leverage purchase types to win more customers for less

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Leverage Purchase Types to

Win More Customers For Less

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Presenters

Anita CampbellCEO

Raghav MathurVice President, Strategy & Business Development

Andrea ParkerSenior Content Marketing Manager

Moderator

godigitalmarketing.com

http://godigitalmarketing.com/

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#PurchaseTypes

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The customer journey has changed

Discover

Buy

ExploreEngage

ShoponlineView

banner ad

Watch tutorial

Purchase through

call center

blog

Compare/shop online

Post reviews

Purchase via mobile

View YouTube ad

Like on Facebook

ReadReviews

Purchasein store

Watch YouTube

ad

Download app

Watch video on mobile

View print ad

Traditional Customer Lifecycle

Digital Customer Lifecycle



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




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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In this complicated purchasing environment, what can you do?



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




Purchase Types

Your Audience

Application

Agenda




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




The Four Purchase Types


Business differentiators

Price Incentives

Review/Referrals

Reliability/Loyalty

Location

Content/Info/Educational



Sensible PurchaseBuying 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




Routine PurchaseBuying 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





Impulse PurchaseBuying 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






Complex PurchaseBuying 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



4. Price incentives




• 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?




Purchase Types

Your Audience

Application



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How can purchase types help you identify your target audience?


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






• 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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Ask the right questions


How often do people purchase from your business?

Examples:

• Women buy new mascara every 2-3 months. This is a routine purchase.





Examples:


• 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.





Examples:


• 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.




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.




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.




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.




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.




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 groceriesRoutine






Consider these examples that are clearly not impulse purchases

Buying a new house Complex

Buying a new dishwasher Sensible

Buying groceriesRoutine

Buying a candy bar at the checkout counterImpulse

But…




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




Identify the owners of a decision

• Many small businesses focus on price, but it’s not always about price




Identify the owners of a decision

• Many small businesses focus on price, but it’s not always about price


TOP TIP: Ask the people on your staff for the most common customer questions



Purchase Types

Your Audience

Application



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Mobile gives everyone access to information



People are always on, always connectedBusinesses 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




It will look different than other businesses.

Focus on YOUR customer’s purchase journey

Awareness Consideration Purchase Retention Advocacy





Focus on what questions they ask when researching your product. • When do they research your product?• How do they find your business?







Focus on what questions they ask when researching your product. • When do they research your product?• How do they find your business?


of smartphone users turn to their device for ideas while doing a task. 91%


There are so many places to meet them…



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How do you market to your purchase type?


Sensible Purchase

Be found online Identify and promote what makes your business unique

Establish a system for reputation management

and reviews

1 2 3




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




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




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




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




• 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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Q & A


Additional Resources

BlogOrigin of Purchase Types

ResearchHoliday Purchasing Habits: A Digital Advantage for Local Businesses

E-BookReach the Summit: 4 Strategies to Boost PPC Performance

BlogA chat with Andrea Parker about Purchase Types



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Thank you!