Consumer Survey Report Updated 10-29
Consumer Survey Report Updated 10-29
Consumer Survey Report Updated 10-29
Nov.
2012 6pm
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Yesmail Interactive
Yesmail is an organization that positively stands apart. For nearly 15 years we have stood for excellence in email marketing, with planning and delivery capabilities unrivaled in our industry. We dene ourselves by a better caliber of technology, insights, and service that help our clients get to yes sooner with their customers. We boast a complete portfolio of multi-channel marketing solutions and tools, including interactive marketing applications, data management, intelligence, lead generation and best practices consulting. Would we go so far as to say we are superior in our ability to use email to power intelligent interactions that actually drive business?
Table of Contents
4 7 Introduction
Methodology What this means for you, the marketer
8 12
13 15 16 31
Mobile devices: Santas little helpers Tune up your email for the holidays
Consumers are mobile. Is your email? Pick a date for email promotions based on where your subscribers purchase. Missed opportunities in send-time. Give consumers the gift they want, and the incentive they need.
32 51
52 55
Multi-channel or bust
Email is still at the core of successful multi-channel marketing strategies.
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According to the National Retail Federation, the holiday season can account for 25-40% of some retailers annual sales, making up a massive 19% of total retail sales .
1
25%
Clearly, theres a lot at stake during this time of year. With the type of sales figures that can make or break a retailers year, how do marketers ensure they are developing smart campaigns that dont just encourage interaction, but generate maximum revenue? In the past decade, general purchase patterns have changed significantly due to the boom of online shopping and the rapid adoption of mobile devices.
40%
45%
Last year, over 45% of all consumers completed their holiday shopping online .
2
This constitutes an annual increase of 21% that reflects digital marketings growing influence on online and in-store retail sales2.
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The Gap
JC Penny
?
2012
2009
2010
2011
However, 65% of marketers still feel unprepared for the growth of channel and device choices3 and have been slow to adjust their efforts accordingly. This becomes obvious in the 4th quarter when holiday revenue projections are missed. 2009 2010 In 2009, Abercrombie registered a huge 19% decrease in December same-store sales from the previous year4. In 2010, the Gap missed the mark with a 3% decline in comparable store sales, reported in the last five weeks of that holiday season5. During the 2011 holiday season, retail giants such as Kohls and JC Penney registered a disappointing 0.1% decrease and 0.3% increase, respectively, in same-store sales gains in December 20116. Though a decrease of in-store sales may have been expected due to the growth of ecommerce, both brands performed below industry average and had to cut their fourth-quarter profit forecasts. This, in turn, became a big factor in JC Penneys total rebranding and strategy redesign which is still in its early stages, and yet to yield significant results.
This trend of missed 4th quarter projections suggests a larger problem, perhaps stemming from the shift in consumer shopping behavior and marketers lack of response to the preferences of their audience.
While numerous articles have identified this problem, they typically havent provided a side-by-side comparison between what consumers want and what marketers are delivering, nor have they offered any actionable recommendations that bridge the gap between consumer preferences and marketing practices. Hence our moment of Zen
2011
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Methodology
To effectively gauge consumer shopping preferences, we developed and administered a comprehensive survey, polling over 500 consumers about their on and offline purchase behaviors, social media consumption, mobile device usage and more. We then employed our proprietary tool, Yesmail Market Intelligence, to track and analyze the digital marketing campaigns of 20 leading brands that typically rely heavily on online and/or in-store traffic throughout the holiday season: Amazon, Apple, Best Buy, Crate & Barrel, Dell, Game Stop, HH Gregg, JC Penney, Kohls, Macys, Nordstrom, Pottery Barn, Rue La La, Sears, Sprint, T-Mobile, Toys R Us, Verizon, Walmart, and Williams Sonoma.
After assessing both data sets, we were able to determine where marketers were hitting their mark, and more importantly, the areas of opportunity that brands should focus on to meet consumer expectations.
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identifying areas of opportunity and developing targeted campaigns is crucial to meeting fourth-quarter projections.
This report will provide actionable recommendations and specific tactics to improve your brands marketing efforts and bridge the gap between what consumers want and what your brand delivers.
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must-knows
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People are spending more. 7 out of 10 surveyed consumers plan to spend the same or more than they did in 2011, thus continuing the trend from last year when overall holiday sales increased by 4.1% .
7
This is obviously good news for marketers who have had a difficult time due to sluggish consumer spending, with June 2012 topping off the first three-month stretch of declining sales since 20088. This positive forecast puts a lot of pressure on marketers to execute holiday campaigns to gain a larger share of consumers wallets.
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51%
Earlier Months October November
of respondents said they will start making their holiday purchases in the October-November window which coincides with big shopping events like Black Friday and Cyber Monday.
December
24% 20%
will start their holiday shopping before October.
will wait until December to start checking things o their holiday shopping list.
People are spending early. To avoid message fatigue and find success, marketers need to segment their audience.
By targeting shoppers based on when theyre most likely to buy, marketers can attract early shoppers with early and more frequent messages, while reaching out to last-minute shoppers with targeted offers right before the holidays. Well discuss segmentation and campaign tactics later on in this report.
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People spend differently during the holidays. Our survey revealed that for product categories such as consumer electronics and apparel, people tend to buy in brick-and-mortar stores during the year.
This is a surprising finding, given many companies recent struggles with the showrooming phenomenon, which we will discuss later on in this report.
However, the survey suggested that consumers preference for the brickand-mortar experience shifts to the online shopping experience during the holidays.
Possible reasons for this shift may be: The recent growth of online purchasing during pre-holiday shopping events such as Cyber Monday and Black Friday. With a respective 22% and 26% increase in online spending during these two days in 20119, it is reasonable to expect future growth. Growing adoption of internet-enabled mobile devices. Growing ease of purchasing online, due in large part to marketers heavy investment in website redesigns that facilitate ecommerce10. Consumer perception that things are cheaper online, particularly due to discount websites like overstock.com, techbargains.com, etc10.
We also discovered that consumers personal research habits remain generally consistent throughout the year, with some small, but significant, adjustments during the holidays. Interestingly enough, shoppers utilize independent review sites such as CNET, Yelp, and consumer reports less during the holiday season than during the year. This indicates that product ratings may play a lesser role in their holiday purchase decisions, and that they may be more likely to take advantage of holiday sales and promotions. This may also explain why shoppers rely on email sales and promotions even more heavily during the holiday season.
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Our 2012 survey results suggest that an ever-growing number of people shop online.
97%
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of respondents said they use this channel at least several times a year.
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mobile devices
santas little helpers
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75%
25%
only 19% of mobile device owners purchase regularly from their device. The PC is still their preferred purchase tool, with 76% of mobile device owners using this method to make online purchases either frequently or all the time. 56% of online shoppers who do not own a mobile device say they purchase online frequently or all the time.
19%
76%
56%
$ $ $
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Rather than purchase directly from their device, mobile shoppers use them as tools to comparison shop.
Deloittes 2012 The Dawn of Mobile Influence report further supports this finding: the biggest impact of smartphones isnt direct sales generated through the mobile channel, but rather the influence they exert over traditional in-store sales ... The same report projects that the mobile influence factor will reach 1721% over the next four years, which will likely translate to $628$752 billion (or an average of $689 billion) in mobile influenced retail sales.12 This is a great example of the way consumers integrate mobile and online tools in order to get the best of both.
62%
64%
of surveyed mobile shoppers have used their device to visit a companys website to learn more about a product.
48%
of surveyed mobile shoppers have used their device to look up a product review while in-store in order to make an informed purchase decision.
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80%
of surveyed consumers reported that email promotions somewhat or strongly influence their decision to purchase online.
71%
Our survey data suggests that email promotions - such as free shipping, discounts, and exclusive offers - are a substantial driver of purchase decisions.
Survey results from ForeSee also support these findings, with email cited as the number two influencer for visiting a website, preceded only by brand familiarity13. These findings suggest that marketers should increase their spending on email marketing as the holiday season approaches and should better segment their audience based on browsing behavior in order to provide an enticing offer to help consumers convert.
said that email promotions somewhat or strongly influence their decision to purchase in-store, as coupons for in-store use become a significant purchase driver.
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A notable 14% of consumers surveyed start checking items off their holiday shopping list before September. Some brands seem to know their subscriber preferences better and have taken this into consideration.
The email campaign data for our 20-brand set shows a 3-5% monthly increase in email campaign deployment over the three months tracked.
This is an interesting development considering the email data, collected right after the end of the 2011 holiday season and featured in Yesmails report, Using Digital Market Intelligence to Drive MultiChannel Success, showed an average month-to-month increase of only 1.5%.14
12 holiday season
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October 1st
50%
of consumers surveyed also start shopping for the holiday season between October 1st and November 30th.
November 30th
October is a great time to start ramping up email programs as November approaches with Black Friday and Cyber Monday right around the corner. During that time, focus on higher frequency of email campaigns, as well as more appealing offers associated with explicit deadlines to entice buyers and create a sense of urgency around promotions.
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One way to ensure your offers are ahead of the curve is to employ a tool that can track your competitors digital campaigns in real time. This enables immediate reaction if rival brands offer higher discounts or better incentives for purchase.
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According to the National Retail Federation, 46.5% of consumers had completed their Holiday Shopping by the 2nd week of December15. For consumers, holiday shopping is a marathon. Like any endurance event, it is important to pace yourself in order to avoid fatigue, or in the case of email marketing, message fatigue.
You may also choose to tailor your email offers based on previous purchase data, or your subscribers interactions with any initial holiday-related emails. For example, if Waldo purchased a video game and gift wrap in October 2011, this may qualify him as an early shopper and place him in a specific product category like video games or electronics. Based on this data, Waldo can be the target consumer for a campaign going out in early October and advertising a small discount on video game controllers, consoles, or accessories and free gift wrapping with purchase.
For example, at the beginning of the holiday push, try sending a high volume of promotional emails only to early shoppers. Later, as the holiday season comes to a close, give more options to last-minute shoppers through targeted email campaigns.
high volume
more options
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41%
According to our survey, over 41% of mobile device owners said they have made either an online or an in-store purchase as a direct result of an email promotion they viewed on their device.
This is a particularly telling statistic that links mobile email campaigns to both online and in-store sales, further emphasizing the importance of mobile design in driving revenue attributable to email.
online purchase
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in-store purchase
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Most of the 20 leading brands we tracked have recognized the importance of mobile email design and have successfully incorporated it into their email programs. In fact, 100% of email communications we received from those brands were optimized for mobile viewership, which is a great sign given the trends we discussed previously.
email
Sears
website
Sears
We discovered that 1/3 of mobileenabled emails link to brand web pages that do not employ mobile design and are difficult to read on a mobile device thus almost defeating the purpose of a mobileready email. Learn from the best: Sears
The brands email template employs responsive design, which is the truest version of mobile email design. Sears emails are easy to read on a smartphone or a tablet, have large and clickable calls-to-action, and link to mobile-friendly website that is easy to browse through.
email
Kohls
website
Kohls
Kohls:
Kohls also utilizes mobile design in their emails, but they take it a step further and make it a part of their Welcome Program. Upon signing up for emails, the brand sends a coupon that is optimized for mobile device viewership. The same email takes subscribers to a mobile-enabled website that makes browsing through products on a smartphone or a tablet a breeze. This strategy banks on users getting the coupon and instantly starting to browse for item(s) to use it on.
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HH Gregg:
Similarly to Kohls, upon signing up for brand emails, shoppers get a coupon through a mobileenabled email. This email, however, takes them to a non-mobile-optimized website that greatly hinders buyers ability to browse through products and select the item(s) they would like to apply their discount to.
email
Sprint
website
Sprint
email
HH Gregg
website
HH Gregg
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Pick a date for email promotions based on where your subscribers purchase. People who opt for in-store purchasing tend to buy at different times than those who prefer shopping online.
sat. sun.
21%
m
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of online shoppers who identied a day-of-week preference shop between Monday and Wednesday
47%
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f
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Clothing Retailers
Brands that rely largely on ecommerce may see better results from their email promotions during the first part of the week, while brands that focus on instore sales may be more successful with an end-of-week or weekend email promo. Brands that strike a balance between the two purchase options may be the best candidates for two separate email programs: one targeted to online shoppers and one focused on in-store shoppers. Our survey data suggests that people tend to buy jewelry in-store 77% of the time, while they purchase Music, DVDs and Books online 61% of the time. At the same time, items such as consumer electronics and apparel come closer to a 50/50 draw, which suggests that a dual email program may boost sales and give consumers what they want.
They deploy most emails on Friday thus catering mostly to their subscribers who purchase in-store.
Many brands should consider tweaking their strategy to cater to customer segments based on their preferred point of purchase (online vs. in-store.) One way to do this effectively is to introduce an email program targeted to online shoppers and another one targeted to in-store shoppers.
For example: Get 20% off this in-store exclusive Samsung LCD TV today through Friday!
Online Retailers
They deploy most of their campaigns on Monday and Tuesday, demonstrating an avid knowledge of their target market and their customers preferences.
Electronic Retailers
They send the most email on Wednesdays, focusing their promotions on online buyers (whether consciously or inadvertently).
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afternoon 6%
2pm - 6pm
mid-day 17%
10am - 2pm
Missed opportunities in send-time: coordinate your email send time with consumers preference for online shopping.
When we asked what time of day consumers typically shop online, over 80% of surveyed participants expressed a time preference. Almost 40% designated the evening hours between 6pm and 10pm as their preferred time for online shopping. One significant reason why the evening period is so popular may be the aforementioned increased activity of mobile device users who browse their email and discover appealing offers during their commute home. They may be enticed to purchase later in the evening through their PCs, or on the spot through their device.
Only 5% of email campaigns were deployed during the 6pm-10pm peak shopping time when consumers may need to be nudged towards purchasing or offered an incentive to buy one brands product over another.
For in-store shoppers the preferred time of day is a tie between mid-day: 10am-2 pm (30%) and evening: 6 pm-10pm (30%). If marketers are looking to catch consumers before their lunch break or on their way home, they need to capitalize on this opportunity and send out their campaigns just before these times. However, we found that 41% of email campaigns are deployed in the very early hours of the day, mostly between 4am-6am CT. The objective behind this strategy may be for the brands emails to be in their subscribers inboxes first thing in the morning so they are at the top of the consideration set. Marketers, however, may be shooting themselves in the foot. As per our survey responses, this period is the second least utilized for online shopping.
mid-day 14%
10am - 2pm
night owl 2%
2am - 6am
afternoon 13%
2pm - 6pm
night 9%
10pm - 2am
evening 39%
6pm - 10pm
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Based on all of these findings, marketers have a considerable area of opportunity to cater to their consumers evening shopping preference and boost sales through well-timed promotions sent out during the home commute. Of course, any email practice should be continuously tested to ensure consistent optimal results. A send time that has worked well for the last 6 months may be underperforming as consumers grow accustomed to receiving communications at that time and become more likely to ignore them. The same argument stands for banking on the same type of formerly well-performing offers. Brands need the dynamic marketing that consumers are most likely to respond to.
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By utilizing web analytics, transactional data, preference center information, and data collected by a brands email service provider (ESP), marketers can learn a lot about their customers preferred purchase method, highest-converting offers, purchase history and device usage.
These records can be used to create filters and segment their audience to ensure a brands message is sent at the right time so it is top of mind when people are shopping. This is why it is important for a brands ESP to have a flexible API, extensive reporting capabilities, and comprehensive analytics in order to draw actionable insights from the subscriber data that have real strategic implications. Additional tools that ESPs should provide to their clients are send time optimization and open time personalization, both of which provide excellent ways for brands to easily cater to consumer preferences.
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Give consumers the gift they want, and the incentive they need.
Promotional offers have long been an effective vehicle to push shoppers to buy. In our survey, respondents ranked email campaigns based on how much a specific promotion can influence their decision to buy.
Consumers ranked email promotions by influence on purchase decision in the following way: 1 st 2 nd 3 rd 4 th 5 th 6 th
free shipping 30% percent o 54%
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Percent Discount Free Shipping Money Off Buy One Get One Free Gift with Purchase Rewards Points
As demonstrated by the significant overlap between consumer preference and most utilized marketing practices, brands tend to deliver on the type of promotions consumers feel most incentivized by.
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40%
of all tracked email campaigns focused on one of the five email promotion types listed in green
How often are marketers employing each of the following promotional offers: percent discount, free shipping, dollar amount off, buy one get one free, gift with purchase, and rewards points? According to our email data collected for 20 leading brands, over a three month period, 40% of all email campaigns focused on one of the five email promotion types identified above. Almost all were on money-saving promotions, with Gifts with Purchase and Rewards Points barely making up 3%. These sizeable numbers further attest to the consumer fixation on discounts and marketers determination to provide them.
97%
of these were moneysaving promotions (percent discount, free shipping, and dollar amount off) Gifts with Purchase and Rewards Points barely made up 3%.
While our survey revealed that consumers are partial to offers promoting specific percent off purchase discounts, brands should typically avoid continuous blow-out sales. This tactic may help with short-term projections, but can severely cut into profit margins while setting expectations for continuous blowout sales.
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72%
of the companys revenue was generated from products sold at a discount of 50% or more18.
A number of our respondents expressed a distinct preference for email coupons, particularly strong amongst mobile device owners.
sold at
50% OFF
Given the huge adoption of mobile devices for in-store comparison shopping and its influence on evening shopping patterns, marketers should consider making stronger use of email coupons that render on mobile devices and are redeemable online and/or in-store, depending on which type of sales needs a boost.
This practice will also help deter a phenomenon, recently dubbed showrooming, where consumers go in a store to get a look and feel of a specific product, and later go online to hunt for the lowest price. An additional tactic to limit showrooming and promote in-store shopping is integrating email with web analytics so you can provide consumers with relevant incentives for purchase. For example, a shopper who wants to compare online and in-store prices may choose to visit a brands website while in-store in order to find the most competitive pricing. Integrating email and web analytics would enable marketers to send that shopper a web behavior-based email with a coupon for 10% off any in-store purchase.
An additional concern with these types of blow-out promotions is the frequency with which they are deployed. In 2011 JC Penney ran 590 unique promotions, but the average customer visited only four times18. In order to avoid such mishaps, brands should be careful about the generosity of their offers, as well as their deployment frequency. Interestingly, even though JC Penney went through an extensive rebranding, redesigning major stores, recruiting spokeswoman Ellen DeGeneres and shooting a number of TV ads to boot, the company is in the middle of the pack within our 20 brand dataset in terms of overall social media ranking: 8th in Youtube, 6th in Twitter, and a low 16th in Facebook.
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be social
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The holiday season is the most conducive time of the year for communication between the brand and the consumer due to the proliferation of deals, questions around promotions, product information requests, and the set deadline by which all shopping should be completed.
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Brand interaction on social media is growing. Consumers want to hear from you. Even outside of the holiday season, according to our survey, consumers use social media to a large extent in order to interact with brands.
28%
of surveyed consumers said they dont use social media for interacting with brands.
56%
of surveyed consumers said their interaction with brands on social channels has remained the same or has increased in the last year.
These social media consumption patterns go hand in hand with our digital campaign data which demonstrates consistent growth of consumer interaction with brands. Over the period tracked, brand fans on Facebook grew at an average monthly rate of 5% while brand followers on Twitter grew by an average of 3% per month. For our 20 tracked brands over the three month period, the total number of gained brand fans on Facebook was 12,016,032 or one and a half times the size of New York City, while the total number of gained Twitter followers was a comparatively modest 373,715.
NYC
population of
8,224,910
100,000 people
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50%
of our survey respondents are somewhat to strongly influenced by social media when making an online purchase.
The stats to the left imply that brands need to continue, or in some cases start, utilizing social channels for promotional and sales messaging to a larger degree than they currently do. According to our digital campaign data, only 8% of Facebook campaigns deployed in the three months tracked focused on money-saving promotions such as free shipping, % off, or $ off. This stands at 4% for Twitter, which suggests an interesting area of opportunity for marketers who are striving to find new ways to enhance and measure the value of social media.
42%
of respondents said they are somewhat to strongly influenced by social media when making an in-store purchase.
The influence of social media on in-store purchase decisions calls for tighter integration between social media and in-store promotions.
During the holiday season, social channels can be used to promote various sales events, such as latest video game release, in-store events such as sampling or even flash sales. Promoting this information to a brands social channel followers creates a sense of exclusivity and urgency.
34%
of consumers have purchased a product as a result of a promotion they saw on social media.
Since our survey shows that most consumers prefer to shop in-store mainly during the weekend, the use of social media to influence in-store sales should be concentrated in the latter part of the week, such as Thursday and Friday, in order to drive in-store traffic.
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85%
of surveyed consumers said theyve liked a brand on Facebook or commented on their page.
This finding is corroborated by our digital campaign data which demonstrates a consistent upward trend in month-over-month campaign engagement on Facebook. In fact,
120 100 80 60 40 20 0
campaign engagement grew 105% over the three months tracked while, curiously, the campaign count went down steadily each month.
This may be marketers reaction to consumers tendency to tune out messages as volume increases. Interestingly, in Yesmails report, Using Digital Market Intelligence to Drive Multi-Channel Success, we identified this trend and recommended that social media marketers lower the number of campaigns they deploy19. Even though Facebook has significantly slowed down in terms of subscriber acquisition, the impressive campaign engagement growth and the consistent month-over-month increase of brand likes clearly indicate that Facebook can still be a goldmine for marketers who know how to use it effectively.
Month 1
Month 2
Month 3
*Standardized Campaign Engagement: We calculated this engagement score using an algorithm that successfully accounts for the size of each brands following, allowing marketers to compare brands and campaigns across a specific channel in a meaningful way.
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Were totally drooling over whats new from Jimmy Choo. Which pair is your fave? http://bit.ly/Mnv7So
Hello, Nutella Cupcakes. LIKE if you could go for one (or two...) of these right about now. Get it rst! The Samsung Galaxy S III is now The three most engaging brands on Facebook Recipe here >> http://rue.la/NSWdyO available on T-Mobile: (T-Mobile, Nordstrom, Rue La La) deployed, on average, http://t-mo.co/KqAU8N 54 campaigns monthly, while our least engaging brands (HH Gregg, Best Buy, and Dell) averaged 76 campaigns monthly. Would you try this mint manicure? (via http://rue.la/N4ukps) Nordstrom: Provide fun new ways to advertise sales, promote new products and get its followers excited. Were totally drooling over whats new from Jimmy Choo. Which pair is your fave? http://bit.ly/Mnv7So
Hello, Nutella Cupcakes. LIKE if you could go for one (or two...) of these right about now. Recipe here >> http://rue.la/NSWdyO
Rue La La Make it fun, tell followers what action to take, encourage interaction by asking questions, and make it multi-channel by integrating other digital platforms. Rue La La does this beautifully by bringing followers back to their website.
Get it rst! The Samsung Galaxy S III is now available on T-Mobile: http://t-mo.co/KqAU8N
Get it rst! The Samsung Galaxy S III is now available on T-Mobile: http://t-mo.co/KqAU8N
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17%
Surprisingly, according to our survey, YouTube was the second most popular social channel for consumers to interact with brands with 17% saying theyve watched a video on a brands channel. Our digital campaign data verifies these findings as brands saw a substantial campaign engagement increase over the three month period with a small fluctuation in the second month. Campaign volume also registered a consistent month-over-month growth. (As noted in our report, Using Digital Market Intelligence to Drive Multi-Channel Success marketers had been slow to effectively adopt YouTube as a viable marketing channel so, despite starting to utilize it with increasing success, this channel is yet to reach the level of message fatigue that Facebook or Twitter tend to have.)19 1.20 1.00 0.80 0.60 0.40 0.20 0.00 350 300 250 200 150 100 50
Month 1
Month 3
According to our digital campaign data, videos with links in the description account for 30% of all YouTube campaigns and have higher-than-average engagement which may be attributed to a smart marketing team understanding the importance of multi-channel engagement and the value of backlinking and SEO.
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An Apple Genius shows a fellow passenger how easy it is to make great home movies with iMovie. All before the tray tables are returned to their upright position.
While helping John Malkovich plan a night out, Siri shows him her funny side.
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While helping John Malkovich plan a night out, Siri shows him her funny side.
Genius shows a fellow passenger it is to make great home movies e. All before the tray tables are o their upright position.
Beats Audio technology of the new HTC One S 4G smartphone and what do you get? Stream your favorite songs from your music library straight from the cloud on Google Play. No wires. No syncing. Just 4G fast.
Ladies and gentlemen, start your Get your music 4G fast with the new HTC hashtags its T-Mobiles 4G Tweet Race! Stunning Retina display. All-ash One S, exclusively from T-Mobile. Combine Your mission is simple: register to play, architecture. Incredibly thin and light Witty commercials about a brands competitive advantage design. The brands YouTube strategy seems to be two-fold: on one hand, it the An Apple 4G speed of T-Mobile with the built-in tweet to race and get retweets to win. ping John Malkovichup its advantages over other Genius showsvisually passenger for the notebook. plan a night Itsaafellow stimulating whole of the new HTC new vision plays draw customers attention, while customer-centric offers Beats Audio technology movies how easy brands in a home Daily races lasting three-hours in duration hows him her way that racks up consumer views it is to make greatawareness of funny side. about upcoming plans, service upgrades and added Onewhilesmartphone and what do S 4G building with iMovie. All before the tray tables are you get? will start on 5/3 through 5/9 with a major benefits of choosing T-Mobile. On upright position. it focuses music benefits keep them informed and engaged. Stream your favorite songs returned to their another hand, from your on chance to win an HTC One S smartphone the benefits of the devices it offers while still emphasizing theGoogle library straight from the cloud on key at the daily nish line. Winners of the rst advantage of its network in each of its YouTube deployments. fast. Play. No wires. No syncing. Just 4G seven races will then compete in a nal
race on 5/15 for a Get your music 4G fast with the new HTCgrand prize of $4,000 or 4Gs.See o cial rules: One S, exclusively from T-Mobile. Combine Ladies and gentlemen, start your http://t-mo.co/4GTweets the 4G speed of T-Mobile with the built-in While helping John Malkovich planTweet Race! hashtags its T-Mobiles 4G a night Retina display. All-ash Beats Audio technology of the new HTC out, Siri shows him hersimple: register to play, Your mission is funny side. re. Incredibly thin and light design. One S 4G smartphone and what do you get? tweet to race and get retweets to win. e new vision for the notebook. Stream your favorite songs from your music Daily races lasting three-hours in duration library straight Introducing Share How much faster is T-Mobiles 4G network from the cloud on Google Everything. The plan will start on 5/3 through 5/9 with a that revolves around you. Unlimited talk. compared to the iPhone 4S onPlay. No wires. No syncing. Just 4G fast. AT&Ts chance to win an HTC One S smartphone Unlimited text. And a single pool of network? Dont blink or you may miss it. at the daily nish line. Winners of the rst Genius shows a fellow passenger shareable data that powers up to 10 Now see how much faster our 4G speeds seven races will then compete in a nal Ladies start your it is to make great home movies are for real at tmobile.com/testdrive.and gentlemen,devices. The rst plan of its kind. race on 5/15 for a grand prize of $4,000 or hashtags its T-Mobiles 4G Tweet Race! e. All before the tray tables are verizonwireless.com/shareeverything Stunning Retina display. rules: 4Gs.See o cial All-ash Your mission is simple: register most of your network with o their upright position. Make the to play, architecture. Incredibly thin and light design. http://t-mo.co/4GTweets tweet to race and get retweets to win. LTE coverage than all Verizon. More 4G Its a whole new vision for the notebook. Daily races lasting three-hours in duration other networks combined. will start on 5/3 through 5/9 with a Get your music 4G fast with the new HTC chance to win an HTC One S smartphone One S, exclusively from T-Mobile. Combine Introducing Share Everything. The plan ow much faster is T-Mobiles 4G network at the daily nish line. Winners of the rst the 4G speed of T-Mobile with the built-in ping John Malkovich plan on AT&Ts that revolves technology of the new HTC around you. Unlimited talk. ompared to the iPhone 4Sa night seven races will then compete in a nal Beats Audio Walmart focused grand prize of $4,000 or hows him her funny or you may miss it. Unlimited text. And a and what do you get? single pool of etwork? Dont blink side. race on 5/15 for a on coverage of their event sponsorships One S 4G smartphone as a marketing vehicle behind their YouTube campaigns. shareable data that songs from your ow see how much faster our 4G speeds 4Gs.See o cial rules: Stream your favorite powers up to 10 music This would typically be an engaging approach but what devices. The rst plan of its kind.Google e for real at tmobile.com/testdrive. http://t-mo.co/4GTweets library straight from the cloud on brands need to evaluate is the larger appeal of those verizonwireless.com/shareeverything Play. No wires. No syncing. Just 4G fast. events. In Walmarts case, a steak off and rodeo events Make the most of your network with have strictly regional appeal that may not speak to the Verizon. More 4G LTE coverage than all general consumer. othermuchgentlemen, start Introducing Share Everything. The plan How and faster is T-Mobiles 4G Ladiesnetworks combined. your network
Retina display. All-ash re. Incredibly thin and light design. e new vision for the notebook.
that revolves around you. Unlimited talk. compared to the iPhone 4S on AT&Ts hashtags its T-Mobiles 4G Tweet Race! Another underperforming YouTube brand is Toys R Us. Unlimited text. And a single pool of network? Dont blink or you may miss Your mission is simple: register to play,it. Though their strategy centers on raising awareness and shareable data that powers up to 10 Now to race and get retweets 4G speeds tweet see how much faster our to win. funds for charity, this seems to be its ONLY focus. The lack devices. The rst plan of its kind. are races lasting three-hours in duration Dailyfor real at tmobile.com/testdrive. ofverizonwireless.com/shareeverything reason for decreasing campaign diversity may be a key will start on 5/3 through 5/9 with a consumermost of your network with Make the engagement and eventual tuning out of chance to win an HTC One S smartphone campaigns from LTE coverage than all Verizon. More 4G Toys R Us. at the daily nish line. Winners of the rst other networks combined. seven races will then compete in a nal 1.877.938.6246 www.yesmail.com page 40 race on 5/15 for a grand prize of $4,000 or
14%
The third most utilized method for brand interaction for consumers is writing a review on a social forum or a blog with 15% of surveyed consumers saying theyve done that.
Pinterest follows with 14% of respondents saying they have used it to pin an image on a brands page. Due to its visual nature, user demographics and its top focus areas (see below), brands targeting women and/or moms and offering products and services in any of those focus areas should develop a Pinterestspecific communication strategy designed to generate brand awareness and develop relationships with target consumers early on so they can be top of mind during the holiday season.
crafts
gifts
If your brand isnt using Pinterest, note that its the 3rd fastest growing social channel and developing a Pinterest strategy is essential to your visibility and accessibility online.
While Pinterest has a lower (but rapidly growing) adoption rate than Facebook or Twitter, roughly 80% of its users are women and 50% have children.20
interior design
fashion collections
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12%
Unexpectedly, Twitter comes in second to last in consumer preference, while digital campaign data indicates a consistent upward trend in engagement as campaign count goes down month-over-month. Interestingly, technology companies are doing a great job of engaging customers on Twitter which may be a larger statement about the composition of Twitters audience and its technological prowess. According to our digital campaign data, campaigns that garnered the highest engagement focused largely on tech news, tech product reviews, and tech product information and pricing, with Macys being a notable exception.
35 30 25 20 15 10 5
30 25 20 15 10 5 0
Month 1
Month 3
*For the purposes of this report, weve defined promotional as tweets containing information about Free Shipping, % Off or $ Off discounts, Buy One Get One Free offers, Gift with Purchase or Reward Points.
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Retweeted by H.H. Gregg Macys: Its all about the celebs and piggy-backing off of their public appeal in order to capitalize on consumer interest. Retweeted by Dell
Retweeted by Macys
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4%
80 70 60 50 40 30 20 10 0 450 400 350 300 250 200 150 100 50 Google+ lags as the least utilized platform for brand interaction. This finding is further corroborated by our digital campaign data which indicates a sharp month-over-month increase of Google+ campaigns and a significant month-over-month decrease of campaign engagement.
This reverse trend suggests that Google+ is still trying to establish itself as an effective marketing channel and is struggling to acquire and retain engaged users.
Month 1
Month 3
Such diversity in the popularity of different social platforms has clear implications for marketers, particularly those with limited resources. Obviously, Facebook remains a key platform for social media marketers due to its popularity; however Youtube is a viable channel that is still generally overlooked. As we approach the holiday season, marketers could make full use of this channel to showcase their products, generate excitement, as well as nudge people toward purchase. According to a recent eMarketer article, four in ten online shoppers visited a store or retailer website as a result of watching apparel videos online21 thus largely contributing to consumers purchase decisions. Most viewed videos include customer testimonials and reviews, which can easily be used in email campaigns. In addition, providing a link in the video description not only offers a shortcut for viewers to make a purchase but also helps site SEO.
know
channels
strengths each
As for other social platforms, while they may not have Facebooks reach, careful use of each one can pay substantial dividends.
As demonstrated by the success of tech companies utilizing Twitter, brands can effectively harness the power of this channel if they pay attention to its demographics, the way it matches their audience, and if they consider the channelspecific rules of engagement. For instance, 45% of Twitter users are under 34 years old,22 a key demographic for technology firms, which have done a great job of using Twitter in line with its strengths as an informational resource. As the holiday season approaches, other brands wishing to emulate this success may want to avoid promotional messages, and focus instead on information that helps their followers make better purchase decisions.
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Twitter
40 35 30 25 20 15 10 5 0 80 70 60 50 40 30 20 10 0
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Generally speaking, for both Facebook and Twitter, holiday-themed campaigns perform little to considerably worse than non-holidaythemed campaigns. One notable exception for Facebook was the Fourth of July, which inspired holiday campaigns that performed extremely well. Another interesting finding is that holiday-themed campaigns are a considerably more frequent occurrence than are campaigns promoting dollar and percent discounts or free shipping. For Facebook, holiday-themed campaigns accounted for a remarkable 14% of all campaigns over the three months tracked, while for Twitter, they accounted for 8% of all campaigns over the tracked period.
Facebook 14%
Twitter 8%
The percentage of holiday-themed campaigns for both Facebook and Twitter is double that of campaigns promoting dollar and percent discounts or free shipping.
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Happy Independence Day from T-Mobile! "Boom goes the reworks!" These findings suggest that consumers may be oversaturated by holiday-themed promotional campaigns overtly vying for a share of the consumers wallet. Blatant holiday-inspired calls-to-action, (like Pick out the perfect gift for Dad) generate comparatively little engagement and may even encourage consumers to tune out your brand. Instead, try to focus on the benefits of your brand rather than the event that prompted it. Concentrate on your products: their high ratings, excellent consumer reviews, and any customer-generated content that further (but subtly) promotes them.
Were not suggesting to ignore the holidays. Our data actually demonstrates that campaigns focused on getting people into the holiday spirit perform very well.
Some of the most engaging campaigns over the three month period we tracked pertain to the holidays. The key difference between these campaigns and their poor-performing counterparts is that the winners were focused on promoting the holiday spirit, not their products or sales events.
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17%
42%
According to our survey data, only 20% of consumers dont have a time preference when interacting with brands on social channels.
Much in line with the time of email communication, 42% of shoppers prefer to interact with brands in the evening, between 6pm and 10 pm, with the night hours (10pm-2am) and afternoon hours (2pm-6pm) getting 17% of the vote each. According to our digital campaign data, marketers frequently use rather different time periods.
17%
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35% - 38%
27% - 30%
34%
For both Twitter and Google+, campaigns deployed at night garnered more engagement than those deployed in all other times of day combined.
During the holiday season, when shoppers may use social media to look for gift recommendations or product reviews having community managers manning your social media channels during off hours (6pm-2am) may pay big dividends, as consumers reported using social media most frequently during that time period.
Alternatively, marketers could look to automate some of their social media campaigns, enabling them to launch promotions during that time period.
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48%
interact yearly
11%
of those who interact with a brand on a social network are power users and interact on a daily basis.
16%
interact weekly
25%
interact monthly
The growing engagement that brands reap on almost all social channels is an additional indication that marketers are doing an excellent job of harvesting the small group of active subscribers, and providing campaigns that engage them consistently, thus enhancing the brands social reach.
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multi-channel
or bust
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Email
Taking consumer preference into account and incorporating our recommendations into your brands email, social and mobile channel programs is a necessary initial step to grow conversion and increase marketing ROI.
50% of online shoppers have made a purchase as a result of an email promotion. 41% of mobile device owners have made a purchase as a result of an email promotion.
79% actively research potential purchases and find out information about sales and promotion through email communications they receive from brands.
True marketing program optimization requires multi-channel integration that reflects consumer preference and is consistently dynamic to avoid message fatigue.
This is a marketers biggest challenge as well as their biggest opportunity. This report stresses the importance of a brands presence in each channel its consumers are actively interacting with. Here are some of the key insights we gained from our consumers, which emphasize the need for a true multi-channel campaign strategy:
Social
34% have made a purchase as a result of social media promotion.
44% have interacted with a brand on social media as a result of an email they received.
20% exclusively interact with a brand on social media as a result of an email promotion. 38% actively research purchases, sales and promotions on social media.
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Email is still at the core of successful During the holiday season, identifying multi-channel marketing strategies the lucrative crossover between power As stipulated in Yesmails report, Using Digital Market Intelligence users and early shoppers is essential to Drive Multi-Channel Success, social media engagement on to having a winning Q4. Facebook grows between 50-100% if one or two email campaigns
are deployed in the same timeframe, while social engagement on Twitter grows between 35-50% if one or two emails are sent in the same timeframe.19 This insight, in combination with our recommendations based on our survey findings, can ultimately translate into a marketing strategy that has higher brand interaction, higher relevance, higher reach, and higher number of sales. As previously noted, it is important for marketers to identify and engage power users in order to be successful in their social media efforts. These individuals start looking for promotions and product information early on and when they find it, they typically share it with their social following, creating organic brand and product awareness.
due to campaign characteristics that prompt higher engagement such as most eective types of promotions, appealing subject lines, videos, etc.
$
$
higher relevancy
due to behavioral and/or purchase data collected
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Given the intricate way that email, social, and mobile channels interact, marketers must work harder during the holiday season to provide integrated campaigns. For example, individual product images in an email should have socially shareable content that links back to specific product pages, rather than just share buttons that post the entire email. People who show interest in a social promotion can receive a follow-up email featuring that promotion, so it can be saved for later use, like browsing on their daily commute home or for comparison shopping while in-store. This is merely one suggestion of how you can take an integrated approach to your digital marketing efforts in order to optimize your campaign effectiveness and, ultimately, increase sales. As we have mentioned throughout this report, combining past behavior data with careful trend analysis can be instrumental in achieving lofty fourth-quarter goals.
In order to do this effectively, you need to ensure you have the right tools in place to:
1.
Build an integrated digital channel approach to satisfy the ever-evolving customer channel preference. Track, analyze and understand your subscribers behavioral data to enable timely and targeted campaigns. Collect and draw insights from competitive digital campaign data to stay ahead of market trends, learn from competitors high-performing campaigns, and counter competitive offers. Continuously test digital campaigns to identify areas of improvement.
Ultimately, marketers can capitalize on the holiday season and generate substantial revenue through insights-driven campaigns that give consumers what they want, when they want, the way they want. The consumer is king and savvy marketers who invest in learning about and acting upon consumer preferences will reap the benefits. A multi-channel marketing strategy continues to be the key to delivering on customer expectations and ensuring your marketing message consistently reaches and influences its intended audience.
2.
3.
4.
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REFERENCES:
1 National Retail Federation Report http://www.nrf.com/modules.php?name=Pages&sp_ id=1140
National Retail Federation Report: http://www.nrf.com/modules.php?name=Pages&sp_id=1140
12
Deloitte Digital, The Dawn of Mobile Influence: Discovering the Value of Mobile in Retail http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/ RetailDistribution/us_retail_Mobile-Influence-Factor_062712.pdf
Brinker, M., Lobaugh, K., & Paul, A. (2012). The dawn of mobile influence. Retrieved from http://www.deloitte. com/assets/Dcom-UnitedStates/Local%20Assets/Documents/RetailDistribution/us_retail_Mobile-InfluenceFactor_062712.pdf
In Coming Weeks, Online Shopping Expected to Grow Over Last Year http://www.nrf. com/modules.php?name=News&op=viewlive&sp_id=1277
Grannis, K. (2011). Survey finds consumers have only scratched the surface with holiday shopping; most have more than half of their shopping to complete (BIGresearch, Consumer Intentions & Actions Survey). Retrieved from http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1277
13
3 4
14
15
16
http://econsultancy.com/us/blog/9591-27-of-emails-are-opened-on-mobile-devices-stats
Charlton, G.(2012). 27% of emails are opened on mobile devices:stats (Econsultancy Digital Marketeres United). Retrieved from 16 http://econsultancy.com/us/blog/9591-27-of-emails-are-opened-on-mobiledevices-stats
17 18
Return Path, Mobile, Webmail, Desktops: Where are we viewing email now? http://www.nytimes.com/2012/01/26/business/jc-penneys-chief-ron-johnson-announcesplans-to-revamp-stores.html?_r=1
Clifford, S. (January 25, 2012). J.C. Penney to revise pricing methods and limit promotions. The New York Times. Retrieved from http://www.nytimes.com/2012/01/26/business/jc-penneys-chief-ron-johnsonannounces-plans-to-revamp-stores.html?_r=1
http://abcnews.go.com/Business/slow-job-growth-hampering-consumer-spending/ story?id=16791005#.UEpO65FxuSp
Mullaney, T. (July 17, 2012). Slow job growth hampering consumer spending. Retrieved from http://abcnews. go.com/Business/slow-job-growth-hampering-consumer-spending/story?id=16791005#.UEpO65FxuSp
19
20 http://www.searchenginejournal.com/pinterestingly-enough-interesting-pintereststats/45328/
Pinterestingly enough.[PDF]. Retrieved from http://www.searchenginejournal.com/pinterestingly-enoughinteresting-pinterest-stats/45328/
21
10
eMarketer, Product Ads Nudge Apparel Shoppers Towards Register http://www. emarketer.com/Article.aspx?R=1009290&ecid=a6506033675d47f881651943c21c5ed4
(August 22, 2012). Product videos nudge apparel shoppers toward register. www.emarketer.com. Retrieved from http://www.emarketer.com/Article.aspx?R=1009290&ecid=a6506033675d47f881651943c21c5ed4
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http://www.quantcast.com/twitter.com#!demo&anchor=panel-GENDER
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Interested in learning more? Ask us how we used each of the following to develop this report:
Customer Insights
Customer Strategy
Yesmail Interactive tel : 1.877.YESMAIL email : sales@yesmail.com web : www.yesmail.com 309 SW sixth avenue suite 700 Portland OR 97204
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