Bad economic times cause customers to change their buying psychology. Factors that previously motivated them have become less important, replaced by other motivators. The bank marketer who recognizes and adapts to these changes will succeed in this current economic environment, according to Tom Dougherty, CEO and Senior Strategist for Stealing Share, New York, NY.
Dougherty addressed bankers the Webcast, The Economic Impact of Persuasive Human Communication in the Financial Services Industry, hosted by OnsiteConference, Inc., a privately held research marketing firm located in Tampa, Florida.
Stealing Share digs into the mindsets of target audiences scientifically so their client’s brand and corporate identity are aligned with the most emotionally intense beliefs in the market, before competitors adapt.
Stealing Share has identified eight key human motivators. According to Dougherty, as economic times change from good to bad, these motivators change. The marketing messages that were successful during good times are no longer effective during economic times of fear and uncertainty.
“The eight motivators have been found to be cross-cultural, and come after the human needs for food, shelter and health,” noted Dougherty. The eight motivators are:
Affirmation - People seek affirmation in their ability to make the correct choice. “Am I correct in this?” Without it there is inaction.
Leadership - Who is responsible for leadership in the buying decision?
Familiarity - People are more likely to purchase the familiar, so top of the mind awareness is imperative. We know that Bud is the King of Beers because Budweiser told us so.
Comfort - We generally seek comfort; moving toward the known.
Change - Always a barrier. People avoid it. Change is about control.
Seeking Community – People prefer to change with a group. If 9 out of 10 dentists use Crest, that helps motivate those considering changing to Crest.
Desire - Marketers must understand what people want, and satisfy those desires.
Scope - The range of choices that the market is willing to consider. Choices can give us the comfort of control, but too many choices can be confusing.
Dougherty explained how these eight motivators change buying decisions during a bad economic climate.
Affirmation - During good times we look for the best thing. In tough times we look for the right thing. The risk of being wrong becomes greater. “Many Boeing Dreamliner orders have been canceled in the past year as buyers looked for the right purchase instead of the best one,” stated Dougherty.
Leadership - During tough times, people are willing to give up leadership in decision making. They want to be led to the right decision.
Familiarity - The familiar is safe. Advantage goes to the market leader.
Comfort - Same as above. In good times, comfort is everywhere.
Change - Change is always a barrier, but in bad times it causes fear.
Seeking Community - People seek community during bad times.
Desire - What I want is replaced by what I need.
Scope - When times are good I want unlimited choices. Bad times call for more precision. We should cull the offering to help consumers decide.
Extensive research by Stealing Share reveals some compelling evidence for the importance of recognizing and adapting to these changing factors. Dougherty presented graphs showing customers’ emotional response to the eight motivators as we move from good to bad economic times. “The rapidity and intensity of the changes vary, but the first to change is always comfort,” said Dougherty. “Growth in these economic times is an extraordinary task. Bankers who maintain the status quo, are simply giving the market to the market leader, but a messages that adapts to the eight motivators will be heard by customers and prospects.”
Posted by Creston Harris at 2/16/2009 5:14 PM
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Stealing Share is a brand development firm that arms its clients with the tools they need to drive competitive advantages. We conduct research and provide corporate strategy, positioning, training and brand design with one goal in mind: To steal market share for our clients.
Our experts are all about the science of persuasion, and have proven it with brands and companies all across the world. We uncover the fears and belief systems of your target audiences so your brand can align itself with them and create preference. It’s how we steal market share.
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