Posts Tagged ‘symphonyiri’

Brewing Up Serious Coffee Sales with Social Marketing

Wednesday, June 6th, 2012

Measurement company Symphony IRI published another case study on one of our BzzCampaigns.  (They did this one last year.) This time around, they featured our Green Mountain Coffee project.

This is an excellent example of how targeting potential advocates based on a combination of actual purchase behaviors, demographics and social influence scoring is far more effective than targeting with demographics or social scoring alone.  This product matters to these connected consumers and they generated a tremendous amount of personal advocacy for it with friends in person and online all over the social web.

How much? Enough to drive a 14.5% sales lift in the markets measured by SymphonyIRI’s matched market analysis. I’ll drink to that.

Here are the details of the case study:

The Challenge

Green Mountain Coffee, a leader in specialty coffee and Keurig K-Cup packs, is known for award-winning coffees, innovative brewing technologies, and socially responsible business practices. The brand’s line of Fair Trade certified coffees reflect this commitment – they are great tasting coffees that people can feel good about. Unfortunately, many consumers didn’t fully understand the meaning of Fair Trade certification and how good these coffees can taste.

Since personal recommendations are an important purchase driver for food and beverage products, the brand recognized that a social marketing program can expose the product to avid coffee drinkers so they can share their experiences with others in person and online across social media networks.

The brand team invested in a BzzAgent social marketing campaign as part of its integrated media plan to increase awareness and drive sales. With BzzAgent, Green Mountain was able to identify 10,000 coffee drinkers with the following characteristics:

  • Active history of advocacy for coffee
  • Shop at retail for bagged coffee and K-Cup portion packs
  • Average age of 38
  • High household incomes
  • Live in areas where the product is readily available

Each of these coffee lovers received a Green Mountain BzzKit with an educational guide about the product and Fair Trade certification, full-sized samples of several flavors, and a pack of discount coupons for distributing to others. They also received guided activities online to encourage product discussions with friends and followers.

Product sales were a key success criteria for the brand and a proven analytics model was required to measure results. BzzAgent and SymphonyIRI Group collaborated to measure the sales impact of the campaign.

The SymphonyIRI Approach

SymphonyIRI conducted a Matched Market Analysis to isolate the campaign impact relative to other media. In collaboration with BzzAgent and the client team, SymphonyIRI selected analysis and control markets. The analysis markets included BzzCampaign participants and the brand’s other national media, while the control markets did not include a BzzAgent presence. By comparing analysis versus control and adjusting for the effects of non-test variables, SymphonyIRI could determine the relative sales impact of the program.

The Results

The participants in the advocacy program embraced the Fair Trade message. The number of advocates with an above average understanding of Fair Trade certification increased 61 percentage points as a result of the campaign. Advocates shared the message with more than 1.8 million coffee lovers through online and offline conversations.

SymphonyIRI determined that these conversations were very influential in informing purchase decisions. The Matched Market Analysis determined that the social marketing campaign generated a sales lift of 14.5% with a positive ROI.

Client Benefits

The brand used the results from the Matched Market Analysis to prove the value of its investment in social marketing and that peer recommendations effectively increased sales. Additionally, the brand understands the strength of the medium relative to its other marketing tactics and has a clearer view into how to build and execute a media plan to maximizes sales results.

 

 

 

Social Marketing Delivers a 6.7% Lift in Sales

Monday, April 2nd, 2012

Here’s more proof that social marketing is a big sales driver for CPG brands. You may remember earlier this year we studied the ROI results of our social marketing programs measured with market mix modeling (MMM) analysis. This showed that social returns an average of $1.50 for every $1 spent.

This time around, we partnered with SymphonyIRI to study the lift in sales volume CPGs are seeing with social marketing. We analyzed the results of the social marketing programs we measured using their matched market analysis, and the findings were just as impressive.  When social is used to build widespread consumer advocacy, is generates an average sales lift of 6.7% for CPG brands.  Results varied slightly by product category. Food products had an average lift of 6.3%, while personal care products jumped an average of 7.2%. (Read the release)

If you are not familiar, match market analysis is proven media measurement practices used by brands to determine the retail sales lift of all types of marketing initiatives.

When applied to social marketing, the principles are the same.  Two similar geographic markets are selected, a social marketing program is exposed to people on one of the markets, and SymphonyIRI applies statistical techniques to match store-to-store sales data that isolates the sales impact of the program.  Various adjustments are made for variables like price and promotion occurring in the markets at that time.  Even though social sharing occurs nationally, our research shows there is a sufficient concentration of people in the individual’s local area to make the results statistically valid.

That means you have sales data you can plan a strategy around.  Try building a strategy around a report of “likes” and “re-tweets”.

Check out the press announcement for more details, and read about our approach to measurement in this ebook.