Many millions of dollars are being spent by brand leaders each year to capture the hearts and pockets of consumers, but does this translate into efficient sales outcomes?
In the majority of cases, yes, sales are being recorded. However very few senior executives we speak to and work with can articulate which customers they’re not winning, who’s taking them and why. We call this the invisible prospect – the prospect that your current analytics can’t see.
Many are blissfully unaware what there actual potential is and how more effective their acquisition funnel could be. Cost per acquisition (CPA) rates in most cases we see can be improved by 11% to 40%.
Our online product discovery and purchasing intent studies (refer Shortlist Report) see lesser known brands build their prospective customer base by having a strong and convincing online presence. The ability to understand your prospective customer’s journey from awareness to final preference provides a strong competitive advantage and the necessary insights to understand how to allocate budget to maximise online conversion and ROI.
Our Q3 2012 data for online laptop purchases illustrates this perspective. Let us take you on a journey of Company D. Company D is an online-focused technology retailer who ranked #5 for unprompted brand awareness. As you will see in the attached chart just 34% of all customers who preferred Company D actually preferred them upfront. Company D has done a remarkable job of attracting new customers to their proposition and have helped customers make a decision to purchase from them. 17% of the total were swayed away from their initial preference.
So what was it that Company D did I hear you ask? There are many reasons, however let me share a couple of insights with you. Once consumers ‘remembered’ or became exposed to the brand, visitation increased. The company has built strong awareness and credibility in market and this equity has translated into consumer confidence. However, this confidence was reinforced through an excellent website sales journey which effectively supported the customer’s needs and questions. Prospects, despite visiting other competitor sites, more often felt Company D could better meet their needs.
So what are the key takeaways?
- Understand the role of your brand in online customer decision-making
- Understand the reasons why prospects are not considering or preferring your offer.
- Which competitors did they choose, and why?
- Understand the real shape of your digital acquisition and sales funnel from an entire market perspective.When you do this you’ll get an understanding of the invisible consumers and a picture of the opportunity you have in front of you
- Putting money in brand awareness and attraction campaigns are important. However, balance your spending to ensure your website sales journey is optimised and you push your CPA down.
Want more of this data on your brand and product? Well, the chance is that we’re already capturing it.
Contact us today.