Archive for 'Consumer Snapshots'
We recently reported some preliminary results of a study fielded to 425 moms in February, 2010. A significant portion of that study was dedicated to respondents’ interaction with wholesale clubs. And, some surprising facts came to the fore.
Our interest in clubs was driven by two key factors. The first was the notable shift in mom’s shopping behavior as a result of the economy. The second was the unique communication challenges of a member-only environment.
As expected, clubs have benefitted from the economic downturn.
46% of the moms in our sample are members of a club, with one in nine club members belonging to two or more. Of those members, just over half (54%) visit the club one or more times a month. And, 52% of the members indicated that they had increased the volume of their purchases at clubs as a means of controlling their spending during the economic downturn.
For members, the rise in club purchases approached the most popular money-saving activities identified by moms at large. In the aggregate, the two most popular means of controlling spending were using more coupons (63%) and paying more attention to in-store offers (72%).
Club shoppers still favor “old school” communication.
When queried about their preferences regarding communication from their club(s) on a range of subject matter, moms adopted a very traditional stance. General, top 2 box interest in the media were:
Twitter – 11%
Club blogs – 14%
Facebook page – 21%
Email – 51%
Direct Mail – 56%
Somewhat surprisingly, among those interested in specific topics, the disparity between the preference for “old media” and “new media” actually grew—categorically. For example, as it related to notification of upcoming promotions, top two box interest in the communication vehicles was:
Twitter – 7%
Club blogs – 8%
Facebook page – 14%
Email – 58%
Direct Mail – 75%
Even in lower-interest categories such as “money saving tips for their home,” club shoppers displayed a preference for being communicated to via a traditional medium over the more contemporary options. Of note in this category was the interest shift between email and direct mail.
Twitter – 5%
Club blogs – 11%
Facebook page – 17%
Email – 68%
Direct Mail – 49%
This study establishes an important framework for understanding the value of various communication vehicles, specifically for the club channel but, with implications for other retail and product brands. It does not, however, account for all the marketplace dynamics.
All customers are not created equal.
Retailers have long known that some customers are of substantially greater value than others based on the volume of their purchases. In recent years great strides have been made in leveraging that knowledge. Supermarkets, airlines, hotels and many other industries have successfully (or less so) created loyalty programs to track and reward customer purchase behavior.
All brands, be they retail, product or service, have also gained an appreciation of the value of their customers as brand advocates. For example, in this study, moms were half again as likely to identify family and friends as important sources of information on children’s products than any other source. The difficulty lies in identifying who the advocates are and how to provide them the necessary information and motivation to become active disciples for the brand.
Clearly, the results of the study referenced above indicate that while “new media” has some value for wholesale clubs, traditional vehicles such as email and direct mail offer a substantially greater opportunity. What the study does not take into account, but a future study will, is the importance of the various media to those moms who are most likely to influence others.
Organizations like Trone® and Forrester have identified that a relatively small group of people (~ 25%) are the primary contributors in social media environments. These moms can have an exponential impact on a brand’s spending. However, before they can disseminate information, they must first accumulate it and it will be the brands (retail, product or service) that best understand how and where to reach them that will be most successful.
In June of 2009 we reported on the impact the unstable economic environment was having on mom’s relationship with brands. With the economy stabilizing somewhat, we felt it was a good time to review the status of those mom-brand relationships.
In February, a study was fielded to 475 respondents with children under the age of 19 living at home. Among the many subjects on which this study probed was the behavior modifications moms have experienced re: product and retail brands.
Not surprisingly, some key measures of saving behavior actually increased during the period. For example, in the June ’09 study 66% of moms reported being more cognizant of in-store offers. In our most recent study that number has increased to 72%. Similarly, 58% of moms reported using more coupons in June. By February, that figure had increased to 63%. These numbers are hardly shocking. Undoubtedly, given the ebb and flow of the economy, some households that had not previously been impacted have experienced a personal downturn in the last eight months.
Conversely, many families who had felt the economic sting prior to last June have seen their personal situations improve in the interim. Lost jobs have been replaced; salary cuts have been restored, etc. Even more likely, people expecting the worst back in the summer of 2009 never realized it. How have these moms’ behaviors changed?
As a result of these economic realities, we anticipated that a large portion of our sample would have migrated back to their previously established brand relationships. But, while some brand migration is evident, it is nowhere near the levels anticipated.
On the product side, 65% of the respondents reported making substantive changes in the brands they’ve purchased. Of that number, only 9% said that they have returned to many or all of their previously favored brands. Of special interest are the influences on the decision to revert to prior brand behaviors.
In some instances (33%), comfort level with an old brand was identified as a major influence on moms reestablishing their relationship. Other brands benefitted from a lack of performance on the part of the competition. 37% of respondents identified dissatisfaction with their alternative selections as a primary driver of their return to prior purchase patterns. Of equal importance, however, were the steps their original brands took to woo mom back. 34% cited lower pricing and 31% reported more aggressive promotions as major influences on their decision to return to their historic brand relationships.
Retailer loyalties, while significantly impacted by the economy, have not experienced the same degree of migration as product brands have. 54% of moms reported substantial outlet switching. Of these only 8% have returned to most or all of their previously favored retailers.
The reasons for switching back mirror the rationale provided for returning to historic brand behaviors. Comfort with their prior stores was noted as a primary influence by 36% of the moms who’ve reverted to at least some of their old outlets. 30% cited dissatisfaction with the product assortment offered by their alternative choice. And, as was the case with product brands, many retailers had to win customers back with better deals. 36% cited lower prices and 35% noted more aggressive promotions as primary motivators in switching back to their old retail relationships.
The economy, while more stable than it was last summer, remains in flux. As a result, there are continuing pressures on brands’ relationships with moms. The longer this situation continues, the greater the likelihood that the attitudinal and behavioral shifts we have seen will remain permanent. The result will be more cautious and demanding consumers, particularly among those responsible for family. Retailers will continue to go out of business and brands will disappear from the shelves. The winners will be those organizations that understand the true needs and wants of their audiences and can successfully strengthen their customer relationships at every touchpoint.
If you are interested in connecting with moms, email Nicole, our mom team lead.
Pet owner dependence on the veterinarian is a significant indicator of spending behavior.
In January 2009, Trone® reported the results of a consumer study that identified six unique segments of pet owners. These attitudinally and behaviorally based groups displayed distinctly different relationships with their pets which were reflected in their pet-related spending.
As a follow-up, in December 2009, Trone launched another pet owner survey utilizing our opinions@trone database and infrastructure. This study, while confirming the findings of the previous work, uncovered interesting new information about the relationship between pet owners and veterinarians. The degree to which pet owners are dependent on the veterinarian is also a strong predictor of spending behaviors. And, it is not limited to spending exclusively done in the clinic.
Of the 945 pet owners surveyed (559 dog owners and 386 cat owners), 43% of dog and 34% of cat owners were deemed to be veterinarian dependent. Many of the behaviors distinguishing this group were definitional. As you would expect, owners who are veterinarian dependent are appreciably more likely to take their pet to the veterinarian two or more times a year. And they expect to spend significantly more on veterinary services over the lifetime of their pet than do their non-vet-dependent counterparts.
Veterinarian-dependent pet owners and their non-dependent counterparts share many common attributes.
Not surprisingly, dependence on a veterinarian is somewhat income driven. The vet-dependent group was 72% more likely to have an HHI over $75,000. But, households with incomes greater than $75,000 were less than 23% of the sample. Trust in the veterinarian and concern for the pet are even less likely than income to explain the dependence. 95% of the vet-dependent audience indicated a high level of trust in their veterinarian’s recommendations which was mirrored by the 90% of non-vet-dependent respondents who also trust their vet. The study included a number of measures of concern about their pets. On most of the questions there were only marginal differences demonstrated by the two groups. For example, when asked about the importance of protecting their pets from common parasites (fleas, ticks and heartworm), agreement numbers didn’t vary as much as 10% for the two groups.
The level of engagement differences between veterinarian-dependent and non-vet-dependent pet owners is evident in a range of behaviors.
While both groups have modified their pet-related spending as a result of the economic downturn, the veterinarian-dependent group has widened the spending gap. They’ve reduced their already higher spending levels less than the non-vet-dependent segment.
The vet-dependent group demonstrates a higher degree of product brand loyalty. They are 22% more likely to agree with the statement that they shop the stores that carry the brands they like rather than buying the brands that the store they like carries than their non-vet-dependent counterparts. As a result of this attitude, they are much more likely to shop the breadth of available outlets, including online. The sole exception is mass merchants which attract more non-vet-dependent customers in all categories from food (77% v. 56%) to flea and tick medications (43% v. 22%).
Veterinarian-dependent owners are also much more likely to have consulted with their veterinarian on purchases made outside the clinic. For example, they are more than three times as likely to have sought input on non-prescription food choices. And, they are more likely to act on the input they receive. 62% of vet-dependent pet owners have changed a basic product (i.e. food, shampoo, flea/tick treatment, etc.) in the past two years based on advice they received from their vet while only 11% of the non-vet-dependent group has taken such actions.
The challenge for marketers is to influence the influencer.
The challenge for marketers is leveraging the power of this highly influential veterinary group. In some cases the need is obvious. If a product is sold through the vet channel, some degree of engagement is necessary to achieve shelf space. But, taking the relationship beyond the basics and making your brand the preferred and hopefully, recommended choice is key. For products not sold within the veterinary channel the challenge is even greater. How do you engage the veterinarian to speak well of your brand? Must you rely on the pet owner to broach the subject or can your product interject itself into the conversation via the veterinarian? To answer these and the myriad of other questions that arise requires a unique understanding of the brand, the target, the influencer and the environment in which they interact.
If you are interested in connecting with pet owners, email Kimberly, our pet team lead.
"Relationship Mom" is outlet loyal,
not brand loyal.
In the latest Trone® panel survey, fielded October 2009, six distinct mom segments emerged. One of which is Relationship Mom. Not surprisingly, she is traditional in her desire to have relationships with family and friends. But wouldn’t that same woman want a relationship with a brand? Oddly, the answer is no. She is much more loyal to a store than to a brand. In fact, she’s 50% more likely than all other moms combined to be retail loyal.
Other findings provide a rich profile of Relationship Mom. Here’s a snapshot of her.
Head: The logical way she makes decisions
Relationship Mom displays the highest loyalty to retail stores (39% v overall sample of 26%), but inversely, has the lowest loyalty to specific brands. For example, she indexes at 60 when it comes to brand loyalty in the children’s apparel category, a category known for branding. To provide a contrast, Fashionistas, the most style-conscious group, display a greater loyalty to product brands, 30-40% higher across all categories than their counterparts. Not only does Relationship Mom put the least stock in brand names, she is also less concerned about brand reputation (37% v. 51%).
Heart: Emotionally what rises to the top
When it comes to parenting, Relationship Mom scores the highest on each and every descriptor of her relationship with her children from provider (99%) to best friend (51%). Knowing this about her relationship with her children, we find that predictably, she puts tremendous stock in family opinions when it comes to raising her family (76% top 2 box importance).
Wallet: How she spends her money
If Relationship Mom received an extra $10,000, she would spend it on her children.
Feet: Where mom gets her information
Not only is she traditional in her retail loyalty, she is also traditional in her media consumption. Relationship Mom is the least involved in all online activities. Along with her cohorts the "Affectionates," Relationship Moms have the lowest measures of engagement with email, blogs, even research. Affectionates and Relationship Moms share a skepticism of the value of published materials such as blogs (2% top 2 box v 15%). Trone has found that a media mix of print and TV is still necessary when courting the dedication of Relationship Mom.
After helping Healthtex children apparel secure distribution in Walmart, we produced an emotional spot that reminded moms of the fleetingness of childhood. The spot featured both the retailer, Walmart, and the Healthtex brand. Moms responded. Decide for yourself whether you think they are Relationship Moms or not. Here’s the Healthtex TV spot and a sample of the responses.
Quotes:
"I just discovered your clothing line today, and I just wanted to say THANK YOU for allowing me to dress my two year old like the innocent little girl that she is instead of a 17 year old. I’m going to be looking for this brand from now on! Thank you!"
—Natasha
"I am a mother of three. I was hoping you could tell me who sings the "wait, wait, wait, hold on" song in your commercial!! It is working! Great song, would love to find out more about the singer and your clothes!"
—Julie
"I actually started tearing up because the music and video clips made me think about how fast these babies grow up. I was laughing at myself for crying so easily, but then I realized that was a really good commercial! It touched my heart, especially having little ones the exact age as the babies in the commercial."
—J. Kennedy
If you are interested in connecting with any or all of the six segments of moms, email Nicole, our mom team lead.
Should you be talking to the Data Darling?
In the latest Trone(R) panel survey, fielded October 2009, six distinct mom segments emerged. As marketers develop communications, it is critical to recognize the differences in the groups and how they use and value brand information.
First of all, there are many universal truths about moms. They are moms and just as one would expect they put their children first. Moms see themselves first and foremost as protectors (85%) and providers (80%) with teacher as the next highest (75%). When it comes to safety, moms are skeptical. For example, only 15% feel that products are safe and that the government does a good job at monitoring the safety of products. Most all moms love natural products, but the added expense is a hindrance.
With that being said, the differences in Moms are just as interesting as their similarities and skepticisms.
Fashionistas
They are twice as likely as their counterparts to be influenced by brand name when it comes to children’s purchases. Not surprisingly, they are less focused on product durability, especially in clothing. But they are a loyal group, displaying a brand loyalty 30–40% higher across all categories than their counterparts. They are by far the most “me-centric,” admitting to spending too much money on themselves.
Intellectuals
The distinguishing characteristic of this group is their self-description. They are notably more likely to describe themselves as outgoing, aggressive, creative and smart. They do share some attributes with Fashionistas like valuing brand names, but they find their product decision more important. They use the presence of children in the home to buy more or bigger things: homes, cars, cameras, etc.
Affectionates
Maybe the most traditional of all the moms, they do distinguish themselves in many ways by what they are not. They are not brand or retail loyal. They are not trusting of nearly all sources of information on raising children, especially published information in blogs or magazines. She is also the least likely to see herself as her child’s best friend. But she is the most likely to see herself as friendly and approachable (Affectionates 93% v. total sample 74%) and kind and sincere (100% v. 79%).
Relationship mom
The name says it all. This mom scored the highest on every descriptor of their relationship from provider 99% to best friend 51%. They put tremendous stock in family opinions on raising their children. They display the highest retail loyalty of any group but put the least stock in brands. However, they are no more likely than the others to have switched brands as a result of the economy, but they are more than 30% more likely to stick with their new brand relationship.
Worriers
Scoring lowest on all aspects of relationship with their children (49% v. 65%), this group was much more worried about their children than any other segment. From their children’s behavior, academics to future decision making they are doubly concerned than the average of all other groups. Not only are they worried about their children, their anxiety crosses over to their relationship with their spouses and long-term finances.
Data Darlings
She loves information and is appreciative of all resources, especially on the subject of raising children. She is a marketer’s dream in that she values company websites (49% v. 29%) as well as articles so much more than other groups. Not surprisingly, they give advertisers more credit for understanding their needs. They share the propensity with the Affectionate mom to be less brand and retail loyal. Along with the Fashionista, the Data Darling is the most engaged with the internet, participating in social networks and blogs.
The survey revealed that a fifth of all moms are Data Darlings and are viewed by peers as a key source for brand information. Her value to marketers is invaluable.
Trone has found low bounce rates to be one way to evaluate the Data Darlings’ appreciation of meaningful online information. This fall, Trone designed and developed a website for Healthtex children’s clothing. The brand was virtually unknown to today’s mothers. The site was designed to educate this missing generation of young mothers on the attributes of a brand their mothers knew and loved. A link to Walmart allowed moms to purchase the clothing. The results were astounding. Moms stayed and absorbed information with an unheard-of 2.9% bounce rate from the site (The average for a product site is 13–15%). Visit the site for yourself.
Find out more about how we talk to mom»
As the internet matures, user types become more difficult to distinguish.
As we reported three weeks ago, an opinions@trone longitudinal study on internet use among 2,212 adults has established that behaviors continue to evolve as the medium provides new and different opportunities for engagement.
The most recent shift we’ve identified is driven largely by the increase in socialization throughout the continuum of users. Social network memberships among those over 30 have increased 63% in just eight months. This continual morphing of the user base poses an ongoing challenge for marketers attempting to harness the internet’s power.
User segments exist, but the differences between them are increasingly blurry.
A cluster analysis identified six segments of the research respondents. While the differences in these groups are discernable they are not readily defined by a few demographic or behavioral components. For example, significant portions (38-76%) of all six segments are members of a social network. In fact, five of the six segments have network participation in excess of 50%.
12% Contributors
These key drivers of content on the web represent 12% of the user base. Not surprisingly, this segment skews male and somewhat younger than the sample at large. While they display a much more intense engagement with the internet, this group demonstrates different attributes in other areas as well. They are twice as likely as the sample to describe themselves as extroverts and 131% more likely to say they enjoy being in the limelight.
Their fervor is not limited to the internet as they recognize significantly more informational value in all sources of content and engage more frequently with all forms of media. In keeping with their intensity, this group is the earliest adopters of technology and has the largest penetration of mobile internet access (40%).
21% Socialites
This segment (21%) is very similar to the Contributors. They display the same younger, male bias and the same high levels of social engagement. Where they vary is in their dependence on the internet and the degree to which they generate content. They are half as likely as Contributors to add to a blog and only a quarter as likely to publish their own.
Other participatory areas in which they are somewhat reluctant to engage are online gaming, video posting and commentary and uploading photos.
14% Savvy Users
The 14% of users that make up the Savvy segment are in many ways the most representative of the norm. They skew slightly older and more educated with a corresponding higher income. However, on virtually all the attitudinal and behavioral measures they exhibited little difference from the sample
at large.
The one notable exception to that pattern is in research where Savvy Users are significantly more likely to use the internet to investigate all subject matter from current and historical events to health- and fitness-related information.
13% Connectors
The 13% of the sample defined as Connectors are similar in many ways to the Savvy Users and the sample at large. One difference is their level of organization. They are disciplined and plan most things in advance. To them, the internet is a tool which allows them to stay on top of things. More importantly, it helps them maintain contact.
All the segments identified in the study appreciate the value of the internet in staying connected, but none so dramatically as this group. 97% indicated the internet makes their life easier, 96% agreed it facilitates staying in closer contact with family and friends and 90% feel better informed because of the things they learn on the internet.
16% Convenient Users
The 16% of the sample that comprises the Convenient User segment is less engaged with the internet than the previously identified groups. They skew somewhat older and are less well educated than the rest of the sample. They’re also more traditional, favoring face-to-face relationships. Given extra time in their day, they are more likely to spend it with family and friends than those in the other segments.
29% Information Supplementers
The final and largest segment at 29% is the Information Supplementers. This group is somewhat older and less educated than the Convenient Users and the internet plays an even less significant role in their lives. In fact, if queried they might describe it as a “necessary evil.” But, they are engaged, and while their participation may be somewhat begrudging and limited to internet fundamentals, they are spending time online.
Segments don’t represent an instant solution.
While these brief descriptions begin to paint a picture of the users populating the internet and allow their similarities and differences to be recognized, it is unlikely that any given segment or segments represent a brand’s target. Each brand must align its attributes with user need and with that target profile set forth to understand the role the internet can play in creating engagement.
The role of technology continues to change.
New applications keep surfacing. Existing applications gain or lose momentum. Keeping abreast of these changes is among a marketer’s greatest challenges in this day and age.
Trone recently fielded a study of consumer technology use as a follow-up to research conducted in November, 2008. Among the many findings was the fact that as the technology matures, consumer behaviors are becoming more homogenous. That is not to say that everyone’s use is the same, but the behavioral gap is narrowing.
The “geek” factor is diminishing.
Historically, the heavy contributors, those driving much of the content on the web, have been distinguishable by their comfort with the technology. In this latest study, a noticeable shift in their level of social expressiveness was observed. In addition to increasing their engagement level in activities like reading blogs (20%), contributing to blogs (30%) and wikis (32%) and utilizing instant messaging (14%), this group demonstrated an inordinately high degree of adventurousness and social expressiveness.
They were twice as likely to describe themselves as extroverts than the sample at large and more than twice as likely to say they enjoyed being in the limelight. Their passion for life was evidenced by the fact that they were 73% more likely to say they enjoy an adrenaline rush and 56% more likely to agree with the statement “experiencing the unknown is my idea of an exciting adventure.”
Change is occurring at both ends of the spectrum.
At the other end of the technology engagement continuum is a more introverted group whose participation has traditionally been limited. It is not that they’re not dependent on technology, we all are. They, however, have historically participated on an as-needed basis.
This group’s behavior has also evolved. They are beginning to look and act more like the technological mainstream. Driving this homogenization is the adoption of various applications, most notably social networking. Among those 30 years of age and older, participation in a social network has grown 63% in just eight months. Concurrently, professional networking has increased 33%. Not surprisingly, however, we’ve also witnessed a decline in the frequency of network site visits as the application attracts less-committed participants.
Twitter℠ plays a unique role.
One might think that the appeal of Twitter and other new applications to those on the leading edge of technology adoption would prevent the observed homogenization from occurring. Twitter is clearly generating (and disseminating) more buzz than anything else right now. Where eight months ago it did not warrant its own category in the study, this time it did. It just isn’t generating the same traction as social networking.
One theory on why this is occurring is the historical precedents that have been established regarding our communication. Whether it was the letter carried cross-country by the Pony Express in the 1800s or the weekly call home from college in the 1980s, our non-essential communication has largely been a “highlight reel” of a period in our lives. Social networking allows us to disseminate the same type of information to a broader audience and with a greater level of detail.
If social networking is a “highlight reel,” Twitter is more like a “play-by-play” of our lives. It’s something we are unaccustomed to, which, in part, explains the limited adoption and participation. Does this mean Twitter has no role in brand communication? Absolutely not. Depending upon a brand’s audience and the nature of the message, more than a viable choice, Twitter may be the preferred alternative.
The challenge for marketers is to understand these changing audience dynamics and opportunities for brand interaction to sufficiently determine the most efficient media at any point in time.
TwitterSM is a trademark of Twitter, Inc.
Mom’s financial burdens are impacting her brand relationships, but not all of them.
As we have reported in the past, short-term economic influences are affecting moms’ behavior and their attitudes toward brands. A recent study of 1,638 moms on the opinions@trone panel was designed to confirm our prior learning and to gain incremental understanding of how these changes are being manifested.
The study confirmed that short-term economic issues are mom’s single greatest source of stress, surpassing even the anxieties associated with their hectic schedules and the pressure to get everything done. This is both a reasonable and understandable phenomena as 53% have experienced a decline in income of an immediate family member, resulting from either a layoff or a reduction in hours and/or wages.
Taking steps to cope.
The most common thing mothers are doing to deal with this financial pressure is making sure they aren’t “leaving money on the table.” Sixty-six percent report being much more cognizant of in-store offers and 58% are using more coupons. Beyond this they are displaying a surprising willingness to change brands.
Fifty-seven percent are frequently or very frequently shopping at less expensive stores while 54% are frequently or very frequently switching to less expensive brands in some categories.
The impact is being felt across the board.
Virtually every member of the family is experiencing this change to some degree. The same holds true for nearly all the product categories moms buy. The biggest change is occurring in packaged goods where more than two-thirds of moms have modified their behavior. In canned goods, for example, 14% report shopping at different stores for the same brands, 34% are buying less expensive brands at the same stores and 15% have changed both the stores they shop and the brands they buy.
Beyond consumables, moms are most likely to change the brands/outlets they shop for their children first, next themselves and finally dad and the family pet. Lest we think that moms have been driven to an as yet unseen degree of selfishness based on the economy, we need to bear in mind two things about purchases for children. First, their goods are short-lived and second, their needs are not easily deferred. Mom can delay purchasing that new outfit for herself, but if the children have outgrown their clothes, purchases must be made. And, where mom’s outfit might last years, the kids’ items might make it through a season.
Moms’ traditional unselfishness was demonstrated in another line of questioning. When asked about their willingness to change to less expensive sources for a gift for their child or clothing they’d wear to a special event, moms were 68% more likely to deny themselves.
Willingness to change has its limits.
While it’s not true for all, most moms have limits. There are some brands they just don’t want to give up—under any circumstances. So, as a part of the survey, we asked them on an unaided basis to name three brands that fell in that category. Considering the tens of thousands of brands that moms interact with, from Carter’s® to Coach®, Tampax® to Tiffany®, it is surprising that there is any consensus at all. But, there is. Of the 88% (12% are brand ambivalent) of the respondents who indicated one or more brands they would never want to give up, 20 brands were mentioned by greater that 1.5% of the sample. As the following brand preference cloud demonstrates, some were mentioned far more frequently than that. In fact, the leader (Kraft®) was mentioned by a remarkable 12.8% of respondents.
There are two stories to this data.
This grouping tells two important stories for marketers. It identifies, on the one hand, how strong a brand relationship can be and on the other just how fragile. Given the billions of dollars spent by the tens of thousands of brands with which moms interact, why did these 20 rise to the fore? Clearly, recency is an issue, but that does not explain the presence of Sony®, Levi’s® or Fisher-Price®. These brands share no common attribute or application. Some are mom’s brands, some are for the kids and some have application across the entire family. Some are consumables and some are durables. The only thing these brands have in common is the one thing that all marketers strive for: They have built a sustainable relationship with their customer.
Consumers have shed their dominant complacency.
Life poses many challenges, a large number of them outside our control. As a result, each of us finds ways to reduce the turmoil. We establish routines.
But, sometimes those circumstances beyond our control make us break our own conventions and look at things anew. We establish new attitudes and develop new behaviors to cope. When those new behaviors are acceptable, they become our new standard.
The state of our economy has forced behavioral changes on consumers from all socio-economic strata and, in turn, has created issues for marketers.
Utilizing our 100,000+ member consumer panel, Trone conducted a study among 3,186 adults regarding the U.S. economy. The study, a follow-up to similar research done in November, was fielded on President Obama’s 100th day in office. Many of the results, to say the least, were surprising.
Consumer’s general perceptions on the economy hasn’t changed.
On the key measures of the long-term effects of the economy, little has changed between November and now.
- The percentage of people who think it will take three or more years to return to our former levels of prosperity decreased from 64% to 61%.
- Those who anticipate depleting their savings or going further into debt in the coming year remains constant at 26%.
- Only a marginal shift from 52% to 53% was seen in the number of respondents who expect that they will have to defer their retirement a year or more.
In fact, overall concern about the economy has diminished significantly as 57% of the sample indicated they were extremely or very worried about the American economy, down from 68% just five and a half months ago. Somewhat surprisingly, given the decline in concern and the President’s high approval ratings, only 32% of the sample purported to be very or extremely confident that the administration was taking the right steps to stabilize the economy. Not at all surprising was this group’s split along partisan lines. Seventy-one percent of those with a high confidence level were Democrats while only 9% were Republicans. The remainder was made up of Independents (15%) and respondents who chose not to share their party affiliation.
Consumer behaviors have been much different than they projected five months ago.
The economy has affected people and they have taken even more drastic steps to protect their personal financial position than they anticipated they would in November.
Forty-seven percent of those surveyed reported that they or a member of their immediate family has seen their income directly impacted by the economic downturn. Twenty-three percent have experienced a layoff while another 18% and 24% respectively have been hit with a reduction in their salary or hourly wage or a reduction in hours.
In addition, 58% have seen one or more of these same phenomena effect friends or extended family members.
As a reaction, people are making drastic and potentially permanent behavioral changes. When asked in November about the likelihood that they would change brands to save money in key categories, 27% thought it likely in the products they buy for their children, 42% in the products they buy for themselves and 36% in their grocery brands. The realities were astonishingly different.
When asked in April if they had changed brands in those same categories, 63% admitted changing brands in products for their children, 75% in the products they buy for themselves and 76% in their grocery brands. In and of themselves these numbers are astounding, but they become even more remarkable when you appreciate how consumers feel about their brand “concessions.”
The brand changes are not viewed as “concessions” by many, and if they are, it is deemed an acceptable one given the cost benefit. Thirty-two percent of the respondents think they’ll stay with very many or most of the new brands they’re buying for their children. Similar sentiments were expressed for the new brands they are buying for themselves (31%) and at the grocery store (37%).
So, the question for marketers is not just how the economic conditions are impacting their brands today, but how they’ll be affected in the future. Are you taking the right steps to fortify your brand franchise and forge new customer relationships? Or, is your brand one of the many that will be negatively and permanently damaged by this new consumer mindset?
Moms. They control such a depth and breadth of spending that they remain an ever critical target for virtually all brands. But, they’re pulled in so many directions they can be extraordinarily difficult to reach and way too distracted when you do. The internet can help, but only if you appreciate both their mindset and behaviors.
That is one of the many things Trone attempted to accomplish through a study of online activity conducted among 2,656 consumers.
The study identified six basic segments of information technology users. Somewhat surprisingly, moms mirrored the general population along the primary criteria used to define the segments and fell into those segments proportionately. Fortunately, however, they displayed some unique attributes that provide marketers valuable direction in their pursuit.
The internet is the information highway, but moms are after a different type of information than other groups. The information they seek is about people-it is all about staying connected. Moms are 21% more likely than the rest of the adult population to be a member of an online social network. And, they use it. Of the 54% of moms that are in one or more social networks, 7% are on Facebook five or more times per day.
Their social network participation runs the gamut of available activities. Moms reported they “always” or “very frequently” did the following significantly more often than others.
- Connect with family: 34%
- Meet new people: 33%
- Update their profile: 30%
- Upload pictures: 35%
- Use entertainment applications: 40%
With no more, or even less, time available to be online what do moms sacrifice to make time for this connectivity? Primarily, it is research. Moms reported they “never” use the internet for the following types of research significantly more frequently than the rest of the population.
- Current events: 25%
- Historical events: 14%
- Health/fitness-related topics: 20%
- Products/services: 22%
The good news for marketers is that moms are more appreciative of the internet than others and more trusting of the content they find there. They were 19% more likely to agree or strongly agree that the information on company websites is very reliable and 62% more likely to trust the information they see in blogs.
Clearly, connecting a brand to moms is a difficult but critical task. Not only do their opinions impact their relationships with brands but, with all the contact they maintain, how are they shaping the attitudes and behaviors of others? What type of relationship does your brand have with moms? What are they saying about your brand and to whom?








