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2. THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 2
What Does Shopper Marketing Have to Do With Social Media?
Social media is powered by people, many of whom belong to Why? Because shopper marketing – with its focus on crafting This becomes even clearer when you look at the changes in
one or more shopper loyalty programs. But most marketers offers based on intimate knowledge of consumers – works how media influences purchase behavior (see image below).
haven’t made the connection. Even though brand marketers better when accelerated through the peer recommendations Increasingly consumers are first hearing about products
will increase their spending in social media and shopper that thrive in social media. And because the ROI of social through social settings rather than traditional media. While tra-
marketing more than almost any other format in coming years1, media can be demonstrated more powerfully through loyalty ditional media still plays an important role in shaping purchase
these budgets are typically managed by different groups that program data than any other method. This dynamic will lead decisions, marketers need to add proactive social marketing
rarely speak to each other. We expect this to change marketers to increasingly plan their social media programs programs to their promotional strategies.
dramatically in the very near future. with an eye on tracking shopper data, with an expectation
that their efforts will tie directly to ROI.
1 GMA/Booz & Co. Survey of CPG Manufacturers and Retailers, Summer 2010
Shopper Card Data Highlights Social ROI
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Social media the new “starting point” Traditional media informs and Measure social media spend against Use to develop effective
for consumer engagement reminds post social dialogue loyalty card behaviors shopper marketing programs
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3. THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 3
Can Shopper Marketing and Social Marketing Work Together?
One of the earliest studies of social media’s impact on They studied a social marketing program developed by
loyalty and shopper marketing occurred in 2003. Harvard BzzAgent for Rock Bottom Brewery, where 1,000 Rock Bottom
Business School’s Dave Godes and Yale University’s Dina Loyalty Cardholders - and non-cardholders – were provided
Mayzlin partnered to study how accelerating consumer deep experiences with the brand and encouraged to share
dialogue would impact loyalty behavior and sales. their opinions with others. Authentic dialogue was created
in-store, offsite and online.
The Proof is in Loyalty Card Data %
Social Marketing was proven to impact loyalty behavior
and restaurant sales. This was measured through loyalty
program acquisition and transaction data provided by
75
Growth in dollars
spent per cardholder
Rock Bottom Brewery.
% %
37 55
Increase in program
membership
Increase in loyalty
transactions
Learning
New Information Between Acquaintances Opinion Leaders Matter New Loyal Customers Are More Likely
Creates Stronger ROI Only If they Show Loyal Behavior to Create Significant ROI
Peer recommendations are most powerful when it occurs Opinion Leaders” create the most word of mouth if, and The most powerful incremental WOM may come from
between acquaintances, not friends. Information between only if, they are loyal. those less-loyal. Those most loyal have probably
A and D is “new”, leading to stronger results. already told everybody – both strong and weak ties – in
their social networks about a product or service.
EXPERT NON-EXPERT
>
HEAVY LOYALTY
A D
VE W
RY OM
New Loyal
H
IG
H
LIGHT LOYALTY
B C E F
H
M
IG
O
H
W
W
W
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Firm-Created Word-of-Mouth Communication: A Field-Based Quasi-Experiment, David
Godes and Dina Mayzlin, 2004.
4. THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 4
Is there a Social Media Consumer and Loyalty Cardholder Overlap?
For Starters, Yes in the UK
Question: Are consumers who are engaged in social media, The United Kingdom is a perfect market to consider; a number
and talking about brands, also engaged in loyalty programs? of supermarket chains cover the entire region (not the case in
Grocery brands are surprisingly talkable. According to Keller the U.S.) which makes them nationwide brands. More than
Fay (a word-of-mouth research firm), Tesco and Sainsbury’s half of their 25 million households carry a loyalty card for at
are among the 10 most talked about brands in the UK. least one supermarket chain.
Majority of Vocal Consumers are
Supermarket Card Holders
%
68
Vocal consumers are more likely than the general population
to carry loyalty cards. The number of UK BzzAgents1 who carry
loyalty cards is eye popping.
%
70
Of BzzAgents are
TESCO card holders
1 BzzAgents are volunteer brand advocates who have self-identified as liking to share their opinions
about brands across social mediums. Of BzzAgents are
Sainsbury card holders
Product Categories British Consumers Discuss 1+ Time Per Day
FOOD & DINING
SIXTY FOUR %
BEVERAGES FIFTY SEVEN %
THE HOME
THIRTY THREE %
HOUSEHOLD PRODUCTS THIRTY %
PERSONAL CARE & BEAUTY TWENTY NINE %
CHILDREN’S PRODUCTS EIGHTEEN %
Source: Keller Fay, TalkTrack UK, May 2010
5. THE RISE OF SOCIAL SHOPPER MARKETING | Thought Starters on Connecting Social Media and Shopper Marketing Page 5
4 Steps to Tracking Social ROI Through Shopper Marketing.
We expect a simple formula to emerge among teams impact of shopper marketing programs while increasing the
managing social media and shopper marketing. Teams that measured ROI of social channels.
use it successfully will increase the earned reach and overall
1 IDENTIFY 2 ENGAGE 3 ACTIVATE 4 MEASURE
SHOPPER DATA ADVOCACY
IN-HOME SERVICES COUPONS RESEARCH
ONLINE REACH
SHOPPER REWARDS EVENTS OFFLINE REACH
COUPON REDEMPTION
SURVEYS
MATCHED MARKET TEST
MARKET MIX MODELING
ANALYSIS
SAMPLING
Select loyalty program members to Use loyalty program touch points to Participants encouraged to share brand Program impact measured via loyalty
participate in structured advocacy deliver brand experiences that experiences with peers via digital tools program data, coupon redemptions,
activities. Targeting should be based motivate, educate, and drive activity. and in-person conversations. media attribution models.
on demographics, psychographics,
shopping behavior and measured
social influence.
To learn more, go to about.bzzagent.com or call us at 877• BZZAGENT