21M People Are Mattress Shopping. Want To Connect With Them?

The way people shop is changing and nowhere is it more evident than in the mattress business. Mattress Firm recently declared bankruptcy to get out of leases that were no longer tenable and will close as many as 700 stores before year-end. At the same time, Casper, a direct-to-consumer mattress company founded in 2014, posted over $300 million in revenue in 2017 and has plans to open hundreds of brick and mortar stores.

Over 100 mattress startups have launched and grown quickly in the past several years, replicating first movers like Tuft & Needle and Casper’s bed-in-a-box concept. They understood something was broken in the mattress business and were able to solve several customer pain points. But the industry has become incredibly crowded, and it’s time for mattress brands and retailers to figure out the next wave of mattress buying and product innovation. Nearly 21 million people plan to buy a mattress in the next six months, so the market opportunity is gigantic.

THE DISRUPTORS

Upstarts like Casper, Leesa and Purple entered a market where consumers were tired of the mattress-buying process. Advertised sale prices are often a lure to get a shopper in the store and then they face a hard sell by salespeople incentivized to unload the most expensive products. Deliveries are slow and costly and return policies are rigid or non-existent. Some consumers were stuck for 8-10 years with a mattress they don’t love.

The upstarts introduced a bed-in-a-box business model in the last five years where they developed their own mattresses and pillows. Purchases are made online, shoppers rely on genuine customer reviews, pricing is transparent and lower, shipping is free and returns are hassle-free.
Consumers were thrilled as the headaches of buying a mattress were erased. It showed in the financials as well. Many of these new players are posting tremendous growth numbers, and traditional players like Mattress Firm are scrambling. These bed-in-a-box retailers understand a fundamental need of consumers and have been quick to capitalize on that need.

Given the low barriers to entry, many new players have entered the market. Just a few years ago, there were only a handful of bed-in-a-box companies. Today that number is over 100. Each new bed-in-a-box option seems to come equipped with thousands of five-star reviews, free shipping, the best foam and a free trial. Behind the scenes, all these operations come fully equipped with an easy-to-use website and accounts for Facebook Business and Google Ads.

Unfortunately, launching your site and paying bloggers affiliate fees isn’t enough anymore. The industry has become crowded, and the large number of entrants are bidding the relevant search terms higher and higher. The initial customer pain points have been solved and are no longer differentiators. Even Mattress Firm has adopted some of the tactics of the newer players.

Casper is now branching out from its ecommerce roots by opening 200 stores to reach the 86% of consumers who aren’t comfortable buying a mattress online.

NEXT STEPS

So what should traditional retailers and bed-in-a-box brands rely on to engage and convert 21 million people who are being hit from every angle?

The key to winning customers in this type of business , where purchases are made as seldom as once a decade is having a fundamental understanding of who these consumers are, what they want, when they want it and WHY. What types of insights drive engagement? There are many questions to answer:

1. Why are they buying a mattress?

  • Discomfort sleeping?
  • Are they moving?
  • Buying a house/condo?

2. What’s their plan?

  • Where and when did they buy their last mattress?
  • Where do they plan to purchase their next mattress?
  • What influences their decisions?

3. How should you engage with them?

  • Do they care that you’re environmentally friendly or that your products are priced fairly?
  • Is it more important that your mattress is innovative or durable?
  • How can you create an emotional connection with your brand?

Combining these insights will create a holistic view of your customers and prospects and lead to a better understanding of the best strategy, messaging, creative and channels to engage and convert more of these customers than your competitors.

The final piece of the puzzle is making sure all the information is fresh. There is nothing worse than wasting money trying to engage someone who already purchased their mattress and has no intention of returning it. Mattress shoppers are in market for a short period of time, and their preferences change often. Marketers need to understand these dynamics and be able to monitor changes quickly, so a strategy can be optimized as consumers change their preferences.

If you’re an online or brick and mortar mattress or furniture retailer, the only way to keep your brand from losing to the newest disruptor is by having a deep consumer understanding of who is in market, why they’re in market, where they shop, why they shop there and how you should engage with them. This deep consumer understanding also helps establish a long-term emotional bond for customer retention and loyalty.

Want to see Resonate’s consumer insights in action? We’d be happy to show you more.

Learn more about creating loyalty in Resonate’s Marketers’ Guide: How Deep Consumer Insights Improve Loyalty Program Performance.

Convert Your Online Shopping Cart Abandoners To Lifelong Customers

Imagine this: Your target consumer is browsing your website in an airport lounge. She finds products she likes and ADDS them to her shopping cart. Then, her flight is called and, now in a rush, she leaves the site and forgets to complete her shopping. Abandoned once again!

Does this sound familiar?

Online retail marketers are consistently challenged with online shopping cart abandoners.  Nearly 80% of online shoppers abandon their virtual carts, according to Statista.

Resonateʻs consumer intelligence platform solves this problem for marketers through dynamic person-level insights that provide a deep understanding of consumers to turn shopping cart abandoners to returning customers.

There are two easy steps in the Resonate Platform for converting shopping cart abandoners. Let’s walk through them by looking at a hypothetical online Retailer A, which has a persona group named “Jenna.” Using the Resonate Platform, Retailer A can determine the percentage of “Jennas” who are shopping cart abandoners and uncover insights that will enable them to connect with non-converting Jennas.

Step 1: Determine the Percentage of Shopping Cart Abandoners

With the Resonate Platform, marketers can tag their digital properties, including landing pages and conversion pages to run analyses. In this case, Retailer A focuses on the relationship between its tagged home page and purchase page to run an analysis.

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After running the analysis, Retailer A switches to the Measurement tab at the top of the screen and selects RealSegments from the drop-down menu.

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Then they are prompted to add their segments to their analysis and check the boxes next to the segments they want to include—in this case Jenna. They then click on the Add Selected button to add the segment to their analysis.

The percentage of shopping cart abandoners can be determined by subtracting the composition of those who landed on the home page from the composition of those who visited the purchase page. For Retailer A, 15% of their target persona “Jenna” does not convert on their purchase page.

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With this insight, they can dive into the profiles of these consumers to understand why they don’t convert.

Step 2: Create an Audience of Shopping Cart Abandoners

The next step is to navigate to the Audience Builder to create an audience of Retailer A’s Jenna segment.

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Under the My Tags tab, they find their Home Page and Purchase Page tags and add both to the audience definition.

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The default audience definition will incorrectly be “people who visited the home page AND the purchase page.” They actually need to update the audience logic to create the audience of non-converting Jennas. So, they click on the OR next to the Purchase Page tag and select Exclude OR so the definition reads as “people who visited the home page but did not visit the purchase page.”

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They click Add to Analysis, then click Run Analysis. This brings up Resonate’s curated reports, which help better understand the Human Element of these consumers and why they didn’t convert. For instance, in the Personal Values Report, they learn that this audience values pleasure over safety and tradition. New creative focused on themes of enjoying life’s pleasures will be more successful in converting them.

View a short video to see what Retailer A uncovers about their non-converting Jenna persona.

Want some help figuring out your shopping cart abandoners? Contact us today.

The Who, What, Where and Why of Amazon Apparel Shoppers

Did you know that 20.5 million people are buying apparel from Amazon’s  Essentials, the online giant’s clothing brand. It’s not surprising given that 44% of them say they choose where to shop  based on convenience. So what else do we know about Amazon’s apparel shoppers?

View the infographic below to learn more about these consumers. Want to learn more about Resonate’s insights on today’s consumers? Let us give you a quick demo.

Apparel Infographic

Is It Time to Say “Good-bye” to the Soccer Mom?

How many times have you cringed at a marketing or ad proposal that targets “moms who want to delight their children”? Or can there possibly be one more article on how to market to “today’s millennial”?

In marketing and advertising, personas help us define who we’re selling to and in turn, guide us in creating the right kind of messaging to reach our target audiences. But many personas are based on a handful of vague attributes like age and marital status. “Soccer mom” emerged during the 1996 presidential election when Bill Clinton was accused by his opponent, Bob Dole, of targeting busy moms who cart their children to their sports activities. But personas like this don’t really help us understand and connect with consumers on a deeper level.

It’s time to throw out personas we’ve been using for the last 20 years that are simply based on vague demographics like gender and number of children, and start fresh with personas that are more detailed, accurate and paint a more complete picture of the consumer.

OUT WITH THE OLD PERSONA

Soccer-Mom-Blog-mini-InfographicWe’ve all been guilty of using generational personas. The whole idea that people born within a certain date range could have all of the same traits is a fairly new thing, perpetrated by advertising, marketing and media.

We often think of millennials as being uber tech savvy and loyal sharing economy consumers. We label baby boomers as being leery of online shopping and loyal consumers of traditional media. We think of Generation X, once referred to as “slackers,” as being heavily focused on finances as they juggle children headed to college and aging parents. And finally, there’s generation z, who has completely grown up with technology and is heavily guided by online influencers.

The danger in creating messages geared to a whole generation is that you ignore people in this same age bracket who don’t have the same traits. For example, the common misperception about millennials is that they’re all single, young, unmarried and only rent apartments. But this misses a whole segment of people who fit in this same generation but are actually married with children and own a home.

A consumer insights platform can serve as an important tool for agencies in developing a deeper understanding of their client’s customers. Resonate distills what we call the Human Element. This is a holistic understanding of a person that starts with what makes us the most human—our values and motivations.

Personas are brought to life with the Resonate Human Element. It helps agencies provide dimension to their personas and ensure engagement that delivers performance for clients. For example, let’s look at the person who buys North Face products, which are geared to “athletes and the modern-day explorer,” according to the company’s website. We can assume that the North Face consumer’s top hobbies are hiking, camping and other outdoorsy activity. But Resonate’s dynamic insights paint a different picture. This segment actually spends their free time trading stocks, visiting spas and resorts and going to the movies. And they’re only 12% more likely than the overall U.S. population to spend their time hiking and camping. So when you’re developing messaging for a brand that sells outdoor active gear, think twice about turning to the traditional “hiker” persona—these folks are more indoorsy than outdoorsy.

Now let’s look at the working mom. You might assume her personal decisions, including working outside of the home, are driven by a desire to prove her competence and skills and getting recognition from peers. But Resonate’s consumer insights show working moms care even less about those attributes than the average U.S. consumer. Their everyday decisions are actually driven by living an exciting life and creativity.

BETTER PERSONAS LEAD TO BETTER RESULTS

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Modern personas are about connecting with consumers in more meaningful ways. Connecting with people starts with understanding them at a personal level. Creating more accurate personas based on these actual person-level insights brings tremendous value to agencies in a number of ways:

  • RELEVANT OUTREACH: With more detailed and accurate personas, you can develop more targeted messaging that resonates with your client’s target audiences. Agencies using the Resonate Platform have already seen significant reduction in CPA costs.
  • STRONG CLIENT PITCHES: Imagine pitching your client with a completely new take on their personas. Show them that their existing personas can be enriched and expanded based on continuously updated and more accurate insights. Plus, the time spent doing research for client pitches drops from weeks to hours using the Resonate Platform.
  • BETTER OUTCOMES: Taking a more personalized approach to target audiences rather than a broad brush based only on a few attributes will help you create unbreakable relationships between your clients and their customers. Agencies are seeing a 32% increase in return on advertising spend (ROAS) compared to alternative data sources.
  • EXPANDED STRATEGY AND BRANDING: When you know your client and what makes their customers tick, you can give better advice about everything from media strategy and creative to product packaging and its charitable mission.

Agencies are competing against more players like consulting firms and smaller, more nimble shops and dealing with major industry shifts like new pay structures and more privacy regulations. Being able to offer clients a new view of personas can be the key differentiator.

THE WAY TO ACHIEVE MORE ACCURATE PERSONAS

Resonate’s easy-to-use SaaS platform provides a unified view of the consumer. It’s continuously updated, so personas evolve to adapt to peoples’ dynamic lives.

With this level of accuracy and timeliness, agencies can build personas that consist of real-time attributes, rather than static demographics. The Resonate Platform also helps provide insights into the several layers that make up a human, from the top actions they take every day to their psychological drivers.

So yes, it’s not surprising that a working mom buys most of her groceries online to save time and prefers retailers with loyalty programs. But there’s a lot more to her shopping behaviors. For example, they’re also 32% more likely than the average consumer to shop online and then pick up in store. And they’re big Black Friday shoppers but stay away from Cyber Monday and Amazon’s Prime Day.

There are several layers to humans, making it vital to tap into the Human Element to help frame more relevant personas. So can we once and for all stop with the “soccer mom”? She’s moved on and we should too.

Want to wow your clients at the next pitch meeting with a better understanding of their actual personas? Let us show you how.

Your Campaign Can Influence Voter Behavior by 30%. Here’s How.

In December 2017, Democratic candidate for Senate, Doug Jones, implemented a revolutionary targeting tactic that influenced the online behavior of tens of thousands of voters a week before the election.

During the lead up to the election, Resonate’s data science team identified 250k voters who predominately engaged with news and reporting from conservative sources. Collectively, the constellation of sites and publishers comprising this conservative media bubble proved to be a formidable shield, and prevented the Jones campaign from courting the non-traditional voters necessary to win in too-close-to-call elections.

That reality changed when the Jones campaign took action and leveraged Resonate data to infiltrate the conservative media bubble and deliver a message to voters that was otherwise completely absent from their digital lives. These voters were served a pro-Jones video in the week leading up to Election Day. Amongst the 80,000 video engagers, we observed a 30% increase in liberal news browsing relative to untargeted voters inside the media bubble.

Fast forward – we’re 4 weeks out from the midterms and Resonate data scientists have identified targetable media bubbles (conservative and liberal) in districts and states throughout the country. This is voter targeting 2.0. Launch a sophisticated targeting campaign with Resonate that puts your messaging right in front of these voters. Impact the recommendation algorithms of just 2% of voters and you can drastically influence the actions they take now and on November 6.

Let’s take a look at some real life examples of digital media bubbles in battleground Ohio. Specifically, we’ll look for voters trapped in these bubbles who are sympathetic to the opposition based on relevant insights in the Resonate platform.

Ohio Conservative Media Bubble
Full audience size: 1.9M online adults

  • Identify as Democrat: 19% (361,000)
  • Support raising the minimum wage: 37% (703,000)
  • Voted for Clinton: 19% (361,000)

Ohio Liberal Media Bubble
Full audience size: 1.2M online adults

  • Identify as Republican: 26% (312,000)
  • Oppose Obamacare: 39% (468,000)
  • Voted for Trump: 25% (300,000)

The above audiences identified, numbering in the hundreds of thousands, are receiving the majority of their election-related news from partisan sources that dominate their feeds. A sophisticated digital campaign that moves a small percentage of these voters could be a major difference maker in races throughout Ohio and other key states and districts this cycle.

Are you ready to incorporate this strategy into your voter targeting efforts and begin driving real, impactful changes? Contact our Campaign Hotline today. Our models are pre-built, dynamically updated, and ready to launch immediately.

CONTACT CAMPAIGN HOTLINE

Your Plan for Conquesting Amazon’s 166M Customers

Merriam-Webster defines a “frenemy” as “one who pretends to be a friend but is actually an enemy.”  It may sound like something out of the movie, “Mean Girls,” but really it emerged in the 1950s to describe the complicated U.S.-Russia relationship.

Many retailers and apparel brands describe their relationship with Amazon on frenemy terms. For any B2C company, the adversarial relationship with Amazon is understandable—the online giant has been disrupting the retail industry for the last two decades. But to be fair, Amazon has also allowed brands to use them as another sales channel by creating branded stores within their ecosystem. Brands are stuck between loving the revenue that comes from selling through Amazon’s platform and hating the fact that Amazon is contributing to a reduction of foot traffic in their brick and mortar locations, as well as shrinking revenue per square foot.

The question then becomes: How do I conquest Amazon’s customers without cannibalizing the people who are buying my products on Amazon? The answer: Understand Amazon’s customers as well as they do.

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Snapshot of 20.5 million Amazon Essentials apparel customers.

Amazon sits on a treasure trove of consumer data that helps them retain customers by staying relevant. Nearly 166 million people have shopped on Amazon within the last six months, and 105.4 million of them are Prime members. Nearly 10 million people are Subscribe and Save users (2.5 million of which don’t have Prime); 9 million are Amazon Pantry users (2.3 million of which don’t have Prime); and there are 2.3 million Amazon Fresh users (900k of which don’t have Prime).

Amazon knows what products and brands people are buying on the site. Any brand that plans to go after Amazon’s customers without stealing customers from their own Amazon store should also know what products and brands people are buying from Amazon.

For example, let’s look at people who buy Amazon Essentials apparel—Amazon’s clothing brand. If you knew who was buying Amazon Essentials apparel and understood why they chose to buy this brand, you could create a strategy for how to conquest these consumers. By conquesting the people buying this apparel and not the people buying your brand’s products, you can ensure that you’re acquiring new customers and people already buying your products. With the right information, you can determine how to connect with these consumers on an emotional level and give them the offer that’s most likely to get them to engage and convert.

In looking more closely at people buying Amazon Essentials apparel, you’d expect bargain-basement shoppers who buy solely based on price. The data paints a different picture: They’re busy professionals who value convenience and saving time and enjoy wearing luxury apparel. These shoppers are predominantly women with children and 29% of them have an annual income above $100k. Unsurprisingly these professionals like directing people, being in charge and maintaining a good public image. They also want to be seen as an individual. If you’re looking to find them in the morning, they’re reading the New York Times. In the evenings, they’re watching The Late Show with Stephen Colbert and spending the rest of their free time on Instagram.

Want to learn more about Amazon’s customers? Or is there another competitor whose customers you’d like to conquest? Reach out for a demo of how our insights can help.

Learn how you can woo customers from Amazon and other retailers this holiday season. Check out our new Holiday Guide: 3 Trends Marketers Need to Know This Season.

Get to Know 37M Organic Food Shoppers

Do you really know who your best consumer segments are? We do! Imagine having incredibly deep insights on who’s purchasing your products in various channels and why. This is what Resonate is doing at massive scale for our CPG clients.

One frustration I often hear from fast-moving consumer goods companies is the lack of easily accessible information and insights on WHY consumers do what they do. Most brands have plenty of sales, distribution, market share, brand health and consumption patterns data, but not much actionable information on the Human Element – the psychographics, motivations, daily habits and values on the people within their most important segments.

Companies that leverage relevant and actionable Human Element insights are 23x more likely to acquire new consumers and 6x more likely to gain new ones, according to McKinsey.

The best way to achieve similar results is to have the best consumer-centric insights at your fingertips. This empowers brands to create content and creative that makes a difference in consumers’ lives and begins to build a lasting and deeper relationship with their products and company.

Let’s look at some of the insights in Resonate’s consumer insights platform for guidance on the ever-changing organic consumer. The Resonate Platform has insights on 37 million people who buy organic food.

At a high level, we start to see an interesting picture of this consumer:

  • About half have kids, and over 60% are married
  • They buy food based on nutrition and incorporate fitness into their daily routine
  • They also reward themselves by visiting spas and enjoying art and music

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By looking at their demographics in more detail, we see that 44% of organic consumers are between the age of 25 and 44. Diving deeper into these 16.4 million consumers reveals unique insights that help drive more meaningful segment level insights, ultimately leading to higher engagement, loyalty, consumer acquisition and sales.

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One of the many unique insights revealed was that these consumers are significantly less likely to purchase based on price. This insight could have a significant impact on the brand’s trade strategy and save the company millions in unneeded price promotion.

Deeper Human Element insights are available to help organizations move beyond sales data or static custom research to a dynamic world of real-time consumer insights that help define the WHY behind consumer actions and dramatically increase engagement.

Want to learn deep insights on several other consumer segments? Check out our new State of the Consumer Report Q4 2018.

Ready to get started? Reach out for a demo.

Why Insurance Marketers Need to Connect with Smart Home Consumers

How did we survive before Fitbit, Alexa and Nest?

In just a few short years, connected devices and smart home products have moved from pipe dream to mainstream. It’s an incredible opportunity for the property and casualty insurance industry as data from connected devices can have a profound effect on everything from new insurance offerings to improved risk assessment. But only if insurance companies can reach current and future smart device consumers.

An analysis by McKinsey & Company reveals a 31% compound annual growth rate in household penetration, and Resonate has insights on 43.4 million smart device owners in the U.S. today. This includes people who own connected thermostats, lighting, moisture/flood detection devices and home security systems.The implications of connected homes for property and casualty insurance marketers is game-changing. According to Capgemini’s 2018 Insurance Outlook, “early adopters of connected devices in the P&C insurance industry have a compelling value proposition to demonstrate that data from connected devices can be leveraged to grow new business, improve risk assessment and proactively engage with customers in loss mitigation.” In other words, if a policyholder and their insurance company know when the hot water heater is about to fail and fix it before there’s a problem, they both win.

So how does an insurance marketer identify those smart device owners, understand their current insurance situation and what’s important to them, and then reach them with a compelling message that will drive leads to their agent network or online application? Let’s look at consumer insights within the Resonate Platform that reveal the demographics and daily lifestyles of smart device owners. Our insights also reveal their personal values, which help marketers understand the “why” behind their everyday decisions.

At a high level, most smart device owners:

  • Are married, affluent, college-educated men
  • Hold personal values that lean toward creativity, excitement and enjoying life’s pleasures
  • Lead healthy lifestyles based on their exercise and nutrition habits (good life insurance prospects, too!)

Insurance Smart Device platform

Drilling deeper into smart device owners and their relationship with property insurance providers, they’re 42% more likely than overall consumers to switch insurance providers in the next 3-12 months. The current top three property insurance providers for smart home device owners are Liberty Mutual, Allstate and State Farm. Liberty Mutual policyholders are 53% more likely to switch providers in the next three months. As a Liberty Mutual marketer, what could you do next?

  1. Protect Your Base: Drilling deeper into Resonate data will reveal the reasons why smart device owners who are current Liberty Mutual customers are thinking about switching insurance providers. Targeting this precise segment with relevant messaging on discounts, rewards and other incentives will help keep them in the fold.
  2. Poach The Competition: Delivering a compelling message to your competitors’ policy switchers tailored to their motivations and purchase drivers can help you efficiently convert this high-value audience.
  3. Find More Like Your Best Customers: Leveraging Resonate’s built-in, look-alike targeting helps you identify, target, message and measure how well you’re reaching people who share the same attributes as your current loyal smart home customers.

These are just a few of the hundreds of traits that Resonate captures for the financial services and insurance industry, refreshed daily. Learn about the deep consumer insights we reveal for other growing consumer segments in our just released State of the Consumer Report, Q4 2018.

Ready to get started? Reach out for a demo.

Infographic: Consumer Insights for 2018 Holiday Shoppers

Did you know that nearly 80% of U.S. consumers choose retailers that carry cost-effective products? It’s not surprising that with so many consumers prioritizing cost this holiday season there are also 57 million consumers who wait for Black Friday and 50 million shoppers who wait for Cyber Monday to make purchases. Who are these shoppers and how can you attract them to your online and brick and mortar store this holiday season?

View the infographic below to learn more about these consumers and marketing tips to increase engagement and boost sales this holiday season!

Today’s Loyal Consumer

Consumers have used loyalty programs to get rewards and perks from their favorite brands. But there are signs that the number of loyalty program members are starting to slip. It’s time for marketers to take their loyalty programs to the next level through a better understanding of what their customers want.

View the infographic below to learn about consumers who choose where to shop based on that retailer’s loyalty program.

Print your copy of the above infographic here or read the free marketers guide How Deep Consumer Insights Improve Loyalty Program Performance.