The Role of the Internet and New Media on Consumer and Firm Behavior

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From the Fuqua Forbes "Future of Marketing" conference.

David Buckley GEMBA ’09, Chief Marketing Officer at Sears Hometown & Outlet Stores

Published in: Marketing
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The Role of the Internet and New Media on Consumer and Firm Behavior

  1. 1. Where do you focus your time? 42% of online adults now use multiple social networking sites. 1 1 Social media usage question from a Pew survey, conducted July 18September 30, 2013 among 6,010 adults in the U.S. 2 http://dvm8run94lq3.cloudfront.net/wpcontent/uploads/2013/10/social-media-map.pdf 1
  2. 2. Where do you focus your time? You can’t do it all….. • New Platforms are launched everyday. Someone in your organization will be convinced you need a strategy for that platform. • Understand your ability to maintain the platform. Sometimes it is better to be a fast-follower. • 123 of the Fortune 500 are on Instagram • Over 1/3 of those accounts have gone longer than 30 days without a post • Understand your space and if it is where your customer wants to interact with you. Social media can be the most expensive free media based on how many people you might reach. • General Mills ranks 7th among the Fortune 500 for the number of pictures posted to Instagram • Through the end of January General Mills had made 890 posts to a total 1,987 followers Here are 2 places where we spend a great deal of energy…… 2
  3. 3. Facebook Why: • 71% of online adults are now Facebook users1 • Half of internet users who do not use Facebook themselves live with someone who does.2 • Facebook demographics closely match our customer • Excellent penetration into rural markets and with adults 30-64 years old. • If we didn’t embrace Facebook, our owners would do it without us 1 Maeve Duggan and Aaron Smith, Pew Research Center, January 2014, “Social Media Update 2013” 2 Pew Research Center’s Internet Project Survey August 7-September 16 2013 3
  4. 4. Facebook What we did differently: • In July of 2011 we partnered with a small start-up tech company to centrally manage over 1,200 individual Facebook pages. We were the first retailer to launch a local effort at this scale. • We launched a parent-child relationship between all of our Facebook store pages and our format brand Facebook pages in a beta partnership with Facebook. 4
  5. 5. Facebook • We are able to post nationally relevant brand and engagement content while providing the local owner full rights to post relevant local content. • We are able to monitor the content centrally and ensure content is appropriate and that conversations are moderated • Local fan growth grew as a result of local personal connections between our owners and their customers. From the launch of the “hub & spoke” strategy, we grew addressable fans from 26K fans to over 330K fans National Local 5
  6. 6. Local Online Reviews Why: • 72% of consumers trust online reviews as much as personal recommendations1 • Most local online business listings now allow consumers to post reviews • Yelp has generated 47 million reviews 2 and reaches 117 million monthly users 2 • Importantly for our business: 20% of monthly Yelp users have searched for Appliances3 1 The Local Web: The Linchpin to successful local advertising (Balihoo) 2 Yelp 3 Yelp/comScore June 2013 6
  7. 7. Local Online Reviews What is the problem with most social media monitoring tools and this Yelp review? Many reviews on local listing sites do not reference the brand in their review, because the business the consumer is reviewing is already implied. These reviews don’t get picked up by the tools that scrape the web for brand mentions. 1 The Local Web: The Linchpin to successful local advertising (Balihoo) 2 Yelp 3 Yelp/comScore June 2013 7
  8. 8. Local Online Reviews What we are doing differently: • In addition to the use of social media monitoring tools, we partnered with another start-up tech company to directly monitor reviews left on local business listings on nearly 20 different publisher sites. • We are able to receive real time reporting on all local reviews, which can be automated to be routed to the appropriate party based on review content and store location. • We are currently in the process of fully integrating local customer reviews into the fabric of our organization. • Inclusion in our VOC meetings • Full integration into our customer recovery platform • Inclusion in our customer service scorecards 8
  9. 9. Where do you focus your time? Build a framework based on your business strategy Yelp Twitter Yelp  High in Local Discoverability/ High in Reputation. Facebook Reputation Facebook High in Local Discoverability/ High in Reputation. Foursquare Google + High in Local Discoverability/ Low Reputation. Foursquare High in Local Discoverability/ Moderate Reputation. Instagram Snap Chat Google+ YouTube Pinterest Twitter Low Local discoverability / High in Reputation. Local discoverability *Graph was mapped based on network population size 9
  10. 10. What’s Next? “Big Data” has been a big topic. • Mobile will change the game • Mobile can provide information which marketers can use not only to serve more relevant ads, but to understand the actual impact to store traffic • Beyond marketing, data provided by mobile ad providers can provide deeper insights than ever seen before • Right now, many of you have applications running in the background of your devices and you have allowed location permissions…..so? Every time your phone makes an ad call to an ad network, companies which are provided the opportunity to bid on that ad receive basic information including device identifier and lat/long. What does that look like in real life? 10
  11. 11. Opportunities/Implications Our vendor, JiWire has been leveraging location data since 2003 • 850+ Million devices profiled anonymously • 20 Billion location tags and adding 1B+ tags/month • 270 Million active devices profiled • Provides OBA compliance and Ad Choice opt-out, supporting the 4As, DMA, IAB and MMA Ad Choices self-regulation initiatives Opportunities • Extremely rich targeting capabilities • Precise campaign measurement beyond the click • Mobile as a Business Intelligence Tool Implications • Collecting data over time paints a picture less anonymous than consumers might think • Appending 3rd party data to implied addresses may indirectly remove anonymity 11

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