Imagine buying your next cellphone. The shelves are packed with an upwards of 10-15 cellphones and brochures for various monthly plans. How long does it take you to make a purchasing decision on a potentially $200 phone versus buying a candy bar in the checkout aisle? As you can tell, not all buying decisions are created equal…
We recently had a chance to speak with AnnaMaria Turano, a senior marketer and partner at MCAworks, more about how time and effort factors into consumers purchasing decisions. AnnaMaria is the co-author of Stopwatch Marketing. She is also an adjunct professor of marketing at NYU’s Stern School of Business. Visit AnnaMaria at her blog.
What’s the book about?
Stopwatch Marketing focuses on the amount of time and effort that consumers go through to purchase products. Each shopping decision factors in the amount of time consumers want to spend shopping, whom they are shopping for, and the risk involved in the purchase.
Should marketers focus more on the time or effort factor?
The generic view of consumers states that everyone is cheap and demands a quick and convenient purchasing process. This is not necessarily true. The situation and consumer behavior are key factors in determining timing and effort. Consumers change demands based on what they’re buying, who they’re buying for, and when they need to start and stop shopping. The balance of time and energy and the trouble they want to put in is just as important as how much they want to spend.
One way to visualize the nature of consumption is through the Stopwatch Matrix:
The matrix is plotted on the axes of how much time/energy a consumer is inclined to spend on a purchase, and the net margin of that purchase. The four quadrants are divided by different types of consumer:
- Impatient – These consumers have fast ticking stopwatches – they require a quick decision. While their needs are urgent, they are by no means looking forward to the shopping process.
- Painstaking – These consumers have a slower ticking stopwatch – they rarely make purchases and have high anxiety about making a wrong decision. This is the toughest set of consumers to crack. So how did Tempur-Pedic, a retailer of high-end mattresses, pull it off? They built up to a purchasing decision through education, testimonials, and a 90 day satisfaction guarantee. They even sold sleeping aids, because they didn’t just sell a mattress – they sold a good night of sleep.
- Reluctant – These consumers don’t want to start shopping, since their personal needs haven’t materialized. Marketers must challenge that viewpoint. TD Bank recognized that most consumers stick to their bank, regardless of quality, since it’s simply too much of a hassle to shift their account around. TD ran advertisements on commuting routes displaying themselves as a conveniently located bank opened 7 days a week and at times when other banks were closed. When consumers experienced a new trigger in their lives (e.g. moving in to a new area, making them vulnerable to change), they couldn’t help but following through on making the switch to TD.
- Recreational – These consumers actually enjoy act of shopping, almost as much as the use of the product. By looking for reviews, talking to others about the product, and spending long periods of time shopping, they truly take their time. This is perhaps the most easily approachable group of consumers.
How have these ideas been applied to other companies?
When impatient shoppers show up at a tire dealer, they usually have no idea where to start. The only obvious differences lie in the prices and the shoppers are aware the dealer isn’t likely to recommend the set of tires with the best value. That’s where Goodyear Tires came in. AnnaMaria worked with the new products team to create the TripleTred set of tires. With clearly labeled treads capable of handling dry, wet, and snow-covered roads, Goodyear instantly conveyed their benefits versus the competition. The tires essentially “sold themselves” to customers in need of a replacement tire.
What are 3 points from the book that people can take and say “I could do something with it today”?
- Identify the buying behavior of your consumers – not just their perceptions and behaviors in product usage.
- Map out the touchpoints which are of greatest benefit to your consumers in terms of helping them shop according to how much time and energy they want to “spend.”
- Reallocate your budget to align with those touchpoints which provide maximum value to your customers – and yourself!
Images from stopwatchmarketing.com
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I saw AnnaMaria speak at the American Marketing Association Conference and what struck me was that there is a huge opportunity to develop branded experiences for “recreational” consumers. Interesting to think about how you can align brand marketing tactics against each of these segments.