"The customer decision is always the key!"
"During consultation it is always important for me to understand the fundamental building block of every business model - in other words the customer decision-making process. In my opinion, there is no better theoretical and methodological basis than behavioural economics.
For this reason, each and every one of our consultation projects has an empirical component in which we first attempt to understand the exact reasons why customer choose products from your company.
Together, we can then set the company's direction so that consumer decision making is altered to benefit the company."
Irrational decisions follow clear patterns and can be influenced
Behavioural economics demonstrates that people do not decide rationally and are not fully informed. They often behave (and purchase) hastily, forgetfully, illogically, impulsively, emotionally, myopically, or simply with indifference.
- At the same time, behavioural economics experiments show us that decisions follow clear patterns. So while they are irrational, they are in fact predictable.
- As soon as you have really understood the decision-making process of your customers, you can begin to influence them.
- This will give you a clear advantage over your competitors and a lasting edge. We will show you how your company can profit from behavioural economics.
70% more bookings at L’TUR
L’TUR is the market leader in last-minute vacations and is therefore the first stop for most customers looking to book a trip. Once customers have found their dream holiday, the majority go on to compare prices at a competing site. Given that the prices are often quite similar, they then book with the competition because they happen to be on their website.
Ending the decision-making process
After understanding the decision-making process based on a project run by Vocatus, L'TUR developed a search engine that showed prices from the most important competitors for the selected trip. When L'TUR is cheaper, the decision-making process is finalised and the customer books directly on the website currently being visited: L'TUR.
Fairness is often more important than price
Even when L'TUR is more expensive than the competition, the conversion rate still goes up. Many customers consider it fair that L'TUR makes them aware of cheaper providers. After all, a holiday is often the most important event of the year, so many customers prefer to book with a fair provider. Should there be problems upon arrival, they can also expect to be treated with fairness.
It may at first seem paradoxical to show customers rival prices, especially when the competition is cheaper. But this is how L‘TUR increased the conversion rate on their site by 70%.
"... a joint history of success"
"We're linked to Vocatus by many years' collaboration and a joint history of success. Now that we've jointly won the German Market Research Prize for the second time in 2010, it's clear that the approach which combines analytical and pragmatic thinking works splendidly."
L'TUR Tourismus AG
Making use of people's typical decision-making mistakes
The majority of people would drive 20 minutes halfway across the city to save 10 euros on a radio worth 35 euros. To purchase a television worth 595 euros, also at a discount of 10 euros, the same people would not make the trip.
When 25 different types of marmalade are offered in a store, far less marmalade is sold in comparison to only offering five types. Too much selection makes decision making more difficult for customers, who then end up purchasing nothing.
People evaluate prices according to the situation. The absurdly expensive luxury coffee machine does not sell, but it works as a price anchor for the other coffee machines, which then appear to be inexpensive.
Why are women so irrational?
Do you ever ask yourself what in the world women are thinking? When it comes to shoes, clothing or holidays, women do not behave very rationally. Why is this the case? How can one better predict this "inexplicable fact" and use if for a positive customer relationship? Discover more in our short video.
Why are men so irrational?
Oftentimes, men do not behave rationally. Purchasing decisions are seldom made from a rational standpoint, especially when it comes to tools or electronic devices. Even your customers are not as rational as they might often seem. Discover why by viewing this short video.
"Vocatus helped us to optimally exploit our price potential ..."
€9.6 million more in profits for the FAZ (Frankfurter Allgemeine Zeitung)
Previous price increases at the Frankfurter Allgemeine Zeitung were based on gut instincts and remained rather conservative. Vocatus’ project demonstrated that hardly any customers knew the price of their newspaper nor were they interested in knowing.
Price increase without losing circulation
By using this insight, the Frankfurter Allgemeine Zeitung was able to significantly increase the price of its newspapers without affecting circulation. As a result, the annual profit from circulation revenues increased by €9.6 million.
Project with the highest ROI
For this project, Vocatus and FAZ were recognized with an international award for the highest return on investment (ROI).