SuperValu Twitter Demographics

NWA Social Media ClubCollin Condray (@ccondray)

5/28/2009

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Who is SuperValu?

• 4th largest grocery retailer in the US• SuperValu has 11 semi-independent banners

Updated April 2009Maps are a geographic representation at the time of development and may not reflect recent changes. Please refer to the market profile for county listings.

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Overview

• What is the potential reach of Twitter at SuperValu? Can enough customers be reached using this service?– What do we know about the Twitter user? Are there

enough in our operating area to matter?– What resources do we have in the Customer Insights

group that can target those users at SuperValu?– Can we quantify what effect Twitter would have?

• What can we use Twitter for at SuperValu and how does it further our business goals?

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Who’s Using Twitter?

• Pew Research has recently studied which online Americans are using Twitter– Twitter is growing steadily

• 11% of online Americans use Twitter as of December 2008

• Up from 9% from November 2008• Up from 6% from May 2008 for all microblogging

services including Twitter

– Twitter users are more likely to be active in other online social networks (e.g. Blogs, Facebook, MySpace)

• 23% of social network users have used Twitter• 27% of bloggers use Twitter vs. 10% of non bloggers

– Twitter adds another channel of communications for content producers

Source: http://pewresearch.org/pubs/1117/twitter-tweet-users-demographics

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Who’s Using Twitter?

– Of Online Americans:• By age

– 18 to 24: 19%– 25 to 34: 20%– 35 to 44: 10%– 45 to 54: 5%

• Income– Income less than $30,000– Income greater than $100,000

• Location– Urban dwellers

Source: http://pewresearch.org/pubs/1117/twitter-tweet-users-demographics

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What is the Nielsen Homescan Panel?

• A group of households selected to be demographically and geographically representative of the U.S.

• continually providing information about their purchases

• from all outlets using in-home scanners, to tell us:

– who buys– what they buy– when they buy it– where they buy it

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Nielsen Terminology

• Indexes are a measure of how well a demographic compares to the national average.– Below 100 is a low correlation– 100 is average. This demographic purchases

the category at the same rate as the Total US.– 100-120 is a good match– 121+ is a very high match

• Item $ Per Item Buyer– Dollar / Item Buyers– The average annual dollars spent on this category per buyer.

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Who’s Twittering in your Neighboorhood?

Twellohood on Twellow.com

Source: Twellohood twellow.com as of 5/28/2009

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How Twellow Works

• How did Twellow get my data?• Twellow takes advantage of the freely-available public data feeds

that come from the Twitter service. If your updates are not set to protected, then your messages sent via Twitter will be included in these feeds. Twellow then captures the data, parses it for matches within our categories, and enters your information into our system.

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Self Identified Twitter Users In SuperValu’s Banners

• Acme– Philadelphia-11,000 (Pennsylvania-27,427)

• Jewel– Chicago-28,611 (Illinois-38,223)

• Shaw's– Boston-15,513 (Massachusetts-24,814)

• Albertsons Southern California– Los Angeles-12,966 (California-103,475)– San Diego-12,649

• Albertsons Intermountain West– Salt Lake City-2,876 (Utah-5,305)– Seattle-15,855 (Washington-26,857)– Portland-8,798 (Oregon-13,761)

• Cub Foods– Minneapolis-7,189 (Minnesota-11,380)

• Local Reference– Little Rock-943 (Arkansas-3,345)– Fayetteville-470– Springdale-73

Source: Twellohood twellow.com as of 5/28/2009

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Putting It All Together

• We know:– How close the banner’s operating

area matches the Twitter demographic and which banners are better matches and should be targeted first.

• Age (under 35)• Income (< $30k, >$100 k)• Region (Urban Dwellers)

– How many Twitter users are in each of the banner’s operating area.

– How much the average customer spends on a category annually.

• We can now estimate how much additional sales can be generated by converting Twitter users to SuperValu shoppers.

Cub

Category X Minneapolis

Twitter Users Per City 7,189Twitter Users Per State 11,380Twitter Users Per Banner 7,189Item $ Per Item Buyer $21.63INC - <$20,000 90INC - $20,000-29,999 112INC - $70,000-99,999 92INC - $100,000+ 102AGE FH - Under 35 116AGE FH - 35-44 89Cosmopolitan Centers 125Affluent Suburban Spreads 88Compatibility Index 5.0Estimated Sales $38,877

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Potential Sales Calculations

• Estimated sales are calculated by:– Number of Twitter users in a SuperValu banner– Times the average dollars spend per shopper (green

highlighted rows) – Times an estimated conversion factor (20% of Twitter users

become new shoppers)

• Other Estimate Considerations:– The number of Twitter users per region is self reported. Twitter

users are not required to include their location in their profiles. This means there are probably more users in all of these regions.

– Twitter users in adjacent cities are not included which will also increase potential new customers.

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Acme Jewel Shaw's Cub

Category X Philadelphia Chicago BostonSalt Lake City-

BoiseSeattle Portland Los Angeles San Diego Minneapolis

Twitter Users Per City 11,000 28,611 15,513 2,876 15,855 8,798 12,966 12,649 7,189Twitter Users Per State 27,427 38,233 24,814 5,305 26,857 13,761 11,380Twitter Users Per Banner 11,000 28,611 15,513 7,189Item $ Per Item Buyer $21.66 $19.25 $18.95 $16.69 $19.00 $18.03 $21.73 $24.69 $17.09INC - <$20,000 103 113 78 87 118 113 127 75 103INC - $20,000-29,999 71 102 100 127 85 101 79 79 115INC - $70,000-99,999 128 92 86 106 73 87 72 120 129INC - $100,000+ 103 91 78 124 73 105 82 107 112AGE FH - Under 35 94 95 72 102 124 130 117 95 110AGE FH - 35-44 82 117 121 85 104 102 88 82 128Cosmopolitan Centers 126 103 119 112 72 117 101 125 101Affluent Suburban Spreads 89 129 74 78 75 90 122 75 102Compatibility Index 6.0 6.0 3.0 10.0Estimated Sales $59,573 $137,681 $73,480 $11,998 $75,300 $39,647 $70,442 $78,092 $30,720

Total: $576,933

27,529

Albertsons IMW Albertsons So. Cal.

25,61583,940

5.3 5.5

SuperValu Category X Twitter Demographics*

• Cub, Acme, and Jewel index highest to those demographics who are most likely to use Twitter.

• Households making $30,000 and less do not index well for any banner in this category.

• Potential New Annual Sales: $576,933

Source: AC Nielsen Homescan Panel- 6/28/2008,http://pewresearch.org/pubs/1117/twitter-tweet-users-demographics

*All Nielsen Data is Simulated

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Results

• Total Estimated New Annual Sales– All Categories - $X,445,841– Tyson Categories - $X,323,632

• We also know which banners have index highest to those demographics that use Twitter and should be targeted first.

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Wal-Mart Analysis

• Wal-Mart has a similar demographics breakdown for every one of their stores.– Based on Spectra data– Can be used to target certain regions with demographics

similar to the average Twitter user– Available in Retail Link

• Sort by relevant Twitter demographic and import into Map Point to find the best regions to start.

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How can SuperValu use Twitter?

• Attract followers by providing value.– Literal values such as advertising promotions

• Tyson frozen boneless breasts are on sale until 6/10/09 at $1.X9/lb.

– Act on criticism/praise written about SuperValu.

– Ask questions of followers on status of products or stores.

• Are the stores clean?• Are our displays well stocked and orderly or messy

and empty?

– Address social issues the way @TysonFoods does.

Source: TweetStats.com as of 4/14/2009

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How can SuperValu use Twitter?

• What other retailers are doing:– @SamsClubDeals - Daily Deals sent directly to

your twitter! 992 Followers – @costco_online - The Unofficial Costco Deals

Twitter 1,234 Followers

Source: TweetStats.com as of 4/14/2009

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How can SuperValu use Twitter?

• Customer Intimacy – get direct feedback from people interested in your brand – @TysonFoods - Major protein products company, the

work of 104K people. This account currently focuses on hunger relief efforts: yours, ours, theirs.

– @wholefoods - Fresh organic tweets from Whole Foods Market HQ in Austin, TX. 693,250 Followers. 10.5 Tweets/Day. 7 million messages sent/Day.

• No advertisements– @HomeDepot - I’m a spokesperson, I moonlight on

Twitter to offer another way for customers to ask about their projects and our stores. information@homedepot.com. 8,030 followers.

– @traderjoes - Tweets by and for Trader Joe's aficionados – 8,635 followers

Source: As of 4/14/2009

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How can SuperValu use Twitter?• Customer Care

– @comcastcares - Comcast Director of Digital Care Email: We_Can_Help@cable.comcast.com

– For example: A customer could Tweet that Tyson is out of stock in the Acme on Main Street. The message could then be passed to a broker who could remedy the out of stock.

• Customer Research– Query followers about flavors, prices, sizes, etc.– For example: In a meeting about new flavors for dinner

meats, ask SuperValu’s Twitter followers what their favorite dinner meat flavors are and get a response in real time.

Questions?

Thank you!