Anita Campbell, CEO of Small Business Trends, and Raghav Mathur, Vice President of Strategy & Business Development at G/O Digital, discuss how to market based on what behaviors your customers exhibit prior to actually making a purchase.
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The customer journey has changed
Discover
Buy
ExploreEngage
Shop
onlineView
banner ad
Watch
tutorial
Purchase
through call
center
blog
Compare/sho
p online
Post
reviews
Purchase
via mobile
View YouTube ad
Like on
Facebook
Read
Reviews
Purchase
in store
Watch
YouTube
ad
Download
app
Watch video on
mobile
View print ad
Traditional Customer Lifecycle Digital Customer Lifecycle
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Everything starts with
a need
of shoppers
research online
before buying81%
Retailing Today, 2014
Using search
engines
Comparing
product
prices
Reading user
reviews
Visiting
multiple online
stores
Reading
product
information
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Technology gives the consumer the
information they need
of online consumers look up more
information now versus a few
years ago
Google, 2015
82%
of smartphone users use a
search engine when looking for a
local business
100M+
hours of “how-to” content have
been watched on YouTube so far
this year
65%
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Agenda
Learn about purchase types and how they
relate to your business
Understand how purchase types help you
identify your target audience
Use purchase behaviors to guide your
marketing strategy
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What is a “Purchase Type?”
• Purchase types relate to the
kinds of purchases that happen
at your business, regardless of
who that person is
• You may have more than one
purchase type for your
business
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The Four Purchase Types
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Business differentiators
Price Incentives
Review/Referrals
Reliability/Loyalty
Location
Content/Info/Educational
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Sensible Purchase
Buying Cycle: Medium-long
Top Influencers:
This purchase requires advance research and trust between the
buyer and your business.
Examples: Choosing a dentist or landscaper
1. Reviews and referrals
2. Business differentiators
3. Loyalty
4. Price incentives
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Routine Purchase
Buying Cycle: Short
Top Influencers:
Routine purchases are everyday items that a buyer can find at a
number of stores, but they shop at your store because they know
you’re a respectable, dependable business.
Examples: Buying toothpaste, grocery shopping
1. Loyalty
2. Location
3. Price incentives
4. Business differentiators
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Impulse Purchase
Buying Cycle: Short
Top Influencers:
Impulse Purchases are need- or want-based and provide instant
gratification.
Examples: Consumer’s fridge breaks and they need a new one
quickly, shopping for new clothes
1. Price incentives
2. Location
3. Reviews and referrals
4. Business differentiators
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Complex Purchase
Buying Cycle: Long
Top Influencers:
Complex purchases require a lot of information for the consumer in
advance. This is most likely a large purchase, and they want to
make sure they’re making the right decision.
Examples: Buying a new fridge in a non-emergency situation,
buying a new car, shopping for a house
1. Content/educational
information
2. Business differentiators
3. Reviews and referrals
4. Price incentives
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• You need to
understand your
product or service
• You need to
understand your
audience
How do you determine what kinds of
purchases happen at your business?
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You want to work backwards
• A way of reverse-engineering
identification of your target
audience
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You want to work backwards
• A way of reverse-engineering
identification of your target
audience
• By knowing what kind of
purchases happen at your
business, you can more
effectively market to consumers
on the front end
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You want to work backwards
• A way of reverse-engineering
identification of your target
audience
• By knowing what kind of
purchases happen at your
business, you can more
effectively market to consumers
on the front end
• Going backwards leads you to
your ideal audience
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How often do people purchase from
your business?
Examples:
• Women buy new mascara every 2-3 months. This is a routine
purchase.
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How often do people purchase from
your business?
Examples:
• Women buy new mascara every 2-3 months. This is a routine
purchase.
• People looking to buy a new car only do this every 5-10 years or so
(depending on the person). This is a complex purchase.
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How often do people purchase from
your business?
Examples:
• Women buy new mascara every 2-3 months. This is a routine
purchase.
• People looking to buy a new car only do this every 5-10 years or so
(depending on the person). This is a complex purchase.
• Purchasing new, more stylish winter boots. This is an impulse
purchase if they already have boots that are functional, but it can
also be a sensible purchase if new boots are necessary.
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Do you often have repeat
customers?
Depending on what kind of purchase happens most at your business,
you’ll want to nurture repeat customers differently.
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Do you often have repeat
customers?
Depending on what kind of purchase happens most at your business,
you’ll want to nurture repeat customers differently.
Examples
• Impulse purchase – you want to be known as the best place to find a good
deal.
• Routine purchase – you want to be known for your customer service and
dependability.
• Sensible purchase – you want to be known for your stellar reviews and
service.
• Complex purchase – you want to be known for what makes you different or
better than your competitors.
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Do people often research your
product versus a competitor’s
before buying?
People research competitors’ products and services in different ways
depending on what kind of purchase they’re making.
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Do people often research your
product versus a competitor’s
before buying?
People research competitors’ products and services in different ways
depending on what kind of purchase they’re making.
Examples:
• Routine purchase – a customer is more likely to compare products
while in-store (think about buying a tube of toothpaste), so your
marketing should focus on bringing them to the store as opposed to
marketing to undercut your competitors.
• Sensible purchase – a customer will definitely research your
competitors before calling or booking an appointment online. They
need to known how and why you are better than your competition.
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Do people buy your product or
service on a whim?
If your answer is yes, you more than likely have impulse purchases
happening at your business.
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Do people buy your product or
service on a whim?
If your answer is yes, you more than likely have impulse purchases
happening at your business.
Consider these examples that are clearly not impulse purchases
Buying a
new house
Complex
Buying a new
dishwasher
Sensible
Buying
groceries
Routine
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Do people buy your product or
service on a whim?
If your answer is yes, you more than likely have impulse purchases
happening at your business.
Consider these examples that are clearly not impulse purchases
Buying a
new house
Complex
Buying a new
dishwasher
Sensible
Buying
groceries
Routine
Buying a candy bar at the
checkout counter
Impulse
But…
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Why do people choose your product
or service over a competitor’s?
Why are you different? What makes you better?
Examples
• A landscaping service that offers free estimates
• A private school that teaches the International Baccalaureate
program
• A local pet store that offers free delivery on all orders
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Identify the owners of a decision
• Many small businesses
focus on price, but it’s not
always about price
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Identify the owners of a decision
• Many small businesses
focus on price, but it’s not
always about price
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TOP TIP: Ask the people
on your staff for the most
common customer
questions
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People are always on, always connected
Businesses have to be there for the:
I-want-to-know
moments
I-want-to-do
moments
I-want-to-buy
moments
I-want-to-go
moments
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It will look different than other businesses.
Focus on YOUR customer’s
purchase journey
Awareness Consideration Purchase Retention Advocacy
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It will look different than other businesses.
Focus on what questions they ask when researching your
product.
• When do they research your product?
• How do they find your business?
Focus on YOUR customer’s
purchase journey
Awareness Consideration Purchase Retention Advocacy
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It will look different than other businesses.
Focus on what questions they ask when researching your
product.
• When do they research your product?
• How do they find your business?
Focus on YOUR customer’s
purchase journey
of smartphone users turn to their device for ideas
while doing a task.91%
Awareness Consideration Purchase Retention Advocacy
There are so many places to meet them…
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Sensible Purchase
Be found online Identify and promote
what makes your
business unique
Establish a system for
reputation management and
reviews
1 2 3
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Routine Purchase
Stay top of mind Continually grow your
customer base
through email
Differentiate your business
by creating a two-way
relationship
1 2 3
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Impulse Purchase
Define your target
audience and get in
front of them
Keep messaging
relevant for
a personal touch
Craft messaging
that inspires action
1 2 3
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Complex Purchase
Create a value
proposition
Craft content and
messaging around
your customers’ long
buying journey
Make your business easy to
find — anywhere, anytime
1 2 3
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Learn about the four purchase types and
how they relate to your business
Understand how purchase types help you
identify your target audience
Apply purchase behaviors in your
marketing strategy
Recap
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• Start figuring out your purchase type
• Develop a survey for customers to see how they go
about purchasing at your business
• Talk to your staff about what they’re seeing and hearing
from customers
• Watch our video for more information on purchase
types
What can you do tomorrow?
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Additional Resources
Blog
Origin of Purchase Types
Research
Holiday Purchasing Habits: A Digital Advantage for Local
Businesses
E-Book
Reach the Summit: 4 Strategies to Boost PPC
Performance
Blog
A chat with Andrea Parker about Purchase Types
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Speaks to complex purchases, where a business differentiator is crucial for people picking you over a competitor. What makes you special?
Michael Douglas as Gordon Gecko in the original Wall Street movie. This was one of the first commercially-sold mobile phones. It’s comically enormous.
1. Be found online
Claim your maps listings across search engines, including Google, Yahoo, Bing, Yelp and Apple Maps
2. Establish a system for reputation management and reviews
Note all the places where customers can review or give public feedback about your business (Facebook, Google+, Twitter, Yelp, industry-specific sites)
Create a template for messaging on each network
3. Identify and promote what makes your business unique
Create a value proposition and include the messaging in all external communications.
1. Stay top of mind
Tailor your messaging to specific audience segments so your business is relevant to their needs.
2. Differentiate your business by creating a two-way relationship
Develop email marketing and social plan that gets your message across and has an outlet to provide feedback.
Send a welcome email to new subscribers, include contact information clearly and prominently in all communications.
3. Continually grow your customer base through email
Share the benefits of your business’ rewards or loyalty programs
Speak to the need you know your customer has or will have
Become a trusted authority so new customers see you as a knowledge source, not just a product or service provider.
1. Define your target audience and get in front of them
Identify their gender, age range, ideal location or service area and income range.
2. Craft messaging that inspires action
For indulgent purchases: Create urgency (i.e. Today Only – 20% off!), showcase value, keep your offer realistic
For emergency purchases: Include how you will fix their problem quickly and highlight your expertise to provide assurance (i.e. We’ve fixed more than 1,000 roofs!)
3. Keep it relevant for a personal touch
Keep your messaging relevant to the time of year (i.e. Drop the weight from Thanksgiving dinner with a 10-class starter pack!)
For step 2, make sure to do your research about purchases in your industry. Example: A 15 percent off deal is valued higher than a buy one, get one free offer in the retail industry.
1. Create a value proposition
Define what you do, who you do it for, why there is a need for what you do and how your business is unique in your industry.
2. Make it easy to find — anywhere, anytime
Make sure your website is optimized across devices by entering your URL into Google’s Mobile-Friendly Test.
Search for your business in online directories to see where it’s featured and what information is available. If necessary, notify system administrators of inaccuracies and corrections.
3. Craft content and messaging around your customers’ long buying journey
Search engine optimization has shifted to topics rather than specific keywords, so build authority (and higher search rank) for your page by creating content aligned to three main topics.