SuperValu Twitter Demographics and ROI


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  • Introduce my self: Customer Insights manager SuperValu: Half volume is in 11 banners, other have is in SuperValu branded stores Retail and panel data, spectra, TDLinx 4Ps
  • SuperValu Twitter Demographics and ROI

    1. 1. SuperValu Twitter Demographics NWA Social Media Club Collin Condray (@ccondray) 5/28/2009
    2. 2. Who is SuperValu? <ul><li>4 th largest grocery retailer in the US </li></ul><ul><li>SuperValu has 11 semi-independent banners </li></ul>Updated April 2009 Maps are a geographic representation at the time of development and may not reflect recent changes. Please refer to the market profile for county listings.
    3. 3. Overview <ul><li>What is the potential reach of Twitter at SuperValu? Can enough customers be reached using this service? </li></ul><ul><ul><li>What do we know about the Twitter user? Are there enough in our operating area to matter? </li></ul></ul><ul><ul><li>What resources do we have in the Customer Insights group that can target those users at SuperValu? </li></ul></ul><ul><ul><li>Can we quantify what effect Twitter would have? </li></ul></ul><ul><li>What can we use Twitter for at SuperValu and how does it further our business goals? </li></ul>
    4. 4. Who’s Using Twitter? <ul><li>Pew Research has recently studied which online Americans are using Twitter </li></ul><ul><ul><li>Twitter is growing steadily </li></ul></ul><ul><ul><ul><li>11% of online Americans use Twitter as of December 2008 </li></ul></ul></ul><ul><ul><ul><li>Up from 9% from November 2008 </li></ul></ul></ul><ul><ul><ul><li>Up from 6% from May 2008 for all microblogging services including Twitter </li></ul></ul></ul><ul><ul><li>Twitter users are more likely to be active in other online social networks (e.g. Blogs, Facebook, MySpace) </li></ul></ul><ul><ul><ul><li>23% of social network users have used Twitter </li></ul></ul></ul><ul><ul><ul><li>27% of bloggers use Twitter vs. 10% of non bloggers </li></ul></ul></ul><ul><ul><li>Twitter adds another channel of communications for content producers </li></ul></ul>Source:
    5. 5. Who’s Using Twitter? <ul><ul><li>Of Online Americans: </li></ul></ul><ul><ul><ul><li>By age </li></ul></ul></ul><ul><ul><ul><ul><li>18 to 24: 19% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>25 to 34: 20% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>35 to 44: 10% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>45 to 54: 5% </li></ul></ul></ul></ul><ul><ul><ul><li>Income </li></ul></ul></ul><ul><ul><ul><ul><li>Income less than $30,000 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Income greater than $100,000 </li></ul></ul></ul></ul><ul><ul><ul><li>Location </li></ul></ul></ul><ul><ul><ul><ul><li>Urban dwellers </li></ul></ul></ul></ul>Source:
    6. 6. What is the Nielsen Homescan Panel? <ul><li>A group of households selected to be demographically and geographically representative of the U.S. </li></ul><ul><li>continually providing information about their purchases </li></ul><ul><li>from all outlets using in-home scanners, to tell us: </li></ul><ul><ul><li>who buys </li></ul></ul><ul><ul><li>what they buy </li></ul></ul><ul><ul><li>when they buy it </li></ul></ul><ul><ul><li>where they buy it </li></ul></ul>
    7. 7. Nielsen Terminology <ul><li>Indexes are a measure of how well a demographic compares to the national average. </li></ul><ul><ul><li>Below 100 is a low correlation </li></ul></ul><ul><ul><li>100 is average. This demographic purchases the category at the same rate as the Total US. </li></ul></ul><ul><ul><li>100-120 is a good match </li></ul></ul><ul><ul><li>121+ is a very high match </li></ul></ul><ul><li>Item $ Per Item Buyer </li></ul><ul><ul><li>Dollar / Item Buyers </li></ul></ul><ul><ul><li>The average annual dollars spent on this category per buyer. </li></ul></ul>
    8. 8. Who’s Twittering in your Neighboorhood? <ul><li>Twellohood on </li></ul>Source: Twellohood as of 5/28/2009
    9. 9. How Twellow Works <ul><li>How did Twellow get my data? </li></ul><ul><li>Twellow takes advantage of the freely-available public data feeds that come from the Twitter service. If your updates are not set to protected, then your messages sent via Twitter will be included in these feeds. Twellow then captures the data, parses it for matches within our categories, and enters your information into our system. </li></ul>
    10. 10. Self Identified Twitter Users In SuperValu’s Banners <ul><li>Acme </li></ul><ul><ul><li>Philadelphia-11,000 (Pennsylvania-27,427) </li></ul></ul><ul><li>Jewel </li></ul><ul><ul><li>Chicago-28,611 (Illinois-38,223) </li></ul></ul><ul><li>Shaw's </li></ul><ul><ul><li>Boston-15,513 (Massachusetts-24,814) </li></ul></ul><ul><li>Albertsons Southern California </li></ul><ul><ul><li>Los Angeles-12,966 (California-103,475) </li></ul></ul><ul><ul><li>San Diego-12,649 </li></ul></ul><ul><li>Albertsons Intermountain West </li></ul><ul><ul><li>Salt Lake City-2,876 (Utah-5,305) </li></ul></ul><ul><ul><li>Seattle-15,855 (Washington-26,857) </li></ul></ul><ul><ul><li>Portland-8,798 (Oregon-13,761) </li></ul></ul><ul><li>Cub Foods </li></ul><ul><ul><li>Minneapolis-7,189 (Minnesota-11,380) </li></ul></ul><ul><li>Local Reference </li></ul><ul><ul><li>Little Rock-943 (Arkansas-3,345) </li></ul></ul><ul><ul><li>Fayetteville-470 </li></ul></ul><ul><ul><li>Springdale-73 </li></ul></ul>Source: Twellohood as of 5/28/2009
    11. 11. Putting It All Together <ul><li>We know: </li></ul><ul><ul><li>How close the banner’s operating area matches the Twitter demographic and which banners are better matches and should be targeted first. </li></ul></ul><ul><ul><ul><li>Age (under 35) </li></ul></ul></ul><ul><ul><ul><li>Income (< $30k, >$100 k) </li></ul></ul></ul><ul><ul><ul><li>Region (Urban Dwellers) </li></ul></ul></ul><ul><ul><li>How many Twitter users are in each of the banner’s operating area. </li></ul></ul><ul><ul><li>How much the average customer spends on a category annually. </li></ul></ul><ul><li>We can now estimate how much additional sales can be generated by converting Twitter users to SuperValu shoppers. </li></ul>
    12. 12. Potential Sales Calculations <ul><li>Estimated sales are calculated by: </li></ul><ul><ul><li>Number of Twitter users in a SuperValu banner </li></ul></ul><ul><ul><li>Times the average dollars spend per shopper (green highlighted rows) </li></ul></ul><ul><ul><li>Times an estimated conversion factor (20% of Twitter users become new shoppers) </li></ul></ul><ul><li>Other Estimate Considerations: </li></ul><ul><ul><li>The number of Twitter users per region is self reported. Twitter users are not required to include their location in their profiles. This means there are probably more users in all of these regions. </li></ul></ul><ul><ul><li>Twitter users in adjacent cities are not included which will also increase potential new customers. </li></ul></ul>
    13. 13. SuperValu Category X Twitter Demographics* <ul><li>Cub, Acme, and Jewel index highest to those demographics who are most likely to use Twitter. </li></ul><ul><li>Households making $30,000 and less do not index well for any banner in this category. </li></ul><ul><li>Potential New Annual Sales: $576,933 </li></ul>Source: AC Nielsen Homescan Panel- 6/28/2008, *All Nielsen Data is Simulated
    14. 14. Results <ul><li>Total Estimated New Annual Sales </li></ul><ul><ul><li>All Categories - $X,445,841 </li></ul></ul><ul><ul><li>Tyson Categories - $X,323,632 </li></ul></ul><ul><li>We also know which banners have index highest to those demographics that use Twitter and should be targeted first. </li></ul>
    15. 15. Wal-Mart Analysis <ul><li>Wal-Mart has a similar demographics breakdown for every one of their stores. </li></ul><ul><ul><li>Based on Spectra data </li></ul></ul><ul><ul><li>Can be used to target certain regions with demographics similar to the average Twitter user </li></ul></ul><ul><ul><li>Available in Retail Link </li></ul></ul><ul><li>Sort by relevant Twitter demographic and import into Map Point to find the best regions to start. </li></ul>
    16. 16. How can SuperValu use Twitter? <ul><li>Attract followers by providing value. </li></ul><ul><ul><li>Literal values such as advertising promotions </li></ul></ul><ul><ul><ul><li>Tyson frozen boneless breasts are on sale until 6/10/09 at $1.X9/lb. </li></ul></ul></ul><ul><ul><li>Act on criticism/praise written about SuperValu. </li></ul></ul><ul><ul><li>Ask questions of followers on status of products or stores. </li></ul></ul><ul><ul><ul><li>Are the stores clean? </li></ul></ul></ul><ul><ul><ul><li>Are our displays well stocked and orderly or messy and empty? </li></ul></ul></ul><ul><ul><li>Address social issues the way @TysonFoods does. </li></ul></ul>Source: as of 4/14/2009
    17. 17. How can SuperValu use Twitter? <ul><li>What other retailers are doing: </li></ul><ul><ul><li>@SamsClubDeals - Daily Deals sent directly to your twitter! 992 Followers </li></ul></ul><ul><ul><li>@costco_online - The Unofficial Costco Deals Twitter 1,234 Followers </li></ul></ul>Source: as of 4/14/2009
    18. 18. How can SuperValu use Twitter? <ul><li>Customer Intimacy – get direct feedback from people interested in your brand </li></ul><ul><ul><li>@TysonFoods - Major protein products company, the work of 104K people. This account currently focuses on hunger relief efforts: yours, ours, theirs. </li></ul></ul><ul><ul><li>@wholefoods - Fresh organic tweets from Whole Foods Market HQ in Austin, TX. 693,250 Followers. 10.5 Tweets/Day. 7 million messages sent/Day. </li></ul></ul><ul><ul><ul><li>No advertisements </li></ul></ul></ul><ul><ul><li>@HomeDepot - I’m a spokesperson, I moonlight on Twitter to offer another way for customers to ask about their projects and our stores. 8,030 followers. </li></ul></ul><ul><ul><li>@traderjoes - Tweets by and for Trader Joe's aficionados – 8,635 followers </li></ul></ul>Source: As of 4/14/2009
    19. 19. How can SuperValu use Twitter? <ul><li>Customer Care </li></ul><ul><ul><li>@comcastcares - Comcast Director of Digital Care Email: [email_address] </li></ul></ul><ul><ul><li>For example: A customer could Tweet that Tyson is out of stock in the Acme on Main Street. The message could then be passed to a broker who could remedy the out of stock. </li></ul></ul><ul><li>Customer Research </li></ul><ul><ul><li>Query followers about flavors, prices, sizes, etc. </li></ul></ul><ul><ul><li>For example: In a meeting about new flavors for dinner meats, ask SuperValu’s Twitter followers what their favorite dinner meat flavors are and get a response in real time. </li></ul></ul>
    20. 20. Questions?
    21. 21. Thank you!