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Scoring points with Mom
The secret for engaging Moms to try, buy and share
To Marketers Everywhere,
We’re probably a lot like you. Work-obsessed, multi-tasking, out-of-the-box-thinking, analytic fiends. We’re marketers. And
we think we should probably start a support group for people who can’t watch a TV commercial without calculating ROI
and have Facebook’s TOS memorized.
But until then, we wanted to hook up our fellow brothers and sisters of the marketing mind. And we’re excited to share
what we’ve done.
The Digitally Engaged Consumer Research Series was created, because we saw a need in our own work for these insights.
We’ve been exhausted by the digital treasure hunt of sorting through a ridiculous amount of already available research
and information on various consumer segments. We wanted a quick guide that would summarize key channels and online
incentives that drive different segments to try, buy and share products. But it didn’t exist.... so we made it. We dug into
some secondary research, getting the best of what was already out there, and then we did some research of our own. And
because we like good Karma, we’re sharing.
The BIG TAKEAWAY: We think it’s time brands start placing more emphasis on consumer engagement. Here’s why:
1. Acquisition is wasted without an engagement strategy: Most brands have established a fan base, followers, email
subscribers, etc. but without focus on engagement, that effort is wasted on a stale audience.
2. Consumers need more compelling reasons to engage: We’re constantly competing for consumer attention and new
channels are emerging all the time. To rise above the noise, brands need to start providing reasons why consumers
should pay attention. For example: A lot of brands are adding “Visit Us on Facebook” to their TV commercials without
giving any additional information as if visiting your brand on Facebook is incredibly exciting (no offense).
3. Engagement isn’t just about customers anymore: Before social, engagement strategies only existed within the realm
of customer lifecycle marketing and attracting new consumers was predominantly focused on push marketing. Today,
brands are more discoverable and consumers leverage opportunities online to learn more and interact with them before
becoming customers.
4. Traditional digital acquisition tactics only take you so far: We know the marketing funnel isn’t anywhere near as
straightforward as awareness, consideration, trial and purchase. Online strategies focused only on driving conversion
attract consumers further down the purchase path. Today, brands can leverage various engagement strategies to attract
new consumers.
2. © 2013 PunchTab | www.PunchTab.com
A
5. Marketing technology is evolving: Today’s technology platforms, tools and applications are giving marketers more
opportunities to understand and interact with consumers. Marketers have to be able to connect the dots to sales whether
directly or indirectly. Today’s technology is helping marketing close the gap between programs and results.
6. Consumers have too many options: The current economic environment and increased competition at local and global
levels requires brands to focus more on building brand preference or risk losing market share to alternative products or
brands. Brands have a strategic opportunity to address all of these challenges with omni-channel rewards programs that
engage and reward consumers at various touch-points. These programs can drive consumer awareness and discovery
through sharing and engagement, increase digital WOM, and create brand preference by recognizing and rewarding
consumers for everything they do to support the brand from advocacy to purchase.
We’ll get off our soap box now, but we hope you find this helpful.
Sincerely,
Angela Sanfilippo
Angela Sanfilippo
Superwoman
3. © 2013 PunchTab | www.PunchTab.com
Profiling the Digitally
Engaged Mom
IN-DEPTH SURVEY
SECONDARY RESEARCH
To supplement and validate the survey data,
a review of the literature and other studies of
Moms’ online and purchase behaviors pub-
lished in the past three years.
A random sample of over
600 US Moms ages 25-44
Interest in rewards programs
Online and purchase behaviors
when rewarded
Types of rewards of interest
to Moms
PunchTab combined secondary research
with our own research panel of Moms to
better understand how Moms choose,
buy and recommend products and how
multi-channel rewards programs can
influence the online and offline behav-
iors of Moms. We asked what channels
Moms use, what actions they would take
in exchange for earning loyalty points,
and what rewards they would like to re-
ceive for points earned in the program.
4. © 2013 PunchTab | www.PunchTab.com
executive summary
Moms Hold the Keys to the Kingdom
When it comes to household purchases, Moms are the primary
decision makers, influencing a $2.4T in spend every year[1]
making this one of the most critical demographics segments for
brands. (Yes, two trillion dollars!)
Moms Engage Online and Influence Other Moms
Nearly 91% of Moms use social media regularly and spend 2x
more time online than the rest of the general population (tweet
this).[2] Moms rely significantly on the online recommendations
of other Moms with well over half indicating their purchases
were influenced by information on social media sites[3],[4]. This
creates a substantial opportunity for brands to build and foster
direct relationships with consumers that can impact purchase
behavior and household brand loyalty.
Moms Will Buy and Engage More If Rewarded
Over 81% of Moms said they would buy and engage more if
rewarded with loyalty points. Loyalty programs have long been
usedtoincreasepurchaseandretention.Andwiththeproliferation
of social media channels and increased online engagement, it
has become essential for brands to leverage these outlets to
engage consumers at every stage of the customer lifecycle.
[1] Ekaterina Walter “The 30 Stats You Need To Know When Marketing To Women” The New Web. 24 January 2012. Retrieved 1 May 2013 from http://thenextweb.
com/socialmedia/2012/01/24/the-top-30-stats-you-need-to-know-when-marketing-to-women/
[2] Babycenter. “2012 American Media Mom Report.” April 2012. P. 18.
[3] Babycenter. 2013 Social Mom Report, A 21st Century Moms Insights Series. April 2013. P. 13.
[4] Performics and ROI Research. S-Net: A Study in Social Media Usage & Behavior - “Social Media Moms.” April, 2012. P. 6.
But loyalty programs can also play another important role in the
sales cycle—driving awareness, consideration and preference.
To do this, brands must start finding avenues to engage and
reward Moms for driving word of mouth and purchasing. In fact,
over half of Moms said they’ll engage with brands and share
brand content on the social channels that they use if part of
a rewards program. Next generation, multi-channel rewards
programs are one of the most effective ways to do this.
Moms Can Take Rewards Programs to a New Level
But there’s more opportunity for companies with multiple brands
and product lines to review their loyalty program strategy and
assure maximum impact across all products in its portfolio. An
“umbrella loyalty program”—a loyalty program at the parent
company level can leverage Moms’ loyalty from one brand to
other brands and types of products in the company’s portfolio.
Three out of four moms said they prefer umbrella loyalty
programs. 59% of these moms indicated they would buy other
products from the parent company and nearly half said they’d
switch from a competitor’s product. By rewarding moms for
purchasing across all brands and product categories, companies
will increase their share of wallet and have moms purchasing a
greater variety of products.
5. © 2013 PunchTab | www.PunchTab.com
A
Moms Hold the Keys to the Kingdom
Mom’s control $2.4T (yes trillion) in spend
50% 25% 26% 86%
Moms ARE ACTIVE ON A VARIETY OF SOCIAL MEDIA CHANNELS
Moms Engage Online and Influence Other Moms
Moms are active on SOCIAL and that’s a growing trend
The reach of Moms is greater than ever before with Moms’ increased use of
social media. Of all social channels, Facebook has the highest penetration
rate, but growth in Moms’ use of other channels has been significant over
the past few years. For example, in February 2012, Edison Research and
Arbitron International reported that only 10% of Moms use Twitter.[5] That
percentage has grown to 25% in just over a year (tweet this). Therefore,
brands are wise to cover multiple or all channels where Moms congregate
in an “OMNI-CHANNEL” loyalty program.
[5] Edison Research and Arbitron International. “Moms and Media 2012.” May 2012. P. 30
*SOURCE: Punchtab, 2013
7. © 2013 PunchTab | www.PunchTab.com
Moms trust what they read online... and go there first
Moms turn to other Moms for advice before they purchase a new product and consider other Moms the most credible
experts when they have questions. These exchanges happen both in person and online--through channels such as
Facebook, Pinterest, Twitter, blogs and Instagram.
Moms RESEARCH AND DISCOVER PRODUCTS THROUGH SOCIAL MEDIA
84%OF Moms GO
ONLINE WHEN
LOOKING FOR
PRODUCT/BRAND
RECOMMENDATIONS
65% LEARN about a PRODUCT or
SERVICE through social
networking
56%
follow up on PRODUCT
RECOMMENDATIONS received
on social sites to learn more
74%
have purchased a product as a result of
PROMOTION or MENTION in a BLOG
64% of Moms READ ONLINE REVIEWS be-
fore purchasing products
66%
view social network as a good
source of INFORMATION ABOUT
COMPANIES/BRANDS
*SOURCE: Performics and ROI Research, 2012; BabyCenter, 2012, Burst Media, 20128. © 2013 PunchTab | www.PunchTab.com
A recommendation from a mom is twice as effective as a
sponsored advertisement
Recommendations and postings by third parties are significantly more powerful than information posted by brands
themselves. And a recommendation from a mom is more than twice as effective as a sponsored ad. The takeaway:
Moms are a powerhouse of consumer conversion.
All the data points to the importance of engaging a potentially powerful brand spokesperson - Mom. Getting Moms to like, tweet,
post brand content, write reviews and blog about products makes an impact for the brand. With sizable numbers of Moms on
every social media channel using content on those channels to make purchase decisions, brands need to build a presence through
Moms who like, use and recommend a brand’s products.
TAKE AWAY
*SOURCE:Babycenter. 2013 Social Mom Report, A 21st Century Moms Insights Series. April 2013.
9. © 2013 PunchTab | www.PunchTab.com
MOMS RECOMMENDATIONS ARE WORTH A LOT!
59%
44%
38%
23%
...a mom recommended it on a parenting site
...a friend liked or posted about the brand on a social network
...the brand posted information on a social network
...you saw a sponsored ad on a social network
Have you ever bought something because…
Moms Will Buy and Engage More If Rewarded
We’ll start with the bottom line: Moms buy more and share more if rewarded. Reward Moms. Get more Moms. Get more
share of wallet. Furthermore, if a mom follows your brand on a social channel, they’re more inclined to purchase from your
family of brands.
Want Moms to take actions and interact with your brands? Offer them rewards.
If Offered Rewards, 81% Of Moms Are Willing To Interact With Brands Socially.
Where are Moms sharing? The number one place is Facebook with 50% of Facebook Moms willing to share brand content
with their networks. Number two is Instagram with 42-46% of Instagram Moms willing to post brand content. Twitter fell
last at 32% of Twitter Moms willing to tweet or retweet brand content with their social network.
MOMS WHO FOLLOW ON SOCIAL ARE EVEN MORE LIKELY
TO BUY AND ENGAGE
92%Of Moms who ALSO like a brand on Facebook are
more likely to buy and engage when rewarded
98%Of Moms who ALSO follow a brand on Twitter
are more likely to buy and engage when rewarded
93%Of Moms who ALSO follow a brand on Pinterest
are more likely to buy and engage when rewarded
81% Of ALL Moms are likely to buy and engage
when rewarded
*SOURCE: Punchtab, 201310. © 2013 PunchTab | www.PunchTab.com
52% 32%
9%
46%
42%54%
56%
50%
59%
57%
If rewarded, Twitter Moms
will follow a brand If rewarded, Twitter Moms will
tweet or retweet content
from a brand
When incentivized
Facebook Moms will
like a brand’s
Facebook page or
share content from
the page
When incentivized
Facebook Moms will
allow a brand to post
to their timeline
If rewarded Instagram
Moms will upload a
photo to Instagram
with a brand-related
hashtag
If rewarded Instagram Moms will
upload a photo to Instagram to share
their experience with a product
If rewarded, Pinterest Moms will pin
an image from a brand’s website
If rewarded, Pinterest
Moms will visit a
brand’s Pinterest page
If rewarded, Pinterest
Moms will follow a
brand on Pinterest
When incentivized
Facebook Moms will
visit a brand’s
Facebook page
When incentivized Facebook
Moms will “like” content from
a brand’s website
Over 50% of Moms would engage with brands on Facebook,
Twitter and Pinterest
*SOURCE: Punchtab, 2013
50%
11. © 2013 PunchTab | www.PunchTab.com
[6] Babycenter. “2012 American Media Mom Report.” April 2012. P. 33.
[7] Exact Target, “The 2012 Channel Preference Survey, Report #14” P. 9. Retrieved 1 May 2013
Moms go above and beyond when rewarded
Moms STAR CHART
WHEN REWARDED, Moms WILL DO MORE FOR YOUR BRAND!
Provide their EMAIL ADDRESS and RECEIVING EMAILS from a
brand
Complete a PROFILE for a brand with information such as your
gender, birthday, purchase history or purchase plans
Contribute to an ONLINE COMMUNITY (for example, leaving
comments, answering questions or responding to others)
Provide their input on POLLS or SURVEYS
WATCH a VIDEO that a brand suggested for them
POST a REVIEW of a brand or a product
FACEBOOK IS NOT THE END ALL:
Moms want email
This raises the question regarding mom’s preferred
channel for receiving direct marketing messages
from brands. Many studies have shown that the
preferred channel for messages from brands is
permission-based email.[7] Rewards programs can
help you here as well. Over half of Moms in our
study said that they’d provide their email address
to open this channel of communication with
brands, in exchange for loyalty points.
41%
24%
72%
28%
Moms can go where brands can not
91% of Moms indicated they would NOT allow brands to post on their Facebook timeline
Moms value their privacy! Almost all Moms would not allow brands to post content on their Facebook timeline. How do brands get
around this? By turning moms into brand ambassadors..The personal views of those Moms and good reviews they share with their
networks will reach out to consumers on the brand’s behalf.
DON’T FORGET 64% of Moms read
online reviews before purchasing a product.[6]
12. © 2013 PunchTab | www.PunchTab.com
41%
59%
save
What Moms Want
80% of Moms Want Financial Rewards... and they’re willing to share
When given multiple options of available rewards, Moms ranked some kind of financial reward (discounts, free products) as
the most desired. This is consistent with other value-oriented trends in the past few years given the challenging economic
environment. We should also remember that Moms are the ultimate givers, with over half preferring that some portion of their
rewards be donated to charities and non-profits.
% OF MOMS WHO ARE INTERESTED IN VARIOUS FINANCIAL REWARDS
60%
DISCOUNT or
COUPON to
use on a future
purchase of
brand product
52%
DISCOUNT or
COUPON to
use on a future
purchase of
product from
brand’s family
of products
83%
FREE products
or services
from the brand
32%
Products or
services from
other compa-
nies RELATED
to brand’s
products
82%
GIFT CARDS
from popular
retailers
*SOURCE: Punchtab, 201313. © 2013 PunchTab | www.PunchTab.com
% OF MOMS WHO ARE INTERESTED IN VARIOUS EXCLUSIVE
ACCESS OR EXPERIENCES AS REWARDS
Opportunity to
INFLUENCE
company’s future
products or designs
Opportunity to
PURCHASE NEW
PRODUCTS
before they’re
available to the
general public
38
ADVANCED
NOTIFICATION
of new products
3639
Perks associated
with an “ELITE”
status with a
brand
67
MERCHANDISE
with brand’s logo
on it
37
Access to
EXCLUSIVE
EVENTS or
experiences not
available to the
general public
26
VIP Treatment
Moms still love non-economic rewards, too
A mom who racks up a lot of points in a loyalty program
is clearly very engaged with the brand. 35-40% of Moms
indicated that they would value incentives that offered them
exclusive access to a brand (tweet this), such as being able
to buy new products ahead of the general public or being
able to influence a brand’s future products. She’s frequently
talking about the brand on social media, contributing to online
discussions, purchasing and loving the product. By giving this
mom “exclusive access” rewards, the brand is giving her more
to talk about. Who better to be the first to have and review a
new product?
Additionally, this mom can provide the brand with valuable
insights based on her use of the product, including
enhancements, modifications and suggestions for related
products. Giving this mom access to product management
is a win-win: she views this as a reward and her insights are
valuable to the company.
Other examples of exclusive access awards include invitations
to special events, perks associated with an “elite” status such
as free shipping or merchandise with the brand’s logo on it. In
all of these cases, Moms increasingly identify with the brand
and naturally promote it in their online and offline social circles.
*SOURCE: Punchtab, 201314. © 2013 PunchTab | www.PunchTab.com
Moms like recognition and brands like free content
Within the context of a loyalty program,brands can solicit content then recognize or give out awards to the best contributors.
For example, a food brand might solicit recipes or pictures of meals that feature their product. 23% of Moms said they’d
value an award or recognition on the brand’s website as a reward for their loyalty and effort (tweet this). Somewhat
fewer, but still a healthy proportion said they’d value recognition or an award published on Facebook or another social
media channel.
These rewards are particularly valuable to brands because they create brand specific content that’s interesting for other
Moms, increasing traffic and engagement on the brand’s online properties. While the number of Moms who value these
rewards is less than those who value exclusive access rewards, these Moms shouldn’t be overlooked.
% OF MOMS WHO ARE INTERESTED IN VARIOUS RECOGNITION
OR AWARDS AS REWARDS
23%
RECOGNITION
OR AWARD on a
brand’s website
18%
RECOGNITION
OR AWARD on
Facebook or other
social media site
6%
BADGES
8%
RECOGNITION
OR PROMOTION
of your BLOG, if
you have one
*SOURCE: Punchtab, 2013
15. © 2013 PunchTab | www.PunchTab.com
3 OF 4 MOMS PREFER A LOYALTY PROGRAM AT THE
PARENT COMPANY LEVEL VS. INDIVIDUAL BRAND LEVEL
IF THEY CAN EARN POINTS IN A LOYALTY PROGRAM, MOMS WILL
BROADEN THE RANGE OF PRODUCTS THEY PURCHASE FROM A
COMPANY
This is all good news for us marketing folks. Mom joins a loyalty program based on her positive experience with one product
then helps market that product to other Moms through social media channels, completely free of charge for you. In addition,
the parent company gains a greater share of wallet as Mom buys additional products from the brand and parent company.
What’s not to love about an omni-channel umbrella loyalty program?
73%
27%
Moms who prefer
a loyalty program
at parent company
level
company level
Moms who prefer a
loyalty program at
the brand level
brand level
59% 46%
parent company
Moms will buy
other products
from the parent
company
competitors
Moms will switch
from a competitor’s
product
TAKE AWAY
Moms Can Take Rewards Programs to a New Level
Introducing the umbrella loyalty program
While we were asking Moms about loyalty programs, we decided to also test how far loyalty programs could influence Moms’
purchases beyond the initial brand that she buys. Brands tend to develop marketing campaigns and loyalty programs at the
brand level. But are companies with multiple brands missing an opportunity to cross-sell their other brands and products to
Moms who are engaged with them through a brand loyalty program? Our findings: emphatically “yes!”
“Umbrella loyalty programs” are loyalty programs that reward consumers for purchasing and/or engaging across all or many
*SOURCE: Punchtab, 2013
of the brands in a company’s portfolio.
In fact, 3 of 4 Moms in the survey expressed a preference for a broader loyalty program at the parent company level (an umbrella
loyalty program) vs. the brand level. That’s nearly 75% of Moms who are willing to give you the opportunity to market other
brands and products you offer.
More than half of moms reported that they’d purchase other products from the brand as part of an umbrella loyalty program.
Almost half indicated that they’d switch from a competitor’s product if they earned loyalty points, assuming equivalent product
quality.
16. © 2013 PunchTab | www.PunchTab.com
Putting it all together
We’ve talked about two new ways to stretch the value of loyalty programs in this whitepaper: omni-channel loyalty programs rewarding
consumer activity in all channels and Umbrella rewards programs rewarding consumer activity across the entire product portfolio. Putting
these two extensions together, you have the omni-channel umbrella loyalty program. (It’s not as complicated as the name might sound.)
Our research showed that Moms are an ideal segment for omni-channel loyalty programs because they are highly active on social and if
rewarded, they’ll happily share your content and recommend your brand online. In addition, the majority of Moms (72%) prefer umbrella
loyalty programs where they have a greater opportunity to earn points and explore other products. All of this is good for brands as well—
they get more digital word of mouth and can cross-sell other products in their portfolio.
Not to mention, loyalty programs don’t need to be expensive. In fact, a large proportion of Moms are interested in non-financial rewards
such as exclusive access to a brand and awards for brand-related content contributions. In addition to being essentially free, these rewards
provide benefits to brands beyond the purchasing and social sharing behaviors that they’re rewarding and can cement a customer’s loyalty
to the brand.
PunchTab has solutions that help companies scale loyalty programs to cover multiple channels and multiple brands. These programs
allow brands to reward users for a variety of social and purchase behaviors that support the entire sales cycle—from helping to increase
product awareness among new Moms to expanding the volume and breadth of products that current Moms purchase from the brand. For
more information, visit www.punchtab.com.
SOURCES:
• Babycenter. 2012 American Media Mom Report. April 2012. (http://www.babycentersolutions.com/docs/BabyCenter_2012_American_Media_Mom_Report.pdf)
• Babycenter. 2013 Social Mom Report, A 21st Century Moms Insights Series. April 2013. (http://www.babycentersolutions.com/docs/BabyCenter_2013_Social_Media_
Marketers_Handbook_US.pdf)
• Burst Media. Online Insights - Let’s Get Social, Web User Preferences, Habits and Actions in Spring 2012. June 2012. (http://burstmedia.com/pdf/burst_media_online_
insights_2012_06.pdf)
• Edison Research and Arbitron International. Moms and Media 2012. May 2012. (http://www.slideshare.net/webby2001/Moms-and-media-2012)
• Performics and ROI Research. S-Net: A Study in Social Media Usage & Behavior - “Social Media Moms.” April, 2012. (http://www.slideshare.net/performics_us/snet-so-
cial-media-Moms-summary-april-2012)
• The Next Web. The top 30 stats you need to know when marketing to women. January 2012. (http://thenextweb.com/socialmedia/2012/01/24/the-top-30-stats-you-
need-to-know-when-marketing-to-women/)
17. © 2013 PunchTab | www.PunchTab.com
PTPT
Interested in learning how loyalty
programs can help your brand?
sales@punchtab.com
18. © 2013 PunchTab | www.PunchTab.com

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Scoring points with moms- The secret for engaging moms to try, buy and share

  • 1. A Scoring points with Mom The secret for engaging Moms to try, buy and share
  • 2. To Marketers Everywhere, We’re probably a lot like you. Work-obsessed, multi-tasking, out-of-the-box-thinking, analytic fiends. We’re marketers. And we think we should probably start a support group for people who can’t watch a TV commercial without calculating ROI and have Facebook’s TOS memorized. But until then, we wanted to hook up our fellow brothers and sisters of the marketing mind. And we’re excited to share what we’ve done. The Digitally Engaged Consumer Research Series was created, because we saw a need in our own work for these insights. We’ve been exhausted by the digital treasure hunt of sorting through a ridiculous amount of already available research and information on various consumer segments. We wanted a quick guide that would summarize key channels and online incentives that drive different segments to try, buy and share products. But it didn’t exist.... so we made it. We dug into some secondary research, getting the best of what was already out there, and then we did some research of our own. And because we like good Karma, we’re sharing. The BIG TAKEAWAY: We think it’s time brands start placing more emphasis on consumer engagement. Here’s why: 1. Acquisition is wasted without an engagement strategy: Most brands have established a fan base, followers, email subscribers, etc. but without focus on engagement, that effort is wasted on a stale audience. 2. Consumers need more compelling reasons to engage: We’re constantly competing for consumer attention and new channels are emerging all the time. To rise above the noise, brands need to start providing reasons why consumers should pay attention. For example: A lot of brands are adding “Visit Us on Facebook” to their TV commercials without giving any additional information as if visiting your brand on Facebook is incredibly exciting (no offense). 3. Engagement isn’t just about customers anymore: Before social, engagement strategies only existed within the realm of customer lifecycle marketing and attracting new consumers was predominantly focused on push marketing. Today, brands are more discoverable and consumers leverage opportunities online to learn more and interact with them before becoming customers. 4. Traditional digital acquisition tactics only take you so far: We know the marketing funnel isn’t anywhere near as straightforward as awareness, consideration, trial and purchase. Online strategies focused only on driving conversion attract consumers further down the purchase path. Today, brands can leverage various engagement strategies to attract new consumers. 2. © 2013 PunchTab | www.PunchTab.com
  • 3. A 5. Marketing technology is evolving: Today’s technology platforms, tools and applications are giving marketers more opportunities to understand and interact with consumers. Marketers have to be able to connect the dots to sales whether directly or indirectly. Today’s technology is helping marketing close the gap between programs and results. 6. Consumers have too many options: The current economic environment and increased competition at local and global levels requires brands to focus more on building brand preference or risk losing market share to alternative products or brands. Brands have a strategic opportunity to address all of these challenges with omni-channel rewards programs that engage and reward consumers at various touch-points. These programs can drive consumer awareness and discovery through sharing and engagement, increase digital WOM, and create brand preference by recognizing and rewarding consumers for everything they do to support the brand from advocacy to purchase. We’ll get off our soap box now, but we hope you find this helpful. Sincerely, Angela Sanfilippo Angela Sanfilippo Superwoman 3. © 2013 PunchTab | www.PunchTab.com
  • 4. Profiling the Digitally Engaged Mom IN-DEPTH SURVEY SECONDARY RESEARCH To supplement and validate the survey data, a review of the literature and other studies of Moms’ online and purchase behaviors pub- lished in the past three years. A random sample of over 600 US Moms ages 25-44 Interest in rewards programs Online and purchase behaviors when rewarded Types of rewards of interest to Moms PunchTab combined secondary research with our own research panel of Moms to better understand how Moms choose, buy and recommend products and how multi-channel rewards programs can influence the online and offline behav- iors of Moms. We asked what channels Moms use, what actions they would take in exchange for earning loyalty points, and what rewards they would like to re- ceive for points earned in the program. 4. © 2013 PunchTab | www.PunchTab.com
  • 5. executive summary Moms Hold the Keys to the Kingdom When it comes to household purchases, Moms are the primary decision makers, influencing a $2.4T in spend every year[1] making this one of the most critical demographics segments for brands. (Yes, two trillion dollars!) Moms Engage Online and Influence Other Moms Nearly 91% of Moms use social media regularly and spend 2x more time online than the rest of the general population (tweet this).[2] Moms rely significantly on the online recommendations of other Moms with well over half indicating their purchases were influenced by information on social media sites[3],[4]. This creates a substantial opportunity for brands to build and foster direct relationships with consumers that can impact purchase behavior and household brand loyalty. Moms Will Buy and Engage More If Rewarded Over 81% of Moms said they would buy and engage more if rewarded with loyalty points. Loyalty programs have long been usedtoincreasepurchaseandretention.Andwiththeproliferation of social media channels and increased online engagement, it has become essential for brands to leverage these outlets to engage consumers at every stage of the customer lifecycle. [1] Ekaterina Walter “The 30 Stats You Need To Know When Marketing To Women” The New Web. 24 January 2012. Retrieved 1 May 2013 from http://thenextweb. com/socialmedia/2012/01/24/the-top-30-stats-you-need-to-know-when-marketing-to-women/ [2] Babycenter. “2012 American Media Mom Report.” April 2012. P. 18. [3] Babycenter. 2013 Social Mom Report, A 21st Century Moms Insights Series. April 2013. P. 13. [4] Performics and ROI Research. S-Net: A Study in Social Media Usage & Behavior - “Social Media Moms.” April, 2012. P. 6. But loyalty programs can also play another important role in the sales cycle—driving awareness, consideration and preference. To do this, brands must start finding avenues to engage and reward Moms for driving word of mouth and purchasing. In fact, over half of Moms said they’ll engage with brands and share brand content on the social channels that they use if part of a rewards program. Next generation, multi-channel rewards programs are one of the most effective ways to do this. Moms Can Take Rewards Programs to a New Level But there’s more opportunity for companies with multiple brands and product lines to review their loyalty program strategy and assure maximum impact across all products in its portfolio. An “umbrella loyalty program”—a loyalty program at the parent company level can leverage Moms’ loyalty from one brand to other brands and types of products in the company’s portfolio. Three out of four moms said they prefer umbrella loyalty programs. 59% of these moms indicated they would buy other products from the parent company and nearly half said they’d switch from a competitor’s product. By rewarding moms for purchasing across all brands and product categories, companies will increase their share of wallet and have moms purchasing a greater variety of products. 5. © 2013 PunchTab | www.PunchTab.com
  • 6. A Moms Hold the Keys to the Kingdom Mom’s control $2.4T (yes trillion) in spend
  • 7. 50% 25% 26% 86% Moms ARE ACTIVE ON A VARIETY OF SOCIAL MEDIA CHANNELS Moms Engage Online and Influence Other Moms Moms are active on SOCIAL and that’s a growing trend The reach of Moms is greater than ever before with Moms’ increased use of social media. Of all social channels, Facebook has the highest penetration rate, but growth in Moms’ use of other channels has been significant over the past few years. For example, in February 2012, Edison Research and Arbitron International reported that only 10% of Moms use Twitter.[5] That percentage has grown to 25% in just over a year (tweet this). Therefore, brands are wise to cover multiple or all channels where Moms congregate in an “OMNI-CHANNEL” loyalty program. [5] Edison Research and Arbitron International. “Moms and Media 2012.” May 2012. P. 30 *SOURCE: Punchtab, 2013 7. © 2013 PunchTab | www.PunchTab.com
  • 8. Moms trust what they read online... and go there first Moms turn to other Moms for advice before they purchase a new product and consider other Moms the most credible experts when they have questions. These exchanges happen both in person and online--through channels such as Facebook, Pinterest, Twitter, blogs and Instagram. Moms RESEARCH AND DISCOVER PRODUCTS THROUGH SOCIAL MEDIA 84%OF Moms GO ONLINE WHEN LOOKING FOR PRODUCT/BRAND RECOMMENDATIONS 65% LEARN about a PRODUCT or SERVICE through social networking 56% follow up on PRODUCT RECOMMENDATIONS received on social sites to learn more 74% have purchased a product as a result of PROMOTION or MENTION in a BLOG 64% of Moms READ ONLINE REVIEWS be- fore purchasing products 66% view social network as a good source of INFORMATION ABOUT COMPANIES/BRANDS *SOURCE: Performics and ROI Research, 2012; BabyCenter, 2012, Burst Media, 20128. © 2013 PunchTab | www.PunchTab.com
  • 9. A recommendation from a mom is twice as effective as a sponsored advertisement Recommendations and postings by third parties are significantly more powerful than information posted by brands themselves. And a recommendation from a mom is more than twice as effective as a sponsored ad. The takeaway: Moms are a powerhouse of consumer conversion. All the data points to the importance of engaging a potentially powerful brand spokesperson - Mom. Getting Moms to like, tweet, post brand content, write reviews and blog about products makes an impact for the brand. With sizable numbers of Moms on every social media channel using content on those channels to make purchase decisions, brands need to build a presence through Moms who like, use and recommend a brand’s products. TAKE AWAY *SOURCE:Babycenter. 2013 Social Mom Report, A 21st Century Moms Insights Series. April 2013. 9. © 2013 PunchTab | www.PunchTab.com MOMS RECOMMENDATIONS ARE WORTH A LOT! 59% 44% 38% 23% ...a mom recommended it on a parenting site ...a friend liked or posted about the brand on a social network ...the brand posted information on a social network ...you saw a sponsored ad on a social network Have you ever bought something because…
  • 10. Moms Will Buy and Engage More If Rewarded We’ll start with the bottom line: Moms buy more and share more if rewarded. Reward Moms. Get more Moms. Get more share of wallet. Furthermore, if a mom follows your brand on a social channel, they’re more inclined to purchase from your family of brands. Want Moms to take actions and interact with your brands? Offer them rewards. If Offered Rewards, 81% Of Moms Are Willing To Interact With Brands Socially. Where are Moms sharing? The number one place is Facebook with 50% of Facebook Moms willing to share brand content with their networks. Number two is Instagram with 42-46% of Instagram Moms willing to post brand content. Twitter fell last at 32% of Twitter Moms willing to tweet or retweet brand content with their social network. MOMS WHO FOLLOW ON SOCIAL ARE EVEN MORE LIKELY TO BUY AND ENGAGE 92%Of Moms who ALSO like a brand on Facebook are more likely to buy and engage when rewarded 98%Of Moms who ALSO follow a brand on Twitter are more likely to buy and engage when rewarded 93%Of Moms who ALSO follow a brand on Pinterest are more likely to buy and engage when rewarded 81% Of ALL Moms are likely to buy and engage when rewarded *SOURCE: Punchtab, 201310. © 2013 PunchTab | www.PunchTab.com
  • 11. 52% 32% 9% 46% 42%54% 56% 50% 59% 57% If rewarded, Twitter Moms will follow a brand If rewarded, Twitter Moms will tweet or retweet content from a brand When incentivized Facebook Moms will like a brand’s Facebook page or share content from the page When incentivized Facebook Moms will allow a brand to post to their timeline If rewarded Instagram Moms will upload a photo to Instagram with a brand-related hashtag If rewarded Instagram Moms will upload a photo to Instagram to share their experience with a product If rewarded, Pinterest Moms will pin an image from a brand’s website If rewarded, Pinterest Moms will visit a brand’s Pinterest page If rewarded, Pinterest Moms will follow a brand on Pinterest When incentivized Facebook Moms will visit a brand’s Facebook page When incentivized Facebook Moms will “like” content from a brand’s website Over 50% of Moms would engage with brands on Facebook, Twitter and Pinterest *SOURCE: Punchtab, 2013 50% 11. © 2013 PunchTab | www.PunchTab.com
  • 12. [6] Babycenter. “2012 American Media Mom Report.” April 2012. P. 33. [7] Exact Target, “The 2012 Channel Preference Survey, Report #14” P. 9. Retrieved 1 May 2013 Moms go above and beyond when rewarded Moms STAR CHART WHEN REWARDED, Moms WILL DO MORE FOR YOUR BRAND! Provide their EMAIL ADDRESS and RECEIVING EMAILS from a brand Complete a PROFILE for a brand with information such as your gender, birthday, purchase history or purchase plans Contribute to an ONLINE COMMUNITY (for example, leaving comments, answering questions or responding to others) Provide their input on POLLS or SURVEYS WATCH a VIDEO that a brand suggested for them POST a REVIEW of a brand or a product FACEBOOK IS NOT THE END ALL: Moms want email This raises the question regarding mom’s preferred channel for receiving direct marketing messages from brands. Many studies have shown that the preferred channel for messages from brands is permission-based email.[7] Rewards programs can help you here as well. Over half of Moms in our study said that they’d provide their email address to open this channel of communication with brands, in exchange for loyalty points. 41% 24% 72% 28% Moms can go where brands can not 91% of Moms indicated they would NOT allow brands to post on their Facebook timeline Moms value their privacy! Almost all Moms would not allow brands to post content on their Facebook timeline. How do brands get around this? By turning moms into brand ambassadors..The personal views of those Moms and good reviews they share with their networks will reach out to consumers on the brand’s behalf. DON’T FORGET 64% of Moms read online reviews before purchasing a product.[6] 12. © 2013 PunchTab | www.PunchTab.com 41% 59%
  • 13. save What Moms Want 80% of Moms Want Financial Rewards... and they’re willing to share When given multiple options of available rewards, Moms ranked some kind of financial reward (discounts, free products) as the most desired. This is consistent with other value-oriented trends in the past few years given the challenging economic environment. We should also remember that Moms are the ultimate givers, with over half preferring that some portion of their rewards be donated to charities and non-profits. % OF MOMS WHO ARE INTERESTED IN VARIOUS FINANCIAL REWARDS 60% DISCOUNT or COUPON to use on a future purchase of brand product 52% DISCOUNT or COUPON to use on a future purchase of product from brand’s family of products 83% FREE products or services from the brand 32% Products or services from other compa- nies RELATED to brand’s products 82% GIFT CARDS from popular retailers *SOURCE: Punchtab, 201313. © 2013 PunchTab | www.PunchTab.com
  • 14. % OF MOMS WHO ARE INTERESTED IN VARIOUS EXCLUSIVE ACCESS OR EXPERIENCES AS REWARDS Opportunity to INFLUENCE company’s future products or designs Opportunity to PURCHASE NEW PRODUCTS before they’re available to the general public 38 ADVANCED NOTIFICATION of new products 3639 Perks associated with an “ELITE” status with a brand 67 MERCHANDISE with brand’s logo on it 37 Access to EXCLUSIVE EVENTS or experiences not available to the general public 26 VIP Treatment Moms still love non-economic rewards, too A mom who racks up a lot of points in a loyalty program is clearly very engaged with the brand. 35-40% of Moms indicated that they would value incentives that offered them exclusive access to a brand (tweet this), such as being able to buy new products ahead of the general public or being able to influence a brand’s future products. She’s frequently talking about the brand on social media, contributing to online discussions, purchasing and loving the product. By giving this mom “exclusive access” rewards, the brand is giving her more to talk about. Who better to be the first to have and review a new product? Additionally, this mom can provide the brand with valuable insights based on her use of the product, including enhancements, modifications and suggestions for related products. Giving this mom access to product management is a win-win: she views this as a reward and her insights are valuable to the company. Other examples of exclusive access awards include invitations to special events, perks associated with an “elite” status such as free shipping or merchandise with the brand’s logo on it. In all of these cases, Moms increasingly identify with the brand and naturally promote it in their online and offline social circles. *SOURCE: Punchtab, 201314. © 2013 PunchTab | www.PunchTab.com
  • 15. Moms like recognition and brands like free content Within the context of a loyalty program,brands can solicit content then recognize or give out awards to the best contributors. For example, a food brand might solicit recipes or pictures of meals that feature their product. 23% of Moms said they’d value an award or recognition on the brand’s website as a reward for their loyalty and effort (tweet this). Somewhat fewer, but still a healthy proportion said they’d value recognition or an award published on Facebook or another social media channel. These rewards are particularly valuable to brands because they create brand specific content that’s interesting for other Moms, increasing traffic and engagement on the brand’s online properties. While the number of Moms who value these rewards is less than those who value exclusive access rewards, these Moms shouldn’t be overlooked. % OF MOMS WHO ARE INTERESTED IN VARIOUS RECOGNITION OR AWARDS AS REWARDS 23% RECOGNITION OR AWARD on a brand’s website 18% RECOGNITION OR AWARD on Facebook or other social media site 6% BADGES 8% RECOGNITION OR PROMOTION of your BLOG, if you have one *SOURCE: Punchtab, 2013 15. © 2013 PunchTab | www.PunchTab.com
  • 16. 3 OF 4 MOMS PREFER A LOYALTY PROGRAM AT THE PARENT COMPANY LEVEL VS. INDIVIDUAL BRAND LEVEL IF THEY CAN EARN POINTS IN A LOYALTY PROGRAM, MOMS WILL BROADEN THE RANGE OF PRODUCTS THEY PURCHASE FROM A COMPANY This is all good news for us marketing folks. Mom joins a loyalty program based on her positive experience with one product then helps market that product to other Moms through social media channels, completely free of charge for you. In addition, the parent company gains a greater share of wallet as Mom buys additional products from the brand and parent company. What’s not to love about an omni-channel umbrella loyalty program? 73% 27% Moms who prefer a loyalty program at parent company level company level Moms who prefer a loyalty program at the brand level brand level 59% 46% parent company Moms will buy other products from the parent company competitors Moms will switch from a competitor’s product TAKE AWAY Moms Can Take Rewards Programs to a New Level Introducing the umbrella loyalty program While we were asking Moms about loyalty programs, we decided to also test how far loyalty programs could influence Moms’ purchases beyond the initial brand that she buys. Brands tend to develop marketing campaigns and loyalty programs at the brand level. But are companies with multiple brands missing an opportunity to cross-sell their other brands and products to Moms who are engaged with them through a brand loyalty program? Our findings: emphatically “yes!” “Umbrella loyalty programs” are loyalty programs that reward consumers for purchasing and/or engaging across all or many *SOURCE: Punchtab, 2013 of the brands in a company’s portfolio. In fact, 3 of 4 Moms in the survey expressed a preference for a broader loyalty program at the parent company level (an umbrella loyalty program) vs. the brand level. That’s nearly 75% of Moms who are willing to give you the opportunity to market other brands and products you offer. More than half of moms reported that they’d purchase other products from the brand as part of an umbrella loyalty program. Almost half indicated that they’d switch from a competitor’s product if they earned loyalty points, assuming equivalent product quality. 16. © 2013 PunchTab | www.PunchTab.com
  • 17. Putting it all together We’ve talked about two new ways to stretch the value of loyalty programs in this whitepaper: omni-channel loyalty programs rewarding consumer activity in all channels and Umbrella rewards programs rewarding consumer activity across the entire product portfolio. Putting these two extensions together, you have the omni-channel umbrella loyalty program. (It’s not as complicated as the name might sound.) Our research showed that Moms are an ideal segment for omni-channel loyalty programs because they are highly active on social and if rewarded, they’ll happily share your content and recommend your brand online. In addition, the majority of Moms (72%) prefer umbrella loyalty programs where they have a greater opportunity to earn points and explore other products. All of this is good for brands as well— they get more digital word of mouth and can cross-sell other products in their portfolio. Not to mention, loyalty programs don’t need to be expensive. In fact, a large proportion of Moms are interested in non-financial rewards such as exclusive access to a brand and awards for brand-related content contributions. In addition to being essentially free, these rewards provide benefits to brands beyond the purchasing and social sharing behaviors that they’re rewarding and can cement a customer’s loyalty to the brand. PunchTab has solutions that help companies scale loyalty programs to cover multiple channels and multiple brands. These programs allow brands to reward users for a variety of social and purchase behaviors that support the entire sales cycle—from helping to increase product awareness among new Moms to expanding the volume and breadth of products that current Moms purchase from the brand. For more information, visit www.punchtab.com. SOURCES: • Babycenter. 2012 American Media Mom Report. April 2012. (http://www.babycentersolutions.com/docs/BabyCenter_2012_American_Media_Mom_Report.pdf) • Babycenter. 2013 Social Mom Report, A 21st Century Moms Insights Series. April 2013. (http://www.babycentersolutions.com/docs/BabyCenter_2013_Social_Media_ Marketers_Handbook_US.pdf) • Burst Media. Online Insights - Let’s Get Social, Web User Preferences, Habits and Actions in Spring 2012. June 2012. (http://burstmedia.com/pdf/burst_media_online_ insights_2012_06.pdf) • Edison Research and Arbitron International. Moms and Media 2012. May 2012. (http://www.slideshare.net/webby2001/Moms-and-media-2012) • Performics and ROI Research. S-Net: A Study in Social Media Usage & Behavior - “Social Media Moms.” April, 2012. (http://www.slideshare.net/performics_us/snet-so- cial-media-Moms-summary-april-2012) • The Next Web. The top 30 stats you need to know when marketing to women. January 2012. (http://thenextweb.com/socialmedia/2012/01/24/the-top-30-stats-you- need-to-know-when-marketing-to-women/) 17. © 2013 PunchTab | www.PunchTab.com
  • 18. PTPT Interested in learning how loyalty programs can help your brand? sales@punchtab.com 18. © 2013 PunchTab | www.PunchTab.com