Be Anywhere. Stay Connected. Shop Everywhere with Friends Like YOU Scott Wright Nielsen Online
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!
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 User experience, functionality Providing Feedback Search exposure Use of Sight, Sound, Motion Feeling Valued Social Media Exposure Ease of conversion: try, buy Invitation to Hear Ease of discoverability Key Needs Served, Answered Ability to Share Finding the Obvious, Timely Prioritization of Content Ability to Network Key Stages Education Awareness Consider Trial Loyalty Advocacy 7
The new consumer decision journey ACTIVE EVALUATION: The consumer adds 1.7 more brands to consideration, based on packaging and sampling INITIAL CONSIDERATION: PURCHASE: ▪ Consumer starts At the moment of with 1.5 brands in purchase, the consumer has mind, influenced by previous trial and evaluated only 3.2 word of mouth brands, and makes decision based largely on information learned before shopping POST-PURCHASE EXPERIENCE: 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 19
Where Social Media Fits in to the Mix Most influential touchpoints Store/agent/dealer interactions 12 26 43 Prior brand/ 28 product experience 10 Consumer-driven marketing 5 Word of mouth 21 Online research 37 Offline/print reviews 31 Company-driven marketing Traditional advertising 39 Direct marketing Sponsorship 26 22 In-store advertising Initial Active Moment of Consideration Evaluation Purchase
Friends, Family, Reviews Dominate Trust Zone Trust recommendations from these sources most when making purchase decision Family Friends Online Product Reviews Social Media Product Web Sites allows brands News Sources to interact Search Engines Global directly into NA TV the “Trust Discussion Forums Zone” Influential Bloggers Unknown Peers 0 10 20 30 40 50 60 70 80 Nielsen 2010 Global Trust Study 7 Friending the Social Consumer 1 0
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 19
The Data Shelf
Mobile Phones Will Overtake PCs by 2015 Source: Nielsen
Mobile Application Usage Reported Mobile Data Application Usage (Use in Last 30 Days) Nielsen Mobile Study 2010 Questions used: Q407 Source: Nielsen Mobile Insights, US, Q2 2010 P a g
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 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 Source: Daily Mail / Masons News Service
Retailers Going to the Consumer! Source: Keith Hine/Chicago Sun-Times; Meijer; Publix Source: Keth Hine/Chicago Sun-Times
CPG items typically get purchased right after consumers become comfortable buying gifts, tickets, and music. Category Purchase Progression Airline Music/ Computers/ Flowers/ Books Apparel CPG Tickets DVDs Software Gifts Consumers all claim to start purchasing online with books, airline tickets, and clothing. Source: Nielsen Online panel – P&G WHO Study 29
So What Next?
Consumer Channel Preferences Question : Those who would contact New Get Make Complain Crisis the company to… products Advice Reco. 96 97 94 96 76 Email 94 95 92 90 95 Call a live representative 94 NA 92 NA 74 FAQ on company website 87 80 77 82 48 Post an opinion or question on company website 81 78 78 76 71 Instant message through the company's website 77 69 71 74 47 Posting on a company message board 68 61 64 68 41 Posting on a blog sponsored by that company 57 57 62 59 52 Telephone - automated response/recording 55 NA 53 NA 36 Reading company's Facebook page 53 48 48 51 41 Sending photo or video to company 50 42 47 47 31 Posting on the company's Facebook page 36 34 40 37 41 Texting the company via mobile device
Imperative: Know Thy Viral “Talk Drivers” Wireless Talk Drivers Banking Online Overall Experience Customer Service Billing/Payment Billing/Payment Other Other … Email Customer Service Quality Financing Plans/Contracts User-Friendliness Coverage … Phone Customer Price/Value 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% Electronic Manufacturers Major Retailers Staff Attitude/Knowledge: Customer Service: Other: Quality: Exchanges/Returns: Performance: Product Quality: Reliability: Selection/Availability: Durability: Checkout Lines: Price/Value: Other: Cleanliness/Condition: Features: 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% 50% 3 Source: 2 PlanetFeedback.com
BBB Issues: By Issue/Talk Driver • Sales practice dominate, followed by billing & collection Sales Practice Issues Billing or Collection Issues Refund or Exchange Issues Service Issues Customer Service Issues Repair Issues Contract Issues Delivery Issues Product Issues Guarantees or Warranty Issues Advertising Issues 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 33
GAP Brand Buzz: Trails Starbucks and Target Weekly Buzz Trend (May 1 – October 24, 2009) 0.07% 0.030% 0.06% 0.025% Starbucks and Target 0.05% 0.020% 0.04% 0.015% 0.03% 0.010% 0.02% 0.005% 0.01% 0.00% 0.000% Starbucks Target GAP Brand H&M Abercrombie & Fitch Urban Outfitters American Apparel American Eagle Zappos 34 Buzz volume is depicted as a percentage of 418,671,366 total messages occurring between May 1, 2009 and October 24, 2009.
Promotions Source: Nielsen RMS
Daily-Deal Sites Source: Company websites
$avvy $penders
New Moms Megaphone Power
Imperatives
Brand Credibility More Important Than Ever Six Drivers of Brand Credibility Trust Authenticity Transparency As Advertised Let the Sun Shine In Confidence Real & Sincere Easy to Learn Consistency Real People Easy to Discover Integrity Authority Informal No Secrets Affirmation Listening Responsiveness Playback Empathy Follow-Up Reinforcement Welcome Mat Invitational Marketing Search Results Humility (we can learn) Solidifying the Solution Accountability Absorbing Feedback Dignifying Feedback Source: Pete Blackshaw, NM Incite
Social Commerce Ecosystems Facebook Website LinkedIn Twitter MySpace Brand Stands
What’s Ahead / Next? Trend Assessment Social Search On the Rise, Changing Search Dynamics Consumer Relations New Center of Gravity in “Service is Marketing” Environment Activists & 3 rd 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 42
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
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