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How can brands tap into the world’s biggest focus group — the global population constantly interacting on social media and sharing their brand experiences online?

While social listening, the practice of monitoring and analysing online conversations about a brand, industry, or product, and traditional research methods deliver strategic and tactical insights, unlike conventional research, social listening enables brands to examine millions of individuals simultaneously, regardless of their location or the time, to provide a window into what touches and motivates them.

This scalability lends social listening versatility, making it suitable for various applications, including using it as a tool for brand strategy.

With over 4.5 billion people active on social media, the focus for brands extends beyond just counting likes or shares. These platforms have transformed into rich sources of consumer insights, providing crucial data that can significantly influence and shape brand strategies.

What is Social Media Listening?

Social Media Listening, often called social monitoring, involves tracking and analysing conversations and trends on social media platforms about specific topics, brands, or industries. This process is not just about gathering data; it’s about interpreting the information to gain insights into public opinion, consumer behaviour, and market trends.

60% of companies use social media listening to gather customer insights, influencing their decision-making (HubSpot).

The Evolution of Social Media Listening

Once a rudimentary tool for tracking brand mentions, social media listening has transformed into a sophisticated means of extracting actionable insights. This evolution is driven by the need to understand the ever-changing consumer world. Brands that effectively harness these insights can tailor their strategies to meet evolving consumer preferences, giving them a competitive edge.

Utilising Insights for Brand Strategy

The real power of social media insights lies in their application. Companies can leverage these insights for various aspects of their brand strategy, including product development, customer service, marketing, and reputation management.

Product Development

Insights from social media can inform product development in profound ways. Understanding what consumers say about a product, their needs, and preferences can guide the creation of new products or the improvement of existing ones.

Customer Service

Social media is often the first place consumers turn to for support or to voice their concerns. Monitoring and responding to these interactions efficiently solves customer issues and builds brand loyalty and trust.

Marketing and Branding

Social media insights can shape marketing campaigns and branding efforts. By understanding audience sentiment, brands can create more targeted and relevant campaigns that resonate with their audience.

Reputation Management

Negative sentiment on social media can spread like wildfire. Proactive reputation management, informed by social listening, allows brands to address issues before they escalate, maintaining a positive brand image.

71% of consumers with a positive experience with a brand on social media are likely to recommend the brand to others (Forbes).

Negative Sentiment and Brand Strategy

Addressing negative sentiment is just as important as leveraging positive feedback. Here’s how brands can manage negative views:

Rapid Response: Addressing issues quickly can prevent them from escalating.
Understanding the Root Cause: Analyse negative feedback to understand underlying issues.
Engaging in Dialogue: Transparent communication can turn negative experiences into positive outcomes.
Learning and Adapting: Use negative feedback as a learning opportunity to improve products and services.

Social Media Listening in the Digital Age

In the digital age, where social media platforms are integral to daily life, understanding the conversations happening on these platforms is crucial for any brand. Here’s why social media listening is so important:

Real-Time Consumer Insights: Social media provides immediate feedback from consumers. Brands can use this information to understand customer preferences, pain points, and expectations in real-time.

Brand Health Monitoring: Social media listening helps brands gauge their reputation. Positive and negative feedback is a barometer for brand health and customer satisfaction.

Competitive Analysis: Monitoring conversations about competitors can provide insights into their strategies, strengths, weaknesses, and customer reception. This information is invaluable for staying competitive.

Brands that engage on social media channels see higher customer loyalty, with a 53% increase in customer retention (Brandwatch).

Identifying Trends and Opportunities: By tracking broader conversations in their industry, brands can spot emerging trends, enabling them to capitalise on new opportunities or pivot their strategies as needed.

Crisis Management and Prevention: Social media listening can be an early warning system for potential issues or crises, allowing brands to take proactive steps to mitigate negative impacts.

Enhanced Customer Engagement: Engaging with customers based on insights from social media listening can lead to stronger relationships, increased loyalty, and better customer retention.

Targeted Marketing Strategies: Understanding audience sentiment and preferences enables brands to create more effective, targeted marketing campaigns.

Innovation and Product Development: Feedback and discussions on social media can inspire new ideas and inform product development, ensuring that new offerings are aligned with customer needs and desires.

Social Media Listening for Brand Reputation

Proactive Reputation Management: By continuously monitoring social media, brands can quickly identify and address negative sentiments or misinformation before they escalate, safeguarding their reputation.

Positive Engagement: Responding to positive mentions and engaging with customers strengthens brand loyalty and enhances reputation. A brand that listens and interacts is seen as more relatable and trustworthy.

Crisis Response: In times of crisis, social media listening provides real-time insights, allowing brands to respond promptly and effectively, which is crucial in maintaining consumer trust.

Brand Advocacy: By understanding and acknowledging what customers appreciate, brands can nurture brand advocates — satisfied customers who willingly promote the brand through their social networks.

28% of brands find listening to social media is crucial for crisis management and preventing potential PR disasters (Sprout Social).

Social Media Listening for Insights into Customer Sentiments

Understanding Customer Preferences: Social listening uncovers what customers like or dislike about a product or service, providing valuable feedback for improvement or innovation.

Identifying Pain Points: Customers often turn to social media to express frustrations. Listening helps brands identify and address these issues, enhancing the customer experience.

Segmentation and Personalisation: Insights from social media can inform customer segmentation and lead to more personalised marketing strategies, resonating more effectively with different audience groups.

Customer Journey Mapping: By monitoring customer conversations, brands can understand various touchpoints in the customer journey, helping to optimise these interactions for better engagement and conversion.

Using Social Media Listening to Gain a Competitive Edge

Competitive Intelligence: Social media listening provides insights into competitors’ strategies, strengths, and weaknesses, offering opportunities to differentiate and capitalise on gaps in the market.

Market Trend Analysis: Brands can stay ahead of the curve by identifying and acting on emerging trends and shifts in consumer behaviour observed through social media discussions.

Innovative Strategies: Insights gained can inspire creative marketing, product development, and customer service strategies that set a brand apart.

Risk Mitigation: By understanding the environment, including potential threats from competitors, brands can develop strategies to mitigate risks and protect their market position.

Key Strategies Derived from Social Media Listening

Social media listening goes beyond gathering data; it provides actionable insights that can shape several key brand strategies. From content creation to crisis management, the information gleaned can be a game-changer.

Guidine Content Creation Strategies for Social Media Listening

Audience Interests and Preferences: By understanding what topics, styles, and types of content resonate with their audience, brands can tailor their content to better engage their target demographic.

Content Relevance: Tracking trending topics and conversations enables brands to create content that is timely, relevant, and likely to be well-received by their audience.

Content Optimisation: Feedback on content performance can guide future content strategies, helping to refine the tone, format, and delivery channels for maximum impact.

User-Generated Content: Identifying and leveraging user-generated content can amplify a brand’s reach and authenticity, as customer-generated content often resonates more with other users.

Example – GoPro’s User-Generated Content Strategy

GoPro, the action camera company, excels in leveraging social media listening for content creation. They actively monitor social media for user-generated content where customers share their experiences using GoPro cameras. By curating and featuring these videos and photos on their social media channels and marketing campaigns, GoPro creates authentic content that resonates with its audience and fosters a sense of community among its users. This approach has helped them build brand loyalty and engage with their audience in a more personal and relatable manner.

Feedback-Driven Product Enhancement using Social Media Listening

Consumer Needs and Expectations: Social media insights reveal what consumers seek in products, allowing brands to align their offerings with customer expectations.

Product Innovation: Feedback on social media can inspire new product ideas or improvements to existing products, ensuring they meet the market’s evolving needs.

Feature Optimisation: Understanding which features are most appreciated or underutilised can guide product refinements and development priorities.

Beta Testing and Feedback Loop: Social media can be a platform for beta testing, where immediate feedback from a select group of users can inform final product adjustments.

Example —Starbucks’ My Starbucks Idea Platform

Starbucks used social media listening to enhance its product development through the “My Starbucks Idea” platform. This initiative allowed customers to submit ideas for new products, flavors, or services. Starbucks listened to these suggestions and implemented several, such as introducing non-dairy milk options and providing free Wi-Fi in stores. This direct engagement with customer feedback led to popular new offerings and demonstrated Starbucks’ commitment to listening to and valuing its customers’ opinions.

Insight-Driven Marketing Campaigns Using Social Media Listening

Audience Segmentation: Insights from social media listening aid in segmenting audiences based on interests, behaviours, and demographics, allowing for more targeted marketing.

Personalised Messaging: Understanding the preferences and pain points of different segments enables brands to craft customised messages that resonate more strongly with each group.

Campaign Adjustment: Real-time feedback on marketing campaigns allows brands to make quick adjustments for better alignment with audience reception and expectations.

Influencer Collaboration: Identifying and collaborating with popular influencers within the target audience can amplify marketing efforts significantly.

Example— Netflix’s Tailored Social Media Campaigns

Netflix provides a prime example of using social media listening for targeted marketing. By analysing social media conversations and trends, Netflix gains insights into viewer preferences and sentiments about shows and genres. This information guides their marketing strategies, allowing them to create highly targeted and engaging social media campaigns for different audience segments. For instance, Netflix has been known to use memes, localised content, and tailored promotions to appeal to specific demographics, increasing engagement and viewer interest in their content.

Proactive PR and Crisis Management Using Social Media Listening

Early Warning Signals: Social media listening can serve as an early detection system for potential issues or negative sentiments, allowing brands to respond before they escalate into crises.

Rapid Response: By constantly monitoring social media, brands can quickly address concerns and communicate their stance or solutions, demonstrating responsiveness and responsibility.

Sentiment Analysis: Understanding the extent and nature of negative sentiment can guide the tone and approach of the crisis response.

Post-Crisis Analysis: After a crisis, social media listening can provide insights into recovery progress and guide strategies to rebuild trust and reputation.

Example —KFC’s Response to the Chicken Shortage Crisis

In 2018, KFC faced a crisis in the UK when they ran out of chicken due to logistics issues. The situation led to widespread customer disappointment and negative social media chatter. KFC used social media listening to gauge the public’s reaction quickly and then responded with a clever and humorous apology campaign. They rearranged the letters in their name on a chicken bucket to spell “FCK” and published a full-page newspaper advertisement to apologise for the inconvenience. This response was widely praised for its honesty and humour, helping to diffuse the negative sentiment and maintain customer loyalty during the crisis.

Setting Benchmarks and KPIs

To effectively leverage social media listening, brands must set clear benchmarks and Key Performance Indicators (KPIs). These metrics help measure the success of social media strategies and help make informed decisions. Key metrics include sentiment ratio, engagement rate, and response time.

Sentiment Ratio: The Significance of a Balanced Sentiment Ratio

Indicator of Brand Health: The sentiment ratio, which measures the balance between positive and negative mentions, is a vital indicator of overall brand health and customer satisfaction.

Strategic Decision-Making: A balanced or positive sentiment ratio can affirm that a brand’s marketing and customer service strategies are on the right track. Conversely, a negative sentiment ratio can prompt a re-evaluation of these strategies.

Benchmark for Improvement: Tracking changes in the sentiment ratio over time can help brands gauge the effectiveness of their initiatives and guide continuous improvement in their approach to customer engagement and product offerings.

Engagement Rate: The Importance of Audience Interaction

Measuring Content Resonance: The engagement rate, which includes likes, comments, shares, and other interactions, indicates how well content resonates with the audience. High engagement rates often correlate with content relevance and appeal.

Enhancing Brand Visibility: Higher engagement rates can also increase a brand’s visibility on social media platforms, as most algorithms favour content with more interactions.

Building Community: Engagement is key to building a community around a brand. Active interactions foster a sense of connection and loyalty among customers.

Response Time: The Need for Timely Responses

Customer Expectations: In the fast-paced world of social media, customers expect quick responses to their queries and concerns. A short response time is crucial in meeting these expectations and maintaining customer satisfaction.

Impact on Reputation: Timely responses, especially in addressing complaints or negative feedback, can significantly impact a brand’s reputation. A quick and thoughtful response can turn a potentially harmful experience into a positive one.

Competitive Advantage: Brands that consistently demonstrate quick response times can set themselves apart from competitors, enhancing their appeal to current and potential customers.

Combatting Challenges and Alarms in Social Media Listening

In social media listening, challenges and unexpected issues are inevitable. How brands respond to these challenges can significantly impact their reputation and customer relations. Being proactive, maintaining transparency, and having a well-trained team are key to effectively managing these situations.

Being Proactive and the Importance of Immediate and Appropriate Responses

Preventing Escalation: Quick and appropriate responses to negative feedback or a potential crisis can prevent issues from escalating and causing more significant damage to the brand.

Building Trust: Proactive engagement, especially in addressing concerns or complaints, demonstrates to customers that the brand is attentive and cares about their experience. This can build trust and loyalty even in challenging situations.

Opportunity for Improvement: Immediate responses address the current issue and allow the brand to learn and improve, potentially preventing similar matters.

Maintaining Transparency and the Value of Honest Communication

Cultivating Authenticity: Transparency in communication helps cultivate an image of authenticity and reliability, which is highly valued by consumers today.

Building Consumer Confidence: Honest and open communication can build consumer confidence in the brand, especially during crises or when addressing negative feedback.

Enhancing Brand Reputation: Transparency can enhance a brand’s reputation, demonstrating accountability and a commitment to high ethical standards.

Training & Guidelines: The Significance of Having a Well-Trained Social Media Listening Team

Consistency in Responses: A well-trained team ensures that responses are consistent with the brand’s voice and policies, maintaining a cohesive brand image.

Effective Crisis Management: Training in crisis management and communication is crucial for teams to handle challenging situations effectively without exacerbating the issue.

Adherence to Guidelines and Best Practices: Training ensures that all team members know and adhere to industry guidelines and best practices, essential for legal compliance and maintaining a positive brand image.

Empowering Employees: Adequate training allows employees to make informed decisions when interacting with customers or addressing issues on social media, leading to better outcomes.

Cautionary Tales: The Consequences of Inadequate Social Media Listening

There have been notable instances where global brands faced significant challenges due to inadequate social media listening. These examples serve as cautionary tales, emphasising the importance of attentive and strategic social media engagement.

United Airlines: The “Leggings Incident”

In 2017, United Airlines faced backlash when they barred two teenage girls from boarding a flight because they wore leggings, which the airline deemed inappropriate for passengers on a buddy pass. Initially tweeted by a bystander, the incident quickly escalated on social media. United’s response on Twitter, perceived as defensive and lacking empathy, only fueled the outrage. This scenario highlighted the need for sensitive and well-considered responses, especially in controversial situations.

Pepsi: The Kendall Jenner Ad Controversy

Pepsi faced significant criticism over an advertisement featuring Kendall Jenner in 2017. The ad, which depicted Jenner joining a protest and handing a Pepsi to a police officer, was accused of trivialising the Black Lives Matter movement. The negative response on social media was swift and intense. Pepsi initially failed to grasp the depth of the public’s sentiment, leading to a delayed response and eventual ad withdrawal. This instance underscores the importance of understanding current social issues and public sentiment in marketing efforts.

Japan: Rakuten’s English Language Change

Rakuten, a Japanese electronic commerce and online retailing company, faced backlash when it switched its internal communication language from Japanese to English. Many Japanese employees expressed their frustration on social media. The company’s initial underestimation of the employees’ sentiment led to a morale dip, showcasing the need for internal social listening and cultural sensitivity.

Indonesia: Grab’s Pricing Policy Backlash

Grab, a popular ride-hailing app in Indonesia, faced criticism on social media over a pricing policy change perceived as unfair by drivers and customers. The negative sentiment on platforms like Twitter and Facebook highlighted the need for better communication and understanding of local sentiment in policy changes.

India: Tanishq’s Advertisement Controversy

Indian jewelry brand Tanishq faced a social media storm over an advertisement promoting communal harmony. However, due to an intense backlash on social media, alleging that it promoted ‘love jihad,’ the company pulled the ad. This incident highlights the importance of understanding diverse cultural sentiments and nuances in a country like India.

Singapore: DBS Bank’s Website Outage Response

DBS Bank in Singapore experienced a website outage, leading to customer frustration that was voiced on social media. The bank’s delayed response in acknowledging and addressing the issue on these platforms initially exacerbated customer dissatisfaction, emphasising the need for timely and proactive communication in crises.

China: D&G’s Cultural Insensitivity

Dolce & Gabbana faced a significant crisis in China due to an ad campaign criticised for perpetuating cultural stereotypes. The backlash was swift on Chinese social media platforms like Weibo, leading to a boycott of the brand. The incident illustrates the importance of cultural sensitivity and the speedy power of social media in global markets like China.

Final Thoughts: Navigating the Social Media World with Strategic Listening

Social media is dynamic and complex, presenting brands with unparalleled opportunities and significant challenges. The key to navigating it successfully lies in strategic social media listening. As we have seen through various examples, the impact of social media on brand reputation, customer engagement, and overall business strategy is profound.

Embracing a Culture of Listening

For brands, the first step is to cultivate a culture of listening that values customer feedback and is attuned to the evolving digital conversations. This requires more than monitoring tools; it demands a mindset where every tweet, comment, or post is seen as an opportunity to learn and grow. Brands that listen actively are better positioned to respond to market changes, address customer needs, and stay ahead of the competition.

Integrated Approach for Maximum Impact

Integrating social media insights into all facets of business – from marketing and product development to customer service and crisis management – can lead to significant competitive advantages. It enables brands to create more targeted, relevant, and impactful strategies. The most successful brands leverage these insights to foster innovation, adaptability, and customer-centricity.

Learning from Mistakes

The cautionary tales of faltered brands serve as valuable lessons in the importance of effective social listening. Missteps often occur when brands fail to fully appreciate the power of social media or when they underestimate public sentiment. These instances remind us that social media is a powerful tool that, if mishandled, can lead to significant reputational damage.

The Future of Brand Strategy

Looking ahead, the role of social media listening in brand strategy will only grow in importance. The digital world continuously evolves, with new platforms, shifting user behaviours, and emerging trends. Brands that can keep their finger on the pulse of these changes, adapting and evolving their strategies accordingly, will thrive.

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In this insightful video, our Country Manager for Singapore, Derek Goh, sheds light on the often overlooked cultural nuances that significantly influence consumer behaviours in Singapore despite its modern facade. Drawing from examples like the Hungry Ghost Festival and Chinese New Year and highlighting the tangible impact of traditional beliefs on purchase patterns during these periods, Derek presents a compelling case for brands to tailor their strategies accordingly. Furthermore, he unveils the growing yet underserved silver generation market, urging brands, especially in the entertainment and leisure sectors, to realign their offerings to cater to this expanding demographic, tapping into a lucrative and burgeoning market segment. Watch the video here.

Here’s a transcript from the video from Derek Goh:

What cultural values and beliefs influence purchase decisions in Singapore?

Derek Goh: When it comes to traditional beliefs and values influencing purchase behaviour, you would have thought that a modern metropolis like Singapore would be very advanced and very interesting in how they buy things, and that’s true, but traditions and values still influence purchase behaviour, quite a bit. For example, in August, the lunar calendar is actually the seventh month, which in Chinese belief is the ghost month or the Hungry Ghost Festival. It is believed that ghosts are released back into the human realm, and we coexist. All that affects purchases, and many people choose not to buy big ticket items during this time because it’s believed to be unlucky. Property sales significantly drop yearly during the Hungry Ghost Festival, and even car sales, which are typically very high in Singapore, experience a bit of a standstill. It’s a down period for car sales in Singapore. So that’s an interesting phenomenon, and it illustrates how, in Singapore, even though we’re quite modern, we still have suspicions and beliefs regarding what influences our purchases.

Another example would be the Chinese New Year period, which is still considered to bring good luck and good fortune, and people in Singapore like to give cash. So, during the early part of the year, all the regional banks in Singapore make sure their cash machines are stocked with fresh dollar bills and even set up specific cash machines in neighbourhoods to make the cues manageable. This is another example of how traditional values and beliefs motivate behaviour.

What opportunities do you see in the Singaporean market that brands might be missing now?

Derek Goh: Singapore has an advanced economy, of course, and has consumer strategies for different brands, and not surprisingly, most brands target Gen Zs or Millennials. So, that’s normal. But one misunderstood segment in the Singapore Consumer Society, I would say, would be the silver generation. I define that as people aged 65 years and above. Why would I say that? According to national statistics in 2010, one in 10 Singaporeans were aged 65 and above.

In 2023, currently, about one in five are above age 65. So, in a span of 13 years, the proportion of Singaporeans who fall into this silver generation has doubled, and it is projected that in the next seven years, by 2030, one in four consumers in Singapore will be aged 65 and above. So, currently, a lot of the products and services catering to the aged generation, not surprisingly, are focused on healthcare, and I think that makes sense because once these consumers grow older, there’s a tendency for them to require healthcare support, and that’s not surprising. However, if you think about it, in seven years, one in four people with the power to spend will be above age 65. If you are in the entertainment business, or if you are in the leisure and travel business, are you prepared to serve this currently underserved market? What would you do differently so you can also capture a share of one in four Singaporeans?

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In today’s hypercompetitive market, pricing and promotion optimisation have become crucial for brands’ success. With the rise of price-sensitive consumers, companies must find ways to offer value without sacrificing profit margins. And that’s where data analytics comes in!

According to a recent study, companies that use data analytics to optimise pricing and promotions see an average revenue increase of 2-7%. That’s a significant boost to your bottom line!

But what exactly is a price-sensitive consumer? Well, studies have shown that nearly 60% of shoppers are price-sensitive when making purchase decisions. These consumers are highly aware of prices and will compare prices between products and brands to get the best value for their money.

As a marketer or market researcher, understanding the behaviour of price-sensitive consumers is essential for developing effective pricing and promotion strategies. Data analytics lets you gain insights into their purchasing patterns, preferences, and attitudes toward pricing and promotions.

This blog will explore how data analytics can help you optimise pricing and promotions for price-sensitive consumers. We’ll cover different pricing strategies, promotions and discounts, data collection and analysis, and provide real-world case studies and best practices. So, let’s dive in and learn how to use data analytics to boost your revenue and attract more price-sensitive consumers!

Understanding Price-Sensitive Consumers: Unlocking the Secrets of Their Behavior

Have you ever wondered what drives price-sensitive consumers to make purchasing decisions? Understanding their behaviour is the key to unlocking the secrets of their buying patterns and preferences.

Research shows that price-sensitive consumers are not necessarily bargain hunters but value seekers. They are looking for products and services that offer the best value for their money, not necessarily the cheapest option. Therefore, they tend to be loyal to brands that provide consistent quality, even if they are slightly more expensive.

One way to understand the behaviour of price-sensitive consumers is by analysing their demographics. Studies show that age, income, and education level are key factors that influence their purchasing decisions. For instance, younger, lower-income consumers tend to be more price-sensitive than older, more affluent consumers.

Another way to gain insight into the behaviour of price-sensitive consumers is by looking at their shopping habits. They tend to be more likely to buy on sale or during promotions, and they tend to be more willing to switch brands to save money. In fact, nearly 60% of price-sensitive consumers will switch brands if they find a better deal.

Understanding the psychology behind price-sensitive consumers is also important. They tend to experience more guilt and regret when making purchasing decisions, which can influence their behaviour. Therefore, offering clear and transparent pricing and promotions can help ease their guilt and increase their satisfaction with their purchase.

Choosing the Right Pricing Strategy: How to Optimise Value for Price-Sensitive Consumers

Choosing the right pricing strategy is crucial for attracting and retaining price-sensitive consumers. With so many options available, it can be challenging to determine which strategy is right for your brand.

One common pricing strategy is cost-plus pricing, where a business adds a markup to its production costs to set a price. However, this strategy does not take into account the value perceived by consumers, and it may not be effective for price-sensitive consumers.

Another popular pricing strategy is value-based pricing, which sets a price based on the perceived value of the product or service to the customer. This strategy is particularly effective for price-sensitive consumers because it focuses on delivering value rather than simply offering the lowest price.

In fact, research shows that nearly 70% of consumers are willing to pay more for products and services that provide a superior experience. By focusing on value-based pricing, businesses can attract price-sensitive consumers looking for quality and value over the cheapest option.

Dynamic pricing is another pricing strategy that is effective for price-sensitive consumers. This strategy adjusts prices based on demand, allowing businesses to charge more during peak times and offer discounts during slower periods. This strategy can be particularly effective for businesses in industries with high demand fluctuations, such as the travel industry.

Ultimately, the right pricing strategy for your business will depend on your industry, product, or service, and target audience. By understanding the behaviour of price-sensitive consumers and the different pricing strategies available, you can develop a pricing strategy that maximises value and attracts price-sensitive consumers.

Promotions and Discounts: The Key to Attracting Price-Sensitive Consumers

Promotions and discounts are powerful tools for attracting price-sensitive consumers. In fact, nearly 90% of consumers say that promotions and discounts influence their purchasing decisions.

One popular promotion strategy is flash sales, which offer a limited-time discount on products or services. These sales can create a sense of urgency and scarcity, encouraging consumers to purchase before the promotion ends. Flash sales can be particularly effective for attracting price-sensitive consumers looking for a good deal.

Coupons are another effective promotion strategy. Research shows that nearly 80% of consumers use coupons when shopping. Coupons can be distributed through various channels, such as social media, email, or direct mail. They can also be personalised to target specific consumer segments, such as price-sensitive consumers who have previously purchased a product or service from your business.

Loyalty programs are another effective way to attract price-sensitive consumers. These programs offer rewards, discounts, or other incentives to customers who make repeat purchases or engage with your business in other ways. Loyalty programs can be particularly effective for retaining price-sensitive consumers and encouraging them to make repeat purchases.

It’s important to note that while promotions and discounts can effectively attract price-sensitive consumers, they can also reduce your profit margins. Therefore, it’s essential to carefully consider the cost of each promotion or discount and its potential return on investment.

Data Collection and Analysis: Using Insights to Develop Effective Promotions and Discounts

Data collection and analysis are essential for developing effective promotions and discounts that appeal to price-sensitive consumers while maximising profitability.

One way to collect data is through sales data analysis. By analysing sales data, you can identify which products or services are popular among price-sensitive consumers and develop promotions or discounts to increase their value perception.

Another way to collect data is through surveys. Surveys can provide valuable insights into the behaviour and preferences of price-sensitive consumers. For instance, you can use surveys to determine which promotions or discounts appeal to price-sensitive consumers or what factors influence their purchasing decisions.

Social media analytics is another valuable source of data. Social media platforms provide a wealth of information about consumer behaviour, such as what types of products or services they are interested in and what kinds of promotions or discounts they respond to.

Once you have collected data, it’s important to analyse it to gain insights into the behaviour of price-sensitive consumers. This can involve using statistical methods to identify patterns or trends in the data, such as which promotions or discounts are most effective or which consumer segments are most price-sensitive.

Using data analysis, you can develop promotions and discounts tailored to the behaviour and preferences of price-sensitive consumers. This can increase the effectiveness of your promotions and discounts while also maximising profitability.

Case Studies: Real-World Examples of Using Data Analytics to Optimise Pricing and Promotions for Price-Sensitive Consumers

Using data analytics to optimise pricing and promotions is not just a theoretical concept; many companies have successfully implemented these strategies to increase revenue and attract price-sensitive consumers. Let’s look at some real-world case studies.

Case Study 1: Amazon

Amazon is a leader in using data analytics to optimise pricing and promotions. The company uses sophisticated algorithms to adjust prices based on demand and competitor pricing dynamically. For instance, during the holiday season, Amazon adjusts prices every 10 minutes to ensure they offer the best deal to price-sensitive consumers.

Additionally, Amazon uses data analytics to personalise promotions and discounts for individual consumers. By analysing customer data, Amazon can offer targeted promotions that appeal to price-sensitive consumers and increase their value perception.

Case Study 2: Walmart

Walmart is another company that has successfully used data analytics to optimise pricing and promotions for price-sensitive consumers. The company uses algorithms to analyse sales data and identify trends and patterns in consumer behaviour. This allows Walmart to develop targeted promotions that appeal to specific consumer segments, such as price-sensitive consumers.

Walmart also uses data analytics to optimise its pricing strategies. For instance, the company has found that offering lower prices on certain items can increase foot traffic and increase sales of other, higher-margin items.

Case Study 3: Starbucks

Starbucks has also used data analytics to optimise its pricing and promotions strategies. The company analyses sales data to identify popular products among price-sensitive consumers and develop targeted promotions and discounts.

Additionally, Starbucks uses loyalty programs to retain price-sensitive consumers. The company’s rewards program offers personalised promotions and discounts to members based on their purchasing history, encouraging them to make repeat purchases and increasing their value perception.

These case studies demonstrate the power of data analytics in optimising pricing and promotions for price-sensitive consumers. By using data to gain insights into consumer behaviour and preferences, businesses can develop strategies that appeal to price-sensitive consumers while maximising profitability.

Best Practices: Actionable Recommendations for Optimising Pricing and Promotions for Price-Sensitive Consumers

Now that we’ve explored the importance of data analytics in optimising pricing and promotions for price-sensitive consumers, let’s summarise the key takeaways and provide actionable recommendations for marketers and market researchers.

Understand the behaviour of price-sensitive consumers: By analysing demographics, shopping habits, and psychology, you can develop strategies that appeal to price-sensitive consumers.
Choose the right pricing strategy: Consider value-based pricing, dynamic pricing, and other strategies focusing on delivering value rather than simply offering the lowest price.
Use promotions and discounts strategically: Use flash sales, coupons, and loyalty programs to attract price-sensitive consumers while maximising profitability.
Collect and analyse data: Use sales data analysis, surveys, and social media analytics to gain insights into consumer behaviour and preferences.
Personalise promotions and discounts: Use data analysis to develop personalised promotions and discounts that appeal to specific consumer segments.
Optimise pricing and promotion strategies continuously: Use data analysis to adjust your pricing and promotion strategies based on consumer behaviour and market trends.

By following these best practices, you can develop effective pricing and promotion strategies that appeal to price-sensitive consumers while maximising profitability. Remember, using data analytics is key to achieving this goal.

The Future of Pricing and Promotions: Emerging Trends and Technologies

As technology advances, the future of pricing and promotions is constantly evolving. Let’s explore some emerging trends and technologies shaping the future of pricing and promotions for price-sensitive consumers.

Artificial Intelligence (AI): AI is becoming increasingly important in pricing and promotions. AI algorithms can analyse vast amounts of data and identify patterns and trends in consumer behaviour, allowing businesses to develop personalised promotions and discounts that appeal to price-sensitive consumers.
Augmented Reality (AR): AR technology can be used to enhance the shopping experience for price-sensitive consumers. For instance, AR can be used to provide virtual try-on experiences for clothing and makeup products, allowing consumers to see how the products look before making a purchase.
Subscription Services: Subscription services are becoming more popular among price-sensitive consumers. By offering a subscription service, businesses can provide consistent value to consumers while increasing revenue and encouraging repeat purchases.
Dynamic Pricing: Dynamic pricing is becoming more sophisticated, with businesses using AI algorithms to adjust prices in real time based on demand and consumer behaviour. This allows brands to offer personalised pricing that appeals to price-sensitive consumers while maximising profitability.
Mobile Payments: Mobile payments are becoming more popular among price-sensitive consumers, with nearly 80% of consumers using mobile payments at least once a week. By offering mobile payment options, businesses can make purchasing more convenient and appealing to price-sensitive consumers.

As these emerging trends and technologies evolve, brands must adapt and use data analytics to stay ahead of the competition. By embracing these trends and using data to gain insights into consumer behaviour, businesses can develop effective pricing and promotion strategies that appeal to price-sensitive consumers and maximise profitability.

Using Data Analytics to Optimise Pricing and Promotions for Price-Sensitive Consumers

In today’s hypercompetitive market, brands must find ways to appeal to price-sensitive consumers while maximising profitability. Using data analytics, brands can gain insights into consumer behaviour and develop effective pricing and promotion strategies that appeal to price-sensitive consumers.

Research shows that nearly 60% of shoppers are price-sensitive when making purchase decisions. This is a significant percentage of consumers that brands cannot afford to ignore.

Using data analytics to understand the behaviour of price-sensitive consumers, businesses can develop pricing and promotion strategies that maximise value and appeal to their preferences. This can increase revenue, attract new customers, and retain existing ones.

From understanding the behaviour of price-sensitive consumers to choosing the right pricing strategy, strategically using promotions and discounts, collecting and analysing data, personalising promotions and discounts, and optimising pricing and promotion strategies continuously, businesses can use data analytics to stay ahead of the competition and appeal to price-sensitive consumers.

As technology evolves, businesses must adapt and embrace emerging trends and technologies, such as AI, AR, subscription services, dynamic pricing, and mobile payments, to continue attracting price-sensitive consumers and increasing revenue.

Data analytics is a powerful tool for businesses to optimise pricing and promotions for price-sensitive consumers. Using data analytics to understand consumer behaviour and preferences, brands can develop effective pricing and promotion strategies that appeal to price-sensitive consumers while maximising profitability.

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The academic and business press may have criticized customer rewards for being cheap promotional tools and short-term fads, but they have been around forever, and more brands are embracing rewards programs rather than shying away from them. Many organisations are investing millions of dollars in creating and executing innovative rewards programs, ranging from frequent flyer offers by airlines to reduced fees by telecommunications companies to increase and retain their customer base.

Customer loyalty programs remain a popular marketing strategy brands use to increase customer retention and promote customer loyalty. These programs typically offer rewards, discounts, or other incentives to customers who make repeat purchases or engage in other loyal behaviours.

But do they really work?

In today’s business landscape, it is becoming increasingly common for senior leaders to request that their marketing teams evaluate the potential impact of loyalty marketing initiatives.

The fundamental question is whether such programs foster additional customer loyalty beyond what would typically result from the inherent value of the product or service offered. Additionally, brands must scrutinise their loyalty programs to determine whether they truly encourage customers to spend more or merely incentivise them to make repeat purchases. And in a highly competitive marketplace, are loyalty marketing programs a viable solution for every organisation seeking to improve customer loyalty?

Engineering the economics of a loyalty program’s structure is key.

It is a well-known fact in business and marketing that retaining customers is more valuable than acquiring new ones, which is why rewarding frequent buyers makes sense.

So how can a brand go wrong with a simple loyalty program?

While you can get people to buy again from you by offering them rewards, how do you ensure you also profit when you get a repeat purchase?

This is where many loyalty programs fall short. A lot goes into creating an effective rewards program. First, it has to be good enough to change the customer’s behaviour in your favour, and yet, it should not be so generous that it shrinks margins. You must also understand your consumers, as the same reward often encourages varying purchase behaviours.

Our research at Kadence has uncovered some patterns in successful and effective loyalty programs. These findings may be used as a toolkit to create a successful rewards program for any consumer-facing brand.

Let’s explore with real-world examples how to ensure the effectiveness of a customer loyalty program, but first, let’s dive into the origins of loyalty programs and how they work.

History and Origins of Loyalty Programs

The origins of loyalty programs can be traced back to the late 18th century when American retailers began offering customers copper tokens that could be redeemed for goods. However, it was in the 1980s that loyalty programs began to gain widespread popularity. American Airlines AAdvantage program is often credited as the first modern loyalty program, launched in 1981. Since then, loyalty programs have become an increasingly popular marketing tool brands use in various industries, from retail and hospitality to finance and healthcare.

What goals do loyalty programs strive to achieve?

While loyalty programs do not create an unwavering devotion or faithfulness to a brand in the true sense of the word, they can help accomplish many business goals. It is critical to start with a goal. What are we trying to achieve with the loyalty program? Is the goal to keep customers from moving to other brands, or is it to prompt customers to make additional purchases they would not have typically made, or is it to get a larger share of the wallet?

Once you know your goal, it’s easier to zero in on the most suitable loyalty program structure and engineer an economically viable rewards program.

For brands with a higher lifetime value, like a mobile service or internet provider, it is crucial to keep the customers from falling off into the hands of the competitor. The goal for such companies is often to create a loyalty program that makes the exit difficult for customers because of the incentives or point system.

How do loyalty programs work?

Customer loyalty programs are designed to encourage repeat business from customers by offering them incentives and rewards for their loyalty. The programs provide customers with points, discounts, freebies, or other rewards based on their level of engagement with a business or brand.

Customers typically sign up for the loyalty program by providing their contact information, such as name, email, and phone number. They then earn points or rewards by making purchases referring friends, or engaging with the brand in other ways.

As customers accumulate points or reach certain milestones, they can redeem them for rewards such as free products, discounts on future purchases, or exclusive perks.

Loyalty programs also provide businesses with valuable customer data, which can be used to personalise marketing messages, improve customer experiences, and tailor rewards to individual preferences.

Any customer loyalty program aims to foster long-term customer relationships, increasing retention and loyalty and ultimately driving revenue growth.

Many brands have recently flipped the script on tiered loyalty programs.

When T-Mobile, a wireless voice, messaging, and data services provider, sought a fresh approach to express gratitude for its customers’ support and rapid growth, it went against the tide. Seeing that traditional loyalty programs were a decent way to generate additional sales but a lousy way to thank customers, T-Mobile wanted to prove the brand’s loyalty to customers instead of the other way around.

The result was T-Mobile Tuesdays, a customer appreciation program that offered simple, easy access to free stuff and great deals every Tuesday without forcing customers to spend more with T-Mobile. It was a fresh take on loyalty programs that proved to be highly successful, with customers enjoying well over $1 billion worth of freebies and exclusive discounts in the five years since the program began. In contrast to most companies’ traditional loyalty programs that ask too much of their customers and give little back in return, T-Mobile’s program is unique in that it values and rewards all customers equally.

Many brands utilise loyalty programs to sell other products and services. This helps them set their sights higher to capture sales that would otherwise not be made. Multi-tiered rewards work best in this scenario. An increasing number of airline and retail brands use this reward system. Sephora has been very successful with its VIB program, which provides rewards and incentives commensurate with the value of purchases made within a given year.

A point-based system works well for the goods and services we frequently purchase in smaller quantities. Many hotels, grocery stores, and retailers use this system to reward customers based on points for every dollar spent. Customers are more likely to consolidate purchases with a single brand when rewarded in cash.

Well-thought-out rewards or loyalty programs also help brands access valuable customer data. So while many grocery store programs may not promote loyalty because they are just giving out a membership card for special pricing, they have a wealth of information about their customers, which allows them to customise offers for every customer. However, orchestrating the insights from data requires a substantial investment in data analysis tools and a dedicated team for the job.

How consumer psychology plays a crucial role in the structure and type of rewards program.

Numerous studies have indicated that members tend to utilise loyalty programs more frequently as they progress further in the program, while their participation initially is uncertain.

At the beginning of their membership, they may feel distant from the rewards since they have yet to make any progress and need to understand how achievable the goals are. This is where the principle of the endowed progress effect comes into play. The endowed progress effect states that people with artificial advancement toward a goal exhibit greater persistence toward reaching it. This is used to create effective loyalty programs to prevent customers from losing interest in the loyalty program. This is why many brands throw in bonus points to get them started.

While a growing number of brands offer a buy–ten-get-one-free promo to keep customers from going to competitive brands, it may be more valuable to create a program that provides customers with a taste of something new and increases the range of products or services they buy from you. For instance, the US-based fast-casual chain Panera Bread offers a pastry or other such item to reward its regulars. Starbucks offers many different rewards, including free drinks, food items, and even merchandise, which must be redeemed within a period. This also helps promote the app as it helps keep track of the rewards.

Many airlines use this strategy and upgrade their travellers to business class when they have empty seats, which gives their regular customers a taste of luxury and motivates them to purchase in the future.

The importance of measuring the effectiveness of customer loyalty programs.

While customer loyalty programs can effectively increase customer retention and loyalty, they often fall flat. It is critical to measure the effectiveness of these programs to ensure they achieve the desired results. This is where market research comes in.

Market research is invaluable in devising the most effective loyalty programs and measuring their effectiveness.

Here are some reasons why measuring loyalty programs is essential:

Know the ROI of your loyalty program.

Measuring the effectiveness of a loyalty program allows companies to determine the Return On Investment (ROI) of their loyalty program. This helps brands understand the costs and benefits of the program and whether it is worth continuing or making changes.

Customer Retention.

If the program is not effectively retaining customers, brands may need to make changes to improve its effectiveness.

Customer Satisfaction.

This information can be used to identify areas for improvement and make changes to better meet the needs and preferences of customers.

Competitive Advantage.

A well-designed and effective loyalty program can provide a competitive advantage for companies. Measuring the program allows brands to understand how they perform compared to their competitors, make changes to improve their program, and stay ahead of the competition.

Customer Insights.

By tracking customer spending, engagement, and satisfaction, brands can better understand customers and make data-driven decisions about loyalty programs and other marketing initiatives.

How to use market research to measure the effectiveness of customer loyalty programs.

Customer loyalty programs are an effective way to increase customer retention and loyalty. However, it is essential to measure their effectiveness to ensure they achieve the intended results. Market research allows brands to make data-driven decisions that drive customer loyalty and revenue growth.

Step 1: Define Your Objectives.

The first step in measuring the effectiveness of a customer loyalty program is to define your objectives. What are you hoping to achieve with your program? Is it improved customer retention, increased customer spending, or something else?

Defining your objectives will help you determine the metrics you need to measure and the research methods you will use.

Step 2: Choose Your Metrics.

Once you have defined your objectives, you need to choose the metrics you will use to measure the effectiveness of your loyalty program.

Some standard metrics used to measure loyalty program effectiveness include:

Customer retention rate: The percentage of customers who continue to do business with your company after joining your loyalty program.
Customer spending: The amount of money customers spend on your products or services after joining your loyalty program.
Customer satisfaction: Customers’ satisfaction with your loyalty program and your company overall.
Referral rate: The number of customers who refer new customers to your company.

Step 3: Conduct Market Research.

Once you have defined your objectives and chosen your metrics, it’s time to conduct market research to measure the effectiveness of your loyalty program.

You can use several research methods, including surveys, focus groups, and interviews.

Surveys are one of the most common research methods used to measure the effectiveness of customer loyalty programs. Surveys can collect data on customer retention, spending, satisfaction, and referral rates. They can be conducted online, by phone, or in person and can be targeted to specific groups of customers.

Focus groups and interviews are also effective research methods for measuring loyalty program effectiveness. These methods allow you to gather more in-depth customer feedback and understand their experiences with your loyalty program.

Step 4: Analyse Your Data.

Once you have collected your data, it’s time to analyse it. Look for patterns and trends in your data and compare them to your objectives and metrics. This will help you understand your loyalty program’s effectiveness and identify improvement areas.

Step 5: Make Improvements.

Based on your analysis, make any necessary improvements to your loyalty program. This could involve changing your rewards program, improving your customer service, or making other changes to meet the needs and expectations of your customers.

Many brands are using market research to measure the effectiveness of their customer loyalty programs.

Examples of global brands doing rewards right.

Starbucks is known for its highly successful customer loyalty program, Starbucks Rewards. Sephora’s Beauty Insider Program is another successful loyalty program that uses market research to measure effectiveness. The Insider tier is free to join, while VIB and Rouge tiers require customers to spend specific amounts yearly.

Sephora’s tiered program is highly impactful due to the sense of exclusivity created by the upper tiers. Tiered programs are successful when the upper tiers have a limited number of members, typically around 10%. This way, the most loyal customers feel a sense of accomplishment, motivating other customers to strive for the same. Sephora’s Beauty Insider program segments customers into three groups: Beauty Insiders, VIB, and VIB Rouge, effectively establishing a hierarchy.

Tiers contribute to the gamification aspect of Sephora’s loyalty program and influence customer behaviour, and motivating customers to strive for each new tier is the key to high engagement. Sephora has mastered this strategy, as evident from the feedback shared by its members on social media.

The program offers customers exclusive discounts, free samples, and other perks that align with its customer base. The brand also uses AI to make personalised recommendations.

In the retail world, Amazon Prime, US-based Target Circle, India-based Flipkart Plus, Japan-based Rakuten Super Points, China-based Tmall Super Member, Singapore-based GrabRewards, and UK-based Tesco Club cards are excellent examples, as are many frequent flier programs like the Southwest rapid rewards card.

Ensuring the effectiveness of a company’s loyalty program involves first defining its purpose. This entails meticulously considering the program’s design elements, including the rewards’ value and type and the methods of awarding and redemption. The key to a successful program is its efficient and consistent implementation.

Loyalty programs have come a long way since their inception in the late 18th century. From American Airlines’ AAdvantage program to the modern loyalty programs of today, these have become essential marketing tools brands use to increase customer loyalty and drive revenue. While expecting absolute loyalty may be unrealistic, businesses can achieve long-term relationships with satisfied customers, serving as a valuable competitive advantage. With the help of technology, loyalty programs are becoming increasingly personalised, sophisticated, and effective and are likely to continue evolving in the years to come.

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Are you reading this on a mobile device? If you are, you’re not alone. Over 50% of global internet usage is now on mobile devices, and this number will only continue to grow.

As we spend more and more time on our phones and tablets, it’s become increasingly important for brands to ensure that their websites are optimised for mobile users. But what does “mobile optimisation” actually mean? And why is it so important for brands to prioritise mobile responsiveness in their website design?

In this blog, we’ll explore the answers to these questions and more. But first, let’s take a closer look at one fascinating statistic: 48% of users say that if a website isn’t mobile-friendly, they take it as a sign that the business doesn’t care (Google). Ouch. That’s a lot of potential customers who could be turning away from your website if it’s not optimised for mobile. So, let’s dive in and find out how to ensure that your website provides a great user experience for mobile users.

The rise of mobile usage.

Now that we’ve seen the importance of mobile responsiveness in website design let’s dive deeper into why it matters so much, especially for large multinational companies. The rise of mobile usage is one key factor.

According to a recent report by Statista, over half of all internet usage is now happening on mobile devices. If your website isn’t optimised for mobile, you’re missing out on a massive audience of users accessing the web exclusively through their phones and tablets.

But it’s about more than just reaching more users. Mobile responsiveness also directly impacts user experience (UX), which is crucial for brands that want to build trust and loyalty with their customers. Users who visit your website on a mobile device expect it to be fast, easy to navigate, and visually appealing. If your website doesn’t meet these expectations, users will likely become frustrated and move on to a competitor’s site. In fact, Google reports that 57% of users say they won’t recommend a business with a poorly designed mobile site, so the stakes are high.

For multinational brands, the impact of mobile responsiveness on UX is even more critical. These companies often have global audiences, meaning users access their sites from a wide range of devices and internet connections. Ensuring your website is optimised for mobile can bridge the gap between users in different regions and provide everyone with a consistent, positive experience.

Mobile-first design.

As we’ve seen, mobile responsiveness is crucial for providing a great user experience on your website. But it’s not just about ensuring your site looks good on mobile devices – it’s also about designing it with mobile users in mind. That’s where mobile-first design comes in.

The concept of mobile-first design is exactly what it sounds like: designing your website with mobile users as the primary audience. This means prioritising things like page speed, streamlined navigation, and clear, concise content that’s easy to read on smaller screens. By focusing on mobile-first design, you can create a website that’s not just responsive to different devices but explicitly optimised for mobile users’ needs and expectations.

Mobile-first design is becoming increasingly important in the context of user experience optimisation for a few key reasons. First, as we’ve seen, more and more users are accessing the internet exclusively through mobile devices. This means that designing for mobile-first is not just a nice-to-have – it’s a necessity for reaching a large and growing audience.

Second, designing for mobile-first can make creating a great user experience easier across all devices, not just mobile. By focusing on the essentials of mobile design – things like fast load times, streamlined navigation, and clear content – you can create a strong foundation for your website that can be easily adapted for larger screens as well.

Best practices for mobile responsiveness.

Now that we understand the importance of mobile responsiveness and mobile-first design let’s dive into some best practices for optimising your website for mobile users.

Prioritise page speed: Mobile users expect fast load times, so optimising your website for speed is essential. This can include compressing images, minifying code, and using a content delivery network (CDN) to reduce load times.
Streamline navigation: Mobile screens are small, so making it easy for users to find what they’re looking for on your website is important. Keep your navigation menu simple and intuitive, and ensure all links and buttons are large enough to tap easily on a touchscreen.
Use responsive design: Responsive design allows your website to adapt to different screen sizes automatically. This means that your website will look great and function properly whether a user is accessing it on a desktop, tablet, or smartphone.
Optimise content for mobile: Mobile users are often looking for specific information quickly, so it’s essential to ensure that your content is clear, concise, and easy to read on a small screen. Use shorter paragraphs, larger fonts, and plenty of white space to make your content more mobile-friendly.
Consider mobile-specific features: Several features can help to enhance the mobile user experience, such as click-to-call buttons, mobile-friendly forms, and swipeable carousels. Consider incorporating these features into your website design to make engaging with your content easier for mobile users.

By following these best practices, you can create a website that provides a great user experience for mobile users. Remember, designing for mobile-first isn’t just about making sure your website looks good on a smartphone – it’s about prioritising the needs and expectations of mobile users throughout the design process. By doing so, you can create a website that’s responsive to different devices and optimised for your users’ needs, no matter how they access your site.

The Technical Side of Mobile Responsiveness

While mobile-first design is a crucial element of optimising the user experience on your website, it’s essential to pay attention to the technical side of mobile responsiveness.

Several technical considerations can impact your website’s ability to adapt to different screen sizes and devices, such as CSS and media queries.

CSS, or Cascading Style Sheets, is a language used to describe the presentation of web pages, including layout, fonts, and colours. CSS can be used to create responsive designs by specifying different styles for different screen sizes. For example, you can use CSS to specify that an image should be a certain width on a desktop screen but scale down to a smaller size on a mobile device.

Media queries are a key component of responsive design that allows websites to adapt to screen sizes by applying different styles based on the device’s screen width. Media queries can specify different styles for a wide range of devices, from large desktop screens to small smartphone screens.

In addition to CSS and media queries, several other technical considerations can impact mobile responsiveness, such as page load times, image optimisation, and responsive frameworks like Bootstrap or Foundation.

By understanding the technical side of mobile responsiveness and implementing best practices like CSS and media queries, you can create a website that provides mobile users with a seamless and engaging experience. While it may seem daunting to dive into the technical details, many resources are available to help you get started, such as online tutorials, forums, and developer documentation.

Remember, mobile responsiveness is not just about making your website look good on a smartphone – it’s about providing a great user experience for a large and growing audience of mobile users.

Mobile Optimisation and SEO: A Match Made in User Experience Heaven

We’ve already discussed how mobile optimisation can impact user experience on your website, but did you know that it can also significantly impact your search engine rankings? Google, the world’s most popular search engine, has made it clear that mobile optimisation is a key factor in its algorithm for ranking search results.

Google has even rolled out mobile-first indexing, prioritising a website’s mobile version when determining its search engine ranking. If your website isn’t optimised for mobile, you could miss out on a significant amount of organic search traffic.

But why does mobile optimisation have such a big impact on SEO? It all comes down to user experience. Google’s primary goal is to provide its users with the best possible search results, including ensuring that the websites they recommend offer a great user experience on all devices. Mobile-friendly websites are not only easier for users to navigate and read, but they also load faster and have lower bounce rates, which are all factors that Google considers when determining search rankings.

In addition to mobile-first indexing, Google offers many tools and resources to help you optimise your website for mobile users, such as the Mobile-Friendly Test and PageSpeed Insights. These tools can help you identify areas where your website may fall short in mobile optimisation and provide recommendations for improving your mobile user experience.

By prioritising mobile optimisation in your website design, you can improve your user experience for mobile users and your search engine rankings and drive more organic traffic to your site. So, if you haven’t already, it’s time to prioritise mobile optimisation for your website.

Essential Tools and Resources for Mobile Optimisation

Implementing mobile-first design and optimising your website for mobile users can seem like a daunting task. Still, several tools and resources are available to help you get started. Here are some essential tools and resources for mobile optimisation to help you test and improve your website’s mobile responsiveness.

Google’s Mobile-Friendly Test: This free tool from Google allows you to test your website’s mobile responsiveness and provides recommendations for improving your mobile user experience.
PageSpeed Insights: Another free tool from Google, PageSpeed Insights analyses your website’s performance on desktop and mobile devices and provides suggestions for improving page speed and user experience.
Responsive design frameworks: Frameworks like Bootstrap and Foundation can help you create responsive designs more quickly and easily by providing pre-built CSS and JavaScript components that are optimised for mobile devices.
Mobile-specific plugins: If you’re using a content management system like WordPress or Drupal, several plugins are available that can help you optimise your website for mobile users, such as WPtouch and Drupal Mobile.
Online tutorials and forums: A wealth of online resources are available to help you learn more about mobile optimisation, from tutorials on responsive design to forums where you can connect with other developers and designers.

Mobile Optimisation and E-commerce: Why It Matters and How to Get it Right

In today’s digital landscape, e-commerce is more important than ever, with consumers increasingly turning to online shopping for their retail needs. And with mobile devices accounting for more than half of all internet traffic, e-commerce websites must be optimised for mobile users.

Mobile optimisation is essential for e-commerce websites because mobile users often have different needs and behaviours than desktop users. For example, mobile users may look for specific products or information quickly or be more likely to make impulsive purchases. To optimise the mobile user experience for e-commerce, it’s important to understand these needs and behaviours and design your website accordingly.

So, what are some best practices for optimising e-commerce sites for mobile users? Here are a few key considerations:

Streamline the checkout process: Mobile users want a quick and easy checkout process, so minimising the number of steps required to complete a purchase is important. Consider using a one-page checkout process, offering guest checkout options, and enabling mobile payment methods like Apple Pay and Google Wallet.
Optimise product pages for mobile: Product pages are a key element of e-commerce websites, so it’s crucial to ensure they’re optimised for mobile users. This can include using high-quality product images, providing clear product descriptions, and including reviews and ratings.
Use mobile-specific features: Several mobile-specific features can enhance the e-commerce user experience, such as click-to-call buttons, mobile-friendly forms, and push notifications. Consider incorporating these features into your website design to make engaging with your content easier for mobile users.
Test and optimise: As with any aspect of website design, testing and optimising your e-commerce website for mobile users is essential. Use tools like Google’s Mobile-Friendly Test and PageSpeed Insights to identify areas for improvement and make iterative changes over time.

Optimising your e-commerce website for mobile users can improve user experience, drive more conversions, and ultimately increase revenue. So, prioritise mobile optimisation in your strategy, whether you’re designing a new e-commerce site or optimising an existing one.

How a Market Research Agency Can Help Your Brand Achieve Mobile Optimisation Success

Achieving mobile optimisation success can be complex and challenging, requiring a deep understanding of user behaviour, design best practices, and technical considerations. This is where working with a market research agency can be an invaluable asset for brands looking to improve their mobile user experience.

A market research agency can provide many services and solutions to help brands optimise their website for mobile users. Here are a few examples:

User research: A market research agency can conduct user research to gain insights into how your target audience interacts with your website on mobile devices. This can include surveys, focus groups, and usability testing to identify pain points and opportunities for improvement.
Design and development: A market research agency can work with your team to design and develop a mobile-first website that prioritises user experience and incorporates best practices for mobile optimisation. This can include creating responsive designs, optimising page speed, and implementing mobile-specific features.
Analytics and optimisation: A market research agency can help you measure the impact of your mobile optimisation efforts by analysing data and identifying areas for improvement. This can include A/B testing, heat mapping, and user behaviour tracking to fine-tune your mobile user experience over time.
Competitive analysis: A market research agency can conduct a competitive analysis to identify how other brands in your industry are approaching mobile optimisation and provide recommendations for differentiating yourself and providing a better user experience.

By working with a market research agency, brands can ensure their mobile user experience is optimised for their target audience and aligned with their overall business goals. Whether you’re looking to improve your website’s load times, streamline the checkout process, or implement mobile-specific features, a market research agency can provide the expertise and support you need to achieve mobile optimisation success.

Key Takeaways

Mobile optimisation is an essential aspect of user experience optimisation for large multinational companies. With the rise of mobile usage, users expect websites to be fast, easy to navigate, and visually appealing on their mobile devices.

By prioritising mobile-first design and following best practices for mobile optimisation, companies can create a website that not only meets these expectations but exceeds them.

While we’ve discussed the importance of mobile-first design and the impact of mobile optimisation on search rankings and e-commerce, it’s also important to consider the technical side of mobile responsiveness and the tools and resources available to help you achieve mobile optimisation success. Companies can gain a competitive edge by using these tools and resources and working with a market research agency to provide a seamless and engaging experience for mobile users worldwide.

Ultimately, mobile optimisation is not just about making your website look good on a smartphone – it’s about providing a great user experience for a large and growing audience of mobile users. By prioritising mobile optimisation, brands can build customer trust and loyalty, improve search rankings, drive more conversions and revenue, and ultimately stay ahead in today’s fast-paced digital landscape.

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Emerging technological advancements are transforming market research forever. As many consumers move online, the way brands identify and understand consumer needs is being reimagined.

Many technology trends disrupt the market research industry —from data collection and new product launches to tracking brand performance. This blog post will focus on the breakthroughs in technology impacting brand tracking and product performance tracking.

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Brand and performance tracking refers to the process of continually measuring brand health over a period within the target audience. It allows brands to measure the performance of a product in relation to its competition. After a new product is launched, market research helps brands gauge performance to stay competitive.

With consumers increasingly moving online, brands can tap into new, vast, and reliable consumer behaviour data in real-time. This has also made Direct to Consumer marketing much more common. Brands like Happy Human (Singapore), Dime Beauty (U.S.A.), Joi (Malaysia), Sleepy Owl (India), Recess (Philipines), Adopt a Cow (China), and Knot (Japan) have eliminated the middleman to create, develop, sell, and distribute their products directly to the end-user. The absence of middlemen and brick-and-mortar stores allows them to maintain quality and reduce prices. But this is not all. These brands also have the added advantage of measuring performance directly without employing market research across several retail outlets. They can discover brand sentiment directly, making them more agile, nimble, and competitive.

While there is still a place for traditional research methodologies, technologies like machine learning, Artificial Intelligence, Virtual Reality, and chatbots continue to reinvent the market research industry.

Let’s look at the primary technologies in brand tracking and competition analysis that are changing the face of market research.

E-commerce brands utilise price monitoring software technology to track competitor pricing.

In the fiercely competitive E-commerce world, the key to outperforming the competition is tracking and monitoring the price competing brands charge for similar products and services. Brands need to keep a keen eye on their competitor’s pricing strategy and price changes over several products to stay competitive, and that’s not an easy task even for larger companies.

This is where e-commerce price monitoring technology comes into play.

Ecommerce price monitoring software allows brands to track their competitor’s price changes and dynamically adjust their pricing.

By employing this type of software, brands can stay abreast with competitor pricing and adjust pricing based on demand, competition, and inventory levels.

Many such tools are available in the market, including Minderest, Price2Spy, and Prisync, with sophisticated matching technology and high levels of accuracy.

Market research utilises machine learning and A.I. for brand and performance tracking to revamp advertising and messaging.

While some grey areas are associated with A.I. in other fields, the market research industry has embraced this technology.

One of the things brands need to track constantly is how their messaging is resonating with the target audience and how the market perceives their brand. This is because a brand is not just the logo and tagline. It is a sum of all parts and is an overall feeling that tells a narrative and evokes sentiment and emotion in the audience.

Technology helps brands better understand brand performance and perception to inform better decision-making. It allows brands to measure and bridge the gaps between their intent and how the audiences interpret and perceive their message.

The use of A.I. in brand tracking has allowed market researchers to analyze qualitative surveys at a fraction of the time taken by manual data collection methods. Furthermore, this enables them to ask more open-ended and follow-up questions, find the right panellists faster, eliminate bias, write reports quickly, and significantly improve the quality of their surveys and reports.

In today’s dynamic digital marketplaces, A.I. is powering brand tracking to gauge the changing consumer perceptions.

Sentiment analysis is a sub-category of A.I. and N.L.P., which automatically uncovers feelings, emotions, and sentiments behind plain blocks of text. It is extensively used in brand tracking because it is efficient, reliable, and accurate.

Over 45 percent of the world is on social media. There are about 500 million tweets per day, and about 1.96 billion people worldwide use Facebook every day. Consumers constantly call out brands on these social media platforms and review sites. It would be overwhelming and near impossible to collect data manually. Brands can effectively gauge overall brand sentiment across platforms and channels online using automated tools.

For instance, when the popular ride-sharing service, UBER, launched a new version of its app, it used social media monitoring and text analytics to measure user sentiment about the new version of the app. Eye-tracking technology works similarly and can track users’ engagement scores and emotions on a website.

There are several brand tracking tools available for brands. Candymaker Mars used one such tool that combines the standard digital video metrics, like view-through rates and skip rates, with facial expression tracking of the viewers while watching the ad using an A.I. algorithm.

While the tool measures digital behaviours, it puts enormous weight on gauging emotion and sentiment. This technology is essential to track brand performance in a world plagued with minuscule attention spans. It allows brands to obtain a complete picture of consumer perception.

Many technologies use participants’ webcams to track their facial and emotional responses while viewing ads, providing invaluable data used to inform sales forecasts.

Chatbots are aggregating vast amounts of consumer data.

The usage of chatbots as a communication channel between brands and consumers has increased by 92 percent since 2019.

As many consumers shop online, they engage with chatbots, making them the fastest-growing brand communication channel.

A survey found that up to 80 percent of users answered questions, three times higher than responses from email surveys.

Brands like IKEA are using chatbots to gather valuable consumer feedback. Companies use Whatsapp and Facebook messenger to measure consumer sentiment and feedback efficiently.

The use of brand tracking cannot be overemphasised. It allows brands to understand how their current audience perceives the brand. It can also lead brands to uncover until now undiscovered target audiences.

With brand tracking software, brands can see the true impact of their campaigns. Brand tracking holds the key to insights any brand needs to thrive. Using the right tools and technology, brands can obtain actionable information about the brand perception among the target audience and how it scores against the competition.

A brand is one of the most valuable assets of an organization. It is, therefore, critical to continually measure satisfaction, awareness, and perception. Incorporating brand tracking into their marketing strategy can help brands understand their target audiences and consumer needs and make more profitable marketing decisions. Technology has made it easier to uncover massive data sets to monitor a brand effectively and accurately. By combining this technology with digital metrics, brands can increase their competitive advantage.

One of the most important tasks for any business is making sure your customers are satisfied. Without customers, your business is nothing, and dissatisfied customers are unlikely to stay customers for long.

There are many ways to measure how satisfied your customers are with your current products, service, and brand. This article will take a look at why it’s so important to measure customer satisfaction, some of the methods available for doing it, and finally we’ll explore 5 of the top metrics to pay attention to.

Why it’s important to measure customer satisfaction

Today’s customers have more choices than ever before. The internet has made it possible to find dozens of competitors to a product or brand at the click of a button. If a customer has an unpleasant experience with a product or service, it’s never been easier for them to move on.

Here are some of the reasons it’s so important to prioritise customer satisfaction.

Bad news spreads

But losing a customer isn’t the worst outcome of poor customer satisfaction — they might also tell their friends. When products or services fall short, almost 13% of customers spread the bad news to over 20 people. If you fail to prioritise customer satisfaction, the ripples could spread out much farther than one unhappy person, and in the age of the internet, they could spread very far and fast indeed.

Learn how happy you are making your customers

Measuring customer satisfaction allows you to gain insights into how happy your customers are and any specific areas they like or dislike. By following up on this feedback, you can identify any concerning areas, talk to dissatisfied customers, and find out what you need to fix to improve your customers’ experience.

Identify loyal customers and promoters

Loyal customers are the lifeblood of any business. Those who keep coming back and spending money with your brand are incredibly valuable and should be treated as such. By measuring customer satisfaction you can locate the customers who like your brand and reward them with things like discounts, loyalty points, and other treats.

There’s one group that’s even more valuable than your loyal customers — promoters. These are the people who not only use your brand regularly but also tell their friends and others about you, essentially growing your business for you, for free. Your promoters should be rewarded especially highly and incentivised to keep spreading the word.

Improve revenue

It’s a simple equation: the more customers you retain, the more money you make. If your customers are constantly satisfied with your brand, it’s much more likely they will stick around, keep making purchases, and contribute to your revenue growth. Measuring customer satisfaction helps you take concrete steps to keep your customers happy and your company growing.

Compete with other businesses

Many brands fail to prioritise customer satisfaction, and many don’t measure it at all. This means that by getting to know your customers and their concerns, you can go beyond what your competitors are doing and gain a valuable edge.

Stay ahead

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How to measure customer satisfaction

Focusing on customer satisfaction helps you deliver better customer experiences, attend to your customers’ needs and concerns, and ensure you retain more customers and continue to grow your business. But how do you measure it?

Face-to-face interviews

Talking to your customers face-to-face is one of the most effective ways to measure customer satisfaction (and almost anything else). You’ll get direct answers in real-time, with the option to follow up immediately.

In face-to-face discussions like interviews and focus groups, you’ll also be able to see body language and take note of the quirks that get lost in less personal forms of communication. The challenge is finding a physical space to host these discussions, and incentivising your respondents to take the time out of their day.

Web app surveys

Whether on desktop browsers or mobile apps, online surveys are a quick and easy way to get feedback from your customers. You’ll likely get much more of a response compared to face-to-face interviews, and at a much lower cost to you. However, these surveys are much simpler by nature, and you’ll need to offer some kind of reward for participation (which can be as simple as a small discount code).

Email surveys

Almost everyone has an email account today, and it’s easy to collect email addresses from your customers during the sign-up process. This makes it easy to send quick surveys and questionnaires to your subscribers to measure customer satisfaction.

Telephone surveys

Telephone surveys used to be one of the most common ways to contact customers and get feedback. Today, they have to compete with newer media like email and mobile apps, but they’re still a popular choice for many brands and work especially well with older demographics.

Postal surveys

Postal surveys are one of the slower ways to get customer feedback and tend to result in low response rates, but they are cheap and allow you to contact a very wide pool of respondents.

Top 5 metrics for measuring customer satisfaction

Whatever method you use to contact your customers, you’ll still want to focus on measuring the same metrics. Here are 5 of the most important metrics to focus on when measuring customer satisfaction.

Customer Satisfaction Score (CSAT)

Perhaps the most straightforward metric to measure, Customer Satisfaction Score involves simply asking your customers to rate their level of satisfaction with your brand, product, or service.

It typically involves a scale, usually 1-5 or 1-10, and customers are asked to give a score in a number of areas like ease of use, value for money, and customer service. In addition to a numerical scale, you can also use words like “very satisfied” and “somewhat dissatisfied”.

This metric is simple, direct, and easy to compare with other brands’ results. However, it’s also subjective and easily influenced by lots of factors, not least your choice of wording in the survey itself. It may also be biased towards positive responses over negative and neutral ones.

Net Promoter Score (NPS)

Net Promoter Score is a measure of how likely customers would be to refer you to another person. Usually, it involves an index ranging from -100 to 100, and it can be highly impactful.

Measuring NPS allows us to find out how likely customers are to recommend us to their friends and hone in on specific promoters who we can then reward and ask further questions to determine why they are so keen to spread the word.

The results can be powerful. American Express used an NPS survey to understand their customers better. The insights they gained from the survey led them to implement changes which resulted in a 10-15% increase in customer spending and a 4 to 5 times higher retention rate.

Customer Effort Score

Customer Effort Score measures how much effort a customer felt they had to put in to achieve a given desired outcome. It’s calculated similarly to the other metrics here by asking customers to provide a score on a scale.

CES is a valuable metric because the level of effort customers have to put in is strongly related to their loyalty. In the book The Effortless Experience by Matthew Dixon, Nick Toman and Rick DeLisi, we learn that 96% of customers who invested a lot of effort to resolve issues are more disloyal. In contrast, only 9% of those who did not invest high effort were disloyal.

Customer Churn Rate

This metric measures how many customers you lost over a given period. To calculate, you define the period you wish to measure (like a month, quarter, or year). Take the number of customers at the end of that period and subtract it from the number at the start. Then, divide the result by the number at the start.

This is one way to find out how many customers are happy with your brand — happy customers tend not to leave. Of course, there could be other factors at play like a poor marketing strategy that fails to stay connected with customers. Like all the other metrics on the list, CCR is just one piece of the overall puzzle.

Customer Retention Rate

On the other side of the coin to Churn Rate is Customer Retention Rate. Of all the customers you acquire, how many are you actually retaining?

You calculate this by taking the number of new customers acquired during a period (weekly, quarterly, monthly, etc) and subtracting it from the total number of customers you had at the end of that period. Then, divide the result by the number of customers you had at the beginning of that period to find the CRR.

Customer Retention Rate is an important metric because it costs 5-25 times more to procure a new customer than it does to retain an existing one. Keeping hold of your customers is always much better than finding new ones (although you should of course be doing both). CRR also gives a good indication of how satisfied your existing customers are.

Measuring Customer Satisfaction is an essential activity for companies. Choosing the right metrics to track is a crucial component of this, and can make the difference between an accurate understanding of your customers and confusion. Doing this job right can be a major factor in the growth and success of your business.

Contact us to learn more about how Kadence can help you better understand your customers and conduct important research in a range of areas.

With over 4.5 billion people active on social media, the focus for brands extends beyond just counting likes or shares. These platforms have transformed into rich sources of consumer insights, providing crucial data that can significantly influence and shape brand strategies.

What is Social Media Listening?

60% of companies use social media listening to gather customer insights, influencing their decision-making (HubSpot).

The Evolution of Social Media Listening

Utilising Insights for Brand Strategy

Product Development

Customer Service

Marketing and Branding

Reputation Management

71% of consumers with a positive experience with a brand on social media are likely to recommend the brand to others (Forbes).

Negative Sentiment and Brand Strategy

Social Media Listening in the Digital Age

Brands that engage on social media channels see higher customer loyalty, with a 53% increase in customer retention (Brandwatch).

Social Media Listening for Brand Reputation

28% of brands find listening to social media is crucial for crisis management and preventing potential PR disasters (Sprout Social).

Social Media Listening for Insights into Customer Sentiments

Using Social Media Listening to Gain a Competitive Edge

Key Strategies Derived from Social Media Listening

Guidine Content Creation Strategies for Social Media Listening

Example – GoPro’s User-Generated Content Strategy

Feedback-Driven Product Enhancement using Social Media Listening

Example —Starbucks’ My Starbucks Idea Platform

Insight-Driven Marketing Campaigns Using Social Media Listening

Example— Netflix’s Tailored Social Media Campaigns

Proactive PR and Crisis Management Using Social Media Listening

Example —KFC’s Response to the Chicken Shortage Crisis

Setting Benchmarks and KPIs

Sentiment Ratio: The Significance of a Balanced Sentiment Ratio

Engagement Rate: The Importance of Audience Interaction

Response Time: The Need for Timely Responses

Combatting Challenges and Alarms in Social Media Listening

Being Proactive and the Importance of Immediate and Appropriate Responses

Maintaining Transparency and the Value of Honest Communication

Training & Guidelines: The Significance of Having a Well-Trained Social Media Listening Team

Cautionary Tales: The Consequences of Inadequate Social Media Listening

United Airlines: The “Leggings Incident”

Pepsi: The Kendall Jenner Ad Controversy

Japan: Rakuten’s English Language Change

Indonesia: Grab’s Pricing Policy Backlash

India: Tanishq’s Advertisement Controversy

Singapore: DBS Bank’s Website Outage Response

China: D&G’s Cultural Insensitivity

Final Thoughts: Navigating the Social Media World with Strategic Listening

Embracing a Culture of Listening

Integrated Approach for Maximum Impact

Learning from Mistakes

The Future of Brand Strategy

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Here’s a transcript from the video from Derek Goh:

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Understanding Price-Sensitive Consumers: Unlocking the Secrets of Their Behavior

Choosing the Right Pricing Strategy: How to Optimise Value for Price-Sensitive Consumers

Promotions and Discounts: The Key to Attracting Price-Sensitive Consumers

Data Collection and Analysis: Using Insights to Develop Effective Promotions and Discounts

Case Studies: Real-World Examples of Using Data Analytics to Optimise Pricing and Promotions for Price-Sensitive Consumers

Best Practices: Actionable Recommendations for Optimising Pricing and Promotions for Price-Sensitive Consumers

The Future of Pricing and Promotions: Emerging Trends and Technologies

Using Data Analytics to Optimise Pricing and Promotions for Price-Sensitive Consumers

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Engineering the economics of a loyalty program’s structure is key.

History and Origins of Loyalty Programs

What goals do loyalty programs strive to achieve?

How do loyalty programs work?

Many brands have recently flipped the script on tiered loyalty programs.

How consumer psychology plays a crucial role in the structure and type of rewards program.

The importance of measuring the effectiveness of customer loyalty programs.

How to use market research to measure the effectiveness of customer loyalty programs.

Examples of global brands doing rewards right.

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The rise of mobile usage.

Mobile-first design.

Best practices for mobile responsiveness.

The Technical Side of Mobile Responsiveness

Mobile Optimisation and SEO: A Match Made in User Experience Heaven

Essential Tools and Resources for Mobile Optimisation

Mobile Optimisation and E-commerce: Why It Matters and How to Get it Right