Posts Tagged ‘Mike Lewis’

The Shopper EconomyThere is a new economic model – one that rewards the consumer for behaving a certain way that has far-reaching repercussions for your brand online. Companies that understand this new method of currency, value, and reward can reap the benefits of higher recall and increased consumer loyalty. Liz Crawford provides an analysis of this new model in The Shopper Economy: The New Way to Achieve Marketplace Success by Turning Behavior into Currency. With 20 years of experience as a brand manager and consultant focused on strategic innovation, Liz is uniquely qualified to identify this new shopper behavior-driven economic phenomenon. In anticipation of our Shopper Economy webinar next week, we sat down with Liz for some Q and A.

Your book, The Shopper Economy, describes an emerging economy where behavior is currency. What led you to investigate this topic?
I thought it was fascinating that digital technology, especially mobile technology, was enabling new kinds of transactions between buyers and sellers.  In addition to shoppers purchasing brands, brands were purchasing shopper behavior.  I believe this is a relatively new phenomenon.

In the book, I try to make clear that I am not referring to a conventional buy-more-get-more promotion.  And I don’t mean a deferred discount, like a cents-off-next-purchase.

Instead, I am pointing out a new dynamic where a shopper can actually earn value in exchange for one of four behaviors: paying attention, participating, advocating, or committing.  None of these behaviors directly involve purchase. The shopper can earn value by simply behaving.

This earned value can come in various forms – Shopkick Kicks, Facebook Credits, miles, points, etc. You will notice that this value is digital scrip (not straightforward fiat currency in most cases). The digital scrip is currency in that it is – 1. recorded,  2. stored and banked, and 3. redeemable at the discretion of the shopper, across channels. Shoppers can aggregate all manner of scrip in a clearinghouse website like www.points.com. This website allows shoppers to exchange hundreds of forms of scrip for fiat currency (dollars and cents), which may be deposited into a Paypal account.

Which industries are leading the way in understanding this new activity-based marketplace?
At this point, I believe that retailers are leading the way, along with financial services.

Retailers who are rewarding behavior are reaping the benefits.  There are various platforms which effectively use shopper participation to drive traffic and conversion.  These platforms include: http://www.scvngr.com/ , www.checkpoints.com/ , http://shopkick.com/ among others. These are platforms, which shoppers download onto their smartphones as apps.

American Express, of course, is a leader in the area. Their points system is both the granddaddy of digital scrip, as well as the continued frontrunner. One of the big reasons for their massive success is their extensive network of partners.  Shoppers who acquire points can redeem them in virtually any way they please, including simply using points to supplement/replace payments at a digital point of sale (www.americanexpress.com). I believe that with Google Wallet or ISIS type technologies, we will see frictionless, fungible exchanges of scrip with fiat currency, for everything. This really opens the door to the Shopper Economy.

How can small businesses take advantage of the concepts in The Shopper Economy?
Many smaller or independent retailers can begin to experiment with incenting behaviors by signing up with one of the platforms already mentioned (Checkpoints, Shopkick, SCVNGR, etc).  These mechanisms are used by hundreds of local merchants to drive traffic. In some cases the rewards are simply deferred discounts, like Foursquare rewards (“free coffee next visit” for example).  In other cases, the earned value is scrip which is redeemable at the discretion of the shopper.

For small business, advocacy is an important behavior to reward. Groupon and Living Social both reward shopper-to-shopper advocacy, and of course are used extensively by local merchants, like salons and restaurants.

In this new economy where shopper behaviors create units of value, how can marketers quantify a specific value to a shopper behavior?
This is a detailed subject.  The book devotes a chapter on valuation for each of the four shopper behaviors.  Some behaviors like Attention and Participation should be evaluated in comparison to more traditional communication and promotional expenditures, respectively.  So, if a shopper is watching an ad in exchange for scrip, does that shopper score higher on recall and persuasion scores?  It is the effectiveness of these efforts that need to be assessed. It is a trade-off of investment dollars.

The same evaluation process can be used to assess Participation programs.  For example, how effective is a SCVNGR game at driving store traffic, in comparison to other efforts?  This will help a business owner optimize marketing investments.  Participation also usually has a conversion component. That will help with understanding the financial return of the program.

The book also cites specific formulae to quantify some behaviors such as Advocacy.

What does the future look like in the shopper economy?
Shoppers will become increasingly sophisticated in understanding the worth of their labor.  This means that they will evaluate transactions with brands and retailers with a sharper eye to their own advantage.

For more insights from Liz Crawford, be sure to attend next week’s free Awareness webinar: The Shopper Economy. You can also download chapter 1 of The Shopper Economy: The New Way to Achieve Marketplace Success by Turning Behavior into Currency.

It’s time marketers stop collecting data for data’s sake and start it for culling insights. That’s where social analytics comes in. Social analytics is the evolving business discipline that studies social media metrics to help marketers use the findings to drive business intelligence. If you’re new to this, have no fear. Look to the 15 influencers listed below for guidance on the topic. They can help you get started or finesse your approach. Here are the Top Social and Web Analytics Experts to follow (in alphabetical order):

 

Gary Angel, president of Semphonic.  Recipient of the Digital Analytics Association’s Award for Excellence as the Most Influential Industry Contributor.

Don’t miss: 3 Paths to Digital Optimization: Zen and the Art of Enterprise Analytics

Key Takeaway: To get the greatest value from analytics, you need an integrated approach.

 

Connie Bensen, Senior digital strategist at Dell

Don’t miss: Best Practices for Social Media Monitoring ROI

Key Takeaway: Great tips on how to avoid spam and noise: add exclusion criteria to your searches.

 

Keith Burtis, co-founder of MeasureMob

Don’t miss: Getting Started in Analytics From Tape Measure to #Measure

Key Takeaway: Three resources to get you started with analytics.

 

Alistair Croll, principal analyst for Bitcurrent, contributing author to Web Operations, Complete Web Monitoring and Managing Bandwidth.

Don’t miss: Writings: December 2011/January 2012

Key Takeaway: A sampling of Alistair’s thinking, including 2012 trends and how companies should think about big data.

 

Susan Etlinger, industry analyst at Altimeter Group

Don’t miss: Research Report: A Framework for Social Analytics

Key Takeaway: Measure your company’s performance against the Social Media Measurement Compass.

 

Nathan Gilliatt, principal at Social Target, co-founder at AnalyticsCamp, founder at SocialMediaAnalysis.com

Don’t miss: Applying Intelligence and Analytics to Online Statements

Key Takeaway: Insightful matrix of Intelligence/Analytics plotted against Fact/ Opinion

 

Taulbee Jackson, CEO and president of Raidious

Don’t miss: Social Media Analytics – AMA Michiana

Key Takeaway: At the end of the day, you are trying to determine ‘how good is the content?’

 

Avinash Kaushik, digital marketing evangelist at Google and author of Web Analytics 2.0 and Web Analytics: An Hour A Day

Don’t miss: Beginner’s Guide to Web Data Analysis: Ten Steps to Love & Success

Key Takeaway: An excellent getting started guide to web analytics.

 

John Lovett, senior partner at Web Analytics Demystified Inc, author of Social Media Metrics Secrets

Don’t miss: You’re Using the Wrong Social Media Metrics

Key Takeaway: Understand corporate goals, align business objectives, tie metrics to measures of success and then define operational tactics.

 

Jonas Klit Nielsen, CEO and founder of Mindjumpers

Don’t miss: Executive Series: Listening on Social Media is about Insight Management and Analyzing Data

Key Takeaway: Listen first to relevant conversations, then break down the data to relevant insights.

 

Katie D. Paine, CEO & founder of KD Paine & Partners; author of Measure What Matters

Don’t miss: KDPaine’s How-To-Get-Good-Data Checklist

Key Takeaways: Both humans and computers make mistakes, so check your data regularly.

 

Eric Peterson, CEO and founder of Web Analytics Demystified Inc., author of Web Analytics Demystified, Web Site Measurement Hacks and The Big Book of Key Performance Indicators

Don’t miss: Finally! Standards Come to Web Analytics

Key Takeaway: Google Analytics has become the de facto standard for web analytics.

 

Sean Power, data scientist at Cheezburger; contributing author to Web Operations, and Complete Web Monitoring

Don’t miss: Complete Web Monitoring, (O’Reilly, 2009)

Key Takeaway: Learn everything from why, what and how to implement measurement in your organization.

 

Jim Sterne, founder of eMetrics Marketing Optimization Summit and the Digital Analytics Association and author of Social Media Metrics: How to Measure and Optimize Your Marketing Investment

Don’t miss: eMetrics Marketing Optimization Summits

Takeaway: Learn from Jim in person at a summit near you.

 

Marshall Sponder, senior analyst and founder of WebmetricsGuru.com and author of Social Media Analytics: Effective Tools for Building, Interpreting, and Using Metrics

Don’t miss: Lack of Processes (or the Wrong Processes) biggest problem in Social Media Reporting and ROI

Key Takeaway: You need a standard process for measurement.

 

 

To learn more about what social analytics and how you can approach it, consult with our new position paper Social Analytics for Marketing and Sales Effectiveness.

Let’s hear it from you, marketers: Did we list all your top analytics gurus? Did we miss anyone who deserves to be included? Sound off on Twitter, Facebook, LinkedIn and on Pinterest.