Social Media and Downstream Data

Members of CGT’s Downstream Data Share Group met on June 6, 2011 at the Consumer Goods Sales & Marketing Summit in NYC and engaged in a lively discussion about social media. Key discussion points included:

 

Some believe that social media sites like Facebook, Twitter, LinkedIn, Groupon, Living Social and more will eventually replace traditional marketing for generations to come. Some examples include using these vehicles for test marketing, targeting, couponing, brand building, free advertising and messaging. 

 

Some said that the more relevant it is the more engaged people will become. Others said that they don’t distinguish between traditional marketing and social marketing – the tools are different, but in the end it’s all sales & marketing.

 

It can be extremely valuable! One example given was the spread of a man named Keith Urbahn on Twitter. He tweeted about Bin Laden’s death. The measurement of tweets per second was astronomical, which raised the point – imagine your brands moving at this speed.

 

One attendee asked if anyone has been able to combine data sources - pulling transactional data into a DSR to be able to look at timing, content and so on. “That’s a big first step. It’s a lot of data. We thought store level data was hard.” It was the consensus in the room that no one was at that stage yet.

 

However, it was asked if test marketing (starting with Facebook) was being used and some examples were brought up such as sending out mailings and using zip codes to target using downstream data.

 

This branched into a discussion about using Groupon as a social vehicle. For example General Mills offered a sample pack as a test market – only 500 offered. One member said, “At least you can limit it, but is it more targeted than an FSI? Can you track it with a prime prospect?” Another point brought up was that there is a profit from consumers who never redeem from sites like Groupon and Living Social – about 30 percent profit. Plus, you can gain repeat clients.

 

It was agreed that couponing, brand building, messaging and advertising all in one vehicle is pretty powerful. Although some were skeptical asking if you can get complicated messages across and is targeting geographically available (maybe future of these sites?).

 

It was said that FB is the ‘primary browser of that generation coming up behind us’ – they don’t e-mail, all communication is FB. “The difference in my mind is not a single person lives on Amazon, but that generation lives on FB.” When is it more than a fad?

 

FB has now entered into the Groupon/Living Social category – while they don’t sell actual products, they can still offer coupons – they may not go the product route, but they are going the coupon route.

 

Do you trust FB?Most thought that it’s a generational thing. If you’re living in this environment, you are more likely to act on an impulse buy. Companies don’t need personal interaction like they used to. “The information is out there, but people are still lazy.” (i.e. ordering pizza on FB)

 

There’s still so much we don’t know about what people are thinking when they walk into a store. The intersection of social media and shopper marketing becomes a struggle about who owns the data. What if someone walked into a store and couldn’t find my product? That’s real-time information that I could act on. With Foursquare, your consumer is going to be your merchandiser and report stock-outs.

 

You can now advertise on XBOX. The next step would be to see an ad and order while playing a game.

 

There was an online company called Cosmo – it was excellent but didn’t last long because the business model didn’t work. But the concept was amazing.

 

One group member offered an example of something that worked for them: They put an 800 number on their display for consumers to call when they don’t know what to buy. It was extremely successful and after the meeting several participants noted that as an item they intended to take back to their organization.

 

Companies can use QR codes. “QR codes are the new RFID in my mind – but they are cheaper.” The problem is that they are spotty in scanning. They’re great conceptually, but the technology to implement it is behind.

 

Some companies purchase technology so far out that they cannot go back and invest in more technology. Data will be difficult to manage, but it is manageable – by a third party.

 

One member said she that she loves these tools and services as a consumer, but hates them as a business person – especially when it comes to price point. Companies spend a huge amount of time setting up prices and then it goes out the window when the consumer looks for the lowest price using these services.

 

From there, Share Group sponsor VMT led a discussion on key challenges. Key points included:

 

 

In closing, CGT would like to thank everyone who attended the meeting for making it exactly what it is meant to be – a true share group. The next meeting will be June 30, 2011 at 2:00 PM EST.