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Why using behavioural research can provide greater returns on your marketing spend

For many years businesses have segmented their audiences based on socio-demographics, or firmographics where they are interested in companies. These are very useful and powerful ways to slice and dice data to then formulate engagement tactics to meet the assumed needs of these groups based on what this data tells us.

For example, how much a person earns will give you an idea if they could afford your product, or if they’re a business, having greater than a certain turnover may indicate they are in the market to buy your service.

But what about going one step further? What if you were to gain deeper insight into the actual behaviours of your potential customers? Just because someone can afford your product doesn’t mean they’ll purchase it. But if you add another dimension to this data in the form of personal attitudes and behaviours, this could create a much richer picture to aid your product development, messaging and targeting – and ultimately increase revenue into your business.

For example, within the health industry, gyms can target women who are 25-40 who are likely to earn over £25,000, within a given area, with a one week free trial promotion focused on weight loss. It is more than likely this will generate some sort of return in terms of uptake, particularly around New Year. But there is opportunity for these gyms to truly understand more behavioural traits of these ladies such as:

  • the main drivers behind why women join a gym in the first place
  • the feelings that these women have before joining a gym
  • what has prevented them from joining a gym in the past
  • what behaviours they have before, during and after a session at the gym
  • the key reasons for not being able to attend a session
  • the drivers behind cancelling memberships

With this more detailed dimension, gyms can reshape their service, re-define their messaging and introduce promotional marketing to existing members to prevent churn – therefore extending the lifetime value of their customers!

Behavioural research is much more complex than research of opinions, as it requires an approach which allows the researcher to get under the skin of the audience and to identify thoughts, feelings, emotions and the actions of an individual as a consequence of these. These are usually more deeply rooted and not easy to uncover using traditional surveys.

Our expert team utilise a range of methodologies that allow us to pull together a rich picture of your customer and stakeholder types. We use qualitative approaches for collecting this type of insight that could include a mix of the following methodologies:

There are many reasons why you should consider behavioural research – here are our top five:

  1. It will provide you with another dimension and help you better understand your audience
  2. It will help form more engaging communications resulting in better returns  
  3. Products and services can be enhanced to better meet the needs of your customers
  4. You can identify weak spots in your service to address and therefore increase your customer lifetime values
  5. You will gain a competitive edge

Contact the Explain team today to find out more about the best approach for you. Please feel free to save and share our accompanying infographic.

behaviour-research-infographic-v1


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Knowing, segmenting and talking to your audience in their language, improves engagement

Information overload increases by the day, so how do organisations become smarter in order to engage with their stakeholders such as customers, prospective customers, users of a public service, employees…

Email boxes are now crammed packed with notifications of the latest offers, on-demand TV allows viewers to skip past ad breaks, we have internet streamed music with preference built play lists with no ad interruptions, there are text message notifications to overcome the issue of more and more people not opening their mail, we have internet adverts that follow you around online …. those who are responsible for engagement have a difficult task at hand to understand which channels and what messages are right to yield the desired results.

A one size fits all approach didn’t work as effectively as a targeted communication campaign 10 years ago, so now with all of the rapid and major changes in how we communicate, this approach has very little impact.

Segmentation is more important than ever and is applied and used by large retailers extremely effectively due to most transactions taking  place online and data collected as part of the process at point of sales –  this is known as ‘big data’.

It’s not all about demographics either.   We can’t assume all those 65 plus have the same preferences e.g. silver surfers Vs. traditionalists. There is huge diversity within demographic groups now and without behavioural segmentation to give a true understanding of what makes your audience tick, your communication will likely fall on deaf ears.

Getting our hands on this data can be extremely difficult.  If your services aren’t all about online purchasing and point of sales, this makes it even trickier.  It’s not uncommon for organisations particularly within the utility, public sector, healthcare, housing and education sectors to have collated large databases of various stakeholders including customers, but have great difficulty in segmenting it to communicate more effectively in order to improve engagement.

Market research is fundamental in understanding key groups and to start the process of an effective segmentation strategy  based on behaviours and preferences, allowing us to talk the same language with the right benefit messages using the right channels to our intended audience.

Our team work with a range of organisations across sectors, particularly where segmentation isn’t as straight forward. Our mix of research, marketing and data specialists will build a programme of research and segmentation strategies to help your business become more effective and smarter in engaging with stakeholders.

We have produced an infographic for anyone thinking about how they can better understand their audience:

Segmentation infographic