ise eR Th

ng ecti n Con on ters tar ht S ug Tho

ting rke Ma ing per rket a op er M pp l Sh Sho and dia ocia e fS ial M o Soc
2011
JANUARY

While traditional media still plays an important role in shaping purchase decisions. these budgets are typically managed by different groups that rarely speak to each other. This becomes even clearer when you look at the changes in how media influences purchase behavior (see image below). Summer 2010 Shopper Card Data Highlights Social ROI SOCIAL ME DIA & PE ER INFLUE NCE RADIO PRINT TV IN RE T SO AL O LY T D AR YC DA TA MARKET ING PROG RAMS OUTDOO R g data ca n be fed velopme into the de nt and op timizatio n of socia l media pro grams. But most marketers haven’t made the connection. Increasingly consumers are first hearing about products through social settings rather than traditional media. Why? Because shopper marketing – with its focus on crafting offers based on intimate knowledge of consumers – works better when accelerated through the peer recommendations that thrive in social media. many of whom belong to one or more shopper loyalty programs. marketers need to add proactive social marketing programs to their promotional strategies. This dynamic will lead marketers to increasingly plan their social media programs with an eye on tracking shopper data. with an expectation that their efforts will tie directly to ROI. Even though brand marketers will increase their spending in social media and shopper marketing more than almost any other format in coming years1. Shopper marketin DIGITAL MAGAZIN E Social media the new “starting point” for consumer engagement Traditional media informs and reminds post social dialogue IN TORE S TY OYAL L TA D DA CAR Measure social media spend against loyalty card behaviors Use to develop effective shopper marketing programs . Survey of CPG Manufacturers and Retailers. We expect this to change dramatically in the very near future. 1 GMA/Booz & Co.THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 2 What Does Shopper Marketing Have to Do With Social Media? Social media is powered by people. And because the ROI of social media can be demonstrated more powerfully through loyalty program data than any other method.

Opinion Leaders Matter Only If they Show Loyal Behavior Opinion Leaders” create the most word of mouth if. offsite and online.THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 3 Can Shopper Marketing and Social Marketing Work Together? One of the earliest studies of social media’s impact on loyalty and shopper marketing occurred in 2003. leading to stronger results. . and only if. Authentic dialogue was created in-store.000 Rock Bottom Loyalty Cardholders . not friends. they are loyal. 2004. This was measured through loyalty program acquisition and transaction data provided by Rock Bottom Brewery. A B C E D F New IG H H W LIGHT LOYALTY W > HEAVY LOYALTY W O M LO H IG H RY OM VE W Loyal O M Firm-Created Word-of-Mouth Communication: A Field-Based Quasi-Experiment. The Proof is in Loyalty Card Data Social Marketing was proven to impact loyalty behavior and restaurant sales. 75 37 55 Increase in program membership % Growth in dollars spent per cardholder % % Increase in loyalty transactions Learning New Information Between Acquaintances Creates Stronger ROI Peer recommendations are most powerful when it occurs between acquaintances. Harvard Business School’s Dave Godes and Yale University’s Dina Mayzlin partnered to study how accelerating consumer dialogue would impact loyalty behavior and sales. David Godes and Dina Mayzlin. Information between A and D is “new”.and non-cardholders – were provided deep experiences with the brand and encouraged to share their opinions with others. EXPERT NON-EXPERT New Loyal Customers Are More Likely to Create Significant ROI The most powerful incremental WOM may come from those less-loyal. They studied a social marketing program developed by BzzAgent for Rock Bottom Brewery. Those most loyal have probably already told everybody – both strong and weak ties – in their social networks about a product or service. where 1.

70 SIXTY FOUR % FIFTY SEVEN % % Of BzzAgents are Sainsbury card holders Product Categories British Consumers Discuss 1+ Time Per Day FOOD & DINING BEVERAGES THE HOME HOUSEHOLD PRODUCTS PERSONAL CARE & BEAUTY CHILDREN’S PRODUCTS THIRTY THREE % THIRTY % TWENTY NINE % EIGHTEEN % Source: Keller Fay. a number of supermarket chains cover the entire region (not the case in the U. 68 % Of BzzAgents are TESCO card holders 1 BzzAgents are volunteer brand advocates who have self-identified as liking to share their opinions about brands across social mediums.THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 4 Is there a Social Media Consumer and Loyalty Cardholder Overlap? For Starters.) which makes them nationwide brands. and talking about brands. More than half of their 25 million households carry a loyalty card for at least one supermarket chain. Yes in the UK Question: Are consumers who are engaged in social media. According to Keller Fay (a word-of-mouth research firm). The United Kingdom is a perfect market to consider. May 2010 . TalkTrack UK. also engaged in loyalty programs? Grocery brands are surprisingly talkable.S. Tesco and Sainsbury’s are among the 10 most talked about brands in the UK. Majority of Vocal Consumers are Supermarket Card Holders Vocal consumers are more likely than the general population to carry loyalty cards. The number of UK BzzAgents1 who carry loyalty cards is eye popping.

shopping behavior and measured social influence. We expect a simple formula to emerge among teams managing social media and shopper marketing.bzzagent. 1 IDENTIFY 2 ENGAGE 3 ACTIVATE 4 MEASURE IN-HOME SERVICES SHOPPER DATA COUPONS ADVOCACY RESEARCH SHOPPER REWARDS EVENTS ONLINE REACH OFFLINE REACH COUPON REDEMPTION SURVEYS MATCHED MARKET TEST MARKET MIX MODELING SAMPLING ANALYSIS Select loyalty program members to participate in structured advocacy activities.com or call us at 877• BZZAGENT . Program impact measured via loyalty program data. Use loyalty program touch points to deliver brand experiences that motivate. coupon redemptions. and drive activity. psychographics.THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 5 4 Steps to Tracking Social ROI Through Shopper Marketing. Teams that use it successfully will increase the earned reach and overall impact of shopper marketing programs while increasing the measured ROI of social channels. To learn more. media attribution models. Targeting should be based on demographics. Participants encouraged to share brand experiences with peers via digital tools and in-person conversations. educate. go to about.

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