Understanding Consumer Behavior

At airtel, I ran an iPhone giveaway marketing campaign three times, and to my surprise, none of them performed. Logically, you’d think offering a prize as attractive as an iPhone, especially during the launch period, would drive massive engagement. The assumption is that everyone would rush to participate, download your app, engage with the campaign, and complete the required actions. But what actually happened was the opposite. Engagement was shockingly, embarrassingly low. In contrast, campaigns that offered much smaller rewards—like a ₹1,000 or ₹500 voucher, or even just a free mobile recharge—generated higher participation rates, more app downloads, and greater overall engagement. But why does this happen? This outcome can be largely attributed to consumer psychology. When the reward seems too large or unattainable, people instinctively doubt their chances of winning. The concept of *perceived probability* comes into play here. When the prize is something as high-value as an iPhone, people immediately think, "What are the odds that I’ll actually win?" This skepticism causes them to disengage and not even bother trying, as they don't see the reward as realistically achievable. On the other hand, smaller, more attainable rewards feel within reach. A ₹1,000 voucher or a free recharge doesn’t carry the same sense of improbability. People feel like they have a real shot at winning something smaller, which encourages them to take the necessary actions, leading to better campaign results. In essence, psychology plays a far more critical role in shaping consumer behavior than we give it credit for.

The underlying reason why German automakers struggle against China while the rest of Europe is celebrating. 😲 The German auto industry is watching their sales numbers drop in a free fall. Meanwhile, other European car brands are surging to new heights of their success: → Ferrari’s sales increased by 12.9% globally. → Skoda achieved a 26.3% increase in sales globally. → Rolls Royce grew by approximately 14.3% in global sales. → Land Rover reported a significant 93% record growth in sales. This highlights one key insight: Not the entire market is shifting. Ultra luxury buyers are still happy to spend large budgets on prestige products. Likewise, lower priced products can still get away with moderate software maturity if balanced with good design and a strong brand. But with lasting economic uncertainties around the world, two large groups of customers are rethinking their purchase decisions: 🙋🏻♂️ “𝗔𝘀𝗽𝗶𝗿𝗶𝗻𝗴 𝗕𝘂𝘆𝗲𝗿𝘀”, typically wealthy people but not super rich. → They previously bought expensive brand products for status. Now, they move to the “Aspirer Zone” buying products where they get more tangible value for their money. 🙅🏻♂️ “𝗩𝗼𝗹𝘂𝗺𝗲 𝗕𝘂𝘆𝗲𝗿𝘀”, typically people focused on conscious spending. → They previously bought mid-range products for superior perceived quality. Now, they move to the “Volume Zone” buying products that are much cheaper and similar or better in quality. Considering these insights, German automakers basically have three options to stay in the game: 💰 𝗟𝗼𝘄𝗲𝗿 𝘁𝗵𝗲 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗽𝗿𝗶𝗰𝗲 → This is what VW is doing with their ID.One 🦾 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗺𝗮𝘁𝘂𝗿𝗶𝘁𝘆 → This is what Mercedes is doing with their MB.OS ✨ 𝗠𝗼𝘃𝗲 𝘁𝗼 𝘁𝗵𝗲 “𝗨𝗹𝘁𝗿𝗮 𝗟𝘂𝘅𝘂𝗿𝘆 𝗭𝗼𝗻𝗲” → This is what Jaguar with their new luxury vehicles All three can be valid strategies and can even be combined, but they all require completely different approaches. Once again, knowing your customers remains the key to competitive advantage. When automakers understand the motivation behind buying decisions, they can quickly adapt to the shifting customer needs. Which strategy makes the most sense for German OEMs?

Some of you have heard me say that there are only two types of pricing discounts: smart and stupid. And you want to get rid of the stupid ones. Stupid discounts are bad for five reasons: 1. They eat directly into your margin. 2. They lower the value perception of your product and service. 3. They create pricing inconsistencies. 4 They encourage customers to haggle and reward the wrong type of customers with lower prices. 5.Because of (3) and (4), sales cycles in B2B markets tend to be longer and focused on price, not on value. Today, I want to emphasize the second point- discounts lower the value perception of your products and services. There is sufficient empirical evidence that this is true across product categories, customer segments, and cultures. One remarkable study did not only measure the perception of discounted products but also actual performance. The study by Shiv, Carmon, and Ariely explored how discounts influence consumers' perceptions and actual experiences with a product. The researchers demonstrated that when participants purchased an energy drink at a discounted price, they performed worse on cognitive tasks compared to those who paid full price for the same drink. This phenomenon was attributed to participants' expectations about the efficacy of the product, which were influenced by its price. Study Design The research consisted of three experiments designed to test the hypothesis that lower prices negatively impact perceived and actual efficacy due to placebo effects: - Participants: Individuals were recruited and randomly assigned to different pricing conditions. - Product: The energy drink used in the study was marketed to enhance mental acuity and cognitive performance. - Procedure: Participants were told they would consume an energy drink before completing a series of word-jumble puzzles (e.g., solving anagrams). The drink was offered at either its regular price or a discounted price. Participants then consumed the drink and completed the puzzles within a set time limit. - Outcome Measures: Cognitive performance was measured by the number of puzzles solved correctly. Participants also rated the perceived effectiveness of the drink on a scale. Key Findings Participants who paid full price for the energy drink solved more puzzles on average than those who purchased it at a discounted price. The results indicated that the lower price activated weaker expectations about the product's efficacy, which in turn led to poorer performance. This effect was consistent across all experiments, supporting the role of expectancy in mediating placebo effects. The key takeaway from this and other studies is obvious: your price serves as an indicator of quality, whether it makes sense or not. Price discounts cost you five times. Shiv, B., Carmon, Z., & Ariely, D. (2005). Placebo effects of marketing actions: Consumers may get what they pay for. Journal of Marketing Research, 42(4), 383-393. DOI:10.1509/jmkr.2005.42.4.383. #pricing

After decades of working with leaders at companies like Apple, Salesforce, and Cisco, we've identified 4 storytelling techniques that consistently work to deliver important messages in high-stakes settings: 1. Start with the unexpected Don’t begin your presentation with context. Instead, begin with the moment that makes people think, “Wait…what?” Instead of something like: “Here’s an update on our September campaign…” Try starting with the most interesting detail: “I broke our biggest marketing rule last month, and it worked.” Lead with the surprise. You can add context later. 2. Let people feel the tension After the surprise, don’t rewind to the beginning. Take your audience to the moment where things weren’t working. Flat numbers. Missed goals. Stalled progress. Instead of: “The campaign was underperforming, and our team went back to the drawing board.” Try:  "We were two weeks out from the end of the quarter. The campaign wasn’t producing results, and the team was out of ideas. That’s when I decided to take a risk...” You don’t need to explain the problem. You need to make people feel it. 3. Use real dialogue When your audience hears what was actually said, they stop listening to you and start visualizing the moment. This helps them connect emotionally with what you’re saying. Instead of: “The campaign manager said team morale was low and they were struggling to find a solution.” Try: “My campaign manager pulled me aside in the hallway and said, ‘We’ve tried everything. The team has been working overtime, and we don’t know what else to do.’” Dialogue brings listeners into the moment with you. It makes the story real. 4. Share the lesson Never assume people will infer the meaning you intended. End your story by answering: - What does this mean? - How should someone act differently now? Example: “Breaking our biggest marketing rule helped us turn this campaign around and hit our numbers. I strongly suggest we revisit our marketing guidelines. We could be leaving a ton of revenue on the table.” Without the lesson being clear, even a good story feels unfinished. These are the same techniques we teach to our clients at Duarte. Try them out during your next presentation and watch how people lean forward and tune in to your message. #ExecutivePresence #BusinessStorytelling #PresentationSkills

In 2016, Colgate faced a significant challenge in India as Patanjali's Ayurvedic products rapidly gained popularity. Colgate, holding a dominant 55.6% market share in the toothpaste category, experienced a 1.8% decline in market share and a 4% drop in sales volume. Patanjali, on the other hand, quickly grew into a formidable competitor, evolving into a ₹10,000 crore giant within a decade. To counter Patanjali's rise, Colgate launched Vedshakti, a herbal toothpaste line, in an attempt to align with the Ayurvedic trend. However, this move backfired. Colgate's brand identity, long associated with "doctor-recommended" solutions for whiter teeth, conflicted with the Ayurvedic positioning. By venturing into Ayurveda, Colgate inadvertently endorsed the very essence of Patanjali's brand, which was already seen as the authentic leader in the Ayurvedic space. This strategic misalignment not only diluted Colgate's core brand values but also confused consumers who began to question Colgate’s sudden shift from science to Ayurveda. The result? Patanjali continued to capture more market share, while Vedshakti failed to make a significant impact. Colgate's own CEO later acknowledged that this misstep cost them dearly in terms of market position. Key Takeaway: This case serves as a compelling example of the risks of diverging from a strong brand identity. When a market leader like Colgate steps into a rival's territory without clear differentiation and understanding of consumer perception, it risks not only losing its own loyal customers but also reinforcing the rival’s position. The lesson here is clear: Stay true to your brand’s core strengths, and be cautious of competing on your competitor’s terms rather than your own. Thoughts? #FMCG #branding #Healthcare #brand #HUL #Patanjali

Every sales leader I talk to at the moment is struggling with some version of the same issue. The symptoms are different, but the underlying cause is the same. - Sales cycles elongating - Deal slippage - Prospects not showing up to meetings - An uptick in ghosting - Poor forecast accuracy - A drop in deal volumes - A drop in conversion rates What's actually happening out there in Buyer land? I've been delivering win-loss reviews for B2B companies around the world since 2011 and I'm seeing buyer behaviours I've never observed before... Let me break down some of them quickly for you and share some guidance on how to use these lessons to your advantage: Trend #1: Risk has jumped up the decision tree in order of importance, to the very top of the list for many clients, even more so when it's a new vendor. Action: Go deeper on risk in your discovery conversations, recognise that risk is both organisational and personal...find ways to better manage, mitigate and share risk with your clients...Be the low risk option. Trend #2: Value for Money, Responsiveness and Cost are consistently selected as the most important decision criteria by many clients. Action: Responsiveness should be an easy one to get right, but many sellers are stretched too thin right now...do less, but do it better. Trend #3: Change in Strategic Direction is the most frequently cited reason for customers coming to market for a new solution at the moment. Action: Try to reverse engineer this reason, to understanding what caused this change in direction and what it actually means for the business. These are your keys to the kingdom, when building a rock solid business case. Trend #4: Feedback from Peers and Colleagues has emerged as the most trusted information source for almost all respondents. Action: Case studies and customer references are losing their luster...find ways to tap into the trust which prospective clients have in their own peer network, as a way to unlock deeper connections and build trust. Trend #5: Customers are demanding more detail in the proposal documents, tender responses and business cases which they are receiving. Action: Put in the work, avoid the cookie-cutter responses, find your win themes and weave them in, share the detail they need to make an informed decision. I haven't got a crystal ball, so I can't tell you if/when the pendulum will swing back the other way, from a buyer behaviour perspective. What I can tell you with a high degree of certainty is that prospective customers have raised the bar, in terms of their expectations from their vendor partners. It's our job now to to elevate the preparation, patience and professionalism of B2B sellers everywhere, to meet these changing needs and maintain our relevance to the customers we serve.

We talk a lot about how brands can connect to women. But here’s where I think the conversation goes wrong: Women are not one group of like-minded consumers. The category of “women” comprises 4 billion people with different preferences, professions, purchasing habits, and personal lives. So how can brands connect with women? Authenticity. I'm talking about the kind of authenticity that comes from truly understanding, representing, and serving the people your brand reaches. Why does this matter? Let's look at the numbers first:  • Women are overseeing $32 trillion in spending globally.  • By 2028, 75% of discretionary spending will be controlled by women. These aren't just statistics—they're a wake-up call for brands trying to connect with women. Brands historically miss the mark when they focus on women as "consumers," rather than as people. Take Dove's work with the CROWN Act, a movement and legislation aimed at prohibiting race-based hair discrimination in workplaces and schools. By bringing attention to how women of color—particularly Black women—have historically been told how to wear their hair at work, Dove drove meaningful change that extended far beyond marketing. The result for Dove (and its parent company Unilever) hasn't just been products sold, but actual legislative change—all because they stood for something that impacts the day-to-day life of their consumers. The key to the consumer paradigm: You cannot effectively serve women if you don't represent them at every level of your organization. Women continue to hold relatively few leadership positions in industries primarily serving women. The fashion and beauty industries, for example, are dominated by male leadership. When brands get it right, it shows. A few examples? FERRAGAMO appointed a female CEO back in 1960—long before it was trending—and that commitment to women in leadership has been woven into their DNA ever since. It’s not a campaign. It’s who they are. Or formula company Bobbie, which doesn’t just have consumers, they have devoted brand ambassadors, families, and loyal subscribers. True representation isn't about optics—it's about women making decisions at all levels—from product development to marketing to the C-suite. Maybe we need to retire the word "consumer" altogether. Because if we're talking about real, authentic connections, shouldn't we instead be focusing on people as human beings. It's no longer about thinking what you “should” create to get them to buy—it's about genuinely making that woman’s life better because you know exactly who she is. And your company’s leadership reflects that. 

"𝘚𝘰𝘤𝘪𝘢𝘭 𝘮𝘦𝘥𝘪𝘢 𝘪𝘴𝘯'𝘵 𝘢 𝘴𝘦𝘳𝘪𝘰𝘶𝘴 𝘉2𝘉 𝘴𝘢𝘭𝘦𝘴 𝘤𝘩𝘢𝘯𝘯𝘦𝘭." I hear this at least once a week. Then I show them this data. Millennials and Gen Z rank social media as their third most important buying resource - 38% rely on it, nearly double the rate of older generations. What's the message for enterprise leaders? If your business isn't strategically positioned on social, you're invisible to an entire generation of decision-makers who are researching solutions differently than their predecessors. The data isn't just showing a minor trend shift - it's revealing a complete transformation of the B2B buying process. Buyers are 69% of the way through their journey before they begin engaging with sellers. The truth is that social-influenced deals will keep growing. It will continue to be a critical revenue driver. Our enterprise clients embracing social are seeing: → Shortened sales cycles  → Higher quality leads  → Expanded influence in buying decisions Your buyers are making decisions right now based on who shows up in their feeds. The only question left is whether that's you or your competition.

An ecommerce company recently approached my team to do an email audit as they were facing challenges with low open and click-through rates. After analyzing their email account, here are our main recommendations to revive their email marketing channel: 1. Strategic Email Segmentation: Currently, your emails lack personal relevance due to a one-size-fits-all approach. This is a crucial area to address. Action Plan: Implement segmentation based on purchase history, engagement levels, browsing behavior, and demographic information. 2. Personalized Content Creation: Generic content won't cut it. Your audience needs to feel that each email is crafted for them. Action Plan: Develop emails specifically tailored to the different segments. This includes curated product recommendations, personalized offers, and content that aligns with their interests. 3. Subject Line A/B Testing: Your current subject lines aren't doing their job. You need to be implementing ongoing A/B subject line tests, as this is low-hanging fruit to improve your open rates. Action Plan: Regularly test different subject line styles and formats to identify what resonates best with each segment. Keep track of the metrics to inform future campaigns. 4. Mobile Optimization: A significant portion of your audience reads emails on mobile devices. Neglecting this is causing a decrease in your email engagement rates. Action Plan: Ensure all emails are responsive and visually appealing on various screen sizes. Test your emails on multiple devices before sending them out. Additional Campaign Strategies We Recommend: - Launch a Monthly Newsletter: This should include new arrivals, style guides, and user-generated content. It’s an excellent way to keep your brand in the minds of your customers. - Seasonal Campaign Integration: Tailor your campaigns to align with holidays and seasons. This approach can significantly boost engagement and sales during key periods. - Re-Engagement Campaigns: Specifically target subscribers who haven't interacted with your brand recently. Offer them unique incentives to rekindle their interest. Next steps: 1. If you found this helpful, please leave a comment and let me know. 2. If you own/run/work at an Ecommerce company doing at least $1 million in annual revenue, message me so my team can audit your email channel to see if there's a good fit for working together.