CONSUMER BEHAVIOUR METRICS

CONSUMER BEHAVIOUR METRICS: 

CONSUMER BEHAVIOUR METRICS PRESENTED BY: Vivek .

INTRODUCTION……: 

INTRODUCTION…… Much of the time and many of the resources which are allocated by the companies in marketing are devoted to answering the deceptively simple, yet highly elusive question of “why did a customer, non-customer or prospect customer indicate that they were intending some action.

Slide 3: 

CB metrics helps to address these questions and it is based on methodologies for identifying and quantifying consumer attitudes, beliefs, and opinions which reflect their underlying needs and wants and relating these insights to CB. The findings of CB are utilized by companies in forecasting expected future consumer response to various marketing initiatives.

Slide 4: 

THE CONSUMER METRIC IS USEFUL FOR: a) PLANNING: Identify where CE-marketing efforts should take place; which of the communities that the target customers participate in are the most engaging? Specify the way in which target customers engage, or want to engage, with the company or offering. b) MEASURING EFFECTIVENESS: Measure how successful CE-marketing efforts have been at engaging target customers.

Slide 5: 

All marketing practices, including internet Marketing include measuring the effectiveness of various media along the Customer Engagement Cycle, as consumers travel from awareness to Purchase. Often the use of CVP Analysis factors into strategy decisions, including budgets and media placement

CONTINUED…..: 

CONTINUED….. The CB-metric is synthetic and integrates a number of variables. The World Federation of Advertisers calls it 'consumer-centric holistic measurement'. The following items have all been proposed as components of a CB-metric:

TYPES OF METRICS USED: 

TYPES OF METRICS USED 1. ROOT METRICS Duration of visit Frequency of visit (returning to the site directly – through a URL or bookmark - or indirectly). % repeat visits Whether recently visited Depth of visit (% of site visited) Sales Lifetime value

Slide 8: 

2. ACTION METRICS RSS feed subscriptions Bookmarks, tags, ratings Viewing of high-value or medium-value content (as valued from the organization's point-of-view). 'Depth' of visit can be combined with this variable. Inquiries Providing personal information Downloads Customer reviews Comments: their quality is another indicator of the degree of engagement. Ratio between posts and comments plus trackbacks.

COMPONENTS OF CB METRICS: 

COMPONENTS OF CB METRICS Flexible metric vs. Industry standard : According to some, CB "measurement has never been one size fits-all" but should vary according to industry, organisation, business goal etc. On the other hand, corporate clients and even agencies also desire some type of solid index. Internal metrics could, perhaps, be developed in addition to a comparative, industry-wide one

CONTINUED……..: 

CONTINUED…….. COMPONENT MEASURABILITY : Most of the components of a CE-metric face problems of measurement. Duration of visit for example suffers from (a) failing to capture the most engaged users who like to peruse RSS feeds; (b) inaccuracy arising from leaving a tab open during breaks, stopping to converse with co-workers, etc.

Slide 11: 

LENGTH OF MEASUREMENT : For how long must the various CE components be measured if CE is to reflect loyalty rather than short-term, faddish engagement?

INTRODUCTION….: 

INTRODUCTION…. Measuring customer behavior is a crucial part of any business. Knowing what the consumer wants and how he acts is vital in terms of product design, and later marketing. There are different ways that you can measure consumer behavior, depending on what area you are interested. Regularly conducting market research will allow you to get to know your customers, which will mean you take them into account when making business decisions. This will greatly improve your business, and your profits.

MEASURING CB METRICS: 

MEASURING CB METRICS 1. BY SURVEY: Conduct a survey to find consumer behavior. There are two main types of consumer survey: qualitative or quantitative. Qualitative studies involve asking a few consumers a lot of in-depth questions. Quantitative studies involve asking lots of consumers a few questions. The latter would be better for determining the market for a totally new product, since you only need to find out if people would buy it. If you are amending a product, or making one similar, a qualitative study would allow you to gain more detailed information.

2. BY OBSERVATION: 

2. BY OBSERVATION Observe consumers going about their business. You will need to get permission from the store or the shopping mall you are observing. By watching consumers, you can discern a great deal of information about their behavior. Information such as optimum height and location of a product and store layout is all gleaned from observational consumer behavior measures.

Slide 15: 

3. RAW DATA ANALYSIS Use raw data to provide a measurement tool. For example, if you have released a product, see if this is bought regularly in conjunction with another product. If it is, then you can assume that you have a similar demographic to the second product. Use the raw data to determine what time of day, or weather, or time of year people buy your product. All of this gives information on consumer behavior.

Slide 16: 

4. SUBJECTIVE AND OBJECTIVE Separate objective and subjective data. If you are leading an interview or survey, you may be influencing people's answers. By gaining as much data as possible, you will be able to make objective judgments, which are free from bias, whether inadvertent or not.

Slide 17: 

5. CLEAR QUESTION: Have a clear question in mind. Consumer behavior measurements and any form of market research functions best when a specific question is kept in mind. Essentially, you should measure behavior based on the answer to one question, be it broad "What is our consumer demographic?" or focused "Should our price be $4.99 or $4.50?"

Slide 18: 

6. DIRECT METHODOLOGIES: The most straight forward methodology for determining what is important to consumers is simply to directly to ask the why question. This is the protocol typically utilized in qualitative research where consumers are asked to explain and to provide a rationale for the attitudes, beliefs and opinions that they have.

Slide 19: 

The conclusions of this methodology are drawn based on the frequency, sequence or pattern of references. This method suffers the following drawbacks such as the inability or the lack of desire of some individuals to communicate openly and accurately what is important to them. Another limitation of this method is that the results must rely on the skills of experts.

7. INDIRECT METHODOLOGIES: 

7. INDIRECT METHODOLOGIES Indirect measurement and analytic methodologies are designed to reduce the potential social and self reflective introspective response biases inherent indirect questioning approaches. In this approach consumers are asked to execute a relatively simple attribution task identifying to what extent a product or services possesses or might a possess a particular attribute, deliver an identified benefit associated with a specific claim of a product.

Slide 21: 

In all the above stated techniques consumer responses are analyzed and prioritized related to the behavior the consumers reflect. While all the four methods have been accepted and aid marketers in understanding what is important to the consumer from the data that they collect.