ARLINGTON, Va., May 8, 2012 /PRNewswire/ -- According to
Corporate Executive Board (CEB) (NYSE: EXBD), a leading research
and advisory services firm, the rise of new technology has
fundamentally changed the way consumers buy, providing greater
access to information and choice than ever before. Feeling
overwhelmed, consumers want support – not increased marketing
messages or "engagement" – to more quickly and easily navigate the
purchase process. Brands that help consumers simplify the purchase
journey have customers who are 86 percent more likely to purchase
their products and 115 percent more likely to recommend their brand
to others.
(Photo: http://photos.prnewswire.com/prnh/20120508/PH02417 )
In a study of 7,000 consumers and marketing executives
representing 125 consumer brands across 12 industries, CEB
identified a significant disconnect between current marketing
strategies, including customer engagement, and preferred consumer
buying behavior. While most marketers are behaving as if the
majority of consumers are open to having a relationship with their
brand, CEB found only 20 percent of consumers report being open to
such relationships. As a result, today's marketing tactics are
making customers less loyal and resulting in lost revenue for
companies.
"Our research indicates that the impact of simplifying purchase
decisions for consumers is four times stronger than the favored
marketing strategy of engagement and is the number one driver of
likelihood to buy," said Patrick Spenner, managing director at CEB.
"Too much choice and information causes customers to over-think
purchase decisions, making them more likely to change their minds
about a product, be less confident in their choice and less likely
to repurchase."
To capture customers' attention and build loyalty, companies
should invest in making the purchasing process so simple that
customers' decision-making actually becomes easier. CEB's insights
show a 20 percent increase in simplifying the decision-making
process results in a 96 percent increase in a customer's likelihood
to purchase, re-purchase or recommend a particular brand. Companies
can simplify the buying process in three important ways by helping
consumers:
- Trust Information: provide recommendations by consumer
advisors, ratings and reviews
- Navigate the Purchase Process: simplify the research
process by offering clear and streamlined brand-specific product
information targeted to each decision stage
- Weigh Comparison Options: make transparent buying guides
and brand differentiated information easily available
Executives can learn more by downloading "To Keep Your
Customers, Keep It Simple," taking CEB's Decision Simplicity Quiz,
or by visiting www.executiveboard.com/simplicity.
About Corporate Executive Board
By identifying and building on the proven best practices of the
world's best companies, Corporate Executive Board (CEB) helps
senior executives and their teams drive corporate performance. CEB
offers comprehensive data analysis, research and advisory services
that align to executive leadership roles and key recurring
decisions. CEB tools, insights, and analysis empower member
companies to focus efforts, move quickly, and address emerging and
enduring business challenges with confidence. CEB's client and
member network includes 85 percent of the Fortune 500, 50 percent
of the Dow Jones Asian Titans, and 70 percent of the FTSE
100. It spans more than 50 countries, 5,700 individual
organizations, and 225,000 business professionals. For more
information, visit www.executiveboard.com.
SOURCE Corporate Executive Board