May 1, 2018 § Leave a comment
Gift giving is an important part of retail sales. It also represents an emotional bond made between the giver and the recipient. Retailers should recognize the dual rewards in growing their gifting business because you are touching two targeted consumers at the same time – the purchaser and the recipient. Gift giving strategy can provide exponential results for marketers if done correctly.
Unity Marketing estimates that $1 out every $10 spent in the typical retail store, (general merchandise, apparel, furnishings and others) is spent to buy a gift. Gifts represent approximately $128 billion in spending in 2017. Consumers are typically buying a gift every one to two months.
So what’s behind the science of giving? The act of gifting is typically meant to communicate feelings for and with another, fostering stronger social relationships. New research by the Wharton School looked at what type of gifts build deeper personal relationships, a material gift or an experiential gift.
Experiential gifts win over material gifts
Despite gift givers’ tendencies to give material possessions, material gifts do less to foster meaningful relationships between gift givers and gift recipients. The researchers report, “Experiential gifts, in contrast, make recipients feel closer to the person who gave them the gift, regardless of whether the experience is consumed together with the gift giver. Experiential gifts have this effect because of the emotion they evoke when consumed, particularly when the emotion is shared.”
“Our findings demonstrate that giving experiential gifts is more effective at fostering closer relationships, and therefore implies that gift givers should feel happier as a result of giving an experiential gift compared to a material gift,”
What are experiential gifts? An experience could be providing services like a meal, spa outing, horseback riding, or vacation. But don’t dismay – material gifts can offer experiential aspects – candles, music, books, toys, food and drink items and even things that are nice to the touch – a furry throw, a cashmere pillow or silk pajamas.
Even the actual event of purchasing the gift can be experiential in a story setting or online by telling a story, allowing for touch and feel, and conjuring up warm feelings.
June 21, 2016 § 4 Comments
We love learning new facts about marketing to women like 90% of women don’t think brands understand them. So we decided to find our own facts on how women interact with brands and learn about that crazy love-hate relationship women have with brands.
Our new Lipstick Economy Love-Hate Brand Study looks at 3500 women’s attitudes towards media, brand interaction and purchase influences. We asked about trusted sources of information, average number of social media contacts by network, how they receive brand information and what is important for brands to communicate. We also looked at why women will sign up for email, like a brand on Facebook, follow on Twitter or opt in-to receive text messages.
We thought we would tease you with a few of the interesting insights that will be part of the full research shared at Red Letter Day on August 5.
- 94% of women receive information about brands through emails, while only 5% receive brand information through Snapchat.
- Emails, online reviews and Facebook posts from friends are the top media influences when making purchase decisions.
- Only 12.5% find brands on social media sites like Facebook, Twitter and Instagram annoying.
- 76% of women are the primary decision maker for healthcare in their household.
- Only 1.5% admit that celebrity endorsements are trusted sources when making a purchase.
February 20, 2016 § Leave a comment
Neilsen research shows there are significant differences in how men and women think, react, shop and watch. Understanding how these differences can drive behavior can help marketers create more effective advertising and marketing campaigns. Something Super Bowl 50 advertising clearly illustrated.
A Look at the Super Bowl 50 Ads
This year many of the ads appealed directly to women featuring racing dachshunds (my favorite), Doritos shopping dogs, Super Bowl babies and Hyundai’s spots featuring first dates and distracting men. Spot Trender did interesting research comparing several spots for gender appeal.
In a head to head playoff with Hyundai and Acura, Hyundai did a better job. The Hyundai spot featuring Ryan Reynolds showed a car that didn’t get distracted like the women driving it. Women loved this spot. But a few men (13%) were offended by it, or maybe just a little jealous of Reynolds. Acura’s “What He Said” ad for the Acura NSX was all rock music, special effects and speed. It was liked less than the Hyundai ad by both genders but clearly less than females.
The Death Wish coffee spot featured Vikings in a masculine approach to advertising coffee, even using the line “fiercely caffeinated”. The spot did well with men but the Starbucks ad showing a mom making her Starbucks on a lazy weekend morning did much better with women and did well with men as well.
Contrasts in Men and Women Brains
Nielsen says that while male and female brains may look alike on the outside, there are contrasts in how men and women process information, express emotion, interact with others and ultimately approach their daily activities that involve media and shopping.
Women are hardwired for:
- Big-picture thinking
- “Gut” reasoning
- Social and verbal skills
Men are preconditioned for:
- Concrete thinking
- Goal-oriented tasks
- Logical solutions
Differences in Advertising Appeal
When looking at advertising, women under 35 like ads that are upbeat, aspirational, celebrity-focused, occasionally silly, but never mean-spirited. Women 35-54 may respond more favorably to messages that are sentimental, highlight real-life activities, family friendly and relatable. Men are looking for fast acting movement, competitive activities and often, sadly, suggestive humor.
Tying this together, we see shopping patterns emerge. Men are goal-oriented shoppers. They shop to win or complete a goal. Women are more likely to browse around and shop for deals and special offers. Research says women are more attuned to discount and promotional news than men (men 57% vs. women 62%). Women might head to a factory outlet with name brands while men might go to the department store and pay full price. A few years ago, J.C. Penney learned an expensive lesson on the importance of promotions when they eliminated sales, promotions and coupons and drove away their core audience.
Marketing should employ creative elements and styles that resonate with the way the female brain works. Emotion wins the day over logical facts every time. That doesn’t mean women don’t want information; they will seek out the information after they become interested. Women also appreciate authenticity, social consciousness, and nuance. The female brain is programmed to maintain social harmony, so messaging shouldn’t focus on conflict.
“Women relate to a more aspirational approach, connecting with happy situations that feature characters who allow a woman to imagine herself in their shoes,” says the report. Men like the offbeat humor embodied by “normal guys” in exaggerated situations.
Frequency of advertising also plays into gender receptivity. Women can absorb more information in a 30-second ad than men but they are harder to convince, often only deciding to buy after multiple exposures.
November 8, 2015 § 1 Comment
Want to know something right away? The Google Consumer Survey is a new way to quickly answer marketing questions like “are brides keeping their maiden names”. The New York Times recently quoted a Google Consumer Survey, reporting some 20% of women married in recent years have kept their names. The Google Consumer Survey is a great alternative for quick-turn around questions. How does it work?
If you are thinking about a pre-test of a marketing campaign, testing some key product messages or gauging opinion or reactions, Google Consumer Surveys could be your answer.
With Google Consumer Surveys, you can write your own survey questions online. You pick your target, either the entire US internet population or a custom audience: 25-34 year olds, people who live in Nashville, women, etc. The survey can be fielded to a validated, representative sample of respondents whenever you want it. That means quick results.
Where do the respondents come from? Unlike traditional survey methods, Google survey respondents are people browsing the web who come across your questions as they seek out online content, such as news, entertainment and reference sites. I have answered questions on sites like The Tennessean to be able to access stories. Users answer up to 10 questions in exchange for access to the content.
Google says they automatically aggregate and analyze responses, providing the data through a simple online interface. They give you interactive histograms, clickable demographic segmentation and comparisons, and statistically significant insights―all easily sharable. Results appear as they come in, with full survey completion within days.
And pricing is really attractive. General population surveys are $.10 per complete for 1 question surveys and $1.00 per complete for 2-10 question surveys (regardless of how many questions you have).
Surveys targeted towards specific age, gender, or location demographics are now $.15 for 1 question surveys and $1.50 per complete for 2-10 question surveys.
So back to maiden names for women today! The Google survey found that higher-income urban women were much more likely to keep their names. The Times compared this subgroup to the wedding pages of The Times. Their results: nearly half of women featured in The Times since 1985 changed their names, while about a quarter kept their names and a quarter did not say, according to an analysis of 7,835 opposite-sex wedding announcements in five-year intervals.
It seems the resurgence in keeping names could be because women now go to college at higher rates than men, celebrities usually opt for their single names and couples commonly live together before marriage using both names. By the time, women marry, they have established themselves by their maiden name.
So, Google on friends.
October 6, 2015 § Leave a comment
Gift cards have topped the list of most requested gifts for the last eight years, so it shouldn’t be a surprise to anyone that one out of three gifts is a gift card. Retailers should make gift card sales an important part of their 4Q sales strategy. Fourth quarter sales of gift cards can contribute to strong sales during January.
“It varies based on the business you’re in, but it is not unusual for as much 50 percent of some retailers’ business in the fourth quarter to come from gift cards,” says Ben Kaplan, president and CEO of digital gifting and incentive platform CashStar.
And some retailers are finding that gift cards are a better way to promote their products than the typical discounts. Discounts can have a negative perception. Customers might think “that you are just trying to move product. If you give a gift card instead of a discount, you’re sending a more positive perception of your product to customers.
Gift Card Buyer Segments
In a recent Blackhawk study of gift card buyers, 63% of respondents had purchased at least one gift card in the last year and 94% stated they would be likely to purchase a gift card in the next year.
So it should be no surprise that birthdays (70%) and winter holidays (64%) were the most popular occasions to buy gift cards.
The study segmented gift card buyers into four groups: It’s a Busy Life (33%), Budgeting for a Practical Gift (23%), The Meaningful Gift (22%) and It’s All About the Gift (21%). Marketers can use this information for gift card planning.
It’s All About the Gift. This is a group that loves to give and receive gift cards. Gift cards are their gift of choice. Although they give slightly less than the average amount of gift cards per year, they spend more on individual gift cards. These buyers purchase more restaurant, mass merchandiser, department store gift cards and open loop gift cards than other groups. They buy gift cards in more channels (than other groups) as they tend to buy gifts while doing other shopping. When redeeming gift cards, most spend more than the value of the gift card. This group is approximately 61% female and has a higher percentage of married people. They tend to be more middle aged.
It’s a Busy Life. This group buys gift cards for convenience. They are time strapped and buy out of necessity, rather than affinity. Overall, they tend to buy more than the average number of gift cards per year (8.7) and buy them more often for more occasions—for almost all occasions more than any other group. Because of convenience needs, this buyer tends to buy e-gift cards (47%) and they prefer to shop online or on their phone or tablet. There is a higher percentage of males in this group. They tend to have higher income, be employed full time and the group is more ethnically diverse.
A Meaningful Gift. This cluster of givers want to make people happy. They focus their gifting choices on gifts that have emotional meaning. Eighty-one percent want to give gifts that have an emotional meaning. In the past, gift cards tended to be viewed as impersonal or the lazy person’s gift. However, this viewpoint has changed, mainly because of public opinion. People have begun to realize that people prefer them to physical gifts. Gift cards are the most requested gift and people prefer them.
Budgeting for the Practical Gift. This is a fairly new segment. This group focuses on saving money. Buying gift cards help them budget their gift spending. This group is the most price conscious of all of the clusters. They tend to use coupons and look for promotions. Interestingly, this group uses gift cards as the highest percentage of all their gifts and they do that because they think gift cards are such practical gifts. They tend to give fewer gifts than the other groups and prefer to give a gift that is useful. They spend less on individual gift cards and tend to buy gift cards in mass merchandisers and in the grocery channel (already shopping there.) Of all the clusters, the consumers in this group buy the most for self-use. Birthdays and winter holidays are the most popular occasions for purchase. They tend to buy more restaurant and mass merchandiser gift cards. Only one-third purchase online. This cluster is about two-thirds female and contains more single moms. Overall they have a lower household income level and tend to have less education.
February 21, 2015 § Leave a comment
Google has partnered with the Mayo Clinic to deliver health information through search in a totally new way to provide more information on symptoms and treatment. This change, which began on February 10, will certainly set a new bar for how Americans seek information and medical facilities respond. But it may also pose a challenge for marketers.
Rather than relying on information resulting from a regular search, Google has taken the position that health information needs to be presented in a different and more reliable way. Mayo Clinic has partnered with Google to review all the information provided. Now, when a consumer does a search, they will see an expanded box next to their Google search on desktop and more detailed information on the Google app.
And while this new search box will provide useful information, the change certainly impacts content and search strategy for marketers. The addition of this information box to the search results may likely mean a reduction in clicks to the websites in the SERPs. The person searching may not perceive a need to go to the website with specific information. For instance, if a person needs information on heart attack warning signs, they may never go to a local hospital site, only relying on the Google box of information. Video may be a strong tool in getting around the knowledge graph. Currently videos are not included in the knowledge graph. A 2011 study by AimClear demonstrated that video can receive as much as 41 percent more clicks in organic search over text results.
According to Google, “the box will be filled with enhanced information culled from throughout the web, verified by multiple physicians and, finally, signed off by doctors from Mayo. Altogether, an average of 11.1 physicians have inspected and approved the information Google will now present.”
The information may include special illustrations, symptoms and treatments. Google is beginning with 400 medical conditions which will inform about 10% of current health searches.
This initiative is huge in Google. Here are some of the reasons why Google has made this change:
1. One in every 20 searches on Google is about health information.
2. Three-quarters of all health inquiries start with a search engine, according to Pew Research.
3. The most commonly-researched topics are specific diseases or conditions, treatments or procedures, and doctors for health professionals.
4. 35% of US adult say that they have gone online specifically to try to figure out what medical condition they have or someone else has.
5. One in five internet users have consulted online reviews and/or rankings of healthcare providers/treatments.
6. 31% of cell phone owners, and 52% of smartphone owners, have used their phone to look up health or medical information.
The technology that Google is using is part of the Knowledge Graph which links searches to connected information. Now, you currently see this technology at work when you see the box of information to the right of a search results displayed for a celebrity or famous personality.