The document discusses how social media is impacting traditional shopper marketing. It outlines the decline of traditional marketing channels and how the consumer decision process now begins online. The presentation then covers the "5 C's of the social path-to-purchase": content, connectivity, conversation, being channel-agnostic, and leveraging influence for commerce. It provides examples of how different brands have successfully utilized each of these areas of social media to engage customers and increase sales. Data from case studies show that customers who engage socially with brands on platforms like Facebook spend more money, shop more frequently, and purchase more items.
How Social Media Impacts Traditional Shopper Marketing - Collective Bias
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Bentonville
Chicago
Cincinnati
Minneapolis
New York
San Francisco
London
September 30, 2014
How Social Media Impacts
Traditional Shopper Marketing
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SHOPPER SOCIAL MEDIA
Nice to meet you!
Amy Callahan
Chief Clients Officer / Cofounder
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SHOPPER SOCIAL MEDIA SOLUTIONS
Confidential and Proprietary | Collective Bias 2014
amycallahan@collectivebias.com
@amyfromcb
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Agenda
• Disruption and its impact
• 5 C’s of the social path-to-purchase
• Case studies
• Q&A
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What’s all the Disruption?
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We all know about the
Decline of Traditional Channels…
• 84% of TV commercials are skipped
• 44% of direct mail is thrown out or unopened
• 36% of all radio ads are ignored
• 35% of all newspaper ads are ignored
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Source: HubSpot; Goo Technologies, 2014
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The Consumer Decision Process
Starts Online
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Source: Nielsen/inPowered MediaLab study, Dec. 2013-Jan. 2014
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But even Digital is changing…
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Source: Goo Technologies, 2014
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Why??
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Customer Expectations have changed
• Lightening-fast communication (Customer Service)
• An Experience
• Engagement
• Personalization
• Convenience
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The Social Path-to-Purchase
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The Purchase Funnel is now a Fish
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CONTENT
PAID &
EARNED
Native advertising
Amplifed earned
OWNED &
SOCIAL
Websites, apps, e-mail
and social networks
EARNED &
SOCIAL
Traditional media
Blogs/forums
SOCIAL NETWORKS
SEARCH ENGINES
SOURCE: inspired by Altimeter’s Converged Media Imperative
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The 5 C’s of the Social Path-to-Purchase
1. Content: provide context and relevance
2. Connectivity: build relationships and trust
3. Conversation: create for engagement
4. Channel-agnostic: address fragmentation
5. Commerce: leverage influence
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CONTENT
Example:
How one retailer uses content
to amplify owned service offerings
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CHALLENGE
Promote pet meds service at drugstore chain when
consumers usually go to their vet.
PROVIDE CONTEXT
• Pets are considered members of the family so why not
purchase pet meds along with the family medications.
• Typically, medicines sold at the veterinarian’s office
are expensive.
• Online pet meds are cheaper, but not trusted.
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PROVIDE RELEVANCE
Influencer content highlighted
the multiple meaning of “family”
and incorporated human
benefits:
• Family prescription
management via convenient
mobile app
• Rewards from purchases
• Refill reminders
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CONNECTIVITY
Example:
How an airline builds connectivity and
trust through its social customer
experience
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A Snapshot of American Airlines
• 21-member social team, 9 social
networks
• In 2013…
• 1.4MM social mentions
• Began responding 24/7
• 94% response rate
• Ranked #9 in US, on “social
devotion” and customer
attentiveness on Twitter*
*Socialbakers
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CONVERSATION
Example:
How a drink brand created a viral
conversation, nationally and retailer-specific
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#ShareaCoke National Campaign
• Started in Australia in 2011
• Rolled out to 50 countries in June 2014
• Targeted to Millennials and Teens
• Omnichannel marketing strategy
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#ShareitForward at Walmart
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#ShareitForward at Walmart
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#ShareitForward at Walmart
142%
Earned Media Value
11k+
Blog Engagements
Trended
on Twitter
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Pins: 508
Facebook Interactions:
1,162
Pins: 1,117
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Multi-Network Syndication – Coca-Cola Share it Forward
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CHANNEL AGNOSTIC
Example:
How a major coffee brand communicates a
consistent message across all social
media channels
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Social content should be cohesive and
consistent across all channels
Let’s take a look at our coffee friend…
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Message is consistent but relevant for
each channel.
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SOCIAL MEDIA EXPLAINED
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I’m drinking a #coffee
I like drinking Coffee
My skills include
drinking coffee
Watch me drink a coffee
Here’s a “vintage” photo
of my coffee
Here’s a coffee cake recipe
I made a six second coffee
video
One time I drank a coffee and
something hilarious happened.
Check out my coffee pic
before it disappears!
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COMMERCE
Example:
How content drives loyalty and impacts
store visits and shopper basket size
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Is liking and engaging with a grocer’s
social platform (i.e. Facebook) an act of
commitment?
Do customers who engage socially shop
more frequently?
Do customers that follow on social buy
more items than a non-social fan?
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The process…
• Linked 75% of POS data with 600,000+ loyalty card
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member data and crossed with Facebook data
• Deep dive on correlation between content and
impact on sales and store visits by gender
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Social fans were better any way we sliced it.
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Revenue, Visits, Items by Engagement
Average Weekly Revenues Average Number of Weekly Visits Average Weekly Items Purchased
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Social Fans spent more money and shopped more often
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24
10
13
11
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2012 2013 2014
17
1
0.8
0.6
0.2
2012 2013 2014
0.4
5
2012 2013 2014
7
0.8
0.6
0.2
0
Male Female
0.4
All Known Customers
Facebook Customers
Facebook Males
Facebook Females
Revenue, Visits, Items by Engagement
Average Weekly Revenues Average Number of Weekly Visits
Average Weekly Items Purchased Gender of Facebook Fans
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What we found…
Engagement = Revenue
Social fans
spend more, visit more, buy
more.
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The 5 C’s of the Social Path-to-Purchase
1. Content: provide context and relevance
2. Connectivity: build relationships and trust
3. Conversation: create for engagement
4. Channel-agnostic: address fragmentation
5. Commerce: leverage influence
SHOPPER SOCIAL MEDIA SOLUTIONS
Confidential and Proprietary | Collective Bias 2014
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Q&A
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Thank you
SHOPPER SOCIAL MEDIA SOLUTIONS
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Amy Callahan
(479) 200-5259
amycallahan@collectivebias.com
Editor's Notes
You know, for many brands and retailers traditional shopper marketing has been an invaluable tool for connecting customers and prospects. Marketing used to be a monologue and social media has introduced an era of dialogue and collaboration between brands and their customer…and that’s the plan to talk about today, How has Social Media impacted Traditional Shopper Marketing and what can you do?
Hello, as Rob said, I am Amy Callahan and I am the Chief Clients Officer and Cofounder of Collective Bias, a social shopper media company headquartered in Bentonville, Arkansas.
Collective Bias harnesses the power of social influencers and their significant followings to create shopper media that educates, informs and impacts consumers decisions on the path to purchase. Our products solve shopper marketing problems at specific retailer channels, like launching a new item at Walmart or amplifying a demo at Kroger or saving a d-listed item at Walgreens, as a few examples
I have over 12 years Shopper Marketing experience working with national CPG brands, retailers and shopper marketing agencies.
So enough about me, let’s dive into today’s topic, How Social Media Impacts Traditional Shopper Marketing
Here’s today’s agenda.
We’ll talk about How Social Media impacts Traditional Shopper Marketing by looking at
What exactly has disrupted what we all new to be true just 6-7 years ago and how it’s impacted us today as marketers.
I’ll talk about the path to purchase and how social is now a very significant part of that
Then we’ll talk about the 5 C’s of the social path-to-purchase along with real examples of each.
And hopefully we leave some time for questions at the end
So…what’s all the disruption?
We all know that traditional channels for marketing are on the decline.
When was the last time you paid attention to a TV commercial, direct mail piece, a radio or a newspaper ad?
For example
TV Commercials – 84% are skipped.
Direct Mail – 44% of it is thrown out or unopened
More than a third of all Radio and Newspaper ads are ignored.
But yet, in the US last year $140 Billion dollars was spent on advertising, and advertisers are struggling with how to get a return on those investments while it’s becoming harder and harder to get consumers to hear or see their messages. And those that do see it, don’t believe it.
Consumers now start online when making decisions about purchases.
In this Nielsen chart you’ll see that more than half of all consumers say they start with social media, user reviews and online advertising to make their purchasing decisions.
But even digital marketing is changing…
82% of all online ads are ignored.
The most being ignored are banner, social and search engine ads
But why?
Customer expectations have changed.
They expect to be treated like a human.
With social media, they now expect lightening-fast communication.
They expect an experience, engagement, personalization and convenience.
Traditional push ads or even now digital ads are no longer relevant.
Needless to say, the consumer path to purchase has shifted into ….
The social path to purchase.
Gone are the days where marketers need to overcome challenges of geographic distance, partial information or delayed gratification. In the age of the internet, the business model that functions based on concrete and rigid stages is no longer valid, and has been replaced with much more fluid methods of operation. It becoming clear that the marketing funnel, which has long been recognized as the sole path to purchase, is no longer relevant.
The traditional funnel was comprised on 4 stages: awareness, consideration/interest, preference and purchase and we have all lived by the notion that customers enters the funnel at the top and falls out at the bottom after the make a purchase. But with content marketing, advertising and social media that we are exposed to daily, can this model still hold up?
Today we should be open to the idea that a potential customer may start at the top, but easily jump around the different stages, possibly leave at some point and come back at a different stage and eventually buy.
The Futures Company proposed a unique new analogy call the “purchase fish” in their study the “New Rules for Retail” The purchase funnel is no longer a funnel and instead a fish. The fish illustrates all the shifts that consumers take in all directions before reaching the head. Today the consumer hold all the power and has control over almost every aspect of how, when and where they conducts research before buying
The beginning of the funnel is different for everyone. Whether it’s downloading a coupon, visiting a retailers website, seeing a friends social post etc…
As marketers, how do we influence purchasing decisions when the funnel looks like this?
This opens up new opportunities for retailers and brands to relate to shoppers in different ways in different parts of the process like we never have before.
But it also highlights the need for brands to constantly reach out to prospective customers during their decision making process and maintain constant engagement no matter what stage that person is in.
In addition it’s becoming even more important for you to always be listening to customer needs, concerns and wants across social media channels.
As I talked about earlier, the consumer buying process now starts online with social media and with search.
So how do we influence both of these?
It all starts with content. Content comes in all forms. Think of it as the new media.
You can pay for it, like native advertising,
you can own it, like websites, apps, your social channels and
You can earn it like traditional media and blogs.
I’ll give some examples later of how really good content can help your brand be part of the conversation to help achieve your business objectives.
Your strategy to impact the social path to purchase should include one or more of the 5 C’s:
Content
Connectivity
Conversation
Channel Agnostic
And Commerce
Let’s put these in context for you by looking at some real examples from brands.
Content.
In this example we’ll look at how one retailer uses content to provide context and relevance to amplify its service offerings.
The challenge This drug store retailer started offering pet meds, but consumers usually went to their vet for these prescriptions.
By putting this into context for consumers, they were able to shift their mindset.
Pets are family members
Medications sold at vets are typically expensive
Online pet meds are cheaper but not trusted.
Along with providing context when thinking of the first C (Content), we must also provide relevance.
In this particular campaign, influencers or bloggers were used to help provide that relevance.
Their content highlighted the multiple meanings of “family” and incorporated human benefits – family prescription management through mobile app, rewards from purchases and refill reminders for their pet mediation too
At the right is an image from one of the influencers blogs that featured her kitty sleeping and saying “I am so happy all my medications can be filled in one place, along with my humans medicines”
The second C of the social path to purchase is Connectivity, building relationships and trust.
In this example, we’ll look at a major airline who does this through their social customer experience.
American Airlines is committed to social customer service.
They have a special team consisting of 21 people to manage 9 social networks.
In 2013, they received almost 1.5 MM social mentions and began responding 24/7.
They have a 94% response rate and are ranked #9 in the US on “social devotion” and customer attentiveness on Twitter.
To the right you can see an example of a tweet
American Airlines customer Ellie tweeted “I said ‘I bet I can find out our gate faster on Twitter’ whaddya say @AmericanAir? Laguardia to Dayton.
Here you can see American Airlines responding to Ellie and winning the race. Within minutes American responded confirming her flight # and the gate change, even before the staff at the airport could
http://www.y-rd.com/2014/06/great-twitter-customer-service-from.html
American Airlines builds trust and relationships through their customer service, by not just being lightening fast, but also by having a personality, as you can see here.
- Calling out places the “airline” loves in Daytona and joking back to another customer making a Matrix joke reference making the @americanair handle human and personable.
The third C is Conversation
In this example, we’ll look at one of this summer’s best social conversations on a national and retailer level.
Coca-Cola’s Share a Coke campaign started in Australia in 2011 and rolled out to 50 countries this past June.
The target audience was millennials and teens.
The strategy focused on omnichannel. I don’t know about you, but every where I looked I saw this campaign this summer
This was a huge campaign nationally, but how do retail teams get in on the action?
http://www.coca-colacompany.com/stories/summer-of-sharing-share-a-coke-campaign-rolls-out-in-the-us
The Walmart shopper marketing team got in on the national campaign action by creating their own campaign centered around Walmart.
On July 6, the drink brand posted up in Walmart stores throughout the country with large bins of name-labeled Cokes to give away to customers. The brand gave out 1 million Cokes, with the message for customers to repay the deed to others by buying one for a friend, #shareitforward was Through influencers, Coke was able to get the word out about this retailer-specific initiative.
Here you can see some of the great content that helped spark the Walmart-specific conversation for Coca-Cola created by online influencers via their blogs and social channels
- To the left Stacey went to her Walmart and hand picked unique bottle featuring her friends names and a few that said family/friends and created a cute label that she allowed her blog readers to download and print for free. The labels had cute saying like “So-Da Bomb, seen here or So-Da lighted you are my friend, or You put the Fizz into my life all with plays on the product.
- In the middle Jennifer created a Cherry and Lime Coke Float, she shared photos of her attending the demo at Walmart and then told her audience where in the store to find their own personalized Coke bottle in the front coolers at the registers. Along with step by step instructions of how she made her recipe.
…and more content. Creating parties, gift bags and recipes featuring Coke. One of the recipes
And my favorite not featured was a simple chicken wing marinade with Coca-Cola and Soy sauce that was so easy and delicious!
For the Share it Forward campaign, Coca-Cola’s Walmart team saw an earned media value of 142%, over 11,000 blog engagements and they trended on Twitter. A couple of examples to the right show 2 pieces of content created with great engagement. Over 500 pins on Pinterest and over 1000 interactions on Facebook and another image with over 1100 pins. The great quality content created even garnered Walmart attention, And they were able to get Walmarts Twitter handle to engage with the content as well, huge win!
We take a few things into account to get to an earned media value. We have been able to evaluate what a social share is worth across Facebook, Pinterest and Twitter
Engagements represent the most valuable interactions with your brand; users taking action by sharing blog posts on various social networks including Facebook, Pinterest and Twitter, advocating for your brand. The value assigned is an aggregate of a number of sources from the across the web; depending on the category, a consumer engagement value may adjust slightly.
For Twitter, many brands spend upwards of $250,000 to be a trending topic on Twitter for a 24 hour period. We are able to associate a dollar amount to the amount of time our campaign sits on the Twitter trending list organically.
http://www.coca-colacompany.com/stories/summer-of-sharing-share-a-coke-campaign-rolls-out-in-the-us
http://www.gluedtomycraftsblog.com/2014/07/pay-it-forward-idea-free-printable.html
http://thissillygirlslife.com/2014/07/share-coke-cherry-lime-coke-float-milkshake/
http://www.simplysouthernmom.com/2014/07/share-coca-cola-chocolate-cupcakes-caramel-frosting.html
http://www.attagirlsays.com/2014/07/11/gift-for-mom-shareitforward/
And here is one example of the life of a piece of content with this campaign. Starting with the blog post and it’s evolution across each social media platform. We will see other examples of this in the next “c” channel agnostic next.
The fourth C is Channel Agnostic. There are so many social channels out there that as marketers we must remain agnostic so our message still comes through.
In this example, we’ll look at how a major coffee brand communicates a consistent message across all social channels.
Social content should be cohesive and consistent across all channels so your message has the most impact.
Starbucks is a great example…
Here you can see their announcement of the Salted Caramel Mocha returning to stores.
On each of these social channels, you see the same version of an image, but a different way of announcing depending on the channel.
Starbucks keeps the message consistent, but relevant for each channel. With heavier use of hashtags on Instagram and Twitter and bigger imagery on interest and Facebook
Cheat Sheet
Facebook more emotional, Pinterest for food recipes etc…
The last C of the social path to purchase is Commerce.
How can content drive loyalty and impact commerce? In this example, we’ll look at how social engagement helps with a grocery retailer’s bottom line.
In this case, we set out to answer 3 questions.
Identify loyalty differences between customers who are social fans and those who are not
Analyze: Do social customers shop more frequently than a non-social or typical customer?
Analyze: Do social customers purchase more items than a non-social or typical customer?
Compare customer behavior (revenue, visits, items) before and after becoming a social fan
To answer these questions, we partnered up with an analytics company who had access to over 600,000 loyalty card member data.
We set out to see if there was a correlation between content and impact on sales with this data.
This Retailer’s original marketing strategy was to only go after new customers for a first time trial. They thought their product is so great (like we all want to believe about our products as marketers), and that once people try it, they would be hooked. Not true. Over time customers become disenchanted, and gradually spent less. You either ‘lock them in’, or they go away gradually.
We found that customers who were socially engaged spent 50% more than non-socially engaged customers: $30/visit vs less than $20 per visit.
Engagement = Revenue. The more engaged they are with posting, the more they buy. More importantly, they actually increase their spending level every year.
This is what we call the Social Loyalty Channel. Once they became social fans, they kept buying AND at a higher level. It’s a step function and the retailer permanently increased their share of wallet.
Our conclusion:
Omni-channel is never more evident than with this data. Collective Bias recommends connecting and analyzing social media with in-store tactics to maximize all efforts. For example, retailers could promote joining the Facebook community in order to take advantage of news, recipes and important updates. No longer can we rely on one channel to reach consumers. Bridging the gap between in-store and online is essential for reaching consumers at each touchpoint on the path-to-purchase.
To read the entire white paper on this case, you can go to blog.collectivebias.com to download it.
So just a reminder of the 5 C’s of the social path to purchase.
Content – Provide context and relevance for your consumers
Connectivity – Build relationships and trust by responding fast and having a personality
Conversation – Think about your audience and what they want to talk about to maximize engagement
Channel Agnostic – Don’t rely on one message for all social channels. Your message must be relevant for that channel.
Commerce – Social engagement proves to impact your bottom line, so think about how you can marry your social presence with your in-store presence to provide your consumers with a consistent message.