The study reports that only four percent of U.S. online adults use location-based mobile apps such as Foursquare, Gowalla and Loopt. Only one percent update these services more than once a week. Even more, a good majority of respondents—84 percent—claimed they were unfamiliar with the apps, a number to surely make companies rethink how necessary it is to start a marketing campaign using LBSNs.

Those numbers may seem like LBSNs aren’t a great investment at this time, but the report calls for another look. Among location-based service users, almost 80 percent of them are male and about 70 percent of them have a college degree and are between the ages of 19 and 35. Even more importantly, Forrester discovered these users are highly influential. They are far more likely to research products and read customer reviews and frequently have family and friends coming to them for advice before purchasing a product. In this sense, companies in the gaming, electronics and sportswear industry that target their marketing plan to men may want to include an early adoption of LBSNs.

Still, plenty of companies have launched marketing plans with location-based apps that aren’t just for the guys, including PepsiCo and Starbucks. When deciding whether LBSNs are right for you brand, consider your demographic and marketing plan’s goals. Weigh whether you want to establish yourself early in the location-based marketing playing field or whether you’d rather sit in the bullpen and wait until the user numbers grow to give it a try. Like every other marketing plan for a retailer, whether it be holding a sweepstakes, advertising or social networking, location-based mobile apps can be just another tool in a well-stocked toolbox.

Like many others in recent days, Owyang takes a look at the trends of 2009 that drive the decisions of the future. He identifies four key trends that senior marketing execs should give some thought to.

“The Recession Spurred Consumers to Adopt Social Technologies.” It’s not just the enabling technology that caused the movement. Hard financial times also drive people to connect to one another. High unemployment levels also contribute by giving people more time to connect. Motive, means and opportunity equals the perfect storm.

“Some Brands Followed Suit with Social Marketing.” The story says that print budgets have been cut by 37% and television by 21%. Brands are hurting too, so it makes sense that they also look for lower cost means and innovation. More money is being directed at Social Marketing due to its low cost and high return.

“Social Networks Share Data, Spreading Social Influence.” Social networks are connecting with other systems. This means the consumer experience can spread like wildfire because opinions and experiences won’t be limited by software or service provider.

“Consumers Move Faster By Sharing Real-Time Data.” A bad customer experience can now travel to the masses at the speed of thought. Real time updates allow instant feedback so brands have to learn to move faster. Even good service recovery practices may now be too late to turn the tide.

Included in the top 10 are: Coca-Cola, Starbucks, Disney, Victoria’s Secret, iTunes, Vitaminwater, YouTube, Chick-fil-A, Red Bull and T.G.I. Friday’s. The criteria for this list was having at least 200,000 friends, employing a dedicated social media staff, length of Facebook presence and amount of money spent on social media.

In general, these companies have continued to offer fresh and original Facebook content and material resulting in a tremendous amount of interest from followers. The ratings also found their Facebook presence to be well integrated with a broader marketing approach.

The names on the list speak volumes about the need to engage in establishing a touch point with consumers via social media. Major brands are embracing the philosophy and are seeing great reward.

An article in Progressive Grocer reported on a consumer study of digitally connected consumers and found that, “43 percent of those following brands on Twitter do so because of exclusive deals or offers.” By comparison, that soundly beats interesting content, current customers or service support as a reason to follow the brand. The same can be said of Facebook where 37 percent said they follow because of the deals.

The article is not suggesting that building strong relationships with consumers via social networking is not important. Quite the contrary, the message is that building brands will include using the medium to create a great customer experience rather than a one-way ad message communication. The survey concludes that, “Social media tools are pushing greater customer information access, putting more pressure on brands to live up their words with actions.”

Using a good deal or promotion just seems to be the most effective current way to hook the consumer into the complete product experience. Once hooked, consumers can be exposed to content, information and conversations about products that can build and sustain your brand in the “new mainstream.”

To make a long story short, a band was traveling on United Airlines when one of the members noticed baggage handlers throwing their musical instruments as they unloaded the aircraft. After trying to get immediate help followed by nine months of trying to get some satisfaction from airline customer service representatives, the band pledged to write a protest song and put the video on YouTube. They did just that and within five days, “United Breaks Guitars” became a smash viral video. Over one million people downloaded the video in its first five days.

It’s another cautionary tale. Disgruntled consumers now have powerful recourse. In this case, the airline had nine months to address a seemingly reasonable request, and couldn’t come up with an answer. In the end, the band was offered compensation, but chose to have it donated instead. Had United demonstrated even an inkling of the band’s public relations know how, they could have avoided the incident altogether.

Perhaps it’s time to apply the, ‘United Guitar,” test to all interactions with consumers who are seeking help with a customer service or quality issue. Ask yourself a very simple question: Could my action or inaction end up making my organization a poster boy for all that’s bad in the world of large companies who allow policies and procedures dictate the customer experience. If the answer is yes, it should set of an immediate alarm.

Better yet, use the example of the band and how they used social media to become consumer advocates. Getting involved in the conversation rather than fighting it seems to be an easier way to strike the correct chord.

According to a recent study by Forrester Research, nearly two-thirds of today’s retailers already use social media and 22 percent are looking to do so in the upcoming year. Are you taking full advantage of the social web in your business? If not, why not?

Confusing and often misunderstood, “social media” is simply another name for the content that millions of individuals are creating on the web every day. It’s what people are posting on blogs, message boards, picture- and video-sharing sites and social networks like Facebook and Twitter. But why should retailers like you care about social media?

With the advent of social media, every phase of the traditional consumer retail process has evolved …from the way shoppers research and buy to the voice the web gives them to share their opinions, thoughts and experiences with the products and stores they frequent. For example, whereas a shopper once may have only talked to a few close friends prior to buying, she now can consult thousands of people online to get their feedback – all with the click of a button.

As a compliment to traditional research tools such as surveys or focus groups, tapping into the social pulse of your customers where they live on the web allows you to hear firsthand what they’re talking about of their own accord without soliciting feedback. When you listen in to what your customers are saying, you get an unparalleled insight into what they’re really passionate about and how they truly feel about your products and services.

That’s why incorporating a social media monitoring and action plan into your business is essential if you want to take advantage of a variety of powerful new ways to connect with and learn from your customers.

Let ICC/Decision Service show you how to effectively use social media as your newest best tool to drive and improve your total business.

BENEFITS

- Monitor what people are saying about your company across all social media, including blogs, forums, social networks, photo-sharing sites, video-sharing sites, Twitter, and more.
-Build stronger customer relationships and loyalty with authentic dialogue.
-Meet your consumer where they live, work and play on the web.
-Optimize your strategies with actionable, real-time intelligence and up-to-the-minute metrics.
-Influence the conversation, shape the experience and get the social web talking – all to benefit your business.

HOW IT WORKS

Our SMART ™ (Social Media Assessment & Response Tool) product was developed in order to provide retailers with simple, proven, practical, turnkey and actionable solutions which overcome the challenge of integrating social media into every aspect of your business.

Creating a comprehensive social media plan will help you locate, assess and respond constructively to the current buzz surrounding your company. A well-planned program will allow you to evaluate the state of your brand, gain valuable consumer insights, track the impact of current marketing campaigns, identify common customer issues, and reveal and respond to threats to your reputation.

We’ll work with you to customize a program that allows you to quickly and easily understand your customers’ opinions, shape the ongoing conversation, identify trends and insights and offer actionable recommendations to improve your share of the conversation across the web.

CONTACT US

For the past 30 years, we have helped national retailers listen, interact and respond to consumers. Now is no different. Learn more about how ICC/Decision Services can put our Social Media Smart Tool to work for you. Let us develop a custom monitoring and action program that will allow you to optimize your sales, marketing and positioning initiatives on the web and beyond.

ICC Decision Services is a leader in customer experience management programs. Our services include mystery shopping, customer intercepts, social media tools, & compliance audits. We serve industries such as retail, restaurants, grocery, & drug stores/pharmacies.

Contact us today for additional information
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The author states that the tools are designed to create a dialogue in which all employed communication media use empirical data while getting a chance to engage directly with the customer. This is in stark contrast to traditional means of speaking “at” the consumer and telling them what they should and should not think.

What this means is that social media is causing marketers to rethink the way that they reach their target audience. And while sixty percent of the participants said that existing techniques for understanding consumers need to be improved, they are not completely sure yet how to go about it.

Implementing a true customer engagement strategy has its obstacles. They include the integration of online with database marketing and offline channels. There is also the ability to assess or manage internal infrastructure and culture challenges and the integration of all the technology.

While there is still much to figure out, it’s clear that maximizing your customer engagement efforts using social media is a requirement to cultivate consumer relationships. The winners will be the first ones to use the tools and figure out how all the pieces fit together.

A report filed by DEI Worldwide called, “The Impact of Social Media on Purchasing Behavior tells us that 70% of consumers consult Social Media Websites when searching for information on a product or service. That is the number one source ranking ahead of Company Websites (68%). The reason for this is obvious. Because of the endless supply of communication outlets available, it is no longer acceptable to take a number, be batch processed, or be put on hold. Customers want a place to rant and rave right here, right now.

That sounds like bad news if you’ve been off the planet for the last year and a half. But companies shouldn’t panic. All they have to do is join the conversation. According to DEI, “Companies not engaging in social media as part on their on-line marketing strategy are missing an opportunity to reach consumers.” The report says that talking to a brand representative online sends a powerful and positive message. Sixty-seven percent said they are likely to pass information from brand representatives on to others.

Maybe it’s the tail wagging the dog, but Social Media outlets enable both the customer service challenge and the solution. It’s this simple: customers require direct, individual one-on-one attention or they are going somewhere else and will bring their friends with them. Being comfortable enough in your own skin to engage these consumers online, immediately closes the loop on an individual basis and provides invaluable word of mouth that your newfound friend will text, tweet or telephone with others.

Express advertises on the bottom of customer’s receipts to follow their CMO @ExpresslisaG on Twitter. Zappos, potentially the kind of retail Twitter, has successful used social media to stay connected with consumers on everything from busineess operations, team members, and customer service. @DellOutlet offers deals to Twitter followers, and @Comcastcares is a consumer’s direct channel to voice concerns.

The retail industry can use Twitter for product promotions, customer experience management, and brand appeal. There is virtually endless possibilities to how a retailer or brand could use open communication with consumers to better their customer experience.

One individual is testing a device to link RFID tags to Twitter. Mediapost reported digital agency R/GA’s Richard Ting has successfully linked RFID tags to Twitter. When the tag is scanned, a preconditioned Tweet is sent out. There is potential for the same technology to be used by merchandisers or mystery shoppers in store. A real time feedback of a display with missing product, products not properly set up, or real time customer experience feeback. The opportunities to for all levels of an organization to connect with consumers using social media is unlimited.

How are you using Twitter in your business?

A BNET article recently highlighted CVS’s plans to improve to the online customer experience. CVS is pairing up with Google Health to provide customer’s with a smoother and comprehensive experience with their health care.

CVS and Google partnership will allow customers to access their prescriptions, medical history, and MinuetClinic visit records through their Google Health Account. CVS could have created their own program, but realizing customers aleadry have an established relationship with Google, is understanding the consumers’s needs. The partnership will hopefully attract consumers to use CVS as their one stop shop for prescriptions.

Front running retailer will work diligently towards meeting the customers online and in store needs. The online store front gives retailers the opportunity to fill the needs of web savvy consumers and build an attractive platform to draw consumers in store. CVS’s move to work with Google Health Accounts is the right move to simplify using the digital and in store experience.

The key to online and in store customer experience is to listen to your consumers. Know what type of consumer shops in store or online, and then tailoring the experience. It’s important both the online and in stores experiences are positive and reflective of one another.

What are the best expereinces you’ve had with a retailer onine and in store?

Brands all across the board are using social media to attract consumers. Pepsi, Frito Lay, Old Navy, and Zappos are just a few who have run web based marketing campaigns. Research shows online retail sales are doing significantly better then the brick and mortar companions. The digital shift is calling for retailers to pay close attention to the online customer experience.

Social media sole use is not just in marketing or advertising. Emphasis and experimentation with using Twitter as a customer experience tool has Sam’s Club and Lands End following Zappos’s successful lead.

AdAge announced the explosion of Coupons.com, who witnessed a 192% increase from last year. Price conscious consumers, who are also web savvy, are flocking to the internet for coupons. A new iPhone app called Coupon Sherpa will catapult coupons and retailers further to the digital connection. The app will display a list of retail business and their available coupons for redemption. Smart Phone apps such as Coupon Sherpa, will require cooperation from brands and retailers to ensure stock levels, displays, and staff are aware of the promotions.

As our interaction with consumers start to unfold online, retailers will need to ensure the experience is replicated in house. A coupon may draw consumers to Kroger’s, but if the items isn’t stocked or end cap display isn’t complete, the promotion fails.

The connections between online and offline will soon be a retailers main challenge. Successful promotions will start offline but end with quality follow through in the store. Failure to install an in store promotion could ruin the entire process. Customers will loose faith in the retail store, the brand, online promotion site, and marketing, if there is any disconnect.

It is essential for brands and retailers to monitor actions in store. The final stop in the customer experience is at the point of sale. Everything from shelf display, customer service reps, and packaging will reflect back to the digital campaign. It’s extending the customer experience management program from the Facebook page all the way to the clerk.

A major concern is how to measure the ROI on such efforts. There still is not direct correlation except the need to communicate with consumers. The trend combining word of mouth marketing through social networking, is proving to be a launch pad for brands. As the numbers increase, the fan pages grow, but will the amount of marketing your brand online overwhelm consumers? Will consumers eventually stop listening?

However, if a brand or retailer decides to engage social media, there is one definite benefit : connecting with consumers. In the non-traditional forms of advertising, social media can provide a platform for brands to strengthen their customer experience and tap into market demands. The key is to listen. For the brands who are listening to consumers, a wealth of information can be revealed.

Smart brands are starting to use social media as a marketing and research tool. Still, there are thousands of brands choosing not to embrace social media. Here are some ways in which brands are using social media and ways your brand might think about starting to:

1. Research marketing
Brands that are using Twitter can monitor what consumers are saying about their product. It’s a nonintrusive way into the hearts of your market. The data is not compiled into a nice business report, but if you want to see the impact of a recent social media campaign (just look at Motrin’s) or new product release, follow your market on Twitter.

2. Branding Personality
Lou Cohen made an excellent point that brands have personality. Social media allows brands to show their personality to their market through non traditional advertising. Some brands have moved into the blogging community, take a look at Alltop.com’s corporate blogs to see some. For instance, Clorox bleach has a blog with cleaning and useful tips for using their product. Sure, they could take the approach of publishing a quarterly magazine or advertisement with the tips but instead they decide to engage their consumers with non-direct marketing approach.

There is an immense amount of discussion on whether or not brands should be on social media such as Twitter. The fact is brands that want to be in tune with their consumers, NEED to be. The right way for a brand to use Twitter is to listen and respond to consumer needs. Avoid the blasting marketing campaign as consumers may take offense to the disregard of their opinion. If your brand who wants to build a reputation for being in touch with consumers, don’t let the social media boat sail by. Jump on board and get in the conversation.