WELCOME TO OUR BLOG!

The posts here represent the opinions of CMB employees and guests—not necessarily the company as a whole. 

Subscribe to Email Updates

BROWSE BY TAG

see all

How to Win Virtual Assistant Rejecters Over

Posted by Chris Neal

Wed, Jun 20, 2018

It seems like every week, tech giants are adding new features to their virtual assistant (VA) tech arsenal. See Google’s new Duplex technology—an AI system for accomplishing real-world tasks by phone. 

While companies are pouring millions into making their virtual assistants smarter and more integrated, most users don’t stray beyond its basic functions like asking for the weather.

Learn about the emotional and social identity dimensions keeping people from adopting and using this tech to its full potential, and what brands need to do to win the VA war.

CMB01_VA_Infographic_07_AW

Topics: technology research, Consumer Pulse, emotional measurement, AffinID, Artificial Intelligence

Why CrossFit Athletes Become Brand Promoters

Posted by Molly Sands, PhD

Wed, May 30, 2018

kettle ball

Earlier this year, 500,000 of my closest CrossFit friends and I came together for the Reebok CrossFit Open—the world’s largest organized sporting event. For five weeks, athletes would eagerly await that week's assignment, then head to the gym (for what I can only describe as some serious pain and suffering) to complete the workout under the supervision of a certified CrossFit judge. 

That type of commitment shows true customer dedication.

CrossFitters like myself have earned the reputation for being diligent promotors – a term used in market research to describe people that are very likely to recommend a brand to others. I often hear jokes like, "The first rule of CrossFit is to never shut up about CrossFit" (and it is). While I know not everyone wants to hear about my max back squat or the latest paleo craze, as a market researcher, I am in awe of how CrossFit has built and maintained its strong brand loyalty.

Here at CMB, we look at three key benefits that drive this type of brand loyalty. I may be biased, but The Open is a clear indicator that CrossFit has successfully capitalized on each of these benefits:

Functional benefits. Does this product deliver the desired result?

I’m not waking up at 5 a.m. to trudge to the gym in the snow to do handstand push-ups unless I see some dramatic improvements in my fitness. Not only can CrossFit be extremely effective for building strength and improving physical fitness, the program also concretely measures your progress to underscore these functional benefits. Athletes are encouraged to keep diligent records of their workouts so you can clearly see improvements over time.

Emotional benefits. How does this product make me feel? Does it fulfill my emotional goals?

There's a known link between physical health and emotional well-being, so it's not surprising a fitness-focused lifestyle would also deliver emotional benefits. However, CrossFit provides a range of emotional benefits beyond just an increase in general well-being, including increased self-efficacy, pride, and emotional strength. Additionally, positive emotions are associated with the sense of community the boxes (translation: box = gym) strive to create. All these result in an “upward spiral” of health and happiness that drives brand love.

Social Benefits. Are the other users of this brand like me? Are they people I want to be like?

When we choose a brand, we consider what the typical brand customer is like. Do we have anything in common with this person? Are we part of the same “tribe”? Are they someone we’d like to be friends with? CrossFit creates a tight-knit community of people who identify with and relate to each other. We regularly do team-based competitions and partner WODs (workout of the day) that help develop strong relationships with other members of the box (remember, that means gym). Everyone completes the workout together, and as we know from social psychology, mirroring physical movements can actually cause people to identify more strongly with each other.

And as you can see even from a few short paragraphs about CrossFit, we even speak our own language (e.g., box, WOD, AMRAP, EMOM, MetCon, etc…) All this helps to create a “tribe” that members identify with. Not only do lots of people love the brand, they also become ambassadors (promoters) that encourage others to use the brand, too!

Overall, CrossFit builds brand loyalty by inspiring measurable progress towards attainable goals, creating an “upward spiral” of health and happiness, and developing a strong sense of belonging to a community.

This is a valuable lesson for any brand looking to build a faithful following. While the desired functional, emotional and social benefits may vary by brand and industry, the importance of highlighting each benefit does not. Brands can utilize these underlying principles—and maybe even some of these exact strategies—(tall, venti, grande sound familiar?) to build brand loyalty in a base of dedicated consumers.

__

Watch our short 20-minute webinar to learn more about the three benefits that drive customer loyalty:

Watch Now

Molly Sands is on the Advanced Analytics team at CMB. When she’s not building predictive models, you can usually find her at a local CrossFit box or at least recommending it to somebody.

Topics: emotional measurement, customer experience and loyalty, Identity, BrandFx

Employee Appreciation: The Importance of Providing Emotional Benefits

Posted by Heather Magaw

Wed, Feb 28, 2018

collaborating-resized.jpg

An organization’s people are its most valuable assets.

And in today’s job competitive market, companies finding and retaining top talent need to go beyond “benefits” like ping-pong tables and yoga classes. These tangible perks look great, but on their own they won’t foster employee loyalty and motivate productivity.

A key to a corporate culture that inspires and motivates employees is ongoing appreciation—showing gratitude each and every day. Providing emotional benefits (e.g., feeling appreciated and valued) is one of the most important things a company can do for its employees—in addition to providing functional benefits (e.g., free lunches).

But identifying what employees truly value and what makes them feel appreciated can be challenging. It requires a thoughtful approach to understanding human behavior and acknowledging our intrinsic desire to be recognized, celebrated, and appreciated every day.

At CMB, we found that our employees feel more appreciated by intangible, personal gestures like:

  • Receiving an email of appreciation from a client
  • Finding a “thank you” post-it from a colleague stuck to the desk
  • Getting a handwritten thank you note in your company mailbox
  • Seeing an email of acknowledgement to a manager about an employee’s unique contribution

These small acts of kindness and appreciation can speak louder than a free lunch or Summer Fridays. They are thoughtful, meaningful, and make employees truly feel valued for the work they do.

Springing for a midafternoon ice cream party is a lot easier than encouraging busy colleagues to take the time to write personal notes. But, I challenge leadership teams to foster workplace environments that practice ongoing appreciation. As Stephen R. Covey once said, “Always treat your employees exactly as you want them to treat your best customers.”

In an upcoming webinar, join Erica Carranza, PhD., and learn how building meaningful connections promotes workplace satisfaction and productivity.

Register Now

Heather Magaw is VP, Client Services at CMB. She challenges each reader to write 5 emails or notes of appreciation on Friday, March 2, Employee Appreciation Day.

 

Topics: our people, emotional measurement, emotion

Flying the Friendly Skies?

Posted by Chris Neal

Thu, May 18, 2017

pexels-photo (1).jpgI don’t envy the United Airlines (UAL) management team these days. Last month’s removal of passenger Dr. David Dao from an overcrowded plane in Chicago sparked a major PR nightmare for the airline carrier.  This debacle comes to a brand that was already struggling from image problems in an industry that has long been comedic fodder for bad customer experiences.

Overbooking, heightened security procedures, skyrocketing baggage fees, and shrinking legroom have made domestic air travel a very stressful experience. With emotions running high on the tarmac, in the air, and on Twitter, what’s an airline to do?

Emotions matter... and we've proved it.

Emotional analytics are a critical tool to help create a truly consumer-centric brand. Emotions are a key driver in consumer brand adoption/loyalty and will undoubtedly play a major role in how United performs going forward. In our self-funded study of the impact of emotions across 90 brands in 5 industries, CMB found that a brand’s overall emotional impact score can heavily influence future likelihood to purchase along with other key KPIs (advocacy, engagement, etc.).

We identified which specific emotions drive business outcomes in the airline industry, the top being “secure”, “efficient”, and “happy”. Of the negative emotions we tested, “anxious” proved to be the most damaging to a company:

drivers of airline use.jpg

We also found that of the five major airline brands tested, including United, UAL had the lowest Net Positive Emotion Score (NPES). NPES is the balance of positive emotions activated through experience with a company subtracted by the extent of negative emotions activated. It also accounts for overall emotional “activation” (high vs. low), and the general sentiment of that activation (positive or negative).

airline NPE net.png

Both United and American both share a special place at the bottom of the “Negative Emotion” spectrum (17 and 18, respectively), out-activating negativity by ~30% over the airline industry average of 13.

airline NPE neg.png

A Path Forward

Now let’s have a look-see at what specific emotions have the biggest impact on likelihood to consider flying United, specifically, and how that compares to the overall industry average of emotional drivers:

top emo drivers-airlines.png

The “Anxious” vs. “Relaxed” emotional spectrum is the biggest emotional driver of future United purchase intent. Lowering feelings of “Anxiety,” in particular, is much more important for United’s brand than it is for the industry average.

Unfortunately for United, their brand already generated 33% more “anxiety” than the industry average:

UAL anxiety.png

I can only imagine the anxiety Dr. Dao felt when he was removed from the seat he paid for to make room for a UAL employee. And I can also imagine the emotional connection felt by the millions of others who watched the video of him being dragged off the plane by airport security because they could relate to it in some way from their own travel experiences or common worries people have about flying:

  • “Will they arbitrarily change my flight times in a way that messes up the rest of my travel plans?”
  • “Will they cancel my flight altogether and put me on another (later) flight if it is under-booked?” (something that happens a lot on connector flights to smaller airports).
  • “Will I be forced to vacate my seat if they are over-booked?”
  • “Will there be delays that cause me to miss my connection, an important meeting, etc.?”
  • “Will I be sitting next to a 6’5” linebacker in a cramped coach class seat?”

No doubt this incident would have been a PR disaster for any airline, but the blowback was likely even more intense because it happened on a UAL flight—a brand that already activates more negative sentiments than most competing brands.

The bad news:

United Airlines was already in the hole before this incident, and now that hole is vastly deeper. Bad press and bad experiences linger longer in peoples’ memories than positive press or positive experiences, so it’s likely the image of Dao’s forced removal is here to stay (at least for a while).

Similarly, angry customers are much more likely to tell others about their bad experiences (typically with a bigger megaphone) than those with positive ones. Righteous indignation goes viral more readily than positivity. Furthermore, bad word-of-mouth has larger negative impact on a brand than good word-of-mouth has positive impact (by an order of magnitude). And some of the most prolific public haters will likely never be swayed otherwise, no matter what UAL does from this point forward.

The good news: 

In our analysis, we found that—across all industries tested—emotional reactions to the most recent experience have a much bigger impact on likelihood to buy in the future than the worst experience a customer has ever had with a brand (or the best). In other words, even brands that mess up big time can recover if they begin to deliver customer experiences and marketing communications strategies that foster the right emotions. With our “EMPACT” approach, we can identify very specific customer experiences, creative executions, and messaging that will deactivate the most damaging emotions like “anxiety” and activate key positive emotions like “relaxed.”

May the skies be friendlier.

If United wants to be a truly consumer-centric brand, they need to consider emotion measurements like NPES as a valid metric for tracking and analytics. United will need to profoundly understand which emotions matter, and how to proactively influence these emotions through specific customer experiences, promotional campaigns, and influencing what is (and isn’t) said about the brand on social media.

Emotional metrics deserve the same level of visibility and focus that traditional industry metrics like Revenue Per Available Seat Mile (RASM) and classic NPS receive. Until this happens, UAL may struggle to focus their customer experience strategies and creative campaigns in a way that helps them recover from this low point.

Chris Neal leads CMB’s Technology & Telecommunications practice. He gets emotional very easily. He is also a frequent flyer on United Airlines. While extremely angered and disgusted by the viral video of the UAL incident, he is curious to experience how UAL actually changes in future and will fly this airline again to find out.

Want to learn more about how we're revolutionizing  emotional measurement with our EMPACT solution? Watch our webinar:

 Learn More About EMPACT℠

Topics: EMPACT, emotional measurement, customer experience and loyalty

A Lesson in Brand Loyalty and Emotion from a Pure Barre Fanatic

Posted by Cara Lousararian

Wed, Mar 08, 2017

barre.jpg

Two and a half years ago, I fell in love with Pure Barre–a full-body workout inspired by ballet, yoga and Pilates. There are a bunch of barre studios with similar workouts to choose from, but I started with Pure Barre and am now fiercely loyal.

This loyalty didn’t develop overnight; the morning after my first class I could barely make it out of bed. I couldn’t understand why barre had such a big following. It felt like self-inflicted torture, and I definitely felt this guy’s pain.

I was never one to enjoy working out, so what’s so special about the Pure Barre brand that’s kept me addicted for years and kept me from heading to another barre brand? The physical pain is the same (intense) and the class prices are a little higher than other similar workouts. After giving it some thought, I realized that what I love so much about Pure Barre is how being part of the Pure Barre community makes me feel.

Pure Barre makes me feel confident, motivated, and strong. It evokes such positive emotions from me that I’ve found myself altering my behavior in order to incorporate Pure Barre into my life. For example, when I plan a vacation, I specifically look for hotels that are near Pure Barre studios, I get up extra early on holidays like Thanksgiving and Christmas so I can squeeze in a class, and I schedule my weekend social life around my classes. Not only that, while I'm normally a fairly frugal shopper, I’ll spend $17 on the special Pure Barre sticky socks used for class without batting an eye (I own 6 pairs!!!).

I’m also proud to be part of the Pure Barre community. We’re a network of loyal followers bound by our love of the Pure Barre experience who constantly support and encourage each other.  I’ve witnessed deep friendships begin at Pure Barre studios–maybe enduring the pain together is a strong bonding force? Either way, there’s a camaraderie among Pure Barre members unlike anything I’ve experienced at other gyms/studios.   

Pure Barre makes its members feel good and valued by doing little things, like celebrating attendance milestones. For example, you’ll get special recognition at your 100th, 250th, 500th, 750th, etc. class. You also get a free class on your birthday. Or, as Pure Barre calls it, your “barrety”.  Touchpoints like these makes me and my fellow Pure Barre addicts feel celebrated and drive attendance.

Pure Barre instructors also play a huge part in fostering positive emotions from the clients. Filled with upbeat energy and techniques for encouragement, they have a friendly way of ensuring that everyone works their hardest (for example, they won't call out the final 10 counts of the exercise until everyone has the right form). Instructors also learn the names of regular attendees and will call out your name if you are doing something particularly well during class. This “in the moment” recognition motivates me to push myself beyond my limits and get the most out of every class. 

I love talking about Pure Barre and am a huge promoter of the brand. I want others to have the same positive experience with Pure Barre, and so I regularly encourage friends to take classes with me.

Pure Barre is a great example of how successful a brand can be when it’s tuned into how its product/service makes their customers feel. When brands know what emotions they (and should) evoke from their customers, brands can more effectively create techniques to drive consideration and loyalty.  Pure Barre motivates, encourages, and supports its customers. The end result? A loyal following of barre fanatics willing to pay a premium to plié.  

Want to learn more about how we're revolutionizing  emotional measurement with our EMPACT solution? Watch our webinar:  

Learn More About EMPACT℠

Cara Lousararian is a Senior Research Manager at CMB and rarely passes up an opportunity to #LTB (that’s lift, tone, burn for those not familiar with the Pure Barre lingo).

Topics: EMPACT, emotional measurement, customer experience and loyalty, emotion

Using Emotion to Drive Brand Loyalty

Posted by Heather Magaw

Mon, Feb 13, 2017

Valentine's Day image.jpeg

Stores have been stocked with heart-shaped candies and cards since December, but now that it’s actually February, I think it’s okay to think about Valentine’s Day.  And because love is in the air (as well as on the shelves) it’s a perfect time to think about how brands can tap into this fundamental human experience to drive consideration, usage and loyalty.  

We already know that understanding and influencing consumers’ emotions is crucial for building a loyal customer base, but what do we really know about love that could help us achieve those lofty outcomes? Based on a quick Google search (and a few life experiences), here’s what I’ve learned so far:

Love is an emotion.

Love is an action.

Love is a biological motivation system.

Love is an attitude.

Love is a drive.

Love is a choice.

Love is patient.

Love is blind.

Love is a battlefield.

Love, as it turns out, is rather complex. So what does that mean for marketers trying to get people to fall in love with their brands? Where do you start?  

When studying emotion, traditionally researchers take a brand-centric approach and focus on how consumers feel about the brand. While there’s valuable insight there, it’s often more valuable to take a consumer-centric approach, one that asks consumers how the brand makes them feel. Consumers develop feelings about a brand because of how it makes them feel… understanding those feelings evoked by the brand is critical insight into how consumers develop strong, positive sentiments towards the brand.

That’s why EMPACTSM, our proprietary approach to measuring emotion, is based on decades of consumer psychology research, helping marketers understand how a brand or touchpoint should make consumers feel to most effectively drive their behaviors, and ultimately brand love.

For marketers trying to earn consumers’ love this Valentine’s Day (and the other 364 days of the year), it’s critical to explore which emotions your brand should evoke to make them love your brand. Do they want to feel respected? Proud? Efficient? Secure? Surprised?  Just like with the object of your romantic affections, you’ll be far more successful with your customers if you ask them how they want to feel and create experiences and messaging that inspire those emotions. [twitter.png Tweet this!]  

Heather Magaw is VP of Client Services at CMB. The brands she loves most this Valentine’s season are Apple, Amazon, Red Sox, IBM Watson, and CMB (of course!).  

Topics: EMPACT, emotional measurement, emotion

Taking Our Emotions to the Polls

Posted by Victoria Young

Wed, Nov 02, 2016

social-icons-01.png

Whether you support Trump, Clinton, or neither, there’s no denying the 2016 race to the White House has been an emotional one.  Voters of all stripes are feeling a range of emotion from fear and anxiety to anger.

But why should a market researcher care about the emotional aspects of the election?  Because in elections, just like market research, emotions play a key role in determining future behaviors. For example, research suggests that voters’ feelings towards a candidate strongly influence not only who they’ll vote for, but if they’ll vote at all (Valentino et al., 2011; Finn and Glaser, 2010).american-flag-1.jpg

We know emotions impact voting behavior, but what’s the best way to gauge voter sentiment?  Should we look to social media?  Should we turn to neuroscience (biometrics such as fMRIs and EKGs)? In our client work, we take a quantitative approach to emotional impact analysis (CMB’s EMPACT℠) that measures brands’ emotional impact on consumers. Since Trump and Clinton have each built their own distinctive “brand” throughout the 2016 election, campaign managers might consider a quantitative “explicit” approach to measuring this aspect of consumer (and voter) decision-making. A quantitative methodology can:

  • Provide a quick and systematic approach to gathering big data: Quantitative analyses, like EMPACT℠, are both fast and systematic, allowing for target market/segment group comparisons that can be tracked over time. This method is ideal for a campaign manager looking to measure the sentiments of his or her candidate’s supporters.  The more information that we have about the American public, specifically those connected to voting behavior, the better insight we have into the emotional battleground that is a contentious campaign.  It’s also helpful to track voter sentiment over time to pick up on changes (e.g. October surprises) at specific junctures.
  • Compare the emotions a brand (or candidate) activates to those of their relevant competitors: Respondents might be asked to rate how a recent and relevant experience with a brand/product made them feel. This approach helps to determine a variety of emotions from basic (e.g., happiness and sadness) to social and self-conscious (e.g., pride and embarrassment). Applied to the presidential election, a quantitative approach could help determine who voters considered the “winner” of the three debates. We can look beyond the facts and policies and compare the emotions elicited by each candidate. Because presidential debates are key voter decision points, it’s imperative to track how citizens perceived each candidate’s performance beyond anger or fear.
  • Identify which emotions drive key outcomes (e.g., consideration, loyalty): After determining which emotions are activated by a specific brand/product, it’s possible to identify which are the most important for driving decisions and outcomes. Instead of focusing on polling numbers and predicting forecast stats, campaign managers could try to understand why voters have chosen a specific candidate.  Which specific emotions are motivating voter turnout? Another use of this information is to see if emotional drivers differ by segment.  How do Republicans feel about a specific candidate vs. Democrats and Independents? A strategic candidate would look at the specific emotions that drive voter support for or against them.

In the US, voter turnout hovers around 60%.  Because researchers have found that emotional sentiment is linked to voter turnout, it’s an important part of the puzzle.  If campaigns could measure how their constituents really feel during the election process, they could more effectively tailor their campaigns to elicit the kinds of emotions that translates into votes.

Like all brands, candidates are selling themselves to the public.  A smart candidate should take advantage of techniques that will help inform how they should present themselves to voters.  But no matter how you feel towards either candidate or the election in general, go out and make a difference by rocking the vote on November 8th!

 Victoria is an Associate Researcher at CMB.  She loves to eat any kind of pizza, travel to (somewhat) exotic places, and couldn’t have written this post without Spotify.

Learn More About EMPACT℠

Topics: EMPACT, emotional measurement, growth and innovation

CMB Conference Recap: MRA's Corporate Researchers Conference

Posted by Kathy Ofsthun

Fri, Sep 30, 2016

It’s been less than 48 hours after leaving the MRA’s Corporate Researchers Conference (CRC) 2016 in San Francisco and I’ve finally had a moment to reflect.   

Three topics dominated this year: Innovation, Emotion, and Qualitative and Hybrid methods.  If you created a word cloud from the sessions and keynotes, these words would pop, along with actionability, risk taking and impact.

Word_Cloud_crc.png

INNOVATION: There’s a growing intersection between innovation and market research—the need for facilitation and moderation is expanding at the same time as more and more brands wake up to the benefits of co-creation with customers.  Key takeaway: Researchers with foresight and adaptability can contribute at the fuzzy front end and not just after products are conceived of and developed.

EMOTION: Emotional measurement and neuroscience continue to be hot topics, and CRC was no exception. How do you get beyond the rational to understand the complex reasons customers make choices?  What is the science behind emotions and how can we leverage our knowledge of social psychology and neuroscience?

QUAL & HYBRID METHODS: Seven separate sessions were devoted to ways in which qualitative research was a critical addition to quantitative findings and to storytelling.  Methods such as observation, in-home (in bathroom!) ethnography, online communities and a Quant + Qual method used by eBay brought faster and better insights.

Other themes and learnings included: observe more (93% of communication is non-verbal), be prescriptive not just descriptive, walk/hydrate/power nap/meditate, think creation vs curation, design thinking, improv and that old standby storytelling. 

Along with some interesting conversation, attendees heard some big industry news—the MRA and CASRO merger. As of January 2017, MRA+CASRO will now be the “Insights Association”.  Most members favor the merger and look forward to one cohesive professional organization.  It makes sense to me too, and I thank those who surely worked tirelessly to make this happen. I just wonder about the name.  After all of the talk of “actioning” at the conference (and in our daily work), I’d like to see the name reflect more than just insights—it  feels limiting--stopping short of the more important “impact”.  I would like to be associated with the result in addition to the insight.  Let me know if you agree or disagree. 

Kathy is CMB’s new VP of Qualitative Strategy + Insights.  She loves uncovering insights from customers across the globe and lived in Shanghai for 8 months doing just that!  If you missed her at CRC, you can catch up with at TMRE or send her a shout @ShopperMRX.

 

Topics: qualitative research, EMPACT, emotional measurement, conference recap, growth and innovation

Dear Dr. Jay—Brands Ask: Let's Stay Together?

Posted by Dr. Jay Weiner

Thu, Feb 11, 2016

 Dear Dr. Jay,

 What’s love got to do with it?

 -Tina T. 


DrJay_Thinking_about_love.pngHi Tina,

How timely.

The path to brand loyalty is often like the path to wedded bliss. You begin by evaluating tangible attributes to determine if the brand is the best fit for you. After repeated purchase occasions, you form an emotional bond to the brand that goes beyond those tangible attributes. As researchers, when we ask folks why they purchase a brand, they often reflect on performance attributes and mention those as drivers of purchase. But, to really understand the emotional bond, we need to ask how you feel when you interact with the brand.

We recently developed a way to measure this emotional bond (Net Positive Emotion Score - NPES). By asking folks how they felt on their most recent interaction, we’re able to determine respondents’ emotional bond with products. Typical regression tools indicate that the emotional attributes are about as predictive of future behavior as the functional benefits of the product. This leads us to believe that at some point in your pattern of consumption, you become bonded to the product and begin to act on emotion—rather than rational thoughts. Of course, that doesn’t mean you can’t rate the performance dimensions of the products you buy.

Loyalty is a behavior, and behaviors are often driven by underlying attitudinal measures. You might continue to purchase the same product over and over for a variety of reasons. In a perfect world, you not only create a behavioral commitment, but also an emotional bond with the brand and, ultimately, the company. Typically, we measure this path by looking at the various stages you go through when purchasing products. This path begins with awareness, evolves through familiarity and consideration, and ultimately ends with purchase. Once you’ve purchased a product, you begin to evaluate how well it delivers on the brand promise. At some point, the hope is that you become an advocate for the brand since advocacy is the pinnacle of the brand purchase hierarchy. 

As part of our Consumer Pulse program, we used our EMPACT℠: Emotional Impact Analysis tool to measure consumers’ emotional bond (NPES) with 30 brands across 6 categories. How well does this measure impact other key metrics? On average, Net Promoters score almost 70 points higher on the NPES scale versus Net Detractors. We see similar increases in likelihood to continue (or try), proud to use, willingness to pay more, and “I love this brand.”

NPES.jpg

What does this mean? It means that measuring the emotional bond your customers have with your brand can provide key insights into the strength of that brand. Not only do you need to win on the performance attributes, but you also need to forge a deep bond with your buyers. That is a better way to brand loyalty, and it should positively influence your bottom line. You have to win their hearts—not just their minds.

Dr. Jay Weiner is CMB’s senior methodologist and VP of Advanced Analytics. He has a strong emotional bond with his wife of 25 years and several furry critters who let him sleep in their bed.

Learn More About EMPACT℠

Topics: NPS, path to purchase, Dear Dr. Jay, EMPACT, emotional measurement, brand health and positioning

What's the Emotional Impact of Your Ancillary Revenue Strategy?

Posted by Judy Melanson

Tue, Oct 13, 2015

The CarTrawler Yearbook of Ancillary Revenue reports that airlines generated $38 Billion in ancillary revenue in 2014, up 20% year over year. The report highlights the brands generating the most ancillary revenue–in terms of total revenue generated ($5.86 billion for United Airlines), the percent of revenue it represents (38.7% of Spirit Airline’s revenue) and discloses top revenue sources (e.g., frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals).

Clearly, ancillary revenue is not confined solely to airlines; theme parks, cruises, car rentals, hotels all boost revenues from selling additional products, services and measure.jpgmerchandise. And it’s easy to see why. In addition to driving incremental revenue, ancillary products and services enable a supplier to (1) offer a competitive base price - essential (particularly in some segments like cruising) to enter into a traveler’s consideration set; and (2) meet the needs of their guests by merchandising – and conveniently delivering – what customers crave and where they’re willing to spend extra.

But there are potential costs as well. A quick read of the Cruise Critic blog points to ‘high-pressure’ sales tactics employed by ship employees and the negative impact it has on the guest experience. Eavesdrop on airline rent-a-car counters and you’ll hear the ‘fear, uncertainty and doubt’ in the voice of infrequent car renters. And hop onto a Spirit airlines to get an earful of complaints (“$3 for a water bottle?!”). Suppliers—particularly in the Hospitality industry—need to think about their brand position and why their customers buy from them as they consider the revenue and cost of this incremental revenue stream.

Our recommendation: to develop a customer-centric ancillary revenue strategy you need to consider the ‘emotional impact’ it will have on your key customer segments and the emotional fingerprint your brand wants to leave on its customers. Is your brand in the business of making key customers feel delighted? Secure? Valued? If so, the Ancillary Revenue offers should avoid making customers feel angry and frustrated! First step is to identify the top emotional drivers of your brand and investigate whether the Ancillary Revenue products are aligned; consider whether the revenue strategy reinforces, or conflicts with, the desired emotional end-benefit. Watch our recent webinar to learn about our approach: EMPACT℠: Measuring Your Brand's Emotional Impact

There are plenty of positive examples of ancillary revenue opportunities aligned with the desired emotional impact. Here are a few:

Disney: There is no FastPass on rides for younger kids at Disney – and the wait time can easily surpass the patience of kids… and their parents. On a recent trip to Disneyworld, a colleague spent over $100 buying buzzing, spinning, bubble-blowing toys from push-carts surrounding the rides. The toys kept her son happy and occupied. She felt delighted; turning waiting in line into a fun instead of a frustrating experience.

Disney mastery in this area is evident. It successfully offers many products and services that drive ancillary revenue that reinforce the desired emotional outcomes – during and after the trip: the MemoryMaker photo package, the pins/guest books/signatures and stamped pennies, the character breakfasts.

Tigerair, serving Asia-Pacific destinations, offers a fee-based service to travelers waiting for a flight connection of at least eight hours where they can visit the city-center and go sightseeing. As a traveler, I’d feel productive, happy and secure (knowing that I’d be back in time for my flight!)

Hilton Worldwide: When traveling, for business and pleasure, most travelers describe Wi-Fi as an essential service. For years, most major full service hotel brands provided access for a daily fee. Slowly, but surely, major brands like Hilton Worldwide have moved to a position of providing basic access to all loyalty program members. Doing so removes a highly charged negative emotion and reinforces a feeling of ‘being valued.’ Ancillary revenue will be created through sales of the premium internet service with the negative emotional blowback of ‘nickel and diming’ for a basic requirement.

The key take-away: The quest for ancillary revenue will only heat up. Ensure your strategy aligns with – and supports – the reasons customers buy from you and the emotional benefit they’re looking to achieve.

Learn More About EMPACT℠

Topics: travel and hospitality research, EMPACT, emotional measurement, customer experience and loyalty