Customer mindset key to marketing

  • By Andrew Ballard Growth Strategies
  • Wednesday, May 27, 2015 4:53pm
  • Business

Marketers do their level best to understand the demographic composition of their target markets — and they should.

But that information paints only part of the picture. For a full customer portrait, you’ll need to brush up on your customers’ mindset.

Shoppers fall into one of two categories: transactional and rational. Roy H. Williams, best-selling author of “The Wizard of Ads,” refers to them as “shopping modes.” Understanding the shopping mode, or mindset, of your customers will help drive many of your marketing decisions.

The first step is to know the traits and motivations of each category. The transactional shopper lives for today. These consumers like to research and shop many stores for the best price. Consumer Reports is directed toward this mindset. They love to negotiate and are not often loyal to a specific brand or company. Although getting the best deal is the primary concern, they do not consider their time and travel as an expense, or part of the purchase price.

A rational shopper’s motivation is in direct contrast to that of a transactional bargain hunter. Rational shoppers consider future implications and are looking for a company or person they can trust, one who is expert in their field. These shoppers are far more loyal. Rational shoppers also consider their time as a part of the purchase price, and don’t enjoy the shopping process.

Another important dynamic to consider is that transactional shoppers visit several stores before going back to one (that has the best deal) to purchase. Rational shoppers usually go straight to their favorite store or business and make their purchase. Many consumers, as with any psychological trait, have some of both tendencies to varying degrees. The same person can also be more transactional in one product category and be more rational in another. Most consumers, however, are dominant in one or the other. Spotting these tendencies only requires observation and knowing what to look for.

The challenge for marketers and sales people is that the right thing to say (or present) to a transactional shopper will rub a rational shopper the wrong way. So understanding your business’ ratio of transactional to rational shoppers will help you tweak your marketing mix. Example: If you have a 4-to-1 ratio of rational over transactional shoppers, you would focus on expertise and service attributes in positioning and presenting what you offer. Delivering on your promise would be paramount, as your rational customer base will pay more for the “trust” factor. If most of your clientele is transactional, your strategy would include frequent sales promotions and knowing what your competitors are charging. You’d be better off investing your resources in mystery shopping than service or retention programs.

Another “shopper set” is referred to the Quality, Cost, Speed triangle. While these three attributes can influence purchasing in many product categories, they tend to be more business-to-business oriented. It is advisable for those responsible for business-to-business development to qualify their prospective customers on how they would rank quality, cost and speed.

Adjusting what and how you market your product or service — based on your customers mindset — can convert more “would-be shoppers” into “satisfied customers.”

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