Ipsos in SiMa Curiosity Nov/Dec 2017 | Page 16

Are you leveraging your path to Hans Raemdonck purchase as a path to growth? Marketing against the path to purchase An important feature of the path to purchase framework in Figure 1 is that it distinguishes between consumers who are ‘on an active path to purchase’ and those who are ‘dormant’. In any given market, at any point in time, the majority of consumers will be dormant. This point is illustrated in Figure 2. If one omits new category entrants, people buy a new cell phone about every two years. But the path to purchasing a cell phone is relatively short. From our own research, we know that, on average, only two weeks lapse between the time of the trigger and the actual purchase. This implies that, at any given time, only 2% of candidate cell phone buyers are on an active path to purchase – meaning that 98% are dormant. Ignoring the difference between dormant and active consumers is a very inefficient way of spending marketing budget. There is a need for a new approach that markets towards the path to purchase and optimizes the marketing budget as follows: • Target the right people • At the right touchpoint • With the right message • At the right time in the path • With the optimal investment Most marketers do not take this difference between dormant and active consumers into account. For instance, above the line advertising is usually deployed in an undifferentiated way, trying to reach all potential category buyers irrespective of whether they are in the market or not. Figure 2 ACTIVE DORMANT 2% 98% 4