MARKET WATCH
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Social Media for Brand Conversations on the Rise: Study
Americans are increasing their use of social media for discussions about favorite brands, while slowing down on face-to-face and phone conversations about product likes and dislikes. That’s the key finding from new word-of-mouth (WOM) research from COLLOQUY.
Social media brand recommendations have grown 4% since the firm conducted survey research in 2011 on the WOM habits of U.S. consumers, while face-to-face recommendations have declined 4% in that time period.
COLLOQUY's latest WOM insights are featured in a report titled Hashtags, Tweets and Likes: Nurturing Digital Word-of-Mouth Engagement. The report, available free of charge at http://www.colloquy.com/social-wom, is authored by Research Director Jeff Berry. COLLOQUY is the research arm of LoyaltyOne, a global provider of loyalty and marketing programs.
In previous WOM research, COLLOQUY coined the term WOM Champions to describe the select group of consumers who are most loyal to, engaged with, and willing to recommend brands. In Hashtags, Tweets and Likes, Berry says WOM champions are driving the move to social media.
This particular group is almost twice as likely to recommend brands via digital channels compared to the general population, according to the 2013 research. In fact, six out of ten WOM Champions use social networking communities to recommend or discuss products and services, the latest research shows.
“Brands that want to spread the digital word should engage WOM champions found in their loyalty programs,” Berry said. “That will be done most effectively by focusing on young adults, women and Hispanics, the segments with the most WOM champions.”
Berry based his recommendation on COLLOQUY research results showing that among young adults who participate in loyalty programs, 40% are WOM Champions. Close behind are women at 38% and Hispanics at 37%.
In another key finding from Hashtags, Tweets and Likes, nearly half of the general population believes social networks are an inappropriate way for brands to interact with customers. But that sentiment isn't shared across the board. The research shows that 73% of the youth segment said it is appropriate.
COLLOQUY's 2013 WOM study is based on a June 2013 survey conducted among a representative general population group and five other segments. The segments are affluent consumers, young adults, seniors, core women and Hispanics. Results are based on responses from 2,980 U.S. survey participants.
IRI and SPINS Create New Consumer Segmentation
Consumers are increasingly embracing natural and organic products, and often they are as concerned about what is not in the products they buy, especially food, as much as what is in it.
To assist CPG manufacturers and retailers in generating new levels of growth through a better understanding of these shopper needs, Information Resources, Inc. (IRI) joined forces with SPINS to create SPINS NaturaLink, a new and unique segmentation of the total U.S. population, which focuses on how shoppers think about, purchase and use natural/organic/eco-friendly products.
IRI provides innovative solutions and services for consumer, retail and over-the-counter healthcare companies. SPINS provides insights, reporting and consulting services for the natural, organic and specialty products industry.
“SPINS NaturaLink identifies seven distinct consumer segments based on lifestyle, organic/natural purchasing history, attitudes toward organic/natural products, the importance of physical and emotional category/product needs, and demographics,” says Robert Tomei, president, Consumer and Shopper Marketing, IRI. “The segmentation offers an important set of insights for leveraging existing natural/organic buyers and attracting new shoppers to these products.”
Two shopper segments, “True Believers” and “Enlightened Environmentalists,” offer outsized opportunities for manufacturers and retailers. Each group represents 9% of the U.S. population, but together account for 46% of all natural/organic product sales.
AFS Technologies Schedules Annual Industry Conference
Registration has officially opened for AFS Technologies’ annual Industry Conference March 16-18, 2014 at the Sheraton Wild Horse Pass Resort in Chandler, Ariz.
An expanded conference agenda aims to provide AFS clients, partners and prospects with access to business technology trends, software functionality training, industry best practices, and the top thought-leaders in the food, beverage and consumer goods (CG) space.
As a direct result of customer feedback, the agenda will debut peer-to-peer sessions for like-minded system users as well as shine the spotlight on verticals impacting long-term success in today’s business environment, including retail execution, business intelligence, mobility and data synchronization. Attendees will have the freedom to mix and match track sessions throughout the two-day event to capitalize on various workshops covering the areas of trade promotion management, foodservice, direct store delivery (DSD) and warehouse management.
GNC Partners with dunnhumbyUSA to Drive Personalization
GNC, the nation's largest specialty retailer of health and wellness products, has selected dunnhumbyUSA for a data-driven customer science partnership. The latter was chosen to apply its customer centricity solutions across all facets of GNC’s marketing, working closely with the retialer to more effectively segment and engage with customers of its more than 6,200 retail outlets and online at GNC.com throughout the United States. This will include personalized communications and offers to shoppers through both online and offline channels.
The retailer began down a path to customer centricity more than a decade ago with the introduction of the GNC Gold Card, which currently engages several million GNC customers. Earlier this year, GNC launched the Member Price Program to offer even more value to Gold Card members, making benefits previously offered one week per month now available to customers every day.
Joseph M. Fortunato, GNC’s Chairman of the Board, President, and Chief Executive Officer, said: “Partnering with dunnhumbyUSA represents a significant investment in our direct marketing efforts to be as customized and relevant as possible to every customer on a more personalized level.
“The ability to completely understand our customers’ shopping patterns provides GNC the ability to target products and offers that each customer desires for their individual health and wellness needs, as well as complementary products that will add value to them achieving their individual goals. Our end goal is to maintain customers for life by providing them the best supplement brand and products in the world,” he said.
Stuart Aitken, CEO of dunnhumbyUSA, said, “For us, delivering relevance is crucial to growing that customer enthusiasm about the GNC brand. We want to keep those customers coming back for more and more, year after year.”
TABS Group Forms Dedicated Wal-Mart Analytics Team
TABS Group, a technology-enabled analytics firm, has formed a senior-level team dedicated to supporting internal and customer-related initiatives with Walmart.
TABS Group will tap into its new talent base to obtain a comprehensive understanding as to how the largest U.S. retail chain operates on a chain and local level. The insights gained are designed to benefit Walmart and consumer products manufacturers and further contribute to the firm’s mission to simplify and improve the way analytics is conducted within the industry.
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