Bureau West

Because of social media, the voice of an individual consumer can be many times more powerful than it used to be.  That’s why companies can’t afford to ignore social media; they must actively monitor social media outlets and engage with their customers and prospects there.

There are also important implications for market research: conducting research with “influencers” is more important than ever before.  While influencers might differ somewhat from your typical customers, it’s more important than ever to know how they think.  When designing research, we frequently look at influencers as a separate segment to be studied.

How do we define influencers? When recruiting research participants, we might ask how frequently they post their opinions about companies online or how often friends ask them for advice.  But a company called Klout has a more scientific approach: they have developed a sophisticated ranking system that analyzes an individual’s activity on social networks and assigns them a score based on their ability to influence others.  For example, they don’t just look at the number of people following the individual on Twitter, but also how often they click on posted links, respond to, list, or retweet that user.

Virgin America used Klout scores to locate influencers to receive a free flight to get the word out about its new Toronto route last spring, which generated 4,600 tweets about the new route. That led to more than 7.4 million impressions and coverage in top blogs and news outlets like the L.A. Times and CNN Money.  One benefit of this approach: the recipients of the free flights had already established a credible voice which made them believable despite the free gift.  They had “earned” the special treatment.

To utilize social media for your market research, give us a call at (818) 752-7210.

Sources: “Social Media for Market Research,” Ben Smithee, presented to QRCA So. Cal., September 10, 2010; “Need a Reservation? That Could Depend On How Big You Are on Twitter (Really),” adage.com, September 30, 2010

A new Pew Research survey shows a majority of consumers have cut back on their spending.  But at the same time, the survey shows more optimism than it has found since before the recession started: 62% of adults say they expect their financial situation to improve in the coming year, compared with just 19% who say they expect it to get worse.

In order to obtain more depth on this topic, Bureau West conducted qualitative research with consumers from a range of socio-economic groups.  We asked if they’ve cut back on spending and if so, how.  Similar to the Pew survey, we found a “new frugality” attitude.  Consumers are placing much more emphasis on obtaining value for money.  They’re looking for deals and using coupons much more than they used to.  Many are paying closer attention to the difference between “wants” and “needs.”

• “When buying, I’m thinking more about whether I really need what I’m considering buying, and if so, whether there’s an opportunity to save money by waiting or finding a deal.”
• “The best thing to do is stop spending on stuff you don’t need. If it isn’t an immediate need don’t spend the money especially if you don’t have it. I looked in my closet and realized I really don’t need any more clothes or shoes.”

At the same time, many participants are also splurging from time to time.  These may be small luxuries, but may indicate some pent-up demand.  For example, while many participants said they eat out less, eating at a restaurant is still a favorite way for people to treat themselves.  Consumers also mentioned home improvement projects and trips (both local and international) in the “splurge” category.

• “Instead of eating lunch from home, I’d go out to a nice restaurant or if it’s been awhile, I would buy myself a new pair of shoes.”

For marketers, all of the above may indicate an opportunity: consumers are willing to spend if they’re convinced they’re receiving value for money. Of course, when we conduct research to learn how consumers define value for a specific product, we need to be careful not to ask leading questions.  Rather, we like to give them choices, perhaps comparing different combinations of features and costs.  In some cases, we may use a mix of individual and group research methods in order to learn about consumers’ independent opinions but to also see the influence of group dynamics, which of course play an important role in consumers’ perceptions of value.

To find out how your prospects and customers define value, give us a call at (818) 752-7210.

Sources: “How the Great Recession Has Changed Life in America,” Pew Research Center, July 23, 2010; Bureau West consumer research, July, 2010

Advertisers are looking for ways to make direct mail more effective; here are two new approaches that combine direct mail with the power of the internet:

• A company called Dukky has an approach to turn the coupon in the mailbox into a viral-marketing phenomenon.  They use a personalized web address that is pre-populated with a target customer’s data. The individualized URL leads each customer to a microsite created exclusively for that individual customer. It mirrors the direct-mail campaign and provides the customers with the “payoff:” a coupon they can print out, for example. But before the payoff, they are required to share more information about themselves, which is then collected and tracked. Finally, the customer is offered a quick way to share the offer with friends through social media: If she likes the offer, she can post it to her Facebook page.

• Interpublic Group’s Mediabrands is teaming up with AOL to improve upon circulars and Sunday newspaper inserts.  They are working to create smarter online pamphlets that will prompt consumers to answer questions about their shopping preferences, such as their favorite brands or designers, and then serve up a catalogue of relevant products, retail locations and sales on related items. Consumers will also have one-click access to instructional videos and manuals. They aim to increase consumption by making shopping easier for people, seamlessly equipping them with Internet information they would otherwise hunt and peck to find.

To learn how to best engage your prospects and customers, give us a call at (818) 752-7210.

Sources: “The Future Has Been Delivered to Your Mailbox,” Entrepreneur Magazine, July 2010; “AOL, IPG Race To Keep Up With Consumer Habits Online,” Forbes, 6/17/10; “Meet the next generation of retail shopping,” IPG Emerging Media Lab Blog, 6/18/10

My colleague Lauren Isaacson just wrote an interesting white paper about the state of the iPhone in North America.  Among the highlights:

• The strongest growth for iPhone users is coming from people making between $25K and $75K. That bracket is growing at three times the rate of those making over $100K.

• 32% of mobile internet users are open to seeing ads on their phone as long as it is in exchange for something of value. Examples can take the form of free applications, access to information, or discounts on wireless bills.

• Tweens and teens are voracious app downloaders. Last Christmas application downloads for iPod Touches far surpassed (172% greater) those for the iPhone as kids raced to populate the screens of their brand new gadgets. This is great way to engage the youth market.

Source: “2010 State of the iPhone in North America,” Curio Consulting, July 2010