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THE AUTHORITY ON DATA-DRIVEN ENGAGEMENT & OPERATIONS
Customer Segmentation ❯❯
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Consumer Trends in Online Retail Continue to Shift During the Coronavirus Pandemic ❯❯ 14
The Value of Integrated DRTV and Marketing Channels in the Era of COVID-19 ❯❯ 16
How Marketers Have Responded to COVID-19
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Seeing Canada All New PRIZM System Identifies the Nation’s 67 Distinct Lifestyles
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Vol. 33 | No. 5 | May 2020 EDITOR Brendan Read - brendan@dmn.ca
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Consumer Trends in Online Retail Continue to Shift During the Coronavirus Pandemic
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Re-Opening the Economy: Who Will Get Their First Haircuts as Salons Open?
How Marketers Have Responded to COVID-19
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The Value of Integrated DRTV and Marketing Channels in the Era of COVID-19
Seeing Canada
EXCELLENT EXECUTION All New PRIZM System Identifies the Nation’s 67 Distinct Lifestyles ❯❯18 Latte Life, Boomer Bliss and Came From Away Good Client Relation Management among new population segments in a Crisis is Paramount DMN.CA ❰
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Customer Experience: Is it better to Optimize or Maximize? BY JOHN BARDAWILL
I JOHN BARDAWILL is the Managing
Director of TMG International Inc. and Chair of the Canadian Marketing Association’s Customer Experience Council. TMG International Inc. is a presenting sponsor at CMAcx, taking place on May 7, 2020.
n an age where digital reigns supreme, it’s not uncommon to see organizations enhancing their customer experience by using social media, e-commerce and web channels. Depending on the strategy behind the efforts, this can have mixed results. Take the example of a popular Canadian outerwear retailer. The company recently created a whole new retail concept with the goal of providing a superior customer experience. The concept on paper is great: Create a sensory experience that simulates an outdoor scene with temperatures that mimic real life in the winter and then allow customers to try on coats to see how warm they really are. If customers are impressed, they can order the coats for delivery through an in-store tablet, but they cannot take them home. Because of the highly customized nature of the journey, there are few people allowed in the store at any given time and there is typically a lineup outside waiting to get in. As a result, while the engagement level is high, sales may be limited, especially since this does not provide a solution for shoppers who need the coats right then, right there.
“Ultimately the goal is to optimize. Gain a deep understanding of the customer.” Now, let’s consider another example. A very small restaurant, recently named one the best new restaurants in the United States, was extremely popular—so popular that it was almost impossible for customers to get a reservation. Typically, patrons would have to reserve months in advance by phone. To maintain the high-quality experience of the restaurant, the owners provided exclusive, personal service and took care of most things themselves, including answering the phone. However, with the success of the restaurant, people clamoured to get a reservation but often found no one answered the phone or called them back. Finally, the restaurant set up a website that took reservations online and required the customers to prepay for their meal and wine. This allowed the owners to continue to provide a high-value experience to patrons while also knowing that they ❱ DMN.CA
had fully committed customers. After all, who would dare pay for a meal months in advance at an extremely popular restaurant and not show up? These two examples illustrate the difference between “maximizing” and “optimizing” customer experiences. Maximizing means companies are attempting to take advantage of every opportunity to make something great, grand or as large as possible. It is a bit like the old adage “go big or go home.” It is based on the assumption that by doing as many things as possible, there is a greater likelihood that customer experience will be improved. While it can result in some success, it does not always wow the customer and can often serve to confuse the retail value proposition, as is the case in the outerwear example. In the case of the restaurant, the owners had a great product and decided to just focus on optimizing the experience by leveraging web and e-commerce channels to make it easier for customers to make a reservation and pay their bill, thereby addressing a critical pain point. By aligning the channels to provide a better customer experience, the restaurant enhanced their existing value proposition through a small yet meaningful change. The challenge of maximizing versus optimizing customer experience is one that many companies are dealing with, without fully understanding the difference. In the retail environment, companies seeking to understand how to improve the customer experience will often create customer journey maps to identify all the opportunities. In that process, they happily announce they have identified hundreds of opportunities. With the overwhelming number of opportunities, organizations then make decisions on what to pursue, or maximize, often based on their internal wisdom on the assumption that doing something, or many things, will be better than nothing and will automatically result in an improved customer experience. They will then find ways of justifying the decision. Ultimately, the goal is to optimize, not maximize, customer experience. At its core, this involves identifying what the customer experience goal is and what needs to be done to achieve it. From there, organizations must gain a deep understanding of the customer, the tools and channels needed to improve their experience and the best ways to leverage those channels in an impactful way. THIS ARTICLE was provided by the Canadian Marketing association
(http://www.thecma.ca) MAY 2020
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Consumer Trends in Online Retail Continue to Shift During the Coronavirus Pandemic BY RYAN WILLIAMS,
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ith yet another month of social distancing behind us, we took another look at the performance of online retail during the coronavirus pandemic. Following up on a prior blog, where we focused on the CPG/Grocery, Home Furnishings, Consumer Electronics, and Events & Tickets categories, we are seeing that domains in the Events & Tickets category continue to struggle, seeing visitation at levels 75 percent below numbers we saw in February 2020. Visits to domains in the Home Furnishings category (which includes domains like HomeDepot.com and Lowes.com), were up more than 90 percent during the week of April 27, 2020 vs. the week of February 3, 2020, as people adhering to stay home guidelines likely continue to invest in home improvements. Weekly Visitation to Retail Categories Before the pandemic really took hold in the US, early March 2020 visitation to top retail domains looked relatively similar to early February 2020. However, by late March 2020, visitation trends shifted dramatically. Even as of early May 2020, we’re still a long way from what might have once been considered normal. Visits to Top Retail Domains A view into the rankings of the top 20 retail domains shows the shakeup we’ve witnessed since early February 2020. Below, we’ve ranked the top 20 retail domains by weekly visits as of the week of April 27, 2020 and have highlighted the change in rank for each domain since the week of February 3, 2020. Other than the top 3 sites, all other top 20 domains have seen a change in rank over the past 12 weeks. Domains like Costco, Overstock, Nordstrom and Michaels have performed well during the pandemic while department stores like Kohl’s and Macy’s as well as Walgreens have fallen in the rankings. Top 20 Retail Domains Overall, consumer spending in online retail across desktop and mobile was up 13 percent in March 2020 vs. March 2019 but, like with visitation, this varies greatly by category. The CPG/Grocery category has seen an explosion in spending as consumers flock to online food delivery services like Instacart and Doordash. ❱ DMN.CA
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Stephanie Parkinson, Comscore’s Senior Director, Client Insights, is also doing a series of insights that show a Canadian digital perspective on the impact of the COVID-19 pandemic on consumer behavior. Her ongoing posts provide an update as to how Canadians continue to engage with online content as of the week of May 4th–10th, 2020. Now entering the third month of the pandemic, Canadians have begun to show renewed interest in a few hard-hit categories, continue to find ways to connect with one another and are shifting their buying habits through digital media.
Meanwhile, consumer spending on Events & Tickets was down over 50 percent year over year. Based on visitation trends, Comscore has seen so far for April 2020, spending could fall even further for the Tickets category. RYAN WILLIAMS is Sr. Director, Client Insights
“Overall, consumer spending in online retail across desktop and mobile was up 13 percent in March”
Highlights Include: ❯❯ Digital consumption remains high, but has seen some slight downturns in consumption in recent weeks ❯❯ There is renewed interest in real estate and automotive content ❯❯ There continues to be growth in retail, especially in particular categories such as sports/outdoors and home furnishings. ❯❯ News and government sites appear to have reached a peak in visitation and engagement ❯❯ Canadians continue to find ways to connect and celebrate while social distancing For more detail please visit her work at www.comscore.com
of Comscore.
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All New PRIZM System Identifies the Nation’s 67 Distinct Lifestyles Latte Life, Boomer Bliss and Came From Away among new population segments BY RUPEN SEONI
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he number of high-rise neighbourhoods is increasing, nightclubs and catch meals at fast-food restaurants. exurban communities are disappearing and culturally In between are segments that capture the increasing popularity of diverse groups are moving to midsize cities beyond high-rise condominiums (New Asian Heights, Savvy Seniors), the growing Toronto and Vancouver. Those are a few of the trends prominence of the Millennial generation (Indieville, Social Networkers) revealed by PRIZM, the fourth generation of Environics Analytics’ and the emerging cultural diversity of midsize cities (Middle-Class Mosaic, (EA) popular segmentation system that reflects the latest data on Midtown Movers). The new edition of PRIZM features 14 predominantly demographics, lifestyles, values and settlement patterns. francophone segments, 17 segments with large numbers of immigrants With the Canadian population undergoing unprecedented change over and two segments—Diversité Nouvelle (New Mix) and Enclaves the last decade—not to mention the last few months—PRIZM sees the Multiethniques (Multiethnic Enclaves)—with a significant presence nation as 67 distinct lifestyle types that offer a revealing portrait of Canada of both francophone and immigrant neighbourhoods in the Montreal in the time of COVID-19. And as a new normal takes shape, PRIZM can help CMA. Although the number of francophone segments declined in the organizations better understand the motivations and behaviours of their new PRIZM, the number of segments with large populations of bilingual customers and track the recovery of businesses as the economy reopens. French-English speakers increased. Every ten years—the length of time it takes for new neighbourhoods to “PRIZM captures Canada’s changing society beyond the aging of the form—EA releases a new PRIZM that integrates the latest data and survey Baby Boomers and the Millennial generation coming into its own,” says findings to identify lifestyle segments. Among the new PRIZM segments: Jan Kestle, president and founder of EA. “At a time when businesses are Latte Life, composed of younger, single urban renters; Boomer Bliss, featuring older and mature, uppermiddle-income suburbanites; Came From Away, with its multi-ethnic, middle-aged urban renters; and Vie Dynamique, home to older, middle-income Quebec suburbanites. Based on data from a dozen privacy-compliant demographic, marketing and media sources, PRIZM allows decision-makers to analyze their customers and markets at the neighbourhood level anywhere in Canada. Businesses, not-for-profits and government agencies all use PRIZM for everything from designing marketing campaigns and choosing store locations to merchandising, mobile analytics and media planning across traditional and digital channels. By linking PRIZM segments to their own customer records, organizations can determine what their patrons are buying, doing and thinking—and the best way to reach them with the right products, media and messages. The latest edition of PRIZM provides fresh insights into the nation’s ever-evolving markets and neighbourhoods. At the top of the PRIZM ladder is The A-List, a cosmopolitan segment home to the nation’s richest couples and families. In neighbourhoods like Toronto’s Bridal Path and Calgary’s Elbow Park, residents fill their stately homes with original art, Toronto: The top ten PRIZM segments in the Toronto Census Metropolitan Area (CMA) reflect the cultural diversity of the area. The most wear designer clothes, buy organic food and own the common lifestyle type, Came From Away, is characterized by multi-ethnic, middle-aged urban renters. Representing 11 percent of all latest in mobile technology. By contrast, the poorest households, it’s found in dense, multicultural neighbourhoods such as Thorncliffe Park in the central east part of the city and Rexdale, northwest of the central core. Meanwhile, the second most populous PRIZM segment, Metro Melting Pot, represents about 10 percent of Canadians live in Just Getting By, a segment of all Toronto households and is known for its diverse, middle-income city dwellers. Members of this lifestyle segment live in long-established downscale neighbourhoods in cities like Oshawa and immigrant neighbourhoods like Jane-Finch in the northwest end of the city, Concord in Vaughan and Wexford in Scarborough. Other prominent St. Catharines. Here, younger singles and families PRIZM segments, like Eat, Play, Love and Indieville, consist of younger, educated singles and couples drawn to Toronto’s lively downtown scene. They live in urban core neighbourhoods like Cityplace, Liberty Village and Queen West. shop at discount department stores, unwind at local ❱ DMN.CA
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increasingly turning to data to make better decisions, PRIZM provides them with authoritative information about what’s really happening in Canada’s neighbourhoods.” Nearly a year in the making, PRIZM reveals important changes in Canadian demographics, lifestyles, behaviour and values that have occurred
over the past decade. Of PRIZM’s 67 segments—one less than the previous edition—62 are new, reflecting the ongoing evolution of Canada’s lifestyles. (The five lifestyles that remain from the previous system underwent economic and social changes, though not enough to affect the fundamental values and behaviours of the segment members.) The system has been built at the postal code and dissemination area levels—representing an average 20 households and 260 households, respectively—to deliver comprehensive information about consumers at all levels of geography. By linking PRIZM to dozens of databases from such sources as Vividata, Numeris and AskingCanadians™, EA offers users access to more than 30,000 variables across a wide range of topics— from digital and traditional media usage to finance, technology, retail and automotive preferences. Unlike other segmentation systems, PRIZM incorporates psychographic information to better understand the drivers behind behaviours and consumer choices. Social values data from EA’s sister company, Environics Research, played a key role in naming the segment Eat, Play, Love, which consists of younger, well-educated urban singles who enjoy dining at ethnic restaurants, play every sport imaginable and score high for supporting the value Sexual Permissiveness. Canadians most committed to the value Saving on Principle are found in Slow-Lane Suburbs, home to older and mature suburban singles and couples. Canada’s increasing urbanization is evident in PRIZM’s revised urbanity classifications. Gone is the exurban classification, the result of the nation’s big cities expanding and pushing suburban sprawl out into Vancouver: With 60 percent of residents foreign-born, the most common lifestyle type in Vancouver is a predominantly Asian segment. Asian Achievement is among the most affluent segments in Canada, with home values topping $1 million. These middle-aged and older exurbia. In the new PRIZM, the Canadian population is families reside in neighbourhoods such as Killarney and Oakridge in Vancouver. Top-ten lifestyle types include other Asian and South Asian four times as urban and suburban (54 segments) as it is segments as well as Suburban Sports, composed of younger and middle-aged suburbanites. With households earning $125,000 on average, rural and town (13 segments). And it reveals an entirely these upper-middle-income households live in communities like Campbell Heights in Surrey and Ladner in Delta. Another top-ten segment, Latte Life, is one of the youngest PRIZM segments and features single urban renters typically drawn to arts and entertainment districts. In new urbanity classification, “urban fringe,” characterized Vancouver, these residents can be found in the West End, close to Stanley Park and Kits Point. by communities once classified as suburbs—like Mississauga and Markham around Toronto, and North Vancouver and Burnaby in the Vancouver CMA—that have been absorbed by urban sprawl. Urban fringe segments include Mature & Secure (older and mature upscale couples and families) and Multicultural Corners (diverse, upper-middle-income families). But perhaps nowhere has Canada undergone more change than in the area of diversity. Since the previous edition of PRIZM, the number of culturally diverse segments has grown from 14 to 19, including Asian Achievement (successful, middle-aged and older suburbanites) and Metro Melting Pot (diverse, middleincome city dwellers). In fact, Canada is home to four predominantly Asian segments and two South Asian lifestyles. The system has even captured the diversity within ethnic groups. In Multiculture-ish, an upscale suburban family segment, residents speak more than a dozen different mother tongues at above-average rates—from Italian to Urdu to Bengali. An analysis of the nation’s ten largest CMAs (census metropolitan areas) also shows that culturally diverse PRIZM segments dominate these cities’ makeup— albeit in different ways. In Toronto the top PRIZM segments include Came From Away, Metro Melting Pot and Eat, Play, Love. Meanwhile, Vancouver’s top Calgary: The predominant PRIZM segments in Calgary reflect the growing presence of immigrants beyond Toronto and Vancouver. The top segments include Asian Achievement, Asian Avenues segment, Modern Suburbia, is home to upper-middle-class, multi-ethnic suburbanites and accounts for about 10 percent of Calgary’s (urban, middle-income Asian families and singles) and households. More than half its members identify as visible minorities and live in suburban neighbourhoods like Evanston and Sherwood in the north and Bridlewood and Evergreen in the southwest. In addition, members of midscale multicultural segments like Middle-Class Mosaic and Diverse & Determined (midscale, younger and middleDiverse & Determined are found in established neighbourhoods like Vista Heights and Castleridge, as well as less expensive areas such as aged city dwellers). And in Calgary, the three most Riverbend and Ogden. They’re joined by young singles and single-parent families in the Friends & Roomies segment, who gravitate to Calgary populous segments are Modern Suburbia (multi-ethnic neighbourhoods like Highland Park and Meadowlark Park. MAY 2020
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THE UPDATE CLUSTERS PRIZM segments capture current demographics, lifestyles, consumer behaviours and settlement patterns in Canada. PRIZM is the latest release of the pioneering segmentation system that classifies Canada’s neighbourhoods into unique lifestyle types. Continuing with methodology that integrates geographic, demographic and psychographic data, PRIZM incorporates the latest authoritative data from nearly a dozen demographic, marketing and media sources to help better analyze and understand customers and markets.
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Find Your PRIZM Lifestyle For more details about the 67 lifestyles and to look up your PRIZM segment, visit: prizm.environicsanalytics.com
Sample PRIZM Segments Among the new lifestyles that emerged in EA’s PRIZM segmentation system are three that reflect recent demographic trends:
Montreal: Cultural diversity has come to the largest city in Quebec. The most common PRIZM segment in the Montreal CMA is Diversité Nouvelle, whose residents represent 11 percent of the populace and live in communities like Champfleury and Vimont in Laval. In this segment known for large, multi-lingual families, more than 55 percent speak French and 20 percent speak a non-official language. The younger and middle-aged residents of the second most common lifestyle type, Jeunes Biculturels, include members of the first wave of immigrants to francophone neighbourhoods such as Ville Émard in Montreal. Today’s households include children of the immigrants who arrived 20 years ago, and their neighbourhoods are more diverse, with over a quarter of the segment identifying as visible minorities. Another prominent Montreal segment, Vie de Rêve, is the wealthiest of all francophone segments, and can be found in off-island suburbs like Saint-Bruno-deMontarville and Blainville.
younger and middle-aged suburbanites), Middle-Class Mosaic (middle-income urban homeowners) and Multiculture-ish. Danny Heuman, EA’s Chief Analytics Officer and the chief architect of PRIZM, observes that despite these segments’ differences, the vast majority of immigrants gravitate to Canada’s largest cities for similar reasons. “They’re drawn to these cities for job opportunities and to be close to others who share the same language, culture and ideals,” says Heuman “At the same time, these immigrants have chosen Canada because of the harmonious diversity among the population.” PRIZM’s ability to reveal trends in Canadian lifestyles has been a boon to organizations seeking to engage with specific markets. Banks like CIBC use the segments to understand their customers’ financial needs and develop the right messages to reach them. Toronto Fire Services used PRIZM to promote fire safety, reaching citizens most at risk with an education campaign using out-of-home and digital media. An oil company seeking to grow revenue at its 400+ gas station convenience stores used PRIZM and several PRIZM-linked shopper surveys to optimize each store’s layout, identify trade areas and competitors, and develop promotion campaigns that varied according to the time of the day. With the new PRIZM, marketers will be able to easily identify segments that rank high for large families (South Asian Enterprise), people who work from home (Downtown Verve) and ❱ DMN.CA
households that have recently moved (Social Networkers). The segmentation system also reveals consumption communities, including segments where residents share a passion for baking from scratch (All-Terrain Families), buying produce at farmer’s markets (Latte Life), wearing Fitbits (Turbo Burbs) and listening to country radio (Agri-Biz). “The days of one-size-fits-all marketing are long gone,” observes Kestle. “Today’s organizations want to better understand who their customers are, how they can better engage them and where they can find more of them. With PRIZM, they can develop marketing strategies and campaigns that are relevant, privacy compliant and cost effective. And as the economy rebounds in the coming months, PRIZM will help companies reconnect with their loyal customers and address pent-up demand.” From the socioeconomic heights of Canada’s big cities to its heritage-rich small towns, PRIZM reveals what makes each segment unique and how they all contribute to the national tapestry. With this latest release from EA, Canadians can see for themselves the remarkable diversity in their lifestyles. And organizations seeking to connect with Canadians can see a clear path to understanding their needs in the new normal. RUPEN SEONI is Senior Vice President and Practice Leader at
Environics Analytics, leading the practice area that includes the public sector, health care, energy and not-for-profits.
07 Mature & Secure Emblematic of Canadian’s aging society, Mature & Secure consists of older and mature couples and families aging in place in urban fringe neighbourhoods. More than half the maintainers are over 55 years old. About 80 percent of this segment’s households live in Canada’s largest markets. University educated, those still in the workforce earn upscale incomes from management and white-collar positions. Financially secure, many have the time and money to attend arts, cultural and professional sports events; they particularly like watching tennis, golf and hockey matches. 15 South Asian Enterprise Reflecting Canada’s increasing diversity, South Asian Enterprise is an urban crossroads. Nearly 60 percent of the populace are immigrants and half the members identify as visible minorities from South Asia. The segment contains upper-middle-class families living in a mix of new singles, semis and duplexes. Few segments have larger households: nearly 60 percent contain four or more people. They enjoy swimming, baseball and racquet sports, as well as visiting theme parks and museums. Many represent a prime market for casual clothing, mobile phones and online courses. 22 Indieville Indieville is a classic urban hodgepodge: a mix of younger and middle-aged maintainers, singles and couples, and first- and second-generation Canadians. Drawn to the vibrant, urban core of the nation’s big cities, most residents live in Toronto. Residents here typically live in older, low-rise apartments, duplexes and semi-detached dwellings. And most have active social lives, going to nightclubs, sports bars, pop concerts and art galleries. Tech-savvy, they like to shop online for books, music, fashion and groceries. MAY 2020
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Re-Opening the Economy: Who Will Get Their First Haircuts as Salons Open? BY RUPEN SEONI
A
fter months of stay-home advisories, physical distancing and business closures, Canadians everywhere yearn for some semblance of normalcy as some business owners cautiously began opening their doors again, albeit under many restrictions. But which Canadians are most likely to go out and about? More specifically, which are most likely to head out for that most mundane but essential activity: getting a haircut? To find out, my colleagues and I at Environics Analytics (EA) turned to a privacy-compliant database called MobileScapes, which was developed from aggregated mobile phone movement data from multiple sources. Then we analyzed the results through the lens of our new PRIZM segmentation system and SocialValues psychographic indicators—all to predict which population segments will be first in line when hair salons open and which will be conflicted and prefer to stay away. Here is how we broke it down: First, we assume that people in PRIZM segments with high scores for the social value Concern for Appearance will be most eager to get their hair cut. The map below shows locations in the City of Toronto with high concentrations of this population. Compared to national averages, Toronto tends to score average to well above average on Concern for Appearance. There are relatively few below-average areas on the map. (Advice to nonTorontonians: bite your tongues!) The dark red areas (well above average) tend to be relatively affluent neighbourhoods, with many of the lighter red ones (above average) containing either younger singles and couples (near downtown) or culturally diverse families (to the north and east). But some of the PRIZM segments with significant Concern for Appearance also score high on a social value called Effort for Health, which could counter their desire to get that haircut for fear of COVID-19 exposure. We also took into account the segments’ mobility rates—their so-called Out-And-About Rate—during last month’s Victoria Day weekend as an indicator of their willingness to leave their home area. We’ve organized our predictions into two groups: 1. First in Line (high Concern for Appearance, low Effort for Health, above-average Out-and-About Rates) 2. Want To But Won’t (high Concern for Appearance, high Effort for Health, average to below-average Out-and-About Rates) While the haircut example is tongue-in-cheek, it does illustrate the need to draw on a combination of data sources—both data with timely insights and those with great depth—to support effective decision-making and outreach in a rapidly evolving crisis. Understanding how different populations behave helps many organizations, including retailers trying to decide which locations to open first and health agencies seeking to launch more targeted programs and communications. In addition, this kind of analysis gives governments and financial services more current data to monitor how the economy is recovering in different communities and among different populations. MAY 2020
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RUPEN SEONI is Senior Vice President and Practice Leader at Environics Analytics, leading the practice area that
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The Value of Integrated DRTV and Marketing Channels in the Era of COVID-19
BY ADAM SEABORN
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t’s no secret that during an economic downturn, business will be faced with choices of where to cut spending and allocate resources. Decreasing your advertising spend should be your very last resort. The short-term cost saving of cutting advertising spend will have long term effects that both damage your brand and sales for years to come. Analysis by Kantar media shows that in the TV ad domain, long periods of time off the airwaves hurt brand strength, brand loyalty and sales. It can take years to recover from a lack of exposure ❱ DMN.CA
on TV. Brands that are consistent TV advertisers and then take up to 6 months off will likely see a 5-10 percent decline in brand equity and it can be impossible to regain that market share. This is even more true for Direct Response TV (DRTV)
but an opportunity to double down on DRTV as an ad platform and continue to spend on advertising. With governments calling for workers to work from home and practice social distancing, it’s no doubt that TV viewership will be
“The power of DRTV to reach those audiences should not be underestimated” advertisers who know the value of each and every spot on air. Companies should look at this moment in time not as a challenge
heightened as workers adjust to a different daily routine. Decreased visits to retail chains will also mean an increase in e-commerce
business, direct and Amazon sales. The power of DRTV to reach those audiences should not be underestimated. Look at a brand like Navage Nasal Care, a leading manufacturer and distributor of saline nasal irrigation products that uses DRTV as a core pillar of its business. Running DRTV spots in low demand periods, brands like Navage and others can take advantage of increased bonus airtime, decreased CPMs and overall lower cost per customer acquisition. Navage is now a category leader in volume and sales in the nasal products industry. It has manufactured more than 50,000,000 SaltPod® capsules per MAY 2020
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DRTV
Canada vs. the US for DRTV We often like to think of Canada and the US as identical markets, with the same brands, consumer habits and overall approach to purchase decisions. While Canada and the US do share the largest border in the world and most cultural norms, there are key differences when running a DRTV campaign. First, Canada is a market made up of large rural communities and just a few “major” metropolitan areas. Toronto (and the Greater Toronto Area) consist of a population of approximately 8 million people, when compared with our neighbours to the south, that would be the 4th largest market in North America. However, beyond Toronto, dense urban populations are scarce. Montreal is the second largest market, however 50 percent of the TV and content consumption happens in French as opposed to English and Vancouver is a distant 3rd with only around 3.5M people. When planning for DRTV, advertisers need to ensure they have creative in both English and French in order to access the Montreal and greater Quebec market. When considering DRTV in Canada, I would suggest breaking the country into two regions: English and French and targeting each as their own test market. In the 2008 economic downturn we learned that another key differentiation from the US is that Canada’s banks are robust and able to withstand a credit crunch during times of uncertainty. This means that when it comes to consumer confidence in borrowing and unsecured debt, Canadians are typically in a better financial situation than our American neighbours and likely to have more access to disposable income for product purchase. Canada can be an excellent place to launch a DRTV product and get a low-cost beta test on results and creative or offer tweaks that might help conversion. MAY 2020
year and late last year sold its one millionth nose cleaner. This category dominance can be attributed to a direct selling approach and longterm commitment to DRTV as a core strategy for growth. DRTV has the added benefit of being a direct selling platform while building brand recognition and helping top of the funnel growth for digital conversion. Customers who search for brands after seeing a DRTV spot and don’t instantly purchase are still valuable as digital retargeting can help drive them down the funnel and covert a prospect to sale over time. So, what are best practices for an integrated DRTV campaign? You need three key pillars to build your campaign around 1. Know your audienceWhen running a brand response campaign, advertisers may wish to use a broad spectrum of targeting, and appeal to the nation as a whole. While this may seem like a plausible idea in theory, it is better to define a few personas the campaign is aiming to appeal to. Analyze things like general income, access to a device, general interests that relate to your brand to build a better picture of who you should really be after. Media buyers make use of that information in order to make their decisions, so the closer you can define your ideal viewer, the better your chances are at reaching them. 2. Perfect your creative More than ever, the stakes for a brand response campaign are high. Viewers will not engage with just any spot they find on TV; they now react especially well to brands who appeal to social issues and human values, so that is worth making a note of. In order to resonate with these people, you must ensure that as a brand response campaign centered around building brand awareness and identity, your creative communicates
“More than ever, the stakes for a brand response campaign are high” exactly that, by choosing a social issue or a human value that aligns with your company. Most importantly, make sure your TV and digital media are cohesive and work in unison. This is done through ensuring that creatives on each medium are aligned in terms of design, and video ads you choose to run online be a shorter snippet of your TV spot, or reference it in some way. 3. Wait and optimize All of us are hoping that we launch a DR campaign and at the end of the first month we are blown away with results and see huge returns on our investment. The reality is that this is rarely the case. The brands that excel in DRTV adverting are patient and ensure they analyze the success of the TV campaign in terms of their chosen
Key Performance Indicators that relate to branding and brand response. These include brand recall, ad recall, viewing time and of course sales. It often takes a spot a number of weeks in the market before significant returns are realized and the media buyers are able to properly target the best audience and find efficiency. In 2020, every campaign should be fully integrated and ensure that customers who initially are introduced to a product via DRTV are able to find, engage and transact with that product online. The brands that can marry the two, remain on TV during the tough times and tell their compelling story, will ultimately win the day. BY ADAM Seaborn, Director of Sales and Media
Operations, Kingstar Media.
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COVID-19
How Marketers Have Responded to COVID-19 BY JOHN WILTSHIRE
M
arketers play an important role in supporting our communities. They can inspire those in a position of strength to support those in need. It is this call to action that has provided the passion, commitment and resiliency that will lead organizations through this unprecedented event and help make a difference for communities impacted by the pandemic. Whether re-tooling products or services, donating profits to an important cause or launching other innovative initiatives, members of our profession have banded together to find creative ways to solve this extraordinary challenge. How this has affected marketers Everyone has been impacted by the COVID-19 pandemic, whether professionally, personally, or both. It takes a great deal of strength and perseverance to help others while being affected yourself. Though the responses by different organizations and the circumstances of everyone have differed, the shared experience is the absence of in-person connections with family, friends, clients and colleagues. As a profession that focuses so heavily on developing and maintaining relationships, we understand and
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appreciate how severely this affects us all. Organizations had to pivot quickly to continue offering services and benefits while navigating the intricacies of working from home and a new “normal”. Given the creativity of our industry, it is no surprise that marketers are finding ways to adapt to these ever-changing conditions while still maintaining the fundamentals of marketing within the standards and ethics expected of them. At the Canadian Marketing Association (CMA), we adapted our work-from-home policy and developed new ways to offer our complement of online and webinars to help marketers meet their learning needs. While our series of in-person experiences were postponed, our face-to-face meetings turned into video conferences. As this dynamic situation continues, we continue to consult with marketers to hear how they’re coping and what they need in these uncertain times. Increased generosity and support The continued spirit of marketers has been deeply inspiring. An outpouring of people and organizations wanting to create positive change has been a continuous reminder that we are in this together. The creation of the Marketers
Respond feature on CMA’s Marketing Connected platform highlights some of these impressive and important marketing initiatives optimistic and innovative marketing professionals are taking to mitigate the impact of this crisis. Donations for organizations across the country Many of those in the not-for-profit sector who rely on donations and fundraising efforts to support vulnerable individuals and groups have had to cancel major fundraising campaigns, and many find it difficult in today’s environment to ask for donations. To this end, a number of partnerships and proactive sponsors have contributed vital sums of money to help the people who turn to these organizations for help. ❯❯ HSBC Bank Canada announced a $500,000 donation to support food security, community agencies and essential social services for those who need it most at three organizations: Food Banks Canada, Breakfast Club of Canada and United Way. ❯❯ Loblaw Companies provided $5 million to certain food banks and community charities, including Food Banks Canada, Second Harvest and Community Food Centres Canada. ❯❯ TELUS committed $10 million to help urgently support and
enhance public healthcare capacity and community response across Canada, including purchasing new medical equipment and increasing support for food security, outreach to isolated seniors, virtual education programs and mental health initiatives. Providing essential supplies for those who need it most Some of these organizations wanting to make a positive change have taken an alternative route to helping those in need. Outside of financial contributions, there have been a number of examples of those who have converting some or all of their manufacturing processes to provide supplies for people, including healthcare professionals, to combat potential shortages while everyone helps to flatten the curve. ❯❯ Harry Rosen repurposed the production of their signature dress shirts to produce protective non-clinical face masks and donating them to hospitals in need. ❯❯ Labatt Breweries of Canada shifted its production from beer to hand sanitizer to fight the spread of COVID-19. ❯❯ Spin Master has helped fill the need for personal protection equipment with the goal of CONTINUED ON page 17
MAY 2020
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Resource Directory DATA ANALYTICS
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CANADA’S SPECIALIZED PROVIDER OF DECEASED CONTACT DATA Canada’s most accurate and up to date deceased list. Information direct from funeral homes, estate executors and families of the deceased. Registrations are validated and by consent only. WWW.CANADADECEASEDLIST.CA 1-877-565-5515 INFO@CANADADECEASEDLIST.CA Date:
July 4, 2013
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How Marketers Have Responded to COVID-19 CONTINUED FROM page 16
producing more than 10,000 face shields a day for front-line workers.
13-07-04 10:43 AM
Collective empathy As this new normal persists, we will continue to see new examples of marketers stepping up and positively impacting their communities. Society needs the can-do attitude of marketers now more than ever and
they are delivering. For more initiatives that Canadian marketers have been spearheading with their organizations, please visit Marketing Connected on the CMA’s website. If you are a member of the CMA with content to share, please contact us. JOHN WILTSHIRE is president and CEO of the Canadian Marketing Association.
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EXCELLENT EXECUTION
Good Client Relation Management in a Crisis is Paramount BY COLIN TAYLOR
A COLIN TAYLOR is CEO & CCO
(Chief Chaos Officer) of The Taylor Reach Group, Inc.
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pproaching day 80 of the COVID-19 shutdown, there has been a lot of discussion around what COVID-19 has done to our society, our economy, our elderly and; if you live in my little corner of the world; our customer experiences and contact centers. Contact centers for many organizations could not stop operating, so they pivoted to a Work-From-Home (WFH) model, deployed additional communication channels (think chat, text and messaging) and looked for high-volume, low-complexity tasks that they could automate. As we are starting to see the economy open up again and people returning to their offices, one of the biggest question for contact center operators is “What will my contact center look like in 6-12 months?”. Without a crystal ball the answer cannot be known with absolute certainty, but we can make an educated guess. The question actually infers two other related questions: first, “What is the future for my ‘bricks and mortar’ center?”, and second, “How will we operate WFH gong forward?”. So, lets answer these two questions first as they will inform the “What will my center look like” question. The medical experts have told us that without a vaccine or effective treatment, we need to get used to social or physical distancing as these practices will help us to keep the virus at bay. So, if we look at our contact centers, we will typically see rows of workstations set up back-to-back with narrow aisles in between. Managing effective physical distancing in this environment is challenging. Most contact center workstations are 4’ wide, though some are 5’ and even 6’ across. This means that you can’t have a person in any adjacent workstation with violating the 6-foot rule of social distancing. In typical row layout with 4- or 5-foot workstations, each agent is surrounded by five empty workstations in their row and will likely have
3 empty workstations on the row their back faces to ensure a minimum of six feet of distance. When we do the math this equates to a third or less of the center seats being usable. Depending upon your layout your actual mileage may vary. But without any other calculation, we can quickly see why WFH is going to be a part of many centers’ future for some time to come. Of course, operating your physical center with social distancing will present other challenges, including training rooms and conference rooms, as many offices will become unusable for meetings, lunch and break rooms, washrooms, locker rooms, smoking areas and even the parking lot. At the end of the day, if you can run your bricks and mortar center at 30 percent of capacity you are doing well. As we can see from the above calculations if center operators need a similar number of agents in a post-COVID-19 world as they did beforehand, then two-thirds to 70 percent of their agents may be work-from-home. This quick mathematical exercise aligns well with the research that Taylor Reach has completed on contact centers and their plans for Work-from-Home. In our research survey of 136 contact center operators, we found that overall just 23 percent of agents were work-from-home prior to the present crisis. This increased to 87 percent of agents being work-from home today. When asked to estimate the percentage of their current work-from-home agents that would be work-from-home in 12 months, 9 percent of respondents stated that they would have more agents working from home than today, and 37 percent will have more than 60 percent of their current WFH agent count still working from home. The research mentioned above will be published in an upcoming white paper “The Bumpy Road to WorkFrom-Home”. If you are interested in receiving a copy of this white paper please send us a note. MAY 2020