Brand Connected Consumer Research

BRAND CONNECTED BRAND CONNECTED CONSUMERSResearch FindingsResearch Findings

Table of Contents

• ObjectiveObjective

• Methodology

• Expo Panel Note

• Executive Summary

• Who are Brand Connected Consumers?

• What are Brand Connected Consumers doing online?

• Why should I care about the Brand Connected Consumer?

• How can I engage with Brand Connected Consumers?

• Summary

A di• Appendix

Objective

Economics have evolved! Shopping has circumvented brick and mortar. The stage is global, the medium is digital!”While we all understand the general importance of digital communication, what we don’t know is:

• When consumers connect

• Why consumers seek and provide brand information

• How impactful online engagements can be on consumer behaviorbehavior

We set out to determine just that.

Methodology

By surveying populations of both engaged consumers and members of the general population, we hoped to provide clear insights on when, where and why consumers engage with brands in order to determine just how impactful those connections are and how valuable brand connected consumers can be.connections are and how valuable brand connected consumers can be.

Our study incorporated both quantitative & qualitative methodologies:

Quantitative: Online survey, 20 mins. in length. Fielded U.S. respondents from y, g p(2) separate panels

• EXPO sample: n= 699

• Gen pop sample: n=300• Gen. pop. sample: n=300

Qualitative: (3) Online video focus groups, 1 hour in length. Fielded respondents from EXPO panel

EXPO Panel

We found that respondents from the EXPO panel differed significantly from members of the general population. Generally speaking, they reported stronger digital attitudes compared to gen. pop. and were more likely to post information after using a product. Therefore, we analyzed the data using (4) segments:

• Brand Connected Consumers: • Hyper BCCs– Members of the EXPO panel (n=346)• BCCs– Members of the Gen. Pop. panel (n=84)

• Brand Aware: • Hyper Brand Aware– Members of the EXPO panel (n= 302)• Brand Aware– Members of the Gen. Pop. Panel (n=184)

**Note: For this study, we support general insights using gen. pop. data in order to ensure the generalizability of the study’s findings. However, we do illustrate important findings based on EXPO data in various locations”**Sample Caveat: Duplicate submissions, error-filled submissions, and non-connected consumers were removed from the analysis, which accounts for the 51 removed EXPO respondents and the 32 removed Gen. Pop. Respondents**y , p p p

Executive SummaryOur study finds that 80% of shoppers are digitally engaged with brands in some wayOur study finds that 80% of shoppers are digitally engaged with brands in some way, whether just searching for brand information or posting about their experiences with brands. However, some consumers, termed ‘Brand Connected Consumers’ (BCCs), are more connected than others, and can have a great impact on the public opinion and the potential sales of a brand.

BCCs post to and about brands frequently (at least once per week) filling cyber-space with their experiences and opinions of brands and products with the main goal of helping others make good purchase decisions. Coincidentally, we find that the places BCCs are providing information are the exact places where other consumers are

hi f it ki th BCC i fl ti l llsearching for it, making these BCCs very influential overall.

We also discover the impact of online interactions with brands. When consumers reach out to brands, the brand’s response (or lack thereof) can have serious ramifications on the consumer’s buying behavior. Responding in a less than satisfactory way can result in losing a customer, while simply acknowledging a customer’s comment can lead to new customers or increased business with existing customers. Moreover, the more satisfied a consumer is with a brand interaction, the more likely they are to post about the brand and recommend that brand to friends and family. Bottom line, brand interactions can impact buyer behavior.

The more engaged the consumer is and the more frequently they communicate, the more valuable they are to brands. Brand Connected Consumers are passionate about brand engagement and they should be leveraged as a resource by brands. By satisfying the BCCs’ need for acknowledgement, the brand can instantly generate y g g , y gpositive buying behavior, PR and word of mouth marketing.

6

WHO AREWHO AREBRAND CONNECTED CONSUMERS?

7

Most consumers digitally engage with brands in some way; however some consumers engagesome way; however, some consumers engage more than others

80% of consumers perform at least (1)

Within the 80% segment, there are varying degrees of digital engagement, with the most important

25% BCC

p ( )of the following (3) activities at least once per month• Posting messages

about brands

and influential group being Brand Connected Consumers• 100% of these BCCs post both to and

about brands at least once per week.

55% Brand Aware

anywhere online (e.g. – on blogs, websites, etc.)

• Looking for information like messages videos or 55% Brand Awaremessages, videos or pictures about brands online (e.g. –on blogs, brand websites, YouTube, etc.)

• Posting messages

20% Not Connected

• Posting messages directed at brands on social networks (e.g. – On Facebook, Twitter, etc.)

Demographically, Brand ConnectedDemographically, Brand Connected Consumers are young, educated and part of a traditional family• More likely to be female• Younger than other consumers

o Nearly 6 in 10 are between 18 and 34 years old• Are completely responsible for their household’s weekly grocery• Are completely responsible for their household s weekly grocery

shopping• She’s employed• Has an average Household Income• Is educated

o 6 in 10 have at least some college experience• Lives in a family household

o More than half have 3+ people in householdo Tend to have 1 or 2 kids in their household

BCC d ith b d dBCCs are very engaged with brands and shopping

They shop, seek information and post information more frequently than others across retailers and categories because:

Th i t• They are innovators• They always know about the latest technology and products • They are far more likely to search for and trust the information

online, both from consumers and brands,

• They are informants• They are far more likely to share information with others online;

an activity they very much enjoyan activity they very much enjoy• They are regularly approached to share their advice and

experiences with products

Th t ll ti th h t th th tThey engage at all times throughout the path-to-purchase

BCCs• BCCs look for information and post to

and about brands both before and after they have purchased a product

Before they buy a product

BCCs

64%• Interestingly, 8 in 10 BCCs engage with

brands in their free time, even when they are not in shopper mode because of their innovator and informant statusAfter

th ’ innovator and informant statusthey’ve used a product

43%

In their free time/ just for fun!

79%

Data Shown: % engaging in at least (1) brand-connecting activity

WHAT AREWHAT AREBRAND CONNECTED CONSUMERS DOING ONLINE?

12

BCC diff t i l di b itBCCs use many different social media websites, and are using them more frequently than others

How frequently do you use each of the following social media sites?following social media sites?

BCC vs. Brand Aware

11%10%

5%

80%

90%

100%

80%17%

20% 8%

14%

6%

19%

10%8%

40%

50%

60%

70%

23%37%

13%

51% 58%

80%

4%

14%

5%

22%

4%5%10%

20%

30%

40%

3% 5%13%4%

0%

Brand Aware

BCC Brand Aware

BCC Brand Aware

BCC Brand Aware

BCC

Pinterest Twitter YouTube Facebook

Every day A few days each week Once a week

Regardless of the occasion, or even the category they are shopping for, BCCs are looking forthey are shopping for, BCCs are looking for information in a variety of places

For Special Events For Big Ticket Purchases For Everyday Purchases

Family / Friends (50%) Family / Friends (47%) Family / Friends (60%)

Online Retailers (42%) Brand Websites (39%) Retailer Websites (50%)

**Note: Hyper BCCs are far more likely to use resources for both big ticket and everyday purchases compared to gen. pop. BCCs

Retailer Websites (40%) Online Retailers (37%) TV (46%)

BCC fill b ith t fBCCs fill cyber-space with many types of information

How frequently do you use each of the following activities online?

31%

38%

47%

19%

21%

15%

8%

7%

12%

Post videos about brands anywhere online

Post pictures about brands anywhere online

Post text messages about products or services anywhere online

And they share this information (predominantly their ‘good experiences’) in a

0% 10% 20% 30% 40% 50% 60% 70% 80%

Every day A few days each week Once a week

And they share this information (predominantly their good experiences ) in a great many places, including on:

• Facebook (87%)• Retailer websites (85%)• Online retailers (e.g. – Amazon.com) (80%)Online retailers (e.g. Amazon.com) (80%)• Brand websites (74%)• Blogs (63%)• Review sites (63%)• YouTube (57%)ou ube (5 %)• Twitter (55%)

WHY SHOULD I CARE ABOUT WHY SHOULD I CARE ABOUT BRAND CONNECTED CONSUMERS?

16

BCCs are important because they are influential

They provide the information that all consumers seek• BCCs frequently inject their opinions of brands into the cyber-sphere

• 8 in 10 BCCs post messages both about and directly to brands at least a few times a week

• As the majority of consumers feel it’s important to hear about the j y pexperiences of others before they buy a product, other consumers are likely to be looking for information that the BCC is providing

• 7 in 10 consumers agree that it’s important to hear about the experiences of others before making a purchaseexperiences of others before making a purchase

• More than half of other consumers look for brand information at least once a month

Their attitudes towards brand interactions can significantly impactTheir attitudes towards brand interactions can significantly impact purchase intent• Dissatisfactory responses can result in lost sales opportunities while

satisfactory responses can result in increased sales opportunities

All consumers want information to find “the truth,” lit d di i d BCCgauge quality and discover savings, and BCCs

enjoy providing information to educate others

“To help others.”

“S th l k d i i

“I want people to be informed.”“To save time and money

while finding the best quality product to suit my needs.”

“So other people can make a decision based on my (and others) experiences.”

“I think people want to know.”

“To see reviews and see what how companies are

responding/customer service.”

“The information among customers is less biased.”

“To show my appreciation.”service.

“To see others experiences before I buy.”

“Why do you search for brand information?” “Why do you post

information about b d ?”brands?”

C l ki f i f ti hConsumers are looking for information where BCCs are providing it

Where BCCs provide information

The quality of a brand’s response can have aThe quality of a brand s response can have a major impact on the consumer’s purchase behavior• 1 in 4 times a consumer is less than satisfied with an online brand• 1 in 4 times a consumer is less than satisfied with an online brand

exchange, they completely stop buying products or services from the brand

• When consumers are satisfied with an exchange they have with a brand 4 in• When consumers are satisfied with an exchange they have with a brand, 4 in 10 report purchasing significantly more of the brand’s products or services, and 2 in 10 will buy the brand’s offerings for the very first time

• Further satisfied consumers are significantly more likely to recommendFurther, satisfied consumers are significantly more likely to recommend to others that buy the brand’s products or services

“Wh !”“Whoa!”

Th b d’ t ti tThe brand’s response to negative posts can have an even bigger impact

When brands fail to respond to negative posts it will most likely result in lost sales:

70%30%

no effect

70%stop buying

from the brandfrom the brand**Note: 56% of the time a consumer posts a comment because they are unsatisfied, they receive no brand response**response

HOW CAN I ENGAGE WITH BRAND CONNECTED CONSUMERS?

22

First, you must look for them where they are posting informationposting information

Remember, BCCs post to a variety of places, but Facebook dominates

T l i iTo post personal opinions:

To post questions:To post questions:

**Note: Qual suggests consumers know when to give feedback and when it won’t be worth their while, based on the quality of the page**

Then you must provide good customer service and quickly respond to BCCs’ posts in order toand quickly respond to BCCs posts in order to avoid lost customers• Even though 6 in 10 consumers that send messages directly to brands say

it’s because they’re satisfied it’s still important to consumers that they’reit s because they re satisfied, it s still important to consumers that they re acknowledged by the brand in various locations:

• On the brand’s social network pages (80% feel it’s important that their feedback is acknowledged)

• On their personal social network pages (70%)

• On review sites (75%)

• And they’re confident that brands both see and value their posts in each of those l tilocations:

Resource % that are confident brands see their posts in each location

% that are confident brands valueinformation they provide in each location

Brand social network pages 83% 87%

Personal social network pages

73% 79%

Review sites 79% 80%Review sites 79% 80%

A k l d i BCC ’ i i th thi kAcknowledging BCCs’ is easier than you think, a simple “Thank You” often does the trick

“How would you have liked the brand to have responded to your post?”… “I would love for them to

make me feel important”“Just saying they appreciate my business”appreciate my business

“Simply liking my post would make me happy” “Thank me for my comment”

“With a nice reply or comment”

• BCCs want to feel that the brand cares about them. “Thank Yous” and personalized messages are appreciated

• They are dissatisfied by standardized messages and simple contact information

• Respondents less than satisfied by a brand’s response were nearly 3 times more likely to have received contact information for the consumer to reach back out tolikely to have received contact information for the consumer to reach back out to the brand compared to consumers that were satisfied (33% -> 13%)

IMPLICATIONSIMPLICATIONSAND FINAL TAKE-AWAYS

26

C l iConclusionsBCCs are extremely important

Each digital connection is an opportunity to grow the brand

• All consumers want and need brand information, and BCCs are often the source of that information

• BCCs attitudes towards brand interactionsBCCs attitudes towards brand interactions can significantly impact purchase intent of both themselves and others

• Ultimately BCCs act as brandUltimately, BCCs act as brand journalists…

…And what they publish depends onTHE BRANDTHE BRAND

APPENDIX

How frequently do you shop at each of the following retailers?

Shopping Behavior

56%64%

83%

W l

Walmart

How frequently do you shop at each of the following retailers? At least a few times a month % shown

8%

14%

26%

60%

62%

64%

Family Dollar

Dollar General

Walgreens

27%

47%

8%

47%

49%

55%

CVS

Target

10%

26%

45%

30%

33%

47%

Costco

Kroger

Amazon.com

BCC

9%

9%

10%

25%

29%

Safeway

Sam's Club

Costco

Brand Aware

0% 20% 40% 60% 80% 100%

BCCs seek information to a greater degree

How frequently do you search for information about each of the following brands?

At least once a eek % sho n

BCCs seek information to a greater degree than Brand Aware consumers

79%74%

70%

80%

90%

BCC

At least once a week % shown

56%53%

51% 49%

36%40% 40%

50%

60%

36% 35%31% 29%

23%27%

21%19%

20%

30%

40%

Brand Aware

6%9%

6%10%

0%

10%

Stores Grocery / h h ld

Electronics b d

Restaurants Service id

Apparel b d

Baby / kid b d

Home li

Luxury b d

Car brands household products

brands providers brands brands appliances brands

BCCs also post information to a greater degree than Brand Aware consumers

60%

How frequently do you post information about each of the following brands?

At least once a week % shown

degree than Brand Aware consumers

55%52% 51% 49% 48% 48%

40%

50%

60%

BCC40%

38% 38%

30%30%

40%

13% 15% 14%11% 10%

20%Brand Aware

11% 10% 8%

4%

9%7% 7%

0%

10%

Stores Grocery / household products

Restaurants Service providers

Apparel brands

Electronics brands

Home appliances

Luxury brands Baby / kid brands

Car brands

Special Events (Holidays, Birthdays, etc.) deep dive

%F il /f i d

% of shoppers that use each resource to get product information for special event purchases

38%

40%

42%

50%

Brand Websites

Retailer Websites

Online Retailers

Family/friends

30%

32%

37%

38%

Magazines

TV

Facebook

a d ebs tes

Family & friends are the go-to for

24%

26%

27%

Discussion boards or forums

Blogs

NewspapersFamily & friends are the go to for advice on special event purchases. However more than 1/3rd of consumers also report engaging with retailer websites brand websites and

15%

17%

19%

24%

Pinterest

Twitter

YouTube

Review Siteswebsites, brand websites and Facebook, which are all locations filled with information provided by BCCs

15%

0% 10% 20% 30% 40% 50% 60%

Pinterest

EXPO ANALYSISEXPO ANALYSISWHY EXPO MEMBERS ARE MORE VALUABLE

33

EXPO Panelists tend to mirror the relationships of the general population

BCCsEXPO BCCsEXPO Brand

AwareBrand Aware

Before they buy a product 64%80%

Aware

82%

Aware

74%

After they’ve

43%79% 52%used a product

43%79% 76% 52%


79%85% 65% 52%


However, overall, EXPO members are more likely to post both to and about brands compared to the general population

BCCsEXPO EXPO Brand Brand

Before they buy a product

BCCsBCCs Aware Aware

Post to Brands

Post about Brands

21%

25%

33%

23%

37%

33%

55%

45%

After

pLook for Brand info

Post to Brands

73%80%57%77%

55%68%42%71%they’ve used a product

Post to Brands

Post about Brands

Look for Brand info

55%

56%

11%

68%

71%

22%

42%

33%

23%

71%

73%

42%


Post to Brands

Post about Brands

Look for Brand info

38%

33%

38%

48%

51%

44%

68%

67%

61%

72%

74%

71%


The Value Equation

• When a consumer chooses to engage a brand, the feedback (or lack thereof) can have a tremendous impact on their behavior

• Satisfaction with a response can create trial / increased purchases

• Dissatisfaction with response / ignoring negative feedback can end the consumer-brand relationship

• When consumers are satisfied with the brand’s response, it i th lik lih d th t th ill d th b d’increases the likelihood that they will recommend the brand’s products or services to others

• EXPO members are posting to and about brands more frequently than even gen pop BCCs which means there is a greaterthan even gen pop BCCs, which means there is a greater opportunity for brands to connect, satisfy and encourage these consumers to communicate their experiences across cyber-space

Documents

Brand Connected Consumer Research