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InsightsIn 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.
I went to lunch at a new pizza place the other day with a coworker. I was happily perusing the new menu when I was overwhelmed by excessive use of the ™ symbol. It was on pepperoni™ pizza. It was on the word margarita™. It was even on the word dessert™. What did they think they were protecting? It was not a logo, company name, new phrase or even a corporate typeface. They certainly did not invent the idea of pepperoni pizza. But there it was, on every mention. It’s true, being in this business makes me notice things like that a little more than other people, but the trademark did a lot more than just stand out to me. It cluttered up the design of the menu and signage in the place. I was less focused on what they were trying to communicate to me and more focused on the trademarks. It instantly changed my perception of the brand.
You may ask what does trademarking have to do with how well they make a pizza? Maybe nothing, but like the paintings on the walls and the music playing in the kitchen, it does contribute to my overall feeling of the place. Could I have overlooked this annoyance if the pizza was amazing? Probably. But the fact is that the pizza was average and overall disappointment is the feeling that now comes to mind when I think of the place. And unlike other average pizza places that have kept me coming back time and time again for a quick bite, I don’t think I will be revisiting this one.
There is a legitimate need for trademarks and I use them in lots of things that I write. Just remember, they should be used sparingly and never in a way that takes the attention™ away from™ the real message™ you are trying™ to communicate.™
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?
It’s official. “Insight” has become a full-fledged corporate buzzword. Companies have assembled insight factories and insight incubators. They have appointed Directors of Customer Insight and Chief Insight Officers. There is even a magazine titled “Consumer Insight.”
So, what is an insight? And how do you spot one?
For starters, something can be insightful, but not necessarily be an insight. For instance, the fact that 6 out of 10 moms are concerned that their children are growing up too fast may be an insightful fact, but it’s hardly an insight. An insight is more than a data point or consumer quote. At a minimum, it’s the boiled down synthesis of your observations.
So, using our mom example, if we probed deeper about why moms are concerned that their children are growing up too fast here’s what we would learn. We’d find out that moms believe that letting children wear inappropriate clothing is just as bad a letting them use the internet without controls. And we’d also learn that more than half of moms have been outraged or embarrassed by the clothing they’ve seen on children 8 years old or younger. Upon scanning several mom blogs we would learn that there is a very vocal segment of moms who are angry at how celebrity fashion has made its way from the runways to the hallways. Ultimately we could connect the dots that a significant segment of moms have reached a tipping point and have an unmet need – a brand of clothing that is wholesome, yet stylish, and hasn’t sold out to “trickle-down skankonomics.”
Did we arrive at an insight? Here’s a simple definition I like to use:
An inspiring, fresh perspective on your customer that can be acted upon for competitive advantage.
And here are five questions I like to use to test the merits of an insight:
1) Is it substantiated or just a hunch? – Beware of the difference between instinct and insight. Insights should be rooted in a deep understanding of people, not merely what you think.
2) Is it a unique or fresh perspective? – Are people saying “I never looked at it that way?”
3) Does it provide clarity? – Do you feel like you just put eye glasses on and can see clearly for the first time?
4) Does it inspire? – Does it spark ideas? Can you write a compelling story from the insight?
5) Can you act on it? – Does it solve a problem or provide direction?
Moms modify purchasing behavior more than any other customer group.
The economy. It’s become a daily reason for not buying, not going, not doing and not splurging. And it’s affecting everyone. But no one quite so much as Mom.
Trone recently polled 1,140 mothers with children still at home to find out how the waning economy was impacting their lives and routines. We then compared their answers to those of the 2,181 other respondents and noted some clear distinctions.
Stress levels are up.
It’s not extremely surprising. But it is disturbing. Our panel of moms indicated many more sources of stress than other respondents. They’re frustrated that there’s never enough time to get everything done. They’re concerned about their relationships with their spouses. And most importantly, they’re worried about how the current economy will affect their families and their children. Moms were actually 26% more likely than other participants to say that the long-term implications of the economy are contributing to their stress level. The difference jumped to 29% when asked about short-term financial issues.
Spending is down.
Moms are doing everything they can to plan for their family’s financial future—including reducing spending on everything from health and beauty aids to home furnishings. They’re spending less on the things they need and deferring purchases of the things they want until a later date.
Across the board, moms are being more aggressive than other segments of the population to pursue savings opportunities. Coupons are becoming more important and family entertainment and vacation allowances are being cut.
Even the woes of the automobile industry are partially attributable to the recent behaviors of families with children at home. Moms are 25% more likely than others to defer a planned automobile purchase this year. And, among those that must buy, most are more likely to purchase a smaller or used car to save money.
Brand relationships are at risk.
Here’s the big one. Moms’ economy-driven behaviors are affecting brand loyalty.
In all packaged goods categories, moms are more willing than others to switch both product and retail brands to lower expenses. Take groceries for example: Among moms looking to reduce spending on groceries, 66% are very or extremely likely to shop at less expensive outlets and 77% will switch to less expensive brands.
The effects don’t stop at packaged goods either. While moms will obviously do their best to protect their children from feeling the impacts of the economy, the same can’t be said for themselves or the family pet. Fifty percent of moms plan to reduce spending on themselves this year by shopping at less expensive outlets (78%) and switching to less expensive brands (73%). Similarly, over 75% of moms that are interested in saving on pet expenses plan to try different retailers or seek cheaper brands.
Brand communications must adapt.
Two things are obvious.
- The economy has changed Mom’s spending behavior.
- Brands must address this new Mom differently.
The tactics that have been used to reach and speak to moms in the past are obsolete. Every message that a brand puts out into the world must now pass through a financial filter. Do I need it? Do I want it? Is it worth it?
In the future, manufacturers and retailers alike will need to consider this financial filter and stay in touch with their customers’ changing needs. Constantly evolving will be the key to keeping their brands relevant in these trying times.
The Council of PR Firms’ weekly publication – The Firm Voice – spotlights Trone and how we leverage insights to connect with clients and prospective agency partners. Click here to see Will Spivey’s comments.
Technology is changing faster than people can grasp. You almost cannot go a day without hearing about online destinations such as Facebook, MySpace or Twitter or hearing about mobile devices and the 3G network. Seemingly, it’s all too easy for older generations to say, “Oh, that’s for the young people.” But actually technology adaptation and someone’s online behavior have very little to do with age.
Trone, Inc. recently (December 2008) conducted a nationwide survey of over 2,600 consumers about their attitudes and behaviors regarding internet usage, social media and mobile devices. Trone also wanted to understand people’s likelihood of actively participating on emerging Web 2.0 platforms and whether or not they were contributors or consumers of information posted on blogs, wikis, social bookmarking and networking.
Through the research, Trone identified six segments of users online. Surprising to some, the segments are fairly independent demographic characteristics of age, children at home, ethnicity, education and income level and more identifiable by behaviors and interactions with technology. The segments are defined as:
- Social Expressionists (18%)
- Technological Drivers (10%)
- Savvy Users (15%)
- Convenient Users (18%)
- Information Supplementers (20%)
- Technological Minimalists (19%)
The most notable insight out of the segmentation is that online behaviors parallel an individual’s offline world. For instance, the Social Expressionists were identified through psychographic data as the most extroverted segment. 50% of this group was a member of one or more social networks that they visit multiple times a week. The prime reason this group uses technology is to connect and maintain their social life through activities such as texting, email, social networking and photo sharing.
Social Expressionists are a contrast to the Technological Drivers, who are the most active online, especially with emerging technologies. Offline, Technological Drivers have a general thirst for new information and the exchange of information. Web 2.0-friendly properties allow this to happen on a grander scale. This segment helps create conversation and dialogue online through blogs, wikis, bookmarking, virtual communities and message boards. They also have a greater likelihood to establish and maintain relationships with individuals solely online.
As we move into 2009 and further into the digital age, marketers must become even more diligent at evolving their traditional segments as media becomes even more fragmented. The industry must also accept that we can no longer define our target as one generalization, but rather micro-targets that shape our messaging, media spend and tactics to create brand connections.
