Reports Archives - Spinnaker Marketing

October 24, 2014October 24, 2014

Seven Reasons Businesses Lose Customers

A May 2014 online survey conducted by Harris Poll points out seven reasons businesses lose customers.

Poor customer service is costing American consumers 30.8 work hours which translate into $108 billions a year in missed work time and productivity

Poor customer service costs a lot more to businesses and brands when you take into account that 35% cancelled their service or stopped using the brand or business and factor in a customer’s long term value (LTV), lost referrals or worse, since 13% have taken to social media

What frustrated them the most?

44% waiting for a service rep
43% being put on hold
38% feeling that service representatives didn’t know how to fix problems.
35% service rep did not understand their problems
32% having to call back because the problem wasn’t fixed
21% billing issues
12% trying to schedule an appointment

“These service frustrations are significantly impacting service businesses today because consumers are becoming more and more likely to demand not just a great price but a great service experience,” Timms said. “Companies that offer the best experience in all parts of the service process will be the ones that retain their customers, grow, and succeed.”

November 7, 2013

Mothers With Children Under 5 Most Active on Social Media

A new analysis from Experian Marketing Services found that moms with children under the age of 5, are often more active on social media, more likely to shop using mobile devices and more open to engage with brands across digital touch-points than consumers at large.

Moms with young kids represent a highly active and digitally sophisticated segment of consumers who are eager to connect with brands and share their experiences through multiple platforms Continue reading “Mothers With Children Under 5 Most Active on Social Media”

March 11, 2013March 11, 2013

Twitter, Pinterest, Instagram Differing Social Media Demographics

Twitter, Pinterest, Instagram are popular with differing demographics

eMarketer estimates that by the end of 2013 there will be 163.5 million social network users in the US, and unsurprisingly they are a diverse group.

A December 2012 study of social networking demographics from the Pew Internet & American Life Project found that Hispanic internet users were most likely to identify themselves as social network users, at 72% penetration, vs. 68% of black and 65% of white internet users. Pew also found that higher concentrations of women than men were social networkers by a margin of nearly 10 percentage points: 71% vs. 62%.

Social networks such as Twitter, Instagram and Pinterest seem to be attracting a particularly diverse coalition of users. Black internet users, for instance, were significantly more likely than average to use Twitter—while 16% of internet users overall said they used the service, 26% of black internet users said they did so. Hispanic internet users were also slightly overrepresented: 19% reported using the service.

Pew found this phenomenon even more pronounced on photo-sharing service Instagram, now owned by Facebook. Black internet users were nearly twice as likely to use it as the average internet user: 23% vs. 13% overall. Hispanic internet users overindexed as well, while whites were slightly less likely than the average internet user to be found on the site. Pew also found Instagram’s users skewed slightly female: 16% of women said they were on it, compared to 10% of men.

The study confirmed Pinterest’s reputation as skewing largely female: Fully one-quarter of female internet users said they were on it, compared to just 5% of male internet users.

Pinterest is also diverse in another way: While most emerging social networking sites skew heavily toward younger users, Pinterest attracts internet users in a broader range of age groups. With its friendly interface and visual orientation, Pinterest is popular with the 18- to 29-year-olds that frequent most social

Original article

February 25, 2013

Two-thirds increasing spending on paid social media ads

Advertisers’ appetites for paid advertising on social media sites shows no sign of abating in 2013. According to a study conducted for digital brand measurement provider Vizu by Digiday, 64% of US advertisers planned to increase their paid social media ad budgets this year, with just 2% saying they intended to spend less money in 2013 than they did in 2012 on paid social ads.

Most of those increasing their spending on ads on social sites planned to do so by 10% or less. But a significant number were making even larger investments: 26% of respondents reported planning to increase their social media ad spending by 11% or more.

Seven in 10 respondents said they would spend between 1% and 10% of their online budget on social ads, suggesting that for most it is a present, but not a dominant part of the marketing mix. For 13% of respondents, however, it plays a larger role: This group spends 21% or more of their online budgets on paid social media advertising.

Overall, eMarketer estimates that US advertisers will spend $4.1 billion on paid social media ads this year, rising to $5 billion in 2014.

Social Interactions Affect Brand Perception

If brands want to improve their customer perception, having a well-rounded social communications practice that serves both as a marketing outlet and as a place for consumers to solve service issues will help.

In a new study, J.D. Power and Associates measured consumer experience working with companies through their social platform for both marketing (such as receiving a coupon or some other offer through a social channel) and service (such as answering questions about a product or service or solving specific problems) needs.

The study was based on the responses of more than 23,000 consumers and covered 100 brands in six industries: airlines, auto, banking, credit card, telecom and utility. The bottom line: very few companies doing both marketing and service particularly well.

“Hardly any companies are doing equally well on social marketing and social servicing,” Jacqueline Anderson, director of social media and text analytics at J.D. Power, tells Marketing Daily. The discrepancy, she says, has a negative impact on brand perception.

The study found a correlation between a company’s overall social communications and a consumer’s likelihood to purchase and overall perception of the company. Among highly satisfied consumers (those with satisfaction scores of 951 or higher on a 1,000-point scale), 87% said their online interaction with the company “positively impacted” their likelihood of purchase from that company. Meanwhile, 10% of consumers with low satisfaction scores (less than 500) said their experiences with a company’s social communications “negatively impacted” their likelihood of purchase.

According to the study, nearly a third of consumers ages 30-49 and 38% of those over 50 interact with companies via social marketing (compared with only 23% of consumers 18-29). However, 43% of the younger demographic use the channels for social media interactions, while only 18% of those over 50 do.

Understanding exactly which consumers are using social media channels to what end will go a long way in helping companies improve their overall communications, Anderson says. Companies will have to evaluate how consumers are using their social media channels and then develop a strategy to address those patterns. This may require some of them to reorganize.

“It’s kind of a failure to understand why consumers are reaching out,” Anderson says. “Many companies are still organized around servicing on one side and marketing on the other.”

Among the industries evaluated, the auto industry is the only one that performs particularly well when it comes to marketing and servicing via social media. The wireless industry scores well when it comes to social servicing interactions, while utilities perform well in social marketing.

January 30, 2013

Companies’ Approach to Advertising on Social Media

Since the arrival of social media platforms, companies have tried to figure out how to best use them to get their messages to consumers, often with mixed results. Some brands have embraced the notion that social platforms like Twitter allow constant interaction, for better or worse, with their customers.

Others have turned away from some strains of social media, as General Motors did last spring when it stopped advertising on Facebook while raising questions about the return on its investment. The move had a ripple effect in the advertising world, with many brands questioning whether the costs of being on social media were worth it.

A new report issued Tuesday by Nielsen and Vizu, a research company owned by Nielsen, shows that brands think they might be turning a corner, specifically when it comes to paying for their use of social media.The report examined the opinions about social media marketing among more than 500 digital media professionals — including brand marketers, media agencies and advertisers — from September to October 2012.

The study found that that

89% of advertisers continued to use free social media products. Nielsen did not release the names of specific social media platforms mentioned by the respondents, but they are likely to include Facebook and Pinterest, as well as Twitter.
75% of the companies surveyed said they were also spending more for social media content, which could include paying bloggers to write posts about a product or using third-party technology to push videos on to the Web in the hope that they become viral.
70% of the advertisers surveyed said they dedicated up to 10 percent of their budget to paid social media advertising, while 13 percent dedicated more than 21 percent of their budget. Those numbers are expected to increase in 2013.

The results come as companies like Twitter and Facebook are making more diverse advertising options available to brands. Last year, Twitter announced a number of advertising and media initiatives, including a survey product that enables marketers to ask Twitter users a handful of multiple-choice questions. Facebook began testing a new advertising mechanism using a technology called real-time bidding, which allows advertisers to place bids on ad space at specific times.

“Advertisers are starting to look at social media as an integrated part of their advertising strategy,” said Jeff Smith, the senior vice president of product leadership for advertising effectiveness at Nielsen.