Consumers & Communication

Consumer Decision Process

1. Problem recognition

2. Information Search

3. Evaluation of alternatives

4. Purchase

5. Post purchase satisfaction or dissatisfaction

Loyalty Loop

Lemon & Verhoef

Buy What We Have Model

• Most companies still interact with customers only episodically, after customer identify needs and seek out products

• Four effective connected strategies propose a move beyond traditional customer interaction + new business model

Connected Strategies

1. Respond to Desire

2. Curated offering

3. Coach Behavior

4. Automatic Execution

Respond to Desire

1. Customer expresses what they want and when

2. Fast and efficient response to orders

3. Works best WHEN customer is knowledgable

4. Works best FOR customer who doesnt want to share too much data and likes to be in control

Curated Offering

1. Offers tailored menu of options

2. Makes good personalized recommendations

3. works best WHEN uncurated set of options is large and overwhelming

4. works best FOR customers dont mind sharing some data but want final say

Coach Behavior

1. Nudge customer to act to obtain goal

2. Understanding customer needs, ability to gather and interpret rich data

3. Works best WHEN Inertia and biases keep customers from achieving what is best for them

4. Works best FOR customers who dont mind sharing data and getting suggestions

Automatic execution

1. Fills customers need without asking

2. Monitoring customers and translating incoming data into action

3. Works best WHEN customer behavior is predictable and costs of mistakes are small

4. Works best FOR customers who dont mind sharing data and having decisions made for them