CONNECTING WITH CONSUMERS

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Tuesday, May 8 2012

From B-to-C to B-to-B

Although this site is dedicated to consumer marketing, it goes without saying that more and more companies are waking up to the potential of new technologies and approaches for connecting with other companies. So in this entry, we go a bit outside the box to take a look at what businesses are doing these days with social media. The best window for meeting that objective may well be Mike Stelzner's  2012 Social Media Marketing Industry Report, with findings based on a survey of more than 3800 marketers.

SOCIAL MEDIA USE

Among the key results, we see that most B2B marketers claim to be using social media in their businesses, which essentially matches their consumer marketing counterparts:





SOCIAL MEDIA TOOLS

Perhaps not surprisingly, B2B marketers are catching up to B2C marketers on Facebook, although they surpass their consumer-oriented counterparts on LinkedIn, Twitter, blogs, and Google+.  The key to using such channels is to focus on where one's intended audience is likely to be spending the most time.



SOCIAL MEDIA BENEFITS


What about results?  These results reveal some of the potential benefits of social media for B2B marketers:

  • Over 56% of B2B marketers acquired new business partnerships through social media (compared to 45% of B2C marketers)
  • Nearly 60% of B2B marketers saw improved search rankings from their social efforts (compared to 50% of B2C marketers)
  • B2B marketers are more able to gather marketplace insights from their social efforts (nearly 69% vs. 60% of B2C marketers)
  • The one area where B2B marketers significantly lag behind their B2C counterparts is in developing a loyal fan base.  63% of B2C marketers found social media helped them develop loyal fans, compared to 53% of B2B marketers.
  • The fact that many businesses are not seeing a direct link between their social media efforts and increased sales or reduced marketing expenses may have something to do with a lack of acumen as to how results can be measured:  20% of the respondents asked “How do I measure the effect of social media marketing on my business?”


THE FUTURE


Some projections concerning how B2B marketers intend to invest their time with social media also were culled from the study:

  • Respondents claim to be far more likely to increase their use of LinkedIn, with, over 76% of B2B marketers stating that they will increase their use (compared to 55% of B2C marketers).
  • 71% of B2B marketers plan to invest more time in blogging (compared to 65% of B2C marketers).
  • As for Facebook, a majority of marketers predict they will increase their use of Facebook this year, but B2B marketers (68%) lag behind B2C companies (76%).

The top topics B2B marketers want to learn about (compared to B2C) are:

  • Measuring effectiveness of social media (77% vs. 78%)
  • Converting activities to sales (72% vs. 69%)
  • Discovering best social media tactics (69% vs. 74%)



THE LESSON LEARNED

... is one we probably knew already:  Social media is now as much part and parcel of B2B marketing as it of B2C marketing.

SOME LINKS TO CHECK OUT

Why Marketing is Broken and How to Fix It

83% of Consumers Bailed on a Purchase Due to Poor Social Media Customer Service                                                    


Thursday, January 12 2012

50 Brands That Connect With Consumers

What is the secret to creating more meaningful relationships with consumers and experiencing significantly higher growth as a result?  According to a recent Stengel Study of Business Growth, the answer is no more complicated than this: develop a strong brand promise.

Using Milward Brown's Optimor technique (explained in the box at the end of this discussion), the Stengel analysis was performed over a ten-year period spanning 31 countries and 28 categories. The top 50 brands--that is, those that outpaced their competition in brand value over the past decade and formed “unusually strong connections with consumers” are listed alphabetically in the following chart.  The so-called the ‘Stengel 50’ grew three times faster in financial terms during the period studied than their competitors and the overall universe of brands.

The Stengel 50 reveals quite a disparity in brand categories, ranging from luxury brands like Hermès, Louis Vuitton, Moët et Chandon, Hennessy and Mercedes-Benz to e-commerce brands like Amazon.com and Zappos to consumer goods brands like Coca-Cola, Sensodyne, and Red Bull.  Among these brands we see some of the usual suspects, ones that have been identified in other analyses, particularly engagementdb's social media engagement study of the top global brands (which compared Business Week's top 100 global brands according to number of channels and depth of engagement), as well as assessments of company's performance on Facebook and Twitter.  Albeit with differences.  For example, the top three brands that emerged from the engagementdb analysis were Starbucks, Dell, and eBay.  The top three Stengel brands were Apple, Google and Pampers, growing as much as 10 times faster than average company growth between 2001 to 2011.  Both studies found that connecting with consumers was associated with financial growth.

Looking a little more closely at the Stengel study, however, the basic question is what exactly does it mean to 'develop a strong brand promise' or identity?  Insight into this question is provided by the study's director, Jim Stengel, former CMO of P&G.  According to Stengel the high ranking brands were built around a central ideal that clarified their core purpose, such as IBM's goal to 'create a smarter planet' and Jack Daniel's 'maverick independence.'  In marketing jargon we call these central ideals  'brand essence' - the essential and intrinsic nature of the brand; its spirit and soul; a single thought that captures that soul.

The man behind the research – high profile US marketer and former CMO of Procter & Gamble, Jim Stengel – suggested all of the high ranking brands were built around a central ‘ideal’ that fostered a tight focus on their core purpose.  As described in his book Grow. How Ideals Power Growth and Profit at the World's Greatest Companies, Stengel elaborates on brand ideals:

 “A brand ideal is not social responsibility or altruism but a programme for profit and growth based on improving people’s lives.”

“Maximum growth and high ideals are not incompatible. They’re inseparable.”

As an example, Stengel points to Pampers, a brand that lost sight of its core ideal by focusing too narrowly on the dryness of diapers.  Market share continued to drop until Pampers successfully redefined its brand ideal as ‘helping mothers care for their babies’ and toddlers’ healthy, happy development’. Anybody can talk about dry diapers, but helping mothers care for their newborns is a message that helps distinguish a winning brand from the also-rans.  The best-performing businesses, according to Stengel, are driven by ideals that touch on one of five human values: eliciting joy, enabling connection, inspiring exploration, evoking pride or having an impact on society.

Source: http://www.millwardbrown.com/Sites/Brand_Ideal/The_Study.aspx

The Stengel study adds another notch to Starbucks' growing collection of successes in outperforming just about everybody else when it comes to connecting with consumers.  That I've admired Starbucks' strategy and tactics in the past is certainly evidenced by my extensive discussion of the company in my book, Connecting With Consumers, and in the many lectures I've given on the topic.  Nonetheless, based on some recent experiences associated with my forthcoming book, Psychological Foundations of Marketing (Routledge, June 2012), I'm beginning to reassess my image of Starbucks.  I'm now beginning to think their 'connecting' is nothing more than a lot of smoke and mirrors.  More on this in a subsequent installment.  Stay tuned.