The+Power+of+Why Understanding+why+our+customers+say+one+thing+ - PowerPoint PPT Presentation

The+Power+of+Why Understanding+why+our+customers+say+one+thing+ then+do+another Steven&Byrne&//&Katharina&Wittgens //&Innovation&Bubble

Why$is$better$customer$insight$needed? We$are$not$as$evolved$as$we$like$to$think$we$are 2

Why$is$better$customer$insight$needed? 3

Why$is$better$customer$insight$needed? If$it$ain’t broke,$don’t$fix$it 4

Why$is$better$customer$insight$needed? Build*to*Rent:*Shooting*fish*in*a*barrel? Currently*less*than*1%*of*the*total*private*rental*sector,*the*number* of*BTR*units*will*bloom*to*1.7m*at*maturity*? mostly*concentrated* around*key*urban*centres and*somewhat*identikit*in*offer. Availability*of*land*at*feasible*prices*is*making*the*margin*of*success* and*failure*very*thin. Long*term*stable*returns*are*dependent*on*people*happily*renting* into*40s*/*50s*/*60s*,*yet*there*is*scant*evidence*to**suggest*changing* attitudes*towards*renting*later*in*life. Weaker*labour market*and*drop*in*sterling*as*a*result*of*Brexit*fallout* could*make*BTR’s**on*average*11%*higher*price*point*out*of*reach*for* a*customer*base*still*dominated*by*young*professionals 5

Why$is$better$customer$insight$needed? How$might$we$cost$a$Cinema$room? " Typical*cost*of*building*and*servicing* cinema*room*for*year?* " Lost*yield*from*building*another* apartment*in*its*place? " Cost*of*an*ineffective*marketing* campaign*centred around*amenity? " Opportunity*cost*in*tenant*churn*or* lost*acquisition*from*not*investing*in* an*alternate,*more*distinctive* emotional*driver* 6

How$do$we$make$decisions?

How$do$we$make$decisions? “95%%OF%PURCHASING%DECISIONS%ARE% SUBCONSCIOUS” Harvard&Business&Professor,&Gerald&Zaltman&2018 8

How$do$we$make$decisions? Conscious$Mind Will%Power Long%Term%Memory Logical%Thinking Critical%Thinking 5% Non3conscious$Mind Belief Emotions Habits Values Protective%Reactions Long%Term%Memory 95% Imagination Intuition 9

How$do$we$make$decisions? What'people'say'is'rarely'what'they'actually'do. 10

How$do$we$make$decisions? Our$ customers$ have$three$ identities 11

How$do$we$make$decisions? The& avoidant$ Our$ The& ideal$self The& actual$self self is&who&we& audiences$ is&who&we& is&who&we&are& know&is&not& have$three$ strive&to&be really acceptable&to& identities be 12

Key$questions$the$BTR$sector$wants$to$have$answered What%triggers%do%you%need%to%activate%amongst%prospects%to%drive%initial%enquiries? What%nudges%are%the%most%successful%when%looking%to%close%in%the%sales%process?% What%messaging%is%key%around%contract%renewal? What%kinds%of%amenity%are%really%going%to%get%used%and%be%valued? How%might%we%change%the%perception%of%renting%for%resident%couples%as%they%approach%their% mid<late%30s? What%is%the%appropriate%level%of%personalization%&%interaction%between%customers%and% development%teams? How%do%we%best%try%and%bring%customers%together%so%they%have%reason%to%stay%longer? 13

How$do$we$get$to$the$non$conscious$drivers$of$behaviour?

How$do$we$get$to$the$non$conscious$drivers$of$behaviour? EYES POSTURE Psychological:interviews:explained HANDS LEGS 15

How$do$we$get$to$the$non$conscious$drivers$of$behaviour? Our&psychologists&allow&respondents&to&tell&their&story&without&too&much&priming&and&asking& questions.& This&reveals&which&topics&respondents&focus&on&and&hence&the&most&important&areas&of&interest.& This&style&prevents&leading&respondents&into&artificial&territory&that&is&meaningless&to&them&and& would&only&provide&inaccurate&and&misleading&insights They&also&cross&analyse non=verbal&behaviour with&respondents&verbal&stories.&It’s&very&difficult& for&humans&to&hide&the&‘truth’&in&their&body&language.&This&allows&psychologists&to&identify&if& respondents&are&telling&the&truth&or&not&and&where&to&push&against&in&order&to&discover&the&actual& truth&of&the&matter Working&with&images,&analogies&and&metaphors,&which&are&a&powerful&tools&to&extract&non= conscious&responses&as&they&are&ambiguous&and&respondents&cannot&guess&the&‘correct’&answer& and&it&eradicates&response&bias&seen&in&traditional&methods& Mood&boards&give&insight&into&respondents’&emotional&states&about&a&given&topic&and&thus&more& non=conscious&/&powerful&data&on&behavioural drivers Word&associations&– respondents&are&asked&to&spontaneously&and&quickly&provide&associations& with&a&given&image&or&concept 16

How$has$this$approach$driven$advantage$in$other$sectors?

How$has$this$approach$driven$advantage$in$other$sectors? What'drives'someone’s' decision'making'when' they’re'booking'a'holiday? 18

KATHARINA(PUT(OPTIONS(HERE(FOR(AUDIENCE

How$has$this$approach$driven$advantage$in$other$sectors? 20

How$has$this$approach$driven$advantage$in$other$sectors? 6%%increase%in%market%growth%&%11%%reduction%in%churn%(DB) Repeated%booking%increase%by%12%%&%8%%uplift%in%sales%within% the%first%6%months(Royal%Carribean Cruise) 51%%i crease%in%sales%in%the%US%and%21%%increase%in%sales%in%the% UK%within%the%first%3%months%(TB) Record%Second%Quarter%Revenue%after%Innovationbubble’s insights%(Alimera Sciences) 21

Unpacking)Community

Unpacking)Community Video&goes&here 23

Unpacking)Community Horizon(Pilot(Research(centered(on(ethnography( Video(diaries( Depth(interviews( Participants(are(asked(to(record(a(fortnightly(video(diary(in( Exploration(and(verification(of(video(diary(findings(from(a( response(to(a(supplied(set(of(questions. non:conscious(perspective. The(responses(will(be(reviewed(as(we(go(with(interesting( Conducted(with(a(selection(of(the(participants(on(a(live,( responses(influencing(the(next(fortnight’s(set(of(questions. one(on(one(basis(via(skype Videos(will(be(shot(on(phone(or(webcam(but(with( sufficient(guidance(to(ensure(we(have(good(quality(data( coming(through.( Companies(included(in(the(research(consortium(have( option(to(“insert’(specific(questions(as(project(develops 24

Unpacking)Community # What('community'(really(means(to(different(customer( groups?(Is(it(more(important(to(some(than(others? # What(initiatives,(products(and(services(enhance(a(sense(of( 'community'(# and(what(detract(from(it? # What(‘intangibles’(should(we(really(looking(to(measure(to( drive(strong(life(time(value(from(customers(and(what(are(the( best(ways(to(tap(this(data? # How(strongly(do(typical(industry(communications(centred on(community(resonate(with(different(customer(groups? # How(we(might(look(to(evolve(segmentation(for(the(future( from(a(more(useful(psychographic(perspective? # What(might(be(stronger(preference(drivers(for(us(to(invest(in( than(a(sense(of(community? 25

Unpacking)Community LEAD'GENERATION:' Distinctive'brand'strategy'&'marketing'communications SALES'CONVERSION:''Tailoring'sales'conversations'to'maximize'pipeline'conversion CUSTOMER'CHURN:' Timely,'valuable'and'relevant'CRM'communications' AMENITY'INVESTMENT:' Amenity'design'that'avoids'white'elephants TALENT'ACQUISITION'&'TRAINING:'Mitigating'the'cost'of'a'failed'hires 26

Thanks'to'your'conscious'and'non'conscious'brain'for' their'attention