Location-based social networks (LBSNs), apps that are downloaded on a mobile phone, offer organizations a possibility of right-time, right-place marketing by connecting people and nearby points of sale with geotargeted media. Forrester's Technographics® data shows that only 4% of US online adults have ever used location-based social networks, such as FourSquare and Brightkite, on their mobile phones, with only 1% using them more than once a week. Although the uptake is limited to a small group, this doesn't mean that LBSNs are not useful.
Looking at the profile of location-based app users, we see that they are:
Influential.Geolocation users are 38% more likely than the average US online adult to say that friends and family ask their opinions before making a purchase decision.
An interesting target group.They are typically young adult males with college degrees.
Heavy mobile researchers.They are also far more likely to search for information about businesses and products, as well as read customer ratings/reviews of products and services
As retailers approach the homestretch of the 2010 holiday shopping season, we thought it would be useful to share some insights from consumers about their Web buying activity. Forrester and Bizrate Insights teamed up in late November/early December to survey online customers, and here are a few of the findings:
Free shipping with a threshold is most popular (though people would, naturally, prefer to have no threshold). One interesting fact is that the threshold (in addition to adding units to transactions) attracts higher-income shoppers. Households with incomes over $150k are nearly twice as likely to use “free shipping with a threshold” than households with incomes less than $40k.
9% of shoppers say they belong to some shipping club (e.g. Amazon Prime, ShopRunner) and participation skews up with income. 13% of households with incomes over $150k say they have this type of membership.
Email still rules. From our Cyber Monday research with Bizrate Insights, 43% of consumers who shopped online on that day found out about deals through email. This was by far the most popular way that people found out about deals, greater than search, Facebook, or even word of mouth. The second biggest source of finding out about deals was a retailer’s own site.
It’s about women and gifts during the online shopping season. Again from our Cyber Monday research with Bizrate Insights, 69% of online shoppers were women. Only about half of men purchased gifts for others that day, but 78% of women purchased gifts that day.
I stopped by my local Whole Foods the day before Thanksgiving to pick up some appetizers. And as I deliberated at the cheese counter, I couldn’t help but overhear what one cheese monger said loudly to the other: “This lady came up to me complaining about the store. This store’s too small, you don’t carry the things I need. I told her she’d have to talk to customer service. I mean really, I just work here.”
I just work here??! Did I honestly hear someone say that? In Whole Foods? Not only did this guy undermine the Whole Foods brand with his interaction with the original customer, but he made a bad personal decision to relay his story in front of other customers!
As Steve Portigal mentioned in a comment on one of my previous posts, employee authenticity is key to great customer experiences. (To see just how bad an inauthentic customer experience can be, check out my last post, "Worst Online Chat Ever!") But employee authenticity is really only effective if it aligns with a company’s brand attributes. Being an authentic jerk isn’t going to cut it in customer experience land!
A lot of employee behavior comes down to corporate culture — and in his "How To Build A Customer-Centric Culture" report, Paul Hagen mentions two things in particular that I think directly influence employee authenticity. Companies need to:
ScanLife reported that the amount of scanning traffic was 30x higher during Thanksgiving weekend than one year ago. Wow! Product purchases from the application were also up nearly threefold. Books were most purchased. Toys were most scanned. See this story on PR Newswire. This Forrester report offers our perspective on a developing technology.
As you may have read, I've just published a report entitled "Untangling the Attribution Web" (subscription required). In the course of researching that report, it became clear that, despite the many years of discussion surrounding what's commonly called "fractional attribution," there's still a dearth of organizations who have successfully implemented a measurement approach beyond legacy last-touch allocation methods. Financial services firms get close, especially those who are using marketing mix modeling. And a handful of retailers are executing a cross-channel attribution strategy, but many of them are still battling inconsistent metrics and channel conflict. So we found ourselves wondering why adoption of such a critical business initiative has stagnated.
As a result, we've created a very brief survey for attribution vendors and multichannel marketers to help us assess the current state of attribution. The survey will give us some visibility into the key challenges and opportunities surround attribution, and why its adoption is lagging. And, it will help guide our next report, wherein we'll provide an organization readiness assessment for attribution, and lay the framework for its successful implementation.
Please take five minutes to complete the survey; all responses are anonymous and only reported in aggregate. The next report will go live late this month or early in January, and participants will receive a copy of the published report.
Brace for impact. What I'm about to say is going to make a lot of people angry, including some of the people at Google who are going to rightly point out that when they pre-briefed me on today's Google eBooks announcement, we never once discussed ad-supported reading.
Instead, they told me all about their plan to establish a set of tools that will offer eBooks to people looking for book information through Google's search engine. They explained that this will make it possible for the millions of people who conduct book-related searches every day to have easy access to 3 million books -- some out of copyright, some out of print but under copyright, and a full range of in-print titles including bestsellers. They also described how independent booksellers will be able to use the same set of web-based commerce and reading tools to build their own branded eBook stores to finally extend their brick-and-mortar customer relationships into the digital space.
Since then, I've spoken to half a dozen reporters who were also pre-briefed and they have all had a similar set of questions: can Google compete against Amazon (no, but it can compete against Barnes & Noble), is it too late to make a dent in a mature market (no, less than 10% of online adults in the US read eBooks, there's plenty of room to grow), is Google's cloud-based strategy unique (yes and no, it supports all devices except the Kindle, but the Kindle platform actually supports as many devices as Google will).
Enough with the Groupon madness this week. Let’s talk about things that actually impact our businesses. Like holidays sales to date, and in particular, a quick post-mortem on Cyber Monday now that the week is over. Forrester fielded some questions to consumers in conjunction with Bizrate Insights (the findings will be available in full to clients in a few weeks) and here are some quick takeaways as teasers:
Most people don’t buy on Cyber Monday (though many would like to), so the Cyberweek deals like Amazon has are always a good idea. 62% of the 3,200 shoppers we surveyed said that they didn’t shop on Cyber Monday.
Of those who shopped but did not buy (45% of shoppers who were trolling eCommerce sites on Cyber Monday!), 28% wanted to buy but didn’t see any products that they wanted. Product selection is king.
Social, schmocial. Not such a big deal yet. Only 7% of people who found deals on Cyber Monday found them through social networks or Twitter, versus 51% who found them from emails from the retailer.
Some people live under rocks. Kidding. But one-fifth of the people who didn’t shop on Cyber Monday said “They didn’t know there was anything special about that day.” How that is possible I have no idea, but I’ll give them the benefit of the doubt and assume they don’t have time in their lives to squander away time online like the rest of us. But for anyone really wondering what this “special day” is about, check out this link (see the full slideshow here) — these are screen shots of the top 50 merchants’ home pages from this past Monday.
In October, Ron Rogowski provided a couple of excerpts from one of our colleague's online chat with her cable and Internet provider. But this chat session was so bad that I couldn't resist the urge to share it in its entirity. (Read to the end for a fantastic Yoda moment.) By the way, I made no edits to the transcript other than to change the names and obscure identifying information.
* * *
User Elizabeth has entered room.
Elizabeth (Sat Oct 2 11:36:45 EDT 2010) > I don't know my [company] ID or my password, so I can't log in to my account. I tried to set up a new account, but the site says my account already has an online account. Can you please reset my information (so I can create a new account) or help me log in?
Analyst Carol has entered room.
Carol (Sat Oct 2 11:36:50 EDT 2010)> Hello Elizabeth, Thank you for contacting [company] Chat Support. My name is Carol. Please give me one moment to review your information.
Carol (Sat Oct 2 11:37:05 EDT 2010)> My pleasure to have you on this chat, Elizabeth! Remaining committed and focused on my goal which is to provide quality customer service at my fullest effort will always be at the pinnacle. It is with utmost sincerity that I want to extend apologies for any trouble, inconvenience and frustration the log in issue has brought along your way. I simply hope you are doing fine.
Carol (Sat Oct 2 11:37:26 EDT 2010)> No worries. As your [company] service representative, I want you to know that issue resolution and your satisfaction are my top priorities for today. Together, we can work this out, Elizabeth.
Many people consume content from multiple media channels simultaneously (see for example this recent post on European youth), but does the content they’re looking at actually overlap? We looked into our Technographics® data to see what consumers are doing on their computers while watching a TV show and we found that the top four activities have nothing to do with what they are watching.
Because consumers are using their PC for activities that require more attention than watching TV – which is mostly a passive activity — it’s questionable how much of the TV content they are even registering. Almost one-third of consumers are playing games on their computers while watching television, and one-quarter are doing schoolwork. Has the TV just become background noise?
We also see that 44% of consumers are communicating with friends via social networks, chat, and email on topics that are not related to the show. So consumers are interested in content online, but not necessarily in parallel with the broadcasting of a show. Market researchers need to develop a research plan that helps companies understand how and when consumers watch TV, and when they are checking out online content related to the company's products or brand, in order to build a marketing strategy that reinforces the message across channels.
I am writing this blog sitting comfortably in an ICE express train travelling from Berlin, where I have just spoken and, more importantly, listened at the B2B Marketing Europe conference, where the conference motto was “Next Generation Marketing.” This two-day conference offered a truly inspirational mixture of presentations by:
B2B marketing gurus Chris Brogan and Rick Segal. Chris, who is president of New Marketing Labs, stood up front for 45 minutes with neither notes nor slides and casually threw out dozens of valuable comments, tips, and examples taken from his latest marketing 2.0 tome, Trust Agents. Rick is the founder and chief practice officer of GyroHSR, a firm that has won 20 Agency of the Year awards over the past 15 years from Advertising Age, BtoB magazine, and the Business Marketing Association, and he is the exact opposite of any of the characters in Mad Men. Rick explained how work and private activities are now really mixed up — people no longer go to work physically; they switch on the work state of mind anywhere and at any time, which means that marketing to this audience must change. It is one of Rick’s insights that I’ve cited in the title of this post, and his concept of “the new @work state of mind” makes Forrester’s data on tech buyer Social Technographics® so obvious and logical (I presented the European data at the conference). From now on, I will be using his concept whenever tech vendor clients doubt our numbers on how socially active their customers are.