Prologue: From Marketing 0 to Marketing 0
Figure 5.1 The Shifting Customer Path in a Connected World
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Management and Cost Accounting Bhimani
| Figure 5.1 The Shifting Customer Path in a Connected World In the aware phase, customers are passively exposed to a long list of brands from past experience, marketing communications, and/or the advocacy of others. This is the gateway to the entire customer path. A customer who has previous experience with a brand will likely be able to recall and recognize the brand. Advertising driven by companies and word of mouth by other customers is also a major source of brand awareness. Aware of several brands, customers then process all the messages they are exposed to—creating short-term memory or amplifying long-term memory— and become attracted only to a short list of brands. This is the appeal phase. Memorable brands—with wow factors—are more likely to enter and even go higher on the short list. In highly competitive industries where brands are abundant and products are commoditized (e.g., the consumer packaged goods categories), brand appeal must be stronger. Some customers respond to brand appeal more than others. Youth, for example, are usually among the first to respond. That is why they are more likely to be early adopters of new products. Prompted by their curiosity, customers usually follow up by actively researching the brands they are attracted to for more information from friends and family, from the media, and/or directly from the brands. This is the ask stage. Customers can either call friends for advice or evaluate the short list themselves. When they decide to research some brands further, they might search online product reviews. They might also contact call centers and talk to sales agents for more information. They might also compare prices and even try out products at stores. Today, the ask is further complicated by the integration of the digital (online) and physical (offline) worlds. As customers browse through products in-store, they might also search for information on their mobiles. Since customers may go to multiple channels for more information, companies need to have a presence at least in the most popular channels. At the ask stage, the customer path changes from individual to social. Decisions will be made based on what customers take away from the conversation with others. The brand appeal needs confirmation from others to allow the path to continue. Brands need to trigger the right amount of customer curiosity. When the curiosity level is too low, it means that the brand appeal, although existent, is rather low. But when the curiosity level is too high and customers are “forced” to ask too many questions, customers are confused about the initial message they encounter. If they are convinced by further information in the ask stage, customers will decide to act. It is important to remember that the desired customer actions are not limited to purchase actions. After purchasing a particular brand, customers interact more deeply through consumption and usage as well as post-purchase services. Brands need to engage customers and make sure that their total ownership and usage experience is positive and memorable. When customers have problems and complaints, brands need to pay attention and make sure the customers receive solutions. Over time, customers may develop a sense of strong loyalty to the brand, as reflected in retention, repurchase, and ultimately advocacy to others. This is the advocate stage. Active advocates spontaneously recommend brands they love without being asked. They tell positive stories to others and become evangelists. But most loyal advocates are passive and dormant. They need to be prompted by either a query or a negative advocacy. When they do encounter such a prompt, they feel obliged to recommend and defend the brands they love. Since loyal advocates take risks to recommend certain brands, they are also more likely to buy more of those brands in the future. (See Figure 5.2 .) |