Consumer-Brand Linkage in the Digital World: The New Age of Influence

Consumer-Brand Linkage in the

Digital World: The New Age of

Influence

Presented to: 2011 Consumer Brand Conference

March 19th Rollins College

Melinda.Smith@tnsglobal.com

Melinda Smith de Borrero

NA Head Brand & Communications

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It all used to be so simple…

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… the World Ain’t What it Use to Be!

Fragmentation of influence is more difficult for marketers

4I1.01: Usage frequency of SN

Bases: All respondents 48325

Social networking is truly mass-market around the

world

% using social networking

5

Connections on social networks

Brands are becoming part of people’s social

networks!

N10: Brands connected to on social networks / N11: Friends connected to on social networks

Base: All respondents using SN, n=40819

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In rapid growth markets, social networks are a key

source of information on brands; marketers must

align content appropriately across regions

(Global average)

Reasons to join a brand community –

To get more information about a brand

N13: Reasons for potential brand friending?

Bases: 40382

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What Does This Mean

For Marketers & Brand

Practioners?

7

8

Commitment to your brand

Two areas of Brand Power – Mind & Market

Influence – Brand & consumer generated

In a complicated world, marketers need to focus

on the core principles of building strong brands

The role of emotion

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In a complicated world, you need a framework to provide clarity:

Welcome to the World of Influence 3.0™

Purchase

People

BRAND Generated activity

CONSUMERGenerated activity

Brands

Experience

“Consumer”

Action

Interactions

“Consumer”

Reaction

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The World of Influence 3.0™

Brand Managers need to focus on both dimensions within this framework

Purchase

People

BRAND Generated activity

CONSUMERGenerated activity

Brands

Experience

“Consumer”

Action

Interactions

“Consumer”

Reaction

11

The Vertical dimension focuses on the

relationship between brands and people

People

Brands

12

Understanding Commitment is Different – and

More Powerful – than Measuring Loyalty

Commitment - is the strength of the bond or relationship to the brand.

Commitment can erode long before actual switching occurs (i.e. loyal behavior

continues - a customer keeps buying or using a product for some period of time

before switching) and therefore, it is crucial to understand commitment.

LOYALTY

is about what people do

is about observing purchase and

repurchase behavior

“loyalists” are not necessarily

committed

COMMITMENT

is about how people feel

is about the strength of the

psychological relationship/bond

committed are as loyal as possible

We Know This---- now

what do we do differently

in the digital World!

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The horizontal dimension focuses on the different

sources of influence over the brand-person

relationship

BRAND Generated activity

CONSUMERGenerated activity

Interactions

SEE SEEK SAY

…Using a variety of information sources, including surveys, social media listening,

and clickstream observation

How Can We Help Marketers & Brand

Managers Succeed in the Digital World?

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As marketers are struggling to understand how to

operate in the new marketing eco-system of Influence

3.0™, academics & practioners who look through the

lens of consumer-brand relationship can help lead the

way.

This means that some tried-and-true methods and

practices used in research must evolve. We need to

answer Marketers SO WHAT? And SO WHAT NEXT

questions. For example,

• New & Improved Commitment/Relationship

Metrics --- Survey AND Observational

• How do we quickly gain deeper understanding

on/off-line brand-consumer relationships? We

need to answer the marketers SO WHAT

questions?

Let’s continue our discussion in the upcoming panel.

Some final words…

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INTERESTED IN EXPLORING THE LINKAGE

BETWEEN PEOPLE-BRAND COMMITMENT

AND TRADIGITAL SOURCES OF

INFLUENCE?

REVIEW THE FOLLOW (DEBRANDED)

CASE MATERIAL

AND

LET’S TALK

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© Copyright TNS 2010

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Airline Case Study

Challenge:

How can help

marketers succeed in

the new world using

the consumer-brand

relationships as a

foundation.

We have the data and

some metrics if you

have winning ideas

and time. A

debranded example

follows. 18

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12 months ago, client set out to

build a new brand in the airline

industry

12 month goal was seemingly

simple

• Build awareness

• Generate buzz

• And start to prevail over inertia

Client situation (Debranded Case)

20

21

20

18

14

12

13

7

8

5

5

3

10

7

3

5

4

5

18

21

20

26

18

21

26

13

30

13

23

16

12

4

41

32

41

38

27

38

42

19

42

18

42

24

16

5

11

20

18

17

39

26

21

59

20

62

29

57

69

89

2

1

52

2

1

1

2

2

1

1

Committed Open Aware UnavailableUncommitted Unaware

Q2 & Q3

Users Non-users

Comp 1

Comp 3

Comp 2

Comp 4

Comp 5

Comp 6

Comp 7

Comp 8

Comp 9

Comp 10

Comp 11

Original Brand

Comp 12

NEW BRAND

SALES But they aren’t getting the trial they need to build

a base of committed users…WHY?

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The client spent $70,000,000 in Media:

50% of the mix was Digital. Over 4,000,000,000

impressions were served last year!

By contrast, TV was only 30% of the mix -- with

over 2,000 TRPs

SEE

22

12 16

1 4

Recognize TV

AD

Do Not

Recognize TV

AD

Not exposed to

DigitalExposed to

Digital

% Aware of New Brand

+11 +15

+3

+4

+12

Optimum6.97

0

5

10

15

20

0 1 2 3 4 5 6 7 8 910111213141516171819202122232425262728293031323334

# of Exposures

Among Target Market*

% A

war

e o

f N

ew B

ran

d

at e

ach

leve

l of

exp

osu

re

4 billion impression yielded an

average of 29 digital exposures

SEE TV does the heavy lifting in driving the little

awareness we have. Much of the online spend was

essentially wasted

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SEE At 8 months of age, the brand is still largely

unknown

Total Brand Awareness

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PositiveNegative

New Brand (a)

Original Brand (A)

Comp 1 (B)

Comp 2 (C)

Comp 3 (D)

Comp 4 (E)

Comp 5 (F)

Comp 6 (G)

Comp 7 (H)

Baseline May-July Aug-Oct Nov-Dec

SAY Nonetheless, the launch has been powerful in

generating buzz

Brand Buzz (%)

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New Brand discussion

0% 50% 100%

Bailout TARP

Convenience Easeof Use

Customer Service

Fees

FinancialPerformance

Honesty

Online Banking

Rates

Retail Banking

25%

8%

29%

23%

19%

30%

18%

16%

25%

58%

29%

37%

31%

47%

39%

34%

30%

42%

17%

63%

34%

46%

35%

31%

47%

54%

33%

Negative

0%20%40%60%80%100%

Bailout TARP

Convenience Easeof Use

Customer Service

Fees

FinancialPerformance

Honesty

Online Banking

Rates

Retail Banking

25%

9%

18%

14%

6%

21%

7%

6%

9%

50%

36%

45%

21%

45%

26%

43%

36%

42%

25%

55%

36%

64%

49%

53%

50%

58%

49%

Negative NeutralNegative Neutral Positive

Security

On time performance

Finding Low Fares

Booking flexibility

Customer Service

Online Fees

Mishandled baggage

Comfort (more leg room)

Penalty for changes on tickets

Security

On time performance

Finding Low Fares

Booking flexibility

Customer Service

Online Fees

Mishandled baggage

Comfort (more leg room)

Penalty for changes on tickets

SAY The brand stands out – in a good way – from the

rest of brands on topics of interest

Overall travel discussion

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'A better kind of airline is one that really looks at ways of

allowing a customer ease of travel. An airline relationship

is a two way affair and if each fully understands the

function of the other there can be a relationship that

benefits both…’

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SAY Those who talk about the brand have

positive things to say

'Better airline is one

that makes you feel

secure and ensures a

pleasant and on time

flight experience’

'Basically what you've

described is what would be

my perfect airline. I think

you have taken the

customers and put them

first.’

'Everything that New

Brand offers… It is just

great.’

“New Brand seems to

find the best low fares”

‘A better airline website is

user friendly and allows me

to book and check online”

'Customer Service is crucial

which I believe yours is

already excellent at that’

27

2%

5% 5% 6%

11%

7%

15%

9%

25%

3%

7%5%

7%

13%

9%

18%

7%

22%

3%

8%

5% 6%8% 7%

16%

7%

33%

1%

5% 4%6%

14%

7%

17%

6%

0%

20%

40%Baseline May-July Aug-Oct Nov-Dec

Original

Brand

Comp 1 Comp 2 Comp 5Comp 3 Comp 4 Comp 7New

Brand

N/A

Comp 6

SEEK Those who know them want to try them

Airline Consider Switching to

28

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

ING Direct BAC Ally Capital One Wells Fargo Chase Citibank HSBC Direct Wachovia US Bank E*TRADE

Customers - Oct '09 Customers - Nov '09 Customers - Dec '09

Non Customers - Oct '09 Non Customers - Nov '09 Non Customers - Dec '09

READ AS: New Brand attracted

434,187 non customer prospects in

October of 2009

Comp 1 Comp 2 NEW BRAND Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Comp 8 Comp 9 Comp 10

SEEK And they’re checking them out online

Q4 prospect volume trend by company

2929

© Copyright TNS 2010