using behavioral modeling to engage customers throughout the decision-making process
DESCRIPTION
Presented at Integrated Marketing Week 2014 Richard Warnaka, manager of UX, Cabela's Shane Johnston, lead experience planner, EffectiveUI As retailers look to understand their customers, they often turn to tools like market segmentation and personas to better understand the different types of user groups within their target market. But this approach often overlooks the different stages a consumer goes through in making purchasing decisions. Behavioral Modeling seeks to construct a universal representation of behavior: information is collected on the context, social structure, previous experience and emotion of a behavior. This session explores why this approach was invaluable for Cabela’s, where – working together with EffectiveUI – the company uncovered the different stages its customers went through as they shopped. By understanding these various phases of decision-making, the company identified some new opportunities to provide meaningful engagement during the process to help guide customers’ decisions. During the session, we will cover: • How to conduct effective behavioral research • Turning behavioral models into actionable design • Key lessons learned throughout the processTRANSCRIPT
Behavioral Modeling: Engaging Customers Throughout the Decision-Making Process
Rich WarnakaShane Johnston
@IM_WEEK#IMWeek
INTRODUCTIONS
Shane JohnstonLead Researcher
Effective UI
Rich WarnakaUX Manager
Cabela’s
OVERVIEW
1 Background and Context2 Why Behavior?3 Behavioral Modeling in Practice
CABELA’S
Founded in 1961
Cabela’s is the world’s largest direct marketer of hunting, fishing, camping, and related outdoor merchandise.
CABELA’S : Context
Growth of the direct online channel.Total Revenue = $3.6 billionDirect Sales through Cabelas.com and Cabelas.ca = $1 billion (%27.7)
Multi-channel experience.55 Retail Stores throughout North America.
Data rich – helps explain what happens.Cabela’s CLUB = 1.7 million card holders
Little understanding of why it happens.
CABELA’S : Intelligence Gaps
The Persona Problem
Market Segment CentricStagnant ArtifactsFluff Factor - ConjectureRequires Organizational Buy-In
BehavioralFlexibleFactualIntuitive
BEHAVIOR & INSIGHT
Humans are not (completely) rational actors.
BEHAVIOR & INSIGHT
Behavioral Determinants
HeuristicsEither learned or hard-coded ‘rules of thumb’.
Previous ExperienceTacit knowledge gained through practical experience.
Emotional AffectThe valence, responsiveness to stimuli, and motivational intensity.
ContextThe environmental and situational conditions.
BEHAVIOR & INSIGHT
Behavioral Modeling
A strategic framework for identifying behavioral commonality across customer segments.
IN PRACTICE
Modeling Objectives
1 Model common behavioral patterns for a given condition (shopping).2 Map behavioral determinants and customer touchpoints against the model.3 Identify gaps in the customer experience.
IN PRACTICE
The Current Model
IN PRACTICE
Behavioral ModelShopping
IN PRACTICE
Components
PatternsIdentifiable regularity in customer behavior.
ThresholdsThe point at which a small change in conditions transitions aperson to another stage or model in the shopping/hunting lifecycle.
ContextsThe environmental and situational conditions (including social structures).
TouchpointsPoints of interaction with the company/brand.
RolesPatterns of behavior across the model.
IN PRACTICE
Key Learnings
1 Shopping is not a linear process.2 Design experiences that support our customer’s behaviors.3 Segmentation alone provides a one dimensional view of
customers.4 We should recognize that there are different roles throughout the
process.
IN PRACTICE
Paradigm Shift
The customer does not live for your company, your company lives for the customer.
IN PRACTICE
Use within Cabela’s
Foundational for more traditional types of research, analysis, and strategic efforts:1Journey Mapping of specific experiences.2Focus for ethnographic and contextual inquiry research efforts.3Provides filter for priorities and site architecture.
CONCLUSION
Thanks!