22 Emotional Drivers That Influence Consumer Buying Behavior

In 1956 a book written by Victor Schwab described forty driver based emotions which we as people want and that cause us to act. That was over 50 years ago and would you believe after all that time, some things never change?

It comes down to this. No matter how sophisticated our technology is, no matter how much we evolve, there are a number of basic needs and wants we all long for as people. Whether they make us feel complete, happy, fulfilled, comfortable, or any other combination of feelings, these emotional drivers often become the foundation for our actions.

As I see it, in the simplest form consumers buy to fulfill either a need or want. Needing and wanting, although slightly similar, are actually quite different if you look at the true emotional driver behind the word.

Consumers that buy based on need are typically filling a void for something that is a necessity rather than anything else. Needing something usually indicates more than a desire. It represents a functional reason why they must buy.

For example, a consumer needs to buy a new tire for their car when the current tire has gone flat. This is a need—the car will not run properly without the tire. Sure, they would rather spend their money on a want (like a vacation or heated seats) yet the problem with the tire causes them to buy based on need first.

Wanting however is different and is often based on desire. Consumers who buy based on want are usually buying with leisure in mind (whether they know it or not.) Wanting often indicates a “non-need” yet something that will make their life easier or more enjoyable.

For example, a consumer who adds heated seats to their car is buying based on want not need. Having heated seats in a car makes the ride much more enjoyable on those cold commuter days yet it does not necessarily fulfill a functional role (the car will still run without heated seats.) The consumer is buying based on a want that will add comfort to their driving experience.

In some cases, having heated seats might make a driver feel as though they have gained some status in life. Not all cars have heated seats, and to add that could be seen as higher class.

Knowing some of what drives consumer emotions can help us better write product descriptions which speak to them. Considering how their emotions drive their buying habits, we can develop a list of product benefits which address the various areas.

Having said that, here are a few of Schwab’s drivers that I think might be particularly beneficial for consumer (B2C) type marketing.

People want to gain:
Health
Self-confidence
Time
Improved appearance
Comfort
Leisure
Increased enjoyment

They want to save:
Time
Discomfort
Risks
Money
Worry
Embarrassment
Doubts

They want to be:
Efficient
Up-to-date
“First” in things
Proud of their possessions
Influential over others (as seen in the submission of product ratings)

They want to:
Express their personalities
Appreciate beauty
Improve themselves generally

Consider these when writing your next product description and aim to develop a benefit list which addresses those you feel fit your product type.

Unexpected Customer Appreciation Hits the Spot

Today I went to the post office to check the mailbox and found a nice albeit unexpected surprise waiting for me.

Let me briefly set the stage. I write and contribute a number of monthly articles for both online and offline publishers and have been doing this for sometime now. One of those online publishers EzineArticles.com knows a little something about customer appreciation.

I get to the post office and along with the other mail I find a small square box with the Ezine Articles logo on the outside. My curiosity is piqued by now and I’m wondering what I ordered?

I open the box and to my surprise I see a nice coffee mug, a bag of coffee, and a note thanking me for being a part of the community and contributing to Ezine Articles.

Ecommerce store owners take note—this type of pro-active customer interaction works! I’m not saying you have to send free gifts to all your customers, but I have said in previous posts that a simple and unexpected hand written note or “bonus” here and there won’t hurt. It builds loyal customers not to mention happy customers.

Not that I needed it to keep writing for them, but it certainly cemented my relationship with Ezine Articles.

Do you reward or surprise your customers? If so how? If not, why? Part of customer retention is keeping your current customers happy. What would happen if you sent an unexpected gift to your current top customers? I’m sure the impact of that small gesture would reach far beyond what you think.

Just look at this case, EzineArticles.com probably had no intention of getting mentioned for their efforts. But their simple gesture of appreciation did just that.

Thanks guys!

Using Google Site Search to Improve Your Adwords Campaigns

I touched upon site search quite a while back in a previous post of mine titled How to Read Your Visitors Minds with 100% Accuracy. In that post I went into detail on how you can use site search to understand what your customers want.

I found this video from the folks over at Google and think it’s a nice extension to that post. The video takes the concept I presented earlier a step further and applies that to improving your pay per click advertising conversion.

Now, I’m not saying that this method is the best way to go to improve your ROAS (Return on Advertising Spend). It’s a nice way of researching and gathering more information about what keywords you might want to consider (or combinations thereof) but don’t use it as the end all be all.

For example, in the video we see that one of the top search queries recorded was “shirt”. I would never buy a word like this alone as it is too broad—even if you do sell shirts. I would consider (if you are not already doing it) however, bidding on something like “blue short sleeved oxford shirt” (as an example).

I believe that using site search as a research tool for your business is extremely smart. It opens the doors to your customers mindset. I saying this, I also think it can come in handy for determining how you might want to consider expanding your current paid search campaigns. Just be careful you do your homework after you gather the data to ensure the words you choose provide the best opportunity at achieving a positive ROI.

A Good Example of an E-Commerce Retailer Using Facebook

1-800-Flowers.com received a lot of praise recently for being the first e-commerce retailer to set up shop on Facebook.com. Using a few very simple techniques, you too can follow 1-800-Flowers.com’s lead.

When you first visit 1-800-Flowers’ Facebook Page (http://www.facebook.com/1800flowers) you’re immediately shown a coupon code while being asked if you’d like to become a fan. What works about this technique is that you’re not too overwhelmed by all of the “flair’ on the main wall or Fan page. You can chose not to become a fan and instead skip to the Wall.

The Wall. Using simple social media strategies, the folks at 1-800-Flowers have engaged their customers by responding to their posts and making their “Fans” feel appreciated. It’s a win-win situation for the e-retailer when you have Fans paying you a compliment and in turn show them your appreciation. Aside from a few simple notations about their URL and Twitter address, most of the work on page is done by the fans.

The Info Page. The Info page for 1-800-Flowers.com is careful not to be too boastful with their product which is a welcome sight to most consumers. A little information can go a long way and 1-800-Flowers does a good job telling you who they are (in case you didn’t know already), what their mission and products are as well as other social media outlets you can find them.

The Storefront.
What has put 1-800-Flowers.com on the map for their Facebook experiment is the storefront they’ve “opened” on Facebook. Using the coupon code you obtained when you first came to the site, you can shop 1-800-Flowers.com’s inventory without ever having to leave the site. Should you enjoy your shopping experience, you can head back over to the Wall/Fan Page and post a short update about your positive experience.

Without spending a lot of money, 1-800-Flowers has created a lot of buzz for their site and their Facebook store. While operating a store on Facebook may be a little more complex, setting up a Facebook Fan Page — using 1-800-Flowers.com as an example — shouldn’t take you more than 10-20 minutes (depending on how adept a Facebook user you are).

Have you set up a Facebook Fan Page for your site? Leave us your URL and we’ll take a look at it and perhaps contact you for a Facebook Fan Page close up!

Your Current Customers Hold the Key to Bigger Profits

If you want a sure way of increasing profits you should start looking inside your business. Shifting your sales focus from attracting new customers to enticing your proven customers to buy again is one way to increase your sales dramatically.

I’m not saying you should stop looking for new customers—not at all. However, it makes sense that your ideal prospect is one that has already converted – in other words, one of your current customers. We can also say with good certainty that the cost to generate a sale from acquiring new customers is higher than the cost of generating a sale from current customers.

Why? Because you have already spent the initial investment to gain your current customer and if retained properly, your investment to sell to them again should be far less. In other words, you put more revenue in your pocket from the sale to a current customer because the expense to persuade them to buy is less than the investment needed to win a new customer. This is how you build profit in a company.

The 80/20 Rule

The 80/20 Rule has foundations in economics and states that roughly 80 percent of your outcomes come from 20 percent of your inputs. Or in other words, 20 percent of your current customers account for 80 percent of your revenues.

Although the rule was proven using statistical analysis by a man named Pareto, they are not hard rules set in concrete and not every company will be like this. The ratio won’t be exactly 80/20, but chances are if you look at it closely, you’ll find striking similarities in your findings.

Wikipedia says this about the 80/20 rule:

The principle was suggested by management thinker Joseph M. Juran. It was named after the Italian economist Vilfredo Pareto, who observed that 80% of income in Italy was received by 20% of the Italian population. The assumption is that most of the results in any situation are determined by a small number of causes.

What does this mean for your business?

Well if it is true that 80 percent of your revenues come from 20 percent of your customers then it would be wise to invest in finding out whom that 20 percent is and make it a point to get them to buy again from you. Your bottom line should see a nice bump each time these current customers repeat purchase and the cost to get them to do so will be next to nothing.

This brings me to my final point. Each customer holds a value to your company beyond the initial sale.
Jim Rohn once said “One good customer well taken care of could be more valuable than $10,000 worth of advertising.” What you do when you keep customers happy is build what is called Lifetime Value, and knowing what it means to your business is critical to building profits.

Customer Lifetime Value

The lifetime value (LTV) of a customer can be defined as the total amount an average customer will spend with your store over the period of time that they are your customer.

It is important to know your customers’ lifetime value so that you can make informed decisions about your marketing costs, budget, and customer acquisition strategies.

Wikipedia defines customer lifetime value as:

In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) and a new concept of “customer life cycle management” is the present value of the future cash flows attributed to the customer relationship. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales.

For example, if your customers’ lifetime value is $400 and it cost you $50 to acquire that customer then that customer is considered to be profitable ($400 LTV – $50 CPA = $350 Profit) and obtaining similar customers would be wise.

Taking that example one step further, if your average customer purchased a product worth $40 ten times from you then their lifetime value would be $400. If it cost you $50 to acquire this customer then the customer is still considered to be profitable even though you spent more to acquire them than the average revenue generated from one sale ($400 LTV – $50 CPA = $350 Profit.)

You build lifetime value by nurturing your current customer base, listening to their needs, and delivering high quality customer service among other things.

Here are 3 ways you can increase your customer lifetime value.

1. Personalize the customer relationship & build rapport.
2. Make yourself available and answer their questions.
3. Deliver a monthly email follow up to improve communication and retention.

In Summary

Building a successful ecommerce business—or any business for that matter, requires the ability to retain customers and foster loyalty. Profitability in ecommerce is found through customer loyalty. The 80/20 rule holds that 20 percent of your current customers provide 80 percent of your business—you need to find out who those 20 percent are and cater to their every need. Lifetime value increases by developing a retention program that nurtures the relationship between you and your customer.

Paying careful attention to these elements will help you build a more profitable and sustainable ecommerce business.

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