Brand Connected Consumer Research

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Brand Connected Consumer Research

  1. 1. BRAND CONNECTEDCONSUMERSResearch Findings
  2. 2. Table of Contents• Objective• Methodology• Expo Panel Note• Executive Summary• Who are Brand Connected Consumers?• What are Brand Connected Consumers doing online?• Why should I care about the Brand Connected Consumer?• How can I engage with Brand Connected Consumers?• Summary• Appendix A di
  3. 3. ObjectiveEconomics have evolved! Shopping has circumventedbrick and mortar. The stage is global, the medium isdigital!”While we all understand the general importance of digitalcommunication, what we don’t know is: • When consumers connect • Why consumers seek and provide brand information • How impactful online engagements can be on consumer behaviorWe set out to determine just that.
  4. 4. MethodologyBy surveying populations of both engaged consumers and members of thegeneral population, we hoped to provide clear insights on when, where and whyconsumers engage with brands in order to determine just how impactful thoseconnections are and how valuable brand connected consumers can be.Our study incorporated both quantitative & qualitative methodologies:Quantitative: Online survey, 20 mins. in length. Fielded U.S. respondents from y, g p (2) separate panels • EXPO sample: n= 699 • Gen. pop Gen pop. sample: n=300Qualitative: (3) Online video focus groups, 1 hour in length. Fielded respondents from EXPO panel
  5. 5. EXPO PanelWe found that respondents from the EXPO panel differed significantly frommembers of the general population. Generally speaking, they reported strongerdigital attitudes compared to gen. pop. and were more likely to post informationafter using a product. Therefore, we analyzed the data using (4) segments:• Brand Connected Consumers: • Hyper BCCs– Members of the EXPO panel (n=346) • BCCs– Members of the Gen. Pop. panel (n=84)• Brand Aware: • Hyper Brand Aware– Members of the EXPO panel (n= 302) • Brand Aware– Members of the Gen. Pop. Panel (n=184)**Note: For this study, we support general insights using gen. pop. data in order to ensure thegeneralizability of the study’s findings. However, we do illustrate important findings based onEXPO data in various locations”**Sample Caveat: Duplicate submissions, error-filled submissions, and non-connected consumers were removed from theanalysis, which accounts for the 51 removed EXPO respondents and the 32 removed Gen. Pop. Respondents** y , p p p
  6. 6. Executive SummaryOur study finds that 80% of shoppers are digitally engaged with brands in some way way,whether just searching for brand information or posting about their experiences withbrands. However, some consumers, termed ‘Brand Connected Consumers’ (BCCs), aremore connected than others, and can have a great impact on the public opinion and thepotential sales of a brand.BCCs post to and about brands frequently (at least once per week) filling cyber-spacewith their experiences and opinions of brands and products with the main goal ofhelping others make good purchase decisions. Coincidentally, we find that the placesBCCs are providing information are the exact places where other consumers aresearching f it making th hi for it, ki these BCC very i fl BCCs influential overall. ti l llWe also discover the impact of online interactions with brands. When consumers reachout to brands, the brand’s response (or lack thereof) can have serious ramifications onthe consumer’s buying behavior. Responding in a less than satisfactory way can resultin losing a customer, while simply acknowledging a customer’s comment can lead tonew customers or increased business with existing customers. Moreover, the moresatisfied a consumer is with a brand interaction, the more likely they are to post aboutthe brand and recommend that brand to friends and family. Bottom line, brandinteractions can impact buyer behavior.The more engaged the consumer is and the more frequently they communicate, themore valuable they are to brands. Brand Connected Consumers are passionate aboutbrand engagement and they should be leveraged as a resource by brands. Bysatisfying the BCCs’ need for acknowledgement, the brand can instantly g y g g , y generatepositive buying behavior, PR and word of mouth marketing. 6
  7. 7. WHO AREBRAND CONNECTEDCONSUMERS? 7
  8. 8. Most consumers digitally engage with brands in some way; however some consumers engage however, more than others Within the 80% segment, there are80% of consumers varying degrees of digitalpperform at least ( ) (1) engagement, with the most importantof the following (3) 25% and influential group being Brandactivities at least BCC Connected Consumersonce per month • 100% of these BCCs post both to and• Posting messages about brands at least once per week. about brands anywhere online (e.g. – on blogs, websites, etc.)• Looking for information like messages, messages videos or 55% Brand Aware pictures about brands online (e.g. – on blogs, brand websites, YouTube, etc.)• Posting messages directed at brands on social networks (e.g. – On Facebook, Twitter, et c.) 20% Not Connected
  9. 9. Demographically, Brand ConnectedConsumers are young, educated and part of atraditional family• More likely to be female• Younger than other consumers o Nearly 6 in 10 are between 18 and 34 years old• Are completely responsible for their household’s weekly grocery household s shopping• She’s employed• Has an average Household Income• Is educated o 6 in 10 have at least some college experience• Lives in a family household o More than half have 3+ people in household o Tend to have 1 or 2 kids in their household
  10. 10. BCCsBCC are very engaged with b d and d ith brands dshoppingThey shop, seek information and post information more frequentlythan others across retailers and categories because:• They Th are i innovators t • They always know about the latest technology and products • They are far more likely to search for and trust the information online, both from consumers and brands , • They are informants • They are far more likely to share information with others online; an activity they very much enjoy • They are regularly approached to share their advice and experiences with products
  11. 11. TheyTh engage at all ti t ll times th throughout th path-to- h t the th tpurchase BCCs • BCCs look for information and post to Before they buy a and about brands both before and after product 64% they have purchased a product • Interestingly, 8 in 10 BCCs engage with brands in their free time, even when they After are not in shopper mode because of their they’ve th ’ innovator and informant status used a product 43% In their free time / just for 79% ! fun Data Shown: % engaging in at least (1) brand-connecting activity
  12. 12. WHAT AREBRAND CONNECTED CONSUMERSDOING ONLINE? 12
  13. 13. BCCsBCC use many diffdifferent social media websites, t i l di b itand are using them more frequently than others How frequently do you use each of the following social media sites? BCC vs. Brand Aware100% 90% 5% 11% 80% 10% 70% 8% 60% 20% 8% 6% 50% 14% 17% 19% 40% 80% 30% 14% 58% 22% 51% 20% 37% 10% 23% 5% 4% 5% 13% 4% 5% 0% 3% Brand BCC Brand BCC Brand BCC Brand BCC Aware Aware Aware Aware Pinterest Twitter YouTube Facebook Every day A few days each week Once a week
  14. 14. Regardless of the occasion, or even the category they are shopping for, BCCs are looking for information in a variety of places For EverydayFor Special Events For Big Ticket Purchases PurchasesFamily / Friends (50%) Family / Friends (47%) Family / Friends (60%)Online Retailers (42%) Brand Websites (39%) Retailer Websites (50%)Retailer Websites (40%) Online Retailers (37%) TV (46%) **Note: Hyper BCCs are far more likely to use resources for both big ticket and everyday purchases compared to gen. pop. BCCs
  15. 15. BCCsBCC fill cyber-space with many t b ith types of finformation How frequently do you use each of the following activities online? Post text messages about products or services 47% 15% 12% anywhere online Post pictures about brands anywhere online 38% 21% 7% Post videos about brands anywhere online 31% 19% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% Every day A few days each week Once a weekAnd they share this information (predominantly their ‘good experiences ) in a good experiences’)great many places, including on: • Facebook (87%) • Retailer websites (85%) • Online retailers (e.g. – Amazon.com) (80%) • Brand websites (74%) • Blogs (63%) • Review sites (63%) • YouTube (57%) ou ube (5 %) • Twitter (55%)
  16. 16. WHY SHOULD I CARE ABOUTBRAND CONNECTEDCONSUMERS? 16
  17. 17. BCCs are important because they are influentialThey provide the information that all consumers seek• BCCs frequently inject their opinions of brands into the cyber-sphere • 8 in 10 BCCs post messages both about and directly to brands at least a few times a week• As the majority of consumers feel it’s important to hear about the j y p experiences of others before they buy a product, other consumers are likely to be looking for information that the BCC is providing • 7 in 10 consumers agree that it’s important to hear about the experiences of others before making a purchase • More than half of other consumers look for brand information at least once a monthTheir attitudes towards brand interactions can significantly impactpurchase intent• Dissatisfactory responses can result in lost sales opportunities while satisfactory responses can result in increased sales opportunities
  18. 18. All consumers want information to find “the truth,” gauge quality and di lit d discover savings, and BCC i d BCCs enjoy providing information to educate others “To help others.” “To save time and money while finding the best quality “I want people to be informed.” product to suit my needs.” “So th “S other people can make a d i i l k decision“To see reviews and see “The information based on my (and others) experiences.”what how companies are among customers responding/customer is less biased.” “I think people want to know.” service. service.” “To show my appreciation.” “To see others experiences before I buy.” “Why do you search for brand information?” “Why do you post information about brands?” b d ?”
  19. 19. Consumers are l ki f i fC looking for information where ti hBCCs are providing it Where BCCs provide information
  20. 20. The quality of a brand s response can have a brand’smajor impact on the consumer’s purchasebehavior• 1 in 4 times a consumer is less than satisfied with an online brand exchange, they completely stop buying products or services from the brand• When consumers are satisfied with an exchange they have with a brand 4 in brand, 10 report purchasing significantly more of the brand’s products or services, and 2 in 10 will buy the brand’s offerings for the very first time• Further, Further satisfied consumers are significantly more likely to recommend to others that buy the brand’s products or services “Whoa!” “Wh !”
  21. 21. The b d’Th brand’s response t negative posts can to ti thave an even bigger impactWhen brands fail to respond to negative posts it will most likely result inlost sales: 30% no effect 70% stop buying from the brand **Note: 56% of the time a consumer posts a comment because they are unsatisfied, they receive no brand response response**
  22. 22. HOW CAN I ENGAGE WITH BRANDCONNECTED CONSUMERS? 22
  23. 23. First, you must look for them where they areposting informationRemember, BCCs post to a variety of places, but Facebookdominates To T post personal opinions: l i i To post questions: **Note: Qual suggests consumers know when to give feedback and when it won’t be worth their while, based on the quality of the page**
  24. 24. Then you must provide good customer serviceand quickly respond to BCCs’ posts in order to BCCsavoid lost customers• Even though 6 in 10 consumers that send messages directly to brands say it s it’s because they’re satisfied it’s still important to consumers that they’re they re satisfied, it s they re acknowledged by the brand in various locations: • On the brand’s social network pages (80% feel it’s important that their feedback is acknowledged) • On their personal social network pages (70%) • On review sites (75%)• And they’re confident that brands both see and value their posts in each of those locations: l ti % that are confident brands see % that are confident brands value Resource their posts in each location information they provide in each location Brand social network pages 83% 87% Personal social network 73% 79% pages Review sites 79% 80%
  25. 25. Acknowledging BCC ’ i easier th you thi k a A k l d i BCCs’ is i than think, simple “Thank You” often does the trick“How would you have likedthe brand to have respondedto your post?”… “I would love for them to make me feel important” “Just saying they appreciate my business” business “Simply liking my post would make me happy” “Thank me for my comment” “With a nice reply or comment” • BCCs want to feel that the brand cares about them. “Thank Yous” and personalized messages are appreciated • They are dissatisfied by standardized messages and simple contact information • Respondents less than satisfied by a brand’s response were nearly 3 times more likely to have received contact information for the consumer to reach back out to the brand compared to consumers that were satisfied (33% -> 13%)
  26. 26. IMPLICATIONSAND FINAL TAKE-AWAYS 26
  27. 27. ConclusionsC l iBCCs are extremely important Each digital connection is an opportunity to grow the brand • All consumers want and need brand information, and BCCs are often the source of that information • BCCs attitudes towards brand interactions can significantly impact purchase intent of both themselves and others • Ultimately BCCs act as brand Ultimately, journalists… …And what they publish depends on THE BRAND
  28. 28. APPENDIX
  29. 29. Shopping Behavior How frequently do you shop at each of the following retailers? At least a few times a month % shown Walmart 83% 56% W l Walgreens 64% 26% Dollar General 62% 14% Family Dollar 60% 8% Target 55% 47% CVS 49% 27% Amazon.com 47% 45% Kroger 33% 26% Costco 30% BCC 10% Sams Club 29% 9% Brand 25% Aware Safeway 9% 0% 20% 40% 60% 80% 100%
  30. 30. BCCs seek information to a greater degree than Brand Aware consumers How frequently do you search for information about each of the following brands?90% At least once a week % sho n eek shown 79%80% 74%70% BCC60% 56% 53% 51% 49%50% 40% 40%40% 36% 35% 31% 29%30% 27% Brand Aware 23% 21% 19%20% 9% 10%10% 6% 6%0% Stores Grocery / Electronics Restaurants Service Apparel Baby / kid Home Luxury Car brands household h h ld brands b d providers id brands b d brands b d appliances li brands b d products
  31. 31. BCCs also post information to a greater degree than Brand Aware consumers How frequently do you post information about each of the following brands?60% At least once a week % shown 55% 52% 51% 49% 48% 48%50% BCC 40%40% 38% 38% 30%30%20% Brand Aware 15% 14% 13% 11% 10% 8% 9%10% 7% 7% 4%0% Stores Grocery / Restaurants Service Apparel Electronics Home Luxury brands Baby / kid Car brands household providers brands brands appliances brands products
  32. 32. Special Events (Holidays, Birthdays, etc.) deep dive % of shoppers that use each resource to get product information for special event purchases Family/friends F il /f i d % 50% Online Retailers 42% Retailer Websites 40% Brand Websites a d ebs tes 38% Facebook 37% TV 32% Magazines 30% Family & friends are the go to for go-to Newspapers 27% advice on special event purchases. However more than Blogs 26% 1/3rd of consumers also reportDiscussion boards or forums 24% engaging with retailer websites, websites brand websites and Review Sites 24% Facebook, which are all locations YouTube 19% filled with information provided by BCCs Twitter 17% Pinterest 15% 0% 10% 20% 30% 40% 50% 60%
  33. 33. EXPO ANALYSISWHY EXPO MEMBERS ARE MOREVALUABLE 33
  34. 34. EXPO Panelists tend to mirror the relationships of the general population EXPO Brand Brand EXPO BCCs BCCs Aware Aware Before they buy a product 80% 64% 82% 74% After they’ve used a 79% 43% 76% 52% product In their free time / just for 85% 79% 65% 52%! fun Data Shown: % engaging in at least (1) brand-connecting activity
  35. 35. However, overall, EXPO members are more likely to post both to and about brands compared to the general population EXPO EXPO Brand Brand BCCs BCCs Aware Aware Before they Post to Brands 55% 37% 33% 21% buy a p product Post about Brands 45% 33% 23% 25% Look for Brand info 77% 57% 80% 73% After Post to Brands 71% 42% 68% 55% they’ve used a Post about Brands 73% 33% 71% 56% product Look for Brand info 42% 23% 22% 11% In their Post to Brands 72% 68% 48% 38% free time Post about Brands 74% 67% 51% 33% / just for! fun Look for Brand info 71% 61% 44% 38% Data Shown: % engaging in at least (1) brand-connecting activity
  36. 36. The Value Equation• When a consumer chooses to engage a brand, the feedback (or lack thereof) can have a tremendous impact on their behavior • Satisfaction with a response can create trial / increased purchases • Dissatisfaction with response / ignoring negative feedback can end the consumer- brand relationship• When consumers are satisfied with the brand’s response, it increases th lik lih d th t th will recommend th b d’ i the likelihood that they ill d the brand’s products or services to others• EXPO members are posting to and about brands more frequently than even gen pop BCCs, which means there is a greater BCCs opportunity for brands to connect, satisfy and encourage these consumers to communicate their experiences across cyber- space

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