A five-part series about the implementation of preference management
By framing the collection process as a
progressive conversation, enterprises are better able to understand and plan
for the true nature of customer communications. Research indicates that
customers reveal their preferences in iterative steps related to their evolving
interest in what a business has to offer and their perception of what the
business will do with the information that is disclosed.
Research clearly shows that customers are
much more willing to provide information when it is: A) presented in context, B)
Offers a clear benefit to them (i.e. saves time, saves money, rewards, etc.),
and C) Is easy to understand and an easy task to complete.
In many ways, preference collection lies at
the intersection of a customer’s interests and the interests of the company
hoping to serve them. Seen in that context, it is clear that the interaction
can be compromised when one party’s interests outweigh the interests of the
other party.
For example, a lengthy and complicated
registration page can act as a barrier to a trial software download because the
customer’s interest in the product is not significant enough to justify the
time required to fill out the form. The company over-emphasized its own
interests at the expense of the customer and as a result, lost a valuable
prospect. When trust is not established
slowly between the customer and the company, the customer is more likely to
question how the information being collected about them will be used. In fact, According
to recent research from Eloqua, mean conversion drops significantly when more than 6 fields are on a form1.
Eric V. Holtzclaw is
Chief Strategist
of PossibleNOW. He's a researcher, writer, serial entrepreneur and challenger-of-conventional wisdom. His book with Wiley Publishing on consumer behavior - Laddering: Unlocking the Potential of Consumer Behavior - hit bookstores last summer. Eric helps strategically guide companies with the implementation
of enterprise-wide preference management solutions.
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