Digital Transformation & Software Engineering Services
e(motional) Commerce

e(motional) Commerce

Do we need inspiration in everything we buy today? I guess we do and that is what Retailers around the world are employing to catch the consumer’s attention. Product marketers have done an amazing job in creating that need. Samsung launched their campaign on the “The Next Big Thing” – a very cleverly crafted campaign that had to compete in the marketplace with Apple. The campaign did well and continues as it tugs onto the emotional strings of the consumer, “Don’t you want the next big thing?!”

When the Apple iPod came out, the world was controlled by the music companies that wanted to sell you music by albums and only via a physical medium. After Apple broke this down, one can see that the iTunes store as a perfect place where emotional commerce is clearly evident. One could buy a single song! The music industry was up in arms but they too saw behaviors emerge that the emotional buying behavior was leading them to newer business models. The cross-selling behavior was extended to draw in a customer to buy more songs and/or albums. One may go to buy a single song or album but then would see songs/albums – you got to have!  The price point is just right $0.99 to $1.29 per song – a steal deal!  And in some cases, an entire album for $9.99 as proposed to $21.99.

Another example of emotional commerce is employed well by VistaPrint. They are an online personalized stationery store. When one orders visiting cards, say 500, they would offer an amazing offer at checkout. Even after having paid and checked out – Vista Print offer you an amazing deal which is difficult to refuse. The basket size quite magically increases, with customer consent, and with little effort on VistaPrint side. A brilliant strategy and a good play on human emotion and behavior.

In this digital economy, it is paramount that the influenced behavior is integrated into all aspects of the business. Inspiring a consumer is an important part of emotional commerce. The consumer is being influenced by various factors when they are shopping for a product. The retailers should not insult the intelligence of the customer, walking into a store when they are buying a product. They could potentially have done enough research online as well as got a perspective on the product – don’t patronize them. Instead, inspire them – provide them details that they could identify themselves with the product. Show them how it integrates with their lifestyle. Toyota did a brilliant job when they released the Tundra brand by integrating the truck that most Americans use for, like fish and gaming, surfing and other activities besides work.  It is key to keep the inspirational focus throughout the online buying process. Online has the disadvantage that the customer may easily get distracted. So, focus on all the shopping process by inspiring the customers – provide them assurances that the choices they are making are the right ones. Show them what other customers, critics and experts had to say about the product and what did customers who bought it do with the product.

So how do you know what levers drive emotional behavior? Each product, category, genre, brand will have to find their levers, but in some it is also reasonable to see what others are doing. A mid-size retailer may not be able to do an analysis with a large user group. Fine-tuning this may be a good route to take but has its associated pros and cons. It may become a bigger task of managing & maintaining these extra pieces of data. There are a number of emotional levers that can influence buying decisions, lifestyle levers – where did another customer use it, how did they use it, enjoyment factor; reputation levers – product quality, manufacturer/retailer services it – no questions asked; product levers – things that intrigue consumers about the product are some of the levers that could be applied.

So, what are these pieces of data that can help in building or influencing behavior? These are attributes that help in describing the product. One attribute we all are influenced by is the product rating – a one Star – we will never touch it, or 5 Star -OK! When can I buy this – can I get today? Reputation Management is key to the success of a product in the online world. We are seeing that this is spilling over to the offline world. Especially when consumers buy appliances at a store but do the research online – apart from the energy rating, safety rating, warranty etc., consumers are influenced by the service provided at the store, manufacturer’s attitude to fixing an issue etc.

However there are other attributes that influence and have high emotional value. Limited edition product – like there are only a 100 ever made, now only there and 7 left! If you were into this product, then the probability is that you would buy this product. From the retailers point, there is a sense of urgency created that tugs the emotional strings of the customer.

In an Online to Offline to Online world, inspiration will be a key area to focus on as consumers blend analytical thinking and emotional behavior. There is a balance that needs to be achieved when building an Aspirational model. It is important that one should employ an information-driven approach, apply a generous amount of creativity and create an engaging consumer experience by focusing on the emotional levers that matter. As organizations take to this digital transformation, the emotional levers need to be integrated in a seamless manner where the consumer does not see any difference in their shopping experience, or even while going from online to offline or from offline to online. The revenue realized by the increased basket size will be the proof.

About the Author

Kuruvilla Mathew Kuruvilla Mathew
Mat has over 20 years’ experience in product and services development in Retail, BFSI, Entertainment, Automotive and Healthcare verticals. As an Enterprise Architect, Mat brings fresh ideas, thought leadership and innovation into products and solutions that he helps build for his clients. He has a strong track record of bringing products to life. Being technology agnostic he has helped clients in bringing tremendous value to their organizations.

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