What is the Opportunity for
“SoLoMo” (Social. Local. Mobile.) to
Improve the Customer Experience?
3 Smart Ways to Connect with Today’s Consumer
An Empathica Whitepaper
www.empathica.com
An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
Social. Local. Mobile. These are the new battlegrounds for providing relevancy to
today’s consumers. More than ever before, consumers are becoming empowered
by the use of new technologies. These technology savvy consumers are changing
the rules of commerce and shifting the balance of power in their favor when it
comes to the relationships they have with brands.
Adoption of these technologies is expected to accelerate rather than slow down. A
2012 study by Neilson revealed that smartphones now account for almost 50% of
mobile phone subscriptions in the U.S., which represented a 38% increase over the
prior year. In fact eMarketer estimates that there will be 115.8 million smartphone users
in the U.S. by the end of 2012, with that number growing to 176.3 million by 2015.
“Discussions on Twitter and
Facebook are playing an
increasingly influential role
in the fate of restaurants
and retailers.”
Not only are consumers becoming more mobile, but we are becoming more social as
well. As the undisputed leader in the space, Facebook, recently published its current
user base as in excess of 901 million users globally.
Increasingly, consumers are turning to social media as their primary source for
information on brands and products. Their next great dining experience, the hot
new gadget, the up and coming new store — discussions on Twitter and Facebook
are playing an increasingly influential role in the fate of restaurants and retailers.
Consumer insights research done in 2012 by Empathica supports this trend with
72% of survey respondents indicating that information on Facebook had influenced
their retail and restaurant decisions (see Figure 1). Even more importantly, half
indicated having tried a brand because of a social media recommendation.
Figure 1
Social Media
Recommendations &
Consumer Behavior
Smartphone owners use their devices in
stores to check prices and more
Nearly 3-in-4 consumers (72%)
use Facebook to make retail/
restaurant decisions.
Half of consumers have
tried a new brand due to
a social media recommendation.
72%
Source: Empathica Consumer Insights Panel, Wave 1 2012
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
In addition to this, when consumers are out shopping or dining they now have the
power of the internet in the palms of their hands with the latest smartphones. At
their fingertips and in real-time, they can search for product ratings, reviews and
more. Some mobile apps even provide price and discount comparisons. Add that
to apps that are designed to generate local incentives or group discounts, and the
experience consumers expect from brands has changed forever. For example, 2012
research by ComScore found that 43% of smartphone owners have used their mobile
device while in a store for a shopping related reason. Although these consumers
have newfound expectations of the experience they receive, some things remain the
same. Despite these new expectations, they are still eager to be loyal to their favorite
brands. However, how these brands earn and keep that loyalty must change.
“The bottom line with social,
local and mobile consumers
is personalization.”
The bottom line with social, local and mobile consumers is personalization.
Technology has groomed consumers to expect a personalized experience from
their interactions with the brands they frequent. Unfortunately, in the eyes of these
same consumers many brands are falling short of this expectation with 2 in 5
Empathica Consumer Insights Panel respondents indicating they did not feel as
though their shopping experiences are being personalized. Furthermore, according
to a CMO Council 2012 report entitled “The Leaders in Loyalty: Feeling the Love
from the Loyalty Clubs,” they found that 54% of U.S. and Canadian consumers
would consider ending their loyalty relationships if they were not given tailor-made,
relevant content and offers (see Figure 2).
Figure 2
Where market researchers used to talk about demographics in general terms (e.g.
“males 18–35”) today’s consumers see themselves as a demographic of one (i.e.
“me”) and expect experiences that reflect that. While this creates a shift in how
brands must do business, the technologies available today makes this transition
more realistic. Smartphones, social media, near field communications (NFC), the
rise of “big data,” all these new technologies can act as the building blocks to highly
personalized consumer experiences.
Consumers want their brand interactions to be through the channels they prefer
and with the tools they use. This applies to everything from the mechanisms they
use to pay for purchases (e.g. NFC devices versus cash and cards) to the activities
that earn loyalty points (check-ins versus purchases) to the loyalty rewards they get
(highly personalized versus generic discount), and to how they give feedback to the
brands they frequent (increasingly via mobile devices).
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
The Challenge of Silos
While many brands are trying to better connect the dots across all these points
of interaction, very few are succeeding in doing so. One reason for this is how
the various channels between consumers and brands have been built in their own
silos. A web team managing an e-store, separate from the marketing department,
separate from the operations managing in-store experiences for example all focus
on different types of interfaces (see Figure 3).
“The experiences that they
deliver within their locations
must be consistent with the
quality of the experiences
of the other channels AND
reflect consumers’ values
and expectations.”
Figure 3
To effectively adapt to social, local and mobile consumers, brands need to provide
them with a seamless and consistent experience across all these channels. In
particular, the experiences that they deliver within their locations must be consistent
with the quality of the experiences of the other channels AND reflect consumers’
values and expectations.
Local stores and restaurants are where the most important experiences will always
happen. Even the world’s largest online retailers like Google and eBay are realizing
this and have begun experimenting with physical stores so that consumers can touch
and feel a product before making a purchase, or ask questions of a live associate.
These brand locations should also be the focal point of any effective customer experience
management (CEM) program. As such, these programs can serve as an ideal starting
point for delivering increasingly personalized experiences to SoLoMo consumers.
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
3 Ways to Connect with the Modern Consumer
Bringing these consumer and technology trends together starts with a three step plan:
1. Unlock the power of smartphones
Self-service solutions that support in-store operations, including product
searches and on-site ordering; streamlined self-checkout, and post-experience
communications to stay connected with shoppers are just some of the ways that
smartphones can improve the customer experience.
“For consumers, smartphones
have become their preferred
channel for interacting with
each other.”
By putting mobile solutions in the hands of frontline staff and managers, brands
can cultivate more informed and personalized interactions with their customers.
Mobilizing the workforce can allow brands to create a more personal connection
with consumers, thereby setting the tone to convert them into valuable brand
advocates. Mobile solutions can also free managers from back rooms, so they
can focus on what they do best — service customers and coach their staff on
how to deliver an experience that “WOWs.”
For consumers, smartphones have become their preferred channel for interacting
with each other. It makes sense then, that when given the option they will also
choose to interact with their favorite brands in the same way. Consumers are
showing a real desire to use this new found channel to connect with the brands
they frequent — 37% of Empathica Consumer Insights Panel respondents
indicated having visited a brand’s website through a mobile phone (see Figure 4).
Figure 4
Allowing them to provide feedback and share positive experiences through social
media on their smartphone devices is a simple way to reinforce and increase the
level of engagement that brands have with their most loyal customers. Ensuring
that customer experience programs take these devices into account can be a
simple update that can yield a tremendous return.
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
2. Start engaging with customers to capture feedback in the moment
The key for brands today is to connect with customers more regularly in an easy
and meaningful way. One new technology that has emerged to make this easier
is the QR code. They offer brands the potential to connect with customers in a
real-time and immediate fashion.
QR codes are an extension of the online world into the physical world. The early
usage of QR codes was as a tool to enhance the information available through
advertising. For example, “Scan a QR code to get more information on a product
by visiting the product website on your phone.”
“The next stage of the
evolution of the QR code will
be their increasing usage as
a tool to promote ongoing
collaboration between
consumers and brands...”
In some ways QR codes are still at the “banner ad” stage of evolution. Consumers
typically expect the following workflow, see Figure 5 below:
Figure 5
The next stage of the evolution of the QR code will be their increasing usage as a
tool to promote ongoing collaboration between consumers and brands (or what
is known as “brand co-creation”). Some forward thinking brands are already
doing this by incorporating QR codes into their existing CEM programs. By
implementing this subtle yet profound enhancement to the customer feedback
process, it sets the tone for the brand as forward thinking and in tune with
consumer technology preferences.
In addition, by incorporating customer feedback or the opportunity to rate and
review a product or service into the process, QR codes can evolve from being a
one way marketing channel to a collaborative two way interaction. As illustrated
by the below Figure 6, QR Code usage is now about starting interactions and
creating a dialogue with consumers.
Figure 6
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
This allows brands to better connect with consumers through more detailed
feedback, enhancing their current feedback efforts. QR codes also present an
opportunity to connect with consumers before the point of sale — whereas most
feedback occurs after that point. QR code posters can be placed in store aisles
or dining room tables to grab feedback during multiple steps of the customer
journey (see Figure 7). In doing so, brands can better engage with both their
current customers and even potential future customers.
“QR codes also present an
opportunity to connect with
consumers before the point
of sale...”
Figure 7
A Retail Example
A Restaurant Example
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
3. Drive local action through social media advocacy
Brands today have an opportunity to change the way they approach how they
market to and engage with their customers — provided they are adequately
prepared to do so!
According to a Neilson Global Trust in Advertising Survey Report issued in 2012,
“92% of consumers around the world say they trust earned media, such as wordof-mouth and recommendations from friends and family, above all other forms of
advertising.” See Figure 8 illustration.
Figure 8
To what extent do you trust the following forms of advertising?
Global Average
Trust Completely/ Somewhat
“Most brands have a
silent majority of happy
customers. In fact, having
conducted hundreds of
millions of customer surveys
at Empathica, we’ve found
that over 80% of respondents
indicate that they had a high
level of satisfaction with the
brands they frequent.”
Don’t Trust Much/ At All
8%
Recommendations from people I know
92%
Consumer opinions posted online
70%
30%
Editorial content such as newspaper articles
58%
42%
Branded Websites
58%
42%
Emails I signed up for
50%
50%
Ads on TV
47%
53%
Brand sponsorships
47%
53%
Ads in magazines
47%
53%
Billboards and other outdoor advertising
47%
53%
Ads in newspapers
46%
54%
Ads on radio
42%
58%
Ads before movies
41%
59%
TV program product placements
40%
60%
Ads served in search engine results
40%
60%
Online video ads
36%
64%
Ads on social networks
36%
64%
Online banner ads
33%
67%
Display ads on mobile devices
33%
67%
Text ads on mobile phones
29%
71%
Source: Nielsen Global Trust in Advertising Survey, Q3 2011
The old model of marketing to new customers was a war of attrition. Target a very
large group of people and whittle away through a qualification funnel until you get
to the right ones. Whether that ended up being 1% or 10% of the original pool,
was always a bit of a gamble. This practice was both very time consuming and
also very expensive.
There is a hidden opportunity for brands that has always existed, but has yet to be
fully taken advantage of. Most brands have a silent majority of happy customers.
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
In fact, having conducted hundreds of millions of customer surveys at Empathica,
we’ve found that over 80% of respondents indicate that they had a high level
of satisfaction with the brands they frequent. In addition, the majority of these
customers is also open to sharing these stories, and indicates a high intent to
recommend to their friends (see Figure 9).
Figure 9
A Retail Example
A Restaurant Example
1.
Find Satisfied
Customers
2.
Convert
Customers to
Advocates
3.
Amplify the
Voice of Your
Advocates
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An Empathica Whitepaper: What is the Opportunity for “SoLoMo” (Social. Local. Mobile.) to Improve the Customer Experience?
Building great word-of-mouth to drive brand growth and local advocacy is simply
a matter of connecting the dots between those happy customers, their social
networks and their friends and followers. What better way to move beyond
generic unbranded marketing messages than highly personalized word of mouth
delivered through personal networks from trusted friends?
Everything Old is New Again
In a sense, for savvy brands to keep up with changing consumer demands they need
to simply continue doing what they’ve always done — deliver great experiences that
consumers will remember and tell their friends about. Today the opportunity is to do
so while incorporating the new technologies that have become an integral part of all
of our lives. Social, Local and Mobile consumers may have access to new ways to
communicate and new expectations, but ultimately they still want to be loyal to their
favorite brands, and share great experiences with their social circles.
Read the following case studies to learn about how some brands are using new
technologies to better connect with their customers today.
Red Robin
www.empathica.com/redrobin
Debenhams
www.empathica.com/debenhams
Jeep Chrysler Dodge
www.empathica.com/chrysler
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About Empathica
Empathica is the leading provider of social Customer Experience Management (CEM) programs to the world’s most respected
multi-unit brands in the retail, food services, automotive and hospitality sectors. Its rich analysis of survey data using state-ofthe-art surveying and dashboard reporting software allows for performance-improvement solutions, evidence-based marketing
insights, and customer experience management consulting. Empathica is headquartered in Toronto, Canada with executive
consultant offices throughout the United States and a European office in Birmingham, England.
www.empathica.com
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