Voices: the CMB Blog

The other day I read an interesting article in the Chicago Tribune; the headline read:   Hard-hit Millennials less likely to be brand loyal. As a “hard-hit” millennial (those aged 19-34), who owes the value of a modest-home in student loans, I was very interested in what the marketing masterminds of the world had concluded. Turns out, it’s not so good.

According to a study released by WSL Strategic Retail, 25% of Millennials reported that they do not have enough money to cover basic needs. It also concluded that 80% of Millennials believe it’s important to get the lowest price when shopping and 60% would choose a lower priced item over their usual brand if it meant saving a few bucks.  The article also suggests that retailers had previously considered Millennials their “golden ticket” to growth and success. I guess they opened the wrong Wonka bar.

As an agent of consumer research, I began to wonder about our clients and other brand marketers. Are they spending sleepless nights trying to develop plans to compensate for a demographic that is not only unwilling, but virtually unable to spend? Millennials have already been dubbed “untouchable” by traditional marketing standards due to the digital boom; it makes you wonder why brands would invest countless dollars in research and marketing efforts if Millennials are such a lost cause. My advice to marketers? …don’t start losing sleep just yet.

To be clear, we see evidence that supports WSL’s conclusions. Our Winter 2011 Consumer Pulse research on loyalty found that Millennials expressed less loyalty than Boomers to a range of products, with the exception of social networking sites and electronics.

However, we can also find support that suggests Millennials are not as hopeless as they seem. The same Pulse research found that 84% of Millenials consider themselves moderately loyal. In addition, nearly half (46%) said that there are companies or products they’re so “loyal” to that they do not consider price when making a purchase decision. So how does one crack that egg?  What it comes down to is experience. Fifty-three percent of Millenials were willing to pay a bit more to companies they’ve used before and whose products they know they’ll like.

Despite it all, Millennials appear optimistic. Having grown up in an era plagued by war and economic strife, you would think the negativity would bring us down. However, Millennials are seeing a light at the end of the tunnel. According to a separate Consumer Pulse research study CMB conducted in summer 2011, 48% of Millennials surveyed were optimistic that their financial situation would get better in the next 12 months. And nearly a third (29%) said the economic downturn had no effect on their stress levels.

While our pockets may not be as deep as we would like, we are optimistic they one day will be. In fact, the same Summer 2011 Pulse research found 59% of Millennials viewed “being indulgent” a highly important goal/value. When the day finally comes where we can afford to spend, you can bet we will, and loyalty will be a driver. So have a little faith, brand marketers of the universe…we Millennials sure do. 

To read our latest Consumer Pulse reports exploring exploring trends in social media, healthcare, technology, travel, entertainment, and finance, click here.

Posted by Keri Ibbitson. Keri is an Associate Researcher with the Travel and Entertainment team. She considers herself very brand loyal, always choosing General Mills Cocoa Puffs over store brands.

In 6^th grade, my teacher sent home a survey to parents about “What motivates your child.” My mother wrote down three things: candy, money, and anything free. I remember this so vividly because I was mortified. I wanted her to say something meaningful like, “positive praise” or “a creative academic environment.” But no, she laid it all out on the table; that I was a greedy, Twix-loving, free loader.

Here at CMB, we spend a considerable amount of time investigating what motivates consumer behaviors. We want to know what the consumer is doing and why, and we want realistic and actionable insights. Keeping this in mind, I have considered my mother’s response to that long-ago survey and realized she probably should ditch being a nurse and consider a career in marketing.

To take an in-depth look at what motivates consumers to “Like” a company on Facebook and subscribe” to e-mails we partnered with Constant Contact to survey 1,481 Americans over 18.  The top motivators to these two strategic means of engagement are: to receive special discounts, or take part in special promotions. This concept of free giveaways, deep discounts, and being privy to special information is a major driver of customer engagement.

While the understanding that consumers enjoy receiving deals and free gifts may not seem like breaking news at first, it’s an important finding for companies looking to get the best return on where they decide to spend money on special deals, discounts, and giveaways. In a recent Consumer Pulse exploring the motivations of customer satisfaction survey takers, we found many consumers were motivated by the desire to improve the company and service rather than free gifts and incentives. Yet this doesn’t hold true for consumers “liking” brands on social media or subscribing to email lists.

Many consumers don’t particularly care about the bottom line of their favorite brands or businesses. They want to know “what can you do for me?”  Businesses who utilize e-mail and social networking to engage with their consumers need to heed this opportunity. More often than not, consumers want to know how they will benefit from a long-term business to consumer partnership.  Organizations that best understand the underlying intentions of their consumers have the key to turning special promotions and discount programs into lasting customer relationships. 

Long-term engagement is essential to solidifying a brand in any market. With the volume of communication and information sharing ever growing, businesses need to be prepared to meet their markets’ expectations. Consumers spend a lot of time on these outlets and businesses must be able to find a way to provide something meaningful so they’re not lost in the noise. Facebook pages and informational e-mails are only as good as what they can provide to their audience.

Download the full report: 10 Facts about Why and How Consumers "Like and Subscribe here.

 

 

 

Posted by Keri Ibbitson. Keri is an Associate Researcher with the Travel and Entertainment team. She has found her motivational drivers have grown since 6^th grade, and they reach well beyond candy, money & free stuff. 

As an everyday user of the criminally addictive social networking site Facebook, I rolled my eyes when I saw the new “Timeline” design. Why fix something if it’s not broken? Didn’t I just get used to the most recent interface?  While I sat absorbing all the new features, Facebook was busy launching a revelatory tool for marketers.

Previously, the popularity of a business’ Facebook page was driven by the number of “likes” and “comments.” Businesses could hide behind the “like” button.  Now, marketers are forced to tell a story about their brand (and if you know anything about CMB, we LOVE to tell a story). Customer engagement is now driven by a personal connection developed through captivating storytelling as opposed to an unimpassioned click of a button. Users can follow their favorite brands from conception to the present through the Timeline layout.

With the new layout, fans and visitors now see the same landing page. Everyone is privy to the same content, and it must be appealing enough to convert the “lurkers” into “likers.” Marketers need to achieve this through good storytelling, and Facebook has developed several new tools on the Timeline that allow users to make their stories unique.

New features like pinning and starring posts allow developers to anchor their most important posts at the top of their page for seven days. This ensures that the best stories don’t get lost in daily posts. Videos and pictures are now amplified on the pages, helping drive deeper engagement by existing fans, and piquing interest in potential ones. Milestones can now be defined by the business and posted publicly when they are achieved; allowing companies to share their successes with the people who helped get them there.

The most controversial of the new additions, is the ability to privately message people. This tool is being viewed as a way to individually engage with fans, and allow for quicker and more personal responses. However, companies should proceed with caution in using this feature. Bombarding their fans with an abundance of messages is a surefire way to turn off their support base. This tool should be used to help foster, and not strain, the relationships between businesses and their consumers.

A common driver of the old Facebook interface was quantity of content. The new Facebook Timeline pushes the focus to quality. Developers are encouraged to optimize the content they have in order to engage fans by telling their story during their fans’ “peak” usage periods and pinning popular posts. 

As professional story-tellers, we are excited here at CMB to launch our Timeline here

Posted by Keri Ibbitson. Keri is an Associate Researcher with the Travel and Entertainment team. When not writing about the complexities of Facebook, you can find her watching the Bruins, wrapped up in an Intervention marathon, or dreaming of going back to London.