Tonic media

India HQ:

Tonic Media, B 102 Nestle Apts., Malad (W),

Mumbai - 64, India.

Contact: 022-40035328/9833973364

PO Box 487177, Unit P12 Rimal, The Walk,

Jumeirah Beach Residence, Dubai, U.A.E

Website

www.tomicemedia.in

www.tonicbuzz.com

www.tonicmedia.in/blog

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www.twitter.com/tonicbuzz

A Whitepaper by Tonic Media

CONTENTSSocial influence

Customer journey

One size does not fit all

The rise of the connected customer

Bolster sales through the social vehicle

Cheat sheet

The last word

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Credits

Chetan AsherCEO, Tonic Media

chetan@tonicmedia.in

Apeksha HariharCommunication Manager,

apeksha@tonicmedia.inTonic Media

The Whitepaper research is carried out by Tonic Media, a digital agency based in Mumbai. The survey was carried out among enthusiastic social media users in January 2013. Based on the study, we have uncovered certain statistics in the Indian social media space decoding consumer behaviour in the retail segment. The study showcases how retail brands can boost sales using social media.

SOCIAL INFLUENCE

Social media influence brings along an amazing power

of credibility and confidence in the customer mainly

because it is the direct result of word of mouth. Social

customers become brand advocates within no time

through the multi-directional use of various social

media channels as they travel along the path of their

purchase. The drivers of social behaviour involving

retail sales was decoded through a survey carried out

by Tonic Buzz among 200 active social media users

based in India. We found out that a lot of social media

users have been exposed to a number of retail brands

lately and social media websites have become a hub for

increasing number of brands to showcase their

offerings.

Like the table illustrates, a substantial

portion of social media users actively

follow their favourite brands on social

media websites. This percentage is a

huge opportunity for brands to

capitalize upon. Conversions through

social media however is a subtle push

rather than hard selling. Hard selling

has never worked precisely because

people do not get on to social media

websites looking for brands. They do

so to interact with friends and share a

social space. Tapping this social

space to make sales is an intelligent

process which must be mastered by

marketers before jumping into the

mesmerizing world of interactions

and engagements. Take a tour of

using social media marketing

effectively for boosting online and

offline sales.

Social influence can be defined as a typical buying

behaviour that is impacted due to referrals from friends,

families and other external factors. Social influence is

one of the top reasons for marketers to get excited in

the social media space. However exciting the potential,

marketers still need to understand the relationship

between social influence and online sales. This

relationship is viewed in context of various factors. For

instance, when a user engages on a social media

website, friends consciously or unconsciously have an

effect on another's buying decision. Social influence is

one of the key factors that is driving retail sales and

boosting footfalls in the retail industry. Posting a

product purchase or recommending a brand has

become a very common practice. Thus, social

influence in recent times has transformed to social

media influence, with the rise of Facebook, Twitter and

Pinterest.

50%

6%

44%

How actively do consumers follow brands on

social media websites?

" Very Often- 50%

" Moderately- 44%

" Not at All- 6%

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Today's consumers are a far cry from what they used to

be even half a decade ago. They are now perhaps a

different breed altogether! They are assertive,

outgoing, like to indulge and most importantly love

everything digital.

If you think popular social media sites like the

Facebook, Twitter, Foursquare and Pinterest are just

places to post musings and connect with friends, you

would be quite wrong. Infact, these sites have opened

a door of opportunities to companies across the world,

by becoming an extension of their retail outlets and

enhancing their brand visibility.

In the world of social media, a consumer's journey

through the web of brands, all enticing him in some way

or the other, mainly cross path with that of friends,

family and acquaintances. We say this because the

primary brand interaction with the consumer digitally,

most often than not is through chats of brand

purchases by friends. As illustrated by the table, most

users love sharing their recent purchases on social

media networks. Most are even influenced by the

purchases of their friends.

CUSTOMERJOURNEY

54

%40

%30

77%

%7

23%

How aware are consumers about the purchases their friends

post on social media websites?

" Awareness + Active Sharing + Commenting- 30%

" Awareness + Active Sharing- 7%

" Awareness- 40%

" Not at All- 23 %

3% %58.6

%38.4

97%

How actively do consumers follow Facebook

notifications about their favourite brands?

" Very Often- 58.6%

" Moderately (only during leisure time)- 38.4%

" Not at All- 3%

A consumer hopping on to the social media

vehicle consciously or unconsciously stops

by several influencers in his journey towards a

retail purchase. These influencers act as a

subtle push and are embedded throughout

the social media realm, offering the brand a

chance to capture the consumer's mind,

thereby accelerating brand purchase.

Facebook being the prime influencer, offers

an array of opportunities to brands.

Notification areas and post an offer features

are extremely popular among consumers. In

today's day and age most customers follow

Facebook notifications, for information about

their favourite brands.

A lot of retail brands are coming up with

unique ways to market products. Tweets with

direct link to a brand's offer page, or a

promotional video can build a company's

brand quotient. On the other hand, pictures

posted with a price tag on Pinterest and an

embedded link to the website can also uplift

the retail awareness and value of products.

Pinterest currently has only dollar tags.

Our survey showcased some interesting results in

terms of consumer behavior in the social media

space. We came across quite a few factors that

influence online consumer buying decisions.

Topmost among them are new trends and products

hitting the marketplace. The core influencer emerged,

as a staggering 66% of social media enthusiasts

revealed that discounts, offers and coupons enamour

them the most.

Discounts and offers tempt consumers while making

brand purchases in a way like nothing else does.

Tonic successfully executed a campaign for a fast

food retail chain, driving a huge footfall at their outlet

launch only through an offers oriented Facebook

campaign. The campaign offered an irresistible offer

to all the fans on the official Facebook brand fan page

and promoted this offer during the launch of a new

outlet in Coimbatore. The offer created a lot of buzz

among fans, encouraging them to share the offer

among friends, increasing the 'talking about' of the

new store and spreading awareness for the same. On

the opening day, 300 people walked into the outlet

and claimed the offer, making the campaign

extremely successful. It was easy to measure the

return on investment because the offer was promoted

only on Facebook and each one who claimed it had no

doubt come from Facebook.

Users of social media are exposed to a range of brands every

second they spend on a social media website. With over

1 billion members on Facebook alone (official figures), and

over half a billion on sites like Linkedin and Twitter, nearly

20% of the entire world population make their presence felt

on these Internet wonders. Is there any better medium to

market products? Probably not.

Other than discounts, plenty of users read reviews of

products online. According to a study conducted by Nielsen,

nearly three quarters of active social media users write their

own reviews. For every consumer today, social media plays

an important role in how they discover, research and share

information about brands and products.

The possibilities of social media as a marketing platform is

endless and its users are increasingly becoming the

determinants of market trends and most importantly sales.

The time is now to hook and captivate their attention.

CUSTOMERJOURNEY

SURVEYSHOWCASED

66%

52.3%

11.5%

7.6%

5.3%

What attracts consumers to new brands?

" Discounts, Offers and Coupons- 66%

" New Products and Trends- 52.3%

" Purchases by Friends and Opinion Makers- 11.5%

" Friends Checking in at Outlets- 7.6%

" Game Applications- 5.3%

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Foursquare helped in raising the popularity levels of a smaller food joint

effectively using another successful strategy. A cupcake van increased

its sales by checking in on Foursquare everytime it was stationed at a

particular location. People following the cupcake van knew exactly

when and where the van was on a particular day. Therefore, social

media is a potentially undiscovered platform for most marketers who

believe that they can apply the same strategy that another company

executes in order to achieve similar results. Innovation is the need of

the hour since one size does not fit all.

Retailers today can explore among vast creative opportunities to

market their products on social media websites. There have been

many successful campaigns that have proved to be extremely

beneficial to boost online as well as offline sales. These campaigns

have led to better brand awareness. During summer this year,

Starbucks, a leading beverage chain based in USA, incorporated the

use of Foursquare to raise charity fund as well as elevate the brand

status by making people feel that they are involved in some good work.

Starbucks offered $1 for every check-in on Foursquare at any

Starbuck's joint between 1st to 10th June 2012, raising upto $250K.

Owing to Starbucks popularity, the goal was surpassed in a matter of

days. Customers inturn got to earn some socially-conscious brownie

points. This strategy however, would not work for a smaller food joint

owing to popularity levels.

ONE SIZE DOES NOT FIT ALL

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Social media users generally check-in on Foursquare and Facebook

when they enter a restaurant, cafe or other retail outlets. This feature

works on most users mainly because it is a fun way of telling their

friends where they are on a particular day and time. Every time a user

checks-in to your brand outlet, your brand is exposed to other

connected users, thereby increasing brand visibility immensely at no

extra cost. Foursquare is a big hit among shoppers in general, with a

vast majority of shoppers checking in every time they visit their favorite

outlets. Some check in occasionally, if served a reminder or offered a

free gift.

While Foursquare is a great check-in tool, Twitter serves to be a great

customer service tool for retailers. Twitter can also be a great discount

and offers announcement platform. The 140 characters can utilize

space for news that a company wants to share with its followers. Dell

has been extremely successful on Twitter, claiming to have earned a

couple of millions in sales through this chirpy channel.

How often do shoppers check in at Brand Outlets?

" Always- 58%

" Sometimes (when incentivised with offers/discounts)- 23%

" Never- 19%

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Shopping and dining are completely social activities. This is one of the

major factors why retail experiences are enhanced by social media.

The consumers today are more connected than ever before. Retailers

have long sought and cherished consumer feedback and social media

provides a rich vein of consumer thinking for those adept enough to

interpret it. Gone are the days when reviews posed to be a threat.

Rather, the brand gets a chance to hear out their customer and

improve their offerings. Listening to the customer is essential and must

not be ignored. The entire process of interacting, engaging and taking

feedback results in a trust building activity. Increase in online

consumer conversation provides opportunities for retailers to use this

platform to gather insights into consumer thinking and attitudes, and

even integrate user product reviews into their physical store. The rise of

the connected customer is indeed a boon for retailers.

Brands can take back a lot from measuring and tracking social

media success. Social media provides shoppers with a platform

to discuss the products and stores they love or hate. However,

likes are not necessarily equivalent to sales and it is necessary to

post constant updates and keep your social media properties

alive and vibrant among fans to convert them at some point in

future if not immediately. Posting an offer on Facebook is a way to

tempt the customer to make a purchase. 65% social media users

claimed an offer on Facebook.

Facebook has certainly emerged as the most popular website for

marketing retail products and services. 95% users revealed that

they are most likely to find the latest products as well as discounts

on Facebook. Companies can start with launching small

campaigns that could include competitions, discounts or freebies

and track the effect. How many consumers 'liked' your page?

How many consumers redeemed the discounts in-store? How

much traffic did it drive to the store? Tracking and monitoring

results is extremely useful in understanding your customer.

THE RISE OFTHE CONNECTEDCUSTOMER

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Increasing brand awareness through social media is great but it is a

sheer waste to use social media if it cannot turn fans into buyers.

Especially, when you can use it to drive consumer behaviour, in turn

adding a considerable amount to the bottom line.

Companies across the globe have conceptualized unique campaigns

to up their sales numbers. Among our clients, a major ice-cream co.,

boosted its retail figures by creating a viral video for their ongoing

offers. It created enough buzz for customers to flock their stores all

over the country. Using social media to bolster sales should be the

ultimate aim of any retail marketer.

One of the first companies which successfully used a social media

campaign to churn its sales figures was Dell. In late 2008, Dell created a

campaign, wherein it gave its Twitter account members an opportunity

to customize the desktop systems along with a lucrative discount.

According to the company, this campaign helped them generate

around $6 million. Over this span of time, Dell tweeted about various

retail offers to its members, which lead to awareness as more and more

people joined in, subsequently boosting sales.

BOLSTER SALESTHROUGH THESOCIAL VEHICLE

The second electronic major to follow was Sony. In 2009, the company

gave 1500 of its twitter members a chance to build a customized Sony

Vaio laptop, as well as giving them a 10% discount. It is said that the

campaign helped the company add $1.5 million to their sales figure.

Social media is being used in various ways to promote businesses. The

essence of digital marketing is to keep the ball rolling. Keep your

company's ticker moving on the social websites; upload as many

posts as you can and tweet everyday. Run theme based campaigns

and promote your products/services in an interesting way. Do not let

the potential customer base forget you.

Another impactful way to widen the target audience is to create a forum

or a focus group. The best example for this is Pepsico's Mountain Dew

campaign. The mountain dew division created a forum of fans called

dewcracy where they were involved in each and every process for

creating its new drink. It worked wonders for the company.

Identifying loyal followers and inviting them to write reviews is also a

good idea to boost the brand and create an extensive consumer base.

Innovative thinking combined with the vast potential of social media

can prove to be a fortune waiting to be found for your company.

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Tap into the enormous resources of social media to

magnify your sales setup. Here are some pointers

and tips that you may want to consider.

Sell exclusive products:

Selling items which are unique and not found in your

store will keep the existing customers anticipating for

more. This will also usher in new customers who

generally do not shop at the physical stores.

Create a 'social' retail outlet for overstocked

item:

One can reduce inventory and cut storage costs by

selling them on social media sites. This may boost

sales of items that are not flying off the shelves. Used

items can also be sold by creating your online garage

sale.

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CHEAT SHEET

Exclusive discounts only for your account

members:

Giving special discounts and offers, not found on

your company website or stores is likely to generate

better sales. Linking these offers to QR codes on

printed marketing material is a quick way to keep the

sales register moving.

Go unique on content:

Original information, articles, Facebook applications

and games, will keep users coming back for more.

Creating a Like Us tab to showcase video and

pictures combined with an opt-in email/newsletter

sign-up will allow for more advertising opportunities

as well.

Incentivize:

Referral programs, Like Us programs when traded

with discounts and offers can lead to a bigger

customer base. Integrating social media icons and

links to company email can also do wonders.

THE LAST WORDCustomers appreciate retail posts on social media

websites because it keeps them updated of the latest

fads and discounts offered by their favourite brand. Our

study clearly shows that social media users are aware

of retail trends and follow them religiously. Retailers

who offer certain discounts only to their fans can rely on

fan loyalty for their brand. Keep up with the changes in

the social media world and benefit from creative

strategies that directly reach your customer. Agencies

should come up with creative and innovative

campaigns to foster the needs of retailers and generate

genuine value to their customers.

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