Everywhere with Friends Like YOU Scott Wright Nielsen Online - - PowerPoint PPT Presentation

Scott Wright Nielsen Online

Be Anywhere. Stay Connected. Shop Everywhere with Friends Like YOU

Today’s Conversation

Discussion Flow

• The Data Landscape
• Implications
• Opportunities
• What’s Next?

Big Themes

• Friction Free Feedback
• Consumer Decision Journey
• Triumph of the Small
• Third Moment of Truth

Some Thought Starters:

• What % of Shoppers used their cell phones to research

purchases during the beginning of Holiday season?

• What was that % among 18-34 year olds?
• What % were willing to “give up” a purchase due to not being

able to find a coupon or deal?

Foundations: Shopper as Media

Correlation Between Social & Sales?

Source: Nielsen RMS

Shopper as Media…and Beyond Loyalty!

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Three Moments of Truth

Stages First Moment Second Moment Third Moment

Description What you See/Seek What You Experience What You Express Features

Store Shelf Search exposure Social Media Exposure Ease of discoverability Finding the Obvious, Timely User experience, functionality Use of Sight, Sound, Motion Ease of conversion: try, buy Key Needs Served, Answered Prioritization of Content Providing Feedback Feeling Valued Invitation to Hear Ability to Share Ability to Network

Key Stages Education Awareness Consider Trial Loyalty Advocacy

The new consumer decision journey

INITIAL CONSIDERATION: PURCHASE: POST-PURCHASE EXPERIENCE: ACTIVE EVALUATION: ▪ Consumer starts

with 1.5 brands in mind, influenced by previous trial and word of mouth At the moment of purchase, the consumer has evaluated only 3.2 brands, and makes decision based largely on information learned before shopping 66% of consumers engage with their brand after purchase (e.g., online research), and this engagement has a meaningful impact on the likelihood of repeat purchase The consumer adds 1.7 more brands to consideration, based on packaging and sampling

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Where Social Media Fits in to the Mix

Most influential touchpoints 21 37 31 28 10 Company-driven marketing

• Traditional advertising
• Direct marketing
• Sponsorship
• In-store advertising

Consumer-driven marketing

• Word of mouth
• Online research
• Offline/print reviews

Prior brand/ product experience Store/agent/dealer interactions Moment of Purchase 22 5 43 Active Evaluation 26 26 Initial Consideration 39 12

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Trust recommendations from these sources most when making purchase decision

Nielsen 2010 Global Trust Study

10 20 30 40 50 60 70 80 Unknown Peers Influential Bloggers Discussion Forums TV Search Engines News Sources Product Web Sites Online Product Reviews Friends Family

Global NA

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Friending the Social Consumer

Social Media allows brands to interact directly into the “Trust Zone”

Friends, Family, Reviews Dominate Trust Zone

% Online reviews or peer recommendations are important when researching:

While it might seem that consumers would only reach out for “advice” on larger purchases, nearly a third reach out for guidance on CPG-type

• purchases. This is why

advocacy is so important.

Nielsen 2010 Global Trust Study

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Friends, Family, Reviews Dominate Trust Zone

The Data Shelf

Mobile Phones Will Overtake PCs by 2015

Source: Nielsen

P a g

Reported Mobile Data Application Usage (Use in Last 30 Days)

Questions used: Q407 Source: Nielsen Mobile Insights, US, Q2 2010

Mobile Application Usage

Nielsen Mobile Study 2010

How Consumer Use Apps

Discovery is Everything

Red Laser: From Barcodes to Reviews

Facebook Joins the Mix with “Check-In”

Geolocation: Early Adoption Security Concerns

Source: Webroot

Target Unveils Customized Ad Technology That Makes Shopping Easier

Source: Target

Peapod Launches SmartPhone App

Source: PRNewsire & appstorehq.com

Kraft: Combining Health and Gaming

Ambient Access

Apps like Coupon Sherpa Allow consumers to access coupons on-demand…. …consumers “check in” to the app to see if there are deals where they’re shopping.

Broader Retailer Trends

Flexible Retailing is Changing the Game

• Get smaller, but larger formats dominate
• Pop-up retailing accelerates
• Blended & exclusive formats catering to generations & ethnic

consumers

• Expansion from high-end & low-end formats
• Battle for supremacy between fixed & flexible

– brick & mortar.com – pure play.com – .com brokers – manufacturer.com

Source: supermarketnews.com

Source: Supermarketnews.com

Tesco Unveils Drive-Thru Concept

Source: Daily Mail / Masons News Service

Customers are able to drive to a dedicated area in a Tesco store at a set time and pick up their shopping without having to leave their car for a flat fee of £2

Retailers Going to the Consumer!

Source: Keith Hine/Chicago Sun-Times; Meijer; Publix

Source: Keth Hine/Chicago Sun-Times

29 Consumers all claim to start purchasing online with books, airline tickets, and clothing.

Category Purchase Progression

Airline Tickets Books Apparel Music/ DVDs Computers/ Software Flowers/ Gifts CPG

CPG items typically get purchased right after consumers become comfortable buying gifts, tickets, and music.

Source: Nielsen Online panel – P&G WHO Study

So What Next?

Consumer Channel Preferences

Question: Those who would contact the company to…

New products Complain Get Advice Make Reco. Crisis Email

96 97 94 96 76

Call a live representative

94 95 92 90 95

FAQ on company website

94 NA 92 NA 74

Post an opinion or question on company website

87 80 77 82 48

Instant message through the company's website

81 78 78 76 71

Posting on a company message board

77 69 71 74 47

Posting on a blog sponsored by that company

68 61 64 68 41

Telephone - automated response/recording

57 57 62 59 52

Reading company's Facebook page

55 NA 53 NA 36

Sending photo or video to company

53 48 48 51 41

Posting on the company's Facebook page

50 42 47 47 31

Texting the company via mobile device

36 34 40 37 41

Imperative: Know Thy Viral “Talk Drivers”

Wireless Talk Drivers Banking Online Electronic Manufacturers Major Retailers 3 2

0% 10% 20% 30% 40% Price/Value Coverage Plans/Contracts Service Quality Other Billing/Payment Customer Service 0% 10% 20% 30% 40% 50% Phone Customer … User-Friendliness Financing Email Customer … Other Billing/Payment Overall Experience 0% 10% 20% 30% 40% 50% Features: Other: Durability: Reliability: Performance: Quality: Customer Service: 0% 10% 20% 30% 40% Cleanliness/Condition: Price/Value: Checkout Lines: Selection/Availability: Product Quality: Exchanges/Returns: Other: Staff Attitude/Knowledge:

Source: PlanetFeedback.com

BBB Issues: By Issue/Talk Driver

• Sales practice dominate, followed by billing & collection

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0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Advertising Issues Guarantees or Warranty Issues Product Issues Delivery Issues Contract Issues Repair Issues Customer Service Issues Service Issues Refund or Exchange Issues Billing or Collection Issues Sales Practice Issues

0.000% 0.005% 0.010% 0.015% 0.020% 0.025% 0.030% 0.00% 0.01% 0.02% 0.03% 0.04% 0.05% 0.06% 0.07% Starbucks and Target

Starbucks Target GAP Brand H&M Abercrombie & Fitch Urban Outfitters American Apparel American Eagle Zappos

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GAP Brand Buzz: Trails Starbucks and Target

Buzz volume is depicted as a percentage of 418,671,366 total messages occurring between May 1, 2009 and October 24, 2009.

Weekly Buzz Trend (May 1 – October 24, 2009)

Promotions

Source: Nielsen RMS

Daily-Deal Sites

Source: Company websites

$avvy $penders

New Moms Megaphone Power

Imperatives

Six Drivers of Brand Credibility

Trust Authenticity Transparency

Confidence Consistency Integrity Authority As Advertised Real & Sincere Real People Informal Let the Sun Shine In Easy to Learn Easy to Discover No Secrets

Affirmation Listening Responsiveness

Playback Reinforcement Search Results Accountability Empathy Welcome Mat Humility (we can learn) Absorbing Feedback Follow-Up Invitational Marketing Solidifying the Solution Dignifying Feedback

Brand Credibility More Important Than Ever

Source: Pete Blackshaw, NM Incite

Website

Facebook Twitter MySpace LinkedIn

Brand Stands

Social Commerce Ecosystems

Trend Assessment

Social Search On the Rise, Changing Search Dynamics Consumer Relations New Center of Gravity in “Service is Marketing” Environment Activists & 3rd Parties More influence & power; more agile. Harder to manage Brand Managers Moving to “Community Manager” Roles & Responsibilities Privacy Increasingly Messy in “Get Discovered” Social Context WOM /SM Regulation More regulation; legislated transparency Hispanics/Latinos Most Urgent Segment; High WOM factor; 2010 Census Triumph of Small All interfaces shrinking

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What’s Ahead / Next?

We’re Just Getting Started!

Thank You

Scott.Wright@Nielsen.com

About NM Incite

Trusted Data Metrics & KPIs Insights Strategic Consulting Process and Organization Digital Marketing