Forbes Insights+Turn | New Rules of Engagement: Measuring the Power of Social Currency 2012

the new RULES
OF ENGAGEMENT
Measuring the power of social currency

in association with:

Contents
Foreword....................................................................................................................................................................2

Introduction...............................................................................................................................................................3

Key Findings............................................................................................................................................................ 4

Spotlight on the Marketer................................................................................................................................... 5

Disconnects in Social Media Usage Measurement.....................................................................................7

Constellation Brands: The Smooth and Humorous.................................................................................. 9

Spotlight on Consumers.....................................................................................................................................12

Marketers and Consumers: Similarities and Differences........................................................................14

ShopAtHome.com: Improving a Winning Formula..................................................................................16

Getting Personal: A Matter of Definition—or Expectations?................................................................ 17

Brand Proactivity: When It’s More Than Word of Mouth......................................................................18

Boyden and the Horse-to-Water Strategy for Social Media.................................................................19

Gund’s Approach to Social Media—How to Teach an Old Dog New Tricks...................................21

In the Eye of the Beholder: Is the Ad Engaging?.....................................................................................22

Conclusion..............................................................................................................................................................23

Methodology.........................................................................................................................................................24

FOREWoRD
For marketers, truly understanding your customer is what drives success. But for too long, this
has been an inexact science, reliant on after-the-fact analysis, qualitative conversations and
intuition of the marketer.
Turn partnered with Forbes Insights to measure the discon-
nect between brands and consumers. And after surveying
250 marketing executives and over 2,000 consumers, it’s
clear that what marketers consider to be high-value engage-
ment is not always thought of in the same way by consumers.
For example, only 15% of consumers who share an ad feel We change the way you make decisions. Turn has
invested in a brand, while 49% of marketing executives mea- the technology to deliver real-time data insights,
sure sharing ads and other online content as highly influential. giving you control at the moment of decision
Yet there is no reason for this disconnect. Every day con- to make smarter, more informed decisions that
sumers are taking actions that can be observed, analyzed and translate into amazing campaign performance.
acted on. They are telling marketers what they want. The We help brands explore the big picture—and
truth is out there and it’s in the data—and to leverage it you take advantage of it.
just need the right technology.
At Turn, we engineer software that enables data-driven
decision making across multiple channels by providing mar-
keters with a single, holistic, real-time view of their marketing
programs.
With Turn, you can stop guessing and truly know which
audiences are engaging with you and why.
And that does change everything.

BILL DEMAS
CEO, Turn

2 | THE NEW RULES OF ENGAGEMENT: MEASURING THE POWER OF SOCIAL CURRENCY

INTRODUCTION
What engages consumers? What catches their attention and keeps it? What’s riveting? What
sends them scuttling elsewhere? And, perhaps most important, how can marketers measure
these consumer behaviors and act on them? It’s the age-old concern for marketers.
The advance of social media has added layers of complexity to The challenge for many companies will be opening them-
this challenge. It has given companies more areas of engage- selves up to new methods. To be sure, there are strong signs
ment to consider. “Likes.” Tweets. Views. Comments. Shares. that companies are seeking new ways to determine how best
Reviews. Blog posts. A dizzying array of promotions. Do they to reach the public with the sort of content that leaves posi-
all represent engagement, or just passing interest? Or is passing tive and lasting impressions. It is the quality of content and
interest the new engagement? And is this sort of activity some- ability to pinpoint the right place for it that is the inevitable
thing that should be ignored if it results in the growth of loyal, Holy Grail for marketers. And marketers now seem to realize
active brand communities and a steady lift in awareness and that their best investment is in resources that can ensure they
positive perception? After all, it’s all in the interest of the brand. make the best possible decisions.
“Everyone defines engagement differently,” says Joe Beck y Saeg er, for mer
Ciardullo, chief marketing officer for mobile phone accesso- Charles Schwab CMO and a
“Marketers are not on the
ries retailer Cellairis. “It’s a kind of vacuum that people don’t Turn advisor and board mem-
know how to really measure and don’t really know how to ber, notes that over the past 12 same page with their
monetize. It’s changing every day. What was in today is out to 18 months, she’s noticed that customers when it comes
tomorrow. So metrics that we’re used to, the ROIs of the past, marketers have really started
to the significance of
the tools don’t always apply. I would say particularly in social to get serious about wrapping
media and engagement, we’re almost pioneers, so we are forced their heads around what kind social media activities.
to think different.” of technology can help them. How can CMOs accurately
Equally important is how companies are determining where “They’re saying, ‘I’m on the
measure something they
to spend their advertising dollars and how they define measur- hook for return on investment,
ing success. The issue of measurement has grown in importance I’m going to do whatever I need don’t fully understand?”
as marketers face a growing array of advertising possibilities to do to take advantage of the —PAUL ALFIERI
and a widening number of ways to generate metrics. What technology that will help me,’” Vice President of Marketing,
system is best for a company? What should it be measuring or says Saeger. Turn
prioritizing, and what should be secondary? What software Forbes Insights and Turn
offers the most value? wanted to get to the heart of
“Marketers are not on the same page with their customers major issues involving engagement and its measurement.
when it comes to the significance of social media activities,” says Through surveys of senior marketing executives and consumers,
Paul Alfieri, vice president of marketing at Turn, a marketing as well as in-depth interviews with CMOs and leading experts
technology company. “How can CMOs accurately measure on marketing trends, the research sought to better understand
something they don’t fully understand?” how consumers engage with brands and how marketers define
Many companies may not be keeping pace with current and measure that engagement. The aim of the project was to
improvements in software that can analyze consumer engage- help marketers achieve higher levels of performance, particu-
ment and predict future behavior, suggests a survey conducted larly on the measurement end.
by Forbes Insights and Turn. Indeed, most of the survey respon- The Forbes Insights/Turn study discovered that current
dents said that they were satisfied with their current metrics, marketers’ use of metrics offers ample room for improvement
although the systems for generating them were designed a few in their understanding of consumer behavior, development and
years ago. With the rapidly increasing usage of social media placement of content, and media buying tactics. The report
and an expanding number of ways for companies to reach out also looks at consumers’ definition of engagement and online
to consumers, conditions have changed vastly. More recent practices. It finds stark differences between how marketers and
technology can evaluate a wider range of activities, provide consumers define brand engagement, further underscoring
better, more precise data on engagement and guide future the importance of precisely targeted—and measured—
media buys—all this while adapting to continued changes in engagement messaging.
social media and beyond.

Copyright © 2012 Forbes Insights | 3

Key Findings
Marketers recognize the value of engagement as a way to start and maintain conversations with consumers and build
long-term relationships. A majority of them say that they acknowledge customer feedback and communicate with
consumers via social media (Figure 1).

The majority of companies quantify consumer engagement, with more large companies (revenues over $1 billion)
saying that they use statistical analysis of marketing initiatives. Engagement metrics fall within the purview of in-house
marketers, according to the majority of the Forbes Insights/Turn survey respondents.

Lack of knowledge about available measurement technologies may be the reason companies report high rates of
satisfaction with current measurement methods.

Marketers view consumers’ proactivity via social media as more engaging then consumers do. The inflation of
“engagement” in this case has been caused by the ease of social media use and equating online followers with successful
marketing. Measurement of social media engagement is an area where CMOs often don’t know what they don’t know.

Fundamental disconnects in how marketers and consumers understand and value engagement tactics may cost
marketers great opportunities. The biggest schisms are found in approach to redemption rates, discount codes and
loyalty programs. Additionally, marketers’ attempts at personalization and customization engage few consumers. This
finding may stem from consumers’ high expectations of what true customization and personalization stands for.

Consumers identify strongly with brands, particularly younger consumers, who view their relationship with brands
as a reflection of self. And they approach and interact with them in a variety of ways, from social media to traditional
advertising. They don’t necessarily view this as engagement, however. Rather, their view of how they interact with and
relate to brands is much more holistic.

A seismic shift in the use of metrics is approaching with the younger generations of consumers. While the current
use of metrics to measure engagement seems to inflate and exaggerate the value of fast and easy social media interac-
tions, the Forbes Insights/Turn surveys show that these measurement methods are more justified when they relate to
younger consumers.


Spotlight On The Marketer
If metrics aren’t the raison d’être of marketers, then they’re not far from it.

The Forbes Insights/Turn survey found that most com-
panies quantify consumer reaction. Nearly two in three Figure 1. Marketers as Relationship Builders
marketing executives (60%) said that their businesses mea-
sured consumer engagement, while another 18% said they Maintain a brand presence on Facebook
planned to do so in the future. Less than one quarter of 80%
marketers’ firms did not provide such measurements. Reach out proactively to consumers
It is interesting to note that larger companies were
72%
more likely to use statistical analysis of marketing initia-
tives. A full 66% of organizations with at least $1 billion in Acknowledge customer feedback
revenue said they use metrics, compared with 48% of com- 61%
panies with $500 million to $999 million in revenue. This Maintain a social media presence to communicate
suggests, not surprisingly, that the degree to which metrics with customers
are used correlates to the resources a company can afford. 53%
Companies’ measurement systems are largely set in-house
(Figure 2).
Most marketers also indicated satisfaction with their
current methods for measuring engagement. But the high
rate of satisfaction may, in fact, be misleading. Metrical
analysis of engagement in all its forms, especially in the
burgeoning social media realm, is still in its early days.
Many systems focus on traditional measures of engagement
and a finite number of areas, even as new types of data
are available and new paths to engagement are unfolding
boundlessly—frequently offering deeper insights into what
forges stronger bonds with consumers and what doesn’t.
Turn’s Alfieri asks rhetorically: “Can we track all activ-
ities to a revenue goal? Are we really satisfied with 80,000
‘likes,’ for example?”


New metrics systems in the realm of big data allow Companies are satisfied with what they have now because
companies to literally address their digital media across they don’t know that there are better ways of gathering
channels, starting with whom they want to reach, and then information. Quality data management platforms can
use software platforms to identify targets and find them now do nothing less than analyze the online behavior of
wherever they are in the ecosystem. The sheer quantity a targeted audience, guide media buys across the broadest
of higher-caliber information has already transformed possible spectrum of options—video display, mobile and
marketing strategies and will lead to even more pro- social media—and provide ongoing feedback on the suc-
found change. “We have the capability today to not just cess of a campaign.
say, ‘I want to reach people who have household incomes Such a data-driven approach leads to a typological pro-
of $75,000-plus and at least $250,000 in investable assets file of people who are not currently customers but are likely
and are between the ages of 35 and 50.’ With the technol- to respond to messaging. This can be used not only to hone
ogy today, just add in behavioral data, look at what they’re that target audience but also to buy advertising across digital
doing online and ideally find people who are even more channels and continuously refine that buy to optimize the
likely to respond to the advertising that I’ve put out there, response. “To me, it’s just honing and honing and honing
whether it’s mobile or video or display or search or what- the upfront work around defining your target audience and,
ever,” says Saeger. therefore, increasing your results on the back end,” says Saeger.

FIGURE 2. mEASURING CONSUMER RELATIONSHIPS

66% 48% 79%
of companies with of companies with determine
revenues over $1 revenues under $1 successful
billion use metrics to billion use metrics to management
measure consumer measure consumer metrics
engagement engagement in-house

60% 65%
feel their current have a system or
metrics help process in place
them understand to try to connect
or quantify engagement
engagement with financial
outcomes


Disconnects In Social
Media Usage Measurement
As many companies continue to move larger portions of their marketing budgets to online
resources, they’ve also understandably become more focused on measuring the results.
But in this rapidly changing environment, a number of marketers still grapple with what and
how to measure.

The Forbes Insights/Turn surveys revealed disconnects Yet such disparities are sometimes reversed. Just 16% of
between marketers’ and consumers’ attitudes toward social senior marketers track participation in sweepstakes as a mea-
media. Marketers appear to give certain social media sure of engagement, but 41% of consumers enter contests or
activities more weight than consumer participation would sweepstakes sponsored by a brand.
merit (Figure 3). It is worth noting that younger consum- At the same time, while 55% of senior marketers use
ers’ actions match marketers’ expectations more closely. “likes” on Facebook as a metric to measure engagement, only
More than half (55%) of the surveyed executives use 30% of consumers say that “likeing” a brand makes them feel
the number of “likes” to measure social engagement, but more connected to it. Again, though, younger consumers
just 41% of consumers said they actually “like” brands— felt differently, with many more of them saying that digital
though it’s noteworthy that younger consumers’ behavior “likeing” made them feel more connected to the brand—
more closely matched executives’ approach, with 58% of indicating a seismic shift in perceptions of brand connection
those ages 18-24 and 51% of those ages 25-34 “likeing” and engagement that may be occurring as younger consum-
brands on Facebook. ers continue to come of age in a world of social media.

figure 3. Social Media Interaction

Consumers Marketing Executives
Which of the following common interaction activities Which of the following metrics do you use to track and/or
apply to you? measure social engagement?

“Like” its page on Facebook or follow on Twitter Number of “Like”s on Facebook
41% 55%
Follow the posts or tweets shared by the brand Number of Twitter followers
12% 36%
Tweet at the brand or post on its wall Number of mentions on Twitter
8% 33%

Share content the brand shares through social media like Number of shares on Facebook, LinkedIn, Digg,
Pinterest or Facebook StumbleUpon, or any other social media sites
14% 27%
Read blogs that discuss the brand Number of mentions on blogs
17% 19%
Enter contests or sweepstakes hosted by the brand Participation in sweepstakes on Facebook
41% 16%


The gap between consumers and marketers was even media goals. Take the online provider of retail discounts and
larger in attitudes toward Facebook page fans and fan other services, ShopAtHome.com. The company sees social
clubs. While one in three executives measured engage- media simply as a way to start a dialogue that can lead to par-
ment partly by counting Twitter followers, just 7% of ticipation in the loyalty programs that are at the core of its
consumers said that they felt invested in a brand when they business. It is not concerned whether response to its social
followed it on Twitter. This indicates that easy-to-execute media activities meets some definition of full engagement or
tasks do not seem like engagement to consumers, but rather not. “Channels like social media are more of an acquisition
may simply be part of the modus operandi for social interac- channel, not necessarily a conversion or a retention chan-
tion with brands (Figure 4). nel for us,” says the company’s director of online marketing,
Some companies have taken likely consumer attitudes Becki Dilworth, who added: “Our thinking is, ‘Let’s try to
toward engagement into account in adjusting their social get the consumer over to our site. Let’s try to get them using

Table 1 . SOCIAL MEDIA INTERACTION
Which of the following common interaction activities apply to you?

Total
18-24 25-34 35-44 45-54 55-64 65+
Respondents
“Like” its page on Facebook
41% 58% 51% 47% 41% 29% 20%
or follow on Twitter
Follow the posts or tweets
12% 23% 22% 13% 11% 3% 2%
shared by the brand
Tweet at the brand or post
8% 16% 14% 10% 7% 1% 2%
on its wall
Enter contests or sweepstakes
41% 42% 40% 38% 44% 45% 40%
hosted by the brand
Read blogs that discuss
17% 32% 23% 17% 14% 9% 7%
the brand

Share content the brand
shares through social media 14% 23% 22% 16% 13% 6% 5%
like Pinterest or Facebook

figure 4. social engagement

When do you feel engaged with or invested in a brand? Which of the following metrics do you use to track and/or
When I… measure social engagement?

“Like” it on Facebook Number of “Like”s on Facebook
30% 55%
Join its fan club on Facebook Number of friends or fan page members on Facebook
13% 41%
Follow it on Twitter Number of Twitter followers
7% 36%


our site that one time and then ultimately, leverage our other time to do these things are likely to be the most invested.
marketing vehicles to convert them to a repeat shopper.” But the significantly differing views of younger consum-
For companies, the lesson may be that while these activi- ers under the age of 34—those who feel more connected
ties boost messaging and brand awareness at a relatively low to a brand by “likeing” it on Facebook or following it on
cost, and are important measures of consumer interest, other Twitter—are encouraging news for companies that are spend-
activities are better signs of true engagement. Activities that ing more on social media (Table 1). Their feedback suggests
require more time and energy to execute—such as writing that engagement via simpler tasks may increase in the future,
a review and proactively recommending a brand—may be as larger numbers of younger consumers raised in social media
better indicators of engagement. Consumers that take the grow older.

Constellation Brands:
The Smooth and Humorous
The nature of digital content may vary widely from looking at that smooth or unsmooth association to get
business to business at large companies. Constellation our consumers to interact with that content and drive
Brands uses humor to advertise its Paul Masson Grande that engaging dialogue that not only associates with
Amber Brandy. This spirit is known for its smoothness. our product characteristics but also brings to life events
So Constellation, which has roughly 100 brands of that are happening at that time.”
wine, beer and spirits, has emphasized this quality in
an interactive, social media campaign. As part of the Breslin says that “social media gives you the ability to
roughly yearlong campaign, the company asks con- go back and forth with an audience in ways that didn’t
sumers via Facebook to vote exist years ago. It’s through
intermittently in light-hearted that conversation that we’re
surveys on such questions as able to forge stronger relation-
the smoothest comedian, and ships with our consumers and
“...social media gives you
during the NCAA men’s bas- keep our brand and our prod-
ketball championships last
the ability to go back and forth ucts top of mind, while also
spring, the smoothest team. with an audience in ways that identifying advocates of our
didn’t exist years ago.” brand and taking advantage
In a separate Facebook appli- of that advocacy to keep the
—KARENA BRESLIN
cation, Constellation asked its brand front and center.”
Director of Digital Media,
audience to categorize smooth
Constellation
and unsmooth images “in or- In contrast, for its Kim Craw-
der to detect how smooth ford wines, which come from
they are as an individual,” says the Marlborough region of
Karena Breslin, director of New Zealand, the company’s
digital media for the company. The overall initiative led Facebook posts have taken a different tack, featuring
to an estimated additional $500,000 in revenue over the images of natural beauty, such as pictures of vineyards
previous 12 months. and people enjoying the wines at elegant events.

“It was taking advantage of that smooth characteristic “They create a sense of place associated with the
of the brandy and bringing that to life in social media,” product,” says Breslin. “That’s proven to be heavily
says Breslin. “We had regular posts that were really engaging to our consumers.”


Proactivity Equals Engagement
Figure 5. measuring consumer Engagement
Marketers understandably consider sales as the strongest
measure of consumer engagement. Such information gives How does your organization currently measure consumer
them the clearest indication that their advertising is hit- engagement? Total Respondents (N=136)
ting its target. Nearly six in 10 executives who measure
engagement (57%) saw repeat purchases as a measure of Repeated purchase of product or service
engagement—far and away greater than any other activ- 57%
ity; the other measures marketers use include positive
Positive recommendation or review
recommendations or reviews (45%), proactive efforts to
recommend a brand (45%) and emotional relationships to 45%
a brand (42%). Proactive effort to recommend brand
Constellation Brands analyzes engagement by look-
45%
ing at the quantity of interactions relative to the number
of people who have seen a specific post. Then the pro- Emotional relationship to brand
ducer of wine, beer and spirits “leverages this data to 42%
derive insights around how community members react
Proactive effort to demonstrate positive opinion of brand
and engage with specific types of content,” says Karena
Breslin, the company’s director of digital marketing. She 41%
says that the company places high importance on personal First purchase of product or service
recommendations made via social media. About nine in 36%
10 of Constellation’s Facebook fans recommend one of its
brands to family and friends. “That’s very powerful in our Enrollment in membership or loyalty program
industry, recommendations from friends and family are a 30%
key driver in wine purchase decisions,” says Breslin (see Proactive effort to connect with brand
sidebar, page 9).
29%

The Marketing Budget Proactive effort to learn more about brand
Companies are allocating the largest portion of their mar- 28%
keting spend on social media. Forty-four percent of senior
First redemption of coupon or promotion
marketers said their organizations spent 10% to 29% of
their budgets on online brand building—more than on 17%
any other medium, including television (24%), newspapers Repeated redemption of coupons or promotions
(24%) and magazines (36%).
14%
This is likely to increase, as 44% said that they would
spend more on social media in the coming year, while We don’t have a definition
42% predicted they would boost spending on online brand 3%
building (Figure 6). These trends applied both to larger and
smaller companies, offering strong evidence that regardless
of size, firms know they will need to have a strong online
marketing presence or risk their competitive edge.

The Continued Trend Toward
Social Media
Although it has been a major force for less than a decade,
social media is now the top online tactic—and is likely
to remain so, as demonstrated by the 58% of executives
who plan to use more social media as part of their mar-
keting tactics in the coming year (Figure 7). A growing
number of companies believe that social media enables
them to keep in better touch with consumers’ preferences.
“There are a lot of benefits to social media—to having that
conversation with your consumers and community,” says


Constellation Brands’ Breslin. “You have a lot more access Underscoring this point, about one in three respon-
to real-time input and information from your consumers, dents said that they do not enable sharing of content or
and that allows us to adapt and evolve more quickly than promotions on any social media sites. Clearly, even those
we could in the past.” companies that have made a commitment to social media
are still wrestling with what to make of it.
Facebook Is Dominant Also, there is clearly significant room for growth in
In their use of social media, companies are spending more the use of mobile devices. Just 40% of marketers said that
on Facebook than on other sites—50% of executives said their companies had created a tablet app, while only 39%
that this was the case, far more than on any other resource. said that their organizations had a smartphone app. Larger
That said, 31% said that they don’t spend any money on companies were more likely to have both.
social media. This may reflect an inability for some com-
panies to recognize the social network’s importance as a
marketing tool, or simply a lack of resources to study social
media effectiveness.

Figure 6. SPEND TRENDS: ADVERTISING BUDGETS Figure 7. Online tactics
OVER THE NEXT 12 MONTHS How do you feel your use of these tactics will shift in the next
(Percentage of respondents who said more will be devoted to 12 months? (Percentage replying More) Total Respondents
the following areas) Total Respondents (N=250+) (N=250+)

Social media Social media
44% 58%
Online brand building SEO
42% 29%

Online direct response Email newsletters
36% 25%

Mobile Paid search marketing
33% 25%

Direct mail Display advertising
9% 24%

Television
9%

Radio
6%

Magazines
5%

Outdoor
4%

Newspaper
3%


Spotlight on Consumers
Consumers still gravitate toward traditional media more than any other medium. More than nine
in 10 respondents said that they watch television, while more than eight in 10 read ads in maga-
zines or newspapers. Yet digital also figures largely in consumers’ viewing habits. More than half
watch ads on online video sites. A similar percentage forward ads to friends and colleagues.

And at the same time, signs point to a seismic shift in the extension of their personalities and character, 62% and 58%,
coming years, when digital formats will largely replace the respectively, of those ages 18-24 and 25-34 said the same.
more traditional platforms among younger consumers. Likewise, younger consumers know what suits them.
The younger the consumer, the likelier he or she is to While 47% of the total respondents said that the brands they
watch and participate in social media marketing. At the same use are an accurate reflection of their character, 63% and
time, younger consumers are less likely to act on ads they 58%, respectively, in the 18-24 and 25-34 age groups said
see in print and more likely to skip television ads. Aware of the same.
these trends, particularly the cultural mindset to avoid tele- Nearly half of consumers would make a brand they care
vision commercials, companies may continue moving more about part of their image, and younger consumers were far
resources to digital and social media (Table 2). likelier to believe that a brand is an important part of their
personal identity, and want to share it with others. About half
What Resonates For Consumers of the respondents between the ages of 18 and 44 agreed that
Consumers respond most favorably to humorous or clever someone can tell a lot about a person based on the brands they
ads. But timing matters even more: they also are more use—a higher percentage than the other age groups com-
likely to engage with an ad for a product they’re already bined. A full 50% of consumers in the 18-24 age group agreed
considering purchasing. that they use brands to convey the personal image they’d like,
For younger consumers, brand matters most. While 44% compared with just 36% overall.
of total consumers consider the brands they use to be an


TABLE 2. engagement habits across age groups
Do you ever do any of the following?
(Percentage of consumers who answered Regularly or Occasionally)

Total
18-24 25-34 35-44 45-54 55-64 65+
Respondents
Watch ads or commercials
94% 92% 94% 96% 94% 95% 91%
on TV
Read an ad in a magazine
86% 80% 86% 87% 85% 88% 87%
or newspaper
Purchase something because
86% 81% 87% 86% 87% 89% 84%
you learned about it in an ad

Search for promotions or
discount codes for things 85% 87% 89% 87% 86% 82% 77%
you want

Visit a website or store
83% 84% 88% 86% 85% 84% 72%
based on an ad

Join membership
80% 71% 86% 87% 79% 77% 76%
or loyalty programs

Read email alerts or updates
on special deals from 80% 74% 82% 83% 83% 81% 73%
advertisers

Discuss particularly funny,
interesting, or resonant ads 79% 85% 85% 84% 79% 77% 68%
with friends or family

Click on an ad or video
60% 63% 68% 63% 62% 56% 48%
on a website

Skip ads using DVR 57% 61% 69% 65% 53% 48% 47%

Forward a particularly funny
or interesting ad to friends 56% 68% 71% 62% 52% 48% 37%
or colleagues

Watch ads or commercials
on YouTube or other online 53% 82% 73% 62% 47% 39% 19%
video sites


Marketers and Consumers:
Similarities and Differences
The Forbes Insights/Turn surveys have uncovered some fundamental disconnects between
marketers and consumers that serve to undermine a deeper understanding of “engage-
ment.” The two groups differ fundamentally in how they define the state of engagement with
a brand; what companies consider engaging is not considered anywhere near so by consum-
ers. But this also cuts both ways: some activities that consumers consider highly engaging are
seen as less important by marketers. This may be costing companies great opportunities to
engage consumers.

For example, less than half (45%) of senior marketing exec- that incentives represent a lesser, shorter-term form of
utives rated consumer redemption rates of promotions or engagement. The consumer becomes engaged with the
discount codes as a strong influence on their measurement brand because he or she has the possibility of receiv-
of engagement. Just one in five marketers said that their ing something he or she values. But incentives do not
organizations actively offered promotion codes or discounts. create the sort of deeper, long-range engagement that
But 85% of consumers said that they searched for promo- companies crave. “As soon as I get my promotion, my
tions or discount codes for things they wanted (Figure 9). engagement goes away,” says Chernev. “It’s low-hanging
Likewise, 44% of executives said that membership in fruit to nearer-term engagement. Consumers want incen-
loyalty programs was a strong influence on engagement tives, but managers who think long-term should know
measurement—while 80% of consumers said that they that this sort of engagement is not sustainable. They have
joined such programs. One company that clearly under- to think about how to maintain the engagement after the
stands where the consumers’ hearts are—and how to reach incentives have gone away.”
them—is ShopAtHome.com, an online provider of dis- This data underscores the ver y real differences in
count coupons and loyalty programs (see sidebar, page 16). how marketers and consumers def ine and value various
There were also wide discrepancies in the importance types of brand engagement. Engagement in and of itself
of email alerts/special deal openings, discussions/mentions has changed in recent years, as increasing amounts of
on social media sites, and views of ads or commercials on marketing activity shift online—and again, particularly,
YouTube or other online video sites. A far smaller percent- as social media becomes more integral to consumers’
age of marketers considered these activities vitally important daily lives.
to engagement than the percentage of consumers who said In some cases, what was once a special activity signify-
they took part in them. ing attachment to a brand is now considered commonplace
A lexander Cher nev, a professor of marketing at behavior. In other instances, even longstanding best prac-
Northwestern’s Kellogg School of Management, says tices do not strike the same nerve they once did.


Figure 9. Similarities and differences

Do you ever do any of the following? How strongly does each of the following influence
(Percentage of consumers who answered Regularly or Occasionally) your engagement measurement?

Search for promotions or discount codes for things you want Redemption rates of promotions or discount codes
85% 45%
Join membership or loyalty programs Membership in loyalty programs
80% 44%
Read email alerts or updates on special deals Open rates on email alerts
from advertisers or updates on special deals
80% 52%
Watch ads or commercials on YouTube or other online Views of ads or commercials on YouTube
video sites or other online video sites
53% 31%
Discuss particularly funny, interesting, or resonant ads with Discussions/mentions on
friends or family social media sites
79% 58%
Forward a particularly funny or interesting ad to friends or Forwards or shares of ads or other
colleagues content online
56% 49%

Visit a website or store based on an ad Website visits
83% 78%

Purchase something because you learned about it in an ad Purchases of products/services
86% 83%

Click on an ad or video on a website Clicks on an ad or video on a website
60% 62%


ShopatHome.com:
Improving A Winning Formula

If you build it, they will come. And if you offer them back programs, largely because it was concerned that
deals or promotions, consumers will flock to you. consumers would not understand them completely or
Consumers using the Internet, just like consumers in trust their authenticity. “Our messaging used to be
more traditional areas of retail, are always looking for very heavy on coupons because we knew that people
deals. The discount, promotion or loyalty program understood coupons,” says ShopAtHome.com Direc-
with attractive perks can tor of Online Marketing
engage them more strongly Becki Dilworth. “Cash-back
than other types of content, was very much of a second-
as the Forbes Insights/Turn ary communication.”
“Ten percent from a revenue
surveys show.
perspective is fairly significant But the company had a
But even an organization in our books. It can really hunch that it was not do-
built on this dynamic of offering everything it could to
change the bottom line.”
ing coupons and cash-back attract potential custom-
rewards, as is ShopAtHome. —becki dilworth ers. Some consumers didn’t
com, can find ways to im- Director of Online Marketing, know about the cash-back
prove its ability to engage ShopAtHome.com programs, so they couldn’t
an audience by finding new sign up for them. In its new
ways to package or promote messaging, ShopAtHome.
its products and services. com combined information
ShopAtHome.com’s main about the two—coupons
social media challenge has been drawing individuals and cash-back—more closely. It quickly found that
to its website, where it lists its offerings. The company “they’re better together,” Dilworth says.
has found that once consumers are there, they are likely
to embrace ShopAtHome.com’s model, which provides ShopAtHome.com has quickly seen positive results.
regular coupons and cash back to members. The percentage of consumers who clicked through in-
creased by roughly 10%. “For us that means we saw
Yet ShopAtHome.com was not satisfied that it was an increase in the amount of engagement that we had
drawing in enough customers. In mid-2012, it launched from users wanting to use a coupon, get cash back,
a redesign of its website and recast its messaging. Pre- or most likely, the combination of the two,” Dilworth
vious communications heavily emphasized the store says. “Ten percent from a revenue perspective is
coupons that the company awarded. ShopAtHome. fairly significant in our books. It can really change the
com was more understated about presenting its cash- bottom line.”


GETTING PERSONAL:
A MATTER OF DEFINITION—OR
EXPECTATIONS?
Among the largest gaps in company-consumer perspectives is the disparity of viewpoints on a
personal connection: 72% of marketing executives say that they have personally reached out to
customers, but just 9% of consumers say that they feel engaged or invested in a brand because
of such gestures. The personal connection has been a cornerstone of marketing strategy.

Does this discrepancy mean that consumers no longer insight from my perspective that consumers would feel direct
appreciate the personal touch and that marketers are on contact from marketing departments is needed,” Hollett says.
the wrong course? Or does it indicate that the defini- “They are touched constantly from the numerous marketing
tion of personal touch has changed? Do marketers consider activities that occur, pre-sell, sell and post-sell.”
the Facebook posting, tweet or pre-written promotion sent But Hollett adds that the very definition of person-
to thousands of people to be “reaching out”—or is it just ally reaching out is not entirely clear. “What exactly is the
an easy way for a brand to check off the box and say it is perceived desire, that marketers call them directly?”
doing so? While 35% of marketers said that their companies
Boyden global executive search’s CMO, Gray Hollett, encouraged consumers to customize products, just 15%
understands the customer perspective in the business-to- of consumers (and 24% of those ages 18-24) said they felt
business world (see sidebar, page 19). Boyden is a professional engaged or invested in a brand when they were able to
services firm whose sales depend largely on its consultants’ do so. This may be another case of differing definitions:
personal relationships with other businesses. But Hollett “customization” to a marketer may mean something as simple
believes there are many touchpoints and is intrigued about as choosing from a range of different colors; to a consumer, it
direct outreach with consumers. “It is kind of a surprising may mean something far more extensive.

Figure 10. CONSUMER FEELINGS OF ENGAGEMENT VS. MARKETER ACTIVITY

When do you feel engaged with or invested in a brand? Do you (or a member of your marketing team) ever do any of
When I… the following?

Receive a personal note from someone Reach out to customers
connected to the brand personally
9% 72%
Am able to customize items from the brand Encourage or enable customers to
to reflect my own personality customize products or services
15% 35%


BRAND PROACTIVITY:
WHEN IT’S MORE THAN WORD
OF MOUTH
A similar imbalance exists when it comes to consumer proactivity—an area highly prized by
marketers. The advent of digital media in general and social media in particular has made it eas-
ier than ever for consumers to proactively discuss, share or recommend a brand. It’s just not as
difficult as it used to be; consumers don’t have to make much of an effort—or be as committed
to a brand—to spread their feelings.
But there are also serious disconnects in how senior market- in a positive way. And if not, we’ll take a negative situa-
ers view proactive efforts by consumers and when consumers tion and make it positive, which can actually generate even
feel engaged. Indeed, 58% of marketers rated discussions/ more engagement.”
mentions on social media sites as a strong influence on their However, some marketing experts—such as Diane
engagement measures, but just 24% of consumers felt engaged Hessan, chief executive officer of Communispace, the con-
when taking part in these activities (Figure 11). One com- sumer insights agency, which manages online communities
pany that seems to have found a way to truly connect with for over 100 major brands—believe that marketers have
its consumers via social media is the teddy bear manufac- become too casual about stamping some metrics with the
turer Gund (see sidebar, page 21). “engagement” title. This may stem from being overly con-
Does it matter whether consumers feel engaged with a cerned with volume. Some organizations still equate numbers
brand? If they fall short of marketers’ level of the definition of online followers with successful marketing.
of engagement but are still proactively spreading positive “Because it’s sometimes difficult to measure real engage-
vibes, they are serving as brand ambassadors with all the ment, we have lowered the bar on what’s truly working,”
resulting benefits for the company. At that point, it may says Hessan. “If I click on a Facebook ad by mistake, that’s
be just a question of semantics—simply because marketers not engagement. If I sign up on your Facebook fan page
call it “engagement” and consumers call it something else or your company website, largely because I’m looking for
doesn’t mean it’s not still effectively achieving the goals discounts, that’s not the same as what happens when people
marketers want. Engagement by any other name may still are truly connected to your brand.”
create a desired effect. Many marketers agree on one point: They’d rather have
“Word of mouth has changed,” says Cellairis’s Joe a smaller committed following than a larger group of more
Ciardullo. “Word of mouth has become social. In the old casual fans. “I use the word social currency. How do you
days, my dad used to go to a barbershop and sit down and measure a ‘like’?” says Ciardullo. “I have different denomi-
talk for 10 minutes before he got his haircut to the six or nations of how to pay. I have a ‘like,’ I have a tweet, I have a
seven guys in the room. That was word of mouth. ‘Hey, ‘follower,’ I have an email. Somebody gives me their email
don’t go to this place to get your car fixed; they won’t do a address; Instagram, someone is posting pictures. So if that’s
good job.’ Today, that very same experience will be tweeted the currency, if those are the different types of money that
out or posted socially on Facebook in a matter of seconds. people can give me, their phone or social currency, sure,
If you have a bad experience with a customer, that could ‘likes’ are important. [But] I’d rather have a smaller, stronger
be seen by your entire base within moments. That engage- base versus this large crazy base that isn’t very active, because
ment rate is this ongoing word of mouth, so to speak. It’s that’s telling me that they may not be potential customers.”
important that our brand is being actively talked about, and
then secondarily, depending on what the topic is, hopefully


Boyden and The Horse-To-Water
Strategy For Social Media

Professional services firms serving other businesses Hollett tries to give Boyden consultants and indi-
face their own unique set of circumstances. They must vidual offices flexibility in their individual use of social
maintain a strong corporate brand but also allow their media but also creates guidelines to ensure that they are
consultants to forge their own individual brands. The acting consistently with the corporate brand. This task
latter may be equally or even more important than the is complicated by Boyden’s vast global presence—
former in certain aspects of relationships. “I think that in offices in 43 countries.
many cases, in a consultative
environment with clients, cli- “A lot of professional services
ents often don’t understand have this problem,” Hollett
the corporate brand at all, says. “You have a corporate
“I think that in many cases in
but they actually have a per- brand, and then you have
sonal relationship with the a consultative environment a regional or local brand,
person who is delivering the with clients, clients often don’t and then you have the in-
services to them,” says Gray understand the corporate brand dividual brands. Getting all
Hollett, CMO of Boyden glob- of those things to mesh is a
al executive search, a leading
at all, but they actually have a very difficult task. In a de-
executive recruiting firm. “So personal relationship with centralized organization like
that [individual] brand is very the person who is delivering Boyden, you don’t have that
strong. It’s a challenge for or- opportunity. What you have
the services to them.”
ganizations, and you see how to do is create a strategy that
service organizations over —Gray Hollett gets the associates to say,
the years have tried to get CM0, ‘Okay. That makes sense.’
beyond that challenge, how Boyden Global Executive Search We call it the horse-to-water
to deal with it, because those strategy here. Our whole ob-
billing associates often move jective is to educate the firm,
from company to company.” firm-wide, on the value of a
strong core brand in the mar-
Boyden’s recruiters place senior-level executive positions ketplace, recognizing that they [individuals] also have a
across a range of functions and industries. It’s important strong brand, and getting them all to work together. The
for consultants to maintain a strong presence in their cov- way we do that is by creating really cool things that they
erage areas—to stamp themselves as experts who can want to participate in to further their business develop-
pinpoint the type of leaders that will help Boyden’s cli- ment activities and to further their conversations with
ents grow. Individual offices in different parts of the world prospects and clients.”
may also conduct their own social media outreach and
marketing activities.


Figure 11. Proactivity

When do you feel engaged with or invested in a brand? How strongly does each of the following influence your
When I… engagement measurement?

Share an ad Forwards or shares of ads or other content online
15% 49%
Discuss an ad Discussions/mentions on social media sites
24% 58%
Reach out to someone connected with the brand Proactive effort to connect with brand
7% 29%
Sign up for special deals Subscribers to email alerts, newsletters or other loyalty
or email updates program communications
41% 63%
Convince others to use the brand Proactive effort to recommend brand
24% 45%
Discuss the brand with friends, family or other fans Proactive effort to demonstrate positive opinion of brand
29% 41%

Seek out the brand proactively Proactive effort to learn more about brand
29% 28%


Gund’s approach to Social Media—
How to Teach an Old Dog New Tricks

“Gund exists because our products are loved by peo- Gund has also found a way to turn social media into a
ple,” says the company’s president, Bruce Raiffe. “We source of ideas for products with audiences already built
don’t make a stuffed toy, but in. An example is a Gund
rather, make a product that character based on a real dog
they love to own, love to that lives in San Francisco, a
give—an affordable luxury. “We don’t make a stuffed toy, Pomeranian named “Boo,”
So in our dialogue with our but rather, make a product that who had 1 million friends
consumer, we support the on Facebook before the
value of our brand.”
they love to own, love company approached its
to give—an affordable luxury. owner. The number of Boo’s
The company has seen the So in our dialogue with our friends has since risen to
strongest consumer con- 5 million.
nections to campaigns that
consumer, we support the
give the public a say in nam- value of our brand.” Gund is privately held and
ing and designing particular does not share information
products, or more recently, —bruce raiffe about the financial benefit
to drum up votes for a new President, Gund of such initiatives. However,
animal in a trade magazine’s Raiffe says that his company
toy of the year contest. The does “look at financial return
company primarily uses for the efforts. And I would
Facebook, Pinterest and Twitter to promote such activi- say we definitely harvest from social media a lot more
ties, along with its own website. than we sow.”


IN THE EYE OF THE BEHOLDER:
IS THE AD ENGAGING?
Equally vital, there is a disparity on several fronts between what senior marketers and consum-
ers consider effective advertising, particularly the importance of humor. Just 14% of marketers
said that they developed campaigns or initiatives aimed at being intentionally humorous or
irreverent. But 67% of consumers said that a funny ad made them take notice (Figure 12).

The Kellogg School’s Alexander Chernov says that this Communispace’s Hessan suggests people laugh often
gap may stem in part from the daunting task of creating because an advertisement means something to them. In
content that is truly humorous. “It’s not that ad agencies some cases, they may have faced a similar situation, can
lack an awareness that humor is effective,” Chernov says. imagine the possibility or would like to. “I think that
“Humor is personal, easy to judge, which may make the humor works because it can be a surrogate for relevance,”
ad agencies reluctant to use it. A humorous campaign that‘s says Hessan. “People laugh when something resonates with
not well done can backfire. The quality of the content is them. They’ll say, ‘You know, that brand really, really
the key.” understands me. I just looked at that ad, and that was funny
A recent series of online videos featuring the HBO to me.’”
comedy series character Kenny Powers, as played by actor On the other hand, marketers overestimated the impact
Danny McBride, was an Internet sensation. Korean auto of ads designed to stir emotions—28% of them said that
manufacturer Kia earned some chuckles with a commercial they had created campaigns of this type, but only 19% of
that featured hamsters. Dos Equis continues to draw notice consumers said emotionally resonant ads grabbed their
with its Most Interesting Man series. attention.

figure 12. In the Eye of the Beholder

What makes you notice or pay attention to an advertisement? Do you or your marketing team ever develop marketing
campaigns or initiatives aimed at doing any of the following?

It’s funny Intentionally humorous or irreverent
67% 14%
I find it moving or emotionally resonant Intended to be moving or emotionally resonant
19% 28%
My friends or family have forwarded it to me Intentionally for viral purposes
19% 14%

It’s thought provoking Intended to be thought provoking
33% 37%
It’s well designed or particularly eye-catching Intended to be well designed or particularly eye catching
50% 49%


CONCLUSION
Faced with an increasing number of options, in the ongoing competition for consumers’ attention,
marketers will depend increasingly on their ability to statistically understand individual behavior
and predict where they will get the most value for their media spend. Newer systems represent
a major improvement over their predecessors, and that trend will undoubtedly continue, if only
to keep pace with companies’ needs and the continued migration of advertising to the Internet.

In the world of big data, marketers now can get closer to the respondents in the marketing executives survey said
truth of how consumers are engaging with brands. Metrics that they were satisfied with their current systems for
will offer marketers a deeper knowledge of the emerg- generating metrics. The challenge for companies who
ing power of social media. For example, they will help create this improved software will be to demonstrate its
companies determine how they may make the best use of effectiveness.
Facebook, which remains the site of choice for consumers Better use of such technologies will allow companies
to engage with brands. At the same time, they will also offer to see more eye-to-eye with consumers, as the Forbes
insights across a wide range of channels, including video Insights/Turn surveys revealed some areas where mar-
and display advertising. This will give companies improved keters’ programs seem to diverge from what consumers
control of their campaigns. The survey results suggest that are looking for. Among the areas that may benefit from
marketers need a higher vantage point—a dashboard to see more effective use of measurement are the value that
how all the touchpoints contribute to growing a brand or companies place on the more mechanical aspects of inter-
driving to purchase. As we move into a world where big action—Facebook “likes” and content sharing—versus
data is the norm, platforms that take advantage of all avail- the value placed on discounts and promotions, and the
able data and can measure and promote engagement across opportunity for consumers to participate in such areas as
channels in a unified way will deliver substantial value to product design.
brands wise enough to invest in them. Proper measurement will lead to understanding and, as
Yet many companies are not aware of the capabilities a result, more effective monetizing of engagement.
of the newer technology. That may be why 60% of the


Methodology

Forbes Insights conducted separate surveys of 250 marketing executives and 2,000 consumers. More than 99% of
the executives were U.S.-based. Nearly two in three were from companies with revenues of at least $1 billion, and one
in four of them from companies with at least $10 billion in revenue. Nearly nine in 10 companies said their firms had at
least 2,000 employees. The consumer survey polled 2,000 U.S.–based individuals, age 18 and up, projectable across
U.S. income, age and other demographics.

ACKNOWLEDGMENTS
Forbes Insights would like to thank the following people for contributing their thoughts for this report:

Joe Ciardullo, CMO, Cellairis
Paul Alfieri, Vice President, Marketing, Turn
Becky Saeger, Former CMO and Marketing Consultant, Charles Schwab
Karena Breslin, Director of Digital Marketing, Constellation
Alexander Chernev, Professor of Marketing, Northwestern’s Kellogg School of Management
Becki Dilworth, Director of Online Marketing, ShopAtHome.com
Gray Hollett, CMO, Boyden
Diane Hessan, Chief Executive Officer, Communispace
Bruce Raiffe, President, Gund
Billie Goldman, Co-Marketing Manager, Intel

Special thanks:

S.I. Newhouse School of Public Communications, Syracuse University, for their support and partnership.


About
Forbes Insights
Forbes Insights is the strategic
research practice of Forbes Media,
publisher of Forbes magazine
and Forbes.com. Taking advantage
of a proprietary database of
senior-level executives in the
Forbes community, Forbes Insights’
research covers a wide range of
vital business issues, including:
talent management; marketing;
financial benchmarking; risk
and regulation; small/midsize
business; and more.

Bruce Rogers
Chief Insights Officer

Brenna Sniderman
Senior Director

Christiaan Rizy
Director

Kasia Moreno
Editorial Director

James Peter Rubin
Report Author

Dianne Athey
designer

60 Fifth Avenue, New York, NY 10011 | 212.366.8890 | www.forbes.com/forbesinsights

Forbes Insights+Turn | New Rules of Engagement: Measuring the Power of Social Currency 2012

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