose this...

Kiki > Teeth > Sharp

Bouba > _____? > Round

What is 8,992 x 19.86?

Welcome to system two.

Wherever possible, we prefer to use system one

How does this effect how we judge price?

It depends on the level of uncertainty.

How much should a next-generation watch cost?

$17,000?

Seems steep but now $349 looks reasonable.

This heuristic (mental short cut) is called anchoring.

But, the big number doesn't need to be a price.

+38%

VS. Baseline

Numbers with more syllables feel bigger.

Fifty Six Pounds

£55.99

Fifty Five Pounds Ninety Nine

1

2

3

4

5

6

7

1

2

3

4

£56

VS.

Even increasing the price can increase sales.

+14%

VS. Baseline

Could I make decisions easier for customers?

The

Effect

Number of decisions

Liklihood of doing what we want

Could I remove any decisions for customers?

3 Questions to ask your teams

What decisions are we asking customers to make?
What decisions could we simplify for system one?
What decisions could we remove?

Decision-making

Memory design

Customer behaviour

#2

Design Customer Memories

"80% of the companies believe they provide superior services, only 8% of the customers agree."

Seven Things You Need to Know About Marketing in The 21st Century. World Business, Bain & Company, 2006. Sample 362 Firms.

Which moment does my brand own?

CX mapping

Peak-end theory

What was the standout moment?

Arrival?

Course 3?

Course 5?

Course 9?

It was the 45 minutes I spent on hold.

Book

Arrive

Eat

Leave

How can I design more powerful memories?

Where is the expectation line?
What do I want our peak to be?
How strong is our ending?

Decision-making

Memory design

Customer behaviour

#3

Focus

On

Behaviour

Do I organise by channels or customers' challenges?

Keep it simple.

Find.

How do you make it easier to find you when they're looking?

Inspire.

How do you inspire people to want your product / service?

Lead.

How do you lead more customers through a promise to a purchase?

Engage.

How do you engage customers to become loyal advocates?

( + ) x x = £

Increase volume Reduce cost

Increase reach Reduce cost

Increase conversion

Reduce CPA

Increase CLV

Increase referral

How do I implement FILE?

Create ownership for each segment
Force collaboration through cross-department KPIs
Assess opportunities in the FILE context

Decision-making

Memory design

Customer behaviour

What's in your toolbox?

"We don't make money when we sell things, we make money by helping people make great decisions".

- Jeff Bezos, Amazon CEO

B2B H2H B2C

YOU

CUSTOMER

Thank you

Driver #36 / luke@cabstudios.co.uk