Volume 9 (2017): Issue 2 (November 2017)
The Connected Consumer

Consumers have become always on and constantly connected. Search costs have plummeted, individuals’ abilities to digitally express themselves and their opinions increased, and the opportunities for superior business and market intelligence for companies have skyrocketed. This has given rise to more, richer, and new sources of consumer data that marketers can leverage, and has fueled the data-driven insights revolution in marketing. But there is more to come very soon. In marketing, we are quickly moving from the age of the connected consumer to the age of the augmented consumer. New technologies like wearable devices, smart sensors, consumer IoT devices, smart homes, and, critically, artificial intelligence ecosystems will not only connect, but will substantially and meaningfully augment the consumer in terms of their thoughts and behaviors. The biggest challenge for marketers will lie in how they approach marketing to this new type of consumer, particularly personal artificial intelligence ecosystems. This means marketing to algorithms, instead of people, and that is very different to how most marketing work is currently done.

Many social media handbooks recommend targeting customers’ close connections and encouraging consumers to spread the word about their products and services among friends. But according to the findings of this research this strategy might not be the most effective way to build positive momentum. In fact, it might just do the opposite. The feelings of closeness that WOM senders experience toward their recipients determine what they share. Being close instills the desire to protect a recipient from having a bad experience. Therefore, communicating negative information, which highlights potential negative outcomes or attributes of a product, becomes more likely to be shared among close friends. In relations with loose acquaintances the motive to impress is more prevalent. Therefore, communicating positive information, which is more likely to shed a positive light on the WOM sender, is more likely to be shared in such instances. To encourage positive WOM for seeding campaigns, marketers should select the right platform and monitor closeness. Further, by framing the context of the campaign in the right way, they can also insure more positive WOM for a brand.

In a classic seeded WOM marketing campaign, a company sends product samples to a selected group of influencers, and encourages them share the product information and their own opinions with other consumers. Positive effects include more WOM for the focal product in the target segment, but also in additional segments. But there are additional spillover effects on the brand and the product category level and they are negative. More conversations about the focal product reduced the “off-topic” conversations about other brands in the same category as well as other products of the same brand. These negative brand and category spillover effects are stronger when the focal product is of a more functional nature. Marketers tend to consider only positive spillovers to be beneficial for a company, but negative spillovers should not be immediately classified as “bad news.” There are upsides to this effect that managers can use in their favor.

Social TV is the simultaneous consumption of television alongside social media chatter about the programming. This topic is highly relevant for marketers. Usually it is considered as a bad thing for TV advertisers. While there can be distraction from the ads, marketers can also benefit from positive effects. Consumers’ multiscreen activities can be used to attract more viewers, to leverage TV campaigns and to increase sales. This chatter creates free exposure for the brand online, extends the reach of television ad campaigns to the online space, and offers real-time feedback to advertisers on how their ads are being received. To take advantage of social TV, marketers need to develop a social media and ad design strategy for TV shows. Not every “social show” is good for them. Many programs receive a high volume of program-related chatter at the expense of advertiser-related word-of-mouth, but some programs generate high levels of online conversations that can also benefit their advertisers. Marketers are well served to identify those programs that are conducive to advertiser-related chatter. Also, specific ad designs can further encourage buzz.

To avoid overtargeting consumers or targeting them at the wrong moment, mobile ads need to be relevant. Geographically, consumers have been shown to be more responsive to promotional offers from shops that were located close to them. For the lead time of promotions, insights are similar: The closer in time, the better the response. When considering the interplay of time and space, though, the picture becomes more complex. Recipients need enough time to respond given their distance from the promoted venue, but too much time may reduce response rates. It appears that people do not plan too far in advance for events such as movie watching or with small-screen devices such as smartphones. Another context that can affect people’s response to mobile ads is that of the environment - what is going on around people. In a study of mobile promotions during subway rides, mobile campaigns turned out to be more effective on more crowded trains. Even if this finding cannot be generalized to all forms of crowded environments, it clearly shows that context matters. Understanding its impact can help marketers become better gatekeepers by delivering the right mobile ad to the right person at the right time at the right place in the right context.

Most analyses of the social structure of a network implicitly assume that the relationships in the network are relatively stable. We present evidence that this is not the case. The focal network of this study grew in bursts rather than monotonously over time, and the bursts were highly localized. Links were added and deleted in nearby localities and are not randomly dispersed throughout the network. Also changes in structure lead to simultaneous changes in self-stated interests of its members. For SNA marketing applications the findings suggest interesting improvements. Local bursts around a seed can change the structure of the network dramatically and therefore a marketer’s influence and his chances of success. Therefore, network measurements should be carried out more frequently and closer to the actual implementation of a seeding campaign. To detect these abrupt, dramatic local changes marketers also use a finer resolution. Further, recommendation algorithms that simultaneously account for changes in network structure and content should be applied.

In the good old times shop manager knew their customers personally and were able to tailor offerings to their needs and desires. But how can we create meaningful moments for connected consumers in global markets? Yasmeen Ahmad explains how in digital times data fill in. Smart algorithms help generate insights and enable real time action to provide the right product and service to the right customer at the right time. Companies that don’t want to be left behind a digital elite need to remain close to their customers across multiple digital touchpoints. Being capable of reading, interpreting and acting upon consumers` traces is a prerequisite.

The way in which we communicate is changing radically. In the analog world, promotional communication was consumed rather passively. In today’s digital age, consumers have become more active. Especially, the younger consumer generation - referred to as iBrains- are increasingly spreading their own product experiences across digital channels into the virtual world. Stimulus-response communication still has its place, but must be supplemented with interactive offers that enable a dialogue with consumers. Diverse communication channels must be utilized - analog as well as digital - in order to reach the young target groups. As consumers tend to be “always on”, they use different communication channels simultaneously, leading to continuous partial attention. Therefore, not only new channels are necessary but the entire communication style and design need to be adapted. It is not enough to simply make contact. Instead of thinking about shortening the message, creativity should be put into creatively combining different building blocks of communication.