Insights

The Five Key Drivers of Demand

Whether you are managing a brand, providing a service or even just running a single promotion, there are five key customer / consumer motivations that will determine how successful you will be.

These five drivers summarise how each person's mix of attitudes and circumstances combine to determine how and who they will choose to meet their needs.

If you understand how these five drivers are working together to determine behaviour then you can predict – and influence – those behaviours.

This is our role – providing you with the keys to unlock that knowledge.

We assess your performance on each of the five key drivers: Relevancy, Identification, Accessibility, Value and Confidence.

Armed with this knowledge we can then help you ensure your brand, your product or your service will be the one that meets consumer / customer needs better than your competitors and that it does so at a profit.

Producing more satisfied customers, more loyal customers, more often, and more profitably.

RedRoute: Driving Success

To see how this could work for you, imagine for a moment that you're in charge of retail sales at a major store complex, for example, at an international airport.

From a customer's perspective, there are really 5 key aspects that determine how effective your marketing creativity will be in influencing their behaviour.

1. Relevancy (The customer's perspective: "Do i need this?")
2. Identification ("If I am interested, are these the people I want it from?")
3. Accessibility ("If so, how easy is it to get and what will be the full cost?")
4. Value ("Is the benefit worth that cost and - possibly - the extra hassle?")
5. Confidence ("Did they deliver on the promise so I'll want to use them again?")

Under-performing on any one of these aspects would significantly reduce the efficacy of all of them but do well on them all and you maximise your chances of taking someone all the way through from just "being a potential prospect in the market" to "being a loyal and profitable customer".

So what could you do to make sure you maximise your sales?

At a purely top-line level you might consider if you're doing enough to understand:

• exactly what it is that makes someone more or less likely attitudinally to consider shopping at the airport
• what you can do to make some aspect of airport shopping more relevant to every individual who passes through the terminal (e.g. what range of shops do you have?)
• how that relevance is communicated so that it raises awareness of the possibility of airport shopping and motivates the passenger to ask themselves the next question ("Are these the brands of shops I would consider buying from?")
• how to get the passenger to associate (in their mind) the idea of airport shopping with shopping at your particular airport not just "any airport"
• the creation of a desirable image for "the airport shopper" that both new and existing passengers might want to emulate or be identified with
• your understanding of all the perceived non-financial 'costs' of (and hence 'barriers' to) airport shopping and how to reduce those perceived barriers (e.g. by emphasising "collect and return" or "buy on arrival" etc and creating new ways to make airport shopping easier and more convenient in a heavily time-budgeted space, such as by taking steps to reduce language barrier)
• your understanding of the relative price, promotional and real income sensitivities of airport sales so that value for money perceptions are managed and steered in advance and not just observed to be out-of-line retrospectively (i.e. when it's too late)
• the feedback from your passenger's experiences of airport shopping and whether they would recommend it to others and - either if so or if not - why?
• how to actively get (past) passenger's to recommend airport shopping to others

These are just a few simple examples but we also look at the mecanics (such as customer segmentation, profiling and targeting; the media mix for advertising communications; the way on-line and mobile digital media are used; media synergies; price & promotional effectiveness; and so on) to help ensure you're marketing effectiveness is being maximised in every direction and at every level.

Now think back to your own situation - what steps could you take to improve your own effectiveness on each of these five drivers?

Leveraging the 5 Drivers

RedRoute's range of analytical tools, programmes and services help you see how hard each of the 5 drivers are currently working for you and how to make them work even harder.

These include tools to look at both the overall picture and at the effectiveness of individual marketing activities (e.g. TV and Other Media Ad Effectiveness; Loyalty Programmes; On-line/Off-line synergies; Pricing; and so forth).

Plus we have easy-to-use on-line software applications that enable you to preserve and act continually on the knowledge gained (such as Scorecards; Trackers; Sales Projectors; Ready-Reconers; Scenario Planners; Optimisers and Panels).

To find out more and to discover the benefits of our approach, please visit the other sections of our web site.