consumer-brand linkage in the digital world: the new age of influence presented to: 2011 consumer...
TRANSCRIPT
Consumer-Brand Linkage in the Digital World: The New Age of Influence
Presented to: 2011 Consumer Brand Conference
March 19th Rollins College
Melinda Smith de BorreroNA Head Brand & Communications
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It all used to be so simple…
Friends &Family
In-store sales people
Mass Media
Consumer
In-storePurchase
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… the World Ain’t What it Use to Be!
In-storePurchase
Friends &Family
In-store sales people
Shopper
Blogs
Social Networks
InstoreMediaE-tailers
Video
Manufacturer Sites
Search sites
OnlinePurchase
Fragmentation of influence is more difficult for marketers
4I1.01: Usage frequency of SNBases: All respondents 48325
Social networking is truly mass-market around the world
% using social networking
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Connections on social networks
Brands are becoming part of people’s social networks!
N10: Brands connected to on social networks / N11: Friends connected to on social networksBase: All respondents using SN, n=40819
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In rapid growth markets, social networks are a key source of information on brands; marketers must align content appropriately across regions
(Global average)
Reasons to join a brand community – To get more information about a brand
N13: Reasons for potential brand friending?Bases: 40382
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What Does This Mean For
Marketers & Brand
Practioners?
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Commitment to your brand
Two areas of Brand Power – Mind & Market
Influence – Brand & consumer generated
In a complicated world, marketers need to focus on the core principles of building strong brands
The role of emotion
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In a complicated world, you need a framework to provide
clarity: Welcome to the World of Influence 3.0™
Purchase
People
BRAND Generated activity
CONSUMERGenerated activity
Brands
Experience
“Consumer”Action
Interactions
“Consumer”Reaction
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The World of Influence 3.0™
Brand Managers need to focus on both dimensions within this framework
Purchase
People
BRAND Generated activity
CONSUMERGenerated activity
Brands
Experience
“Consumer”Action
Interactions
“Consumer”Reaction
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The Vertical dimension focuses on the relationship between brands and people
People
Brands
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Understanding Commitment is Different – and More Powerful – than Measuring LoyaltyCommitment - is the strength of the bond or relationship to the brand.
Commitment can erode long before actual switching occurs (i.e. loyal behavior continues - a customer keeps buying or using a product for some period of time before switching) and therefore, it is crucial to understand commitment.
LOYALTYis about what people do
is about observing purchase and repurchase behavior
“loyalists” are not necessarily committed
COMMITMENTis about how people feel
is about the strength of the psychological relationship/bond
committed are as loyal as possible
We Know This---- now what do we do differently
in the digital World!
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The horizontal dimension focuses on the different sources of influence over the brand-person relationship
BRAND Generated activity
CONSUMERGenerated activity
Interactions
SEE SEEK SAY
…Using a variety of information sources, including surveys, social media listening, and clickstream observation
How Can We Help Marketers & Brand Managers Succeed in the Digital World?
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As marketers are struggling to understand how to operate in the new marketing eco-system of Influence 3.0™, academics & practioners who look through the lens of consumer-brand relationship can help lead the way.
This means that some tried-and-true methods and practices used in research must evolve. We need to answer Marketers SO WHAT? And SO WHAT NEXT questions. For example,
• New & Improved Commitment/Relationship Metrics --- Survey AND Observational
• How do we quickly gain deeper understanding on/off-line brand-consumer relationships? We need to answer the marketers SO WHAT questions?
Let’s continue our discussion in the upcoming panel.
Some final words…
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INTERESTED IN EXPLORING THE LINKAGE BETWEEN PEOPLE-BRAND COMMITMENT
AND TRADIGITAL SOURCES OF INFLUENCE?
REVIEW THE FOLLOW (DEBRANDED) CASE MATERIAL
ANDLET’S TALK
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© Copyright TNS 2010
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Airline Case Study Challenge:
How can help marketers
succeed in the new world using
the consumer-brand
relationships as a foundation.
We have the data and some metrics
if you have winning ideas and time. A debranded example follows.
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12 months ago, client set out to build a new brand in the airline industry
12 month goal was seemingly simple
• Build awareness
• Generate buzz
• And start to prevail over inertia
Client situation (Debranded Case)
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14
12
13
7
8
5
5
3
10
7
3
5
4
5
18
21
20
26
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21
26
13
30
13
23
16
12
4
41
32
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27
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42
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16
5
11
20
18
17
39
26
21
59
20
62
29
57
69
89
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1
52
2
1
1
2
2
1
1
Committed Open Aware UnavailableUncommitted Unaware
Q2 & Q3
Users Non-users
Comp 1
Comp 3
Comp 2
Comp 4
Comp 5
Comp 6
Comp 7
Comp 8
Comp 9
Comp 10
Comp 11
Original Brand
Comp 12
NEW BRAND
SALES But they aren’t getting the trial they need to build a base of committed users…WHY?
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The client spent $70,000,000 in Media:
50% of the mix was Digital. Over 4,000,000,000 impressions were served last year!
By contrast, TV was only 30% of the mix -- with over 2,000 TRPs
SEE
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12 16
1 4
Recognize TV AD
Do Not Recognize TV AD
Not exposed to Digital
Exposed to Digital
% Aware of New Brand
+11 +15
+3
+4
+12
0 3 6 9 12 15 18 21 24 27 30 330
5
10
15
20
Series1Optimum
# of ExposuresAmong Target Market*
% A
war
e of
New
Bra
nd
at e
ach
leve
l of
expo
sure
4 billion impression yielded an average of 29 digital exposures
SEE TV does the heavy lifting in driving the little awareness we have. Much of the online spend was essentially wasted
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SEE At 8 months of age, the brand is still largely unknown
Total Brand Awareness
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PositiveNegative
New Brand (a)
Original Brand (A)
Comp 1 (B)
Comp 2 (C)
Comp 3 (D)
Comp 4 (E)
Comp 5 (F)
Comp 6 (G)
Comp 7 (H)
Baseline May-July Aug-Oct Nov-Dec
SAY Nonetheless, the launch has been powerful in generating buzz
Brand Buzz (%)
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New Brand discussion
Bailout TARP
Convenience Ease of Use
Customer Service
Fees
Financial Performance
Honesty
Online Banking
Rates
Retail Banking
0% 50% 100%
25%
8%
29%
23%
19%
30%
18%
16%
25%
58%
29%
37%
31%
47%
39%
34%
30%
42%
17%
63%
34%
46%
35%
31%
47%
54%
33%
Negative
Bailout TARP
Convenience Ease of Use
Customer Service
Fees
Financial Performance
Honesty
Online Banking
Rates
Retail Banking
0% 50% 100%
25%
9%
18%
14%
6%
21%
7%
6%
9%
50%
36%
45%
21%
45%
26%
43%
36%
42%
25%
55%
36%
64%
49%
53%
50%
58%
49%
NegativeNegative Neutral Positive
Security
On time performance
Finding Low Fares
Booking flexibility
Customer Service
Online Fees
Mishandled baggage
Comfort (more leg room)
Penalty for changes on tickets
Security
On time performance
Finding Low Fares
Booking flexibility
Customer Service
Online Fees
Mishandled baggage
Comfort (more leg room)
Penalty for changes on tickets
SAY The brand stands out – in a good way – from the rest of brands on topics of interest
Overall travel discussion
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'A better kind of airline is one that really looks at ways of allowing a customer ease of travel. An airline
relationship is a two way affair and if each fully understands the function of the other there can be a
relationship that benefits both…’
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SAY Those who talk about the brand have positive things to say
'Better airline is one that makes you feel
secure and ensures a pleasant and on time
flight experience’
'Basically what you've described is what would be
my perfect airline. I think you have taken the
customers and put them first.’
'Everything that New Brand offers… It is just
great.’
“New Brand seems to find the best low fares”
‘A better airline website is user friendly and allows me
to book and check online”
'Customer Service is crucial which I believe yours is
already excellent at that’
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2%5% 5% 6%
11%
7%
15%
9%
25%
3%
7%5%
7%
13%
9%
18%
7%
22%
3%
8%5% 6%
8% 7%
16%
7%
33%
1%
5% 4%6%
14%
7%
17%
6%
0%
20%
40% Baseline May-July Aug-Oct Nov-Dec
Original Brand
Comp 1 Comp 2 Comp 5Comp 3 Comp 4 Comp 7NewBrand
N/A
Comp 6
SEEK Those who know them want to try them
Airline Consider Switching to
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0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
ING Direct BAC Ally Capital One Wells Fargo Chase Citibank HSBC Direct Wachovia US Bank E*TRADE
Customers - Oct '09 Customers - Nov '09 Customers - Dec '09
Non Customers - Oct '09 Non Customers - Nov '09 Non Customers - Dec '09
READ AS: New Brand attracted 434,187 non customer prospects in October of 2009
Comp 1 Comp 2 NEW BRAND Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Comp 8 Comp 9 Comp 10
SEEK And they’re checking them out online
Q4 prospect volume trend by company
2929
© Copyright TNS 2010