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	<title>Goldsmith Strategic Services &#187; Restaurants</title>
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	<description>Perspectives on Consumers</description>
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		<title>Making Social Media (More) Relevant</title>
		<link>http://www.goldsmithstrategicservices.com/blog/internet/making-social-media-more-relevant/</link>
		<comments>http://www.goldsmithstrategicservices.com/blog/internet/making-social-media-more-relevant/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 22:05:27 +0000</pubDate>
		<dc:creator>Caryn Goldsmith</dc:creator>
				<category><![CDATA[Internet]]></category>
		<category><![CDATA[Trends]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Restaurants]]></category>
		<category><![CDATA[Social Media]]></category>

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		<description><![CDATA["Apps" are making smartphones more indispensable  - "stickier" to use a word from Web 1.0.  What about social media?  Is it aiming for "sticky"?]]></description>
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<p><!--[endif]--><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">Over the last year, “apps” and “social media” have gotten a lot of attention.  “Apps”</span><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;"></span><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;"> are making smartphones more indispensible &#8211; <span> </span>“stickier”</span><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;"></span><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">to use a word from Web 1.0.</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">And social media (Web 2.0&#8242;s driver)?  While there’s a lot of hype, we’re beginning to hear that interest among some segments is waning.  <a href="http://en.wikipedia.org/wiki/Robin_Dunbar " target="_blank">Dunbar’s Number</a> has been trotted back out as rationalization for the slowed growth.  (How many “friends” can you really follow?)</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">So, can social media be made more engaging and relevant with “stickiness”?</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">There are lots of folks out there trying, but the one concept that’s caught my eye for its potential “marketing legs” is location-based mobile services &#8211; such as Foursquare, Yelp, and Gowalla.  Foursquare seems to be the one to watch and it’s doing some interesting things.  Its site says:</span></p>
<p style="padding-left: 30px;"><em><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">foursquare is a cross between a friend-finder, a social city-guide and a game that rewards you for doing interesting things.  We aim to build things to not only help you keep up with the places your friends go, but that encourage you to discover new places and challenge you to explore your neighborhood in new ways.</span></em><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;"> </span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">Consider customer loyalty programs.  You login and say you’re at a restaurant.  That restaurant knows you’ve been there 10 times before and could reward you with a free dessert.  No cards to keep track of and you are engaged with the brand as you know your actions get you bonuses sooner.</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">A brand can promote its involvement via Twitter, at checkout, or wherever it makes sense.</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">Part of the social aspect comes from Foursquare’s “mayor” concept.  If you’re the most frequent visitor to a location, you’re crowned mayor.  A bit of a game or contest that could bring people in again and again.</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">What about brands without a retail presence?  Pepsi sponsored a NY charity event for CampInteractive:  every time New Yorkers checked in from any location with Foursquare, points were tallied and Pepsi gave money.  In this case, social engagement with a purpose.</span></p>
<p><span style="font-family: &amp;quot;Calibri&amp;quot;,&amp;quot;sans-serif&amp;quot;;">Even without charitable involvement or the “mayor” concept, this is a newer form of social media that provides something tangible to the user.  Consequently, in my view, a highly “sticky” idea.</span></p>
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		<title>Loyal Customers vs. Habitual Customers – There’s a Difference</title>
		<link>http://www.goldsmithstrategicservices.com/blog/brandconsumer-relationship/loyal-customers-vs-habitual-customers-%e2%80%93-there%e2%80%99s-a-difference/</link>
		<comments>http://www.goldsmithstrategicservices.com/blog/brandconsumer-relationship/loyal-customers-vs-habitual-customers-%e2%80%93-there%e2%80%99s-a-difference/#comments</comments>
		<pubDate>Tue, 05 Jan 2010 22:45:16 +0000</pubDate>
		<dc:creator>Caryn Goldsmith</dc:creator>
				<category><![CDATA[Brand/Consumer Relationship]]></category>
		<category><![CDATA[Consumer Insights]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Restaurants]]></category>

		<guid isPermaLink="false">http://GoldsmithStrategicServices.com/blog/?p=402</guid>
		<description><![CDATA[I read something recently about beer drinkers where the author said that Brand X customers were so loyal to the company that it didn’t have to worry about its core customers switching brands. Whoa.  There’s a difference between loyal customers and habitual customers.  In my experience, loyal customers are actively engaged in choosing a brand ...]]></description>
			<content:encoded><![CDATA[<p>I read something recently about beer drinkers where the author said  that Brand X customers were so loyal to the company that it didn’t have  to worry about its core customers switching brands.</p>
<p>Whoa.  There’s a difference between loyal customers and habitual  customers.  In my experience, loyal customers are actively engaged in  choosing a brand whereas habitual customers are no longer actively  engaged.  If another brand captures a habitual consumer’s  interest,  they could switch – a costly loss.  Is the beer company that confident  in their customers’ loyalty?</p>
<p>Quite a number of years ago, I was doing research in the high-end,  white tablecloth chain restaurant segment.  As I was moderating group  after group, I was met with silence when asking about their  decision-making process.  After the first group I thought “maybe it’s  me.”  During the second group, when I met with the same silence, I  probed even more.  By the third group, I’d figured out what was going  on.  Most of the target consumers were older and had been dining out 2-4  times a month at these high-end chain restaurants.  They’d been doing  this for so long they could no longer explain why they were doing it.   “That’s just what we do.”</p>
<p>The key consumer insight for the client was one they didn’t really  want to hear:  this restaurant segment was dying.  I believed it was  going to take some time, but two things were at play.  First, the  segment customers were older and in many cases were (literally) dying.   Second, target consumers &#8211; both younger and older &#8211; had more options  than ever before (Cheesecake Factory, PF Chang’s, Macaroni Grill, etc.)  and these options met their needs and were places friends and family  liked to visit.</p>
<p>While a few chain restaurants of this type still exist today, the  segment is almost completely gone.</p>
<p>Irrespective of segment or category, how can you engage your more  profitable customers to ensure their repeat business?  Is there a way to  make them brand advocates vs. passive purchasers?</p>
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