The customer acquisition challenge
Motivating customers to switch their suppliers can be particularly challenging in some sectors, like retail banking, energy, telecoms and media for example. This increases acquisition costs, and therefore the time a customer needs to be retained to become profitable to the business.
However, relatively low levels of switching or churn does not mean that customers are delighted with their existing provider, because many are not. Rather, this inertia can be better explained by understanding what creates and causes customer resistance to change suppliers.
In what ways is your marketing, and how prospects perceive the value in your proposition, either motivating prospects or creating resistance?
Are you getting the full picture?
Ask a customer why they are put off by something and you’re unlikely to get the real answer. In fact, the customer may say they find a proposition favourable while subconsciously they are resistant to it.
It’s not that customers purposefully give misleading answers during standard research sessions; it’s just that what creates customer resistance, or how they perceive value, is largely outside the awareness or understanding of the customers themselves.
Standard research methods assume that purchase decisions are a conscious choice based on rational preferences. In other words, as customers, we not only think we know what motivates us and what creates resistance, but we also think we can explain why.
However, scientific evidence now shows that up to 95% of our decisions are made in the subconscious part of our mind. The root causes of customer resistance and inertia also lie here, with consumers using automated screening processes to select, ignore and avoid marketing and propositions that do not resonate.
That’s why asking customers to give logical reasons to logical questions is unlikely to provide any breakthrough answers or any new understanding/ideas on how to strengthen current campaigns aimed at encouraging switching.
But, if customers even have difficulty explaining the real reasons for their likes and dislikes, what motivates them and what creates resistance, how can we get an insight into this high value area?
The answer is clear: to gain a true understanding of the resistance, motivations, preferences of target prospects (as well as existing customers) we need a way to tap into the subconscious mind of customers and prospects.
The good news is, thanks to latest breakthroughs in psychology, for the first time we can let you see directly into this world that up until now has been hidden. Not only can we help you develop a deep understanding of what resonates well and what creates resistance and quantify these levels, we can also discover how best to navigate and break them down.
These are powerful insights which will have a profound impact on any customer acquisition strategies and marketing effectiveness.
Introducing the innovative Colour Word Association (CWA) technique
The CWA technique (CWA) is an established and patented psychological tool that has been used extensively in the fields of education, sports psychology, HR and personal development. Now it is being applied to measure underlying customer attitudes, perceptions and resistance.
The technique is innovative not just in its ability to tap into the subconscious, but how it translates that information into a usable form from which actions can be developed. The technique not only uncovers the true sources of customer resistance but can also measure their respective strengths.
By using the CWA technique researchers can side-step the usual pre-defined questionnaires, tick boxes and focus groups which can lead customers’ thinking and rely on customers rationalising their responses. Instead these are replaced by a proven scientific method that allows customers to express their subconscious feelings, attitudes and emotions about words, products, brands, images etc. through colour – unclouded by conscious reasoning.
Special algorithms decode this data to gather accurate insights into customers’ real feelings, motivations, emotions and thought-processes that are often hidden, even to the respondents themselves There’s no need for the respondent to explain, predict or analyse their answers and no danger of the participant being influenced by external factors.
The data also has predictive power, and can also show how these perceptions are likely to change. This is particularly important because how people feel today drives their behaviour tomorrow.
Finally, the data capture process is online, making the process both quick, flexible and cost-effective.
To reduce customer resistance to switching, we can help you to:
- Measure and profile levels of customer resistance in your market sector
- Measure current levels of resistance towards your marketing, brand and proposition
- Identify what elements are hitting most resistance, and amongst which type of customer profile
- Recommend measures to help reduce consumer resistance
- Identify effective content to help you create messages with more appeal and resonance
- Anticipate the likely level and reasons for consumer resistance in relation to new products you have introduced or intend to introduce
EXTRA: The scope can be extended to analyse customer resistance by sub-groups, as well as investigate strong emotive issues which impact customer acquisition or retention such as trust, or brand perceptions
As a result, you will increase the impact of your customer acquisition strategy by:
- Better understanding the sources and levels of customer resistance in your market
- Knowing how your brand and current proposition are performing against areas of resistance
- Identifying the measures that could have an immediate impact in reducing customer resistance
- Having the means to test and improve the impact of future campaigns, or modify your propositions
- Deep insights to develop a strategy to improve perceptions of trust in your brand/proposition