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Transcript of 1 ADP LUNCH & LEARN CPE PROGRAM Understanding Client Behavior: What You Need to Know Based on a...
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ADP LUNCH & LEARN CPE PROGRAM
“Understanding Client Behavior: What You Need to Know ”
Based on a program by: John Burnett, Prof. of Marketing, Univ. of DenverAdapted for CPE accreditation by SmartPros Ltd. (www.smartpros.com)
The ADP Logo is a registered trademark of ADP of North America, Inc.
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Overview
Segment Overview: Today we are going to discuss how and why potential clients would use your services.
The discussion is broken down into four areas:
I. Client Behavior and Exchange
II. Relational Marketing
III. Client Behavior as Problem Solving
IV. Six Steps in the Decision Process
Following today’s presentation:
Review of Program Reference Material
Completion of Course on www.accountant.adp.com
Print CPE Certificate
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Objectives
Course Objectives: Upon successful completion of this segment, participants should be able to:
Describe how clients and service providers assess relative trade-offs in the marketplace.
Understand what factors influence clients in the decision process.
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Determine who makes purchasing decision
Is the individual acting on behalf of:SelfOrganization
Customer = Consumer = Client
I. Client Behavior and Exchange
Professional Services Do you think you can create a "need“ for your services?
How do you identify who needs/wants your services?- concentrate on a specific population- understand your target market- get to know “them”
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I. Client Behavior and Exchange, Continued
Market Exchange
Relationship between service provider and potential clientAllows both parties to: - Assess relative trade-offs they must make to satisfy needs and wants
Service providers often have formal Policies Objectives(Example: Accountant may only engage in exchanges when profit margin is 10% or higher)
Clients may have personal policies and objectives May not be formalized May not understand what prompts them to behave in a particular manner
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I. Client Behavior and Exchange, Continued
The Marketplace Clients control the marketplace because they have:
a. Free choiceb. Competitive offerings to choose from
Marketplace consists of potential clients witha. Needsb. Wantsc. Purchasing power to satisfy needs and wants
Key Questions How do potential clients make purchase decisions? What factors influence clients in the decision process?
Understanding how clients arrive at these decisions allows you to build an attractive offering.
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II. Relational Marketing
The Nature of How You View Potential Clients Must Change Modern technology is transforming choice Choice is transforming the marketplaceThis new technological push is programmability.
Programmability Allows Accountants to Offer More variety More choicesAccountants and clients can design and implement the “program” that will yield the prescribed product, service or variety that best suits their needs.
Implications of Programmability Clients have many choices Choice is often made on the basis of loyalty Loyalty is created from strong relationships
Technology has created the promise of “anything, anyway, anytime.”
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II. Relational Marketing, Continued
Accountants Must Build Relationships With1. Clients2. Referral sources3. Software providers and other suppliers4. People with influence5. Members of financial community
Accountants Must Learn Their Customers'1. Beliefs2. Interests3. Attitudes4. Self-images
Misreading these characteristics may cause mistaken assumptions that will result in the loss of the sale.
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III. Client Behavior as Problem Solving
Client behavior can be the combination of efforts and results related to the client's need to solve problems.
Client Problem Solving
Triggered by identification of an unmet "need"PhysicalPsychological
Solved by understanding the criteria of how you "want" to fulfill that need
Successful Marketing Is Based on:Creating wantsSatisfying needs* Although the difference is a subtle one, there is some benefit in distinguishing between a client's needs and wants.
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III. Client Behavior as Problem Solving, Continued
Client Decision Making Can Be:Complex or Simple
Complex First-time purchase of product High-priced, long-lasting or infrequently purchased servicesExample: Life Insurance
Simple Repeat purchases Routine products and servicesExample: Personal tax return with few changes each year
Simple Decision Making Becomes Complex with Change in:1. Price2. Product or service3. Quality
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IV. Six Steps in the Decision Process
1) Need Identification
2) Information Search and Processing
3) Identification and Evaluation of Alternatives
4) Product/Service/Outlet Selection
5) Purchase
6) Post-Purchase Behavior
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IV. Step 1: Need Identification
The process starts when an unsatisfied need or motive creates tension.
Identification of Unsatisfied Need1. Internal: Anxiety, perhaps from experiencing a problem2. External: Seeing an advertisement
Unsatisfied Need Recognition1. Creates recognition of the need2. Requires the need to be defined
Need is Resolved Depending on:1. Magnitude of discrepancy between “Have” & “Need”
Ex: I “have to have” a new Cadillac. I “need” a new car.2. Importance of the problem
* Need recognition process is often a function of the type of information we receive and how we perceive it. This is where a need becomes a want.
The above helps to determine:• Is it important enough to proceed to next step?• If not, will decision process be abandoned?
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IV. Step 2: Information Search and Processing
The potential client may seek information to help identify andevaluate alternative products, services, and outlets that will meet the need.
Clients Receive Information from
1. Family
2. Friends
3. Personal observation
4. Competitors
5. Better Business Bureau
6. Advertising
7. Mass media
Clients Rely on Information from
1. Past favorable purchases
2. Past unfavorable purchases
Past Favorable Purchases Lead to
1. Brand loyalty
2. Store loyalty
Example: Client will return to their accountant on an annual basis for tax preparation.
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IV. Step 2: Information Search and Processing, Continued
Information Search Can Identify New NeedsInvolves:
a. Physicalb. Mental activity
Requires:a. Timeb. Energyc. Money
Once the search is complete, how do they process the information?
Five Points to Consider for Information Processing1. Exposure to stimulation (receiving direct mail)2. Pay attention to stimulus (opening the direct mail)3. Perception of incoming signals (understanding the offering)4. Retention and storage of information (direct mail is appealing)5. Retrieval and application of information (responding to the call of action)
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IV. Step 3: Identification and Evaluation of Alternatives
Identification of Alternatives Are Influenced by: Time and money costs Existing information Downside risk Predisposition to particular choice
How do clients choose among competing services?
Evaluation of Alternatives Are Based on Attitudes- What we know- What we feel- How we act
Change in Attitudes Can Lead to Change in Behavior a. Situation/Service-specific
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IV. Step 3: Identification and Evaluation of Alternatives, Continued
Service Providers Have Two Choices to Create a Potential Shift in Attitudes:1. Change client’s attitude to be consistent with your service
2. Change service offering to match client’s attitude
Modifying a client’s attitude may be needed when introducing a new service.
Change in Attitudes Can lead to change in behavior
- Situation/Service-specific
* Changing a client’s attitude can be difficult,
especially when there is a strong loyalty to
another brand or provider.
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IV. The Final Steps in the Decision Process
Step 4: Product Service Selection and Outlet SelectionEvaluation and Selection Phases are closely related.
They choose you, they choose your servicesor
They choose your services, they choose you
Step 5: The Purchase DecisionDetermining Factors:
Amount of effort client is willing to put forth to evaluate your services
Which factors actually influence the purchase?(Did you satisfy their needs?)
What conditions would prohibit/delay the transition to your service?Factors to influence purchase decision
- Advertising - Personal Selling - Referral Discounts
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IV. The Final Steps in the Decision Process, Continued
Step 6: Post-Purchase BehaviorFeelings and Evaluations After the Purchase Are Significant Sets the stage for continual business Provides referral opportunities
Suggestions to Reduce Post-Purchase Anxiety Personalized reinforcement Strong customer service Proactive communication
Note: While the decision process appears to be standardized, no two people make a decision in exactly the same way.Be sure to: Uncover the needs of potential clients Present solutions to meet those needs Ensure their satisfaction with your service
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Review of Today’s Segment
Summary:
Today's program covered
I. Client behavior and exchange
II. Relational marketing
III. Client behavior as problem solving
IV. Six steps in the decision process
Key questions on buyer behavior: How do potential buyers make purchase decision? What factors influence buyers in decision process?
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Discussion Questions
1. Why has it become important to understand client behavior? To what extent do you understand your clients' behavior?
Today's marketplace has become extremely competitive as a result of new technology and increased programmability. Many observers believe that clients now control the marketplace.
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Discussion Questions
2. The program differentiates between individuals who act on their own behalf versus individuals who act on behalf of an organization. To what extent does your practice appeal to one or the other? How does this affect your marketing?
Participant response based on your practice, your clients, and their orientation, as well as your own background, perspective and experience.
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Discussion Questions
3. The program differentiates between simple decision making for routine or repeat purchases versus complex decision making for high-priced or infrequently purchased products and services. To what extent do your practice fall into one group or the other? How does this affect your marketing?
Participant response based on your practice, your clients, and their orientation, as well as your own background, perspective and experience.
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Discussion Questions
4. The program recommends actions that can reduce so-called "post-purchase anxiety." Why is this important? To what extent does your own practice engage in these actions?
The significance of post-purchase behavior is that it can affect "repeat" business as well as influence what clients tell others about your services.
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Discussion Questions
5. To what extent has this program been helpful in terms of managing your own practice? Should we provide additional coverage on this topic in the future?
Participant response based on your practice your clients, and their orientation, as well as your own background, perspective and experience.
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What Now?
Reference Handout Material for Additional Content Information
Review CPE Card
Complete Course by Taking Online Components
Thank you