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)

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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


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.


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”


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


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.


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.”


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.


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.


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


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


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?


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.


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)


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


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.


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


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


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?


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.



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.



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.



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.



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.


What Now?

Reference Handout Material for Additional Content Information

Review CPE Card

Complete Course by Taking Online Components

Thank you

1 adp lunch & learn cpe program understanding client behavior: what you need to know based on a...

Documents

client behavior

marketplace clients

potential clients

client problem

higher clients

need identification

postpurchase behavior

quality slide