WAM! 3 Consumer Segments That Drive Growth

With consumer spend hitting sporadic highs and lows, marketers are looking for segments of the population that show promise. And, who can blame them? There is news of consumer confidence that paints a choppy picture of consumer sentiment. But the U.S. is full of segments and sub-segments that can be drivers of success for any given brand. The entire population is made up of consumers, after all.

With consumer spend hitting sporadic highs and lows, marketers are looking for segments of the population that show promise. And, who can blame them? There is news of consumer confidence that paints a choppy picture of consumer sentiment. But the U.S. is full of segments and sub-segments that can be drivers of success for any given brand. The entire population is made up of consumers, after all.

There are three segments that all brands should take a close look at. These segments may not immediately come to mind, and companies may respond that their segmentation strategy is different from others. Even though this is true, there are three segments that all consumer brands should consider specific strategies for: women, the affluent and millennials. Or WAM, for those who like catchy acronyms.

Let’s look at the numbers. The important ones are: 85 percent, 47 percent and 34 percent.

black-women-shoppingSegment No. 1: Women

Women are the purchasing officers of the household and the chief investment officer when it comes to the majority of purchases. Many brands already have this information, but how many of them truly delve into the experiences of women in order to adjust products and the buying experiences to them?

According to Pew Research’s “The American Family Today,“ 40 percent of women with children under 18 at home say they are the main income earner in the family. Along with this comes a busy lifestyle. If they have kids and a full-time job, how much time can they really spend on shopping? At a recent conference, I heard that consumers are now saying that convenience is as important as price in deciding where to shop.

As a result, brands who cater to this can expect a loyal following. What are the priorities of a busy mom? Reasonable prices, healthy items/safety, a quick shopping experience and some understanding. How many times have you had a sleeping child in the car and needed to buy milk, detergent or anything without getting out of the car? The ones who are nodding at their screens right now are busy moms. And, there are a lot of them out there. Brands who cater to the female customer and really know her needs and challenges can expect a loyal following.

AffluentSegment No. 2: The Affluent

According to a study by Pew Research, the affluent have seven times the income than the middle income segment, and their income has grown by 47 percent in the last 30 years. This reflects upward mobility, as middle class households attain greater incomes and rise to the affluent segment. As a result, affluents have a significant amount of purchase power.

What do they buy? They are not very likely to buy only luxury brands, and just as likely as non-affluents to shop at stores like Gap and Macy’s, per the February 2016 Synchrony Financial Affluent Study. In terms of future spend, they say they intend to spend more money on experiences, rather than things, and they intend to increase their spend on travel. As a result, brands who reflect these needs may tap into this growth trend.

Millennial vacationers

Segment No. 3: Millennials

There has been a great deal of focus on millennials — they have been analyzed, debated, probed, viewed and quoted a great deal. A very great deal. A Google search on “millennial” yields about 18 million hits. That’s a lot of analysis. Well, they are a huge generation, and they are going to be coming into a good deal of discretionary income.

As they grow older, their incomes will outpace their student loan burden, and that means they will have money to spend. But their shopping habits are very different than past generations. They are all digital all the time. They are completely comfortable with digital shopping and becoming more interested in mobile payments. Social media drives a great deal of their spend, particularly for the younger millennial. According to a June 2016 Synchrony Financial Digital Study, about 75 percent of millennials say they have purchased something as a result of social media. As a result, marketers must look at this growing population and put strategies in place to attract them with digital technology and social media content.

This country is a beautiful combination of many segments and sub-segments. It is impossible to identify any one segment that will lead to success for any retailer. However, keep in mind WAM — women, affluents and millennials — as segments to watch, for future successful strategies.

Note: The views expressed in this blog are those of the blogger and not necessarily Synchrony Financial.

Putting Pinterest to Work for Your Brand

Pinterest is the new hot property. Overnight this visual curation powerhouse has generated more traffic to websites than Twitter, Google+, Linkedin and YouTube combined. Its clean and simple design, including pleasing graphics and neat organization, allows users to quickly and easily gain access to the content that matters to them. Marketers have taken notice and are asking themselves, “How can Pinterest help me form a deeper relationship with my customers and prospects?”

Pinterest is the new hot property. Overnight this visual curation powerhouse has generated more traffic to websites than Twitter, Google+, Linkedin and YouTube combined. Its clean and simple design, including pleasing graphics and neat organization, allows users to quickly and easily gain access to the content that matters to them. Not surprisingly, both unique visitors and time spent on site have steadily increased. Marketers have taken notice and are asking themselves, “How can Pinterest help me form a deeper relationship with my customers and prospects?”

The answer often starts with building a connection around a shared passion aligned to your brand, be it music, sports, travel, fashion, cars, food/cooking, interior design, gardening, technology, etc. For Real Simple magazine that meant creating more than 58 boards and 2,312 pins focused on giving followers practical, creative and inspiring ideas to make life easier, which is central to the brand’s core mission. Specific boards include “Organization Inspiration,” “Weeknight Meals,” “Spring Cleaning” and more. For more inspiration, check out the 10 most followed brands as well as some of the power users with huge followings (provided by Mashable):

10 Most Followed Brands: 1. The Perfect Palette 2. Real Simple 3. The Beauty Department 4. HGTV 5. Apartment Therapy 6. Kate Spade New York 7. Better Homes and Garden 8. Whole Foods 9. West Elm 10. Mashable.

And here are some power users with huge followings: Jane Wang, Christine Martinez, Jennifer Chong, Joy Cho, Maia McDonald, Caitlin Cawley, Mike D, Daniel Bear Hunley.

Once your brand’s Pinterest mission and vision has been determined, attention turns to growth and engagement. Leverage your existing communities to grow awareness for your Pinterest presence and stress the unique value and content that can be found there. For example, Lowe’s saw a 32 percent increase in followers to its Pinterest page after it integrated a Pinterest tab into its Facebook community. In fact, some Lowe’s boards saw as much as a 60 percent increase. Additionally, Pinterest referrals back to Lowe’s Facebook page increased 57 percent, demonstrating the importance of using each community for its inherent strengths, be it breaking news, discussions or photos. More recently commerce powerhouses Amazon and eBay have added tiny Pinterest buttons to their deck of social media sharing options on individual product pages.

Next, build on this awareness by thinking creatively and forming programs that engage and accelerate growth. Apparel brand Guess used the inherent strengths of Pinterest’s visual platform to ask consumers to create inspiration boards around four spring colors and title their boards “Guess my color inspiration.” The four “favorites,” as selected by Guess’ noted style bloggers, received a pair of color-coated denim from the Guess Spring Collection.

Other retailers such as Lands’ End created a “Pin It to Win It” contest designed to encourage consumers to pin items from the retailer’s website for a chance to win Lands’ End gift cards, while Barneys asked consumers to create a Valentine’s Day wish list using at least five items sourced from Barneys’ website. In each case the brands leveraged the strengths of Pinterest’s visual platform to engage followers by encouraging them to create their own inspiration boards associated closely with the brand and its products, thus increasing buzz, visibility and followers.

While it’s important to experiment and have fun as you grow your following, you also want to gather critical insights and learnings along the way. Treat your Pinterest promotion or program just as you would any other digital marketing program. Set up goals, objectives and appropriate key performance indicators, and be sure to communicate those metrics to all involved to properly gather learnings and the overall impact and success of the effort.

For consumer product goods brand Kotex, it was all about honoring women and leveraging the power of Pinterest to reward the women who inspired it. The program included finding 50 “inspiring” women to see what they were pinning. Based on those pins, the women were sent a virtual gift. If they pinned the virtual gift, they got a real gift in the mail based on something they pinned. The result: 100 percent of the women posted something about the gift across multiple social networks (Pinterest, Facebook, Twitter, Instagram, etc.), resulting in greater reach and visibility than was initially anticipated.

In addition, more than 2,284 interactions occurred overall and Kotex’s program generated more than 694,864 impressions around the 50 gifts. Lastly, the YouTube video summarizing the program has been viewed nearly 18,000 times, indicating the program has been a source of interest and inspiration to other brands and marketers alike.

Don’t forget to leverage Pinterest’s API to collect data, including activity, in order to build insights as well as preference and intent as expressed by your audience.

With meteoric-like growth, Pinterest now finds itself among the top 30 websites in the U.S. and shows no signs of slowing down. The social media platform not only offers brands an opportunity to curate and visually organize information for consumers in an appealing way, but it creates a community of real enthusiasts and advocates for your brand and shared topic of interest. Happy Pinning!