How Consumers Plan To Pay For Holiday Gifts

Yesterday’s post dealt with the reasons consumers are not spending more this holiday season.  Today, we’ll look at how they plan to pay for gifts this year.  Consumer’s planned method of payment can affect not only how much they spend but where they spend it.

• Over half of consumers say they put money aside to pay for holiday shopping, that is up 13% from last year.

• Just one in three consumers will be putting their holiday gifts on credit cards – that is a drop of 30% from 2011

• 15% will use gift cards to make holiday purchases

• 14% are using discretionary income to buy presents – that is down 33% from last year

• 13% will put gifts on store credit cards

• Fewer than 5% of shoppers will delay making mortgage payments or paying other bills to buy holiday gifts

What Does This Mean To You?

When customers are paying for things with cash, they tend to do more research and comparison shopping.  This maybe one of the reasons “showrooming” activities are expected to be so high.
To make sure shoppers make their purchases at your location versus your competition, you need to promote the value you offer and the intangibles that make shopping at your location a better experience than making a purchase elsewhere.  Promote positive reviews your store has received through social media and reward customers who post virtual endorsements about your location. Take advantage of every opportunity to make a positive impression.  Make sure your staff is customer service focused and educated about the products you sell, the offers you have available and the offers your competition is promoting.  These are things that will allow you to show shoppers your value.  For more information on how you can utilize social media and mobile technology to drive more shoppers this holiday season, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Mobile Commerce Daily; Accenture

Social Media Influences Impluse Purchases

Social media continues to evolve as a marketing and sales tool.  Originally, it was seen as a way to create awareness and organizational branding.  Then it moved into an instrument that helps companies connect with consumers.  The next step was brand evangelism – where brand fans become an extension of the company’s marketing department.  Social media is beginning to become a revenue stream with social retailing.  Now, new research is showing that social media is affecting  sales by influencing impulse sales.

• In the past two years, the number
of consumers who follow brands on social media has more than doubled

• 36% of consumers who follow a
retailer on social media said that
updates from that retailer had led
them to try a new product

• One in six consumers made a purchase from a particular brand because their friends or family follow that brand on social media.  This includes nearly one in four shoppers under 35

• More than one in five shoppers have been motivated to make an unplanned purchase because of social media

• 15% said that social media postings caused them to spend more than they planned at a retailer

What Does This Mean To You?

Social media offers your company a wide variety of tools and options.  From
the ability to target shoppers, create loyal customers and increase your awareness.  Social media is now developing as a way to direct sales of a particular item and increase per trip sales. We are now starting the busiest
time of the year for retailers and social media can help you have the best
holiday sales season possible.
Here are just a few ways you can utilize social media during the holidays:

• Create an “insiders” twitter feed and fan pages on social entities with
special pricing

• Offer free or discounted shipping tied to a loyalty program to those who “like” or follow you on social media – Last year, Free shipping was mentioned as the top reason consumers chose on retailer over another for holiday shopping

• Reward consumers who give positive social media feedback about your business.  These offers can range from discounts to gifts with purchase or early/late convenience shopping programs

The fact is that consumers are using social media and the more you promote your social offerings, the more you optimize your social marketing and the more integrate them into your total marketing campaign – the better off your business will be.  In tomorrow’s post, we’ll look into other digital tools that are influencing where people are shopping.  For more information on how to grow your business and have a great holiday season through social media, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: The Ryan Partnership; Ipsos

Influencing Purchasing Decisions

We’ve all been there before. We’re in a store trying to choose between two items.
What is the tipping point?
What are the factors that give one product the edge over the other?
(Beyond the eannie, meannie, minny, moe method)
A new study looks at what things go into the decision process for grocery shoppers among moms & dads.  While this research is based on food shopping activities, the logic is transferable to other shopping behavior.

What Influences purchases outside of price or quality for moms & dads:

• 37% of dads and 44% of moms say a coupon
would be the biggest influence in choosing one
item over another

• One in five dads and one in six moms said product benefits would be a determining factor

• 12% of moms and 14% of dads say the brand name sways them in choosing a product

• 10% of moms and dads cited in-store promotions and the ability to get a free sample as things that weigh into purchasing one product over another

• Less than 5% of moms and dads said that environment or social benefits would weigh into their decision

What Does This Mean To You?

Knowing what the reasoning is behind consumer choices can not only help you sell more goods and services, it can boost you over the competition.  The study above points out several things particular to grocery shopping, but the basic principles are applicable to most businesses.

The Offer – Whether you are promoting a particular item, or your own business, an offer is a great way to set yourself – or your products – apart and drive traffic.  For many consumers, the economy is still a challenge and they are looking to save money any where they can.  The offer does not always have to be a straight discount.  Think about rewarding customers for purchasing or spending more money.

Benefits – People make purchases because they see value in a product or service.  It solves their problems, saves them time or saves them money.  By promoting the benefits you or a product delivers, you and your products move from being something has to be bought to a solution for a problem.

Brand Name/Reputation – For some purchases, a brand name has a larger influence than others.  In many cases, a brand name is a representation of reputation.  If you have a great reputation, promote it.  A respected name in the community can have an effect on whether people patronize you or the competition.  You can also increase you reputation by marketing respected products.  You may also be able to increase your marketing efforts through the use of co-op advertising.

Awareness – If a tree falls in the woods…  If you don’t tell consumers about your business and the goods & services you offer – how are they going to find out?  Your competition is not likely to tell them.
The same goes for the products you carry.  Consumers may know about these items, but do they know that you sell them?

There are many factors that go into why consumers make the choices they do.  Some of them you can influences, others you can’t.  To be successful, you want to make it as easy to find, contact, shop and purchase items from your business as possible.  For more information on gaining a competitive advantage and creating traffic, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Cone Communications

Actions Taken By Social Moms

Recently, we displayed new research that showed blogs were mom’s most trusted social source of information.  Today, we’ll look at what actions moms take because of the information they find on blogs.  Moms, often being the keepers of the family finances, are not only a great consumer segment – they have a large influence of most major purchases.

• Over 60% of online moms read a book that was recommended on a blog

• 56% purchased a food product that was advocated

• 54% watched a TV program after a suggestion was given

• Nearly half bought a baby toy that was suggested on a mom blog

• 45% purchased a toy after advice from a blog

• Over four in 10 forwarded a post to a friend

What Does This Mean To You?

Moms are not just looking for advice and information; they are also acting on what they find.  Because they are actively looking for information and pass that information, the opinions that moms have could impact your business. Their social activity means they have a large circle of influence.  As a business you should look for opportunities to use moms in testimonials and reward them for sharing positive information about your brand or company. For more information on engaging moms and the most cost effective ways to create loyal shoppers among them, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: emarketer; BlogHer

Top Products Purchased And Researched Via Tablet

In yesterday’s post, we looked at how consumers view advertising on tablets and the actions of tablet users after seeing marketing messages.  A large percentage of tablet owners made purchases and researched products on their tablets.  Today, we’ll look at the products that are researched and purchased most often.

• The top researched categories are consumer electronics (37%), restaurants (36%), media & entertainment (35%) and retail & apparel (35%)

• Three in 10 tablet owners researched foods and beverages, sports/recreation/hobbies and travel services

• Nearly 30% researched beauty and personal care items and roughly one
in four looked automotive or health
related products

• In the past 12 months, tablet owners purchased nearly $360 worth of products via their device

• Over 20% of tablet users purchased media & entertainment products and retail & apparel items

• Nearly 20% purchased consumer electronics and personal care/beauty products

• Other categories that tablet users purchased were restaurants (16%), food & beverage (15%) and travel services (13%)

What Does This Mean To You?

How can tablet advertising affect sales to your business?
In the next 12 months, adults who own a tablet in Metro Orlando are more
likely to purchase:

• Furniture

• Appliances

• High definition televisions

• A home

• A new, used or leased vehicle

Tablet owners are also more likely to have flown domestically or internationally, stayed in a hotel, attended a movie or purchased a ticket to a professional sporting event.

Tablets can help your business connect with consumers, create awareness
about your products and increase sales.  For more information on tablets can help grow your business, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Center For Media Research; OPA; Frank Magid Associates; The 2012 Scarborough Report, Release 1

How Companies Use Social Media

We’ve done several posts on consumer’s social media activities and why they like or follow brands. A new study is out that looks at what businesses are doing with social media, looking in particular at their social media use in tracking customer feedback.

• One in four companies that are B2C in nature just track consumer feedback via social media

• Just over one in five B2B
based organizations only track feedback
with social media

• Only 27% of B2B companies track and follow up with customers over social networks, while over half of
B2C companies track and follow up

• Nearly half of B2B companies do not even track social media comments about them

• Over 28% of all companies do not monitor consumer feedback across social networks

What Does This Mean To You

How is your organization using social media?
Do you track what people say about you?
Do you follow up on their comments?
Monitoring what is said about you can help you build loyalty and create engagement. It’s not just about fixing problems; it’s also about thanking them for positive comments. This shows consumers you are responsive to their needs and appreciate their opinions. The companies that do nothing with social feedback about them are at best missing a golden opportunity to generate a customer connection. The ones that are ignoring problems are delivering gift wrapped customers to their competitors. For more information on Social media maintenance and reputation management, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: eMarketer; Satmetrix

The Growth Of Mobile Exclusives

Consumers are increasingly dependent on their mobile devices for everything from basic communication to researching & purchasing products.  This mobile dependency has led to a new segment of consumer, the mobile exclusive.  A new research report chronicles these mobile only consumers and there are some interesting implications for businesses.

• Over half of mobile users only use mobile devices to check
their email

• 45% of consumers who have mobile devices conduct mobile only searches

• Over 40% of mobile owners connect with friends on social networks using only mobile devices

• Three in 10 mobile owners bank without ever using a PC or laptop – they only use mobile devices

• One in four mobile consumers shop online exclusively with  mobile devices

• Nearly 70% of mobile users conduct at least one web-based activity solely on a mobile device

What Does This Mean To You

We’ve been saying for a while that mobile is important to your business and that not having a mobile presence could seriously hurt your bottom line. This study is just more information proving the importance of mobile. Look at the number of patrons your business has, examine how many are using smart phones. By not being involved in the mobile space, you are simply going to be at a disadvantage in getting your message to them.  The study also points to some interesting future developments.  With 30% of mobile users exclusively banking by mobile device, there is a good chance mobile payment are on the horizon.  Also, mobile social networking is on the rise – this means that customers can post about your business in real time. Your company should be prepared with a reputation management plan.  This will help you take advantage of positive postings and mitigate negative ones.  The bottom line is mobile is not a going away.  If you are not involved in mobile, you are giving your competition an open invitation to take shoppers from you.  For more information on creating a winning mobile strategy, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Mobile Commerce Daily; Prosper Mobile Insights; Biginsight

Purchase Decisions and “Likes”

One question many companies are asking is what the link is between social media “likes” and follows and purchase intent.  There has been a few research reports on social media’s effect on consumer buying patterns and if a consumer who “likes” a product is apt to make addition purchases. But a new report has come out that looks at how social brand evangelism brand “likes” effect the purchasing behavior of friends.

• Currently, 18% of online adults said they would buy a brand if a friend “liked” it on Facebook

• The percentage was virtually identical between men (17%) and women (18%)

• Nearly one in four adults under 35 said that if a friend “liked” a brand, they would buy it

• One in five adults age 25 to 49 would be more likely to purchase because of a friends “like”

• Less than 10% of 50 to 64 year olds would be affected by a friends “liking” of a brand

What Does This Mean To You

One recent report showed that the reason most consumers “liked” a product is because they were already loyal customers of the brand.  The ripple effect of friends “liking” a brand could prove beneficial to your business and create new customers virally.  There are two things you can do to cultivate “likes” and stir social affinity.  First is rewarding those who “like” with valuable offers that are exclusive to them.  By doing this, you will also help boost long-term loyalty that will last long after them have “liked” your company.  The other things you can do is monitor and protect your social reputation.  If a consumer is moved by the social activity of a friend, they are likely to socially investigate.  If they see lots of negative comments, it could deter them from buying your brand or patronizing your location.  For more information on creating more sales through social media, please contact, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: eMarketer; Ipsos OTX

Email Delivers Success

Email marketing maybe considered old-school digital engagement, but it is still extremely successful.  It doesn’t matter whether you are using house or prospect lists, newly released data shows that email is delivering better results now than in the recent past.

• Two-thirds of marketers worldwide said that email was their most successful marketing tool

• From 2010 to 2012, the open rate for house email lists jumped 13% -the current open rate for house lists is at 22%

• During the same period, the email open rate for prospect lists increased slightly, from 11.2% to 11.4%

• The click through rate for house lists increased 17% from 2010 to 2012 and the CTR for prospects jumped 86%

• Email has the highest return on investment of any direct marketing effort
at 28%

What Does This Mean To You

Email is a great tool for creating one to one digital connections. Through advances in audience targeting techniques and automation tools, email has become more effective.  The key to any successful email campaign starts with your target audience.  Delivering offers they find valuable will elevate your image with consumers.  Creating generic offers or not targeting specific messages for specific segments might get your communication classified as SPAM in consumers mind.  There are many legal caveats to marketing via email.  Consulting with an email specialist will help ensure your company doesn’t violate any laws and keeps your business in a positive light.  For more information on how you can develop loyal customers and get great results with email, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: eMarketer; CMO Council; Direct Marketing Association

Why Consumers “Like” Brands

The impact of social media on brands is undeniable.  As a part of a well thought out marketing campaign, social media can certainly help create results.  Social media can also be very detrimental to your business if you are not paying attention to what people are saying about you.  As social media continues to evolve and users become savvier, it’s good to look at information on why consumers “like” brands.  A study has been released that not only details why consumers click the “like” button, it also looks at what marketers think the “like” means.  The difference between why consumers “like” and what marketers think it means is surprising.

• Worldwide, the top reason consumers “like” a brand was because they are currently a loyal customer of the brand.  Nearly half of consumers said that was the reason they clicked “like”

• 46% wanted to receive incentives or rewards for engaging with the brand, another 46% wanted to keep track of news on the brand

• 43% were looking for special savings or brand related events

• 30% said they found the page’s content agreeable and “liked” for that reason

• Roughly one in four wanted to have their voice heard or to help other customers

• Approximately one in five clicked “like” because they either wanted to recommend the brand to friends or wanted to engage other customers

• Marketers, mistakenly thought that the page’s content was the top reason why people “liked” a page.  That view was held by nearly 60% of marketers surveyed

• Marketing professionals also put more stock in the customers need to be heard as a reason for the “like” – 41% of marketers thought people liked for that reason

• Marketers also vastly underestimated the customer loyalty factor.  Just 24% of marketers thought that was a reason for the “like”

• They also did not put as much weight in consumers desire for savings as a reason for “liking” a brand

What Does This Mean To You

Maybe the reason some brands are more successful than others on social media is could come down to a misconception of what consumers are looking for.  While the majority of “likes” worldwide may come from loyal customers, utilizing some of the other information can help you create loyal customers – and then get those loyal customers to be recruiters for your brand.  Since every business is unique, ask your current fans or followers why they engage your company on social media.  If the reason they “like” you is because they are looking for coupons and other savings vehicles, then make sure it is the focus of your social media efforts.  But as we saw in a study last week – incentivize them to let others know how great your company is.  Maybe give better offers for those fans or followers who refer other customers.  These brand evangelists can be a big part of your social success.  For more information on how social media can help your business move the needle, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: eMarketer; CMO Council