how social media impacts traditional shopper marketing - collective bias

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THE POWER TO INFLUENCE

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

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SHOPPER SOCIAL MEDIA SOLUTIONSConfidential and Proprietary | Collective Bias 2014


[email protected]@amyfromcb

Chief Clients Officer / Cofounder

Amy Callahan

Nice to meet you!

mailto:[email protected]

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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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• 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

We all know about the Decline of Traditional Channels…

Source: HubSpot; Goo Technologies, 2014

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The Consumer Decision Process Starts Online

Source: Nielsen/inPowered MediaLab study, Dec. 2013-Jan. 2014

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But even Digital is changing…

Source: Goo Technologies, 2014

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Why??

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• Lightening-fast communication (Customer Service)

• An Experience

• Engagement

• Personalization

• Convenience

Customer Expectations have changed

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The Social Path-to-Purchase

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The Purchase Funnel is now a Fish

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CO

NT

EN

T

PAID & EARNED

Native advertisingAmplifed earned

OWNED & SOCIAL

Websites, apps, e-mail and social networks

EARNED & SOCIAL

Traditional mediaBlogs/forums

SO

CIA

L N

ET

WO

RK

S SE

AR

CH

EN

GIN

ES

SOURCE: inspired by Altimeter’s Converged Media Imperative

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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

The 5 C’s of the Social Path-to-Purchase

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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

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PROVIDE RELEVANCEInfluencer 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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• Started in Australia in 2011

• Rolled out to 50 countries in June 2014

• Targeted to Millennials and Teens

• Omnichannel marketing strategy

#ShareaCoke National Campaign

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#ShareitForward at Walmart

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142%Earned Media Value

11k+ Blog Engagements

Trendedon Twitter

Pins: 508

Facebook Interactions:

1,162

Pins: 1,117

http://amyshealthybaking.com/blog/2014/06/30/share-a-coke-chocolate-coke-cupcakes-with-cherry-vanilla-frosting/

http://amyshealthybaking.com/blog/2014/06/30/share-a-coke-chocolate-coke-cupcakes-with-cherry-vanilla-frosting/

http://jensfavoritecookies.com/2014/07/11/chocolate-cherry-coke-cake-in-a-jar/

http://jensfavoritecookies.com/2014/07/11/chocolate-cherry-coke-cake-in-a-jar/

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Multi-Network Syndication – Coca-Cola Share it Forward

http://www.pinterest.com/pin/265430971762992107/


https://twitter.com/BestBlogRecipes/status/483721129345818624

https://twitter.com/BestBlogRecipes/status/483721129345818624

https://twitter.com/bystephanielynn/status/489816846413987842

https://twitter.com/bystephanielynn/status/489816846413987842

http://www.bystephanielynn.com/2014/07/personalized-coke-float-gift-shareacoke-share-a-coke-with-free-printables.html

http://www.bystephanielynn.com/2014/07/personalized-coke-float-gift-shareacoke-share-a-coke-with-free-printables.html

http://thebestblogrecipes.com/2014/06/share-coke-creamy-coke-popsicles.html

http://thebestblogrecipes.com/2014/06/share-coke-creamy-coke-popsicles.html

https://www.facebook.com/photo.php?fbid=10202984266066407&set=gm.728535910518102&type=1&theater

https://www.facebook.com/photo.php?fbid=10202984266066407&set=gm.728535910518102&type=1&theater

https://www.facebook.com/bystephanielynn/photos/a.137945326234902.21951.121694744526627/897237310305696/?type=1&theater

https://www.facebook.com/bystephanielynn/photos/a.137945326234902.21951.121694744526627/897237310305696/?type=1&theater



http://instagram.com/p/p4h-lXJJep/?modal=true

http://instagram.com/p/p4h-lXJJep/?modal=true

http://instagram.com/p/qj2u_yp28x/?modal=true

http://instagram.com/p/qj2u_yp28x/?modal=true

http://www.stumbleupon.com/stumbler/bystephanielynn

http://www.stumbleupon.com/stumbler/bystephanielynn

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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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I’m drinking a #coffee

SOCIAL MEDIA EXPLAINED

Check out my coffee pic

before it disappears!

I made a six second coffee

video

One time I drank a coffee and something hilarious happened.

Here’s a coffee cake recipe

Here’s a “vintage” photo

of my coffee

Watch me drink a coffee

My skills include

drinking coffee

I like drinking Coffee

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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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• Linked 75% of POS data with 600,000+ loyalty card

member data and crossed with Facebook data

• Deep dive on correlation between content and

impact on sales and store visits by gender

The process…

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Social fans were better any way we sliced it.

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

102012 2013 2014

17

24

31

38

0.22012 2013 2014

0.4

0.6

0.8

1

52012 2013 2014

7

9

11

13

0.2

0Male Female

0.4

0.6

0.8

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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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

The 5 C’s of the Social Path-to-Purchase

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Q&A

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Thank youAmy Callahan

(479) 200-5259

[email protected]