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8/4/2019 The Rise of Social Shopper Marketing
http://slidepdf.com/reader/full/the-rise-of-social-shopper-marketing 1/5
T h e R i s e
o f S o c i a
l S h o p p e r M a
r k e t i n g
T h o u g h
t S t a r t e r s o n C o
n n e c t i n
g S o c i a l
M e d i a a n
d S h o p
p e r M a r
k e t i n g
JANUARY
2011
8/4/2019 The Rise of Social Shopper Marketing
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THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 2
Social media is powered by people, many of whom belong to
one or more shopper loyalty programs. But most marketers
haven’t made the connection. Even though brand marketers
will increase their spending in social media and shopper
marketing more than almost any other format in coming years1,
these budgets are typically managed by different groups that
rarely speak to each other. We expect this to change
dramatically in the very near future.
Why? Because shopper marketing – with its focus on crafting
offers based on intimate knowledge of consumers – worksbetter when accelerated through the peer recommendations
that thrive in social media. And because the ROI o f social
media can be demonstrated more powerfully through loyalty
program data than any other method. This dynamic will lead
marketers to increasingly plan their social media programs
with an eye on tracking shopper data, with an expectation
that their efforts will tie directly to ROI.
This becomes even clearer when you look at the changes in
how media inuences purchase behavior (see image below).
Increasingly consumers are rst hearing about products
through social settings rather than traditional media. While tra-
ditional media still plays an important role in shaping purchase
decisions, marketers need to add proactive social marketing
programs to their promotional strategies.
1 GMA/Booz & Co. Survey of CPG Manufacturers and Retailers, Summer 2010
I N S T O R E
L O Y A L T Y
C A R D
D A T A
R A D I O
M A G A Z I N E
S O C I A L M E D I A & P E E R I N F L U E N C E P R I N T
D I G I T A L
M A R K E T I N G P R O G R A M S
S ho p pe r ma r ke t i ng da ta ca n be fed i n to t he de ve lo p me n t a nd o p t i m i za t io n o f soc ia l med ia p rog ra m s.
T V
O U T D O O R
Social media the new “starting point”
for consumer engagement
Traditional media informs and
reminds post social dialogue
Measure social media spend against
loyalty card behaviors I N
S T O R E
L O YA L T Y
CA R D
DA TA
Use to develop effective
shopper marketing programs
What Does Shopper Marketing Have to Do With Social Media?
Shopper Card Data Highlights Social ROI
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THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 3
Can Shopper Marketing and Social Marketing Work Together?One of the earliest studies of social media’s impact on
loyalty and shopper marketing occurred in 2003. Harvard
Business School’s Dave Godes and Yale University’s Dina
Mayzlin partnered to study how accelerating consumer
dialogue would impact loyalty behavior and sales.
They studied a social marketing program developed by
BzzAgent for Rock Bottom Brewery, where 1,000 Rock Bottom
Loyalty Cardholders - and non-cardholders – were provided
deep experiences with the brand and encouraged to share
their opinions with others. Authentic dialogue was created
in-store, offsite and online.
The Proof is in Loyalty Card Data
Growth in dollarsspent per cardholder
75%
Increase in loyaltytransactions
55%
Increase in programmembership
37%
Learning
Social Marketing was proven to impact loyalty behavior
and restaurant sales. This was measured through loyalty
program acquisition and transaction data provided byRock Bottom Brewery.
A
B C
D
E F
Peer recommendations are most powerful when it occurs
between acquaintances, not friends. Information between
A and D is “new”, leading to stronger results.
New Information Between Acquaintances
Creates Stronger ROI
New Loyal Customers Are More Likely
to Create Signicant ROI
The most powerful incremental WOM may come from
those less-loyal. Those most loyal have probably
already told everybody – both strong and weak ties – in
their social networks about a product or service.
Firm-Created Word-of-Mouth Communication: A Field-Based Quasi-Experiment, David Godes and Dina Mayzlin, 2004.
Opinion Leaders Matter
Only If they Show Loyal Behavior
Opinion Leaders” create the most word of mouth if, and
only if, they are loyal.
H E A V Y L O Y A L T Y
L I G H T
L O Y A L T Y
E XP ER T N ON -E XP ER T
L O W
W O M
V E R Y H I G H
W O M
H I G H W O M
New Loyal>
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THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 4
Is there a Social Media Consumer and Loyalty Cardholder Overlap?
For Starters, Yes in the UK
Majority of Vocal Consumers are
Supermarket Card Holders
Question: Are consumers who are engaged in social media,
and talking about brands, also engaged in loyalty programs?
Grocery brands are surprisingly talkable. According to Keller
Fay (a word-of-mouth research rm), Tesco and Sainsbury’s
are among the 10 most talked about brands in the UK.
Vocal consumers are more likely than the general population
to carry loyalty cards. The number of UK BzzAgents1 who carry
loyalty cards is eye popping.
The United Kingdom is a perfect market to consider; a number
of supermarket chains cover the entire region (not the case in
the U.S.) which makes them nationwide brands. More than
half of their 25 million households carry a loyalty card for at
least one supermarket chain.
Of BzzAgents are
TESCO card holders
Of BzzAgents are
Sainsbury card holders
68%
70%
Product Categories British Consumers Discuss 1+ Time Per Day
FOOD & DINING
BEVERAGES
THE HOME
HOUSEHOLD PRODUCTS
PERSONAL CARE & BEAUTY
CHILDREN’S PRODUCTS
SIXTY FOUR %
FIFTY SEVEN %
THIRTY THREE %
THIRTY %
TWENTY NINE %
EIGHTEEN %
1 BzzAgents are volunteer brand advocates who have self-identied as liking to share their opinions
about brands across social mediums.
Source: Keller Fay, TalkTrack UK, May 2010
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THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 5
4 Steps to Tracking Social ROI Through Shopper Marketing.
COUPONSIN-HOME SERVICES
SHOPPER REWARDS EVENTS
SHOPPER DATA ADVOCACY
RESEARCH
ONLINE REACH
OFFLINE REACH
COUPON REDEMPTION
SURVEYS
MATCHED MARKET TEST
MARKET MIX MODELING
ANALYSIS
IDENTIFY1 ENGAGE2 ACTIVATE3 MEASURE4
Select loyalty program members to
participate in structured advocacy
activities. Targeting should be based
on demographics, psychographics,
shopping behavior and measured
social inuence.
Use loyalty program touch points to
deliver brand experiences that
motivate, educate, and drive activity.
Participants encouraged to share brand
experiences with peers via digital tools
and in-person conversations.
Program impact measured via loyalty
program data, coupon redemptions,
media attribution models.
SAMPLING
We expect a simple formula to emerge among teams
managing social media and shopper marketing. Teams thatuse it successfully will increase the earned reach and overall
impact of shopper marketing programs while increasing the
measured ROI of social channels.
To learn more, go to about.bzzagent.com or call us at 877• BZZAGENT