Jan 30, 2017

Five reasons why understanding emotion is key to business success

Understanding and influencing consumers’ emotion is a vital ingredient for business success. This statement has undoubtedly been recognised as the centre of brands’ efforts. But according to Forrester, what is surprising is how emotion has been so poorly measured and incorporated into experience design and core operations.

Firms must understand the benefits in which emotionally-driven strategies can bring to their overall performance, as well as the consequences of not and so we share 5 key facts in which highlight why emotional connections are a MUST:

1) Consumers don’t forgive and forget - According to their 2017 predictions, customers who experience disgust, anger, or a feeling of neglect during a brand interaction are about eight times more likely not to forgive that company. Investing in tools to help better identify and understand these emotions is key.

2) Making people feel valued and appreciated drives loyalty – Forrester research within the hotel industry shows 88% of customers that felt valued will advocate for the hotel brand and over 75% of them will continuously retain their dealing. On the other hand, loyalty will be weakened if customers feel annoyed, disappointed or frustrated by a firm. Therefore, keeping a customer happy is important but making them feel valued and worth something is key for continuing successful B2C relationships.

3) Impress people with the unexpected - Most brands strive to keep all of their customers satisfied with their products and services. However, satisfaction is an expectation from customers and isn’t so likely to drive and maintain loyalty or advocacy for the company. Businesses should do the unexpected and attempt to develop an emotional connection with customers. Not only will customer-experience strategies maximising emotional connection give them a competitive advantage in their field but it will also result in customers who are six times more likely to combine assets with a firm than customers who are highly satisfied but not emotionally involved.

4) Emotive campaigns mean quantifiable business success - Putting emotions at the forefront of the marketing strategy will result in better financial performance. Now that digital tools provide brands with deeper insights into what campaigns work successfully for boosting sales and driving awareness, they can understand the benefits of implementing emotive rather than informative campaigns. As Les Binet, Head of Effectiveness at Adam & Eve DDB, claims, “they will deliver 17% more profit, 30% more market share and 19% higher sales”.

5) Emotional connections justify higher prices - A 10 year study shows brands that evoke a stronger emotional response than comparable goods are able to charge 20 - 200% more than their competitors. Firms should strive to make their customers feel valued, as they will return that appreciation through their willingness to pay premium.

Now we can understand WHY it is vital for marketers to focus on emotional connections, but it is equally important to consider HOW these emotions are quantified and used to improve customer experience in the future. Consumers cannot explain exactly what aspects of the experience triggered their emotions and often provide misinformation that leads to companies investing incorrectly and ineffectively.

Our emotional response technology and Sensum Insights platform however provide brands with biometric data that allows them to truly understand consumers’ emotions, gain deeper insights into what’s important to them and ultimately drive emotional connection, customer value and business success.