a new definition for “moment of truth”: how mobile and social media are changing research...
DESCRIPTION
P&G Exec A.G. Lafley famously spoke of two “moments of truth” in market research – the first at the store shelf, when the consumer decides to pick one brand over another; and the second when the product is being used for the first time. Scion ad researcher Michael Robinson of Omnicom added a third moment of truth, when a message from a brand is sent by an advertiser and received by a consumer. The use of social media on mobile devices by consumers is fundamentally changing the market researcher’s ability to get closer to these “moments of truth” – and the unparalleled measurements are available for harvesting – a new research science is in the making.TRANSCRIPT
Millennials Segmentation
A New Definition for “Moment of Truth”: How mobile and social media are changing research insights for brands
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Yesteryear Path to Purchase
Customers used to take a predictable journey toward a sales transaction
Funnel
reasoned action
Second moment of truth is first
usage
The TV was the main medium
the approach was
universal
First moment of truth:
store shelf
Third moment of truth:
brand message reaches viewer
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Purchase decisions today
Customers take an unpredictable journey toward a sales transaction
Funnel
Funnel is still around, now on steroids
First moment of truth:real shelf or virtual shelf
Third moment of
truth:brand
message reaches reader
Second moment of truth:first time using the product
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Purchase decisions today
Customers take an unpredictable journey toward a sales transaction
First moment of truth:real shelf or virtual shelf
Third moment of
truth:brand
message reaches reader
Second moment of truth:first time using the product
Billioncombinations
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20 years ago: Efficacy of marketing efforts for top 10 retail brands
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Today: Efficacy of marketing efforts for top 10 retail brands
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Revolution by smartphone usage
61% of all Smartphone users use their mobile device to help make purchase decisions while shopping, and of these Smartphone users…
Over 80% report having changed their mind about a purchase because of the information learned from their smartphone before or during shopping
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Revolution in Online Discussions
75% of users interact with Facebook or Twitter from their Smartphone
In the U.S.:
• 57.3 million users access and post to Facebook over their mobile device
• Twitter has 13.3 million users posting from their mobile phones
Content is rich and varied: Images, video, news clips, geo-location information, brand affiliations, product discussions
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Interactions that lead to the moment of truth
Price check / price comparison
Find a sales location
Find a coupon or sale
Product or brand comparison
Online reviews (Yelp, Amazon, etc)
Ask advice or likability
Browse brand page
Location:Home or Work
Visiting friends/family
In transit
In a store
Restaurant / Bar
Purchase moment
Standing in line
Browsing other products “on the way”
RTM up-sells
Location:
Online (anywhere)
Brick-and-Mortar
Hybrid
Heralding the purchase or usage
Reviewing (good/bad) the usage
Post emotional impact of purchase
Pissed off, tweeting, posting and outing (after an attempt to contact seller or manufacturer)
Location:
Online (anywhere)
I am going to purchase … I am purchasing … I have purchased
pri
cere
view
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Mobile research is here … organically
Organic shift of surveys being taken over mobile device from desktop browser
10% of all multi-modal research is now completed over the mobile device
18% of difficult-to-reach 18-24 year olds are using mobile devices to take multi-modal surveys
This is happening on surveys that are…not optimized for the mobile experience (yet more breakoffs)
may be 15 minutes (or more) in length
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Product or brand comparison
Online reviews (Yelp, Amazon, etc)
Ask advice or likability
Browse brand page
Each of these interactions leads to the moment of truth
Price check / price comparison
Find a sales location
Find a coupon or sale
I am going to purchase …
pri
ce
revi
ew
Home or Work Visiting friends/familyIn transitIn a storeRestaurant / Bar
loca
tio
n
Passive Metering Geolocation
Brand Apps Review Apps Browser
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Usage of smartphone & purchase
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Devices measured
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Geographical location
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Online or brick & mortar purchases
Once the consumer is in the store, it is unlikely that the consumer will buy on line
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Amount purchased & location of purchase
Consumers still prefer to go to a physical store, even though they are totally mobile enabled; that said, online competes for every purchase, especially those that are between $51-100
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In defense of social media…
3 year tracker examined the impact of social media involvement on the frequency of store visits and amount spent, by customer
Study controlled for social media bias by recruiting and collecting data before Facebook site was created and saw no significant difference in the frequency of store visits by the two types of wine customers (those who did and didn’t participate in social media) before the retailer started its site
Customers who interacted with a wine retailer’s social media network visited stores 5.2 percent more often and contributed 5.6 percent more revenue than customers who had a similar shopping history at that retailer but no online involvement
Those who posted more messages tended to buy in larger volumes, and preferred special or premium products
Sales hunters and customers who only purchased only a specific kind of product did not increase in visits or spend
Consumers who engage with companies on social media visit stores more often and spend more
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Pre/Post Behaviors in social media
Why: Best information about a purchase decision is gathered close to the purchase “moment”
How: Gather social media data by obtaining permission, and continually pull key social media data from the respondent and use the time-stamp to see if the respondent was influenced by social media
Self-reported behavior on using Facebook or Twitter while making a purchase decision:
Scraping
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What scraping looks like -
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3
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Social Media Data Attributes Available
Demographics• Gender• Age• Region • Relationship Status
Sociality statistics• Number of friends• Number of posts per day• Comment-post ratio• Number of happy birthdays
Discussions of product and brand mentions
Structured data available:• Read friend lists• Read pages, apps, and domains of the user• Read friend requests• Check if the user is considered "online"• Check how many friends of the respondent are
"online" • rsvp event
Textual data available:• Read inbox• Read all posts in news feed + perform searches
against the news feed
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Day-in-the-Life Narrative, Day #1
Date: Tues, 13:52:01Source: OnlinePost: “" Cheering for my Steelers at the Pourhouse. Steelers bar at its finest. Here we go!
Date: Tues, 17:32:45Source: OnlinePost: “" We did it! Here we go Steelers, here we go! "
Date: Tues, 04:16:18Source: iPhonePost: “" Total caffeine addiction happening in my life right now. Haven't had
coffee all day and its headache city right now. Need some ☕! ,""
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Day-in-the-Life Narrative, Day #2
Date: Wed, 12:51:25Source: iPhoneItem: Kids kicked my ass, then yoga kicked my ass. Home, comedy TV, glass of wine, coziness, bed. Down and out. Hopefully tomorrow cheers me up
Date: Wed, 12:55:07Source: iPhoneItem: “Before you go off complaining about your TL being flooded by politics tomorrow remember there was a time when young ppl didn't care”
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The all important “why”: traditional research is still critical• What was the main reason you visited the store?
• What product was the main product you were there to buy?
• Rate the store on service, availability, value for money, staff friendliness
• Did you buy anything on promotion?
• Did you fail to buy anything?
• Did you buy anything on impulse?
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Geo-fencing and Geo-Validation
The authenticity of respondents engaging with the research is critical… or you will get
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A nice old lady in a cigar store
