The Hidden Influence of Emotions on Consumers’ ChoicesPublished: January 16, 2008 in Knowledge@Emory
Marketers spend untold amounts of money to define who their customers are, what their needs are, and how to ensure they have a positive experience that will translate into sales. What these marketers and researchers often overlook is the role and importance of emotions as an influence on customer behavior.
For Liam Fahey, a scholar in areas ranging from management strategy and organizational behavior to marketing and competitive intelligence, such oversight is like leaving money on the table.
During a recent lecture before some of Atlanta’s elite marketers, Fahey, chief architect at Emotion Mining Company (he is also co-founder of the Leadership Forum Inc) delved into the often neglected area of emotions to reveal the wealth of data that examining and measuring emotions can offer marketers. The event was sponsored by the Emory Marketing Institute.
“When it comes to deconstructing the customer experience, all too often emotions are not carefully considered. This is especially surprising because every customer experience stimulates emotions. Seeing an ad on TV, using a product, or engaging with a sales person may spawn an array of feelings,” notes Fahey.
In addition, emotions reside at the heart of customers’ needs and wants, contends Fahey, and so-called “rational” customer choices are always influenced, and are often driven, by emotional considerations.
“For example, a customer is leaning toward buying a product because it has superior functionality while being priced approximately the same as a rival product. A rational choice would be to buy the product—better functionality, same price,” says Fahey. “But, what if the customer feels uncomfortable with the brand? What if the retail store makes the customer feel unappreciated? What if the product’s color evokes the negative emotions associated with the customer’s least favorite football team? What might seem like a simple rational choice now becomes a more complex choice process in which the customer’s emotions play a pivotal role and may well lead to a purchase decision that the so-called “rational” choice criteria might not have predicted.”
To this end, Fahey, along with Thomas Snyder, the inventor and founder of Emotion Mining whose background includes neuroscience, medicine and psychiatry, are developing better ways to access, measure, and leverage emotions. Together they are quickly building one of the largest databases of customer emotions, which is why their organization is named ‘Emotion Mining Company.’
Fahey’s firm has developed a set of web-based data gathering and analysis methods that highlight the role emotions play in defining and motivating customer experience. For instance, one unique capability of the methods enables researchers to distinguish between expressed conscious emotions and unexpressed subconscious emotions, the emotions that are not readily or reliably expressed—emotions that customers may not even be aware of themselves.
According to Fahey, the Emotion Mining methods can also deconstruct the customer’s emotional experience as a direct means to detect customers’ aspirations—in short, needs that otherwise would remain under the radar screen for most marketing managers using traditional research methods.
”To understand the emotional life of customers is quite important as it impacts their preferences, choices and commitment to brands and leads to behaviors and ultimately financial performance,” he says.
Positive and negative emotions
One preliminary method Fahey uses gives the percentage of positive and negative emotions associated with any customer experience. “Although it represents the simplest emotion finding, in many instances it alerts marketers to the existence of the need to change the experience, and in some cases, the need to change the experience significantly. An emotion need unfulfilled indicates the presence of a marketing opportunity,” Fahey explains.
To illustrate his firm’s methodology, Fahey offered a case of a financial services firm that was a client of Emotion Mining. In the analysis of the financial services firm selling insurance to consumers, the percentage of negative emotions involved in the average sales transaction was at 70%. “Neither the customers nor the sales professionals were enjoying the buying-selling process. Clearly, something was so fundamentally wrong with the customer experience that if corrected the outcome could only enhance sales,” he says.
Expressed and unexpressed emotions
Distinguishing between what customers consciously “say” and what they subconsciously “feel” beneath their espoused emotions is another aspect of Fahey’s research and work at the Emotion Mining Company.
In the case of the financial firm, Fahey explains, customers consciously indicated they felt confident about the product they were buying and comfortable that it would serve their financial needs. “Thus, feelings of confidence and comfort about the insurance offering must be created for customers; in the absence of these emotions, they will be less likely to purchase what is offered them.”
So, how do marketers tap the needs and wants of customers that otherwise would remain undetected? According to Fahey, to isolate and target “real” customer needs, marketers must uncover the generally unexpressed, rather than focus on the typically expressed, emotions associated with the customer experience—this is a primary intent of the overall Emotion Mining methodology.
At Emotion Mining, capturing the unexpressed emotions or data is culled from a web-based game-like program in which respondents are asked to answer two or three questions of the form: How does something or doing something make you feel? The data gathering process enables respondents to identify six to eight emotion words in response to each question, then write-in ‘verbatim’ what that emotions feels like to them, and a baseline is determined for each emotion. The analysis protocols then automatically generate both quantitative and qualitative outputs including the “conscious” or spoken and the “subconscious emotions” or unexpressed emotions. Analysis of the emotion profiles generated for specific groups or segments (e.g. customers who purchased a product and others who did not) then enables insights to be developed about, for example, the content and sources of key emotions, how the emotions could motivate or inhibit specific types of behaviors, and as a consequence, what action programs might be warranted. (For more information on this technique, visit www.emotionmining.com.)
In the case of the financial firm, follow-up research of customers who had purchased insurance revealed three strong unexpressed “subconscious” emotions about the purchasing experience:
- Insecurity: the experience was exceedingly demanding - involving daunting communications - and socially bewildering.
- Depression: they felt vulnerable, alone, and afraid of the salesperson.
- Anger: they felt trapped in a system that is wasteful of their time, energy, and resources.
“After an extensive analysis of the verbatim associated with these three negative
emotions, the financial services firm’s marketing team concluded that customers were experiencing overwhelming feelings of powerlessness, stupidity, frustration, uncertainty and distrust in the purchasing experience,” notes Fahey. “The team concluded that even customers who had bought the product felt that the whole buying-selling process was disadvantageous to them, disempowering of them, and dysfunctional for them.”
A second analysis focused on those customers who did not buy the insurance offering. “This customer segment also revealed the same three unspoken emotions. However, much to the surprise of the marketing team, the three emotions meant something different compared with those who purchased the product,” he says. For instance:
- Insecurity: they were overwhelmed by lots of questions and troubled by the unnaturalness of it all.
- Depression: they felt lifeless, weak, defeated, and demeaned by what they perceived as the evil encountered in the buying-selling process.
- Anger: the unproductiveness of “having to lose to win” was breeding resentfulness, rebelliousness, and resistance.
A number of insights into customers’ needs emerged from these analysis, notes Fahey. “First, engaging with the firm’s sales force caused a deep and persistent negative emotional impact on both those who bought and those who had not. Unless the sales force can be trained and educated to understand and detect these emotions, the firm could not expect any dramatic upturn in sales force productivity.”
Second, the customers who did make a purchase met their (functional) need for insurance, but it was clear their emotional aspirations were not met. “Emotions around insecurity, depression, and anger that persist long after insurance is purchased strongly indicate that these customers are not likely to generate pleasant “viral” promotion of the product, the experience, or the brand,” warns Fahey.
Third, in unraveling the customer experience, the unpleasant emotions were directed not so much at the insurance offering, but at the buying-selling process. “The emotions spoke to the context of the buyer-selling engagement. The unspoken and unrecognized feelings of powerlessness, stupidity, frustration and distrust were evoked by the selling process,” says Fahey. “Clearly, the buying process had to be reengineered if customers were to feel involved and empowered and trusted.”
Fourth, the deeply felt unpleasant emotions highlighted the need for a total redesign of the buying-selling process. “Customers needed to feel (and be) empowered, so that they would be a real contributor to the process, and so that they would experience a relationship built on trust and sharing,” adds Fahey. “In short, they would feel that they were managing their own affairs and not having their choices managed for them.”
Finally, the emotional differences between those who did and did not purchase strongly indicated that each customer could and should be treated as a unit of one, as a customer with unique emotional aspirations. “The implication here was also dramatic: each sales person has to be skilled in quickly reading and attending to the person’s emotions sitting across the table,” says Fahey.
The action program
Based on these findings, Fahey’s firm recommended an action program for the insurance company client. According to Fahey, an emotional competency program was designed to educate and train the entire sales force in the skills required to recognize and respond to a range of issues and challenges likely to be raised by customers, to specific sets of questions typically posed by customers, and to behaviors often exhibited by customers feeling powerless, frustrated and antagonized. A set of new training tools were developed that enabled the sales force to “manage” the analysis side of selling insurance so that customers could participate in the process in ways that allowed them to feel and to be real contributors to the process.
“The results were startling,” adds Fahey. “Average sales per salesperson increased by 15% over a two-year period. Customer satisfaction scores improved significantly and sales force training and development savings proved substantial due to a reduction in turnover.”
Once again this illustrates the power that can be tapped when the customer experience is deconstructed and emotions are examined, notes Fahey.
Fahey’s lecture is just one of the many offering of Emory University’s Emory Marketing Institute (EMI). EMI is a research group that focuses on the advancement of brand-driven business performance. Visit the EMI webpage to learn more and to access free managerial articles.
Photo: Liam Fahey, left, and Raj Srivastava, executive director, Emory Marketing Institute.