filter by tag: research

Customer service is more than just a 1-800 line or salesperson who helps you. As a marketer, I believe it is really about external brand communications and ultimately enhancing brand equity. Now more than ever, a small, isolated customer service incident can become a national PR disaster. For those companies who don’t make customer service a priority or handle situations the right way, it can cost them dearly.

It’s simple – failure to meet consumers’ expectations can damage brands. According to a recent study from Genesys, with research firm Greenfield Online and Datamonitor/Ovum analysts, U.S. companies lose an estimated $83 billion each year due to lost purchases and customers as a direct result of a poor experience. In fact, 71 percent of consumers have ended a relationship because of a poor customer service experience.

Consumers don’t want to feel like they are not being heard. These days, with the help of social media and other channels, consumers have a much bigger voice. This is something we saw with film director Kevin Smith and his recent Southwest Airlines flight experience. While Kevin has a slightly larger platform than most, he was still able to catapult his unpleasant flight experience to national news.

It is important for brands to set up the proper infrastructure to ensure communication is being trickled all the way down and to the right people. There is nothing worse than consumer-facing employees not being educated about programs or products that are heavily promoted through other disciplines (e.g., ads, POP, email newsletters). Some things to consider when developing a customer service strategy are:

• Ease of implementation
• Employee communications
• Pertinent information distribution across all appropriate channels
• Program-specific reactive responses
• Online conversation monitoring
• Direct-to-consumer communications, if appropriate

Brands should be willing to adapt to the times and be open to change. A plan that was well received for the last 25 years might still be outdated. At the end of the day, the ball is in the brands’ courts. If they choose to put emphasis on evaluating their customer service efforts, it may save them big in the end and win the hearts of consumers across the country.

-- Jessica Lappen, Account Supervisor

If your clients aren’t talking about social media, get them started now! A new study from Cision and George Washington University finds nine out of 10 journalists turn to at least one type of new media channel for story research and source information. That’s especially true for newspaper and online journalists, three-quarters of who use social networking sites for research, compared to just under two-thirds for magazine writers.

The big takeaway here is that while journalists used to go directly to the source for information, they are increasingly looking to social media to act as conduits. This means that we need to make sure our clients are participating in and taking ownership of the online dialogue and their presence across social media, blogs and traditional online media. This requires an entirely new level of rigor and in many cases, new skill sets to maintain their brand.

This could be a good opportunity to start a dialogue with your clients about the importance of online brand maintenance and reputation – beginning with a basic audit of their online presence. From there you can start to home in on the key places where consumers are talking about your brand.

Josh Bernoff, Forrester analyst and author of groundswell – winning in a world transformed by social technologies, is a leading force in helping survey and segment how people use the Internet. His research is an invaluable resource for marketers trying to understand social technology behavior. His Social Technographics “ladder” is a segmentation model of how adults online are using technology socially. In most cases a person falls into more than one group, groups include:

• Creators – Who actively create content for an audience.
• Conversationalists (New) – Who have quick exchanges back and forth through Twitter/Facebook updates.
• Critics – Who rate sites, comment on blogs and edit wikis.
• Collectors – Who use RSS feeds and add “tags” to pages or photos online.
• Joiners – Maintain a profile on social networking sites.
• Spectators – Consume content online but do not create.
• Inactives – None of the above

This week Bernoff released an updated version of the ladder specifically to address how Internet users are using Twitter – the microblogging site. Here is what Bernoff had to say,

“Well, it worked. Despite the rapid pace of technology adoption, the rungs on the ladder have shown steady growth, with some (like Joiners) growing faster than others (like Creators). We have analyzed data for 13 countries, for business buyers, and even for voters. My colleagues and I have done profiles for over a hundred clients, profiling Walmart shoppers, non-profit donors, and doctors. In all that time, only one thing has been bugging me: there was no place for Twitter. We fixed that today.”

The “fix” Bernoff is referring to, is a new rung called “Conversationalists” a group that 33% of adults online fall in. This Forrester’s ladder update is a big win for all who champion using online conversations to build relationships and trust. It illustrates the point that conversations among friends, families and between brands and consumers are shifting to the online space. With a third of all U.S. adults in this group it makes it hard for brands to ignore the status update phenomenon that is Twitter and Facebook.

How many of the rungs do you fall under? Is there one or two you would add?

-- Marcus Andrews, New Media Associate

Almost 80 percent of new media users interact with companies or brands online. So, it's pretty much an imperative that your brand have a social media strategy in place. But that poses a puzzling question: Who should take the lead when it comes to developing your social media strategy? PR or digital?

2009 Cone Consumer New Media Study

A recent PRNews article lays out the argument for the PR folks, and our own director of new media, Mike Hollywood, couldn't agree more. "Our channel agnosticism affords us the luxury of looking at the entire media landscape before deciding which channels are best for our client's message AND audience."

Read his take on the debate and get tips for implementing your own social media strategy.* And be sure to tell us what you think. Who should own the strategy?

*Check out our updated new media research, the 2009 Consumer New Media Study.

Brands would be wise to redirect some of their ad spend this holiday season – if the results of the latest Retail Advertising and Marketing Association research mean anything. According to the survey, a mere 17 percent of consumers said their favorite holiday TV commercial motivated them to shop at that retailer. This bleak statistic must be leaving retailers quaking in their boots because, despite expectations that holiday sales in 2009 will beat those of 2008, consumers are sure to be more selective with their money.

When it comes to deciding where to shop, TV commercials just don’t have the oomph they used to. To get customers through the door, the answer isn’t a 30-second spot…it’s money-saving coupons. Nearly half of respondents said coupons were the top media influencer when it came to deciding which retailers to shop. Meaning, a consumer may forego his favorite store if it means saving a little cash.

And it’s not just TV commercials losing out to coupons. Retailers saw a 15 percent decline in visits to their Web sites during Black Friday 2009 versus 2008, but searches for “printable coupons” jumped 50 percent. Few retailers seem to be getting the hint, however, as most are in a stand-off with thrifty customers waiting until the last minute to get the best deals.

JCPenney is one company on top of the trend. It began offering mobile coupons, which let cashiers scan coupons on customers’ mobile phones, back in September. American Greetings is getting on board, too, as it just upgraded its iPhone app to offer coupons, and Gap and Banana Republic are testing mobile coupons at outlet and factory stores in certain markets. The moves should pay off, too. A Deloitte study (client) showed 20 percent of consumers plan to use their mobile phones to assist in holiday shopping.

With only eight shopping days left until Christmas, perhaps now we’ll start to see retailers put a little more marketing muscle – mobile or otherwise – behind stretching customers’ wallets.

A recent blog post from cell phone analytics start-up Flurry suggested young consumers of Apple’s iPod touch would be future consumers of its iPhone later in life. “Apple is using the iPod touch to build loyalty with pre-teens and teens, even before they have their own phones (think: McDonalds' Happy Meal marketing strategy).” I didn’t get my first cell phone until my seventeenth birthday, and I considered myself to be on the cusp of the technological track. But if the assumptions are true, within the next five years, we will see a lot more tweens and teens using Apple’s high-tech mobile device.

Following in Apple’s footsteps, many companies are starting to realize teens are technologically savvier than older consumers. Sites like Mattel’s Everythinggirl.com and MyePets.com have created virtual online worlds that invite younger consumers to participate in interactive environments. And, in 2008, Disney Records, the online home for everything Hannah Montana and Jonas Brothers, led the list of Web video sites, with kids compromising more than 49 percent of its unique visitors.

But what does this increase in tech-literacy among American youth mean for marketers?

Teens are becoming a stronger force in online shopping and purchasing decisions and are extremely desirable marketing targets. In fact, the 2008 Global Habbo Youth Survey found 24 percent of teens are spending more than 15 hours a week online, and of those surveyed, 58 percent have made an online purchase and on average spend $46 per month – 26 percent spend $50 or more per month. Want more good news? Despite clothing, shoes, accessories and music ranking at the top of the list of online purchases, brand familiarity remains the driving force behind nearly 74 percent of all purchasing decisions among teens.

Maybe Flurry’s prediction is right. If younger consumers have purchasing control and if brand loyalty is achieved early in life, as in the case with Apple, perhaps we will begin seeing kids grabbing their lunch, kissing their parents goodbye and checking their Facebook app, all before catching the morning bus to school.

-- Emily Koruda, Fall 2009 Marketing Intern

The following originally appeared in Cone’s inConetext quarterly newsletter. To read current or past issues, visit our Web site.

It’s the age-old question for retailers: "How can we break through the clutter and get noticed in a positive way during the busy holiday season?" That was the challenge presented to us more than two years ago by Game Crazy, a national specialty games retailer. To differentiate the brand from other video game retailers and expand its reach beyond "hard-core" gamers, we developed a video game-themed holiday survey that played off a major gift-giver concern – purchasing gifts kids won’t enjoy. We leveraged the increasing interest in video games among "casual gamers" to create a campaign that educated consumers and set up Game Crazy as the brand that would help make them gift-giving heroes during the holidays.

Now in its third year, campaign results continue to grow. USA Today has written about the program three years in a row, and each year dozens of local-market TV segments feature store and district managers talking about the survey and offering purchasing tips for holiday shoppers. The campaign is also covered by video game and retail writers from major-market dailies and blogs. Game Crazy has several large competitors with deep pockets, but the seasonal campaign ensures Game Crazy’s voice is heard during the holidays thanks to proprietary, branded information and practical advice that appeals to media and consumers.”

-- Marc Berliner, Director

With a predicted decrease in holiday spending this season, brands are reaching into their marketing coffers and pulling out social media strategies to help boost sales and maybe even beat the grim prognostications. It might just pay off, too. According to our client Deloitte's 24^th Annual Holiday Survey, nearly 20 percent of respondents plan to use social media sites to aid in their holiday shopping, largely to find sales, discounts and coupons or to research gift ideas.

But, what’s good for the goose may not be so great for the gander, or in this case, the über-luxury brands. The lifestyles of the rich and famous leave plenty of room for new media – our research shows new media users with the highest HHI are 10 percent more likely than the average population to use these sites and tools – but it's not necessarily in luxury brands’ best interests to develop social media strategies that overemphasize traditional sites, such as Facebook, MySpace or Twitter. The popularity of new media stems from its democratic, community-building traits that bring once-exclusive content to the masses. Something luxury brands, counseled to return to their elitist, indulgent roots, don’t want to see happen to their products.

Brands would do well to remember that when marketing the most luxurious of products and services, the same rules apply whether using on- or offline channels. Remain high-touch, and remain exclusive. Affluent new media users are 20 percent less likely to expect retail brands to use new media to solicit product or service feedback. They want to keep those relationships high-touch and interpersonal. Whereas the average user finds new media an ideal platform to voice opinions once difficult to express in a meaningful way, affluent consumerslikely expect a more direct, face-to-face, line of communication with their favorite brands. Also, whatever experiences luxury brands do create online, they should stillfoster a senseof indulgent exclusivity. Reserve them for only the most preferred customers to enjoy, and make sure they can share the content, but only among peers.

Although popular social media sites may not be the best channels for affluents, it doesn’t mean they still can’t be effective branding tools for luxury goods – among a different audience. Luxury brands need to maintain a certain cachet to hold on to their brand status, and a large Facebook or Twitter following from aspirational fans, perhaps future consumers, can bolster their posh positioning. But keep in mind, affluents and aspirationals are two very different audiences. Learn to play to the strengths of both, and social media have the potential to be very generous this holiday season.

There’s good news for businesses online!

New media users are increasingly interacting with companies and brand in this environment. In fact, interactions are up 32 percent from 2008 with almost 80 percent (78%) of new media users engaging with businesses through traditional online or social media channels. This is according to our latest research, the 2009 Cone Consumer New Media Study.

The2nd annual new media study, an update of the 2008 Business in Social Media Study, is a three-part survey which explored new media users’ interactions with brands, their support of social and environmental issues and their engagement with corporate responsibility practices. The research also reveals new media users:

• Feel a stronger connection to (72%) and better served by (68%) companies they can interact with via new media
• Believe companies should market to them through traditional online advertising (43%, up from 25% in 2008)
• Believe they can influence corporate responsibility decisions by voicing opinions via new media channels (62%)
• Believe companies and nonprofits should use new media to raise money and awareness for causes (79%)

For additional findings, please visit www.coneinc.com/consumernewmediastudy to download the research fact sheets.

Your weekly glimpse into the world of new media

Social: Just because your company uses social media, doesn’t mean people are talking about it. Well, burger chain Red Robin and Italian motorcycle manufacturer Ducati are doing something about that. After taking a post-meal survey in-restaurant, Red Robin invites diners who opt-in to post recommendations on their Facebook pages, which Red Robin then posts on its own page. In a similar call-to-action, Ducati rewards fans who disseminate a branded quiz, found on its new social networking site, with points that can be redeemed at Amazon.com.

Video: Rather than rely on consumer-generated videos to promote its new Fresh Ideas pre-sliced deli meat, food brand Sara Lee went out and hired actresses and comediennes posing as over-worked moms who manage to fit the sandwich meats into their busy days. The three video spots, available on YouTube and Facebook, feature mini, day-in-the-life vignettes of crazed working moms.

Research: Looking to jump on the iPhone app bandwagon? A recent survey from Compete Smartphone Intelligence reports smartphone owners’ favorite types of apps are entertainment, games, music, social networking and weather. Want more good news? Nearly a third (30%) of all smartphone owners are comfortable receiving targeted marketing on their phones.

Mobile: Speaking of apps, Finnish cellphone maker Nokia is promoting its latest customizable phone, the N97, by allowing consumers to create their own apps. Creators of the top 10 apps will win a free phone pre-installed with their creation.

Misstep: New media are rapidly gaining in popularity, but it seems they’re missing the boat when it comes to being a source of daily news. According to the First Amendment Center, Americans still consider traditional media the top source for news. A VERY distant second are the Internet, Twitter and social networks.

Our favorite: Red Robin and Ducati. You can lead a horse to water, but you can’t make it drink. Driving fans to your social network is only half the battle. So engage your consumers and put them to work as brand ambassadors.

My father is a food broker and represents a new product called Bagel O’s. As brunch items, Bagel O’s are bite-sized, premium, kosher bagels filled with cream cheese. But if you were doing your weekly shopping and saw Bagel-O’s in the freezer section would you buy them? Maybe. Or, maybe not.

In a world where budgets are tight, people want proof before purchasing a new product – especially a new one that promises improvements on an old favorite, like Bagel O’s. Each time you purchase something new you risk hating it and therefore wasting your hard-earned money. Advertising helps and coupons are great, but they aren’t always enough to convince consumers. Sampling, on the other hand, takes the risk out of the equation. Like me, consumers will essentially try anything if it’s free!

But does sampling lead to sales? Is sampling a viable promotion tactic? Research and practical success stories say yes. A study by the Product Sampling Council of the Promotion Marketing Association found nine out of 10 consumers say they would purchase a good or service if they experienced it and were satisfied. And, for Bagel O’s, purchases have tripled during weeks with a four-hour sample campaign and increased sales have continued thereafter. This success isn’t exclusive to Bagel O’s, either. According to the “Report on In-store Sampling Effectiveness,” sampling programs drove a 475 percent sales lift the day of the event, and consumers who sampled an item were 11 percent more likely to purchase it again and six percent more likely to buy another item from the brand franchise.

This kind of sales and brand lift might be just what the doctor ordered as we head toward the holidays. A recent Wall Street Journal article on back-to-school sales indicates consumer confidence is low and individuals remain highly focused on necessities. As the holiday season nears, and consumers dig deep to give their families that little something extra, consider investing in sampling or experiential promotions to make consumers aware of new or re-launched products. Sometimes you really do have to give a little to get a lot.

-- Jillian Wilson Martin, Senior Account Executive

Does your dog have a better life than you? You buy him the latest designer duds and be-jeweled collars, you take him to the doggie day spa for some R & R, you sign him up for professional massages so he can work out all his stress. Puh-lease!

At a time when the Paris Hiltons of the world are toting their pooches around in Louis Vuitton handbags, Cone client ALPO® brand dog food is saying, “Get real!” It’s time to let dogs be dogs. This back-to-basics trend is building momentum as the economic realities of 2009 have many people calling for an end to gaudy displays of excess and a return to traditional, common sense values – even when it comes to our dogs.

According to an ALPO survey, pet parents are taking a simpler – and wallet-friendlier – approach to life with man’s best friend. When asked when their dog is happiest, 62 percent of owners say it is greeting them when they come home, being taken for a walk or a run (52%), receiving treats (48%), napping on the couch (32%) or chewing a bone (30%).

To celebrate the simple pleasures of just being a dog, ALPO is launching the ALPO Real Dogs Tell It Like It Is Contest. The national contest is searching for real dogs to share their stories about their favorite real dog behaviors, such as rolling in the mud, drooling for dinner or chasing a ball. Up to 20 winning “pawthors” will have their stories published in a first-of-its-kind “how-to” manual to help dogs be dogs.

Whether it's shopping at discount retailers, cooking more meals at home or letting dogs be dogs, consumers are simplifying their lives in an effort to focus on basic necessities. ALPO is leading the trend in the pet care industry allowing consumers to extend the back-to-basics mentality to their four-legged friends.

The following originally appeared in Cone’s inConetext quarterly newsletter. To read current or past issues, visit our Web site.

New media have provided countless innovative ways for consumers to connect with like-minded individuals and engage in dialogue around topics of interest. Increasingly, consumers are connecting to research and discussing their relationships with brands and corporations, scrutinizing not only the benefits they derive from these relationships, but the ways that organizations impact the world as a whole.

According to our 2008 Business in Social Media Study, 85 percent of social media users want to engage with brands through social media channels. That’s five out of every six people that are looking for some form of interaction with your organization. New media present a tremendous opportunity to engage with consumers around your CSR efforts, as both new media and CSR are rooted in transparency, open dialogue and collective efforts to improve upon the status quo.

Brand—a word often associated with large, consumer-facing companies whose products fill supermarket shelves or suburban shopping malls. But, a brand is just as important to nonprofit organizations, too. After all, a solid brand identity tells an important story. It sets expectations, gains attention, fosters relationships and ultimately helps ensure long-term survival.

In our latest research, The Cone Nonprofit Power Brand 100, conducted in collaboration with Intangible Business, we looked at the relationship between nonprofits’ brand images and their revenues. What we found might surprise you. Nonprofit brands can contribute millions, and sometimes billions, of dollars to organizations’ revenues!

Check out our sister blog, What Do You Stand For?, to find out more.

And tell us, what do you think are the major differences between for-profit and nonprofit brand management?

For consumer-facing companies for whom new media truly is new, building a presence on social networks can be fraught with anxiety. And, the results of a recent study will only add to that tension. According to a Knowledge Networks survey “How People Use^® Social Media,” only five percent of social media users turn to these sites for guidance on purchase decisions.

Ouch! With results like that, a social media presence may suddenly seem irrational. But, before you reach for the phone to cancel any campaigns, take a breath and remember—there is more to a social media strategy than influencing purchase behaviors.

A robust social media presence can offer consumers another touch point for interacting with your brand in ways they otherwise wouldn’t. According to our 2008 Business in Social Media Study, when asked about specific types of interactions, Americans who use social media believe:

• Companies should use social networks to solve my problems (43%)
• Companies should solicit feedback on their products and services (41%)
• Companies should develop new ways for consumers to interact with their brand (37%)

Just last week, clothing retailer Old Navy learned of growing consumer discontent with its coupon offerings by monitoring blog conversations. By doing so, Gap Inc., Old Navy’s parent company, was able to stem the flow of negative comments by altering its policy.

And this situation isn’t unique. Marketers are increasingly realizing the customer service—and ultimately crisis prevention—potential of social media. As a recent Brandweek article explains, “Consumers also expect marketers to respond quickly no matter the issue.” As a result, many companies are establishing a presence on Twitter to provide consumers with an instant point of contact, allowing them to circumvent traditional customer-service hotlines.

It’s true. Consumers may not be turning to your Facebook or Twitter pages looking for purchasing advice. But, by just being there you’re providing opportunities to engage with your brand and maybe even make a lasting impression. And that might be just the push they need the next time they’re faced with a purchase decision.