Understanding consumer purchasing patterns is important for businesses to increase customer lifetime value, improve sales funnels, and drive down marketing costs. The document discusses analyzing online and real-world data sources to understand customer needs, information searching, purchase decisions, and post-purchase behavior in order to influence purchasing through testing marketing stimuli and customer responses. It also provides examples of how brands like Amazon and Clearly Contacts effectively understand purchasing patterns to improve sales and customer experience.

1. Understanding Consumer
Purchasing Patterns
Presented by:
Tim Fung
Tuesday, 26 Feb 2013

2. Why should we be obsessed with de-coding
Consumer purchase behaviour?

3. Increasing lifetime value…
Need Information Evaluation of Purchase Post purchase
recognition search alternatives decisions behaviour
To improve long term CLV:
! Customer lifetime
! Purchase frequency
! Basket value

4. Smooth-ening funnels…
Need Information Evaluation of Purchase Post purchase
recognition search alternatives decisions behaviour
Smooth your sales funnel:
! Start conversations
! Simplest purchase process
! Enable repeat purchase

5. Driving down marketing spend…
Need Information Evaluation of Purchase Post purchase
recognition search alternatives decisions behaviour
To drive down CPA:
! Find real customers, not tyre kickers
! Increase referrals
! Identify customer “fire hoses”

6. Tracking Purchase Behaviour:
Data Sources

7. Online data sources:
on-page heat mapping, mouse and click tracking
behaviour triggered automated marketing
newsletter analytics
website and app performance
acquisition funnels, referrals
A-B testing on key-page tweaks
Quick roll out and testing of landing pages

8. Real-world data sources:
Customer accounts
Membership and loyalty
Mystery shopping
Check-ins and reviews
Real world analytics – field research

9. More data, the better:
Start a conversation:
Incentivise friendship, either by rewarding users or adding
value using data. So cold blooded!
For example, Facebook Connect can pick up:
! Location
! Likes (interests)
! Connections
….which will help you serve the best possible experience
(curated product lists, suggested services etc)

10. How to influence purchase behaviour?
Test, track, then ask why?

11. Marketing > Tech Testing Cycle
Stimuli Buyer’s black box Buyer response Reason
HYPOTHESISE TEST TRACK ASK WHY?

12. Testing example:
Airtasker conversion funnel…
(Runners are our customers)

13. Zooming in a little…

14. …and then a little further…

15. Result of this “tiny” change:
! 30x increase in customer click-throughs
! Instant 34% increase in task assignment
! Literally hundreds more people completing real-world tasks.
Tiny Change

16. …and then back to testing cycle…
Stimuli Buyer’s black box Buyer response Reason
ASK WHY?
HYPOTHESISE TEST TRACK
In our case,
Softening calls to Use VWO to A-B test Google Analytics and
customers want
action will lead more two different copy conversion metrics
to feel in charge of
people through the types on main call to showed significant
the quotation
sales funnel. action buttons. uplift with new copy.
process.
NEXT HYPOTHESIS:
Customers want to sell themselves as well as bidding on existing available work.
Meet Airtasker Stores.

17. Remember that black box?
Don’t waste time
hypothesising…
JUST DO IT!

18. Brands that understand purchase patterns:
Pretty Good…
Up-sell Email

19. Brands that understand purchase patterns:
Very good…
Very good…
Brands that understand purchase patterns:
Amazon: Cross-Sell Funnel
Cross-Sell Funnel

20. Brands that understand purchase patterns:
Scary.
Customised Sales Funnel
Best Practice
Clearly Contacts – understand offline
lifecycle
Amazon – overcome interuptions

21. Then, close your purchase loops:
Understand customer “non-purchasing patterns” too…

22. Acquiring data in the
real-world…
Field Research and Marketing:
! Mystery shopping
! Vox-pop content capturing
! In-field consumer Polling
! Observational research
! Sampling feedback loop

23. Some food for thought…
Prism Sky Labs is coming soon to the real world near you!

24. Questions?
Tim Fung
Founder and CEO
Phone: 0413 030 939
Email: tim@airtasker.com
Airtasker Pty Ltd
www.airtasker.com
Level 1, 17-19 Bridge Street
Sydney NSW 2000
AUSTRALIA