••• b2b research
B2B marketers feeling the pressure
Report outlines the hurdles they’re facing
As marketing budgets and spending return to pre-recession levels, B2B marketers feel increasing pressure to justify their activities and results, according to a report from Forrester’s Laura Ramos, as featured in a MediaPost Research Brief. In a 2016 budget survey, 56 percent of the B2B marketers who responded said that attributing program spending to revenue results is their top challenge, up from 45 percent in 2015. When B2B marketing executives can’t definitively quantify what their company gets in exchange for the budget dollars spent on in-person events, sponsorships, advertising and sales support, CFOs see marketing as a cost center, sales execs see marketing as a resource diversion and CEOs don’t consider marketing a strategic part of the management team. Marketing execs might have great motivation but several factors make measuring marketing’s impact a constant struggle, points out the report.
Marketers face a deluge of data. The number of channels that B2B marketers use to reach and collect information about customers has grown rapidly in the past decade. The most recent budget survey respondents report using an average of 9.4 tactics out of the 17 considered. Channel-centric marketing tools generate unique sets of metrics that are difficult to integrate into a cohesive view of customer information and engagement. The tons of social, mobile and digital data that buyers throw off as they investigate purchase options only increase the scale of the problem.
Messy internal data is difficult to manage. To make matters worse, says the report, mergers, acquisitions and technology investments have turned the systems used to collect and analyze the resulting data into a hodgepodge of disconnected tools. This makes it a huge challenge to collect, aggregate and house data, while raising questions and concerns about the reliability and validity of that data. Without the services of a B2B data management specialist, the process of merging, unduplicating, standardizing and augmenting data can spin out of control and can cost a large enterprise hundreds of thousands of dollars to get it back on track.
Many marketing teams remain deficient in analytical skills. Analytics is not a historical skill set of B2B marketing departments, notes the report. Many marketers lack an analytics background, especially those who rose through the ranks of marketing communications and branding. In research conducted on how marketers manage performance, only 10 percent of respondents felt that their marketing teams were effective at using data analytics to make decisions.
The role of marketing continues to change. Long sales cycles in which buyers take nonlinear paths to explore solutions and need to engage multiple decision-makers further complicate how marketing must attract and engage buyers.
“Every organization has a vision for how marketing should help the firm achieve its goals but it is not often ar-ticulated very clearly,” says Pat LaPointe, former managing partner at MarketingNPV and executive vice president at MarketShare.
But, says the report, marketers don’t measure the right things. Most get stuck measuring activity, not value: 61 percent of the marketers surveyed admitted that most of their data work went into reporting on how they did, not showing how marketing drives better business results. This tendency, and the challenges described, con-strain marketers from measuring the things that really matter to the company.
Instead, says the report, they:
Measure only what’s easy. Marketers gravitate to measuring the things for which they know they can get data. They rely on the individual metrics and reports generated by each tool they use, such as Web analytics to measure visitors or page views and e-mail systems to measure e-mail open rates and click-throughs on offers.
Focus too narrowly on funnel metrics. Most B2B marketers surveyed try to prove marketing’s value by reporting short-term operational trends like sales pipeline (72 percent), marketing spend (58 percent) and return on program investments (51 percent). Fewer than 20 percent of respondents include metrics that take a longer-term view, such as marketing’s contribution to retention, market share or category ownership, to track the for-ward-looking health of the business.
Track quantity over quality. Marketers commonly use quantitative measures like inbound traffic, attendees at events, social media followers and marketing-qualified leads to benchmark the results of their marketing activities. However, says the report, lead conversion rates, customer retention and account penetration measures better prioritize programs that result in strong sales opportunities among both prospects and current customers.
Fail to measure factors that lead to improved performance. Monitoring awareness, preference, consideration, market sentiment and customer satisfaction and loyalty are conventional performance management tasks that help marketing execs understand brand impact. However, this activity falls short among the marketers surveyed, as it fails to measure and report the results that matter more to CEOs and board members, like increases in customer lifetime value (15 percent) and cross-sell/upsell opportunities (25 percent).
••• financial services
Consumers glum on post-election financial outlook
We lose no matter who wins
Nearly two-thirds of U.S. consumers believe their financial health is poised to deteriorate in 2017 regardless of who wins the presidential election this year, according to findings from an IRI Consumer Connect survey from Chicago researcher IRI. In contrast, consumers have been feeling a bit more optimistic about their personal finances and putting the Great Recession behind them for the past couple of years.
Overall, 64 percent of consumers believe their households’ financial health will decline if Donald Trump is elected compared to 60 percent of consumers if Hillary Clinton is elected. In addition, 36 percent believe their households’ financial health will improve if Trump is elected compared to 40 percent if Clinton is elected.
“While Americans’ attitudes towards personal finances have improved in recent years, this election process appears to signal a shift in consumer sentiment,” says Susan Viamari, vice president of thought leadership for IRI. “The changing of the guard at the White House always represents uncertainty but this year close to 60 percent of consumers feel that their financial health will deteriorate no matter who is elected president. This will absolutely impact retailers and CPG manufacturers, as they brace for a tightening of the purse strings.”
IRI has for several years studied the types of trade-offs that consumers make when they feel their budgets are being squeezed. Some behaviors, such as list-making and shopping at multiple stores, become part of the regular routine, even when finances are looking stable or are improving. The following are shopping behaviors that consumers say they will be adopting: 62 percent of consumers who think their finances will decline say they will make written shopping lists, compared to 59 percent who think their finances will improve; 75 percent of consumers who think their finances will decline say they will buy needed items when they are on sale to save money, compared to 54 percent who think their finances will improve; 62 percent of consumers who think their finances will decline say they will purchase private label products to save money, compared to 41 percent who think their finances will improve; 48 percent of consumers who think their finances will decline say they will try new, lower-priced brands to save money, compared to 36 percent who think their finances will improve; 38 percent of consumers who think their finances will decline will visit multiple retailers to keep the grocery bills down, compared to 35 percent who think their finances will improve.
Consumers still want to treat themselves and will continue to splurge on indulgences. Those with a sunnier outlook on their finances are looking for stores that offer the following selection of luxuries: 56 percent of consumers want gourmet food and beverages; 55 percent of consumers desire local/artisan food and beverages; 51 percent of consumers require prepared/easy-prep meal solutions; 51 percent of consumers fancy natural/organic food and beverages; 48 percent of consumers wish for technology that would make shopping the store more exciting; 39 percent of consumers would like the ability to purchase online and pick up in store.
During the Great Recession, younger consumers had the most pessimistic outlook. However, the tide is definitely turning as the latest IRI survey results found that younger consumers are now more optimistic than older consumers about their personal finances in the next six months prior to the inauguration of a new president. A full 78 percent of consumers aged 18-34 and 69 percent aged 35-54 believe their households’ financial health will improve in the next six months, compared to 60 percent aged 55 and up. Thirty-eight percent of 18-to-34-year-olds and 31 percent of 35-to-54-year-olds are willing to pay more for food/beverages that are natural and organic compared to 21 percent of those aged 55 and up. Fifty-eight percent of 18-to-34-year-olds and 52 percent of 35-to-54-year-olds are willing to pay more for OTC medications that treat multiple symptoms com-pared to 43 percent of those aged 55 and up.
Still, these younger consumers are willing to make trade-offs to save money. After all, they have come up in a very conservative place in time and frugality is becoming programmed into their CPG shopping journey: 53 percent of 18-to-34-year-olds and 51 percent of 35-to-54-year-olds buy beauty products that are not their regular brands because they’re on sale compared to 40 percent of those aged of 55 and up; 59 percent of 18-to-34-year-olds and 48 percent of 35-to-54-year-olds buy food/beverage brands that are not their preferred brands because they have a coupon compared to 41 percent of those aged 55 and up; 54 percent of 18-to-34-year-olds and 46 percent of 35-to-54-year-olds buy OTC medications that are not their preferred brands because they have a coupon compared to 36 percent of those aged 55 and up.
“When it comes to decoding the consumer mind-set, there is perhaps nothing more complicated than predicting how a significant transition, such as electing a new president, will impact the way consumers feel and behave,” says Viamari. “CPG manufacturers and retailers must be more vigilant than ever as the torch is passed, and ready to respond in real time to shifting attitudes that ripple through the marketplace.”
The IRI Consumer Connect survey is a quarterly survey designed to gauge consumers’ financial confidence and understand how their financial situations are impacting the way they shop for, purchase and consume CPG products. It is an online survey of more than 2,200 nationally representative respondents. The Q2 2016 survey was fielded the first half of June.
••• automotive research
Auto tech excites, concerns car-buyers
Lack of awareness may hamper acceptance
Technology-savvy consumers are increasingly motivated by advances in automobile tech, particularly around safety and convenience, when making a new car purchase. But a lack of familiarity with connected vehicles and some lingering privacy concerns around these technologies remain as obstacles to wider adoption and increased sales, according to the 2016 Nielsen AutoTECHCAST Report, an annual study of consumer preferences focused on advanced and emerging automotive technologies. The AutoTECHCAST survey was conducted during the second quarter of 2016 and encompassed nearly 12,000 U.S. new car buyers and looked at 44 auto-related technologies to examine the latest industry trends and uncover the reasons behind them.
“Consumers are becoming more interested in advanced automotive technologies than ever before and are increasingly factoring these technologies into their purchasing decisions,” says Mike VanNieuwkuyk, vice president, Nielsen Automotive. “Manufacturers need to continue to educate auto shoppers about the technologies that appeal to their personal interests and desires in order to distinguish their products from competitive options and build stronger brand loyalty with these tech-savvy consumers.”
While advanced automotive technologies are on the rise, consumer awareness of many automotive technologies is not as widespread as some might think. The Nielsen report found that base familiarity is low, with just 25 percent being extremely or very familiar with these technologies.
However, familiarity with technology related to safety and connectivity has been on the rise. According to the report, the top five most recognizable advanced technologies are rear-camera mirrors, smartphone-linked media functionality, blind spot detection and prevention systems, surround view camera systems and smartphone-navigation vehicle interfaces.
Survey respondents were the least familiar with technologies involving comfort and fuel efficiency. The report revealed the bottom five technologies were gesture/motion controls, energy recovery suspensions, active wheel shutters, active front grille shutters and car-mounted solar panels.
Beyond automotive technologies that are related to safety and connectivity, consumers are far less familiar with other futuristic advancements. A lack of awareness around many of these technologies may be hampering their wider acceptance, raising the need to better educate consumers.
When it comes to future vehicle selection, safety – particularly accident prevention technologies – is growing in consumer interest. The AutoTECHCAST Report found that safety is among the top criteria for consumers when shopping for a new vehicle and has risen 5 percent since 2014. “Advanced technology/features” is also on the rise, up 3 percent over last year. Furthermore, half of the top 10 individual technologies of interest are safety-related.
While vehicle price and reliability remain important factors with consumers, they are also viewed as characteristics that are expected. The report uncovered an increase in the importance of corporate reputation, which rose to 10 percent in 2016 from 8 percent last year. “Consumers are becoming much more interested in the reputation of the company they purchase their vehicle from,” says VanNieuwkuyk. “More than half of the respondents we spoke to indicated that car manufacturers are making good choices when it comes to safety, which really bodes well for industry reputations in general.”
While familiarity with connected cars has been on the rise, the report shows that nearly one-third of consumers have never heard of these technology-enabled vehicles. These consumers don’t know what connected cars do and are not associating vehicle brands with infotainment badging. This highlights the need for manufacturers to better promote their branded infotainment systems and find more effective ways to market system-specific features to vehicle owners in order to raise awareness of connected car functionality.
Another issue facing connected cars is skepticism around protecting the consumer’s privacy. Nielsen found that nearly two in three consumers surveyed are not willing to share information over fears their privacy would be comprised. Manufacturers will need to further educate consumers about the benefits of connected cars and reinforce privacy options available around how data is collected and security measures that are already in place in order to build trust and ease concerns.
The report found that advanced technologies are highly appealing to Millennials and affluent buyers. “Automotive tech offers manufacturers an important tool for staying competitive and relevant, while appealing to the newest generation of consumers who are extremely technology savvy,” says VanNieuwkuyk. “This year’s report highlights growing expectations by today’s consumers around safety and connectivity-related technologies. This rising awareness presents the industry with an important opportunity to refine their message and fine-tune promotions that drive excitement for advanced technologies.”
The Nielsen AutoTECHCAST Report is an annual multi-client study platform to collect and analyze consumer insights on advanced automotive technologies and features. The 2016 study includes 44 technologies. A total of 11,886 U.S. consumers completed the study utilizing Nielsen’s Harris Poll Online panel members, as well as additional preferred partner sample. The average survey length ranged from 35 to 40 minutes. Data were collected between March 22, 2016 and April 27, 2016. Data was weighted by demographics and a propensity score to ensure that respondents are representative of the total in-market vehicle buying population.
••• grocery research
Let’s talk about Skittles
NetBase charts food mentions on social media
Santa Clara, Calif.-based analytics firm NetBase released its first NetBase Food and Beverage Brand Industry Report 2016, which examines social media conversations of the top food and beverage brands across six different grocery aisles. The report reveals that the most-loved brand was Skittles, which beat out its chocolate competitors, followed by Budweiser, Red Bull, Pringles and Coca-Cola, which topped Pepsi.
To build the report, NetBase examined more than 84 million mentions across social networks, review sites, blogs and forums between June 22, 2015 and June 21, 2016. It then ranked 72 of the most-loved food and beverage brands from the following grocery aisles: adult beverages, non-alcoholic beverages, candy, cereal, dairy and snacks.
Consumers go to the grocery store at least 1.5 times a week. Therefore, food and beverage brands are constantly competing to be top-of-mind and by leveraging social to understand their target audiences, brands can act on market signals and have more consumers put their products in their carts.
Key findings from the report include:
Beverages dominated the top 10. More beverage brands were ranked in the top 10 spots than any other aisle with Red Bull (#3), Coca-Cola (#5), Pepsi (#6), Mountain Dew (#9).
Breakfast was the meal or snack most associated with healthy eating. The top brands mentioned alongside health were Cheerios (#19), Silk (#23), Quaker Oatmeal (#32).
Conversation drivers changed by aisle. Health concerns were only raised around dairy products, while humor was the biggest conversation driver for snacks.
Wine brands have room to grow in social. Wine brands like E&J Gallo had a highly favorable net sentiment but had low overall volume of mentions.
The NetBase Food and Beverage Brand Industry Report 2016 is based on brand conversations across Twitter, Facebook, Tumblr, blogs, forums, news and review sites between June 22, 2015 and June 21, 2016.
••• financial services
Millennials display Depression-era money views
Trading ‘Back in my day…’ stories?
Millennials may have more in common with their Depression-era counterparts than their Boomer parents or grandparents, according to findings from the TD Ameritrade Millennials and Money Survey. Of the more than 1,000 Millennials surveyed: sixty-two percent identify as savers; 80 percent have a budget; the vast majority don’t feel financially secure now but expect to be in the future (85 percent); nearly half are anxious about debt (47 percent); and more than three-quarters would stash an extra $1,000 in a savings account instead of the stock market (77 percent).
“The Silent Generation and Millennials came of age during a major financial crisis, which increases the propensity to save and financial conservatism,” says Matthew Sadowsky, director of retirement and annuities at TD Ameritrade Inc., a broker dealer subsidiary of TD Ameritrade Holding Corporation. “Further adding to Millennials’ financial anxiety is the economy, student debt, and escalating peer influence from social media.”
They’re not just keeping up with the Joneses – they’re keeping up with everybody. Thanks to social media, Millennials feel social pressure to spend or keep up with others more so than elder generations. Social media is much more likely to cause Millennials to compare themselves to others than Boomers (64 percent vs. 29 percent). Nearly a quarter of Millennials feel pressure to keep up with the spending habits of their friends (24 percent). Fifteen percent of Millennials admit to spending money to make a good impression. To the statement “I need a somewhat substantial/substantial amount of money above the minimum needed for essentials,” 57 percent Millennials agreed vs. 34 percent of Boomers.
Millennials are more likely than Boomers to report having spent more/not saved as much in a month than they wanted to (56 percent vs. 29 percent say this happens very often/somewhat often).
Who do they listen to? How do they invest? Millennials consult parents (38 percent) and/or friends (28 percent) for financial advice while Boomers are more likely to consult a professional advisor. Millennials are more likely to feel confident investing using a combination of online and human contact than Boomers (40 percent vs. 33 percent).
Millennials view home ownership as important and have realistic views of retirement savings hurdles. Two-thirds of Millennials are saving for a down payment on a home (66 percent). Millennials consider 29 the ideal age to become a homeowner. Almost half are concerned about running out of money in retirement (49 percent). More than half are willing to retire later to maintain their desired retirement lifestyle (53 percent).
Millennials and Boomers are on the same page when it comes to many financial attitudes. Saving, as opposed to spending, makes Americans feel secure and, as a result, happy (80 percent). The No. 1 reason to save is to have the confidence you can meet your financial obligations whatever happens (66 percent). Millennials and Boomers are optimistic about feeling financially secure in the future (41 percent overall).
“Millennials were in a position to learn the value of financial preparation, having grown up in the aftermath of a recession. The qualities they have developed like budgeting discipline and a realistic outlook on retirement may well pave the way toward their financial future,” Sadowsky says.