Session 4

The New Science of Customer Emotions

Monday, 11 April 2016

Jacky Mussry
Emotional connection with customers can give huge pay off to the company
 Companies Connect with Customer’s Emotion

Major Bank Leading Household Nation-wide Apparel

Cleaners Retailer

Introduce a credit Launching product Reoriented its

card for millenials and messaging to merchandising and
maximize emotional customer experience
connection to its most emotionally
connected customers
70% 40%
3X
Losses Double-digit
Users among the New Account Sales growth accelerated
growth
segement to threefold

Companies should pursue emotional connections as a science and a strategy

The Value of Emotional Connection
 Emotional Connection

Not all company born with

the emotional DNA!
Customers is considered to be emotionally connected with a
brand when it aligns with their motivations and helps them fulfill
deep, often unconcious, desires.
 Emotional Motivators

To be connected with customer emotionally, a research create a lexicon of

“emotional motivators” and, using big data analytics, linked them to specific
profitable behaviour

Emotional motivators, a better gauge of

customers’ future value to a firm than any other
metric, including brand awareness, customer
satisfaction, and can be an important new source
of growth and profitability

Identifying and measuring emotional motivator is

complicated!
Emotional Motivators: The Research Insights

1 Emotional motivators vary by category and brand

2 Emotional motivators vary across customer segments

Emotional motivators for a given brand or industry vary

3 with a person’s position in the customer journey.

Emotional-connection-driven growth opportunities exist

4 across the customer experience, not just in traditional
brand positioning and advertising
High-Impact Emotional Motivators
Brands can leverage this motivator by helping
I am inspired by a desire to:
customers

Stand out from the crowd Project a unique social identity; be seen as special

Percieved the future as better than past; have a positive mental picture of
Have confidence in the future what’s to come
Feel that life measures up to expectation and that balance has been
Enjoy a sense of well-being achieved; seek a stress-free state without conflicts or threats

Feel a sense of freedom Act independently. Without obligations or restrictions

Experience visceral, overwhelming pleasures and excitement; participate

Feel a sense of thrill in exciting, fun events
Have an affiliation with people they relate to or aspire to be like; feel part
Feel a sense of belonging of a group
Sustain the belief that the environment is sacred; take action to improve
Protect the environment their surroundings
Fulfill a desire for going self-improvement; live up to their ideal self-
Be the person I want to be image
Believe that what they have today will be there tomorrow; pursue goals
Feel secure and dreams without worry
Feel that they lead meaningful lives; find worth that goes beyond
Succeed in life financial or socioeconomic measures
 Emotional Motivator

By identifying the most powerful emotional motivators for a given customer segment
companies can design marketing and other strategies to leverage those motivators, giving
them a new source of competitive advantage and growth.
Three Phases to Identify and Leverage Customers’
Emotional Motivators

First
Inventory your existing market research and customer
insight data

Second Analyze your best customers – those who buy and

advocate the most, are the least price-sensitive, and are the
most loyal

Third
Make the organization’s commitment to emotional
connection a key lever for growth
 A National Fashion Retailer Case
Step Action
1 • Do survey to discern how consumers related to key motivators in the category
Target Connected • Analyse to see which motivators best predicted purchase behavior
• Modeled the financial impact of building emotional connections with
Customers customers at each step on the pathway from unconnected to fully connected
• Create a blueprint for pursuing the most valuable customer opportunities.

2 • Quantify the impact of more than 40 motivators on the group’s purchasing,

spending, loyalty, and advocacy
Quantify key motivator • identify the most important category motivators—the ones that bore the
strongest relationship to purchases—and assessed the retailer’s competitive
position in each

3 • Examine every function and customer touchpoint to find ways to enhance

Optimize investments high-ROI emotional motivators
across functions  Four major investment areas into focus: stores, online and omnichannel
experiences, merchandising, and message targeting

4 • Embed relevant strategies into existing work streams

• Develop a scorecard that gives the CEO and the executive team a single-page
Systematize, measure, view of customers’ progression on the emotional-connection pathway, along
and learn with the increase or decrease in connected customers of the company and its
key competitors.