Loyalty According to Tweeple

A while ago, I created a search column in Tweetdeck to see what people have to say about loyalty on Twitter. To my surprise, once the column was created, tweets just started flying in. There has been rarely a day when I do not see at least a few hundred public tweets containing the word “loyalty”. Apparently, loyalty is on people’s mind often. Out of curiosity, I started to dig a little deeper and more systematically into what is being said about loyalty in these tweets. While I’m not quite done with my analysis yet, here I’d like to share some of my initial discoveries.

What/Whom Are People Loyal to?

When we talk about loyalty, we usually imply an object or person that we are loyal to. From the tweets that I have analyzed, here are the most often objects of loyal passion:

  • A romantic relationship or partners in the romantic relationship
  • Friends and family
  • Sports team
  • Brands/products
  • Co-workers/boss
  • Dogs’ loyalty to their owners (such as this touching story from Wikipedia about this Hachiko dog)

Interestingly, when specific brands or products were mentioned as objects of loyalty, mobile products such as cellphones and mobile providers were the most frequently referred-to product category. For instance, earlier today, there were a few retweets of the message by @Natemz below.

Loyalty Tweet

In this case, the tweet is actually a counter-loyalty message, where product features beat loyalty. But it still implies loyalty that some people used to have for BlackBerry before they switched to Android. Continue reading “Loyalty According to Tweeple”

Are Your Customers Really Loyal?

 

If Jane comes to your store every Saturday and spends $50, would you consider Jane a loyal customer? Driven by concerns about the bottom line, businesses often define loyalty based on how much consumers spend and how often they buy. But digging a little deeper into the psychological reasons behind “loyalty” can reveal important insight and help identify effective target marketing strategies.

In Jane’s situation, there are two possible reasons behind her “loyal” patronage: (1) she genuinely likes your products and services, and therefore, when need arises, she always comes to your store to make a purchase; (2) she comes to your store out of habit, whenever she’s on her way to visit her grandma on Saturdays. In other words, both habit and true loyalty can drive Jane’s seemingly loyal behavior, and your optimal marketing strategy should be different based on the exact reason involved. Let’s dissect this a little further, shall we?

Continue reading “Are Your Customers Really Loyal?”

The Hidden Power of Context

Retailers put a lot of thought into designing their store layout and ambiance. In the online world, websites also spend a great deal of effort designing their logos and images.  Even Twitter allows you to customize your own profile background. But do you know that other than fulfilling aesthetic and branding purposes, your graphics and other contextual cues can have much subtler (but still powerful) effects on how consumers think and what consumers do?

In recent years, consumer psychologists have made significant progress on alternative influences of consumer decision making.  Instead of treating consumers as cold, rational decision-makers, this research stream reveals that consumers are often driven by automatic processes that they are often not consciously aware of.

Example 1: Which sofa consumers buy depends on your website’s background image

Cloud vs. Penny

Naomi Mandel and Eric Johnson published a study in Journal of Consumer Research, in which they exposed consumers to the same online furniture store with only one subtle difference: one version had fluffy clouds and blue sky as the background, and the other had coin images on green-colored background.  They found that those who saw the fluffy cloud background were more likely to buy the more comfortable but pricier sofa, whereas those who saw the coin background were more inclined to choose the cheaper but less comfortable sofa. The reason behind such differences is that the different images primed different attributes (comfort vs. money) in the consumers’ mind, therefore increasing the weight of the corresponding attribute in consumers’ choices.

Example 2: Drive by Walmart on the way to shopping to avoid overspending

A more recent study by Tanya Chartrand and her colleagues published in the same journal looked at the subconscious activation of goals through contextual cues. In one of their experiments, individuals were asked to focus on the center of the computer screen to complete a task. In the meantime, the brands of prestige (e.g., Nordstrom) vs. thrift (e.g., Walmart) retailers were flashed randomly on the edges of the computer screen for 60 milliseconds, outside of the individuals’ focal attention area. In a subsequent choice between two brands of socks and between two microwaves, individuals who were flashed the prestige brands chose the more expensive brand than the cheaper brand in each task, and the reverse was true for those who were flashed the thrift brands. Interestingly, the researchers also found that once a specific goal (achieving prestige vs. saving money) is activated subconsciously, it grows stronger until the goal has been satisfied in a subsequent real choice. All of this happens without the consumers’ conscious awareness of what is affecting them.

Lessons Learned:

  • There are many more factors that affect consumer decision making than what companies normally pay attention to.
  • The graphics, banner ads, and other contextual cues on your website or in your store can significantly alter consumers’ decision related to your product. If your product excels on a specific attribute, you may want to play up graphics and contextual cues related to the attribute to make it more important.
  • The fact that these “innocent” contextual cues can affect consumers without their awareness brings interesting legal and ethical questions, similar to the long-debate surrounding subliminal advertising. For example, how far can marketers go in affecting consumers’ mind this way? What if such tactics are used on younger consumers who are less knowledgeable and therefore may be more subject to such influences?

What is your take on this?  Has your company ever tried such tactics? Or as a consumer, would you be offended if you know a marketer tries to influence you in this way?

Further Reading:

Mandel, Naomi and Eric J. Johnson (2002), “When Web Pages Influence Choice: Effects of Visual Primes on Experts and Novices,” Journal of Consumer Research, Vol. 29 (September), p.235-245.

Chartrand, Tanya L. et al. (2008), “Nonconscious Goals and Consumer Choice,” Journal of Consumer Research, Vol. 35 (August), p.189-201.