••• consumer psychology
For sharing programs, there is such a thing as ‘too popular’
Businesses that want to market commercial sharing programs – in which consumers pay for shared use of products like cars or bicycles – should focus on cost effectiveness and product availability rather than popularity or environmental benefits, according to research by the University of Pittsburgh.
Authored by Cait Poynor Lamberton, Joseph M. Katz and Randall L. Rose, the study examined the likelihood of consumers using companies that shared cars, cell phone minutes and bicycles.
In the study, a fictional car-sharing service was presented to an online panel of 300+ licensed drivers. Users were asked whether they would sign up for the car-share program; how likely they would be to use the car; and whether they were concerned the car would be available when they needed it. They also answered questions about the social acceptance and environmental benefits of sharing and whether they had any antipathy toward the industry in question.
Consumers that stand to save money participating in a car-sharing program were more likely to choose the service than those who would not save money. However, beyond cost savings, consumers were most concerned with a car being available when they needed it, suggesting that a program that seems too popular would deter potential users, causing them to doubt the availability of resources. This consideration was a greater contributor to the likelihood that they would participate in a sharing program than almost any other factor.
“Consumers know if companies are advertising that everyone is using their services, there may not be a product available for them when they want to use it,” said Lamberton. “There is a fine line between saying something is popular and not letting consumers feel as though they are losing access.”
••• customer experience
Please hold? I don’t think so
Consumers are 58 percent more likely to make a purchase when brands respond to customer calls in under a minute and 73 percent more likely to recommend highly-responsive brands to other consumers, according to research from Ifbyphone, a marketing automation company.
Study participants were asked a series of questions related to company response times. Answers were based on participants’ most recent experiences calling a brand under two circumstances: to make a new purchase or as an existing customer. Sales calls were answered faster than existing customer calls, as half of all sales calls were answered in less than 60 seconds, while 78 percent of existing customers waited longer than a minute to reach a real person.
Four out of five respondents indicated a desire to abandon a brand due to poor response times but nearly half reported they couldn’t walk away for contractual or other reasons.
While existing customers may be stuck doing business with less-responsive brands, successful companies don’t neglect their customers. According to the survey, customers are 69 percent more likely to refer a brand when that brand responds in less than a minute.