CFM Research

Millennials Pose Unique Marketing Challenges – And Familiar Ones

Millennials, as children of the digital era, pose unique marketing challenges. However, you are more likely to engage them with online video ads and social media with videos. That said, it never hurts to know you target audience and recognize they are a moving target.

Millennials, as children of the digital era, pose unique marketing challenges. However, you are more likely to engage them with online video ads and social media with videos. That said, it never hurts to know you target audience and recognize they are a moving target.

Millennials are a moving target, so it helps to understand as much as you can about their demographics. Salesforce did the homework for you.  https://www.salesforce.com/products/marketing-cloud/best-practices/millenial-marketing-strategy/#

Millennials are a moving target, so it helps to understand as much as you can about their demographics. Salesforce did the homework for you. https://www.salesforce.com/products/marketing-cloud/best-practices/millenial-marketing-strategy/#

Marketing to Millennials is admittedly a challenge. They are as interested in car-sharing as car-buying. Owning a home is less important than being close to the action. They don’t read newspapers or watch commercial television. Their choice of channels seems to change regularly.

To get a better handle on Millennials, a real estate company commissioned a survey and discovered online video advertising is the best vehicle to engage this target audience. Not exactly a eureka moment, but it does confirm – at least for now – that online video still holds appeal.

Online video ads are not a silver bullet. According to the survey, 21 percent of the 1,100 Millennials interviewed said they engage with online video ads, contrasted to only 11 percent of people 39 years or older. Fourteen percent of Millennial respondents said they engage with social media ads with videos.

It’s worth noting, the survey indicated 31 percent of Millennial respondents say they don’t engage with online ads. More than four in 10 older adults say the same thing. That suggests Millennials are simply hard to engage with ads anywhere online.

What the survey underscores is the value of visual content. The second highest source of online engagement (17%) is social media ads with pictures. They attract the highest percentage (14%) of older adults, too.

Search engine ads work better to engage older adults (12%) than Millennials (9%). Display ads on websites and native ads don’t work that well with younger or older adults, based on survey results.

Tommy O’Shaughnessy of Clever Real Estate, which commissioned the survey, says, “In many ways, YouTube has assumed the functional role of television for Millennials. According to an eMarketer study, Millennials watch more digital video than traditional video content, making YouTube an incredibly important tool for marketers.”

He adds, “While Facebook is still the dominant social media platform and reaches the widest audience, the preferences of younger Millennials have begun shifting toward YouTube and Instagram, where video content is more readily available and more fundamental to the experience. However, despite the recent Millennial migration away from Facebook, ads run on the social networking megalith are still more likely to lead to a purchase than ads run on any other platform.” The migration of Millennials from Facebook appears to be tied to growing concerns about its privacy policies.

One nugget buried in the survey is that Millennials are 54 percent more likely than older adults to buy a product suggested by a social media celebrity. That may be the byproduct of older adult unfamiliarity with most social media celebrities.

It may not set apart Millennials from other adults, but the survey underscores they like to laugh and learn at the same time. “Marketing campaigns that provide value to their audience through funny and informative video content stand the best chance of engaging their viewers,” O’Shaughnessy says. “Humorous content is the most likely to strike a chord with millennials (44%), while informative content comes in second (30%).”

“Amusing and informative advertisements elicit good responses from Millennials and Baby Boomers, with the latter demonstrating a slight preference for informative ads,” he explains. “However, marketers need to exercise caution when trying to grab their audience’s attention with a shocking ad, as these performed abysmally across both generations – only 4% of Millennials and 3% of Baby Boomers stated that unsettling ads resonate with them.”

While Millennials, children of the digital age, pose unique marketing challenges, they are still part of the human race. “Although this generation has its idiosyncrasies, Millennial marketing is not such a hard nut to crack,” O’Shaughnessy argues. “Millennials crave content that feels valuable, honest, personal and sticks out from the rest of their feeds. The best way to accomplish this is to create video marketing campaigns that utilize influencers and provide funny, informative content to a brand’s audience.”

 

High Tech Giants Take Reputational Hit on Harris Poll

Big names in high tech suffered reputational blows in this year’s Harris Poll Reputation Quotient because of festering concerns over privacy issues. Amazon and Microsoft bucked the trend by moving up the ladder of reputational admiration.

Big names in high tech suffered reputational blows in this year’s Harris Poll Reputation Quotient because of festering concerns over privacy issues. Amazon and Microsoft bucked the trend by moving up the ladder of reputational admiration.

Privacy concerns, high-profile scandals and proposals to break up high tech monopolies has taken a toll on the reputations of Facebook, Google and Apple.

Once the darlings on the Harris Poll that measures the reputations of the 100 most visible companies in the United States, familiar technology giants have seen their reputational numbers slide this year. Apple went from number one in 2012 to 32nd this year. Google went from eighth to 28th in the same period. Facebook fell the furthest from 51st in last year’s list to 94th.

Amazon bucked the trend, but still fell from first last year to second. Microsoft rose two spots to ninth. The most impressive upswing was by Samsung that climbed 28 rungs to 35th. Sony scrambled up 21 spots to 31st.

Wegmans Food Markets claimed the top spot this year. Patagonia and L.L. Bean moved up to fourth and fifth, respectively. Other rising reputations were 21st Century Fox (up 21), Home Depot (up 14), Procter & Gamble (up 12) and LG Corporation (up 10). Mildly surprising gainers included JP Morgan Chase (up 11) and Royal Dutch Shell (up to 10).

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In addition to Facebook and Google, the companies with the biggest reputational dents in their hoods included Tesla Motors (down 39), McDonald’s (down 29), Target (down 23), Nike (down 23), Chick-fil-A (down 18), Comcast (down 13) and Sears (down 9).

Facebook’s slide from grace undoubtedly is linked to last October’s bombshell that hackers may have absconded with data from 30 million uses of the popular social media site. News since then hasn’t been much better. More concerns about unreported efforts by Facebook to monetize user data and a disclosure about a pending multi-million dollar fine connected with privacy.

"What was driving a lot of that decline was how Facebook became misaligned with American society,” Harris Poll CEO John Gerzema told USA Today. "Big Tech sort of became front and center as a societal fear.” Harris has found 69 percent of Americans regard privacy of data as extremely important. Only 15 percent of respondents think Facebook does enough to protect user personal information.

Apple had its privacy day in the court of public opinion when it was discovered the FaceTime App could be used for eavesdropping. Google suffered problems with its Chrome browser and disinterest in Google+. 

Gerzema credited Wegmans topping the list because of “its ability to build an experience and a community in its stores.” He said companies such as Patagonia and L.L. Bean saw rising reputations because of their “commitment to social values.” “It is important for companies to understand how important values are today,” he said.

 

Market Research as a Key to Managerial Decision-Making

Market research provides valuable insights for marketing, but it also can fill in a portrait of corporate performance from a consumer viewpoint that can inform managerial decision-making.

Market research provides valuable insights for marketing, but it also can fill in a portrait of corporate performance from a consumer viewpoint that can inform managerial decision-making.

Quality market research is as important to management as it is to marketing. Research findings convey meaningful information about a brand’s reputation, its market position and consumer profiles that are critical to effective management strategy.

Market research provides qualitative insights into how a company is performing, which can be as valuable as quantitative data and help avoid a strictly green-eyeshade perspective on a business. Numbers don’t lie, but they also don’t tell the whole story.

Management attention to market research offers a vein of information unavailable from a spreadsheet. The numbers may show you are losing money; market research may give you a window into why.

For a brand wallowing in failure, pages of data won’t reveal how to succeed. Market research might. If your customers are the heart of your brand, checking their pulse would be a direct way to chart the way back to sales and profitability.

Employee morale can be a blind spot for data-driven research. No set of numbers can accurately depict how a workforce relates to the brand it represents. Market research can identify lackluster employee support as an impediment to marketplace success. It also can uncover employee insights, based on first-hand contact with consumers and influencers, into how the brand can succeed.

One of the most dangerous dimensions of management is lighthouse decision-making. Top management is supposed to show the way and stay off the rocks. However, locked up in a towering precipice, managers can be isolated from emerging trends and new realities.

It is not a knock on data to say it is a stick-figure picture of the health of a business. Market research can add flesh to the stick-figure statistics that paint a fuller picture of corporate health and opportunity.

Good managerial decision-making should not be muzzled by biased views of market research, which can reveal more than the seasonal color preferences or the latest toy sensations. Managers should settle for nothing less than robust research findings, from as many and as varied sources as possible.

Knowing where your customers are headed can be as instructive as where your investors want to go. Savvy investors will want to know as much about your brand’s customer journey as they do about your return on investment. Both are important. Both are interrelated. 

Multi-faceted research delivers a more comprehensive picture of business performance and opportunity. Why settle for a segmented view based on data or a focus group when you can have a composite picture of your business? Problems are complex. Research should be complex, too.

 

 

Plunging Participation Rates Plague Telephone Surveys

Robocalls, caller ID and impatience with dinner-time calls have shrunk the number of people willing to be respondents for telephone public opinion surveys. Pew Research and others have shifted to online panel research, an alternative CFM has recommended for years.

Robocalls, caller ID and impatience with dinner-time calls have shrunk the number of people willing to be respondents for telephone public opinion surveys. Pew Research and others have shifted to online panel research, an alternative CFM has recommended for years.

Response rates to telephone public opinion surveys continue to decline, making them more expensive and less attractive than online panel research. We’ve been pointing to this trend for years. Now Pew Research confirms it.

The response rate on landline phones to survey calls in 1997 was 36 percent. In 2018, it fell to 6 percent. Potential telephone survey respondents have declined recently because of the surge in robocalls. Phones with caller ID also discourage answering unfamiliar rings and sometimes flag survey calls as spam.

This isn’t the end of public opinion research. Online panel research has represented an attractive and versatile alternative for some time. Participation rates tend to be higher, there is an ability to follow up with some or all of respondents and it appears participants are more candid online than on the phone. Participation is higher because respondents can answer survey questions when it is convenient for them, as opposed to when someone calls on the phone.

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According to Pew Research, low response rates on telephone surveys, especially ones that include cell phones, don’t equate to lower accuracy of findings. The real impact is higher costs. “This reality,” Pew says, “often forces survey organizations to make trade-offs in their studies, such as reducing sample size, extending field periods or reducing quality in other ways in order to shift resources to the interviewing effort.” Those trade-offs can lessen confidence in results.

Lower participation rates on telephone surveys aren’t new.  They have steadily declined since at least 1997. Rates stabilized around 9 percent in 2013, then started plunging again in 2016. Lower participation rates have persuaded Pew to conduct most of its US polling online using its American Trends Panel.

CFM has recommended online panel research to skeptical clients. To ease skepticism, we have benchmarked online results with results from telephone surveys, showing that results are comparable. 

As telephone survey participation rates have declined and sample sizes have been trimmed, panel research offers an affordable opportunity for larger sample sizes, often larger than even healthy telephone survey samples.

Larger sample sizes can increase the confidence rate for panel research by ensuring the samples are representative of the audience being polled. Larger sample sizes have another practical value – they allow for greater segmentation of respondent results, which can be valuable in reading poll results. For example, in political polling, it is useful to have reliable results by congressional districts as well as statewide.

Maybe the greatest value of online research over telephone surveys is the ability to follow up with respondents. This can take the form of sharing findings, asking follow-up questions or seeking views on subsequent, related information.

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Segmentation of panels allows segmented research. Follow-up questions can be directed at respondents based on their answers to questions. Online focus groups can be organized with respondents voicing a particular view. When we assisted Oregon officials in building a transportation funding proposal, we conducted online focus groups with respondents who expressed opposition to a gas tax increase, which produced useful information and an insightful dialogue among opponents that guided how the funding proposal was presented.

Telephone surveys have been a reliable research tool and still have utility. The ubiquity of cell phones, the surge of robocalls and the reluctance of people to interrupt dinner to answer survey questions are challenges that make telephone surveys a less effective option than before. The challenges are significant enough that panel research skeptics should put aside their doubts and talk to the firms that have spent time honing the use of online panel research.

Older Voters to Continue to Set US Political Agenda

Longer lifespans have many ramifications for housing, health care and mobility. They also have ramifications on US elections as the number of older adults continues to grow, packing even more clout on influencing political agendas by both Republicans and Democrats and perhaps deciding who will face off in the 2020 presidential election against Donald Trump.

Longer lifespans have many ramifications for housing, health care and mobility. They also have ramifications on US elections as the number of older adults continues to grow, packing even more clout on influencing political agendas by both Republicans and Democrats and perhaps deciding who will face off in the 2020 presidential election against Donald Trump.

The graying of America isn’t news, but the ramifications of a larger, older population on US elections may be underappreciated and undervalued in political campaign strategies, including for the 2020 presidential election.

Michael Hobbes, writing for Huffpost, says, “The US electorate is the oldest it’s ever been and will keep getting older for at least four more decades. Voters over retirement age will continue to dominate US politics until at least 2060.”

Not only are there more older people in America, Hobbes says there are more older registered voters who actually vote. Older voters take a different set of issues and perspectives to the ballot box than younger generations. And older voters are whiter and wealthier than younger cohorts.

“Older voters have unique characteristics and specific interests that transcend the Democratic-Republican divide,” Hobbes says. “From their economic circumstances to their demographic makeup, the concerns of older voters are only going to become more prominent as the baby boom generation enters retirement.” 

That’s why, he adds, politicians don’t like to cross older voters on issues such as Medicare and Social Security. In less obvious ways, they also recognize older Americans are largely white, traditional in their social views, more comfortable with the status quo and wealthier than the generations that follow them.

Washington Governor Jay Inslee is one of seven declared or soon-to-declare candidates running for president who is 65 years or older. President Trump is 72. Based on current polls, if Joe Biden enters the race as expected, he will be the Democratic frontrunner. Biden is 76. His closest challenger is Bernie Sanders who is 77.

Washington Governor Jay Inslee is one of seven declared or soon-to-declare candidates running for president who is 65 years or older. President Trump is 72. Based on current polls, if Joe Biden enters the race as expected, he will be the Democratic frontrunner. Biden is 76. His closest challenger is Bernie Sanders who is 77.

These tensions are evident in the mix of Democratic presidential candidates that stretch from young, fresh faces touting universal health care, free college tuition and transformational climate change policies to older, more seasoned pols who talk about preserving Social Security and Medicare and pursuing progressive legislation at a more measured pace. 

Young progressives point to the energy and new voters they are bringing to the Democratic Party. But in raw numbers, eligible voters who are 65 or older already outnumber Millennials and the gap is projected to grow larger over the next four presidential election years. That could heavily influence whether a fresh, younger face or a familiar, older face wins the Democratic nomination after the gauntlet of primary elections. Almost half of the declared or likely candidates for president in 2020 are 65 or older. 

Older voters have historically been more Republican than Democratic. Even though that is changing overall and especially in highly blue states, older adults as an age group are more moderate in their viewpoints. They tend to see themselves as the people who will have to pay for whatever policies are enacted. That reticence is almost hard-wired into the political process, according to Hobbes, and affects both Democratic and Republican policymaking. 

“To a great extent, older voters are still setting the agenda,” says Andrea Campbell, a Massachusetts Institute of Technology political scientist. “They’re incredibly important to both parties’ coalitions. Politicians remain reluctant to run afoul of older voters.”

As AARP bluntly said in its April 30, 2018 bulletin, “If candidates want to win, they better pay attention to the issues that matter to Americans 50-plus.”

 

Lessons We Learned from 50 Years of The Godfather

Few films of any generation have had the lasting impact as  The Godfather , which turns 50 this year. Amid all the violence, crime and intrigue, the movie conveys phrases and life lessons that have become everyday expressions and bedrock beliefs for many Americans.

Few films of any generation have had the lasting impact as The Godfather, which turns 50 this year. Amid all the violence, crime and intrigue, the movie conveys phrases and life lessons that have become everyday expressions and bedrock beliefs for many Americans.

The Godfather turns 50 this year, which is a reminder of how influential the trilogy has been, even though it tracks the lives and travails of a mobster family. 

Phrases derived from The Godfather such as “an offer you can’t refuse,” “it’s not personal, it’s business” and “time to hit the mattresses” have become everyday expressions. But the movie’s influence runs deeper to life lessons about power, family and even capitalism, according to Iris Milanova. “It has so much substance, and it offers some very important life lessons. That’s certainly an offer you can’t refuse.”

Here are some of the life lessons Milanova identified:

  • Don’t make promises you cannot keep. Your word is the most important thing that you have to offer.

  • Don’t involve yourself in other people’s personal lives. “Sonny, don’t get involved,” advised Carmela Corleone.

  • Family is the most important thing in life. “A man who doesn’t spend time with his family can never be a real man,” says Don Vito Corleone.

  • Don’t go against your own family. “Fredo, you’re my older brother and I love you. But don’t you ever go against the family again. Ever.” – Michael Corleone.

  • Keep your friends close, but your enemies closer. Always keep a watchful eye on your enemies and play life’s game of chess with precision, dedication and tact.

  • Establish friendships out of respect, business and trust. “Friendship is everything. Friendship is more than talent. It is more than the government. It is almost the equal of family.” – Don Vito Corleone.

  • Violence is the last option. “I don’t like violence, Tom. I’m a businessman. Blood is a big expense.” – Solozzo.

  • Build a powerful community. “Someday, and that day may never come, I’ll call upon you to do a service for me.” – Don Vito Corleone.

  • Don’t take things too personal. “it’s not personal, it’s business.” – Michael Corleone. 

Francis Ford Coppola gained fame by directing the three Godfather films, which he readily admitted “made me,” not the reverse.

Francis Ford Coppola gained fame by directing the three Godfather films, which he readily admitted “made me,” not the reverse.

Francis Ford Coppola, who directed The Godfather movies, wrote a new introduction to Mario Puzo’s novel to mark its 50th anniversary. One of his more interesting observations is that many of the life lessons espoused by Don Vito Corleone were actual expressions Puzo heard from his own mother.

“Mario told me that all of the great dialogue, those quotable lines he put into the mouth of Don Corleone, were actually spoken by Mario’s mother. Yes, ‘an offer he can’t refuse,’ ‘keep your friends close but your enemies closer,’ ‘revenge is a dish that tastes best cold,’ and ‘a real man takes care of his family,’ among many others, were sayings he heard from his own mother’s lips. Mario later wrote, ‘Whenever the Godfather opened his mouth, in my own mind I heard the voice of my mother. I heard her wisdom, her ruthlessness, and her unconquerable love for her family and life itself. Don Corleone’s courage and loyalty came from her, his humanity came from her.’”

Coppola revealed it was his sister who suggested the idea that Kay, Michael Corleone’s long suffering wife, would abort their unborn son. “I loved it because it seemed symbolic and the only way a woman married to such a man could halt the satanic dance continuing generation after generation.”

Many films are unforgettable and have intergenerational appeal. The Godfather is that rare cultural phenomenon that became part of our lives for 50 years – and counting. To turn Michael Corleone’s phrase, “It’s not business, it’s personal.”