In the consumer journey, understanding the different stakeholders involved in the purchase decision is crucial for businesses aiming to tailor their strategies effectively. These stakeholders include the user, the shopper, and the influencer, each playing a unique role in the decision-making process and contributing to the overall consumer experience.
By comprehending the distinct responsibilities and influences of each stakeholder, businesses can better address their needs and preferences, ultimately enhancing customer satisfaction and conversions.
User
The user is the individual who directly interacts with and uses the product or service. They experience the product firsthand and their feedback is crucial for understanding product performance, usability, and satisfaction. In the consumer shopping journey, the user’s needs and preferences drive the initial search and evaluation of potential products. Their interaction with the product post-purchase also provides valuable insights for future improvements and innovation.
Shopper
The shopper is responsible for making the purchase decision. This role may overlap with the user, but it can also be distinct, especially in cases where the shopper buys products for someone else (e.g., parents purchasing for children). The shopper’s journey involves researching products, comparing options, and making decisions based on factors such as price, convenience, and perceived value. Their decision-making process is influenced by both their own preferences and the needs of the user.
Influencer
Influencers are individuals who have the power to affect the purchase decisions of others. This group includes Key Opinion Leaders (KOLs), Coaches, Experts, and social media personalities. They may not directly use or purchase the product, but their reviews, recommendations, and endorsements can significantly impact the shopper’s and user’s perceptions. Influencers often bring credibility and trust to the product, making their role pivotal in shaping consumer behaviour throughout the shopping journey.
Once we aware of different stakeholders and role in a consumers purchasing decision. It is important to know how do we measure their position and impact in the procession conversion?
Positive Promoter vs Neutral Observer vs Negative WOM
To effectively understand and address the different types of stakeholders in user acquisition and conversion, it’s essential to dig deep into each category using professional techniques and measurement metrics. Each of the Users, Shoppers, and Influencer can have different Positive or Negative position about your product, service or brand.
Below are few detail analysis to find out their positioning and impact to your business.
Survey & Quantitative Analysis
Objective: To gather large-scale data on user opinions, behaviours, and satisfaction levels.
- Technique: Use structured questionnaires distributed via email, social media, or in-app prompts.
- Measurement Metrics: Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES), frequency of use, and purchase behaviour.
- Impact: Helps in identifying promoters, neutrals, and detractors. Promoters are likely to recommend the product, neutrals are indifferent, and detractors may spread negative word-of-mouth (WOM).
Consumer Journey Big Data Analysis
Objective: To analyse user data from various sources to uncover patterns and trends.
- Technique: Utilise data mining, machine learning algorithms, and analytics platforms (e.g., Google Analytics, AWS Data Lakes).
- Measurement Metrics: User engagement metrics (time spent on site, click-through rates), conversion rates, churn rates, and behavioural segments.
- Impact: Provides insights into user segments, predicting future behaviours, and identifying opportunities for targeted interventions.
Customer Segmentations – Best Customer vs Switcher vs Cherry Picker
Objective: To categorise customers based on their value and behaviour towards the brand.
- Technique: Use cluster analysis, RFM (Recency, Frequency, Monetary) analysis, and customer lifetime value (CLV) calculations.
- Measurement Metrics: Purchase frequency, average order value, recency of last purchase, and total revenue generated.
- Impact: Identifies high-value customers (Best Customers), those who switch between brands (Switchers), and those who make occasional purchases based on offers (Cherry Pickers). Tailoring strategies for each segment can enhance retention and conversion rates.
In summary, employing a combination of these professional techniques and measurement metrics will offer a holistic view of stakeholders’ positions and their impact on consumer journey, user acquisition and conversion. This multi-faceted approach ensures that strategies are data-driven, user-centric, and tailored to different user segments, ultimately leading to improved business outcomes.
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