WelcomeIs your online strategy struggling? Do you even have an online strategy? The third release of the Industry-Wide Web Summit will unite home furnishings retailers, manufacturers, representatives and suppliers to:• Brainstorm new solutions • Work through existing conflicts• Bury old misconceptions
Yo u C A N s h o w a n d s e l l f u r n i t u r e o n l i n e .
W e ’ l l s h o w y o u h o w .
The Agenda1:00 to 1:15 // Welcome
1:15 to 1:45 // How to Implement Email Marketing and Social Media for Results David McMahon | PROFITconsulting
1:45 to 2:15 // Throw Web-Based Marketing Into Your Mix Ron Carpenter | Strategic Marketing Solutions LLC
2:15 to 2:45 // Create an Engaging Website that Brings Your Brand to Life Online Renee Loper | Aspenhome
2:45 to 3:15 // Demystifying the Online Furniture Shopper | David Lively | The Lively Merchant
3:20 to 4:00 // Roundtable expert discussion
Mary Frye
David W. McMahonPROFITconsulting
[email protected]://twitter.com/profitcoacheswww.profitconsultingblog.com
www.profitconsulting.net
How to Implement EmailMarketing and Social Media
And Get the Best Results
They Go to Your Web Site – Invite Them To Join Your Club!
Give Communication Options
Show Relevance to Your Customer
Ask For Information But Don’t Require Everything
Auto Confirm Subscription Immediately While They Are Hot
Customers Come Into Your Store – Most Do Not Buy, Yet
Get their information so that you can follow up – increasing the chance of a be back.
Export these opportunities from your system!
Send Them a Simple Thank You and Ask a Question!
Follow Up With an Offer of Additional Assistance
Ask Them for Their Feedback With a Survey –
You Will Get Additional Leads
Give Them More Ideas and Link Back to Your Website So They Can Continue Shopping
If a Customer Is Not Ready to Buy, Offer Them a Quote
This is a less intrusive way of getting their information. It provides the customer with value and you with a FOLLOW UP tool!
Export quotes also – some will lead to sales.
Offer Assistance and Make a Call to Action
Offer an Incentive
When You Do Make a Sale, Send a Thank You With Value
Export a couple times per week and send thank you notes on your written sales.
Most Sales Need Follow Up. Assure the Customer That They Will Be Taken Care Of!
Give Back to Your Customers For the Next Time. It is Great Word of Mouth.
Schedule Delivery, Pick Up, or ServiceSave time on playing telephone tag and export all those
customers whose merchandise is ready and send one email a few times per week.
Save Time on Playing Telephone Tag - Send One Email a Few Times Per Week to All Those Customers Whose Merchandise is Ready
Confirmation of Delivery, Pick Up, or Service
After scheduling your deliveries export to send your customers a delivery reminder.
Set Yourself Apart - Include Time Window, Date, Delivery Address, and COD balance in One Classy Format
Survey Again After Delivery and Keep It Simple!
What’s Next?Ask your customers, “What is your future home furnishings project?” –
Export this data and send to the next purchase contacts.
Target Your Best Customers at the Right Time With Relevant Contact
…and There Is No Better Time Than Their Birthday!
What About General e-Blasts?
Export and send to your entire database with caution! This is permission marketing – customers can opt-out.
e-Newsletters are Great e-Blasts
Personal Invites to Events Are Also Good e-Blasts If Sent From
the Salesperson
It’s Time to Build a Following – Look What Others Are Doing
Your Customer Will Follow You if You Give Them What They Want – “Creative Ideas”
People Communicate Now With Computers and Mobile Devices
How to Start? Sign Up, Follow, Place Follow Me Links on Your Web Site, Tweet Something of Relevance. Don’t Stop.
Some companies get it: simmons.com
And For Those Who Are on the Move – Get Mobile Software for Your
Smart Phone
Results – Email Marketing
Average Open Rates (%) e-Marketing Users
17%
34%
48%
0%
10%
20%
30%
40%
50%
60%
General Campaigns or e-Blasts (13%-42% Range)
e-New sletters and PersonalInvites (15%-52% Range)
Highly Targeted Contact(33%-75% Range)
Campaign Content Type
Results – Twitter and Facebook
http://siteanalytics.compete.com/twitter.com+facebook.com/
What Message Are You Sending
Your Customers?
David W. McMahonPROFITconsulting
[email protected]://twitter.com/profitcoacheswww.profitconsultingblog.com
www.profitconsulting.net
Thank You!
Strategies For Integrating Web-Based Interactive Marketing Into Your Store's Marketing Mix
The Marketing Environment IsChanging Faster Than We Are
Ron CarpenterStrategic Marketing Solutions
• Strategic Marketing Solutions is a management consulting firm based in Greensboro, NC.
• SMS serves manufacturers, retailers, and suppliers in the home furnishings industry, providing consulting services to clients in the following areas:
• Recent clients Include the NHFA, Broyhill, Home Meridian, Custom Decorators Inc., & Thomas Hahn & Home
• Previously served in senior marketing and consulting positionsat Magnussen Home, Lea Industries, & BDO Seidman
Strategic Planning Market Research and Analysis Brand Creation, Development and
Reinvention New Product Opportunity Analysis/
Development Selection and Implementation of
Marketing Technology Solutions Transformational Business Change
Topics For Discussion This Afternoon
• Your Cheese Has Moved!! Why This Summit May Be Your Most Productive Afternoon at This Market
• How Do You Move Your Website and Interactive Marketing Program Up The Continuum? Enhancing Your Site's Capabilities Over Time
• Key Tactics To Leverage Your Web Investment Interactive Marketing Strategies
• 1 + 1 Can Equal 3Integrating Your Store's Web Site Into Your Marketing Mix
• You Don’t Have To Do This Alone!! Selecting The Right Key Vendors and Resources
YOUR CHEESE HAS MOVED!!
Why This Summit May Be Your Most Productive Afternoon at This Market
Change In The Furniture Retail SectorChanging Business Models and Practices
Source: Furniture Digest – Mann, Armistead, & Epperson
How DoConsumersSort ThroughThese Options?
They UseThe WebTo DecideWhat To BuyAnd WhereTo ShopBefore They Leave Home!
Who Moved My Cheese? by Dr. Spencer M. Johnson
A Parable For The Furniture Industry
Change Happens They Keep Moving The Cheese Anticipate Change Get Ready For The Cheese To Move Monitor Change Smell The Cheese Often So You Know When It Is Getting Old Adapt To Change Quickly The Quicker You Let Go Of Old Cheese, The Sooner You Can Enjoy New Cheese Change Move With The Cheese Enjoy Change! Savor The Adventure And Enjoy The Taste Of New Cheese! Be Ready To Change Quickly And Enjoy It Again & Again They Keep Moving The Cheese.
- “Haw” – Wall of Cheese Station N
Traditional marketing tactics are not as effective as in the past
They will be even less effective tomorrow
The Internet is the New Yellow Pages
Internet Is Mainstream76% of all U.S. Households are online
Source: MRI Spring 2008. Based on Adults 18+
Today, 70% of adults are actively online
23,596
32,48134,995
32,011
20,739
12,145
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
18-24 25-34 35-44 45-54 55-64 65+
Pers
ons (
in 0
00's
)
AgeOnline Not Online
US Online Adults by Age(in 000’s)
Audience Penetration by Media
53
Audience Penetration, By Media (U.S. Adults, 18+)
73.0% Internet
60.5% Sunday Newspapers
52.5% Daily Newspapers
36.7% TV, Prime Time
21.4% Radio, AM Drive
17.7% Radio, PM Drive
13.7% Cable, Prime Time
0%
20%
40%
60%
80%
100%
1999 2000 2001 2002 2003 2004 2005
Consumers are Spending More Time Online
Source: “US Entertainment and Media Consumer Survey Report 2007” JupiterResearch (April 2007); Universal McCann (June 2007); eMarketer (Feb 2007); Google internal estimates
Total US Advertising SpendMedia Consumption
14% Newspapers
20% Direct Mail
22% TV
6% Online
21% Other Media
5% Yellow Pages4% Magazines
7% Radio
Watching TV14 hours per week
Listening to Radio4 hours per week
Reading Magazines, 2 hours
Reading Newspapers, 1 hour
Going Online14 hours per week
41% of their time RetailersReallocating
TheirMarketingBudgets
To ReflectConsumers’
MediaPreferences
The Opportunity
$303 Billion (2007E)
HOW DO YOU MOVE YOUR WEBSITE AND INTERACTIVE MARKETING PROGRAM UP THE EVOLUTIONARY LADDER?
Enhancing Your Site's Capabilities Over Time
Where Is Your Store Now In Its Web Evolution?
• Missing In Action Site - No Site or Program• Dragnet Site – A Site With Just The Facts• Movin’ On Up Site – Templated, Buying Group Site• Web Committed Site - Proactive Site• Fully Engaged Site - Website Part Of An Integrated
Marketing Mix• E-Enabled Business - Traffic To Integrated Website Driven By
OnLine Advertising
Missing In Action Site
Dragnet Site
Movin’ On Up Site
Web Committe
d Site
Fully Engaged
Site
E-Enabled Business
Missing In Action Site No Website
No URL
No WebsiteYour Name IsServing OtherRetailers
Your Brand Identity On theWeb Is For Sale
Dragnet SiteJust The Facts
• Basic Store and Corporate Information
• USP or Positioning Presented
• Not Interactive, Relatively Static
Movin’ On Up SiteTemplated Site, Often Buying Group Association
• Sites Developed On Buying Group Template
• All About Product
• Product & Promo Updated Periodically
• Undifferentiated Presentation, Brand Identity Indistinct
• Examples Developed ByAYR1 and FurnitureDealer.Net
Web Committed SiteProactive Site
• Differentiated, Distinct Brand Position Presented• Product & Promotions Updated Monthly/
Quarterly• Content Updated Monthly/Quarterly• Look & Feel Updated Every 12 – 24 Months
Fully Engaged SiteWebsite & OnLine Marketing Integrated Into Marketing Mix
• Differentiated Brand Position Presented
• Marketing and Positioning of Website Fully Integrated Into The Other Elements of the Store’s Marketing Mix
• Ads• Direct Mail• Promotions• Signage/POP• Truck Graphics• PR
Fully Engaged SiteWebsite & OnLine Marketing Integrated Into Marketing Mix
• Differentiated Brand Position Presented
• Marketing and Positioning of Website Fully Integrated Into The Other Elements of the Store’s Marketing Mix
• Ads• Direct Mail• Promotions• Signage/POP• Truck Graphics• PR
E-Enabled BusinessOnLine Advertising Drives Traffic To Integrated Website
Free Standing Insert
Website
StreamingVideo ofAds On Website
E-Enabled BusinessOnLine Advertising Drives Traffic To Integrated Website
1st Listing, Highest PPC Through Simmons
3rd Highest Listing PPCOn Store’s Own Purchase
1st Listing On SEO OrganicSearch
E-Enabled BusinessOnLine Advertising Drives Traffic To Integrated Website
Customers within Rotman’s Delivery Area Can Shop, Buy OnLine or Complete A Purchase after Visiting Their Store
KEY TACTICS TO LEVERAGE YOUR WEB INVESTMENT1 + 1 CAN = 3
Interactive Marketing Strategies
Slide Graphics - Credit To E-Storm
Online Marketing
• Search Engine Optimization (SEO) – Organic Search• Search Engine Marketing (SEM) - Pay Per Click (PPC)• OnLine Display Advertising• Social Media Marketing
complemented by and integrated with• Off Line Advertising & Promotion (Awareness & Branding)
– ROP– Free Standing Inserts– Direct Mail/Direct Email– Broadcast (TV & Radio)– Outdoor
• Viral/Word of Mouth (WoM)– PR– Event Merchandising/Promotion
Customers Consume
Online Media
What Does This Mean For Your Business?
Organic Search:
Receives Higher than average conversions
when implemented in conjunction with
other online channels
Viral/WoM:Buzz,
Awareness, Boost SEO Rankings
PPC:Targeted
Audience, Boost CTR for
SEO
Online Display
Advertising: Branding,
Awareness, Drives leads, Boosts CTR for PPC and
SEO
Mobile Advertising:
Targeted audience, Drives visits to website
via search, Immediate
engagement
Offline Display:
Awareness, Branding, drives visits via visitors
searching for brand/products
Customers Use All ChannelsSo Should You
Search Marketing
40%
44%
33%
10%
7%
57%
15%
16%
18%
34%
36%
50%
60%16%
15%
12%
10%
6%
6%
4%
2%
2%
2%
1%
0%
22%
60%
50%
36%
40%
44%
34%
33%
18%
16%
15%
10%
7%
57%Search engine
Manufacturer’s website
Colleague
Blog review
Content website
Magazine/Trade publication
Manufacturer’s email
Trade show
Online retailer
Local retailer
Community websites
E-mail newsletter
Manufacture’s Blog
Search Is Preferred By Your Customers
First ChoiceTotal Choice
RESEARCH/ENGAGEMENT
CONSIDERATION/COMPARISON
PURCHASE
IAB Engagement studies 2007
63%First began researching
57%Narrowing down options
42%Deciding where to buy
51%Making final decision
% Gathered Information Mean # Sources Used
2.8
2.7
2.8
2.5
The Search “Funnel”They Use It Time And Again In The Shopping Process
• Be there at each stage
• Do you know when & where your audience is searching?
• Are you rotating ads based on searches?
• Do you use keyword insertion to customize product ads in Google, Yahoo and MSN?
Source: Long & Winding Road
It’s not a funnel!
When 1+1 = 3: SEO & PPC
SEO
PPC
+29% Higher Return
Why Search?Your first ad dollar spent should be in Search!
• Search is the best opportunity to engage “intent-driven” prospects who have self-identified their category, brand and/or product interest
–Search is relevant to your target audience–Search can be used as a branding tool–Search has high penetration in all markets
Furniture Shoppers Are Furniture Searchers!!
• Don’t just spend, spend wisely– Competitive analysis– Pre-launch optimization (SEO, PPC)– Creative & offer testing– Website optimization & analysis– Targeting: Geotarget, dayparting, etc – Multichannel analytics
• With minimal effort, improve performance by 20-30%
What Can You Do With Search?
Online Advertising
When 1+1 = 3: Online Display and Search
Online Displa
y
Search
Marketing
+244%
Higher
Results
Local marketingTargeted
CampaignsPortals
Sales Social Media Advertising Contextual
Effective Channels to Test
Online Advertising – Best Practices
• Online Advertising is effective when
– Media is well selected
– Messaging is differentiated
– Tracking is in place
– Offer is easy to act on
Social Media Marketing
Why Has Social Media Exploded?
Why Has Social Media Exploded?
• Because it works!– 7% increase in word of mouth advocacy
unlocks 1% additional company growth– 2% reduction in negative word of mouth
boosts sales growth by 1%
Why Social Media Marketing?
Business Adoption of Web 2.0 Tools
1 + 1 CAN EQUAL 3
Integrating Your Store's Web Site Into Your Marketing Mix
Define Your Brand & Leverage It
• A Brand Is…– A Personality– A Promise From the Retailer to their
Customer– An Expectation– An Asset with a Financial Value
Brand Development PyramidThe Essence Of Branding
Personality
Values
Reward
Features
Price
Margin
+
-
Emotional
Rational Function
Strategic Market Planning
Strategy
Customer Needs, Market Products
Tactics
Marketing Mix
Message/Positioning, Media, Target Distribution Channels
Advertising & Promotion, Direct Consumer Communication, Website, Public Relations, Merchandising Asst, Sales Process, Visual Merchandising
Elements of a Retail Marketing Mix• Advertising & Promotion
– Broadcast – TV/Radio– ROP– Free Standing Inserts– Outdoor– Direct consumer
communication• Direct mail• Email blasts• Newsletter
– Interactive• Pay Per Click• Banner Ads
• Sales associate training & sales process/tools
• Merchandising• Store Design/POS
– Store design– Sales aids/signage
• Public relations– Corporate– Community activities– Affinity marketing
&• Website
– SEO / SEM– Corporate positioning– Product positioning– Promotion positioinng
The Marketing Funnel
Close
Sales Process
Merchandise Assortment/Display
Advertising / PR/ Direct Consumer Communication, OnLine
Advertising
Website
Suspects
Prospects
Customers
Every Element Of The Marketing Mix ShouldConsistently Support Your Brand Position
The Result: Sales Growth,Higher Margins, Increased ConsumerSatisfaction and Brand Loyalty
Integrated Marketing Can Drive Superior Results
Advertising& Promotion
Merchandise Asst/Display
Sales Training/ProcessPR
Individual Project Approach Integrated Marketing
Website/Interactive Marketing
1 + 1 Can Equal 3!!
YOU DON’T HAVE TO DO THIS ALONE!!
Selecting The Right Key Vendors and Resources
• “Old Days” are gone• Vendors provide limited interactive
marketing help• Old tools work at the top of the funnel, but
interactive marketing is a requirement• Ten years ago, - average consumer visited
over 5 stores• Today, its less than 2• The web and our time short culture is the
difference.
Change is NecessaryYour Cheese Has Moved
• Inside The Industry– Your Trade Associations– Vendors At the Retailer Resource Center
• Web Developers• E-Enabled Product Database Vendors• Advertising & Marketing Service Providers With Interactive
Capability
– Talk To A Wide Mix Of Potential Resources– The Upside Is That They Understand The Industry & Your
Business– The Downside Is That There Are A Lot Of Canned Solutions Out
There That Will Not Make Your Brand and Your Store Distinct– If You Don’t Have Time, Get A Third Party
To Help You Find The Right Solution
Help Is AvailableWithin The Industry & Outside Of It
• Outside The Industry– Interactive Marketing Trade Association & Groups– Local and Regional Vendors
• Web Developers• Advertising & Marketing Service Providers With Interactive Capability• Try Your Local Ad Club• Look At Peer Retailer Websites For Ideas & Potential Vendors
– Talk To A Wide Mix Of Potential Resources– The Downside Is That They Often Don’t Understand Our Industry &
Your Business– The Upside Is That They Often Are Ahead Of The Market
Technologically, Will Look At Your Business With A Fresh Eye, And Can Make Your Brand and Your Store Distinct
– Again, If You Don’t Have Time, Get A Third Party To Help You Find The Right Solution
Help Is AvailableWithin The Industry & Outside Of It
The Key Is To Act!!
Change Is Hard,But Delay Will Erode
Your Competitive Position
Every Business Has Its Own Culture & ProcessesThe Way We Do Things Here
• Our Current Marketing Mix Made Us Successful In The Past
Yet, Our Cheese Has Moved!!!
• If You Have No Web or Interactive Marketing Strategy, You Must Get Started & Make It A Part Of Your Marketing Mix
• If You Have A Web Site And/Or An Interactive Marketing Program, Has It Been Integrated Into The Balance Of Your Store’s Marketing Mix?
• Are You Giving The Consumer The Information They Want When They Want It?
• Will Your Store Be Found In Their Search Process?
Change Can Be Hard
Technological Change Can Be Intimidating
Change Can Be Hard
The Challenge Is Changing Your Culture & The “Way We Do Things Here” - It’s All About People
Change Can Be Hard
At The End Of The Day, It’s About You And Your Willingness To Grow & Adapt
Conclusion4 Key Success Factors
1. Urgency and Adaptability: Increase your velocity and agility in dealing with the accelerating rate of change and its unpredictability
2. Become Distinct or Extinct: Compete more effectively for your “share” of the consumers’ mind and shopping dollar by defining your brand and unique selling proposition.
3. Compete in the Information Economy: The Internet has changed the rules. Adapt and leverage this opportunity or lose the game.
4. Build the Intellectual Capital To Compete: Put together the right team of internal and external partners to address these issues. Commit to enhancing your personal intellectual capital regarding interactive media. Your business depends on it.
Reneé LoperDirector of Marketing & Communications
601 N. 75th AvenuePhoenix, Arizona 85043Office: 602-442-5611Cell: 917-923-4236Fax: 602-442-5718
before
601 N. 75th Avenue
after
PROCESSGetting from then to now
Gather Feedback Different users have different needs and priorities online
Example
1
Identify & PrioritizeSite FixesOverlaps among user needsMost important
1 2Gather Feedback Different users have different needs and priorities online
Example
PROCESSGetting from then to now
PROCESSGetting from then to now
Plan & Allocate ResourcesLeverage existing content & assets where possibleResources: Roles, Inhouse/OutsourceRoadmap
3
Identify & PrioritizeSite FixesOverlaps among user needsMost important
1 2Gather Feedback Different users have different needs and priorities online
Example
PROCESSGetting from then to now
Plan & Allocate ResourcesLeverage existing content & assets where possibleResources: Roles, Inhouse/OutsourceRoadmap
3
Identify & PrioritizeSite FixesOverlaps among user needsMost important
1 2Gather Feedback Different users have different needs and priorities online
Example
Execute4
PROCESSGetting from then to now
Plan & Allocate ResourcesLeverage existing content & assets where possibleResources: Roles, Inhouse/OutsourceRoadmap
3
Identify & PrioritizeSite FixesOverlaps among user needsMost important
1 2Gather Feedback Different users have different needs and priorities online
Example
Execute4
5
DESIGN PRICIPLESConsistent brand image
print online
• Repurpose existing content wherever possible• Set up schedule and content to make refreshes easy• Know when or what to outsource• Content Management System• It’s never “done” and that’s a GOOD thing
MAINTENANCETips to make it easier
Demystifying the Online Furniture Shopper
David Lively
This reality has presented online retailers with opportunities to grab consumers wanting to buy. And they've done just that. The 20 online-only home furnishings retailers highlighted in this report alone sold about $1 billion worth of furniture during 2008. ~Furniture Today July 2009
~Furniture Today July 2009
Previous research has estimated that between 70% and 80% of U.S. adults have purchased something online. And according to Furniture/Today and HGTV's 2009 Consumer Views Survey, 44% of adult U.S. consumers have purchased home furnishings online. Occasional tables, entertainment furniture and youth furniture are the leading furniture categories purchased online, followed by desks and master bedroom. Home accents, such as wall décor and area rugs, have higher purchase rates through the Web. ~Furniture Today 7/2009
The experts are
"If you're not converting to commerce at your Web site, I don't think you'll be around 10 years from now,”said Ed Stevens, chief executive of Shopatron. His San Luis Obispo, Calif., firm provides e-commerce applications. It is a growing business, especially within home furnishings.
saying...
The industry is currently selling
$12.3 billion online, representing 9% of all category sales, according to research firm
Forrester Research Inc. These numbers are
expected to rise to 11% this year and more
than double to $26.7 billion by 2012, the firm estimates.
Jewelry and furniture will pace online sales this holiday, comScore says…
“The most robust growth in online holiday shopping will occur in Jewelry & Watches, where sales are expected to increase 67% year-over-year to $739 million in November and December of this year from $443 million a year ago, comScore Networks Inc. projects. The next strongest growth will occur in Furniture, where November-December sales will be
up 58% to $1.7 billion from $1 billion a year ago,
comScore says.”
source: Forrester 2008, Morgan Stanley
Home furnishingsCosmetics / fragrances
Apparel / footwearMovie tickets
JewelryFlowers / cardsOffice supplies
Consumer electronicsToys/ video games
baby productsgift cards / certificates
booksMusic/Video
other event ticketsComputer products
9%9%10%10%11%12%13%
18%19%19%
21%24%24%
27%45%
Proportion of ecommerce sales as a % of retailing subsectors (US market)
"One cannot afford to not be in e-commerce," said Ethan Allen Chairman and Chief Executive Farooq Kathwari in an interview.
"We knew that the longer we waited on the Web, the more risk that someone else would be capturing that demand," said Jason Camp, senior vice president of retail.
“We estimate between 60% and 70% of people spend some time on the Web before or during the purchase process," said La-Z-Boy Chief Marketing Officer Doug Collier. With "more than a few million" visitors to its site each year, Collier said, La-Z-Boy wants to convert as many of those to sales as possible.”
Online marketplace?“In 2009 the wheat came off the chaff in online retailing,” says Nikki Baird, managing partner at research firm RSR Research. “The online retailers that just count on being the lowest price provider aren’t going to be around for the long term. The ones that survive and grow will be ones that run a very efficient operation and give consumers the best customer service and shopping experience.”
The strategy for identifying your marketing targets is based on two tried and true observations:
The best customers for your product are existing customers. The people who have already used your product or a similar one or other people like your existing customers are most likely your best customers.
Birds of a feather flock together. In choosing a place to live, people tend to seek out neighborhoods compatible with their lifestyles, where they find others in similar circumstances with similar consumer behavior patterns. Once established, the character of a neighborhood tends to persist over time, even though individual residents come and go.
Nielsen ClaritasPRIZM® Profile Analysis● ● ● ● ● ● ● ●
Lively MerchantBuy Home Furnishings by Internet
WhereUnderstanding Market Potential Index | Market Potential Index Report | 89 Locations - 50 mile radius
WhoUnderstanding PRIZM Profile Reports | Profile Charts & Reports
AppendixPRIZM Cluster Narratives
The nature of the research
We then use MPI reports which illustrate the PRIZM market potential for each of the DMAs in the study. DMAs are ranked by potential. Each ofthe MPIs shown on the report is part of a national index of the propensity to be online furniture buyers, weighted to reflect the PRIZM Clusters present within the market, using PRIZM
An MPI of 122 shows that residentsof this DMA should be 22% more likely than the national average to buy furniture online.
To compute MPIs, Claritas calculates (1) the percentage of households within each Cluster ineach of the markets reported on and (2) the equivalent of a sixty-six Cluster PRIZM profilereport for the product, and then calculates a weight-averaged MPI for each of the markets.
PERCENTAGE OF MRI SURVEY HOUSEHOLDS THAT FIT THE PROFILE.
Buy Home Furnishings by Internet, 1yr (A) (4.31%)
Game Plan Categories Charts are useful in sizing your marketplace. PRIZM Clusters arescored according to their cross section of likelihood to be a customer by their likelihood to purchase a product in general. The resulting matrix consists of a grid of four likelyscenarios: High penetration of the households using a product coupled by a high propensityto use the product, followed by High/Low, Low/High, and Low/Low combinations. Thisopportunity information is directional and does not replace the effectiveness of but instead complements the use of target groups. Custom target groups focus more on inherentdemographic characteristics as opposed to sales opportunity characteristics.
Game Plan Categories Charts assign PRIZM Clusters to one of four categories as indicated in the chart described on the following page.
So WHAT IS A prizm?
PRIZM culminated years of research and development in a groundbreaking methodology that allows marketers to seamlessly shift from the ZIP Code level through the block group, ZIP+4, or ZIP+6 level—all the way down to the individual household level—using the same set of 66 segments. This single set of segments affords marketers the benefits of household-level precision in applications such asdirect mail, while at the same time maintaining the broad market linkages, usability, and cost-effectiveness of geodemographics for applications such as market sizing and site selection.
PRIZM Profiling
Claritas provided specifications for a PRIZM profile “Buy Home Furnishings by Internet, 1yr” using the Mediamark Research Inc. (MRI) Survey of American Consumers data. The profile was created from counts of survey participants who made online purchases of home furnishings in the last 12 months. Each MRI survey participant is assigned to one of the sixty-six PRIZM neighborhood lifestyle clusters. Each PRIZM Cluster represents a distinct consumer market segment comprised of households with similar demographics, lifestyles, and consumer behavior.
Who buys furniture online?
Nielsen ClaritasPRIZM® Profile Analysis● ● ● ● ● ● ● ● ●
Age 45-64
Age 25-44
Age 35-54PRIZM® Profile Analysis● ● ● ● ● ● ● ● ●
~Keith Miller -The Becomers 1973
“Through the skill and aggressiveness of modern advertising – particularly on television – we know more about each other’s homes and personal habits than any previous generation has. Advertising has created an illusion of intimacy… I know something about what kind of cereal you eat, what you shave with, and what kind of clothes you wear in every room in your house.”
Three Essential Questions
1. Who needs to be persuaded?
2. What actions does this person need to take?
3. How will you most effectively persuade that
person?
Personas vs. Demographics
With personas psychographics are more important than demographics.
Psychographics provide insight into how an individualperceives the world, along with their belief structures andcore personality traits. Have a documented effectiveness at predicting decisionmaking styles and behaviors - including buying behaviors.Demographics, on the other hand, are only looselycorrelated to behavior and often unhelpful in predictingmarketing response.So why add demographics to the mix? Why embodypsychographics in a specific persona?
What Makes Personas Actionable?
“A lost wallet lies on a Manhattan street,stuffed with cash. A white middle-incomemale New Yorker, between 30 and 44,picks it up. Will he look for the rightfulowner, or pocket the cash? Who knows?”
What Makes Personas Actionable?
But what if its GeorgeCostanza, the whitemiddle-income maleNew Yorker between30 and 44 fromSeinfeld, picks it up,everyone knowsexactly what he’lldo...”
In order to create personas, you will have to make perhaps the most concerted and in depth effort you've ever made to truly understand your customers. But the result will be representations of your customer base that you can use to model persuasive systems
that address the why of customer behavior.
Meet some “real” Ms. Joneses from real our retailer’s files (and see if you can recognize the 43 separate data points woven into
these excerpts):
MEET CYNTHIA JONES: “A relatively new concept in jewelry stores that Cynthia had discovered on a trip to Spain two years ago, her little boutique was catching on here in [city]. Her husband, Tim, had used part of their investment portfolio and his contacts in the banking world to arrange the financing, and her artistic background lent itself easily to the buying and merchandising that made her store unique.” MEET AMY JONES: “Amy pulled into the garage and grabbed the dry cleaning out of the trunk of the BMW. She paused in her home office to check her email and quickly responded to several messages. Grabbing the laptop, she sat in her sitting room off the master bedroom and went online to check flights. Paul had mentioned he wanted to give his new skis a try, and they had read about a resort in the Berkshires that sounded very nice. She logged on to their frequent flyer program site to verify they had enough miles for the airfare.”
Meet some “real” Ms. Joneses from real our retailer’s files (and see if you can recognize the 43 separate data
points woven into these excerpts):MEET LISA JONES: “I was mortified!” Lisa laughed. “When we showed up in the same golf skirt, I thought I would die of embarrassment! But the golf pro at the club let me start on the back nine, and no one seemed to notice. Hmmm… I think I’ll try the Tutti Frutti Pink.” Lisa and her manicurist laughed over the faux pas and Lisa settled into the chair for her weekly treatment. “What else has been happening in [city]? John and I just got back from Italy – no, we didn’t take the kids, it was for our 20th anniversary – and I haven’t had a chance to catch up on all the latest gossip!” MEET KIM JONES: “I’m so glad to be home!” Kim Jones took off her smock and hung it behind the door. “I’m starving!” She picked up the cordless telephone pressed speed dial #1 for MARK’S CELL. “Mark, it’s me. I’m ordering from Papa John’s. Do you want green peppers on the pizza? The movie starts at 7:10. Yes, yes – I promise I’ll be ready this time! But you’ll have to drive me through the bank if we’re going out afterwards; I need to cash my paycheck. Do you want to go dancing or to the pool hall? Or both!” MEET MICHELLE JONES: “True, it took two incomes to keep them afloat. Michelle’s part time job in the office at a printing company in [city] offered flexibility in her hours and the extra income was appreciated. Her schedule allowed her to be home shortly after the children got home from elementary school. She turned the minivan into a mini-retreat during the 20-minute commute, listening to the local Christian radio station or singing along to a country tune.”
WHO, WHERE, WHAT, WHY & HOW – NOW WHEN?
Persona based advertising can help you discover who you need to attract to your store. You can learn where she lives, what she does and even why she does it. You can figure out how you’re going to speak to the right Ms. Jones with the right media and the right message and deliver the right moment. The “when” is entirely up to you. Advertising in the past may have created an illusion of intimacy, but you have the ability to create a reality where Ms. Jones will love to spend her furniture dollars. She will respond when you use persona based advertising to speak to her personally.
Web Summit 3.0Thank You
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