Not today.

If you’re not being discussed online, something’s up.  Whether it’s about your latest product, recently published research report, or company, or if it’s positive, neutral, or negative feedback you want to have your fair share of the social media pie.  If people are talking about you online then that means you can directly tap into what your customers (and potential customers) are saying about you – with no censorship.

This easy access to your customers’ opinions gives you an opportunity that businesses a generation ago didn’t have – the ability to respond almost immediately to questions, concerns, and responses to your business.  Whether the feedback is positive or negative you can respond accordingly and quickly.

So how do you dive into the social media pool?  Create accounts for your business – make a Facebook page, a Twitter account, Youtube videos, etc. and start publishing information about your business.  Invite clients and other business in your industries to be part of your networks.  Maintain dialogues (not monologues) with those people in your networks.  Respond quickly, succinctly, and efficiently to their feedback.

In the world of social media, no news is bad news – start a conversation today!

Emily Varney
Social Media Intern
FGI Research

Economic Downturn Causes Uptick in DIY
Of people who do DIY projects regularly, 28% report doing more DIY projects now than they did 12 months ago. The frequency of people doing DIY projects is not only increasing because of the educational opportunities on the internet, but also because of the downturn in the economy.  In fact, 33% of DIYers said that they do more DIY projects specifically because of the down economy.  Furthermore, 58% of people who do DIY regularly said that part of their motivation is expense.

Gendered Motivations
Our analysts also looked at differences in DIY preferences by gender.  The majority of respondents who did ‘light DIY’ projects were women (69%); as opposed to those who said they do ‘medium and heavy’ levels of DIY, who were overwhelmingly male.  Furthermore, women had performed only 1-2 DIY projects in the past 12 months. Most men reported doing 3-5 or more in the same time. The reasons why people chose to do DIY projects also differed by gender.  25% of those who said that ‘completing DIY projects gives me a sense of satisfaction’ were male.  Of those who said their main motivation was expense, or that they ‘enjoy learning how to do DIY projects,’ most were women.

Actionable Insights
It is important to note the differences in appeal to both men and women when thinking about the DIY market.  The main motivation behind a woman’s purchase of DIY products may be to save money or learn a new skill; a male consumer may simply be motivated by the sense of satisfaction he gets with a job well done.  This could influence how a business markets to each demographic. Research into the differences in gender demographics, using targeted sampling and specific survey questions, can help inform marketing plans to each gender.

Next Steps You Can Take

Survey Methods
Date of Study: 8/24/2009
Total Responders: 259
Sample Source: FGI SmartPanel

• They will spend more for goods and services of higher quality (65% food, 57% clothing, 56% facial skin care)
• They demand products that deliver: time savings, fulfilling experiences, and emotional benefits
• They give examples of brands that consistently meet their needs: Coach, Crème de la Mer, Adidas, Apple and Nike

Our advice: keep your research sharply focused on the wants and needs of women as they related to your specific products and services. Otherwise, you may find yourself on the outside looking in on the very people who control the majority of every dollar that is spent.

David Wilson
CEO
FGI Research

Traditionally, surveys are designed to present price options on a basic scale, without methodological regard to the order in which the price deltas are presented to the respondents.  In this survey, a random half of the respondents were presented the pricing variation choices from low-to-high (i.e. 30% less to 30% more), and the other half were presented the price variations in the opposite order (30% more to 30% less).

Data from the “low-to-high” respondents skewed toward paying less for the product, while data from the “high to low” respondents skewed toward paying more for the products.  The same number said “about the same” in both cases; “about the same” was the midpoint of each scale. This finding reflects  a classic example of order bias.

Dino Fire
Director, Marketing Science
FGI Research

Google Trends: “Cash for Clunkers” is “Volcanic”
“Cash for Clunkers,” for those who are unfamiliar, is a government stimulus program that promises incentivies to trade in an inefficient “clunker” for a new, more fuel-efficient vehicle. News about and discussions involving this term have had a huge impact on social media. FGI Research noticed an enormous spike in blog traffic surrounding the subject, and Google Trends rated the term “Cash for Clunkers” as “Volcanic,” meaning it earned the top spot on their most-frequently-searched list.  Although this trend is spreading rapidly on the internet, the question for automakers is:  Is this social media trend really “volcanic” for all consumers, or do demographics make a difference?

Demographics: Look Who’s Talking
FGI Research turned to SmartPanel panelists to uncover who, exactly, was behind the demonstrated interest in “Cash for Clunkers.” We asked those surveyed if they were aware of the program. 82% of respondents said that they had heard of it, but we discovered that awareness depended on demographic factors; for example, 70% of Hispanics said they had heard of this program, as opposed to 84% for non-Hispanics.  There was also a significant drop in the awareness of people ages 31-34 (57%) when compared to the average respondent awareness (87%). Those between 35-44 and over 65 demonstrated the highest awareness of the program. More research into social media use by these demographic groups could reveal if they are also responsible for the spike in Internet traffic of the subject.

Who Will Use the Program?
The study also included questions about who might benefit from “Cash for Clunkers.” Our results suggest that the future looks brighter for the auto industry.  Only 12% of respondents said that they had bought a car in the past six months, but 23% said that they planned to buy a car in the next six months.  Of respondents who had not bought a car in the past six months, and had not heard of “Cash for Clunkers” before taking the survey, 17% said that they were more likely to buy a new car after learning of the program.  It’s easy to see what a tremendous impact this government program has on the American consumer in terms of new car purchases. The chart below illustrates consumer sentiment on the subject of “Cash for Clunkers.”

Actionable Insights
We can take a number of insights away from this research. First, social media has demonstrated a powerful influence on consumer awareness of a subject, and a powerful ability to reflect consumer interest in that subject. People get information from social media, and they also express their views through social media, which means there are opportunities to use social media for marketing as well as research into marketing. FGI’s independent study suggests that “Cash for Clunkers” has great potential to positively impact auto purchases this year, yet only if all demographic groups are aware of it. Depending on who uses social media, companies could use it as a tool to reach every demographic effectively, inform them of the program, and so benefit from online marketing. More research into the demographics of social media use could further support those efforts.

Next Steps You Can Take

Survey Methods
Date of Study: 7/31/2009
Total Responders: 295
Sample Source: FGI SmartPanel

In our experience, custom panels and other marketing research tools are maximized when experts are in the trenches helping clients put them to use. Many companies experience frustration and failure when they put too much faith in tools alone to power their research. For example, custom panels are powerful tools, but only when best practice sampling methods are applied. Without proper sampling, custom panel studies may yield the desired number of completed surveys, but with data that is totally unreliable for downstream decision making.

Similarly, social media mining is a powerful, must-have research tool. However, unless key social media trends are properly validated using proven quantitative methods, errant conclusions can be drawn and huge mistakes can be made by decision makers. The point is this: the proliferation of marketing research tools and methods puts an even greater premium on the need for expert help execute all the critical details and make it all work.

David Wilson
CEO
FGI Research