Social Media Mashup — 2018 Edition

One thing you can say about social media platforms – their world is invariably interesting. Or as a colleague of mine likes to say, “With social media, you drop your pencil, you miss a week.”

The Pew Research Center makes it a point to study the topic twice each year in order to stay on top of the latest shifts in social media usage trends. Pew has just completed its latest report, and what it shows are some findings that confirm longer-term trends along with several evolving new narratives.

One thing hasn’t changed much: Facebook and YouTube continue to dominate the social landscape in the United States.  Facebook remains the primary social media platform for most Americans – with two-thirds of U.S. adults reporting that they use Facebook, and three-fourths of those saying that they access the platform on a daily basis.

What this means is that half of all U.S. adults are going on the Facebook platform every day.

If anything, YouTube is even more ubiquitous – at least in terms of the percentage of people who access the platform (nearly 75% of the respondents in the Pew survey). But the frequency of visits is lower, so one could say that the platform isn’t as “sticky” as Facebook.

No other social media platform is used by more than 35% of American adults, according to the Pew survey:

  • YouTube: ~73% of U.S. adults report that they use this platform
  • Facebook: ~68%
  • Instagram: ~35%
  • Pinterest: ~29%
  • SnapChat: ~27%
  • LinkedIn: ~25%
  • Twitter: ~24%
  • WhatsApp: ~22%

The chart below shows social media usage trends based on Pew Research studies going back to 2012:

Taking a closer look at social media behaviors reveals some stark differences by age group, and they portend even greater changes in the social media landscape as time goes on. In terms of being involved in “any” social media usage, Pew finds significant differences by age cohort:

  • Age 18-29: ~88% use at least one form of social media
  • Age 30-49: ~78%
  • Age 50-64: ~64%
  • Age 65+: ~37%

So, as the current population ages out, social media participation should go even higher.

But what about the composition of platform usage? Within the 18-24 age group, Snapchat, Instagram and Twitter are used significantly more when compared to even the next oldest age group.  Most dramatically, for Snapchat the participation level is ~78% for the youngest group compared to just ~54% for those age 30-49.

Other notable differences among groups include:

  • Pinterest is much more popular among women (~41% use the platform) than with men (just ~16%).
  • WhatsApp is particularly popular among American Hispanics (~41%) compared to blacks (~21%) and whites (~14%).
  • LinkedIn’s niche is upper-income households ($75,000+ annual income), which correlates to higher education levels. Half of American adults with college degrees use LinkedIn, compared to fewer than 10% of those with a high school degree or less.

More detailed results from the Pew Research study can be found here.

For brand loyalty … follow the money.

When it comes to brand loyalty, are we mercenaries? Loyalists?  Cultists?

Or maybe we’re just lazy?

With major brands spending billions of dollars each year using various strategies to build and keep brand loyalty, these questions are important.

Recently-published consumer research by Maritz Motivation Solutions and Wise Marketer Group seeks to get to the nub of the issue.

Maritz/Wise surveyed nearly 2,100 American adults age 18 and over via online questionnaires and consumer research panels. The respondents were filtered to include purchase decision-makers or key influencers within one or more of six major consumer categories:

  • Airline travel
  • Banking services
  • Credit card services
  • Hotels/lodging
  • Restaurants
  • Specialty retails

The results of the research reveal that brand loyalty isn’t one monolithic mindset, but consumers tend to fall into one of four categories, as follows:

  • “Mercenaries” – Loyal to brands that pay them to be loyal: ~55% of respondents
  • “True loyalists” – Stay true to a brand because people connect with it above and beyond any explicit incentives to do so: ~30%
  • “Sloths” – Can’t be bothered to switch brands due to inertia: ~8%
  • “Cultists” – The brand represents their personal identity: ~7%

What the Maritz/Wise research also tells us is where people come down on brand loyalty attributes is based more on attitudinal characteristics than something that can be segmented easily based on conventional demographics.

In other words, brand loyalty characteristics aren’t driven by age, gender or income level; mercenaries and cultists are found in their expected proportions across the spectrum of loyalty.

In another finding, when it comes to the “transactional” nature of brand loyalty, the research discovered that the “art of the deal” is based on money.

Gift cards, cash-back and credits are overwhelmingly preferred forms of reward for brand loyalty – and these apply to everyone no matter where they may land on the brand loyalty spectrum.

So, the next time we hear the old saw that “money can’t buy love” … we all know that the truth is a bit more nuanced.

Gord Hotchkiss and the Phenomenon of “WTF Tech”

Gord Hotchkiss

Occasionally I run across an opinion piece that’s absolutely letter-perfect in terms of what it’s communicating.

This time it’s a column by marketing über-specialist Gord Hotchkiss that appeared this week in MediaPost … and he hits all the right notes in a piece he’s headlined simply: WTF Tech.

Here is Hotchkiss’ piece in full:

WTF Tech

By Gord Hotchkiss , Featured Contributor, MediaPost

Do you need a Kuvée?

Wait. Don’t answer yet. Let me first tell you what a Kuvée is: It’s a $178 wine bottle that connects to WiFi.

Ok, let’s try again. Do you need a Kuvée?

Don’t bother answering. You don’t need a Kuvée.

No one needs a Kuvée. The earth has 7.2 billion people on it. Not one of them needs a Kuvée. That’s probably why the company is packing up its high-tech bottles and calling it a day.

A Kuvée is an example of WTF Tech. Hold that thought, because we’ll get back to that in a minute.

So, we’ve established that you don’t need a Kuvée. “But that’s not the point,” you might say. “It’s not whether I need a Kuvée. It’s whether I want a Kuvée.” Fair point. In our world of ostentatious consumerism, it’s not really about need — it’s about desire. And lord knows many of the most pretentious and entitled a**holes in the world are wine snobs.

But I have to believe that, buried deep in our lizard brain, there is still a tenuous link between wanting something and needing something. Drench it as we might in the best wine technology can serve, there still might be spark of practicality glowing in the gathering dark of our souls. But like I said, I know some real dickhead wine drinkers. So, who knows? Maybe Kuvée was just ahead of the curve.

And that brings us back to WTF tech. This defines the application of tech to a problem that doesn’t exist — simply because it’s tech. There is no practical reason why this tech ever needs to exist.

Besides the Kuvée, here are some other examples of WTF tech:

The Kérastase Hair Coach

This is a hairbrush with an Internet connection. Seriously. It has a microphone that “listens” while you brush your “hear,” as well as an accelerometer, gyroscope and other sensors. It’s supposed to save you from bruising your hair while you’re brushing it. It retails for “under $200.”

The Hushme Mask

This tech actually does solve a problem, but in a really stupid way. The problem is obnoxious jerks that insist on carrying on their phone conversation at the top of their lungs while sitting next to you. That’s a real problem, right? But here’s the stupid part. In order for this thing to work, you have to convince the guilty party to wear this Hannibal Lecter-like mask while they’re on the phone. Go ahead, buy one for $189 and give it a shot next time you run into a really loud tele-jerk. Let me know how it works out for you.

Denso Vacuum Shoes

“These boots are made for sucking, and that’s just what they’ll do.”

Finally, an invention that lets you shoe-ver your carpet. That’s right, the Japanese company Denso is working on a prototype of a shoe that vacuums as you walk, storing the dirt in a tiny box in the shoe’s sole. As a special bonus, they look just like a pair of circa 1975 Elton John Pinball Wizard boots.

When You’re a Hammer

We live in a “tech for tech’s sake” time. When all the world is a high-tech hammer, everything begins to look like a low-tech nail. Each of these questionable gadgets had investors who believed in them. Both the Kuvée and the Hushme had successful crowd-funding campaigns. The Hair Coach and the Vacuum Shoes have corporate backing.

The dot-com bubble of 2000-2002 has just morphed into a bunch of broader-based — but no less ephemeral — bubbles.

Let me wrap up with a story. Some years ago, I was speaking at a conference and my panel was the last one of the day. After it wrapped, the moderator, a few of the other panelists and I decided to go out for dinner. One of my co-panelists suggested a restaurant he had done some programming work for.

When we got there, he showed us his brainchild. With much pomp and ceremony, our waiter delivered an iPad to the table. Our co-panelist took it and showed us how his company had set up the wine list as an app. Theoretically, you could scroll through descriptions and see what the suggested pairings were. I say theoretically, because none of that happened on this particular night.

Our moderator watched silently as the demonstration struggled through a series of glitches. Finally, he could stay silent no longer. “You know what else works, Dave? A sommelier,” he said. “When I’m paying this much for a dinner, I want to talk to a f*$@ng human.”

Sometimes, there’s just not an app for that.

_______________________

Does Gord Hotchkiss’ column resonate with you as it did me? Feel free to leave a comment for the benefit of other readers if you wish.

In digital retail, there’s Amazon and then there’s … everyone else.

When it comes to online retailing in the United States, Amazon’s been cleaning up for years. And now we have new data from comScore that reveals that Amazon is as dominant online today as it’s ever been.

This chart illustrates it well:

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* MediaMetrix Multi-Platform, US, December 2017. Source: comScore 2018 State of the U.S. Online Retail Economy.

The chart shows that when comparing actual time spent by Americans at each of the Top 10 online retailers, Amazon attracts more viewing time than the other nine entities combined.

Even when considering only mobile minutes, where so much of the growth is happening for digital retailers, Amazon’s mobile viewing time exceeds the combined total digital traffic across eBay, Walmart, Wish, Kohl’s and Etsy.

Pertaining to the mobile sphere, there is an interesting twist that comScore has found in consumer behavior. It turns out, there’s a considerable disparity between the amount of time spent with mobile compared to its share of dollars spent – to the tune of a 40% gap:

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MediaMetrix Multi-Platform and ecommerce / mCommerce Measurement, Q4 2017. Source: comScore 2018 State of the U.S. Online Retail Economy.

In essence, the data show that whereas mobile represents nearly two-thirds of the time spent with online retail, it accounts for only one-fourth of the dollars spent on goods and services.

But this difference is easy to explain:  As the largest player in the field, Amazon fulfills a role similar to what Expedia or Trivago do in the travel industry.

Amazon gives consumers a way to scan the marketplace not only for product details but also for prevailing prices, giving them a sense of the expected price ranges for products or services — even if they ultimately choose to purchase elsewhere.

Consumer reviews are important to online shoppers. So, are more people participating now?

Based on new research, the time-honored “90-9-1 rule” may no longer be accurate.

The 90-9-1 rule states that for every 100 people active online, one person creates content … nine people respond to created content … and 90 are merely lurkers – consuming the information but not “engaging” with it at all.

But now we have a survey by ratings and reviews platform Clutch which suggests that the ratio may be changing. The Clutch survey finds that around 20% of online shoppers have written reviews for some of their purchases.

That finding would seem to indicate that more people are now involved in content engagement than before. Still, when just one in five shoppers are writing and posting customer reviews, it continues to represent only a distinct minority of the market.

So, the big question for brands and e-commerce providers is how to encourage a greater number of people to post reviews, since such feedback is cited so often as one of the most important considerations for people who are weighing their choices when purchasing a new product or service.

A few of the ways that businesses have attempted to increase participation in customer reviews include:

  • Make the review process as efficient as possible by requesting specific feedback through star ratings.
  • Provide additional rating options on product/service performance sub-categories through quick guided questions.
  • Offering incentives such as a contest entry might also help gain more reviews, although the FTC does have regulations in place that prohibit offering explicit incentives in exchange for receiving favorable reviews.
  • Providing timely customer service – including resolving products with orders – can also increase the likelihood of garnering reviews that are positive rather than negative ones.

This last point is underscored by additional Clutch results which, when the survey asked why online shoppers write reviews, uncovered these reasons:

  • Was especially satisfied with the product or service: ~33%
  • Received an e-mail specifically requesting to leave feedback: ~23%
  • Was offered an incentive to leave feedback: ~5%
  • Was especially dissatisfied with the product or service: ~2%

For companies who might be concerned that negative feedback will be given lots of play, the 2% statistic above should come as some relief. And even if a negative review is published, the situation can often be rectified by reaching out to the reviewer and providing remedies to make things right, thereby “turning lemons into lemonade.”

After all, most consumers are pretty charitable if they sense that a company is making a good-faith effort to correct a perceived problem.

In survey research, money talks … but to what degree?

For anyone who has attempted to survey consumers and businesses, it’s pretty universally understood that in order to boost the response rate, you need to give people a “WIIFM” reason to respond.

And that WIIFM incentive is often money. But what kind of monetary incentive works best these days, considering all of the different ways that people are being asked to participate in surveys?

One thing’s for sure: the trend data on response rates isn’t encouraging.  In 1997, the average response rate on telephone surveys was around 36%.  As of 2012, the percentage had nose-dived to just 9%.

It can’t have gotten any better in the five years since.

Recently, the Gallup organization set about to determine response rate dynamics in relationship to the types of monetary incentives offered. To do this, Gallup took the alumni listing from a major American university and deployed online surveys to three target groups of names drawn from it.

Each group was made up of randomly selected names, and each group received the exact same survey. The only difference was in in the incentive offered for recipients to respond to the survey:

  • Group A: 10,000 targeted people received no monetary incentive
  • Group B: 1,000 targeted people were promised a $5 gift card after completing the survey (post-paid incentive)
  • Group C: 1,000 targeted people received a gift card as part of the survey invitation (pre-paid incentive)

The Gallup test revealed that, as expected, offering a monetary incentive had a significant impact on the survey response rate:

  • Group A: 13% response rate
  • Group B: 20% response rate
  • Group C: 19% response rate

But perhaps more interestingly, the results suggest that a pre-paid incentive isn’t quite as strong as offering a monetary reward that comes after filling out the survey. Albeit, the results are very similar, so no definitive conclusions can be drawn.

What is clear, though, is that offering a monetary incentive of some kind does dramatically improve survey results – to the tune of ~50% higher.

Moreover, the Gallup research found no behavioral differences between income groups, suggesting that the “psychology” of being offered a token of appreciation for the survey-taker’s time is something universally appreciated, rather than it being tied to particular respondent characteristics like financial status.

Additional information about the Gallup research can be accessed here.

Changing Buying Behaviors: Clues from Thanksgiving Weekend 2017

If there was any doubt that we’re in the midst of fundamental changes in consumer buying behaviors, the results from the opening days of the 2017 holiday season have put such questions to rest.

Movable Ink, a firm that enables content personalization within e-mails, has just published some insightful statistics it compiled from Thanksgiving weekend last month.  Movable Ink logged nearly 438 million e-mail opens between the Wednesday before Thanksgiving and the following Cyber Monday. What did it find?

To start with, it found that recipients engaged with them.

Of the e-mails sent on Black Friday, nearly 50% achieved read lengths of at least 15 seconds. On Cyber Monday, the results were nearly the same (~46%).

Fifteen seconds may not seem like a long time to engage with an e-mail, but it’s light years compared to what is often experienced in consumer e-retail.

Movable Ink also found that the majority of the e-mails were opened on smartphones — far outstripping desktops and tablets:

  • Smartphones: ~53% of e-mail opens
  • Desktop computers: ~25%
  • Tablet opens: ~16%

An equal 53% of conversion actions happened on smartphones … but desktop conversions proved to be higher than their open stats, and e-mails opened on tablets were much less likely to experience conversions:

  • Smartphone: ~53% of e-mail conversions
  • Desktop computers: ~38%
  • Tablets: ~8%

Consumers were certainly in a buying mood over the holiday weekend, with purchases averaging between $120 and $140 on each of the four days of the long weekend:

  • Black Friday: An average of $124 spent
  • Saturday: $120
  • Sunday: $119
  • Cyber Monday: $141

However, while smartphones led in terms of e-mail engagement, when it comes to actual dollar sales smartphones come in last – by a country mile:

  • Desktop computers: ~$162 average holiday weekend total spend
  • Tablets: ~$107
  • Smartphones: ~$85

We can acknowledge that smartphones have become the most important method for reaching consumers with product content, coupons and special offers.  And yet, significantly more purchasing continues to happen on desktops.

One takeaway is that for all of the convenience smartphones purport to provide, the purchasing experience on mobile devices doesn’t yet match the experience on desktop computers.

It would also help if there was more similarity between the purchasing process sellers are delivering across all platforms. That continues to be a missing ingredient with some sellers, and it’s likely explaining at least some of the dampening effect on mobile sales revenues.