Today’s AP Voice is written by Marketing Director, Vignes Rajagopal.
The Amistad Partners team looks forward to Euromonitor International’s annual Consumer Types Series because it goes beyond general demographics and statistics by creating personality-drive profiles of consumer types. We advise our independent hotel partners to focus less on the numbers and to really understand who their customers are, what drives their buying behaviours and how they make purchasing decisions. To get more customers, you need to be sure of what motivates your customers and what matters to them.
Back in 2009, consulting firm, McKinsey concluded that the traditional marketing funnel was no longer relevant. Before the growth of the internet and online shopping, consumers started with a set of potential brands and methodically reduced that number to make a purchase. However, McKinsey theorised, the decision-making process is now a circular journey with four phases: initial consideration; active evaluation, or the process of researching potential purchases; closure, when consumers buy brands; and post purchase, when consumers experience them. And this remains true today.
So, what are Euromonitor’s customer types?
1. The Secure Traditionalist: Set in their ways and often frugal in their shopping habits, they do not enjoy shopping and rarely make impulsive purchases. Because they have low brand loyalty and have a strong focus on price, this type could potentially be a key audience for new brands as long as they are competitively priced.
2. The Empowered Activist: This type places a great deal of importance on value for money and is cautious about spending money. However, they are willing to pay more for higher quality products. Brands that invest in being green and eco-conscious can influence the Empowered Activist’s shopping decisions.
3. Conservative Homebodies: Driven by price and value for money, they are likely to stick to their day-to-day purchases. Though they do not spend a lot of money, Conservative Homebodies enjoy browsing new products and shopping and occasionally trying new things.
4. The Inspired Adventurer: Future-focused, cautious about how they spend their money and eager to accomplish larger life goals like moving abroad or being self-employed, Inspired Adventurers value high-quality products and actively seek value for money. They are not very brand-loyal and are likely to try new products.
5. The Undaunted Striver: The Undaunted Striver places importance on how others perceive them and are avid followers of the latest trends. To keep up with changing styles, they are likely to make impulsive purchases and enjoy spending money on new products and premium and strong-branded products. Luxury and strong-branded companies are likely to resonate with the Undaunted Striver.
6. The Cautious Planner: The Cautious Planner carefully determines his or her purchases prior to making them and rarely makes impulse purchases or buys non-essential items. They tend to have high loyalty to specific brands and products and are willing to pay more for a product they believe is worth the money. Brands and retailers might struggle to convince the Cautious Planner to try new products or brands.
7. Balanced Optimists: Pragmatic consumers, they are usually cautious about how they spend their money and look to save rather than spend. They are strongly driven by low prices and are unlikely to buy brand-name products unless they are discounted and competitively priced. They do not have very strong brand loyalty and can shift their preferences according to low prices and how much money they can save.
8. The Impulsive Spender: The Impulsive Spender places importance on their appearance and frequently makes impulse purchases to keep up-to-date on the latest trends. Though they do not enjoy shopping or spending money, Impulsive Spenders actively seek bargains which further enable their impulsive spending behavior.
We are in an era of consumer-driven marketing where the active-evaluation phase (consumers seeking information, reviews, and recommendations) is crucial for brand growth. McKinsey advises marketers to shift from buying media to developing properties that attract consumers: digital assets such as Web sites, ways to foster word-of-mouth (like Instagram), and systems like Facebook ads that customise advertising by viewing the context and the consumer.
Amistad Partners helps independent hotels understand their customers to craft sales and marketing strategies that deliver growth. Our friendly team is happy to speak with you about how we can help you.