Retailers and consumers reach symbiosis through couponing
While consumers certainly enjoy coupons, what do retailers stand to gain? Turns out, plenty. The study suggests that coupons have a significant impact on retailers’ bottom lines in addition to the obvious consumer benefit as couponers are likely to spend more, have higher satisfaction and return to the retailer where the coupon was used, according to Online Shopper Intelligence, a study from Boston research company Compete.
More than half of the consumers who used a coupon code during their last online purchase said that if they had not received the discount, they would not have bought the item(s) - 57 percent said no, 43 percent yes - and more online shoppers are using coupons now than ever. One-third of online shoppers reported that they generally use coupon sites while shopping online, and 35 million consumers visited coupon sites in April 2010 (up 5 percent over 2009). Coupons have a high ROI, as the small discount consumers receive encourages them to spend money. When asked how much they spent on their most recent online purchase, consumers who used a coupon spent almost twice as much as consumers who did not use a coupon ($216 with a coupon versus $122 without).
Coupons can be an effective way for retailers to build goodwill with consumers and increase customer satisfaction. When asked about their overall shopping experience, satisfaction was higher for consumers who used a coupon than for those who did not. Ninety-two percent of coupon shoppers were extremely or very satisfied versus 88 percent of non-couponers. Consumers who used a coupon also said they are more likely to buy from the retailer again when compared to those who did not use a coupon. Ninety-one percent of consumers with coupons reported being extremely or very likely to shop again at the retailer where the coupon was redeemed versus 86 percent of consumers without coupons. For more information visit www.competeinc.com.
A handful of moms rule the masses on social networks
Many 21st-century moms are finding their voices on online communities and social networks, though not all social media moms contribute equally. Some go online looking for guidance (the Influenced) and some are more than willing to provide it (the Influencers).
San Francisco online community BabyCenter LLC’s The BabyCenter 2010 Mom Social Influencer Report explored the profiles of each of these groups of women and found that 18 percent of moms who use social media account for 78 percent of the influence.
Among the Influencers are Field Experts, Lifecasters and Pros. A Field Expert is a young-but-experienced stay-at-home mom who uses social media to share parenting advice, usually focused on a specific topic (i.e., raising twins, breastfeeding issues, caring for a special needs child, etc.), with a large network of moms who look to her for her hard-earned advice and recommendations. She is most active in parenting-focused social media environments. Field Experts make up 8 percent of social moms and have a 33 percent share of influence overall. They are most influential on parenting communities where they have a 44 percent share of influence.
A Lifecaster is a Millennial mom of young children who is always connected and communicating using social media. She loves being the center of attention; has a strong need to stay connected and participate; and thrives on being recognized as the go-to person on many topics, not just parenting. She is very active in social media, with a high number of comments and friends who look to her as an invaluable source of new ideas and recommendations. She is most active on Facebook where she posts frequently to her huge network of readers and “likes” her favorite brands. She’s also active on Twitter and blogs where she shares everything from everyday occurrences and stories about her children to product recommendations, deals and coupons. Although Lifecasters produce a high amount of seemingly lighter content, they are depended on by a large audience for relevant advice and product recommendations. Lifecasters make up 8 percent of social moms and 34 percent of the influence overall. They are most influential on Facebook where they command 47 percent of the influence.
A Pro is a self-employed Generation X mom with young children who loves giving well-thought-out advice and values recognition. She consistently pushes out entertaining and informational content to her enormous networks on Twitter and her blog, posting opinions and advice on a wide variety of topics including parenting tips, product reviews and giveaways. She does extensive research before making recommendations on a broad range of topics. In many cases, she has been compensated in some way for writing about brands on her blog. Pros represent 2 percent of moms in social media and have an 11 percent share of influence overall. While they are incredibly influential individually, they account for a lower proportion of the influence overall due to their small size. Pros are most influential on blogs where they have an 89 percent share of influence and on Twitter with 69 percent.
Among the Influenced, a Butterfly is a mom-to-be expecting her first child. She is very self-confident and loves social gatherings. Although she has a lot of friends online and in real life, her schedule is so tight that she tends only to post on important updates using social media. She primarily uses social media platforms like Facebook to keep up with her many friends and be entertained. She also seeks advice about her pregnancy on parenting-focused social media networks. She shares about her real life on Twitter and on blogs but generally tends to be more on the receiving end of advice and recommendations. Although Butterflies represent 16 percent of moms in social media they only wield 7 percent of the influence overall because of their low level of activity.
The Audience is a very large group that represents the mom market, including a mix of moms at different stages, from expectant moms to moms of older children. These women have fewer online friends and comment less frequently in social media but are still present and highly influenced by the other segments. Moms in this group use parenting-focused social media environments to find useful information, ask questions, get product recommendations or receive support. They use mainstream social sites to keep in touch with friends and for consuming entertainment. They are there to observe and obtain information – not to comment. At 66 percent of moms who use social media, the audience makes up the largest group but wields little influence relative to their size at 15 percent overall. For more information visit www.babycenter.com.
American makes making a comeback in auto appeal
For the first time since 1997, domestic auto brands have surpassed import brands as a whole in vehicle appeal, according to the 2010 Automotive Performance, Execution and Layout (APEAL) Study from J.D. Power and Associates, a Westlake Village, Calif., research company. In 2010, the APEAL score for U.S. domestic brands averages 787 on a 1,000-point scale - 13 points higher than the score for import brands (auto makers headquartered in Europe or Asia-Pacific). By comparison, in 2009, import brands outpaced domestic brands by five points. Among premium models, import nameplates continue to retain a notable edge, but mass-market models from domestic brands outperform those from import brands.
Domestic brands have been improving steadily in vehicle appeal during the past four years, with the greatest improvement occurring between 2008 and 2010. Improvement in 2010 is driven primarily by high-performing models from Ford and General Motors, including several models that are all-new or have undergone major redesigns.
New models introduced by import brands between 2008 and 2010 have similar APEAL scores as models retired by these import automakers during the same period (averaging 784 versus 781, respectively). In contrast, newly-introduced domestic models have strongly outperformed the models retired by domestic brands (803 versus 758, on average).
Historically, vehicle models achieving high APEAL scores have been shown to generate faster sales, higher profit margins and less need for cash incentives. High levels of vehicle appeal also have a strong influence on customer recommendation rates. Among the most highly-satisfied owners (APEAL scores averaging 950 or higher), 97 percent say they definitely will recommend their vehicle. However, among the least-satisfied owners (scores averaging below 400), only 8 percent say the same.
Ford captured five segment-level awards - more than any other vehicle brand in 2010 - for the Expedition, Explorer Sport Trac, Flex, Fusion and Taurus. Audi, BMW, Chevrolet, Mercedes-Benz and Volkswagen each garnered two awards. Audi received awards for the Q5 and Q7. BMW models that received awards are the 3 Series and 5 Series. Chevrolet received awards for the Avalanche and Camaro, while Mercedes-Benz earned awards for the E-Class Coupe and S-Class (for a fourth consecutive year). Volkswagen received awards for the GTI and Routan. The Mercedes-Benz S-Class achieved the highest APEAL score of any model in the industry. Also receiving awards were the GMC Terrain; Honda Fit; Land Rover Range Rover; MINI Cooper (for a third consecutive year); and Nissan Cube. Porsche was the highest-ranking nameplate in APEAL for a sixth consecutive year. Suzuki improved more than any other nameplate in 2010, compared with 2009.
Five award recipients in 2010 were all-new models: the Audi Q5; Chevrolet Camaro; GMC Terrain; Mercedes-Benz E-Class Coupe; and Nissan Cube. According to the J.D. Power Web Intelligence Division, at the time of its launch, the Chevrolet Camaro generated particularly high volumes of online discussion centered on new-vehicle appeal. Compared with other new models released in 2010, discussion volume for the Camaro was twice that of the second-most-discussed model. For more information visit www.jdpower.com.
TV in bed trumps sex among Boomer women
Mature couples aren’t as far outside of the technology circle as some might think, and contrary to past trends, women are at the forefront of bringing new technologies to older generations. In fact, many mature consumers consider themselves to be tech-savvy. Thirty-eight percent of Boomers (born between 1946 and 1964) and 39 percent of Ikes (born between 1934 and 1945) consider themselves to be very tech-savvy, ranking themselves as a seven or higher on a 10-point scale (10 being most savvy and 1 the least), according to a study of mature couples from San Francisco research company Continuum Crew. Those who self-report being tech-savvy are most likely to recommend and/or refer products to others.
As staggering proof of technology’s value in mature couples’ lives, a TV in the bedroom is rated more important than regular sex for Boomer women. In response to the question “What would you not be willing to give up?” both Boomer and Generation Ike female respondents said it was “television in the bedroom” versus the males’ top response of “sex on a regular basis.”
Overall, more Boomer men than women think they are tech-savvy. For Boomers and all younger age cohorts, men are more likely than women to say they are very tech-savvy. Interestingly, Ike women are the only generation in the study to indicate they are as tech-savvy as the males in their cohort. Forty percent of Ike women say they are very tech-savvy versus 39 percent of Ike men. For Boomers, 40 percent of men consider themselves to be very tech-savvy versus only 35 percent of women.
The Internet is the most valued service with 60 percent of both Boomers and Ikes reporting having a broadband connection at home as the most essential media service. Another 31 percent of Boomers and 26 percent of Ikes say it is “nice to have” but not an absolute necessity. Other common items include a wireless Internet connection, a laptop, a digital camera, the Home and Garden Television channel and a GPS device.
Ike women care more about technology than Ike men: More than twice as many Ike women than men rank a laptop as essential, and more than three times more for other items such as a GPS device and a digital camera. These items are also ranked higher in necessity among Boomer women versus Boomer men. Ike women are also more likely to say that they cannot live without a home broadband connection than any other cohort, including Boomers, Generation X3 (born between 1965 and 1974) or Generation Y4 (born between the mid-1970s and early 2000s). In interpreting the responses about respondents’ most valued technology products and services, women caring more about technology than men may speak to the importance of the role technology products and services play in their daily lives. This is truer for Ike women than any other generation.
Boomers report more independent purchase behavior than ever before. Boomers within a couple/spousal relationship report more independent purchasing behavior, which declines significantly with age and in the Ike generation. The more independent the Boomer partners are, the more money they spend without consulting one another. This is notable in product categories such as electronics.
“We have seen a shift as the financial power of Boomer women has grown - they have something their foremothers didn’t have - access to education, opportunities and careers. The balance of household power is shifting and with this survey we wanted to understand if couples are really shopping for big-ticket items together or acting as individual consumers, particularly as electronics have become more personal, and how and what couples will spend individually without consulting their spouse,” says Lori Bitter, president, Continuum Crew. For more information visit www.continuumcrew.com.
Facebook draws a crowd but fails to satisfy
Despite being the most popular Web site in America, consumers don’t like Facebook, which fared only slightly better in customer satisfaction than the once-gargantuan MySpace, according to the 2010 American Customer Satisfaction Index (ACSI) study from ForeSee Results, an Ann Arbor, Mich., research company. Facebook scored 64 on the ACSI’s 100-point scale, which puts its satisfaction even lower than IRS e-filers and in the bottom 5 percent of all measured private-sector companies and in the same range as airlines and cable companies, two perennially low-scoring industries with terrible customer satisfaction.
“Facebook is a phenomenal success, so we were not expecting to see it score so poorly with consumers,” says Larry Freed, president and CEO, ForeSee Results. “At the same time, our research shows that privacy concerns, frequent changes to the Web site and commercialization and advertising adversely affect the consumer experience. Compare that to Wikipedia, which is a non-profit that has had the same user interface for years, and it’s clear that while innovation is critical, sometimes consumers prefer evolution to revolution.”
Social media Web sites were measured for the first time, and the category included Facebook, MySpace, Wikipedia and YouTube. Twitter was not included in the social media category because a disproportionate number of users access Twitter through third-party applications other than the Web site Twitter.com. Wikipedia lead the category at 77, followed by YouTube at 73, Facebook at 64 and MySpace at 63.
Google plunged 7 percent but continued to lead the portals and search engines industry with a score of 80. 2010 was also the first time that Google ceded its top spot, as the “all others” category of search engine competitors jumped 5 percent to 82. Microsoft’s Bing search engine made a strong first showing with a score of 77, trailed by Yahoo! (76), AOL (74) and Ask.com (73).
In the news and information category, Fox News dominated its competition online as well as on TV. Foxnews.com debuted at the top of the industry with a score of 82, the highest score any news site has ever received in nine years of measurement. Fox News’ cable news competitors MSNBC.com (74) and CNN (73) trailed in satisfaction as well as ratings. All major news Web sites improved, including newspaper Web sites for USAToday.com (up 4 percent to 77) and NYTimes.com (up 4 percent to 76). For more information visit www.foreseeresults.com.
Financial services firms succeed in satisfaction, struggle with identity
Financial services organizations across the globe continue receiving high satisfaction scores from customers, but at the same time struggle creating differentiation and building affinity with their customer base, according to data from Toronto research company Ipsos Loyalty.
“Brand differentiation and affinity are two emotionally-based ingredients vital to building customer loyalty, but somehow, financial service providers are failing to connect with customers on these success factors,” says Ray Kong, senior vice president, Ipsos Loyalty. “While our research ndicates that customers are satisfied with the level of service they receive, they experience very little personal connection to their financial service brand.”
Around the world, in each of the three years for which data is available (2005, 2007 and 2009), banks have received their lowest customer scores for brand differentiation and brand affinity (21 percent, 28 percent, 34 percent for differentiation; 20 percent, 24 percent, 33 percent for affinity), while continuing to receive the highest scores for operational satisfaction (49 percent, 52 percent, 56 percent).
“In the wake of the global financial crisis, in which many financial services brands have suffered, low differentiation and affinity may leave financial services organizations vulnerable to new offers and/or entrants who are able to establish a more emotionally-based loyalty or compete on price,” says Kong. For more information visit www.ipsos-na.com/loyalty.