The only way to arm yourself against the storytelling effect is to realize that your brain has pitfalls. The first step in the right direction is to read this article, which will help you recognize it better and have less influence on you. But hey, sometimes it's nice to dream away in the fairytale world of marketers. As long as we don't have to buy anything.
ecent years, no frills has become an increasingly well-known phenomenon. How come consumers seem to be willing to pay less and less for good service? Two reasons for the price-conscious consumer are the economic crisis and the increasing accessibility of information via the internet and mobile. The consumer is becoming smarter and therefore more critical. The internet ensures that consumers can compare prices more easily.
With the ever-increasing smartphone population in the Netherlands, this trend will continue. 62% of consumers now already have a smartphone and therefore have access to the internet almost always and everywhere. Almost half of consumers already use their smartphone in the store, also known as showrooming . This means that customers can increasingly go directly to the store to look for the best deal and to the experiences of others.
TNS NIPO no frills showrooming
In the eyes of consumers, providers increasingly resemble each other
Consumers have access to more and different sources of information. Markets are becoming more transparent as a result, and customers also experience less difference between providers in a market. We have increasingly seen this trend in our research in recent years: providers are becoming more similar in the eyes of consumers. The Customer Centric DNA research shows that less than 10% of consumers experience clear differences in the offerings of companies in the telecom, energy and supermarket sectors.
When suppliers are barely able to differentiate themselves from each other, customers will often choose on price. Why pay more if you don't feel like you're getting something extra in the form of service or quality? A division seems to be emerging between more price-oriented and more
No frills customers know exactly what they are going to buy before making a purchase
In the Customer Centric DNA research, a no frills customer is defined as a customer who is always looking for the lowest price and is not willing to pay more for good service. Almost one in five customers can be classified as a no frills customer (with some differences per industry).
TNS NIPO no frills sector
A no frills customer is a consumer who is price-conscious and willing to compromise on service, but who exactly is this customer? In general, we can say that women are slightly more willing to compromise on service and pay a lower price. No frills customers are on average younger than customers who are willing to pay more and, not pakistan phone data surprisingly, have a slightly lower income.
As mentioned, the internet can play a role in the no frills principle. It is therefore interesting to see whether no frills customers behave differently online. This is the case. In general, we see that they are more online-oriented than less price-conscious customers. In general, they are slightly more inclined to 'like' Facebook pages of companies, to get good deals and win prizes.
They read online messages more often, prefer the online channel as a sales channel more often and also use comparison sites more often as a source of information for a purchase. More often than less price-conscious customers, no-frills customers have already decided what they are going to buy before the purchase. This is an extra challenge for companies. Do employees in the store still have added value?
No frills only successful in supermarket sector so far
If you want to influence this consumer, the internet seems to be the ideal channel. No frills customers often make their choice before they actually make the purchase, by visiting comparison sites or consulting other online information.
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