July 10, 2012
BrainTrust Query: Marketing Must Build Both Halves of the Sales Equation
Through a special arrangement, presented here for discussion is an excerpt of an article from the Joel Rubinson on Marketing Research blog.
It has been shown that fans on Facebook were already eight times more likely to be visiting a brand website before "liking the brand." If social media mostly reinforces loyalty of those who already buy your brand a high percent of the time, how do you build a marketing plan to grow the other half of your sales as well — the half that comes from buyers who are not really loyal to your brand?
As a shopper decides what to put into the shopping cart, you are competing for that purchase with other brands that have meaning for that shopper, right at the point of purchase, with your brand sometimes being the preferred brand, and sometimes not.
So what touchpoints map to influencing the less loyal buyer segments?
Basically, it is push advertising (e.g., TV, digital display) and shopper marketing. The latter includes the pre-shopping activity of digital search and, of course, packaging. In fact, BASES’ research shows that in-store exposure is now the leading source of awareness for new products. These forms of brand communication lead to brand knowledge that can convert into purchases as shoppers weigh their options. If a behavioral economist were a shopper marketing expert, they would note that brand knowledge feeds the decision heuristics that shoppers use to actively decide on purchases as they shop.
For some consumers, what they know about your brand will take on meaning to the exclusion of other brands. In a brand equity tracker, "exclusive brand meaning" is reflected in a pattern of customers checking off that only your brand stands for an important attribute (i.e., they do not check off that any other brand stands for that attribute) and only that pattern is associated with super-high levels of loyalty. Brand meaning equals consideration; exclusive brand meaning equals loyalty.
The marketing approach that calls for building brand engagement isn’t wrong, but it’s incomplete. Marketers need to build both halves of the sales equation. Use advertising and shopper marketing to build brand meaning that will lift sales among less loyal consumers. Use social and owned media to build exclusive meaning, leading to advocacy and engagement.
BrainTrust
Recent Discussions
Discussion Questions
Discussion Questions: What are the best ways to build sales among shoppers not loyal to a brand vs. those that are loyal? Can social media be used to build brand trial?
Poll
While there are a few examples of products going viral and becoming hits, betting on that happening for your average consumer packaged goods product is risky at best. Social media is one piece of a brand’s mix — and likely a small part for most CPG products.
I agree with the premise. But keep in mind that friends of the “likers” will notice what the “liker friend” likes. This is the long way of suggesting that brands be very cognizant about and creative in attracting the friends of the “likers” to notice the brand.
It’s still way too early to have “best practice” models for brand building through social media — do you remember MySpace?
Peer review and endorsement is a compelling driver of trial and brands like Angie’s List demonstrate that people are willing to consider the endorsement of total strangers when making a product selection.
I guess the real answer is that consumers “live” in a world of constant multi-platform marketing, any one of which is ignored at the seller’s risk.
Social media can certainly be utilized to augment and maintain brand awareness among loyal consumers, but the “human touch” — through in-store demos, samplings, coupons, etc. — is what will draw in the non-loyal consumers and hopefully create more brand loyalty.
It’s realy mostly about “product” — even if that product is your retail environment. Brands are theories — ethereal involvements that add to life and simplify purchase. But when you are attracting people over, they come to buy products. Products are more meaningful, products carry brand, and products are far more convincing.
So focus on your mix. And find some leader products (they don’t have to be loss leaders) that will draw people to your store, your brand, or your services.
Social media can build trial, but it will not match the efficiences found in advertising and in-store sampling and merchandising programs.
Brand trial is a time sensitive matter. Social media is best used to create a community of loyal customers, provide a conduit for brand-consumer relationships, and build ambassadors for the brand, but it lacks the dynamic elements needed to incite trial that advertising and in-stro programs deliver.
Social is awareness, engagement and in some cases referral. Push media contains the content necessary to inform and for most consumers over time the foundation to make a go/no go decision to purchase, but it does not breed loyalty. What does breed loyalty is content delivered via direct channels that is personalized, relevant and demonstrates an understanding of the customer’s unique needs, wants and desires. The power is in the data and execution is where many marketers fail to engender either rational or emotional loyalty.
Anyone who has any experience in retail grocery knows that product demonstrations/in-store sampling have the most dramatic effect on retail sales. However this is not always cost effective. A price reduction coupled with in-store display is also a great trial generator, but is becoming less effective as retailers impose buying conditions (loyalty cards). The best way of encouraging trial and building brands is the discount coupon. If one can deliver a discount coupon via Facebook then go for it, but P&G discovered decades ago that coupons force retailers to maintain inventories and price competitively. It frustrates consumers to have a high value coupon and not be able to use it; they will alter their shopping pattern to use a high value coupon.
Push advertising versus shopper marketing for determining best practices? Really? If your looking for that kind of simplistic approach to best practices you will never get there. Which consumers? Which product? For what occasion? There is no simple answer. As audience fragmentation increases and as media choices increase the best practices change. As consumers change over time the best practices will change. This is and will be a moving target.
If strong search engine results and well placed articles reviewing and explaining new products or brands is considered as part of social media, the answer in my opinion is yes.
Simply tweeting about a brand or populating a FB page probably has a minor impact on educating and converting the less loyal among the customer base.
While social media cannot be relied upon to generate trial from non-loyal consumers, it must be a part of the overall marketing mix. The reality of today is that an authentic feeling, brand-right social media presence is necessary for legitimacy. It may not create significant trial, but a poorly executed or non-existent social media strategy can be a negative influencer. It is still early days — “best practices” in this space are fleeting and the best practitioners are refining their practices on existing and new platforms regularly.
Non-loyal consumers is a very vague description for the purpose of a brief discussion. There are many reasons for the consumer to fall in line with this planet-sized category. Perhaps this article is attempting to place social media as a means of educating and seducing loyalty in the land of retail store brand names. This is as good a place as any to start; that is of course if the retailer knows just what social media is and can do for them.
From my observation, I think not so many know how to use these media very well. Social media application sites are the 21st century’s all electronic television networks, newspapers, radio stations, amusement parks and party places. You, as an individual or group, may choose to observe, interact or even host within the structured capabilities of the media platform as a participant whenever you wish to. While participating you are invited to or inviting others for a visit to places of interest which you were or were not intending to find, but which may seem interesting enough to find out about for many reasons. The sales and marketing people with keen awareness of these sites and the knowledge of how to use them successfully will get many more customers for the companies they represent. This is the 21st century, ready or not!
Customers who are not loyal to a brand can be broken up into prospects, customers who lack loyalty and customers who may occasionally purchase your brand but tend to be loyal to another brand instead.
Prospects can be influenced by trial strategies, such as free returns, “try me free” promotions and trial size packages.
Customers who are fundamentally not loyal can be motivated to purchase your brand when heavily discounts, but cannot be relied upon to make purchases of your products in any consistent way, if you are not the price leader.
Customers loyal to other brands can be brought over to your side of the fence by customer experience and the product experience combined. They are your most valuable target, but also the hardest to convince.
Social media provides valuable reinforcement to brand promises and to the customer experience. The key is to harness impartial testimonials and show the “saves” the company achieves by solving customer issues, in an easy to understand way.
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While there are a few examples of products going viral and becoming hits, betting on that happening for your average consumer packaged goods product is risky at best. Social media is one piece of a brand’s mix — and likely a small part for most CPG products.
I agree with the premise. But keep in mind that friends of the “likers” will notice what the “liker friend” likes. This is the long way of suggesting that brands be very cognizant about and creative in attracting the friends of the “likers” to notice the brand.
It’s still way too early to have “best practice” models for brand building through social media — do you remember MySpace?
Peer review and endorsement is a compelling driver of trial and brands like Angie’s List demonstrate that people are willing to consider the endorsement of total strangers when making a product selection.
I guess the real answer is that consumers “live” in a world of constant multi-platform marketing, any one of which is ignored at the seller’s risk.
Social media can certainly be utilized to augment and maintain brand awareness among loyal consumers, but the “human touch” — through in-store demos, samplings, coupons, etc. — is what will draw in the non-loyal consumers and hopefully create more brand loyalty.
It’s realy mostly about “product” — even if that product is your retail environment. Brands are theories — ethereal involvements that add to life and simplify purchase. But when you are attracting people over, they come to buy products. Products are more meaningful, products carry brand, and products are far more convincing.
So focus on your mix. And find some leader products (they don’t have to be loss leaders) that will draw people to your store, your brand, or your services.
Social media can build trial, but it will not match the efficiences found in advertising and in-store sampling and merchandising programs.
Brand trial is a time sensitive matter. Social media is best used to create a community of loyal customers, provide a conduit for brand-consumer relationships, and build ambassadors for the brand, but it lacks the dynamic elements needed to incite trial that advertising and in-stro programs deliver.
Social is awareness, engagement and in some cases referral. Push media contains the content necessary to inform and for most consumers over time the foundation to make a go/no go decision to purchase, but it does not breed loyalty. What does breed loyalty is content delivered via direct channels that is personalized, relevant and demonstrates an understanding of the customer’s unique needs, wants and desires. The power is in the data and execution is where many marketers fail to engender either rational or emotional loyalty.
Anyone who has any experience in retail grocery knows that product demonstrations/in-store sampling have the most dramatic effect on retail sales. However this is not always cost effective. A price reduction coupled with in-store display is also a great trial generator, but is becoming less effective as retailers impose buying conditions (loyalty cards). The best way of encouraging trial and building brands is the discount coupon. If one can deliver a discount coupon via Facebook then go for it, but P&G discovered decades ago that coupons force retailers to maintain inventories and price competitively. It frustrates consumers to have a high value coupon and not be able to use it; they will alter their shopping pattern to use a high value coupon.
Push advertising versus shopper marketing for determining best practices? Really? If your looking for that kind of simplistic approach to best practices you will never get there. Which consumers? Which product? For what occasion? There is no simple answer. As audience fragmentation increases and as media choices increase the best practices change. As consumers change over time the best practices will change. This is and will be a moving target.
If strong search engine results and well placed articles reviewing and explaining new products or brands is considered as part of social media, the answer in my opinion is yes.
Simply tweeting about a brand or populating a FB page probably has a minor impact on educating and converting the less loyal among the customer base.
While social media cannot be relied upon to generate trial from non-loyal consumers, it must be a part of the overall marketing mix. The reality of today is that an authentic feeling, brand-right social media presence is necessary for legitimacy. It may not create significant trial, but a poorly executed or non-existent social media strategy can be a negative influencer. It is still early days — “best practices” in this space are fleeting and the best practitioners are refining their practices on existing and new platforms regularly.
Non-loyal consumers is a very vague description for the purpose of a brief discussion. There are many reasons for the consumer to fall in line with this planet-sized category. Perhaps this article is attempting to place social media as a means of educating and seducing loyalty in the land of retail store brand names. This is as good a place as any to start; that is of course if the retailer knows just what social media is and can do for them.
From my observation, I think not so many know how to use these media very well. Social media application sites are the 21st century’s all electronic television networks, newspapers, radio stations, amusement parks and party places. You, as an individual or group, may choose to observe, interact or even host within the structured capabilities of the media platform as a participant whenever you wish to. While participating you are invited to or inviting others for a visit to places of interest which you were or were not intending to find, but which may seem interesting enough to find out about for many reasons. The sales and marketing people with keen awareness of these sites and the knowledge of how to use them successfully will get many more customers for the companies they represent. This is the 21st century, ready or not!
Customers who are not loyal to a brand can be broken up into prospects, customers who lack loyalty and customers who may occasionally purchase your brand but tend to be loyal to another brand instead.
Prospects can be influenced by trial strategies, such as free returns, “try me free” promotions and trial size packages.
Customers who are fundamentally not loyal can be motivated to purchase your brand when heavily discounts, but cannot be relied upon to make purchases of your products in any consistent way, if you are not the price leader.
Customers loyal to other brands can be brought over to your side of the fence by customer experience and the product experience combined. They are your most valuable target, but also the hardest to convince.
Social media provides valuable reinforcement to brand promises and to the customer experience. The key is to harness impartial testimonials and show the “saves” the company achieves by solving customer issues, in an easy to understand way.