Tag technology

Find Out Who Your Potential Customers Are Before It’s Too Late

0 comments By Chad Thiele Filed in Advertising, Gen Y, Product, retail, shopping, target marketing, technology Tagged with advertising, Gen Y, product, retail, shopping, target marketing, technology April 22nd, 2013 @ 8:00 am

Changes in society impact the products that we buy, how we shop, and who influences purchase decisions. In the end, these changes impact how products need to be made and advertised.

Rapid advancements in technology are increasing the speed at which society changes. The rate of change that we saw from one generation to the next could now possibly happen every few years.

Therefore, it is becoming more it important for brands to continually monitor whether or not their products and services are meeting the needs of consumers. Furthermore, it is vital that they make changes whenever necessary.

Women and Children First

No the ship is not sinking. At least we hope not. However, sometimes it might seem that way.

That said, if you have an established brand that is losing market share, it might not be a bad idea to check out who is purchasing and using your products and services (and your competitor’s products and services too.)

In his book, “What Women Want: The Science of Female Shopping,” (affiliate link) Paco Underhill highlights how the changing role of women in society has influenced who is purchasing and using products and services.

As he points out, in some cases it might not necessarily be a shift in who is using the product or service. It might, if fact, be the case that the female head of the household may still be purchasing and using the product, but given further time constraints, the way the product is being used has changed. Therefore, the product or its advertising might need to be altered to better meet the current needs of consumers.

The role of children in the family has also changed in recent years. This is partly a result of the increased prevalence of technology and the higher comfort level that youth have with these new technological advancements.

In the book, “Gen Buy: How Tweens, Teens, and Twenty-Somethings Are Revolutionizing Retail,” (affiliate link) Kit Yarrow, Ph.D., and Jayne O’Donnell, point out that, “Gen Yers typically provide in-house tech support for their parents, which reinforced their stature as equals—or even superiors, at least in the IT department.”

They go on to point out that, “Previous generations had to pretend or humor their kids (“Let’s frame your Picasso!”), but in the case of this generation, their intuitive ease with technology and their ability to adapt to technological shifts is a genuine asset to any family.”

“Seeing as we all know better than to tick off the techies, the glow of this expertise has contributed to the confidence of this generation,” the authors of the book continue. “It also means that kids have more of a vote and more power in family decision making. That includes far more than technology and extends to things like vacation destinations, cars, and Dad’s outfits too.”

This doesn’t mean that we can totally ignore adult male consumers. It may be the case that your products and services are still being purchased and used by the male head of household. However, you won’t know this until you do the research.

Also, you don’t want to only cater to youth. Baby Boomers can’t be ignored. As I pointed out in a recent blog post, there are a lot of them, and they have a lot of money and time to spend it.

Don’t Alienate Your Best Customers

In an effort to increase market share, you might decide to increase sales by targeting other demographic groups. This could be a good choice if you find that those consumers are already starting to use your products and services.

However, you do run the risk of actually losing more customers if you start appealing to other demographic groups. Unilever learned this lesson the hard way, albeit unintentionally, when middle school boys started using its Axe Body Spray in large numbers. This caused the brand’s target market, men aged 18 to 24, to lose interest because Axe Body Spray started to get the reputation as a “kid product.”

Therefore, before you choose to alter the product or the advertising to meet the needs of a different demographic group, you need to understand that it might result in decreased sales among the original target market. In some cases, this trade off might be an acceptable risk. Other times, not so much.

Final Thoughts

Gender roles have changed in recent years, as have the way family decisions are made. This could be influencing how consumers are using your products and services.

Rapid advancements in technology are increasing the speed of these changes. In fact, some technological advancements could have a huge impact on the who, where, when, why and how consumers buy and use your products and services.

As noted, if your brand is losing market share, you will want to see if other demographic groups have become potential customers.

The choice then is to decide whether to alter your products and services, as well as the way that you advertise those products and services to consumers.

However, the choice is not always as easy as you think, because you might end up decreasing sales if you alienate your existing customer base.

As with all business decisions, there might be unintended consequences to the choices that you make. Your best bet is to make an informed decision based on research and testing.

On the other hand, if you choose to completely ignore the changes that are happening around you, you might end up searching for your life boats.

Photo credit: Digital Sextant on Flickr.

Chad Thiele

Marketing analyst and strategist, freelance writer, content curator, applied sociologist, and a proud UW-Madison alumnus. My goal is to help businesses achieve their marketing objectives and business goals while gaining additional experience in the exciting world of digital marketing. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

Oreo Knows the Only Winning Move Is Not to Play the Game

0 comments By Chad Thiele Filed in Advertising, social media, target marketing, technology, Twitter, word of mouth advertising, word-of-mouth marketing Tagged with advertising, social media, target marketing, technology, Twitter, word of mouth advertising, word-of-mouth marketing March 25th, 2013 @ 8:00 am

After being challenged to a game of tic-tac-toe by Kit Kat, Oreo wisely declined in a way that would make fictional characters Dr. Stephen Falken and David Lightman proud.

As I explained in a recent post, movies often contain lessons mixed in with the car chases and beautiful people living extraordinary lives.

If you grew up in the 1980’s, you probably remember that in the 1983 movie “WarGames,” David Lightman, a young computer hacker played by Matthew Broderick, unwittingly accessed WOPR, a United States military supercomputer that was designed by Dr. Stephen Falken to predict possible outcomes of nuclear war. In the process, Lightman unknowingly almost starts World War III.

At the climax of the movie, Dr. Falken and Lightman try to teach WOPR that nobody wins in a war. The first lesson begins with multiple games of tic-tac-toe before moving on to war simulations.

In the end, the computer ends the war simulations and writes, “A strange game. The only winning move is not to play.”

Well said. Lesson learned. (Click here to watch that scene on YouTube.)

Competing for Laura Ellen’s Love

If you follow social media marketing news at all, you know that Oreo earned praise for the tweet they sent out after the power went out at the Superdome during this year’s Super Bowl. They also had success with this real-time marketing strategy during the airing of the 85^th Academy Awards.

Other brands are taking note and are trying to replicate Oreo’s success.

Therefore, it is not surprising that when Laura Ellen, a Twitter user from Manchester, UK, tweeted that she was following both Kit Kat and Oreo on Twitter, Kit Kat jumped at the chance to challenge Oreo to a friendly game of tic-tac-toe in an effort to fight for Ms. Ellen’s affections.

As a post on Mashable.com points out, this scored huge points with Ms. Ellen. And, judging from the number of retweets and favorites, with the clever use of Kit Kats for Xs and (potentially) Oreos for Os, Kit Kat also scored points with the general public.

How About a Nice Game of Chess?

When faced with the option of playing Kit Kat in a public game of tic-tac-toe, Oreo decided to decline with style and grace. In my opinion, that was a brilliant move.

As Lauren Indvik points out in the article on Mashable.com, there are possible negative consequences of being the loser in a game that could get old real fast.

Furthermore, as the folks at ADVERVE point out, just because brands are rivals doesn’t mean they can’t have a little fun at the same time. As they ask, “Is it so unreasonable to think that there are Kit Kat lovers in the Oreo camp, or vice-versa?”

By declining to play the game by complimenting the taste of Kit Kats, Oreo found a way to create a win-win situation. Kit Kat gets a compliment, and Oreo gets some free advertising from Kit Kat, not to mention all the free publicity it received by the media covering the ad campaign.

As an added bonus, I would be willing to bet that this ad campaign made many people think of the movie WarGames. Knowing that this is a movie that is beloved by tech geeks around the world, this was a perfect move for Oreo to make in a social media ad campaign. Was it intended? Only the digital agencies involved could tell you that for sure.

Final Thoughts

With some things in life, nobody ever wins. In those cases, the best solution is not to play the game.

In the 1980’s movie WarGames, we learned that nobody wins in a nuclear war.

The same could often be said in head-to-head competition in the marketplace.

In the case of the Kit Kat tic-tac-toe challenge, Oreo proved wise enough to demonstrate that there is room enough for both brands in the marketplace, and that there is no need to show its skill in a game that often ends in a stalemate.

By declining the game in the way that they did, they created a win-win scenario for both brands.

Photo credit: Torben Bjørn Hansen on Flickr.

Chad Thiele

The Geography of Marketing: The Podcast Edition

0 comments By Chad Thiele Filed in Inbound marketing, podcast, podcasts, technology, YouTube Tagged with Inbound marketing, podcast, podcasts, technology, YouTube March 18th, 2013 @ 8:00 am

In the past few posts, I’ve placed a lot of emphasis on how geography influences what people buy, how they shop and how they consume content.

Given the fact that consumers act differently based on where they live, it makes sense that marketers have learned to adapt their marketing techniques to meet the needs of the businesses in the geographical regions where they are currently working in.

In addition to the differences in consumer behavior, the industries that marketers work in may be influencing the types of marketing campaigns that are currently being used. In other words, it may be the case that each marketing community adapts its marketing techniques to meet the needs of the primary industries in that region.

However, it may also be the case that marketers in each community are sharing ideas with each other in that region and thus, the same ideas are being spread over and over again.

In order to break this cycle, marketers need to get ideas from others outside of their “bubbles” that they currently live in.

The obvious solution is to attend national or regional events in other parts of the country in order to network and share ideas with marketers who might have different points of view. However, many marketers don’t have the budget for this type of networking.

Another solution is to read books and blog posts from marketers in other areas of the country. This is something that I highly recommend. However, sometimes time is an issue.

That is exactly why I love podcasts.

Podcasts often are a free way to gain valuable insights from marketers around the country or the world, for that matter, in a way that allows you to do something else at the same time, like drive or clean the house.

Podcasts That I’d Recommend

Last year, I wrote a blog post that highlights some really great marketing and technology podcasts, including the BeanCast, ADVERVE, and Marketing Over Coffee. I still listen to many of the podcasts on that list on a regular basis.

However, I’ve added a few others to my rotation. These include:

AMA’s MarketingPower Podcast – In this podcast, marketing thought leaders provide insights about the challenges that face businesses today.

Six Pixels of Separation – Hosted by Mitch Joel, this podcast often features some of the biggest names in the marketing and PR world. This podcast should definitely be on your list.

The Digital Dive Podcast – Based out of Atlanta, this bi-weekly podcast is hosted by Emily Binder and Melanie Touchstone. In each episode, the hosts discuss the current events that are shaping the digital landscape.

There are also a few podcasts that I plan to listen to in the near future, including Chris Brogan’s “The Human Business Way” and Marcus Sheridan’s “Mad Marketing Podcast.”

Finally, my list wouldn’t be complete if I didn’t mention HubSpot’s Marketing Update. The show is filled with useful information that businesses of all sizes can benefit from. In episode #229, Mike Volpe mentioned that the show will soon be available in an audio version. When that happens, it will be a lot easier for people to listen to the show on a more regular basis.

Final Thoughts

As I mentioned last year, podcasts are a great source of information.

They give people the ability to increase their knowledge while doing other tasks that need to be done in their day-to-day lives.

Moreover, I feel that podcasts are an important way for marketers to keep up with news and information and get suggestions from other business leaders outside their “bubbles” that they currently live in.

By listening to podcasts, marketers might learn something that could help their businesses gain the edge they need to outsell their competitors. At the very least, they might be entertained for an hour or two.

Photo credit: Compudemano on Flickr.

Chad Thiele

The Geography of Marketing: The Global Marketplace

0 comments By Chad Thiele Filed in Advertising, brand, branding, business, JWT, market research, target marketing, technology, trends Tagged with advertising, brand, branding, business, JWT, market research, target marketing, technology, trends March 3rd, 2013 @ 3:00 pm

As technology advances, it is becoming easier for people to connect with other people around the globe.

Rapid advancements in technology are also opening up new markets to businesses that wouldn’t have even dreamed of selling their products and services internationally just a few years ago.

Although international marketing is not my area of expertise, I believe that it is going to become more important for businesses of all sizes in the very near future. With this in mind, I have begun to do some research on the topic.

In the early stages of the process, three things are already becoming clear. 1) The quality of the product or service is becoming more important as businesses compete with other businesses that are located anywhere on the planet. 2) Marketing campaigns need to be tailored to appeal to individual markets and cultural differences need to be recognized. 3) It is becoming increasingly more important for businesses to do the research to identify what the previous two items on my list actually mean to the business and its potential customers (i.e., how do individual markets define quality and what factors influence how effective a marketing campaign will be when it is used to target potential customers living in other parts of the world.)

Globalization Does Not Imply Homogenization

In an article in the September 15, 2010 issue of the American Marketing Association’s Marketing News, Nigel Hollis, Executive Vice President and Chief Global Analyst at Millward Brown Inc., states, “Culture—the history, beliefs, customs, habits and values of a group of people—determines the ways in which we respond to the world around us, including the brands we buy. Local culture helps establish our values and priorities. It determines our taste for food, aesthetic preferences and communication.”

“Increasingly, however, people everywhere are exposed to foreign cultures through commerce, travel and media,” Hollis continues. “But just how strong is the influence of this global culture when compared to the local cultures in which we are born and raised? While the global culture grows increasingly prominent, my research suggests that the influence of local culture still is very important to brand success.”

Hollis goes on to point out that for brands with global aspirations, the influence of local culture can present significant problems. The combination of product formulations, positioning and communications strategy that made the brand successful in one part of the world may need to be adjusted to build a connection with consumers in new markets. Of these, Hollis feels that communication is probably the most susceptible to the influence of culture.

He also warns that the days of big brands gaining huge market share just by introducing their products and services to new markets are over.

According to Hollis, “It used to be that multinationals could launch a brand into a developing economy conﬁdent that their product would be better and more desirable than the local competition. Increasingly, this expectation is unwarranted. With product superiority no longer guaranteed, brands must compete for hearts as well as minds—and to win someone’s heart, you must engage him on his own terms and in his own language. Foreign brands increasingly will need to blend into local cultures if they are to become successful.”

He also points out that the Internet may, in fact, strengthen the connection that consumers have to their local culture.

“People in countries as diverse as China, Turkey and Brazil evince a strong desire to maintain their local culture,” writes Hollis. “In the future, they may celebrate their own cultural identities by choosing local foods, goods and entertainment over Western alternatives. And far from promoting a global village, the Internet actually may be promoting hundreds of local ones. The success of local Internet brands such as search engine Baidu in China and social network Mixi in Japan—as well as the growing trend toward local language blogging—suggests that far from undermining local culture, the Internet instead may be empowering it.”

The Middle East & North Africa Region

A recent report that was released by JWT MENA, titled “JWT MENA: 8 Trends for 2013,” provides insights about the Middle East and North Africa (MENA) region. Interestingly, the report appears to verify that Nigel Hollis was indeed correct, at least for this particular part of the world.

According to the JWT report, “‘Arabification’ is definitely back. Whereas in the past, Arabs have looked to the West for inspiration, today, the region in entirety is looking inwards, supporting entrepreneurialism and its own national best interest. Rather than wallow in negativity, Millennials are optimistically looking forward and up, with a resilience and resourcefulness in addressing adversity. Consumer Confidence is up +6 points in KSA and +5 points in Egypt vs. 2011, shaping the ME of tomorrow, which will be pioneered by the dawn of ‘great brands from the Middle East’ as opposed to ‘great Middle Eastern brands’, towards self-sustainable individuals and economies.”

The report goes on to point out that about nine in 10 MENA adults agree with the statement, “I prefer products from my country over Western products if they are of better quality,” and a similar percentage agree with the statement, “I prefer products from my country over Western products if they are ‘unique.’” Furthermore, about three quarters of MENA adults agree with the statement, “I prefer products from my country over Western products if they are cheaper.”

The report concludes that, “At the end of the day, people are not just buying national brands, they’re buying a great brand and that’s the most important thing.”

If your business is marketing its products or services to consumers living in the Middle East or North Africa, I’d suggest reading this report. It provides great insights about the Middle East and North Africa, including interesting case studies from brands that have been successful in this region.

Final Thoughts

It is my belief that advancements in technology, including the increased reliance on the Internet, will make International marketing even more important in the near future.

However, while the Internet gives businesses the opportunity to sell their products and services to markets that they wouldn’t have even dreamed of just a few years ago, just introducing a product or service to a new market is not enough.

In order to be successful, brands may need to adjust everything from the communications strategy to the product itself, in order to appeal to consumers in other parts of the world.

As Nigel Hollis states at the end of his article in the AMA’s Marketing News, “Successful global brands will embrace the diversity of individuals, communities and cultures around the world, rather than seeking to impose one-size-fits-all templates irrespective of local needs and desires.”

Photo credits: stevecadman and Staeiou on Flickr.

Chad Thiele

The Geography of Marketing: Staying Connected

2 comments By Chad Thiele Filed in app, apps, business, market research, mobile, podcast, podcasts, retail, technology, trends Tagged with app, apps, business, market research, mobile, podcast, podcasts, retail, technology, trends February 25th, 2013 @ 3:00 pm

The number of people who own smartphones worldwide continues to rise. Therefore, mobile marketing is becoming more important for businesses around the globe.

While the technology that is used in mobile devices has improved markedly in recent years, there are still issues that marketers need to be aware of that can influence the overall effectiveness of their mobile marketing campaigns.

In episode #436 of UNTETHER.tv, Rob Woodbridge interviewed Jasmeet Sethi, Regional Head of Consumer Insights for Ericsson ConsumerLab in India.

In a blog post introducing the episode, Woodbridge explains that Sethi believes the greatest challenge he faces is understanding the user experience for consumers in emerging markets.

“Forget your perceptions of UI/UX if you are thinking of swipes or “pull to refresh” or tap and hold, user experience to Jasmeet means something altogether more fundamental,” writes Woodbridge. “We take for granted the almost pervasive access to high speed wireless data we have at our fingertips but, as you know, in certain parts of emerging countries that doesn’t exist. This is a critical first step in understanding how to build for these markets – if your app or mobile service requires an always-on connection to the stream, it will not work in much of India. This, and many other basic usability requirements, could do irreparable damage to great brands and limit success in these huge markets.”

Back in the United States of America

While having limited access to an always-on data connection and slow download speeds are definitely going to be problems in emerging markets, these issues are also problems for marketers here in the United States. Therefore, the lessons that Woodbridge and Sethi are trying to teach marketers around the world are also valuable to those marketers who are trying to reach U.S. consumers.

According to a report that was released last year by the Pew Research Center’s Internet & American Life Project, 77% of adult mobile Internet users in the United States said that they experience “slow download speeds that prevent things from loading as quickly as you would like them to” at least occasionally. In fact, nearly half (46%) of adult U.S. mobile Internet users reported that they experience this problem at least once a week. (Note: Data from this study was also reported in an article written by Amy Gahran on CNN.com in August of 2012.)

An even simpler way to illustrate this problem is to go to the maps that show the 3G and 4G coverage areas for any mobile network operator in the United States.

According the current coverage map for Verizon Wireless, Verizon 4G LTE is available in 480 cities and covers 87% of the U.S. population. However, there are still many areas of the country that still don’t have access to Verizon’s 4G network. In fact, there are major areas on the map where 3G coverage isn’t available. While these areas aren’t places where many people live, they might be places where people travel to. Either way, they are locations where mobile marketing might not be the best option at this point in time.

It should be noted that there are many places around the country, including in the metro areas of Atlanta and Minneapolis/St. Paul, where I have experienced regular data connection problems when I used my 3G smartphone. This includes outdoor spaces, as well as in malls and major retail stores.

In episode 6 of the Digital Dive Podcast, co-hosts Emily Binder and Melanie Touchstone talk about connection issues that they encountered in the metro Atlanta area when vendors used their mobile devices to accept mobile payments with apps like Square or LevelUp. In episode 7, they arrive at the conclusion that the problem is fixed when vendors are connected to a 4G network. Therefore, 4G might be the solution that marketers and entrepreneurs are looking for.

However, keep in mind, that although 4G LTE is available in most urban areas, not everyone has upgraded to a 4G-enabled mobile device.

Therefore, if your mobile marketing campaign requires an always-on data connection, it is highly recommended that you test to make sure that consumers can connect using various types of mobile devices in the geographical areas where the campaign will be running, and definitely test to make sure that they can connect using a 3G network. In fact, it wouldn’t be a bad idea to test at different times of the day using different mobile devices before implementing your mobile marketing campaign. Then, continue to test the data connection availability and download speeds from time to time while the mobile marketing campaign is running.

Final Thoughts

As Woodbridge and Sethi point out in the post introducing episode #436 of UNTETHER.tv, data connection issues and slow download speeds can limit the success of mobile marketing campaigns and possibly cause irreparable damage to great brands.

Although they were talking about marketing to consumers in India and other emerging markets, similar issues are still problems in many parts of the United States.

While having a 4G connection might solve many of these problems, 4G is not available everywhere. And, even in places where it is available, many consumers won’t be able to access it because they haven’t upgraded to a 4G-enabled mobile device.

Therefore, before your business implements a mobile marketing campaign that requires an always-on data connection, it would be a good idea to test the data connection availability and download speeds in the geographical areas where the campaign will be running using a variety of mobile devices during different times of the day. And, definitely make sure that consumers can connect using a mobile device on a 3G network. Furthermore, it wouldn’t be a bad idea to test the data connection availability and download speeds from time to time while the mobile marketing campaign is running.

Finally, if your business plans to offer mobile payment options using Square, LevelUp or some other similar service, it is probably a good idea to make sure that your business is connected to a 4G network. It is also a good idea to test to make sure that everything is running smoothly before you use the service to process transactions during peak sales hours.

Photo credits: LGEPR and ETC@USC on Flickr.

Chad Thiele

The Geography of Marketing: Media Consumption Habits

0 comments By Chad Thiele Filed in market research, mobile, target marketing, technology, trends Tagged with market research, mobile, target marketing, technology, trends February 18th, 2013 @ 8:00 am

The location and the size of the city that people live in tends to influence what sources they turn to for local news and information. This is something that marketers need to be aware of when deciding how best to reach their target audience.

In a blog post that I wrote last year, I pointed out that use of the latest advancements in technology tends to vary based on the location and the size of the community that consumers live in. At the time, my analysis was based on knowledge that I had obtained by traveling and living in various communities.

Since then, a report was published that verified many of my observations. (I want to thank Jason Konopinski for pointing out this study in a recent blog post that he wrote.)

The study was conducted in January 2011 by the Pew Research Center’s Project for Excellence in Journalism and Internet & American Life Project, in partnership with the Knight Foundation. The study explains that while most U.S. adults keep track of what is happening in their local communities, the local news ecosystem is complex.

According to the authors of report, “The results indicate that from large urban areas to rural communities, Americans often report similarly high levels of interest in news in general, in local news and information, and in national and international news. Moreover, similar percentages of adults report following the specific local topics asked about, regardless of the type of community in which they live.”

“Still, community differences do emerge in the number and variety of local news sources used, as well as the degree of “local news participation” and mobile news consumption,” the authors of the study continue. “Many of the differences in local news consumption emerging from these data reflect the varying demographic composition of different community types in the U.S.”

Important Differences Based on Location and Community Size

The report highlights some of the differences in local news consumption habits based on location and community size. Here are some of the findings reported in the study:

Urban consumers obtain local news and information from a wide range of sources, including Internet searches, Twitter, blogs and the websites of local TV stations and newspapers. They also are more likely to obtain news via their mobile devices than consumers in small cities/towns or rural areas.

Suburban consumers tend to rely on local radio for news and information more than consumers in urban, small town/city, and rural areas. (The authors of the report say that this is possibly a result of relatively longer commute times.) These consumers are also the most likely to use a mobile device to obtain local news and information.

Consumers living in small towns/cities tend to rely on tradition media sources such as television and newspapers for local news and information. In fact, the study found that when compared to consumers living in communities of different sizes, consumers living in small towns/cities are the most likely to worry about what would happen if their local newspaper no longer existed. It is also important to note that these consumers are less likely to use the Internet and/or email or have a cell phone than consumers in larger communities.

Rural consumers use the fewest sources of media to obtain local news and information (average 3.3 local news sources per week, tied with small town/city consumers.) They are also the most likely to only rely on traditional news sources. Therefore, it is not surprising that they are the least likely to obtain local news and information via a mobile device, when compared to consumers living in larger communities.

Some of these variations can be explained by the demographics of the consumers living in each type of community. However, as the study points out, some consumers may not obtain local news and information via the specific media sources because it is just not an option for them.

Final Thoughts

The study that was released by the Pew Research Center’s Project for Excellence in Journalism and Internet & American Life Project, in partnership with the Knight Foundation, is an excellent resource for marketers.

As I pointed out in my blog post last year, use of different technological advancements, including social networking sites, tends to vary based on the size and location of the community that consumers live in.

As the Pew Research Center’s report points out, the size and location of the community also plays a role in whether or not consumers rely on a wide range of media sources for local news and information.

This data again points to the fact that marketers need to make adjustments in their marketing campaigns in order to reach their customers and prospects where they are, not where the business thinks they should be.

In the end, because media consumption habits are different based on the location and the size of the community, specific marketing campaigns that work in one place might not be as effective in a different part of the country.

Photo credits: ChrisYunker and Gerry Dincher on Flickr.

Chad Thiele

A Look at the Aging of America From a Retail Perspective

0 comments By Chad Thiele Filed in Advertising, app, case study, market research, mobile, Package, Packaging, retail, shopping, target marketing, technology, trends Tagged with advertising, app, case study, market research, mobile, package, packaging, retail, shopping, target marketing, technology, trends January 31st, 2013 @ 3:00 pm

Andy Rooney once said, “It’s paradoxical that the idea of living a long life appeals to everyone, but the idea of getting old doesn’t appeal to anyone.”

This could be partially due to the fact that either through design or disregard, the products and services that brands offer tend to cater to younger consumers.

However, as times goes on, older consumers are going to be harder and harder to ignore.

As the baby boomers reach retirement age, the number of older consumers continues to grow. (It is worth noting that there will be more older consumers in the near future because there were higher birth rates from 1946 to 1964 and because older consumers who reach the age of 65 are projected to live longer lives in the future.)

While brands do intentionally target different consumers when they advertise their products or services, there are also some decisions that brands are making that may unintentionally exclude older consumers from making a purchase.

If You Can Read This You’re Too Young

In his book, “Why We Buy: The Science of Shopping—Updated and Revised for the Internet, the Global Consumer, and Beyond,” (affiliate link) Paco Underhill explains how retail will be transformed in the near future as a result of the aging of the population of the United States. In fact, he devotes a whole chapter to this topic.

According to Underhill, by 2025, we are going to need a whole new world when it comes to retail.

“What’s wrong with this world? For starters, all the words are too damn small,” says Underhill. “See this sentence? How could you? Too damn small. How about the morning paper? Forget it. Too damn small. The directions on your jar of organic herbal laxative? Too. Damn. Small. And you’re not even going to try squinting. (It causes wrinkles.) If you can’t read it, by gum, you just won’t buy it. And if you don’t buy organic herbal laxative, nobody will. And if nobody buys it… well, you see where this is going.”

“Human eyes begin to falter at about age forty, and even healthy ones are usually impaired by their sixties,” Underhill continues. “With age, three main ocular events take place: The lens becomes more rigid and the muscles holding it weaken, meaning you can’t focus on small type; the cornea yellows, which changes how you perceive color; and less light reaches your retina, meaning the world looks a little dimmer than it once did. The issue of visual acuity, already a major one in the marketplace, will become even more critical—not just in some far-off future, but from this moment on.”

Is he making too big of a deal about the eyesight of older consumers? You can decide that for yourself, but first you might want to read some of the examples that Underhill provides as evidence.

“One of our fast-food clients realized that diners over fifty-five were their fastest-growing demographic, despite the fact that the menu boards used type that was almost impossible for older people to see well,” reports Underhill. “The company redesigned the menus using large photos of the food, and even though it meant listing fewer items, sales rose.”

Underhill also points out that, “The main market today for drugstores is older people, and that dependence will only increase. Certainly, of all the words we are required to read in the course of our lives, few are more important than the labels, directions and warnings on drugs, both prescription and over the counter. For instance, we have found that 91 percent of all skin care customers buy only after they’ve read the front label of the box, bottle or jar. Forty-two percent of buyers also read the back of the package. Clearly, reading is crucial to selling skin care and other health and beauty items.”

It is also interesting to note that the type on products that are frequently used by senior citizens (e.g., aspirin, a host of other common analgesics, cold capsules and vitamins) is often smaller than the type on products that are targeted to teenagers.

Can the Problem Be Fixed?

This sounds like an easy enough problem to fix. Just make the type bigger and the problem is solved, right? Not so fast.

You see, part of the problem is that many consumers rely on information in order to make purchase decisions. Therefore, brands need to provide a sufficient amount of information on their packages.

However, on a small box or bottle, there is a limited amount of real estate. Therefore, the choice is to either make the package bigger, provide less information or make the type smaller. It appears that many brands are choosing the third option—to the dismay of older consumers.

In the book, Underhill offers some possible suggestions that might help fix the problem, including package redesigns, better signage in retail stores, increased use of graphics on the labels, and tech solutions including sending additional information to our mobile devices.

In the end, he suggests the correct solution might be a combination of these and other possible fixes.

Final Thoughts

As Paco Underhill points out in his book, the aging of the population of consumers in the United States is going to provide numerous challenges to brands and retailers in the very near future. (These challenges include issues that I haven’t mentioned in this post.)

However, as with any challenge that is presented to the business world, they also provide an opportunity for businesses to profit by stepping up and finding ways to meet the needs of this important demographic.

As Paco Underhill sums it up, “Older shoppers are more important than ever, if only because there are more of them, and they have a lot of money to spend and time to spend it. Their presence will transform how products are sold in the twenty-first century.”

With this in mind, the question is: Is your business ready?

Photo credits: nicubunu.photo and bartsz on Flickr.

Chad Thiele

A Lesson Worth Remembering: Correlation Doesn’t Imply Causation

0 comments By Chad Thiele Filed in app, business, market research, retail, shopping, technology Tagged with app, business, market research, retail, shopping, technology January 21st, 2013 @ 8:00 am

Most marketers were taught that correlation doesn’t necessarily equal causation in their introduction to statistics courses. However, I think that this is a lesson that we all forget from time to time.

I must confess, I have ignored this lesson in the past.

In a blog post that I wrote about shopkick in July of 2011, I cited an article that was posted on xconomy.com in order to explain how shopkick benefits retailers.

One of the arguments that was made in the post could have been challenged by pointing out that correlation doesn’t imply causation. (However, as I will explain, even with its faults, I believe that the argument that was made does have merit.)

The Example—an Excerpt From My Blog Post

With the current economic downturn, anything that can bring consumers into their stores is a blessing for most retailers.

According to the article, “Shopkick Uses the Sound of Rewards to Bring Smartphone Owners into Bricks-and-Mortar Stores,” on xconomy.com, shopkick’s CEO, Cyriac Roeding, says that retail stores will do almost anything to get people into their stores because conversion rates at bricks-and-mortar stores are very high.

Roeding says that about 20 percent of shoppers end up buying something when they visit bricks-and-mortar clothing stores. The conversion rate at bricks-and-mortar grocery stores is even higher; he says that about 95 percent of shoppers who visit bricks-and-mortar grocery stores make a purchase. In comparison, he says that the conversion rates for most e-commerce sites range from between 0.5 percent to 3 percent.

Therefore, it’s not surprising that retailers would welcome any technology that can help get consumers away from their computers and into their stores. That’s where shopkick can help.

The Point: There is a Correlation, But…

Roeding’s stats are extremely convincing. However, let’s look at the facts again.

He states that about 20 percent of shoppers end up buying something when they visit bricks-and-mortar clothing stores, and 95 percent of shoppers who visit bricks-and-mortar grocery stores make a purchase. Furthermore, these numbers are much higher than the conversion rates for most e-commerce sites.

The correlation between going to a bricks-and-mortar store and making a purchase is undeniable. Therefore, all we have to do is get people to visit bricks-and-mortar stores more often and we will continue to get conversion rates similar to those that Roeding cited, right? Not necessarily.

You see, it is most likely the case that people often visit bricks-and-mortar stores when they are ready to make an actual purchase—this is particularly true of grocery stores. (How many people do you know who go window shopping at a grocery store?)

Therefore, the purchase is more than likely driven by some other cause (i.e., the need for an item, extra disposable income, a gift card, etc.) And, the fact that they go to the bricks-and-mortar store and make a purchase are both often a result of these outside factors.

Therefore, I’d speculate that the conversion rates among people who go to bricks-and-mortar stores as a direct result of the shopkick app are going to be somewhat lower than the current conversion rates cited above.

Supporting Evidence From the Local Mall

In his book, “Call of the Mall: The Geography of Shopping by the Author of Why We Buy,” (affiliate link) Paco Underhill points out that mall owners have tried to increase the time that people spend in malls by offering diversions that have nothing to do with shopping (e.g., food courts, movie theatres, bars and nightclubs, amusement parks, arcades, etc.)

As Underhill points out, “It’s been proven that the more time someone spends in a mall, the more stores they visit and the more things they buy. Again, there’s an inescapable logic to that formula. Every mall owner in the world knows all this. It’s just that they respond differently to it. Some like the idea of putting in a big, glitzy, raucous entertainment sector. It’s the expensive way to go, but it’s easy, too—you just install it and turn on the lights.”

“But the connection between such amusements and increased spending isn’t ironclad,” Underhill continues a little later on in the book. “People may now come to the mall without intending to buy a single thing. In a recent study, slightly more than half of what people did in malls was unrelated to actual shopping—eating, movies, games, hanging out, socializing, and so on. Those who said the primary reason they came to the mall was “to have fun” spent less money than those who said they came to visit a department store—to shop. The survey also found that the overall perceived entertainment value of a mall is unrelated to the amount of time people devote to shopping or the number of items they buy. So shoppers can be exceedingly fond of their mall and still not spend much money or time in stores. It’s a risk.”

The Counterpoint

I used this example to make a point that correlation doesn’t imply causation.

In this case, just because you get more people to visit your bricks-and-mortar stores because they are using the shopkick app doesn’t necessarily mean that the increased traffic is going to result in the same conversion rates that are now being recorded.

On the other hand, you probably will have some increases in sales.

If people are visiting bricks-and-mortar stores for reasons other than shopping (in this case to use the shopkick app) and have a pleasurable experience when they do, they will become comfortable with the store and will more than likely feel an affinity to it. Therefore, the next time they do need an item that the store sells, there is a good chance that they will think of that store and will shop there instead of visiting a competitor’s store. (In fact, they might choose to visit the store to make the purchase, because it will give them another chance to use the shopkick app.)

Furthermore, while the conversion rates among consumers who visit bricks-and-mortar stores to use the shopkick app might not be as high as they are among consumers who go to bricks-and-mortar stores to shop, there still is a chance that the visit will result in an impulse buy of some sort. In comparison, what is the chance that a person will make an impulse buy if they don’t go into a bricks-and-mortar store at all? Zippo, nada, zilch. (That is, unless they visit the store online. However, as already mentioned, online conversion rates aren’t very high.)

Final Thoughts

I think that, every once in a while, we all forget that correlation doesn’t imply causation.

In reality, I think it is easier to overlook this fact when we want the causal relationship to be true.

However, the facts remain the facts.

While ignoring the fact that correlation doesn’t imply causation isn’t a cardinal sin, it could end up having a negative effect on your business’s bottom line if you make important business decisions based on relationships that don’t necessarily exist.

Photo credit: Kurt Magoon on Flickr.

Chad Thiele

Seven Things on My Radar for 2013

0 comments By Chad Thiele Filed in Advertising, business, JWT, market research, mobile, public relations, retail, shopping, social media, target marketing, technology, trends Tagged with advertising, business, JWT, market research, mobile, public relations, retail, shopping, social media, target marketing, technology, trends January 4th, 2013 @ 8:00 am

Question: 2013 will be the year of what?

That is the question that many people are currently asking themselves.

In November, iMedia Communications published a blog post that featured 16 business leaders making predictions as to what they think 2013 will be best known for.

In the post, Mark Cuban, an American business magnate and owner of the NBA’s Dallas Mavericks, predicted that 2013 will be the year of entrepreneurship. Ian Wolfman, CMO at MEplusYou, predicted that 2013 will be the year of purpose (i.e., brands will do more meaningful things in the world and more advertising dollars will be spent for social good in an effort to earn the trust of consumers.) Furthermore, Alfredo Gangotena, CMO at MasterCard, focused on the changing economic conditions around the world, including new opportunities for business growth in Africa in 2013.

Other experts predicted that we will finally get mobile right in 2013, video will explode, we will be able to achieve better targeting for in-marketing consumers, and that there will be more consolidation and easier technology, among other things.

If that list wasn’t enough to inspire your imagination, I’d suggest checking out the “100 Things to Watch in 2013” list published by JWT Intelligence. This yearly list has some amazing predictions for 2013.

Some of the Things That I Will Be Watching in 2013

I don’t have access to the same information that the business leaders that I mentioned earlier in this post have. Therefore, I am not going to make a prediction as to what I think 2013 will be best known for.

While I can’t say what 2013 will be best known for, I can provide a list of some of the things that I plan to study and monitor in the next 12 months. That list includes:

1) Rapid Advancements in Technology

We all know how fast technology has changed the world that we live in, in just the past decade. Think about what the world will be like next year, then think about the remarkable changes in technology that we will witness in the next 10, 20, or 30 years. In order to stay ahead of the curve, I think that it is important for businesses to pay attention to what futurists like Raymond Kurzweil predict the world will be like, and make sure that they have the products and services that will meet consumers’ demands when the time comes.

Therefore, it is not surprising that Google recently hired Kurzweil to be the Director of Engineering. Sure, the real reason for the hire is because Kurzweil has decades of machine learning experience, but there are other reasons for having a brilliant futurist on staff (i.e., making sure the competition doesn’t have the same level of access to all the knowledge that he has in that head of his.)

There are other reasons to be thinking about the future of technology from a business standpoint. For further insight, look at number 11, 20, 27, 43, 52, 65, and 70 on the JWT Intelligence “100 Things to Watch in 2013” list.

2) Mobile (User Experience and Marketing)

According to comScore, “123.3 million people in the U.S. owned smartphones (53 percent mobile market penetration) during the three months ending in November 2012, up 6 percent since August.” (This doesn’t include the increase that we will most likely see after the numbers are in after the holiday gift-giving season. Also, keep in mind, this number doesn’t include tablet computer usage.)

Therefore, it is not surprising that many experts predict that mobile will play an increasing role in consumers’ purchase decisions in the future. Therefore, it would be extremely ignorant to ignore this important technology.

From a business standpoint, it will not only be important to monitor how consumers are using their mobile devices in their day-to-day lives, but it will also be important that consumers can easily find the brand’s products or services wherever they are looking, including when they are using their smartphones or tablet computers. And, when they do find the brand’s products or services online, it will be equally important that the information that they find is user friendly and optimized for the mobile device that they are using.

3) Mobile Payments

Mobile devices will not only change the way that consumers find and do research on products or services, they will also play an increasing role in how consumers actually purchase these products and services. In fact, according to a post on the Intuit GoPayment Blog, a recent Jupiter Research study estimated that, by 2017, one out of every 25 retail transactions worldwide will be completed with a mobile device.

Therefore, it is important that businesses start getting comfortable with this technology now, while the technology is still new and they have the luxury of time to experiment and make adjustments, as necessary. If businesses wait until a majority of their customers become comfortable with the technology, they might end up losing sales to competitors that have taken the time to experiment and perfect the transaction process.

4) Mobile-Influenced Merchandising

As an increasing number of people use mobile devices to gather information as they shop in brick-and-mortar stores, it is inevitably going to change the way that consumers interact with products in the real world. Retailers are going to want to do everything that they can to prevent what some experts call “showrooming.” Finding ways to get consumers to buy from the current store that they are in is going to become a top priority. Among other things, this might lead to more price-match guarantees to increase sales. There is also a possibility that consumers’ shopping behaviors will be altered in ways that we haven’t even thought of as a result of consumers having a mobile device in their hand while they shop. It is for this reason that I will be watching merchandising trends in 2013.

5) Privacy Issues

Changes in all sorts of technology, from Facebook to facial recognition technology, will have consumers worrying whether or not their personally identifiable information (PII) is getting into the wrong hands. In this environment, even the perception of a privacy issue can have a huge impact on whether or not consumers trust the brand, which can ultimately have an effect on the bottom line.

6) The Evolution of Marketing and Public Relations

It is important that businesses monitor changes in the marketing and public relations world. Each new technology that is introduced brings with it new challenges. Therefore, it is important to understand what is working for other companies and adapt that into your marketing plan, if possible. It is also important to try new things, test, and make changes when necessary. However, as Mark Schaefer points out in a recent blog post, one of the best ways to cope with the changes that marketers are facing today is to view technological change through the lens of marketing fundamentals. That way you can more easily weed out the stuff that most likely won’t work. In other words, a solid understanding of the fundamentals of marketing and public relations will still be the foundation for success.

7) Emerging Markets

Alfredo Gangotena’s comment in the post that I mentioned earlier really got me thinking about the possibilities that are available in emerging markets. Therefore, I plan to add this to my to-do list of topics to study in 2013.

Conclusion

These are just some of the things that I will be watching in 2013.

It is important to note that a change in technology could have a huge impact on all the other things mentioned on my list.

So now that you have my list, my question to you is: what is on your radar in 2013?

Photo credit: Official U.S. Navy Imagery on Flickr.

Chad Thiele

HubPages, Squidoo and Getting Paid to Use Facebook

0 comments By Chad Thiele Filed in Advertising, blogging, Facebook, social media, technology Tagged with advertising, Blogging, Facebook, social media, technology October 20th, 2012 @ 8:00 am

Recently, I joined HubPages as a way to help get the word out about my blog and possibly earn a little income by writing.

If you are not familiar with HubPages, it is an online community designed to help writers share their content.

The site allows users (a.k.a. “Hubbers”) to post articles (a.k.a. “Hubs”) on the site.

One of the benefits of using the site to publish Hubs is that it is set up in much the same way as a standard social networking site is.

When you sign up for the site, you can follow other Hubbers and Hubbers can follow you.

To encourage participation within the community, you earn a HubScore and receive accolades for participation (these are similar to the badges that you receive on Foursquare.)

Hubbers can also share another person’s Hubs with their followers, thus making it easier for good content to be spread.

As I alluded to, you can also earn income on HubPages through Google Adsense, the Amazon and eBay affiliate programs, and through the HubPages Ad Program.

It is this aspect of the site that got me thinking.

Monetizing Social Networking Sites

When people talk about monetizing a social networking site, they are talking about finding ways to make money from the site.

As is the case with many social networking sites, HubPages makes money off of display advertising. However, unlike many of those social networking sites, with its Ad Program, HubPages lets the Hubber keep the earnings from 60% of the impressions and HubPages gets the rest. (This encourages Hubbers to post quality content.)

For the record, HubPages is not the only site that lets users earn money. Squidoo, the site that was started by Seth Godin, uses a similar revenue-sharing model.

I wonder if this is something that Facebook could do to earn more money.

While I haven’t fully thought this through, I’m thinking that if Facebook paid users a portion of the revenue that they received from Facebook Ads when their content was viewed by other users either via the timeline or on their profile, it would encourage users to use the site more often and post more valuable content. (It could also help increase the time that users spend on the site.)

Facebook could use a formula similar to EdgeRank to determine how valuable the content is and how much the user should receive.

This definitely would make me want to use the site more often.

However, more importantly, it might get users to actually notice and interact with the advertising on the page.

You see, since I started using HubPages, I have started noticing display ads more often, at least the ones on HubPages. I know that those ads will possibly make me some money, so I at least look to see what ads are showing up based on the content on the page.

If users know that they are going to be making money based on the ads that run on Facebook, they might start noticing the Facebook ads, too. (This would be a great experiment for a neuromarketer to test.)

And, once you get users to notice the ads, there is a good chance that they will start to click them.

Therefore, even though Facebook would be giving away a small portion of the ad revenue, Facebook would still benefit if the total ad revenue increased substantially.

Why Facebook Should Pay You for Your Personal Info

I’m not the only one to suggest that Facebook pay its users.

In an article posted on money.cnn.com, David Goldman explains that in order for Facebook to increase its revenue, a pair of New York University business school professors are suggesting that Facebook pay users for the privilege of selling their personal information.

As the article mentions, “Here’s the idea: Facebook would pay its users a nominal fee — say $10 a month — for the right to send their relevant personal information to advertisers. Companies looking to advertise their products or brands to a specific group of people would pay Facebook for that data and for the ability to directly market to those individuals.”

As the author of the article explains, Facebook could add a new revenue stream, and increase the company’s transparency and trustworthiness at the same time, by giving users the ability to make money by opting in to such a program.

Potential Drawbacks of Paying Facebook Users

There is definitely the possibility that paying Facebook users could backfire on the company.

Let’s look at both ideas separately, starting with the idea that I suggested.

First, as I pointed out before, paying Facebook users a portion of the ad revenues will likely make users even more aware of the advertising. This could turn some people off.

Furthermore, users wouldn’t really make all the much money unless they post a lot of content, are connected to a lot of people and those connections interact with the content—a lot.

People might also question whether or not the social media giant was giving them their agreed-to ad revenue, particularly if they used a formula that is difficult for users to understand (i.e., one that is similar to EdgeRank.)

There is also the possibility that people would game the system by creating fake accounts, liking and interacting with their own content and clicking ads just to make money.

If Facebook went the route that the New York University business school professors suggest, it could run into similar issues, including having users game the system by creating fake accounts, losing trust and credibility if users question whether their data is worth more than $10 a month, and possibly losing users because they would be even more aware of the site monetization.

Conclusion

Facebook is going to have to find additional ways to make money with the site to increase revenues in order to satisfy their investors.

Paying users to use the site is an interesting idea that could increase revenues. However, there is the possibility that it could backfire.

As I mentioned, I haven’t thought this through completely, but it is an interesting idea.

So, what are your thoughts? Do you think it would be a good idea for Facebook to pay its users?

Photo credit: tellumo on Flickr.