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SocialShop
A framework for using social media
to influence shopping decisions
by




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                                                     © 2012 Leo Burnett/Arc Worldwide
Leo Burnett and
    Arc Worldwide have begun
    to map the Wild West.


A        s social media platforms multiply and
           consumers’ connections increasingly
influence their purchase decisions, it’s harder
to know which social media to use. It’s not just
                                                        State of the Industry:
                                                        State of Chaos
                                                        Marketers spent $2.494 billion on social media
                                                        marketing in 2011. That’s projected to jump 37%
Facebook and Twitter out there, and it’s getting        to $3.417 billion in 2012 and up to $6.227 billion
more crowded every day. Marketers need a road           by 2014, according to ZenithOptimedia.
map so they can evaluate strategically and spend        	 The explosion of social media has given
wisely.                                                 marketers many new tools to converse with
	 Arc and Burnett studied the specific ways             shoppers – maybe too many. Decision-making on
that social media engagement affects the process        choosing and activating social media platforms is
of shopping, then drew up a framework that              scattershot, fed by marketers’ anxiety that they
maps out the best social media platforms to             might miss an important new platform or channel.
engage people based on their shopping needs.            Facebook, Groupon, Twitter – marketers jump in
Already, the framework has helped sell more             simply because they feel like they should be there.
McDonald’s French Fries, boosted fountain sales         Social media planning is reactive, not strategic; it
and goodwill for Coca-Cola and 7-Eleven, and            is random, not systematic.
remodeled the way Whirlpool collaborates with           	 “There are a lot of unknowns and Wild West
home center retailers.                                  behavior in the social media space, let alone
	 Arc Worldwide’s SocialShop Framework                  the social shopping space,” says Masha Sajdeh,
makes social media a strategic choice in shopper        Senior Vice President of Insights and Strategy at
marketing rather than a reactive execution. The         Leo Burnett.
framework overlays three blueprints, starting with      	 Of course, 50 years ago, the ad industry faced
category mindsets, which determine the shopper          the same dilemma, figuring out the role of TV
needs, which in turn define the appropriate             alongside radio, newspapers, magazines, and
social media vehicles. The framework, grounded          billboards. “Look at the structure we have today
in Arc’s proprietary research, enables marketers        to analyze, plan, and target these media,” says
to set a process to choose and activate the right       Nick Jones, Executive Vice President and Retail
social media for each brand.                            Practice Lead at Arc. “It’s time to bring that kind
	 This approach can also improve traditional            of rigor to social media.”
shopper marketing as path-to-purchase strategies        	 Consumer habits set the pace. Fully 96% of
evolve. Marketers who apply Arc’s framework to          Americans use social media, and 42% of adults
traditional tactics can better integrate all elements   18-49 who are online have woven social media
of shopper marketing and better connect with            into their shopping, according to Arc’s research –
shoppers at all touch points.                           roughly 48 million people.



2 SocialShop
Ninety percent of crowdsource deal users have                             platform. Then to deepen the understanding of
purchased a deal, while 72% of the heaviest social                          how and why social shoppers choose to engage
shoppers have made a purchase after engaging on                             with brands through social media, Arc conducted
Twitter, according to Arc’s research. One third of                          in-depth interviews among 24 social shoppers.
social shoppers use Facebook on a mobile device                             The agency followed up in fourth-quarter 2011
while shopping; 31% have used review sites and                              with quantitative research among 800 social
been inspired to try a new brand, Arc found.                                shoppers. Finally in the fourth phase of research,
	 It’s clear that social media has the power                                Arc monitored how 125 social shoppers used
to grow the customer base exponentially by                                  Facebook for shopping during the 2011 holiday
leveraging influencers to create additional buyers.                         shopping season. In-depth interviews were
So Arc began developing its framework by                                    conducted among 20 of these social shoppers to
asking: Why and how do people use social media                              better understand how Facebook impacted their
to shop, and what’s behind this behavior?                                   shopping experiences.
	 Arc conducted two waves of research to learn                              	 Arc’s study uncovered eight Social Shopper
three things:                                                               Needs that form the basis for mapping all social
  •	 Reasons people use social media to 	 	                                 shopper behavior.
   	 shop (Shopper Needs)                                                   	 These eight Social Shopper Needs fall into
  •	 Types of social media people use for 	                                 four quadrants with social media serving a
   	 shopping (Social Media Platforms)                                      different purpose in each quadrant:
  •	 Variations in behavior across product 	
   	 categories (Category Mindsets)                                          Utilitarian needs (savings, efficiency, compari-
                                                                             son): Shoppers use social media to save time and
	 In January 2011, Arc conducted quantitative                                effort shopping, compare products and retailers,
research among more than 2,000 online                                        get deals and discounts. This is usually the first
Americans to explore the reach of social shopping.                           thing that marketers do with new media. It’s what
This wave captured the number of people who                                  they did when consumers first went online, and
use social media to shop, which platforms they                               it’s what they did when social media emerged:
use, and the types of behaviors they engage in by                            offer quick and easy deals and discounts.


                                       Social Shopper Needs
                                                                                          Get immersed in the brand
        Feel confident
                                                   eds                               ind
                                                                                        ulg
        about my decision
                                               l ne
                                             na                                            e
                                                                    connection




                                                                                                          Share opinions
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                                                                                                           and passions
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                                                                                          o
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                                                                                     es
                              info




                                                                                                      s




        Compare
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                                                                                 x
                                                         at




        products and
                                                                                 e
                                                               io




        retailers
                                                                  n




                                      comparison                                 in-the-know
                                                                                                            Stay current
                                                                    y
                                                                 nc                                        about brands
                                                                           re
                                                                    savings




                                                               ie
                                                                              l  ev




                                                        fic
                                                      ef
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                                                                                                     ds
                                                                                    ce
                                 lit a




                                                                                                   e




        Save time and
                                                                                                ne




        effort shopping                      n
                                    ri a




                                                                                                 v
                                                                                              si
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                                                 ne
                                                      ed                                  p ul             Get tailored
                                                           s                         im               recommendations
        Get deals and discounts


          © 2012 Leo Burnett/Arc Worldwide
                                                                                                                 SocialShop 3
Informational needs (comparison, validation,                             Sizing Up Personalities
connection): Shoppers want to be confident about                 Clearly, not all shoppers have similar social
their choices and are hungry for information.                    shopping needs. The study revealed six social
They once used the online content for accessing                  shopper archetypes, each using social media in
in-depth product information. Now, they use                      different ways.
social media (among other tools) to compare                      	 On one end of the spectrum are two types of
products and retailers, get immersed in the                      shoppers with more utilitarian needs, the “Dollar
brand, and feel confident in their purchase                      Defaulter” and the “Efficient Sprinter.” The
decisions. Social media is a quick way to validate               Dollar Defaulter is a dollar-sign connoisseur, with
choices. Right now, consumers are using social                   just one social shopping goal: find the cheapest
media to share information more than retailers                   alternative. Dollar Defaulters choose only the
and manufacturers are; marketers are not yet                     lowest prices and do not feel loyal to specific
using social media to its full potential.                        brands. To connect with Dollar Defaulters,
                                                                 brands should broadcast special deals on retailer
 Indulgent needs (connection, expression, websites such as drugstore.com and provide the
 in-the-know): Shoppers use social media to                      ability to share those deals with friends.
 get immersed in the brand, share opinions and                   	 Efficient Sprinters are a few dollars shorter,
 passions, and stay current on brand news. “There                but several minutes richer. Efficient Sprinters
 are more ‘mavens’ in the world than ever before, want to save time, and use social media to
 and they can indulge in their passions via social               select items that are considered most popular
 media more easily than through traditional                      to simplify their shopping process. To connect
 communication outlets,” Sajdeh says.                            with Efficient Sprinters, brands should simplify
                                                                 the buying process. In addition, brands should
 Impulsive needs (in-the-know, relevance,                        provide a curated list of top-selling products on
 savings): Shoppers use social media (especially                 their social channels and retailer websites.
 via mobile) to stay current about brands, get                   	 Some popular mobile shopping applications
 tailored recommendations, and find deals and                    cater to these utilitarian shoppers. Meijer’s
 discounts. Accessing social media via mobile                    Shopping List app includes a “Find It” function
 devices delivers instant gratification and real- that locates items in the store. Home-delivery
 time shopping spontaneity. It’s part of the                     service Peapod offers a “Guess My List” function
 growing trend towards shopping-on-the-go:                       that saves time by populating a list based on
 Mobile technology enables shoppers to buy on                    past purchases. Walmart’s “Rollbacks” on
 the fly, and social media reinforces purchase                   Facebook lets shoppers share information on
 decisions. It also broadens options, with tools like            price cuts at their local store.
                                       Light Social Shoppers                                                                                                    Heavy
 Amazon.com’s “If you like this, you might                       	 In the middle ofSocial Shoppers
                                                                                    Medium
                                                                                                     the spectrum are
 like that” feature.                   dollar defaulter shoppers with more informational needs, the
                                                                                    quality devotee                                                             savvy p
                                        will remain “Quality Devotee” and theratings to help validate choice. The
 	 The eight Social Shopper Needs To find the cheaper alternatives.                 For reviews and “Strategic Saver.”                                          For broadc


 stable, even as new media venues emerge. (See                   Quality Devotee is a high-maintenance, high
“As New Media Emerge, Will the Framework                         standards shopper who uses social media to
 Hold?” on page 5.)                                              shape purchasing decisions, validate choice and
                                                                 feel empowered when making a purchase. No
  Light Social Shoppers               Medium Social Shoppers the time or researchShoppers Quality
                                         Light Social Shoppers   matter            Heavy Social involved,
                                                                                      Medium Social Shoppers                                                      Heav

 dollar defaulter                        efficientdefaulter
                                           dollar sprinter
                                        quality devotee                                           strategic devotee
                                                                                                    quality saver
                                                                                                 savvy passionista                                              oppor
                                                                                                                                                                 savvy
  To find the cheaper alternatives.     ForTo buy most popular toalternatives. choice.
                                            reviews and ratings or help validate
                                              To find the cheaper convenient.                    For comparison shop andtrends, help validate choice.
                                                                                                  To broadcasting latest find savings on brands she wants.
                                                                                                     For reviews and ratings to brands and retailers.           To score fu
                                                                                                                                                                   For broa
                                                                                                                                                      RTS
                                                                                                                                                   MER
                                                                                                                                                 REPO
                                                                                                                                                CONSU




 efficient sprinter                         efficient sprinter
                                        strategic saver                                           strategic saver
                                                                                                 opportunistic adventurer                                          oppo
  To buy most popular or convenient.    To comparisonmost popular savings on brands she wants.
                                              To buy shop and find or convenient.                    To comparison shop and find savings on brands she wants.
                                                                                                 To score fun, unexpected content or deals.                       To score



4 SocialShop                                                                                                      © 2012 Leo Burnett/Arc Worldwide
Devotees will find the best product available. To
connect with Quality Devotees, brands should
aim to help shoppers build knowledge through                                As New Media
in-depth reviews and expert opinions via blogs,
forums, review sites and YouTube.
                                                                            Emerge, Will the
	 The Strategic Saver is a black-belted negotiator,                         Framework Hold?
using social media to comparison shop and spend
time deal digging only for her favorite brands. To                          As existing social media evolve
connect with Strategic Savers, brands should aim                            and new media are introduced,
to validate choices by offering custom shopping                             the eight enduring Social Shopper
tips and ways to save money by tapping into blogs,                          Needs won’t change.
forums and review sites.                                                    	 “This model is rooted in human
	 Among the heaviest social shoppers are                                    behavior, so it holds true for old-
those with more indulgent needs, the “Savvy                                 world ‘social media’ that we had
Passionista” and the “Opportunistic Adventurer.”                            before digital technology – things
The Savvy Passionista is a social trendsetter, using                        like word-of-mouth, sampling,
social media channels to broadcast the latest                               and coupons,” Jones says. “We
trends and stay connected with favorite brands.                             have plotted those tactics against
Savvy Passionistas are indulgent and use social                             this model and it works. That
channels to express feelings and stay relevant                              reassures us that the model is
and “in-the-know.” To reach Savvy Passionistas,                             solid, and not just a response to
brands should help shoppers discover, express and                           today’s technology.”
connect on emerging and established platforms –                             	 Arc also can easily map new
everything from Facebook to Pinterest to Twitter.                           social media platforms with the
	 The Opportunistic Adventurer is a daily                                   model. As new platforms emerge,
dealaholic, on a mission to score fun and                                   “We’ll be able to tell quickly what
unexpected deals. With impulsive social shopping                            needs they’ll fulfill and how they’ll
tendencies, this shopper demands timely and                                 be used,” Jones says. “The model
relevant deals. To connect with Opportunistic                               will hold, even as the platforms
Adventurers, brands should invest in tailored                               evolve.”
deals that are “too good to pass up.” In addition,                          	 Shopper Needs won’t change
brands should promote through geo-location                                  dramatically, Sajdeh adds. And
applications like Foursquare, build visibility on                           they don’t just apply to social
daily deal sites such as Groupon and provide                                media. “Look at all your shopper
 Medium Social Shoppers on Amazon. Social Shoppers touch points,” she advises.
tailored recommendations                Heavy
	This devotee       diverse population savvyshopper
                                        of                                  “This thinking applies to all your
 quality                                           passionista
  For reviews and ratings poses choice.  For broadcasting for
                                                                            marketing channels, however
personalities to help validatea crucial question latest trends, brands and retailers.
marketers: How can I best use social media to                               they evolve.” 
address different shoppers, with their various
combinations of needs? Which social media
platforms should I use to meet all these diverse
needs of shoppers?
     Light Social Shoppers                                    Medium Social Shoppers                                      Heavy Social Shoppers

 strategic defaulter
    dollar saver                                            opportunistic adventurer
                                                             quality devotee                                              savvy passionista
 To comparison shop and find savings on brands she wants.
      To find the cheaper alternatives.                     To score fun, unexpected content or deals. choice.
                                                               For reviews and ratings to help validate                   For broadcasting latest trends, brands and retailers.




     efficient sprinter                                       strategic saver                                             opportunistic adventurer
      To buy most popular or convenient.                       To comparison shop and find savings on brands she wants.   To score fun, unexpected content or deals.


© 2012 Leo Burnett/Arc Worldwide
                                                                                                                                                      SocialShop 5
Mapping Out Social                                                         	 By adding this analysis to its grid of Shopper
Media Platforms                                                            Needs, Arc created an imprint that defines the
Of course, each social media platform serves                               needs to which each social media platform best
 certain Shopper Needs better than others. Arc                             delivers. While social shopper needs will remain
 analyzed the most commonly used social media                              consistent, the imprint of platforms is expected
 platforms against its eight Social Shopper Needs                          to change as new platforms emerge and address
– starting with Facebook and Twitter, but also                             shopper needs.
 covering Groupon, FourSquare, YouTube, Yelp,                              	 “The map helps marketers zero in on the
 blogs, forums and others. Arc evaluated each                              platforms they need to use, based on the shopper
 social media platform on its ability to meet the                          needs for their brand,” Jones says. “It’s a way to
 eight different shopper needs. Each platform was                          get up to speed quickly on platforms that are
 then indexed or compared to other platforms                               relevant to brand strategy, without wasting time
 to determine which needs it over or under-                                on social media platforms that are popular but
 delivers on. Facebook, for example, helps people                          not necessarily right for the job.”
 stay connected to friends. It best delivers views                         	 Marketers can use the imprint to determine
 and byte-sized information via computer, in                               which combination of social media platforms is
 thoughtful ways to your inner-circle of friends.                          best for their brand, based on the Shopper Needs
Twitter, on the other hand, helps people stay                              they serve. “Look at what you’re trying to do,
 connected to trends. It best delivers bits of news,                       and which platforms do it best – don’t just stamp
 via mobile, in spontaneous ways and reaches an                            Facebook and Twitter everywhere,” Sajdeh
 outer-circle of friends.                                                  advises.



                                Social Platform Strengths/Roles
                                                               HIGH RISK


               burden                                                                                            passion
                                                               HIGH RISK


               burden                                                             blogs
                                                                                  blogs                          passion
                                                         s                           ind
                                                      eed                            indulg
                                                   l needs                              ulge
                                                 nal n
                                                                 connection




                        blogs   forums
                                                 na                                        e
                                                                connection




                                                                                                         blogs
                                                                                            nt nt
                                         tiotio




                        blogs   forums

                                                                                        on
                                                                                                         blogs
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                                       ma a




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                                                                                                    e
                                                                                                    ss




                                                                                 pres
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                                                                                  r
                                                                              exp
                                                           at at




                                                                                                                                           HIGH REWARD
  LOW REWARD




                                                              io io




                                                                                x
                                                                                                                                         HIGH REWARD
LOW REWARD




                                                                              e
                                                                nn




                       forums               comparison                        in-the-know
                       forums               comparison y                      in-the-know
                                                         ncy
                                                                        re re
                                                                 savings




                                                      ienc
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                                                                savings




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                                                                                      imp ul
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                                   forums

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                   $
                                   forums
                                                        s


               routine                                                                      entertainment
                                                                              $
                                                                              $


               routine                                         LOW RISK
                                                               LOW RISK
                                                                                            entertainment
                                                                                                            © 2012 Leo Burnett/Arc Worldwide




6 SocialShop
The goal, of course, is to set an effective social       your friends, the people you trust,” Sajdeh says.
 marketing strategy based on the combination of            “In that crunch time of purchase, people call two
 needs and appropriate platforms relevant to your           or three friends they trust and ask their advice on
 shopper.                                                   what to buy. What if that information could be
 	 “Who you’re targeting and what role your                 aggregated in one place onto a short list of what
 brand plays in their day and in their lifestyle            your friends think? Connecting Whirlpool’s
 anchors which social media you should                      information page with Facebook and the user’s
 choose, and how you activate,” Sajdeh explains.            own social network becomes important.”
“Depending on the Shopper Needs you want                    	 “One obvious question about Arc’s framework
 to focus on, you should pick the platforms best            is, ‘Does the model mean I shouldn’t be putting
 suited to meeting those needs. For example,                coupons on Facebook, because it doesn’t fill a
 high-impulse shopping – where timely offers                utilitarian need?’” Jones posits. “We’re not saying
 and spontaneity affect purchase – is better served         the framework dictates black-and-white solutions.
 by Groupon and location-based offers than by               What it shows is that if your brand fits shopper
 Facebook.”                                                 needs that aren’t filled by Facebook, you should
 	 For informational Shopper Needs, choose                  at least be looking at other venues that fill those
 channels that can deliver on the need for                  needs, even if you still plan to use Facebook. Are
 validation and can supply shoppers with in-depth           there other venues where coupons have more
 content – a good blogging platform, for example,           validity? Don’t ignore those.”
 or YouTube videos that show how the product
 works. In fact, consumers are creating their own
 product comparisons, posting YouTube videos               Synchronizing with the
 comparing vacuum cleaners or pruning saws – a             Shopping Mindset
 sort of poor man’s Consumer Reports, by the hand          Once Arc clarified different shopper needs and
 of consumers themselves. “Shoppers rely on other          the ability of social platforms to fulfill certain
 people’s opinions and experiences, but marketers          needs better than others, the question turned to
 aren’t capitalizing on this yet,” Sajdeh says.            strategy: Which needs and platforms should a
 	 Whirlpool has started, with Leo Burnett’s               brand focus on for its category?
 help. When an appliance breaks down, shoppers             	 In its next phase of research, Arc analyzed four
 don’t have the luxury to browse while dirty laundry       category mindsets: categories where shopping
 piles up. They need a lot of information in a short       feels like Burden, Routine, Entertainment, or
 time, from different sources – manufacturer sites         driven by Passion. Knowing your category
 for product specifications, retailer sites for pricing.   mindset helps clarify how best to activate the
 It’s a big-ticket purchase with a short decision          social media platforms you’ve chosen to meet
 window, and the brand that can provide one-stop           their shopping needs. Categories are plotted
 information has an advantage. So Whirlpool and            along one axis of risk, and one of reward.
 Arc created “storefronts” on key retailer websites.       	 The agency mapped out 60-plus product/
 These dedicated Whirlpool and Maytag brand                service categories in each of these four sectors:
 pages on Homedepot.com and Lowes.com
 provided product specs and price information in           Burden: High risk, low reward.
 one place. This approach led to the largest sales         Categories are complicated to the point of
 month ever for Whirlpool.                                 mystifying. Brands are multifaceted and a great
 	 Once consumers have product and price                   deal of knowledge is necessary to make a choice.
 information in one place, the only other thing            	 “Consumers suspect differences but have to
 they need to help make and reinforce their                search and do research to find them. It can be a
 decision would be recommendations and                     long and painful purchase funnel,” Jones says.
 opinions from people that matter to them.                 	 Brands can mitigate that by making the
 Brands such as Whirlpool could use social media           shopping process less agonizing. As curators
 to build out their information pages, adding              of information, they can help shoppers better
 consumer reviews and comments. “The next step             understand the category and navigate the
 could be to aggregate the news and reviews of             concerns of making a big-purchase decision.


                                                                                               SocialShop 7
Category Mindset
     burden                                                         HIGH RISK

                                                                 Cars
                                                                                                                passion
                                                                              SUVs
                                                                                  PDAs       Video Game Systems
                                     Laptops
                                                                                               Mini-Vans        Vacation
                             HDTV                MP3 Players                                                   Destinations
                          Ovens                                  Video Cameras
                                   Digital Cameras                                               Blue Ray Players
                          Cell Service Providers     Luxury Cars Smart Phones                          Jewelry Stores
                                                         Cabinets                              Baby Food
        Life Insurance                                                            Toys                        High End Hotels
                        Printers               PCs      Sinks & Tubs                     Home Improvement Stores
           Car Insurance
                                                                                                 Organic Food
                                               Dishwashers     Hair Color
                Washing                                                       Pet Supplies                Designer
                                    Refrigerators                         Shampoo                          Clothes
                Machines                                                                  Supermarkets
                                                    Electronic Stores
                Credit Cards                                                                        Specialty Grocery Stores
                                                    DVD Players




                                                                                                                                   HIGH REWARD
   LOW REWARD




                                                                        Skin Care Products                    Snack Bars
                                        Cable Providers
                 Tires      Banks                                                                    Protein Water
                                                                             Hardware Stores
                         Cell Phones
                                   Small Appliances                         Energy Drinks Specialty Casual Clothing
         Homeowner’s Insurance                   Airlines                              Frangrance
                                                             Hair Styling Products
                                                    Makeup
                                                                  Mass Merchandisers        Gin
                      Vitamins      OTC Medications
                                                                Greeting Cards             Casual Sit-Down Restaurants
                                            Warehouse Clubs                       Frozen Entrees
             Feminine Protection                                  Cereal                Gum           Candy
                                   Office Supply Stores
                                                                                         Wine     Mints     Beer
                               Pharmacies
                                                  Toothpaste                           QSRs         Toaster Pastries




                                                                                                                                                 © 2012 Leo Burnett/Arc Worldwide
                   Deodorant
      Debit Cards                                                 Yogurt       Sports Drinks Vodka
                                           Laundry Detergent                                                                Ice Cream
                                                                             Shaving Cream                 Fruit Snacks
                         Pet Food
                                        Razors                                                                            Cookies
                                                   Furniture Polish
                                    Hair Conditioner                            Bar Soap        Chips
                                                                                                           Carbonated
                  Batteries          Gas                                            Air Fresheners
                                                                                                           Soft Drinks
                                         Toilet Paper        Bottled Water
                                        Light Bulbs

     routine                         Trash Bags
                                                                    LOW RISK                 entertainment
Passion: High risk, high reward.                                              	 Coca-Cola and 7-Eleven leveraged social
Think vacations, jewelry, fashion – categories                                media to attract and grow volume among
where mavens thrive. Burberry courted                                         Millennials. To promote Coke’s “Arctic Home”
passionista shoppers with a “Tweetwalk Show”                                  initiative to preserve polar bear habitats last
that showcased Spring/Summer 2012 looks on                                    winter, the partners staged a virtual snowball
Twitter before the brand’s runway show at NYC                                 fight. Using a free mobile app called “Snowball
Fashion Week.                                                                 Effect,” consumers could start virtual snowball
                                                                              fights with Facebook friends. A QR code on
Entertainment: Low risk, high reward.                                         7-Eleven fountain cups led to a download of the
Categories are often trivial, non-essential, but fun                          app, which layered mobile gaming and social
and a nice part of life. Think ice cream, greeting                            media to enable users to pinpoint Facebook
cards or beer – low-cost items that feel like a                               friends to target. Results were posted on Facebook
treat and are often impulse buys. “Entertainment                              as a call to action for others. The campaign
categories should use social media to give                                    reached thousands through media, blogs and
shoppers tailored recommendations, timely deals,                              Twitter. Players started 50,000 virtual snowball
hot news, and recommendations that are hard to                                fights over the nine-week campaign, reaching 6.5
pass up,” Sajdeh suggests.                                                    million Facebook friends with the Arctic Home

8 SocialShop
message. Coke sales at 7-Eleven jumped 20% for
packaged soda and 10% for fountain drinks.
                                                           Rewriting the Book on
Routine: Low risk, low reward.
Categories are typically mundane but essential.
                                                           Social Conscience
There is limited differentiation between brands
                                                           Social media can harness consumer
and often expansive variety within a category.
                                                           passion outside the marketplace, too.
Picturing your grocery list? Routine categories –
                                                           The city of Troy, MI, and Leo Burnett
including most packaged goods – should use
                                                           tapped social media to harness resi-
social media to help shoppers source deals and
                                                           dents’ passion for books. Budget cuts
do easy, on-the-spot comparisons. Groupon has
                                                           forced Troy to close its library; when
successfully partnered with both retailers and
                                                           the city proposed a small tax increase
manufacturers to drive trial and purchase with
                                                           to reopen it, Tea Party supporters
new customers in routine purchase categories.
                                                           shouted down the idea, turning the
	 It’s important to remember that “mindset”
                                                           conversation from books and reading
identifies the shopping experience itself – not
                                                           to taxes. Library advocates turned the
how consumers feel when they’re using the brand.
                                                           tables with a grassroots campaign:
	 Some products are fun to consume but not so
                                                           “Vote to Close the Troy Library on Aug.
fun to purchase, Sajdeh explains. “Look at board
                                                           2. Book Burning Party on Aug. 5.”
games: fun to use, but tedious to buy. How can
                                                           Lawn signs drove people to facebook.
we make the shopping process fun, too? How can
                                                           com/bookburningparty. There were
we bring some of the pleasure of usage into the
                                                           videos, tweets, Foursquare check-ins,
shopping occasion?
                                                           branded items on eBay – even Face-
	 “Insights on how people consume in the
                                                           book posts with plans to hire a band
category can influence how they shop the category,”
                                                           for the book burning event.
Sajdeh continues. “Ice cream and candy shops
                                                           	 Incensed residents responded:
bring some of the pleasure of consumption to the
                                                           “You people are sick.” “This is dis-
experience of shopping, but the supermarket aisle
                                                           gusting.” “Idiots.” They debated the
is devoid of that. It’s a challenge we wrestle with:
                                                           merits of libraries, and the conver-
How can we bring the fun of a brand into the
                                                           sation spread from Facebook to the
shopping experience?”
                                                           city council, to newspapers and TV,
	 Arc used the SocialShop Framework to home
                                                           becoming national and even interna-
in on the message and media while brainstorming
                                                           tional news. That’s when Troy revealed
for McDonald’s (see “You Want McDonald’s
                                                           its true message: “A vote against the
Fries with That?”). The agency also tapped the
                                                           library is like a vote to burn books.”
framework to help Canadian brand James Ready
                                                           And people started the sharing and
Beer leverage its popular under-the-cap messages.
                                                           reporting all over again. On Election
Pub crawlers collect the caps because they like
                                                           Day, votes in favor of passing the tax
the cheeky messages. Arc brainstormed the idea
                                                           were 342% higher than projected, and
of caps for captions, then fielded a Facebook
                                                           the library stayed open. 
contest inviting fans to use the caps from their
bottles of James Ready Beer to complete a fill-in-
the-blank caption with the words inside the cap.
	 “In such a low-involvement category, social          helps us manage information that’s important
media can play a high-engagement role,” Sajdeh         to the client. Consumer and shopper behavior
says. “It reinforces ‘delight after purchase,’         is one of the biggest factors for any brand. The
keeping consumers engaged. It shows a brand            SocialShop framework helps us map out everyone,
is paying attention to the path through purchase,      and helps us target some folks more than others,
not just the path to purchase.”                        if desired. The eight Shopper Types ring true.
	 “Creatives work better with frameworks,” says        	 “The framework is good, as long as your
Jim Carlton, Executive Vice President-Creative         interpretation skills are good,” Carlton says.
Director at Arc. “We want some guidance that

                                                                                        SocialShop 9
You Want McDonald’s
Fries with That?
The creative team at Leo Burnett Group agency
Arc Worldwide turned to the SocialShop
Framework after getting an unusual brief from
longtime client McDonald’s.
	 “The assignment was ‘Do something fun,’”
recalls Jim Carlton, Executive Vice President-
Creative Director at Arc. “They didn’t have a
lot of money or resources, but the brief was
wide open and we saw an amazing opportunity
to do something great. Something that people
will love – and participate in.”
	 The framework helped Arc shape a small-
budget initiative that delivered strong ROI.
“SocialShop helps us edit down the information
we have to stay on target,” Carlton says.
	 The team gravitated toward French Fries
because they are iconic and people universally
love them. Plus, Fries are mobile and shareable     amplify word of mouth using emotional drive,”
– a gustatory parallel to social media. Packaging   Carlton explains. The combination of Facebook
is a cost-efficient venue that reaches a big        and mobile platforms fit the bill.
audience, so Arc paired McDonald’s iconic           	 Each week, Arc tracked the number of
Fries box with a pop-culture catchphrase, then      people engaged online and via mobile, and
let social media spread the word organically.       what they were saying. Participation increased
	     Arc’s idea was to elevate the McDonald’s      over time with their comments staying very
Fries brand by taking ownership of the pop          positive throughout the program. Overall,
culture phrase “You want fries with that?” and      positive brand sentiment on Twitter was higher
using it to associate McDonald’s Fries with         than benchmark.
celebratory moments in life. Arc turned it into a   	 “It wasn’t just about winning money. The
statement – “You want McDonald’s Fries with         contest leveraged the emotional connection
that.” – and then into a call to action: Tell us    people have with McDonald’s Fries,” Carlton
what you want McDonald’s Fries with, and you        says. “People were associating McDonald’s
could win $25,000 to make it happen. It could       Fries with all their favorite things in life.”
be anything from world peace to a new pair of       	 The framework helped the team understand
shoes.                                              the combination of Shopper Needs at play, and
	 The contest was an interactive experience         validated their creative hunches. “We wanted
that turned each entry into a personalized          something fun and spontaneous. We were
declaration about the brand that people could       addressing indulgent and impulsive needs,
share on Facebook and Twitter. And by using         with some in-the-know elements,” Carlton
social media, each shared entry inspired            explains. “We wanted the sharing aspect of
other people to share their own connection          Facebook because we wanted more than
with McDonald’s Fries, resulting in more than       a one-way vehicle: We had a hunch people
270,000 entries.                                    would want to share this with their friends.”
	 Arc wanted word-of-mouth vehicles to cater        	 Overall, the promotion garnered more than
to customers’ in-the-know impulses when they        240 million media impressions and kicked off a
discovered the message on Fries boxes. “We          period of strong year-over-year unit growth for
chose social media platforms based on two-          McDonald’s Fries.
way communication and sharing. We chose             	 “But this is the beginning. We want to ‘2.0
platforms that fit the budget and could really      it’ and keep it growing,” Carlton says. 

10 SocialShop
Putting It to Work                                     or created in the social world should be able to
Brands, retailers, and agencies can benefit from       permeate the offline world, too.”
the SocialShop Framework to set social shopping        	 Best Buy does this “in a very rudimentary
strategy. Using the three blueprints together –        way,” with user rating numbers or stars on signs
Shopper Needs, media platforms, category               accompanying products, but it doesn’t provide
mindset – the process for setting strategy is          the depth of reviews and comments. “It’s a good
straightforward:                                       start, but needs to go deeper,” Sajdeh suggests.
                                                       	 More marketers also should use social media
  1.	Identify – shopper type, and the                  to solicit reviews, ratings and comments in the
  	 combination of her shopping needs. 		              first place, she adds. “Amazon is a natural place
  	 What are the social shopping needs                 to do this; so is a good blogging venue. Getting
  	 in the brand’s category?                           momentum around feedback is really important:
  2.	Analyze – social media platforms that 	           Provide a venue, drive traffic to the venue, and
  	 best address her needs. Which social 	             incentivize feedback and reviews. Create value
  	 media platforms best serve those needs?            for consumers with recommendations from other
  3.	Activate – based on the mindset she’s in 	        users and experts.
  	 when shopping the product/service 		               	 “This approach pays attention to the path
  	 category. How do you best activate                 through purchase: Turning shoppers into buyers
  	 each platform to meet those needs?                 and then into advocates that help sell the brand
                                                       to others after their own purchase,” Sajdeh
	 By evaluating social media platforms based           concludes.
on the Shopper Needs they serve, marketers can
set strategy based on the combination of needs
and the appropriate platforms that are relevant        Social Media has the Power to Grow
to their shoppers. This procedure will work as          Your Customer Base Exponentially
new social media platforms crop up and existing
platforms evolve.
	 SocialShop is not just a framework for
social media. It improves shopper marketing
offline, too: The research-based insights can
guide the way marketers use touch points and
tools through the path to purchase.
	 “The framework applies as much to
traditional marketing disciplines and shopper
marketing platforms as it does to social media,”
Sajdeh says. “Insights gathered from things like
geo-location and user recommendations can
extend to displays, sampling, packaging.
	 “Whatever information you gather about your
shopper and the shopping experience needs to
be reflected at all touch points, not just in social
media.”                                                                         © 2012 Leo Burnett/Arc Worldwide
	 That means integrating social media assets like
user reviews directly into the retail environment.
	 “User ratings and reviews are something              	 “Social media gets us to rethink shopper
shoppers have come to rely on heavily – but they’re    marketing and consider the third moment of
primarily available online. Why don’t we see           truth: Do people decide to share after they’ve
them more at the shelf?” Sajdeh says. “Retailers       purchased and used the product?”
can provide this information more conveniently         	 Asking the question could be the first step
to shoppers. Information that has been gathered        toward making it happen. 



                                                                                         SocialShop 11
To get people here.




                          We go through here.




Cross-channel activation experts that know how to connect shoppers to your
brands. In the places that matter to you and the places that matter to them.


                   Looking for an expert? Let’s talk.
         Nick Jones • nick.jones@arcww.com • 312.220.4533


                       Arc Worldwide is part of Leo Burnett Group.

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Social Shop

  • 1. SocialShop A framework for using social media to influence shopping decisions by RTS ER REPO CONSUM © 2012 Leo Burnett/Arc Worldwide
  • 2. Leo Burnett and Arc Worldwide have begun to map the Wild West. A s social media platforms multiply and consumers’ connections increasingly influence their purchase decisions, it’s harder to know which social media to use. It’s not just State of the Industry: State of Chaos Marketers spent $2.494 billion on social media marketing in 2011. That’s projected to jump 37% Facebook and Twitter out there, and it’s getting to $3.417 billion in 2012 and up to $6.227 billion more crowded every day. Marketers need a road by 2014, according to ZenithOptimedia. map so they can evaluate strategically and spend The explosion of social media has given wisely. marketers many new tools to converse with Arc and Burnett studied the specific ways shoppers – maybe too many. Decision-making on that social media engagement affects the process choosing and activating social media platforms is of shopping, then drew up a framework that scattershot, fed by marketers’ anxiety that they maps out the best social media platforms to might miss an important new platform or channel. engage people based on their shopping needs. Facebook, Groupon, Twitter – marketers jump in Already, the framework has helped sell more simply because they feel like they should be there. McDonald’s French Fries, boosted fountain sales Social media planning is reactive, not strategic; it and goodwill for Coca-Cola and 7-Eleven, and is random, not systematic. remodeled the way Whirlpool collaborates with “There are a lot of unknowns and Wild West home center retailers. behavior in the social media space, let alone Arc Worldwide’s SocialShop Framework the social shopping space,” says Masha Sajdeh, makes social media a strategic choice in shopper Senior Vice President of Insights and Strategy at marketing rather than a reactive execution. The Leo Burnett. framework overlays three blueprints, starting with Of course, 50 years ago, the ad industry faced category mindsets, which determine the shopper the same dilemma, figuring out the role of TV needs, which in turn define the appropriate alongside radio, newspapers, magazines, and social media vehicles. The framework, grounded billboards. “Look at the structure we have today in Arc’s proprietary research, enables marketers to analyze, plan, and target these media,” says to set a process to choose and activate the right Nick Jones, Executive Vice President and Retail social media for each brand. Practice Lead at Arc. “It’s time to bring that kind This approach can also improve traditional of rigor to social media.” shopper marketing as path-to-purchase strategies Consumer habits set the pace. Fully 96% of evolve. Marketers who apply Arc’s framework to Americans use social media, and 42% of adults traditional tactics can better integrate all elements 18-49 who are online have woven social media of shopper marketing and better connect with into their shopping, according to Arc’s research – shoppers at all touch points. roughly 48 million people. 2 SocialShop
  • 3. Ninety percent of crowdsource deal users have platform. Then to deepen the understanding of purchased a deal, while 72% of the heaviest social how and why social shoppers choose to engage shoppers have made a purchase after engaging on with brands through social media, Arc conducted Twitter, according to Arc’s research. One third of in-depth interviews among 24 social shoppers. social shoppers use Facebook on a mobile device The agency followed up in fourth-quarter 2011 while shopping; 31% have used review sites and with quantitative research among 800 social been inspired to try a new brand, Arc found. shoppers. Finally in the fourth phase of research, It’s clear that social media has the power Arc monitored how 125 social shoppers used to grow the customer base exponentially by Facebook for shopping during the 2011 holiday leveraging influencers to create additional buyers. shopping season. In-depth interviews were So Arc began developing its framework by conducted among 20 of these social shoppers to asking: Why and how do people use social media better understand how Facebook impacted their to shop, and what’s behind this behavior? shopping experiences. Arc conducted two waves of research to learn Arc’s study uncovered eight Social Shopper three things: Needs that form the basis for mapping all social • Reasons people use social media to shopper behavior. shop (Shopper Needs) These eight Social Shopper Needs fall into • Types of social media people use for four quadrants with social media serving a shopping (Social Media Platforms) different purpose in each quadrant: • Variations in behavior across product categories (Category Mindsets) Utilitarian needs (savings, efficiency, compari- son): Shoppers use social media to save time and In January 2011, Arc conducted quantitative effort shopping, compare products and retailers, research among more than 2,000 online get deals and discounts. This is usually the first Americans to explore the reach of social shopping. thing that marketers do with new media. It’s what This wave captured the number of people who they did when consumers first went online, and use social media to shop, which platforms they it’s what they did when social media emerged: use, and the types of behaviors they engage in by offer quick and easy deals and discounts. Social Shopper Needs Get immersed in the brand Feel confident eds ind ulg about my decision l ne na e connection Share opinions nt io and passions n at ne o si rm ed va es info s Compare pr lid x at products and e io retailers n comparison in-the-know Stay current y nc about brands re savings ie l ev fic ef an u ti ds ce lit a e Save time and ne effort shopping n ri a v si e ne ed p ul Get tailored s im recommendations Get deals and discounts © 2012 Leo Burnett/Arc Worldwide SocialShop 3
  • 4. Informational needs (comparison, validation, Sizing Up Personalities connection): Shoppers want to be confident about Clearly, not all shoppers have similar social their choices and are hungry for information. shopping needs. The study revealed six social They once used the online content for accessing shopper archetypes, each using social media in in-depth product information. Now, they use different ways. social media (among other tools) to compare On one end of the spectrum are two types of products and retailers, get immersed in the shoppers with more utilitarian needs, the “Dollar brand, and feel confident in their purchase Defaulter” and the “Efficient Sprinter.” The decisions. Social media is a quick way to validate Dollar Defaulter is a dollar-sign connoisseur, with choices. Right now, consumers are using social just one social shopping goal: find the cheapest media to share information more than retailers alternative. Dollar Defaulters choose only the and manufacturers are; marketers are not yet lowest prices and do not feel loyal to specific using social media to its full potential. brands. To connect with Dollar Defaulters, brands should broadcast special deals on retailer Indulgent needs (connection, expression, websites such as drugstore.com and provide the in-the-know): Shoppers use social media to ability to share those deals with friends. get immersed in the brand, share opinions and Efficient Sprinters are a few dollars shorter, passions, and stay current on brand news. “There but several minutes richer. Efficient Sprinters are more ‘mavens’ in the world than ever before, want to save time, and use social media to and they can indulge in their passions via social select items that are considered most popular media more easily than through traditional to simplify their shopping process. To connect communication outlets,” Sajdeh says. with Efficient Sprinters, brands should simplify the buying process. In addition, brands should Impulsive needs (in-the-know, relevance, provide a curated list of top-selling products on savings): Shoppers use social media (especially their social channels and retailer websites. via mobile) to stay current about brands, get Some popular mobile shopping applications tailored recommendations, and find deals and cater to these utilitarian shoppers. Meijer’s discounts. Accessing social media via mobile Shopping List app includes a “Find It” function devices delivers instant gratification and real- that locates items in the store. Home-delivery time shopping spontaneity. It’s part of the service Peapod offers a “Guess My List” function growing trend towards shopping-on-the-go: that saves time by populating a list based on Mobile technology enables shoppers to buy on past purchases. Walmart’s “Rollbacks” on the fly, and social media reinforces purchase Facebook lets shoppers share information on decisions. It also broadens options, with tools like price cuts at their local store. Light Social Shoppers Heavy Amazon.com’s “If you like this, you might In the middle ofSocial Shoppers Medium the spectrum are like that” feature. dollar defaulter shoppers with more informational needs, the quality devotee savvy p will remain “Quality Devotee” and theratings to help validate choice. The The eight Social Shopper Needs To find the cheaper alternatives. For reviews and “Strategic Saver.” For broadc stable, even as new media venues emerge. (See Quality Devotee is a high-maintenance, high “As New Media Emerge, Will the Framework standards shopper who uses social media to Hold?” on page 5.) shape purchasing decisions, validate choice and feel empowered when making a purchase. No Light Social Shoppers Medium Social Shoppers the time or researchShoppers Quality Light Social Shoppers matter Heavy Social involved, Medium Social Shoppers Heav dollar defaulter efficientdefaulter dollar sprinter quality devotee strategic devotee quality saver savvy passionista oppor savvy To find the cheaper alternatives. ForTo buy most popular toalternatives. choice. reviews and ratings or help validate To find the cheaper convenient. For comparison shop andtrends, help validate choice. To broadcasting latest find savings on brands she wants. For reviews and ratings to brands and retailers. To score fu For broa RTS MER REPO CONSU efficient sprinter efficient sprinter strategic saver strategic saver opportunistic adventurer oppo To buy most popular or convenient. To comparisonmost popular savings on brands she wants. To buy shop and find or convenient. To comparison shop and find savings on brands she wants. To score fun, unexpected content or deals. To score 4 SocialShop © 2012 Leo Burnett/Arc Worldwide
  • 5. Devotees will find the best product available. To connect with Quality Devotees, brands should aim to help shoppers build knowledge through As New Media in-depth reviews and expert opinions via blogs, forums, review sites and YouTube. Emerge, Will the The Strategic Saver is a black-belted negotiator, Framework Hold? using social media to comparison shop and spend time deal digging only for her favorite brands. To As existing social media evolve connect with Strategic Savers, brands should aim and new media are introduced, to validate choices by offering custom shopping the eight enduring Social Shopper tips and ways to save money by tapping into blogs, Needs won’t change. forums and review sites. “This model is rooted in human Among the heaviest social shoppers are behavior, so it holds true for old- those with more indulgent needs, the “Savvy world ‘social media’ that we had Passionista” and the “Opportunistic Adventurer.” before digital technology – things The Savvy Passionista is a social trendsetter, using like word-of-mouth, sampling, social media channels to broadcast the latest and coupons,” Jones says. “We trends and stay connected with favorite brands. have plotted those tactics against Savvy Passionistas are indulgent and use social this model and it works. That channels to express feelings and stay relevant reassures us that the model is and “in-the-know.” To reach Savvy Passionistas, solid, and not just a response to brands should help shoppers discover, express and today’s technology.” connect on emerging and established platforms – Arc also can easily map new everything from Facebook to Pinterest to Twitter. social media platforms with the The Opportunistic Adventurer is a daily model. As new platforms emerge, dealaholic, on a mission to score fun and “We’ll be able to tell quickly what unexpected deals. With impulsive social shopping needs they’ll fulfill and how they’ll tendencies, this shopper demands timely and be used,” Jones says. “The model relevant deals. To connect with Opportunistic will hold, even as the platforms Adventurers, brands should invest in tailored evolve.” deals that are “too good to pass up.” In addition, Shopper Needs won’t change brands should promote through geo-location dramatically, Sajdeh adds. And applications like Foursquare, build visibility on they don’t just apply to social daily deal sites such as Groupon and provide media. “Look at all your shopper Medium Social Shoppers on Amazon. Social Shoppers touch points,” she advises. tailored recommendations Heavy This devotee diverse population savvyshopper of “This thinking applies to all your quality passionista For reviews and ratings poses choice. For broadcasting for marketing channels, however personalities to help validatea crucial question latest trends, brands and retailers. marketers: How can I best use social media to they evolve.”  address different shoppers, with their various combinations of needs? Which social media platforms should I use to meet all these diverse needs of shoppers? Light Social Shoppers Medium Social Shoppers Heavy Social Shoppers strategic defaulter dollar saver opportunistic adventurer quality devotee savvy passionista To comparison shop and find savings on brands she wants. To find the cheaper alternatives. To score fun, unexpected content or deals. choice. For reviews and ratings to help validate For broadcasting latest trends, brands and retailers. efficient sprinter strategic saver opportunistic adventurer To buy most popular or convenient. To comparison shop and find savings on brands she wants. To score fun, unexpected content or deals. © 2012 Leo Burnett/Arc Worldwide SocialShop 5
  • 6. Mapping Out Social By adding this analysis to its grid of Shopper Media Platforms Needs, Arc created an imprint that defines the Of course, each social media platform serves needs to which each social media platform best certain Shopper Needs better than others. Arc delivers. While social shopper needs will remain analyzed the most commonly used social media consistent, the imprint of platforms is expected platforms against its eight Social Shopper Needs to change as new platforms emerge and address – starting with Facebook and Twitter, but also shopper needs. covering Groupon, FourSquare, YouTube, Yelp, “The map helps marketers zero in on the blogs, forums and others. Arc evaluated each platforms they need to use, based on the shopper social media platform on its ability to meet the needs for their brand,” Jones says. “It’s a way to eight different shopper needs. Each platform was get up to speed quickly on platforms that are then indexed or compared to other platforms relevant to brand strategy, without wasting time to determine which needs it over or under- on social media platforms that are popular but delivers on. Facebook, for example, helps people not necessarily right for the job.” stay connected to friends. It best delivers views Marketers can use the imprint to determine and byte-sized information via computer, in which combination of social media platforms is thoughtful ways to your inner-circle of friends. best for their brand, based on the Shopper Needs Twitter, on the other hand, helps people stay they serve. “Look at what you’re trying to do, connected to trends. It best delivers bits of news, and which platforms do it best – don’t just stamp via mobile, in spontaneous ways and reaches an Facebook and Twitter everywhere,” Sajdeh outer-circle of friends. advises. Social Platform Strengths/Roles HIGH RISK burden passion HIGH RISK burden blogs blogs passion s ind eed indulg l needs ulge nal n connection blogs forums na e connection blogs nt nt tiotio blogs forums on blogs nene ma a siion for rm ed d vava ess ininfo e ss pres lidlid r exp at at HIGH REWARD LOW REWARD io io x HIGH REWARD LOW REWARD e nn forums comparison in-the-know forums comparison y in-the-know ncy re re savings ienc le le savings fic ie vava effic u tu ti ss ncnc ef ed d ilitlit ee e nene a ra r n v si ia ia ee n ne ulsiv n ee d imp ul $ e ds forums im p $ forums s routine entertainment $ $ routine LOW RISK LOW RISK entertainment © 2012 Leo Burnett/Arc Worldwide 6 SocialShop
  • 7. The goal, of course, is to set an effective social your friends, the people you trust,” Sajdeh says. marketing strategy based on the combination of “In that crunch time of purchase, people call two needs and appropriate platforms relevant to your or three friends they trust and ask their advice on shopper. what to buy. What if that information could be “Who you’re targeting and what role your aggregated in one place onto a short list of what brand plays in their day and in their lifestyle your friends think? Connecting Whirlpool’s anchors which social media you should information page with Facebook and the user’s choose, and how you activate,” Sajdeh explains. own social network becomes important.” “Depending on the Shopper Needs you want “One obvious question about Arc’s framework to focus on, you should pick the platforms best is, ‘Does the model mean I shouldn’t be putting suited to meeting those needs. For example, coupons on Facebook, because it doesn’t fill a high-impulse shopping – where timely offers utilitarian need?’” Jones posits. “We’re not saying and spontaneity affect purchase – is better served the framework dictates black-and-white solutions. by Groupon and location-based offers than by What it shows is that if your brand fits shopper Facebook.” needs that aren’t filled by Facebook, you should For informational Shopper Needs, choose at least be looking at other venues that fill those channels that can deliver on the need for needs, even if you still plan to use Facebook. Are validation and can supply shoppers with in-depth there other venues where coupons have more content – a good blogging platform, for example, validity? Don’t ignore those.” or YouTube videos that show how the product works. In fact, consumers are creating their own product comparisons, posting YouTube videos Synchronizing with the comparing vacuum cleaners or pruning saws – a Shopping Mindset sort of poor man’s Consumer Reports, by the hand Once Arc clarified different shopper needs and of consumers themselves. “Shoppers rely on other the ability of social platforms to fulfill certain people’s opinions and experiences, but marketers needs better than others, the question turned to aren’t capitalizing on this yet,” Sajdeh says. strategy: Which needs and platforms should a Whirlpool has started, with Leo Burnett’s brand focus on for its category? help. When an appliance breaks down, shoppers In its next phase of research, Arc analyzed four don’t have the luxury to browse while dirty laundry category mindsets: categories where shopping piles up. They need a lot of information in a short feels like Burden, Routine, Entertainment, or time, from different sources – manufacturer sites driven by Passion. Knowing your category for product specifications, retailer sites for pricing. mindset helps clarify how best to activate the It’s a big-ticket purchase with a short decision social media platforms you’ve chosen to meet window, and the brand that can provide one-stop their shopping needs. Categories are plotted information has an advantage. So Whirlpool and along one axis of risk, and one of reward. Arc created “storefronts” on key retailer websites. The agency mapped out 60-plus product/ These dedicated Whirlpool and Maytag brand service categories in each of these four sectors: pages on Homedepot.com and Lowes.com provided product specs and price information in Burden: High risk, low reward. one place. This approach led to the largest sales Categories are complicated to the point of month ever for Whirlpool. mystifying. Brands are multifaceted and a great Once consumers have product and price deal of knowledge is necessary to make a choice. information in one place, the only other thing “Consumers suspect differences but have to they need to help make and reinforce their search and do research to find them. It can be a decision would be recommendations and long and painful purchase funnel,” Jones says. opinions from people that matter to them. Brands can mitigate that by making the Brands such as Whirlpool could use social media shopping process less agonizing. As curators to build out their information pages, adding of information, they can help shoppers better consumer reviews and comments. “The next step understand the category and navigate the could be to aggregate the news and reviews of concerns of making a big-purchase decision. SocialShop 7
  • 8. Category Mindset burden HIGH RISK Cars passion SUVs PDAs Video Game Systems Laptops Mini-Vans Vacation HDTV MP3 Players Destinations Ovens Video Cameras Digital Cameras Blue Ray Players Cell Service Providers Luxury Cars Smart Phones Jewelry Stores Cabinets Baby Food Life Insurance Toys High End Hotels Printers PCs Sinks & Tubs Home Improvement Stores Car Insurance Organic Food Dishwashers Hair Color Washing Pet Supplies Designer Refrigerators Shampoo Clothes Machines Supermarkets Electronic Stores Credit Cards Specialty Grocery Stores DVD Players HIGH REWARD LOW REWARD Skin Care Products Snack Bars Cable Providers Tires Banks Protein Water Hardware Stores Cell Phones Small Appliances Energy Drinks Specialty Casual Clothing Homeowner’s Insurance Airlines Frangrance Hair Styling Products Makeup Mass Merchandisers Gin Vitamins OTC Medications Greeting Cards Casual Sit-Down Restaurants Warehouse Clubs Frozen Entrees Feminine Protection Cereal Gum Candy Office Supply Stores Wine Mints Beer Pharmacies Toothpaste QSRs Toaster Pastries © 2012 Leo Burnett/Arc Worldwide Deodorant Debit Cards Yogurt Sports Drinks Vodka Laundry Detergent Ice Cream Shaving Cream Fruit Snacks Pet Food Razors Cookies Furniture Polish Hair Conditioner Bar Soap Chips Carbonated Batteries Gas Air Fresheners Soft Drinks Toilet Paper Bottled Water Light Bulbs routine Trash Bags LOW RISK entertainment Passion: High risk, high reward. Coca-Cola and 7-Eleven leveraged social Think vacations, jewelry, fashion – categories media to attract and grow volume among where mavens thrive. Burberry courted Millennials. To promote Coke’s “Arctic Home” passionista shoppers with a “Tweetwalk Show” initiative to preserve polar bear habitats last that showcased Spring/Summer 2012 looks on winter, the partners staged a virtual snowball Twitter before the brand’s runway show at NYC fight. Using a free mobile app called “Snowball Fashion Week. Effect,” consumers could start virtual snowball fights with Facebook friends. A QR code on Entertainment: Low risk, high reward. 7-Eleven fountain cups led to a download of the Categories are often trivial, non-essential, but fun app, which layered mobile gaming and social and a nice part of life. Think ice cream, greeting media to enable users to pinpoint Facebook cards or beer – low-cost items that feel like a friends to target. Results were posted on Facebook treat and are often impulse buys. “Entertainment as a call to action for others. The campaign categories should use social media to give reached thousands through media, blogs and shoppers tailored recommendations, timely deals, Twitter. Players started 50,000 virtual snowball hot news, and recommendations that are hard to fights over the nine-week campaign, reaching 6.5 pass up,” Sajdeh suggests. million Facebook friends with the Arctic Home 8 SocialShop
  • 9. message. Coke sales at 7-Eleven jumped 20% for packaged soda and 10% for fountain drinks. Rewriting the Book on Routine: Low risk, low reward. Categories are typically mundane but essential. Social Conscience There is limited differentiation between brands Social media can harness consumer and often expansive variety within a category. passion outside the marketplace, too. Picturing your grocery list? Routine categories – The city of Troy, MI, and Leo Burnett including most packaged goods – should use tapped social media to harness resi- social media to help shoppers source deals and dents’ passion for books. Budget cuts do easy, on-the-spot comparisons. Groupon has forced Troy to close its library; when successfully partnered with both retailers and the city proposed a small tax increase manufacturers to drive trial and purchase with to reopen it, Tea Party supporters new customers in routine purchase categories. shouted down the idea, turning the It’s important to remember that “mindset” conversation from books and reading identifies the shopping experience itself – not to taxes. Library advocates turned the how consumers feel when they’re using the brand. tables with a grassroots campaign: Some products are fun to consume but not so “Vote to Close the Troy Library on Aug. fun to purchase, Sajdeh explains. “Look at board 2. Book Burning Party on Aug. 5.” games: fun to use, but tedious to buy. How can Lawn signs drove people to facebook. we make the shopping process fun, too? How can com/bookburningparty. There were we bring some of the pleasure of usage into the videos, tweets, Foursquare check-ins, shopping occasion? branded items on eBay – even Face- “Insights on how people consume in the book posts with plans to hire a band category can influence how they shop the category,” for the book burning event. Sajdeh continues. “Ice cream and candy shops Incensed residents responded: bring some of the pleasure of consumption to the “You people are sick.” “This is dis- experience of shopping, but the supermarket aisle gusting.” “Idiots.” They debated the is devoid of that. It’s a challenge we wrestle with: merits of libraries, and the conver- How can we bring the fun of a brand into the sation spread from Facebook to the shopping experience?” city council, to newspapers and TV, Arc used the SocialShop Framework to home becoming national and even interna- in on the message and media while brainstorming tional news. That’s when Troy revealed for McDonald’s (see “You Want McDonald’s its true message: “A vote against the Fries with That?”). The agency also tapped the library is like a vote to burn books.” framework to help Canadian brand James Ready And people started the sharing and Beer leverage its popular under-the-cap messages. reporting all over again. On Election Pub crawlers collect the caps because they like Day, votes in favor of passing the tax the cheeky messages. Arc brainstormed the idea were 342% higher than projected, and of caps for captions, then fielded a Facebook the library stayed open.  contest inviting fans to use the caps from their bottles of James Ready Beer to complete a fill-in- the-blank caption with the words inside the cap. “In such a low-involvement category, social helps us manage information that’s important media can play a high-engagement role,” Sajdeh to the client. Consumer and shopper behavior says. “It reinforces ‘delight after purchase,’ is one of the biggest factors for any brand. The keeping consumers engaged. It shows a brand SocialShop framework helps us map out everyone, is paying attention to the path through purchase, and helps us target some folks more than others, not just the path to purchase.” if desired. The eight Shopper Types ring true. “Creatives work better with frameworks,” says “The framework is good, as long as your Jim Carlton, Executive Vice President-Creative interpretation skills are good,” Carlton says. Director at Arc. “We want some guidance that SocialShop 9
  • 10. You Want McDonald’s Fries with That? The creative team at Leo Burnett Group agency Arc Worldwide turned to the SocialShop Framework after getting an unusual brief from longtime client McDonald’s. “The assignment was ‘Do something fun,’” recalls Jim Carlton, Executive Vice President- Creative Director at Arc. “They didn’t have a lot of money or resources, but the brief was wide open and we saw an amazing opportunity to do something great. Something that people will love – and participate in.” The framework helped Arc shape a small- budget initiative that delivered strong ROI. “SocialShop helps us edit down the information we have to stay on target,” Carlton says. The team gravitated toward French Fries because they are iconic and people universally love them. Plus, Fries are mobile and shareable amplify word of mouth using emotional drive,” – a gustatory parallel to social media. Packaging Carlton explains. The combination of Facebook is a cost-efficient venue that reaches a big and mobile platforms fit the bill. audience, so Arc paired McDonald’s iconic Each week, Arc tracked the number of Fries box with a pop-culture catchphrase, then people engaged online and via mobile, and let social media spread the word organically. what they were saying. Participation increased Arc’s idea was to elevate the McDonald’s over time with their comments staying very Fries brand by taking ownership of the pop positive throughout the program. Overall, culture phrase “You want fries with that?” and positive brand sentiment on Twitter was higher using it to associate McDonald’s Fries with than benchmark. celebratory moments in life. Arc turned it into a “It wasn’t just about winning money. The statement – “You want McDonald’s Fries with contest leveraged the emotional connection that.” – and then into a call to action: Tell us people have with McDonald’s Fries,” Carlton what you want McDonald’s Fries with, and you says. “People were associating McDonald’s could win $25,000 to make it happen. It could Fries with all their favorite things in life.” be anything from world peace to a new pair of The framework helped the team understand shoes. the combination of Shopper Needs at play, and The contest was an interactive experience validated their creative hunches. “We wanted that turned each entry into a personalized something fun and spontaneous. We were declaration about the brand that people could addressing indulgent and impulsive needs, share on Facebook and Twitter. And by using with some in-the-know elements,” Carlton social media, each shared entry inspired explains. “We wanted the sharing aspect of other people to share their own connection Facebook because we wanted more than with McDonald’s Fries, resulting in more than a one-way vehicle: We had a hunch people 270,000 entries. would want to share this with their friends.” Arc wanted word-of-mouth vehicles to cater Overall, the promotion garnered more than to customers’ in-the-know impulses when they 240 million media impressions and kicked off a discovered the message on Fries boxes. “We period of strong year-over-year unit growth for chose social media platforms based on two- McDonald’s Fries. way communication and sharing. We chose “But this is the beginning. We want to ‘2.0 platforms that fit the budget and could really it’ and keep it growing,” Carlton says.  10 SocialShop
  • 11. Putting It to Work or created in the social world should be able to Brands, retailers, and agencies can benefit from permeate the offline world, too.” the SocialShop Framework to set social shopping Best Buy does this “in a very rudimentary strategy. Using the three blueprints together – way,” with user rating numbers or stars on signs Shopper Needs, media platforms, category accompanying products, but it doesn’t provide mindset – the process for setting strategy is the depth of reviews and comments. “It’s a good straightforward: start, but needs to go deeper,” Sajdeh suggests. More marketers also should use social media 1. Identify – shopper type, and the to solicit reviews, ratings and comments in the combination of her shopping needs. first place, she adds. “Amazon is a natural place What are the social shopping needs to do this; so is a good blogging venue. Getting in the brand’s category? momentum around feedback is really important: 2. Analyze – social media platforms that Provide a venue, drive traffic to the venue, and best address her needs. Which social incentivize feedback and reviews. Create value media platforms best serve those needs? for consumers with recommendations from other 3. Activate – based on the mindset she’s in users and experts. when shopping the product/service “This approach pays attention to the path category. How do you best activate through purchase: Turning shoppers into buyers each platform to meet those needs? and then into advocates that help sell the brand to others after their own purchase,” Sajdeh By evaluating social media platforms based concludes. on the Shopper Needs they serve, marketers can set strategy based on the combination of needs and the appropriate platforms that are relevant Social Media has the Power to Grow to their shoppers. This procedure will work as Your Customer Base Exponentially new social media platforms crop up and existing platforms evolve. SocialShop is not just a framework for social media. It improves shopper marketing offline, too: The research-based insights can guide the way marketers use touch points and tools through the path to purchase. “The framework applies as much to traditional marketing disciplines and shopper marketing platforms as it does to social media,” Sajdeh says. “Insights gathered from things like geo-location and user recommendations can extend to displays, sampling, packaging. “Whatever information you gather about your shopper and the shopping experience needs to be reflected at all touch points, not just in social media.” © 2012 Leo Burnett/Arc Worldwide That means integrating social media assets like user reviews directly into the retail environment. “User ratings and reviews are something “Social media gets us to rethink shopper shoppers have come to rely on heavily – but they’re marketing and consider the third moment of primarily available online. Why don’t we see truth: Do people decide to share after they’ve them more at the shelf?” Sajdeh says. “Retailers purchased and used the product?” can provide this information more conveniently Asking the question could be the first step to shoppers. Information that has been gathered toward making it happen.  SocialShop 11
  • 12. To get people here. We go through here. Cross-channel activation experts that know how to connect shoppers to your brands. In the places that matter to you and the places that matter to them. Looking for an expert? Let’s talk. Nick Jones • nick.jones@arcww.com • 312.220.4533 Arc Worldwide is part of Leo Burnett Group.