When it comes to growing a business the first place many managers and C-Level team members will look to focus on is generating more leads and new sales. But what if the greatest potential for growth lies within your current customer base? In this week's video, we are going to look at the power of creating emotional connections with our customers.
The Harvard Business Review has a great article called, "The New Science of Customer Emotions." In this article, they share research that proves the power of creating emotional connections with customers. Click play on the video below to learn more.
Hey, what's up everybody, and welcome to Hack My Growth. In today's episode we're going to be talking about the value of emotional connections.
Thanks so much for joining us today. If you've liked our videos in the past, maybe this is your first time and you want to get more connected, please hit the subscribe button, we would love to have you as part of our community.
We're going to be talking about why building real relationships with your customers is critical to success, and this is just going to improve your marketing, your sales, and your business, overall.
The slides that you're going to see, and the research and the data you're going to see, actually this comes from a Harvard Business Review article, called The New Science of Customer Emotions. A lot of great content, a lot of cool insights that I'm stoked to share you because they are helping me see things in a very different way.
So, creating an emotional connection is extremely important. First and foremost is that emotionally connected customers are more engaged with your brand. They provide more value to your brand over time, as well. You can see the baseline is a highly satisfied customer, somebody that's satisfied with what you're delivering, but they're not fully connected with your business, so that's kind of a baseline for their research.
As you can see, those who are not emotionally connected aren't very satisfied. They have a -18% customer value, right. And you see it ticks up a little bit as they see a little bit of brand differentiation, but when they're fully connected and bought in emotionally, there's a positive value in that customer, by 52%. Again, we see that these highly connected customers, customers that have built a relationship with you, have a much greater value to your overall business.
Emotionally connected customers, they buy more often from your business. They visit more often if you have a store, and this is something, I think, that's very important, because a lot of retail businesses and brick and mortar stores are so afraid of Amazon, right. They're so afraid of what Amazon's going to do that they try to be Amazon, or out-Amazon Amazon, which is a really bad way to approach this scenario.
Instead, if you're emotionally invested in your customers, and you build that brand relationship with them, these customers are going to buy more and visit more. They're going to care less about the prices. They're going to pay more attention to your brand and what you're doing. They're going to follow your advice because you're a trusted resource. And then they're going to do an amazing thing, which is spread the word.
When we talk about inbound marketing, the last phase of inbound marketing is delighting customers. The reason we delight customers is because then those customers become our best advocates to meeting new customers. You know, the power of the referral is maybe just as important, if not more important, in today's world, than it was before we had online activities. We need to be emotionally investing in our customers and building relationship instead of just looking to acquire more leads or boost our numbers, from just a lead or customer standpoint, but if we start to invest emotionally, we're going to see these powerful benefits. If you look at these, these all impact the bottom line and the health of your business.
How do we motivate people, emotionally? Well, people have this desire to have a sense of belonging. They want to feel connected to something. People don't go to Amazon ... At least, most of the people I know don't go to Amazon because they love Amazon or feel connected to Amazon, but people do shop a lot at local companies, or they shop at very focused companies that have given back to them because they have a sense of belonging. A lot of times people buy from Apple because of what it means to be an Apple customer, be in the Apple crowd, not necessarily because Apple has the lowest prices, right. They have that emotional connection.
They also want to stand out from the crowd. They want to be different. They want to look different. They want to be unique. They want to have confidence in the future. They want to know that the people they're connecting with, the brands they're buying from, are going to be around. Which, again, feels a little bit, like that sense of security that they want. They want to succeed in life, you know, and success is different for everybody.
Sometimes it's monetary, sometimes it's relationship. But these are things that people want, emotionally, and they want to protect the environment. That's something that's seen today. That's a trigger, you know. People want to take care of what's going on, and this is what they've found when they did this study.
Now, emotional motivators do vary. Now, all of these we talked about here aren't all the emotional motivators that exist, but these are the top ones I pulled out. You know, protect the environment was more of the millennial mantra. Having confidence in the future is a little bit of millennials, but a little bit of the older crowd, as well, and feeling secure.
When we talk about customer segments, everybody's different. Everybody's going to have different needs and different primary motivators. So it's very important that when you're looking at your business, and you're looking at how you're going to create these connections, that you speak somebody's language and learn to empathize with them. This is where the power of customer segmentation can come in, and digging deeper than just basic demographics, but more psychographics and how people relate to each other on a psychological level, on an emotional level.
Motivators also differ based on where they fit in the customer journey or the buyer's journey. Somebody early in the stage of meeting your brand and interacting with you is going to be very different than somebody who's been a customer for a long time.
So your most valuable customers, those ones that have a +52% value to you, they're going to spend twice as much, annually, as the baseline. They're going to shop more actively with your business. So they say 46% shop at least monthly, or do business with you monthly. This impacts both service industries, but also product industries. They're less price sensitive, because they buy the brand, not necessarily the cheapest. And they're three times as likely to shop on a mobile device. This is more in the B2C realm, for sure, but as you can see, those most valuable customers are going to have a ton of value to your company in the long run.
Key motivators. Again, we can kind of narrow these down into three core charts, and there are tons of emotional motivators but, really, that sense of belonging, that sense of thrill, and being part of something new, and freedom. You know, having that choice to be themselves and to make a decision that's going to lead to long-term success, that's going to lead them to that sense of security. You know, freedom is tied to those things for a lot of people.
So, customer happiness is satisfaction plus emotional engagement; it’s what's going to lead to financial growth for your business, to revenue growth for your business. But it's more than that. It's really about building a business that's thriving on customer success. So many times, we can focus just on lead generation, that we forget that there are people connected to each lead. And we can all grow at this, you know. I know a lot of you may be watching this video and thinking, wow, we're not emotionally investing in our clients. Now, you can have a good brand score and still grow your business, but there's always room for us to improve. You know, maybe you're one of those small businesses that does a really good job, but there's always room to improve that emotional connection.
Here is a list of some big brands that have done a really good job of creating brand score, brand awareness, growing their business, but when they're compared, when it comes to emotional connection, they've got some space to grow. You know, Toyota's doing a little bit better, but there's Coca-Cola, Starbucks, Nike, they have a gap to fill. What you can do is take some of this knowledge and this understanding that, hey, I can use the internet, I can use social media or blogging or my website to create relationships with people.
For my business, it's YouTube and it's our blog, and we take time to create content that we know is going to add value for people and to share why we do what we do because we want to help make the internet more human. For your business, it may be a social channel, or it may be your blog or your website, but it's taking the time to provide a little bit extra to those people who do business with you and call themselves your customers.
I want to encourage you to take these and invest in the people you have because sometimes the greatest opportunity for growth for your business isn't necessarily always generating new leads. It's better serving the people you’re already doing business with, pouring into them, building that authentic emotional relationship, which is going to lead to exponential growth and customer satisfaction.
Hope you guys liked this video and, until next time, Happy Marketing.
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