The Produce Mom Welcomes Chelan Fresh To Family Of Partners
The Produce Mom is the official blog and consumer brand of Indianapolis Fruit Co., a supplier of fresh fruits and vegetables to retailers in more than 14 Midwestern states. The blog was launched in January 2012 and is authored by Lori Taylor, marketing manager. She combines her professional and personal experiences to share relevant industry knowledge with consumers.
The partnership with Chelan Fresh was established with a primary goal of marketing the Rockit Apple, which has been promoted on The Produce Mom’s blog, social media and WISH-TV/Indy Style news segments.
Jeff Ryg, Kroger Central Division, praised The Produce Mom’s campaigns, “She creates buzz,” Ryg said. “Our shoppers are fans and followers of The Produce Mom. I have great confidence in our ability to sell a product when The Produce Mom is talking about it. It’s exciting for me to see so many of Kroger’s valued partners joining The Produce Mom Family of Partners.”
After the success of the Rockit Apple promotion, Chelan Fresh invited The Produce Mom to join its Annual Cherry Harvest Tour. This year’s tour took place July 13-15 in the Lake Chelan area. Chelan Fresh invites individuals representing positions of industry influence to participate in its ag tourism and education program. This year’s guests included registered dietitians, food stylists, bloggers and consumers, as well as policy and commission representatives.
Kathryn Grandy with Chelan Fresh Marketing said the company was thrilled to have Lori Taylor, The Produce Mom, in attendance.
“We at Chelan Fresh are proud to support The Produce Mom,” Grandy said. “It’s very exciting to witness the way her social campaigns and consumer marketing style benefit our brand. We have great respect for all fellow members of The Produce Mom Family and we look forward to working with The Produce Mom to increase the consumption of fresh produce.”
“I am very passionate about introducing consumers to new and exciting items in the produce department, such as the Rockit Apple,” said Lori Taylor, The Produce Mom. “The experience at Chelan Fresh was invaluable to me and all the followers of The Produce Mom. I love demonstrating to consumers the protocol and care that is necessary to bring a fresh produce item from the farms to our home kitchens. Our industry’s dedication to sustainability & food safety is beyond admirable.”
Chelan Fresh Marketing was established in August 2004 and holds the sales and marketing responsibilities for Gebbers Farms and Chelan Fruit Cooperative. Today, Chelan Fresh has grown to become one of Washington state’s largest marketers of fresh fruit with an estimated annual sale of 12 million boxes of apples, 1.3 million boxes of pears, 3.3 million boxes of cherries. For more information, visit ChelanFresh.com.
In the feature photo at top: The Produce Mom Lori Taylor picks cherries.
California Cantaloupe Board Debuts Summer Consumer Sweepstakes
The California Cantaloupe Advisory Board’s Summertime Yum & Cantaloupe Fun online sweepstakes promotion is now under way and is designed to draw more people to the organization’s website and social media properties.
Last year the California cantaloupe industry established a new mandatory food safety program and launched an on-line education effort designed to increase confidence and boost consumption of California cantaloupes. The educational campaign is being partially funded through a USDA Block Grant provided to the Cantaloupe Board to help rebuild confidence in cantaloupe in the aftermath of the 2011 outbreak of listeria associated with cantaloupe from Jensen Farms.
“California cantaloupe farmers have such a great story to tell in the way we have utilized 20 years of University research to determine the safest ways to grow cantaloupes,” said Garrett Patricio, chairman of the board’s marketing committee. “Our new website and social marketing campaign are designed not only to tell consumers the story of our commitment to producing the best quality and safest cantaloupe, but we hope to encourage increased consumption of cantaloupe by engaging people in all the fun and delicious ways cantaloupe can be incorporated into a healthy diet.”
The Summertime Yum and Cantaloupe Fun promotion is tied to the California Cantaloupe Facebook page where consumers are encouraged to explain how and why they are fans of fresh cantaloupe. Consumers can enter to win a $100 gift certificate to their favorite local grocery store. Prizes will be given three times over the course of the next two months.
The California Cantaloupe Advisory Board has a team of social media experts who are implementing the program and regularly sharing information via a host of social media sites including Twitter, Instagram, Pinterest and Google+ in addition to Facebook. A series of videos is also available on YouTube with information on the California cantaloupe industry’s mandatory food safety program, as well as some quick consumer tips on how to safely wash, select, cut and store cantaloupe. For those interested in the details of the food safety program, a list of certified shippers is posted on the website and a copy of the food safety audit checklist, which includes 156 checkpoints, also is available.
Last year, the board launched the first mandatory food safety program in the U.S. produce industry that invites government auditors to inspect all aspects of cantaloupe production operations. Handlers who are certified under the program are required to be in 100 percent compliance with a set of science-based food safety practices verified by government auditors. The program operates with oversight from the California Department of Food and Agriculture and utilized USDA-trained auditors.
During the first year of the program, 53 total audits were conducted with each including 156 food safety checkpoints. In total, after examining 8,268 checkpoints in fields, packing facilities and coolers, government auditors found 4.3 percent that were out of compliance. All checkpoints are required to be corrected and verified again by auditors. Once a handler has achieved full compliance with all checkpoints they are considered “certified.” Only then can handlers utilize the certified seal on packaging and paperwork and the name of their company is posted on the public website.
“We are very pleased that all handlers achieved certification last year,” said Patricio, noting that this season’s audits are currently ongoing and that any new handlers will be added to the certified list as soon as their audits are complete. He encouraged retail and food service buyers to visit the website to ensure they are purchasing cantaloupe from certified handlers.
“They should also visit our website and sign up to receive our newsletter so they can be notified if there are any de-certifications,” Patricio said.
Patricio also urged retailers to share the California cantaloupe website and social media sites with their customers.
“Our Board is very fortunate to be able to promote all of the fun and delicious ways to use and eat cantaloupe along with telling people about our strong food safety program,” he said. “Cantaloupes are such a great product and we are very confident that more people will become fans once they get to know us.”
Red Diamond Wins Regional Social Media Competition Again
Red Diamond Coffee and Tea Co., one of the three oldest coffee, tea and foodservice companies in the U.S. continuously operated by the same family, repeats as the winner of the Alabama Region of the ‘Social Madness’ contest hosted by American City Business Journals, a national publication of 40 business newspapers across the country.
The Social Madness Challenge is a one-of-a-kind competition that measures a company’s social media engagement. Last year, nearly 4,000 companies participated, generating nearly three-quarters of a million votes. Red Diamond once again proved successful by outscoring competitors throughout the competition.
“Social media is an excellent vehicle for Red Diamond to deliver on our commitment to drive business to our retail partners, communicate efficiently with our consumers and provide great customer service,” said Wilbur Christy, director of innovation at Red Diamond. “Red Diamond has long been recognized for having loyal and enthusiastic fans around the country. We were fortunate to win this competition because our fans engaged with us and with their friends and family. To enjoy Red Diamond is to share it. That’s exactly what our fans did.”
Added Crest Foods buyer David Judd, who recently introduced Red Diamond’s tea products, “Red Diamond’s social media drove their business, and my category to outpace my competition. I’ve rarely seen a new brand come into Oklahoma and perform this well, this fast. Social media was the key.”
Red Diamond has moved on to the national competition, which began July 16.
To learn more about Red Diamond, visit reddiamond.com.
United Supermarkets Expands Social Media Presence Across Three Banners
United Supermarkets LLC is better connecting with its guests by expanding its social media presence for three of its four store formats. The new structure gives each of the banners—United Supermarkets, Market Street and Amigos—its own unique and separate set of social media pages on several platforms.
The growth of social media and unique positioning of each banner drove the decision to diversify outlets. While the company’s social channels were previously aligned geographically, the new alignment by brand allows each banner to have unique representation on Facebook, Twitter and other social media platforms.
“As we became more active on social media, we realized that publishing content about all three of our banners to a single Facebook or Twitter page wasn’t the most desirable way for our guests to stay updated on what was happening in the stores where they shop,” says Kelly Podzemny, social media coordinator for United Supermarkets. “Now they can follow only the banners where they shop, or all three if they like and not be exposed to the same message twice.”
In early February 2013, the company converted its former “West Texas” Facebook page, which represented all three West Texas brands, to represent only its United Supermarkets stores. The company also converted the previous Dallas/Fort Worth Facebook page to represent Market Street stores across all of its regions. New Facebook and Twitter accounts were created for the Amigos banner.
“Social media has been a great way to engage with our guests. We are evolving from simply being a grocery store to becoming a valuable source for interesting, entertaining and useful content,” says Jennifer Nanz, digital media manager for United Supermarkets. “Our goal is to provide relevant information to our guests, and narrowing our message to the specific banner helps us achieve that goal.”
United says the changes have been well accepted by its fans. New followers for Facebook and Twitter channels have increased by 38 percent, and regional diversity has increased among all channels. Most guests continue to follow and engage on multiple banners and channels.
Additionally, the company has created Pinterest and Instagram feeds for United Supermarkets and Market Street. Links to all of the United’s active social media pages can be found at www.unitedtexas.com/social.
Smartphones May Be Your Most Valuable Retail Space
by Rick Rusch
Last year social media was the topic of considerable discussion among retailers, including grocers. Many grocers’ questions centered around the why, what and when of social media. Today, even for those who have been in social media for two years or more, they remain vague and difficult to measure.
While social media has not gone away, the biggest game-changing trend we’ve seen in technology is the growing usage of mobile devices such as smartphones and tablets and how consumers use them for decision-making, sharing and purchasing. In essence, mobile devices put the internet in consumers’ pockets or purses. And consumers are using that power to do everything from accessing promotional coupons and scanning QR codes to researching products, comparing prices and making a purchase.[gn_quote style="1"]Mobile will influence 5.1 percent of all retail purchases in 2012—that’s $158 billion.[/gn_quote]
By 2013, if you’re not mobile, you’re simply not going to be competitive. Worse still, your in-store and e-commerce business will both suffer as you lose sales to competitors who provide a good shopping experience on mobile devices.
So why is this trend one grocers cannot afford to stand on the sidelines for? Numbers. That’s right, numbers. Consider these numbers….
The mobile trend is here
- 54 percent of mobile users own a smartphone
- 70 percent of mobile searches result in interaction with a business within one (1) hour
- 27 percent of consumers are scanning QR codes in-store
- 48 percent feel better about purchasing after viewing on mobile
- 14 percent make unplanned purchases as result of mobile influence
Statistics and trends are great, but grocers live by sales metrics. And that’s exactly why grocers cannot afford to ignore mobile. The mobile trend numbers above lead directly to sales and can be measurable against sales. Unlike social media, where monetizing friends and likes is nearly impossible, mobile should be viewed as another connection point with consumers.
That said, it is a mistake to think of mobile as simply the 21st century version of the newspaper insert. Here’s why:
Reach—Your mobile store reaches anyone with a smartphone, not just those who subscribe to the local paper.
Access—91 percent of smartphone owners keep their devices at their side 24/7…your mobile site provides on-demand access to products, service and your brand.
Low Cost—A mobile website and apps are less costly to build and maintain than a traditional website—and less than print mediums, too.
Targeted—Rather than broadcasting an offer to everyone via a newspaper, mobile allows for more intelligent, targeted marketing offers that blend both location and relevance.
Timely—Mobile makes real time offers a reality.
Smart shoppers are consulting multiple platforms to aid with shopping and to save money. Mobile coupon usage, in particular, is skyrocketing. According to a July study by media and marketing services company Valassis, use of mobile coupons or apps increased by more than 100 percent in 2011, and 100 percent again in 2012. Although trailing online coupons by a few percentage points, the Valassis study showed that 79 percent of U.S. internet users were using more mobile coupons this year—on par with print coupons and circulars. According to the Valassis findings, of consumers using a smartphone for savings, 21 percent accessed a coupon in an email, 19 percent used the device to compare deals and 18 percent downloaded the coupon on their phone.
OK, so the numbers look good and they can be tied more directly to sales. So what’s a grocer looking to add the mobile channel to their marketing strategy to do?
Mobile commerce is all about your customers
When it comes right down to it, mobile commerce works only if it benefits your customers. That means you need to determine how your customers find and shop at your site or store. Here are four mobile strategies to get you up and running in the mobile economy.
1. Optimize the Mobile Web
Mobile internet usage is projected to surpass desktop web usage by 2015—or sooner. Take advantage of these mobile consumers by providing an experience optimized for mobile and for the specific device format a consumer is using. Mobile websites and apps provide a much more engaging and simple way for users to view and interact with your brand. Although many businesses are marketing via mobile or social networks, 90 percent of websites are not mobile.
As a result, mobile traffic lands on a website that can be frustrating or nearly impossible for consumers to use. Optimizing for mobile will reduce consumer abandonment due to a poor user experience.
How to optimize the mobile web?
- Simplify site design by putting top consumer actions front and center
- Use large, touchscreen-friendly buttons
- Trash the flash as it’s not supported by Apple’s iOS
- Ditch large images and video that take time to load
2. Link Mobile and Email
Consumers are using their mobile devices to do tasks they would previously do using a desktop computer, especially reading email. Consumers who make purchases through marketing emails spend 138 percent more than those who do not receive email offers. Ninety-three percent of online consumers interact with brands through email, more than any other platform.
How should you link mobile and email?
- Format emails to be read easily on mobile devices
- Keep links to a minimum
- Encourage sharing
- Connect weekly at a minimum
3. Linking with QR
To date, QR (Quick Response) codes, those little black and white squares of pixels, have been more a favorite of marketers than consumers, but that is about to change. A QR code that takes a customer to your Facebook page or a website that is not mobile-optimized is a waste of time. As stated at the beginning of this article, today 27 percent of consumers are scanning QR codes in-store. Provided with an informative destination, 48 percent of consumers feel better about purchasing and 14 percent are making unplanned purchases.
How is it best to link with QR?
- Make the destination worthwhile—an offer or information—not to your Facebook page
- Tell customers where the QR code takes them and why they should go there
- Change the content of the destination frequently
- Keep it close to the product so a purchase can be made
4. Socially Mobile
By the end of this year, nearly 82 million U.S. mobile users will use a social networking site on their phone at least monthly; that’s more than a quarter of the total U.S. population. Research firm eMarketer says that most of these users—95.5 percent in all—will be checking social sites on a smartphone, and smartphone users are about twice as likely as overall mobile phone users to do so this year. But if you think one in four is a lot, by 2014, eMarketer believes nearly half of the total U.S. mobile population will be mobile social networkers.
How to be socially mobile…
- Promote across multiple social networks
- Create experiences that drive interaction and sharing
- Collect valuable data by customer action
- Measure and optimize
Are you ready for mobile?
Your customers are! Booz & Co. states that 31 percent of customers use mobile technology in their grocery shopping. They are signing up for offers, downloading coupons, price comparing, evaluating nutrition labels and scanning QR codes.
Savvy grocers will see mobile as the ultra-effective connection channel it is. As such, they’ll position their mobile strategy as the most valuable and productive retail space in their store. It’s safe to say their customers will respond positively.
Rick Rusch is managing partner of Thought-Tech LLC, a brand communications firm. Thought-Tech guides clients in branding, marketing and selling. Thought-Tech has launched MobileBrandLinx a custom Quick Response (QR) code product and service to extend branding and packaging for retailers. Rusch can be reached at Rick.Rusch@thought-tech.com.
Kellogg Introduces ‘The Crunchy Nut’
The Crunchy Nut has made it his mission to seek out people suffering from dull breakfasts and put the fun back into cereal bowls everywhere, according to a new campaign by Kellogg. Armed with a bottle of milk and a wooden honey stick, this masked hero is always on the lookout for citizens in need of his nutty intervention. Faster than a speeding milkman, The Crunchy Nut steps in to save the day by bringing joy back to everyone’s mornings—one bowl of Kellogg’s Crunchy Nut cereal at a time.
“I used to dread waking up every morning to a bowl of stale toast,” said Clarence. “Now with Kellogg’s Crunchy Nut, I live a life devoid of a taste bud numbing meal. Breakfast is actually fun again!”
Unlike other lackluster morning meal options, Kellogg’s Crunchy Nut spreads smiles as taste buds encounter the cereal’s combinations of sweet and nutty flavors. Kellogg’s Crunchy Nut cereal is available in three varieties – Crunchy Nut Roasted Nut & Honey, Crunchy Nut Golden Honey Nut and new Crunchy Nut Caramel Nut.
The Crunchy Nut is recruiting supporters all across the land to join this cause. His first high profile appearance on Jimmy Kimmel Live! happened June 12 to get the word out that mornings can be nutty again. Watch on YouTube at http://bit.ly/M3ridX.
Singh: Cold Digital Tools Can Build Warm Connections
by Terrie Ellerbee/associate editor
There are two sides to everything. Depending on your point of view, the digital revolution is either God’s gift to mankind and will change everything, or it is a consumer phenomenon but doesn’t really do much for business.
That’s according to Shiv Singh, an expert in digital marketing.
Singh is the global head of digital for PepsiCo and author of the book “Social Media Marketing for Dummies.” He spoke on May 2 in Dallas to attendees at FMI 2012: The Food Retail Show.
Companies large and small are doing digital very well, and Singh offered examples of each. Pepsi itself has been a big sponsor of The X Factor television program. The company created a social TV environment, a real-time chat room, and invited fans of the show to come on the site and talk about the show. People who participated were awarded points based on how others responded to their feedback. Rewards were incentives like coupons that would drive a consumer into a retail store.
Then there is AJ Bombers, a small hamburger joint in Milwaukee. It successfully used the check-in service Foursquare, which has 30 million to 40 million users. The service allows people to “check in” at locations and earn badges based on various factors, like the frequency of visits. The coveted “Swarm Badge” is awarded when 50 or more Foursquare users check in at the same place at the same time in just one day, 161 people checked in at AJ Bombers, even though fewer than 500 Milwaukee residents were using the Foursquare app at the time. Over five days, the event pulled 500 new customers into the restaurant.
“The beauty of this program is that they now know those consumers and they are really able to market to them,” Singh said. “Whenever they check in on Foursquare at that food outlet location, guess what? They’re sharing that information with their friends, and that’s further building interest and awareness for them.”
It works across the board, no matter the size of the business, he said.
Food retailers and manufacturers have got to get on board with social media, Singh said. They have to get to where their customers are.
He said three numbers “scare the living daylights” out of him. The first: 30 billion, the number of status updates published every month on Facebook. The second: 5.3 billion, the number of video views in a 24-hour period on YouTube. The third: 340 million, the number of tweets sent on Twitter each week.
It is easy to get lost in the distractions today’s customers have at their fingertips.
“Our consumers, our customers are flooded with information in a way they’ve never been before,” Singh said. “You’re competing with the attention of their cell phones, whether they’re talking to someone or tweeting or updating their status.”
Consumers are giving out more information than they ever have before, too, and it’s all “hyper-personal, hyper-relevant and hyper-in-the-moment,” he said.
He compared attitudes about digital media to those about television 50 years ago and radio before that. Both were massive phenomena that quickly gained interest and enthusiasm, but no one really knew then how they would meaningfully affect or influence business.
He asked the FMI 2012 audience to consider that the growth rate of people using mobile devices and smartphones is steeper and quicker than it was for AM radio, television or even the internet, and that growth occurred during a recession.
“There’s something big going on whether we want to accept it or not,” he said. “The question for us, for all of us, is what does it mean for business?”
The fundamental change is that anyone can market to customers in any given moment. There used to be something of a “safe zone” inside a retail store. The retailer controlled the environment. That’s changed now.
It is a big change, Singh said. And it can be exhausting for the customer, too.
“Probably what is one of the most important and one of the most simple points that often gets missed … is anytime we do anything in digital, you must put it in the context of what those consumers and those customers are doing, what else they’re doing, how else marketers and brands and retailers and manufacturers are hitting them, and do something different,” he said. “But it’s forgotten so easily, and we all end up trying to do the same thing with our customers. Then it gets chaotic and meaningless.”
Retailers and manufacturers must look to new data, new forms of engagement and new measurements, but with a caveat.
“I want to emphasize that this is not a case of leaving everything that has come before behind, by any means. This is rather a case of complementing and supplementing all of business marketing and strategies and tactics and bringing them all in together,” he said.
The new data revolves around how customers are using these new technologies. It is now possible to know an awful lot about them: whether they like a brand, when they walk into a retail location, whether it is their first or fifth trip and whether they have stopped buying a brand.
“I can know all of that data,” Singh said. “But here’s the beauty: I can know it in the moment that he’s walking in, and, even more so, I can market to him as he is walking in.”
Engaging consumers can now go far beyond coupons and offers designed to pull them into a store. Thanks to digital technology, it can be more human-based.
He gave the fictional example of seeing Lady Gaga on 5th Avenue in Manhattan, and she happens to be holding a Pepsi can. If he could keep his wits about him, he said, he would snap a photo and send it to PepsiCo’s corporate headquarters. The company could then put it in a digital advertisement or offer a digital coupon.
“Imagine that 10 minutes later that image of Lady Gaga drinking Pepsi reaching 20, 30, 50 million people around the country just like that,” he said, snapping his finger. “And imagine if that advertisement even says, ‘Lady Gaga was on 5th Avenue. Got to these specific retail environments.’
“The world would go crazy,” he said.
Other than his chances of seeing Lady Gaga, the rest is very possible and is happening today. The point is that historically, companies would do planning in January but didn’t execute those plans until much later in the year.
“In reality, though, our consumers are living real-time lives, day-by-day. They’re in the moment, living for now in real time,” he said. “We as companies have to live in real time with them. That Lady Gaga scenario wouldn’t be funny, wouldn’t be interesting, would have any meaning for business if that photograph got translated into a piece of engagement advertising about a year later.”
Technology allows for real-time marketing and customer engagement partly because it allows businesses to know where a large majority of their consumers are at any given time.
To play in that world, a business or brand must have a strong cultural point of view, Singh said. The goal is to create experiences, build loyalty and attract brand advocates. And that is the case for every business.
“Whatever your business may be, large or small, massive or tiny, you never have enough money to engage your customers,” he said. “You just won’t. Trust me. I’ve worked in different organizations. What you need to do, though, increasingly is depend on your brand advocates, activate them, influence them, trigger them—and in ways that don’t just drive purchasing, but encourage them to reach other people as well.”
That is at the heart of real-time marketing, Singh said.
There is more data to capture than ever before, but there also are a lot of companies whose function is to help retailers understand it, make sense of it and integrate it into a company’s database.
“Have your finger on the pulse of these companies who are really making those statistics real and practical,” he said.
He said he wanted to dispel the myth that there is no return on investment with digital.
“I have seen it time and again … when you do digital right, it has a very, very specific ROI, but it all comes down to how you measure it,” he said.
He said he wasn’t arguing for moving budgets en masse to digital.
“My point is this stuff is worth taking seriously today,” he said. “Don’t wait for tomorrow.”
Singh described a “marketing eco-system and business eco-system that are changing faster than we realize.
“Don’t depend on the past to predict the future,” he said.
Finally, digital is about being more personal and human, he said. The fictional Lady Gaga sighting and the real-world AJ Bombers event work, he said, because they are emotionally compelling.
“They connected to the real world, and that’s the critical thing,” Singh said.
[gn_box title="Photos of the Event" color="#339900"]
[gn_button link="https://www.facebook.com/media/set/?set=a.10150796823901993.390908.207499771992" color="#339900" size="3" style="3" square="2" target="blank"] More Photos [/gn_button]
Social Business is What’s Next for Social Media
by Rick Rusch, Thought-Tech
Special to The Shelby Report
The year 2012 is likely to go down as the year of social business. As you read this you’re thinking, “Wait a second! Social business? I’m just getting the hang of social media.” That’s OK. You’re on the right track.
Let’s start with two events in 2012 that epitomize the power of social media in American life and business. First, the Super Bowl and its somewhat over-hyped commercials set two new records on Twitter for the number of tweets per second (TPS), according to PC Mag. After the New York Giants’ victory, Twitter traffic reached 12,233 TPS, and there were 10,245 TPS during Madonna’s half-time performance.
Then there’s the anticipated Facebook initial public offering with a potential valuation of $100 billion dollars. For those of you keeping track, that’s five times the size of Google’s 2004 debut.
But neither of these are the reason why 2012 will be the year of social business. Rather, it is because in 2012 businesses of all types will begin to refine their social media tactics and see tangible, measurable outcomes as a result. Aren’t tangible, measurable outcomes what we’ve all wanted to see from social media? It appears we’re in luck in 2012.
Are these outcomes expressed in terms of likes or follows? That’s part of it, but social business is bigger. Fast Company blogger Drew Neisser believes that social media will be dwarfed by social business.
Neisser writes, “While social media has helped many companies become more customer-centric, it is treated primarily as a modestly effective marketing tool.”
In Neisser’s article, Ethan McCarty, senior manager of digital and social strategy at IBM, explained, “Social media is about media and people, which is one dimension of the overall world of business. With social business you start to look at the way people are interacting in digital experiences and apply the insights derived to a wide variety of different business processes.”
Said simply, social business is about communication and relationships presented where and how all parties will enjoy a benefit.
To that end, grocers should consider evolving their perspective on social media into that of social business. An efficient way for grocers to become a social business is to add a mobile component to their marketing.
As of the 4th quarter of 2011, Nielsen Research reported that 46 percent of U.S. mobile phone owners had a smartphone. This is important because Facebook and Twitter have developed a growing mobile audience. On average, slightly more than half of U.S. smartphone owners (50.9 percent) accessed Facebook on their device in the three-month period ending in June 2011. Twitter has more than 165 million users and 50 percent of them use Twitter Mobile. If that isn’t enough to pique your interest in mobile marketing, consider that half of all local searches are performed on mobile devices.
The convergence of social and mobile provides significant opportunity for grocers. Neilsen also reports that across age and other demographic groups mobile social networking is on the rise big time. The chart below shows increases almost across the board in the range of 40 to 60 percent, and even as high as 109 percent for those 55 and older.
To make the leap from social media being a “modestly effective marketing tool” to something more substantive for retailers like grocers, it is helpful to take a look at how social media is being used to benefit grocers right now.
Wisconsin, considered “fly over country” by some folks, is home to several grocers who are enjoying success in social media. These grocers are likely to be transitioning to social business in 2012.
Burnstad’s Market, with three stores in Central Wisconsin, has been refining its social media approach for the past two years. “At first we were hesitant,” said Derek Burnstad, VP of the market, “But it kind of exploded on us—in a good way.”
Burnstad, who is 29, championed the move to Facebook.
“The best results come from interacting and relating to our guests. We don’t even post our weekly ads,” he said, bluntly pointing out that “we’re competing with a Walmart Supercenter, we have to be different, and guest services, which include social media, are key to differentiation.”
Also in the heart of America’s Dairyland is Gordy’s County Market. With seven locations, Gordy’s has jumped into social media with Facebook, Twitter and YouTube. Since late 2009, Matt Selvig, a company spokesperson, has served as “Gordy’s Guru,” the face and voice of Gordy’s multi-channel marketing.
Selvig’s approach from day one has been “to develop relationships, not just to bombard with specials.” The “Guru” has learned much in the past two years.
“We’ve learned that whenever there’s a prize, people come out of the woodwork,” he said.
Selvig’s observation aligns with national trends. ExactTarget, a global provider of cross-channel interactive marketing solutions, reports that 63 percent of Facebook users who “like” a brand or product on Facebook expect something in return. A majority (58 percent) who “like” expect both access to exclusive content, events or sales, and discounts or promotions through Facebook. Only 37 percent do not expect anything to happen.
Selvig points out that social media is a two-way conversation, “so our goal is to take everyday situations and apply them to Facebook.”
What’s next for Gordy’s?
“We want to leverage immediacy,” Selvig said.
Without specifically identifying it as social business, it appears that is exactly where Gordy’s County Market is heading. Gordy’s is focused on beneficial communication and relationships.
How did Wisconsin become a hotbed of social media success for grocers? Two years ago, Brandon Scholz, president and CEO of the Wisconsin Grocers Association (WGA), knew nothing about social media. Today the WGA offers a three tiered (beginner to expert) learning approach to social media for its members free of charge.
“Trade associations are in the business of educating members. We must provide value and benefit,” Scholz said. “Social media is pretty unique compared to other things grocers are involved with, because it’s new. We (the WGA) wanted to assist grocers make the progression of experience in social media via seminars.”
Social business is the next opportunity. Scholz is bullish on introducing this new element into grocers’ day-to-day operations.
“This is different, bigger than a marketing plan or business plan. We help our members determine where this fits and fill in the holes other partnerships don’t provide,” Scholz said.
To that end, the WGA has launched a social media services entity. The new social media services entity will provide advanced support and development in a range of social business areas. Scholz sees value in the WGA being an ally to its members as they navigate new waters in social business.
Of course, Wisconsin is not the only place where grocers have seen success in social media. Annette Hoeffel, director of marketing at Chief Super Market, says social media (primarily on Facebook) was initiated about two years ago for all 12 locations in northwest and west central Ohio.
“We saw social media as a direction for the future and as a way to create a relationship with our customers,” Hoeffel said. “Social media is managed in concert with the rest of our marketing. That gives us a consistent message.
“One of the most exciting outcomes of our social media experience has been the advocacy for our markets displayed by our customers,” Hoeffel said. “Our very loyal customers have been quick to offset any negative comments.”
Customer advocacy reinforces Chief Super Market’s social media efforts and drives a focus on continual improvement in social media tactics.
“Our biggest takeaway from social media is that our customers want to communicate with us,” Hoeffel said.
Chief Super Market customers represent a range of demographics, but Hoeffel said, “We see social media as a way to connect with younger consumers.”
That is at the core of the social business concept—communication and relationships presented where and how all parties will enjoy a benefit.
In a nutshell, here are four reasons why grocers need to be thinking about becoming a social business:
1. Your customers are digital—you need to be as well.
Your customers are already there. More than 40 percent of mobile users own a smartphone. If your website, weekly ad or location-based content are not mobile enabled, you are essentially hoping that nearly half of your customers look you up before coming to your store. Are those the kind of odds you want?
2. Transactions come from relationships—not business plans.
Social businesses put their employees in front of consumers. For control freaks that can be unnerving, but it does work. The “Guru” at Gordy’s County Market is a fine example of creating a personality for the store that connects with consumers.
3. You don’t have to start big—but you do have to start.
Social business doesn’t have to be a big initiative. It does, however, require an openness and willingness to expand thinking. Mix in a little creativity along with a good understanding of what your customers want and you’re good to go. And, it is imperative you accept No. 4 below.
4. It’s OK to fail—it’s not OK to dwell on it.
The practice of social business is new territory. Every now and then you’ll experience a flop. High hopes for a new idea are met with a thud. Get over it. Move on. Your competitors have.
Social business is an expanded view of social media. The goal of social business is to move beyond using social media as a “moderately effective marketing tool” and into a communication-based relationship. Grocers using social media insights to evolve their business processes will be rewarded with loyal, engaged customer relationships.
Not a bad payoff for keeping up with your customers, is it?
Rick Rusch is the managing partner of Minneapolis-based Thought-Tech LLC, a brand communications firm. Thought-Tech guides clients in branding, online connection strategies, social media, product launches, business and marketing plans as well as expert competitive analysis. Rusch can be reached at Rick.Rusch@thought-tech.com