Reach, Attract, Capture and RetainPart 1 of this two-part Special Report focused on the current data and insights on consumers’ behaviors, perceptions and attitudes. Brands and retailers can’t develop, implement and manage strategies and tactics to “reach, attract, capture and retain” consumers until they understand how consumers think about the buying process and the path they choose for each unique purchase journey.

Some experts and analysts advocate a strategy that targets individual consumers rather than using demographics or personas, which is the approach of traditional advertising/media. They aren’t necessarily wrong; it’s just the reality of the marketplace doesn’t yet match a somewhat utopian approach to engaging with each consumer individually.

Research from Bazaarvoice, a company that provides advertising and personalization solutions, indicates “only 17% of marketers can see customer behavior beyond their own properties.” The reality is a vast majority of brands and retailers are unable to identify consumers as early in their purchase journey as they should to maximize the number with which they engage and attract.

Will brands and retailers ever flip the 17% to a much larger number? Only time will tell. Today, however, it is clear traditional media, such as TV, specifically, are still critical to reaching and attracting consumers. As Media Group Online continues to state in many of our reports, the combination, or complementary nature, of traditional TV and the digital channel is today’s best marketing tactic for brands and retailers, large and small.

Our aim in part 2 of this month’s Special Report is to provide some specific methods you can share with the local businesses, retailers and advertisers who are your prospects and clients to help and guide them to “reach, attract, capture and retain” the largest numbers of the right consumers.

Consumers 2018, Part 2 A Special Report from Media Group Online, Inc.

www.mediagrouponlineinc.com

Consumers 2018, Part 2 www.mediagrouponlineinc.com

Setting the StageAccording to some retail marketing experts, the ultimate goal is an integrated offline/online balance, or what some call “blended retail.” To achieve this, retailers must first address their in-store environment and customers’ experiences there. Four areas of improvement for the in-store experience include:

1. Retailers must generate more excitement for shoppers by changing displays of merchandise more often and basing them on themes, which then become the focus of in-store events and informative, attractive digital media content.

2. Develop and market unique connections of a store’s products and services to many consumers’ interest in wellness and healthy living.

3. Offer customers in-store educational or how-to opportunities to learn more about current merchandise, so they develop more trust the merchandise will solve a problem and/or improve their lives and they are more certain about their decision to make a purchase.

4. Improve consumers’ perceived value of the shopping experience with a shopping concierge or an online survey of their shopping/buying intentions before they visit a store, so the store can create a personalized, less time-consuming experience.

5 Steps to Make Advertising More Integrated

No doubt, many of your prospects and clients are among the approximately 88% who are doing the bare minimum (or worse) to achieve consumer personalization. There are steps they can take today, however, to begin the integration process leading to blended retail.

1. Strive for better message integration in both offline and online media and both. According to Kantar MilwardBrown data, just 46% of ad campaigns it measured were integrated – and “integrated campaigns are 31% more effective at building brands.”

2. Campaigns with a powerful central concept were found to make it easier to integrate offline and online channels; create a short, primary message; and be more disciplined in the implementation of the campaign.

3. Creating strong, compelling content for each campaign element can evoke the powerful emotional response and connection necessary to attract consumers.

4. Establish a clear reason for using any specific advertising channel. TV is known for its reach and increasing awareness, but the use of the digital channel can enhance TV’s reach.

5. Integrated campaigns are most effective, however. Customizing the message for each advertising channel placement will maximize overall campaign effectiveness.

Consumers 2018, Part 2 www.mediagrouponlineinc.com

By the Generation: Generation Z Love to Shop in StoresAlthough it may seem contradictory to utilize the demographic of age, or generation, to reveal the methods to reach, attract, capture and retain customers instead of focusing on how to engage with each individual, these compartmentalized insights are where retailers and advertisers must start today.

Generation Z members are generally anyone younger than 21, which includes middle- and high-school teens as well as the youngest college students.

From the 2017 surveys that serve as the basis of its Marketing to Gen Z report, Fluent, a people-based digital marketing and customer acquisition company, found Gen Z members’ three most-important values were self-sufficiency, cultural diversity and a work-life balance.

These values are reflected in the brand attributes they consider most important for making purchase decisions. In addition, Gen Z members consider the following brand attributes as being more important than Millennials.

Brand Attribute Gen Z Millennials

Brand has high quality products 36% 34%

Brand produces goods in USA 33% 20%

Brand has cheap prices 32% 23%

Brand has an online presence 30% 16%

Brand is active in the local community 29% 16%

Brand is green/ environmentally-conscious 28% 21%

Brand shares my core values 25% 16%

Fluent, 2018

It’s likely these attributes would be equally important among Gen Z members if the word “retailer” was substituted for “brand.” All of these attributes suggest how local retailers should create the in-store experience and their advertising campaigns/messages.

A 2018 IBM Institute for Business Value report in association with the National Retail Federation provides additional insights about how to engage with Generation Z. For example, 67% said they shop in a store “most of the time,” compared to 22%, using a Web browser; 13%, using an app; 5%, calling on the phone; and 3%, using interactive TV.

A set of data points from the IBM report also reveals ways in which retailers can appeal to Gen Z members.

Most-Important Shopping Experience Characteristics

Percent

Able to find what I want quickly 49%

Able to decide how and where to shop 44%

Access to the best deals 41%

Speedy shopping and checkout 36%

Choice of different payment methods 30%

High-quality customer service 28%

IBM Institute for Business Value/National Retail Federation, 2018

Clearly, these shopping experience characteristics suggest retailers should display merchandise for Gen Z members near the front entrance and provide sales associates with the technologies, such as tablets, to make the checkout and payment process easy and fast.

Consumers 2018, Part 2 www.mediagrouponlineinc.com

By the Generation: Millennials Want ExperiencesA point made in many Media Group Online reports bears repeating: each of these generations age from the time they were designated as an important consumer group. Today, most Millennials have completed a college education and are fully focused on their careers and marriage, becoming parents and buying a home if they so choose.

In-Store Tactics

• New families can’t avoid consumerism – The perception has been many Millennials prefer experiences over the accumulation of material goods. That may change as they start families and buy homes, but matching retail products and services to an experience is likely to resonate with Millennials for many years yet. For example, instead of a shoe store just selling a customer athletic shoes, obtain his or her contact information to text them information about local events or facilities where they can experience the value of the shoes he or she purchased.

• Promote bargain hunting – Results from a 2017 First Insight survey revealed more Millennials than Baby Boomers were shopping at multiple stores in search of bargains. This suggests a number of opportunities to attract more Millennials to brick-and-mortar stores.

First, stores can create a “bargain hunt” promotion that starts online, especially in the mobile channel, where many Millennials begin their research, which can then drive them to the store. Second, stores with complementary, but non-competitive, products could organize a Saturday “treasure hunt.” Promoting a group of products, at a special bundled price, requiring Millennial customers to visit each store to acquire the product and qualify for the special price.

Marketing/Advertising Tactics

• Word-of-mouth remains powerful – The oldest advertising “channel” resonates strongly with Millennials too; however, its optimal use requires a tech twist. Any store that wants to attract Millennials must aggressively promote their submission of reviews to the store’s Website as well as Yelp, Google Maps, etc. For even more value, reward Millennial customers who share their reviews directly with friends and family members via their social media pages.

• TV and direct mail: a killer combination – A Quad/Graphics survey found Millennials are more likely to read direct mail and advertising inserts from retailers than online ads and text messages. Who knew!? Retailers can use carefully selected TV programming to cross-promote their direct mail/advertising insert messages to maximize Millennial traffic.

Consumers 2018, Part 2 www.mediagrouponlineinc.com

By the Generation: Generation X Is Making the Middle Its OwnGeneration X is often overlooked in the excitement of attracting the “old” consumer dollars of Baby Boomers and the “new” consumer dollars of Millennials. There are certainly fewer members of Generation X than those younger and older, but many of them have reached the pinnacle of their careers. Because the Great Recession adversely affected many of them, they tend to be more cautious consumers than all other adults.

• The best price for quality products – According to research from Yes Lifecycle Marketing, price appears to be what influences Gen Xers’ shopping the most. This strongly suggests retailers should emphasize price for in-store displays, sales associate interactions and advertising messages in any channel. Gen Xers also prefer short, concise copy, which makes it easier to convey price comparisons.

Price Factors Gen X Average

Price as a driver of loyalty 55% 57%

Price as a driver of most recent purchase 85% 81%

Describe themselves as price-savvy shoppers 44% 44%

Describe themselves as a bargain gift-giver 36% 26%

Yes Lifecycle Marketing, March and September 2017

• Gen Xers love loyalty programs – Research from multiple sources strongly support the value of loyalty programs to capture and retain Gen X shoppers. They’re too busy with their careers, raising a family and maintaining a home to spend much time for brand and retail research and price comparisons.

A 2017 study from the International Council of Shopping Centers (ICSC) found Gen Xers are more loyal to most of the brands in the study compared to other generations.

• Gen Xers are email aficionados – Email was the dominant channel of digital communications for Gen Xers during their formative years and continues to be the best place to reach them with price, quality products and loyalty programs. According to data from Yes Lifecycle Marketing, Gen Xers made one or two purchases during the past three months because they received a marketing email.

Brand Loyalty All Respondents Millennials Gen Xers Baby Boomers

Food and beverage groceries 92% 90% 95% 94%

Household goods 86% 84% 88% 87%

Consumer electronics 85% 88% 88% 80%

Health and beauty products 84% 81% 86% 86%

Apparel and footwear 81% 81% 84% 78%

Building materials and hardware 64% 61% 70% 63%

Sporting goods, hobby/craft supplies and toys 61% 64% 74% 52%

Furniture/home furnishings 56% 62% 56% 50%

Tech.Co (International Council of Shopping Centers), August 2017

Number of Purchases Made During Last Three

Months Based on a Marketing Email Generation Z Millennials Gen Xers

Baby Boomers

No purchases 40% 17% 23% 38%

1–2 purchases 34% 35% 42% 37%

3–5 purchases 16% 28% 18% 16%

6–10 purchases 4% 10% 8% 1%

11+ purchases 4% 9% 5% 2%

Yes Lifecycle Marketing, March and September 2017

Consumers 2018, Part 2 www.mediagrouponlineinc.com

By the Generation: Baby Boomers Are Still “Booming”Millennials may have surpassed Baby Boomers as the largest generation, but Boomers are still responsible for 50% of all consumer spending. More of them are working beyond the traditional retirement age, more of them plan to remain in their homes and they are more active later during their lives than their parents.

• A good price and convenience will capture Baby Boomers – Similar to Gen Xers, price is the biggest driver of loyalty among Baby Boomers, but they also crave convenience even more.

Price FactorsBaby

BoomersAverage

Price as a driver of loyalty 62% 57%

Convenience as a driver of most recent purchase 36% 24%

Describe themselves as price-savvy shoppers 50% 44%

Describe themselves as a bargain gift-giver 33% 26%

Yes Lifecycle Marketing, March and September 2017

• Focus on research, trust and personalization – Boomers may not be the most digitally savvy generation, but they rely heavily on research to find the best price and quality products.

Boomers are much more likely to trust recommendations from their family members and friends, so retailers targeting Boomers should provide plenty of testimonials and reviews on their Websites and social media platforms.

Although personalization is often viewed as a marketing approach that is more attractive to younger generations, Boomers also like the one-on-one experience. This may be an opportunity for local retailers to market an “online and/or in-store personal shopping consultant” to Boomers to attract and retain more of them.

• Baby Boomers are still the TV Generation – The Boomer generation parallels the age of television and Boomers have maintained their loyalty to the tube, which makes it the primary medium for advertisers to reach them.

Heavy Exposure* to TV by Age Group

Percent Index

Adults 18–34 22.9% 76

Adults 35–49 23.1% 88

Adults 45–64 38.8% 112

Adults 50+ 54.1% 123

Based on The Media Audit’s February 2018 50-Market Rolling Aggregate Report *300+ minutes/day

• Boomers value the right technology – Voice-activated speakers, such as Amazon’s Echo, may be an advanced consumer technology, but Boomers clearly recognize their value, as Google research finds 37% of adults 50+ are already using them. For many, their greatest value is immediate access to information without the need to sit at a computer, laptop or tablet.

In addition, as Boomers age and become less mobile, they will likely find voice-activated speakers even more valuable, as a companion, a health-and-safety device and an easier method to find deals, sales and promotions.

Consumers 2018, Part 2 www.mediagrouponlineinc.com

Content, Customer Service and CouponsIn the survey for its report, The Art of Integration, Kantar MilwardBrown found respondents had a more positive receptiveness to traditional media than digital channels. The report concluded this counterintuitive perception may be because ads on digital media disrupt people’s interaction more than traditional media.

Advertising FormatPercent with

Positive Receptiveness

Cinema 49%

Outdoor 46%

TV 44%

Magazine 44%

Newspaper 43%

Radio 39%

Online search 27%

Online display (PC or laptop) 25%

Video (PC or laptop) 25%

Video (phone or tablet) 25%

Online display (phone or tablet) 24%

Marketing Charts (Kantar MilwardBrown), February 2018

Customer service is another channel in which brands and retailers can maximize the attraction and retention of customers – if they understand customers’ preferred methods. A March 2017 survey from The eMarketer Ecommerce Insights Report found phone was the preferred channel among all Internet users, and Baby Boomers and other seniors, specifically.

For many of the generations cited in this report, deals, bargains and special offers are excellent advertising tactics to capture their attention and motivate them to return for more of the same. The same eMarketer report reveals the strength of discounts/coupons to drive consumers’ digital purchase decisions.

Preferred Customer Service Channel

Adults 18–29

Adults 30–39

Adults 40–49

Adults 50–59

Adults 60+

Total

Phone 23.1% 23.0% 25.3% 35.4% 40.0% 31.9%

Live chat 36.5% 37.5% 34.7% 31.0% 23.4% 30.7%

Email 31.7% 27.0% 33.2% 27.1% 28.6% 29.1%

Website inquiry 4.8% 7.5% 4.7% 5.2% 6.5% 6.0%

Social media 2.9% 3.5% 1.1% 0.4% 0.3% 1.3%

Other 1.0% 1.5% 1.1% 0.9% 1.3% 1.2%

Emarketer, March 2018

Importance of Discounts/Coupons

Adults 18–29

Adults 30–39

Adults 40–49

Adults 50–59

Adults 60+

Total

Very important 53.8% 52.5% 48.4% 48.9% 34.3% 44.9%

Somewhat important 17.3% 21.0% 15.3% 19.7% 24.4% 20.6%

Important 27.9% 22.0% 32.1% 26.2% 30.4% 28.1%

Not very important 1.0% 3.0% 3.7% 3.9% 8.8% 5.1%

Not at all important 0.0% 1.5% 0.5% 1.3% 2.1% 1.4%

Emarketer, March 2018

Consumers 2018, Part 2 www.mediagrouponlineinc.com

A Win-Win in the Digital ChannelLocal TV stations are in an advantageous position compared to other local media outlets to help local retailers and advertisers maximize their successful and cost-effective use of the digital channel.

1. Support for do-it-yourself digital advertisers – A 2017 BIA/Kelsey report stated 48.2% of small business owners prefer to create and manage their digital advertising compared to less than half, or 22.5%, who prefer to contract with an agency for digital advertising services.

This creates an excellent opportunity for you, as a TV account executive, to offer you and your station’s digital advertising expertise to assist, guide and support SMBs’ DIY efforts.

2. You are the local video production experts – As video continues to become the primary digital advertising content that consumers/shoppers prefer, you have the opportunity to provide local retailers/advertisers with a video production package.

When an advertiser relies on you to produce a TV commercial, suggest shooting additional video for online use as well as editing the TV commercial footage into shorter versions, such as 10-second messages, which, again, seem to resonate better with online audiences than simply posting the same commercial that aired on your station.

3. Local TV Websites are a primary source of online news content – Not only can you help local advertisers with their DIY digital advertising efforts and provide them with the best local video production capabilities, but also offer them an effective presence on your TV news Website.

According to Knight Foundation’s 2018 Local TV News and the New Media Landscape: Part 1 report of 22 large and 37 smaller markets, TV and newspapers are the primary sources of online news content – and TV specifically in smaller markets.

Median Daily News Website Visitors

Large Markets

Smaller Markets

TV 40.6% 44.7%

Public radio/TV 1% 2.5%

Commercial radio 0.4% 0.1%

Newspaper 53.9% 38.4%

Online only 1% 0%

Knight Foundation, March 2018

4. TV stations are dominating social media – As your and other TV stations across the country increase their presence on social media, the Knight Foundation research found TV offers local advertisers the largest access to audiences via the TV stations’ social media platforms. Local TV news’ enormous amount of video content is the difference maker, as that is the format most social media users prefer to view.

Sources: Yes Lifecycle Marketing Website, 4/18; MediaVillage Website, 4/18; Kantar MilwardBrown Website, 4/18; Bazaarvoice Website, 4/18; Fluent Website, 4/18; National Retail Federation Website, 4/18; CBNC Website, 4/18; TotalRetail Website, 4/18; Global Web Index Website, 4/18; MediaPost Website, 4/18; Tech.Co Website, 4/18; GeoMarketing Website, 4/18; Think with Google Website, 4/18; Marketing Charts Website, 4/18; eMarketer Retail Website, 4/18; BIA/Kelsey Website, 4/18; Knight Foundation Website, 4/18.

Prepared: April 2018

© 2018 Media Group Online, Inc. All rights reserved.

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