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Retail Marketers Are Bullish Moving Into 2018

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Nearly 90% of retail marketers will increase marketing spend this year.

By MediaStreet Staff Writers

RetailMeNot has released result of a study showing how retail marketers will expand their content, use their marketing spend and what they are planning in 2018 to better engage and convert consumers.

This year, 9 in 10 retailers will increase marketing spend, and marketers will spread their increased budget almost evenly among marketing channels such as social, mobile, brand and display. This move reflects the need to ensure that every customer is receiving information in the channel of their choice. Interestingly, 93% of mid-sized retailers (between US$500 million and US$1 billion in annual revenue) are increasing their budget compared to 86% of large retailers (more than $1 billion in annual revenue) indicating an increase.

“Retail marketers are no longer thinking in channel silos. They are approaching commerce holistically with an understanding that consumers are channel-agnostic,” said Marissa Tarleton, CMO, RetailMeNot. “Delivering an experience that meets the consumer in the moment across the shopping journey will be the pathway to success for brands.”

Tackling New Trends and Challenges

While trends like virtual reality are still an exciting frontier, most retail marketers have their sights set on more realistic forward-looking trends. More than half of retail marketers surveyed believe improving mobile web checkout capabilities (52%) and offering exclusive promotions for mobile app users (51%) will positively affect sales growth in 2018. Additionally, voice-assisted shopping is an area that 39% of retail marketers plan to implement, with many retailers hoping to capitalise on increased use of smart home systems and smart speakers.

About 50% of retailers indicated they will use multi-touch attribution in order to better monitor the quality of traffic from their advertising investments. Further, retailers will become more bullish on advertising fraud as they look to ensure that their marketing is reaching the highest quality audience. More than 6 in 10 retail marketers (63%) will increase their direct media buying in 2018 in order to better monitor the quality of their traffic from advertising investments.

Holistic Approach to Increasing Sales

Retail marketers are wisely embracing mobile as a conduit for sales both on the phone and in physical retail stores. Based on our survey, retail marketers believe mobile is the key priority for positively affecting sales growth, and 72% will use mobile marketing to drive in-store sales. Further, 82% will rely on mobile marketing to drive in-app sales.

As marketers look to increase revenue in the coming year, their team structures and channel approaches will evolve to become more cross-functional. In fact, 50% of retail marketers say that their mobile marketing team falls under digital marketing within their organisation, up from 41% in 2016.

Finally, promotions continue to be top-of-mind for driving sales. Most retailers (76%) plan to increase the amount of promotions they are offering in 2018, and 86% will partner with websites and apps that focus on deals, cash back and loyalty programs.

“The convergence between physical and digital shopping will blend even further this year,” said Tarleton. “As retail shifts continue, delivering seamless shopping experiences—be it in-store or online—are critical to success.”

RetailMeNot is a savings destination connecting consumers with retailers, restaurants and brands, both online and in-store. The company enables consumers across the globe to find hundreds of thousands of offers to save money while they shop or dine out.

 

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Are you a Tourism Marketer? Here’s What Travellers are Hashtagging the Most

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If you are marketing anything in the tourism game, this is what you need to know.

By MediaStreet Staff Writers

For those that are lucky enough to get away on holiday or go on an extended travel stint, we can predict what actvities you might be doing after a new study has been published by Hotels.com

The company have used a data-crunching bot to track what people are hashtagging the most on their sojourns. More than five million brags globally were analysed using a combination of Tweet data, Instagram posts and travel keywords and destinations mentioned on other social media. So here are the results.

Worldwide travellers are all about the culture: they enjoy musing around museums (300,000 brags), old-town charm (170,000 brags) and a spot of sunshine (130,000 brags), but they can also be found in floating restaurants, erotic museums and night markets.

TOP 10 GLOBAL THEMES

  1. Museum
  2. Rooftop bar
  3. Old Town
  4. Modern Art
  5. Opera
  6. Sunshine
  7. Olympic Games
  8. Cathedral
  9. Gallery
  10. Ballet

This travel bragging trend echoes the findings from the recent Hotels.com Mobile Travel Tracker report, which revealed that one in six travellers search social media before their trip to plan the photos they’ll take. And 56% of people surveyed admit to spending more than an hour a day on their smartphones while on holiday.

While travellers naturally brag about taking in the tourist hotspots and cultural offerings, more people than ever are sharing foodie ‘grams, shopping stories and luxe posts.

#Foodporn
You’re never more than an Insta-scroll away from #FoodPorn and the brag lists are brimming with culinary treats. Cakes in Stockholm and curry in Toronto spice up the brag lists, and New York steak and pizza both made the cut. Perhaps more surprisingly, enchiladas proved twice as popular as modern art in Mexico City, ice cream scooped 10% of all San Francisco brags and Jumbo Kingdom floating restaurant in Hong Kong took second place in the Hong Kong chart with more than 20,000 brags.

Shop ’til you drop
Shopping is a must-do for most travellers. Those visiting Paris brag more about the Rue Vieille du Temple, famous for its boutiques, than Le Louvre! Other top shop-spots included Bal Harbour in Miami, the Harbour City mall in Hong Kong, vintage shops in Melbourne and the stylish Cecile Copenhagen fashion brand made the Danish capital’s top 10.

Five-star luxury
When travellers check into a posh, luxury hotel they naturally want the world to know. The stunning 5-star Ritz Carlton in San Francisco topped the city’s brag list, the Four Seasons in Singapore proved brag-worthy and the Park Hyatt came in at number one in Seoul – most likely for its awe-inspiring rooftop pool.

Scott Ludwig at Hotels.com said, “Bragging about your travel experiences on social media has become the norm – if you didn’t get social kudos out of it, it didn’t happen!”

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Advertising in Fashion Magazines is Dead to us Now

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Now? Fashion brands are meeting with social media influencers directly.

By MediaStreet Staff Writers

Hundreds of NY Fashion Week influencers were invited to a party specifically held to put them in front of brands that want some of the spotlight. The party was held by a company called Influence, which connects brands and influencers. Together, they create social campaigns that expand visibility and engage new audiences for brands. The influencer gets paid, and the brands get to reach audiences that they might not be able to access using other methods. Welcome to the “now” of fashion and brand marketing.

Influence is a sister company to the already-successful operation called Newswire. Newswire currently have an online portal that publishes thousands of press releases every day. Journalists and influencers can go straight to company news, by keyword or subject search. This means that they can get their news directly from the companies, rather than have the interaction brokered through a PR agency. This renders the traditional PR agency almost obsolete.

The way the PR industry is changing is similar to the way that fashion magazines are going. Teen magazines and fashion publications are no longer the huge, powerful entities that brokered deals between brands/fashion houses and their audiences. Now, it is the online fashion influencers who have huge sway with their fans, and brands can contact them directly. This circumvents the hugely expensive fashion magazines, whose circulations are falling dramatically.

As an example, a top YouTube fashion influencer is Chriselle Lim. Her channel is growing at a breakneck pace. Her videos reveal how to transform basic pieces of clothing into stylish apparel. Chriselle has support from global brands such as Target and Estee Lauder.

The change in the way brands and fashion are marketed has been incredibly rapid. Fashion magazines? Pah. Now Facebook, Instagram, Twitter and YouTube are the place to put brand marketing spend.

But back to the party. The event hosted hundreds of NY Fashion Week Influencers at Manhattan’s chic Sixty Soho Hotel. Influencers and brands from across the globe arrived to share in networking and developing opportunities for campaign partnerships that strengthen an Influencer’s channel and widen content reach for brands. The party was also used to promote Influence.com itself. And it worked, because here you are, reading about this new company.

Said Director of Influencer Marketing, Magnolia Sevenler, “Whether you are an influencer or marketer, the Influence by Newswire platform provides a community to build your campaigns.”

According to Sevenler, the platform has been well-received from both marketers and creators for its simplicity and reach. “It’s exciting to see all the positive feedback…as we enter a new era of marketing, where micro-influencers can be rewarded for their passions and brands can reach new untapped audiences.”

The company has plans to expand its network and add additional features to enhance users’ experience. And it is doing this all because the fashion magazine industry is destined for a papery grave. It’s time to move on, people, and bring your marketing spend with you.

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Marketing Survey: Spontaneous Sex is the Best Kind

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Keep this in mind if you are marketing sexy products.

By MediaStreet Staff Writers

What does a company that makes sex products do for their annual Valentine’s sales push? They do a survey, to find out how best to market to their customers. And here are the results.

Valentine’s Day, it seems, is starting to suck for everyone. Singles have made it their own anti-holiday, full of memes and proclamations about the commercialisation of the day. But what about couples? Is it all it’s really cracked up to be?

A company called K-Y undertook a survey to find out how to best market their sex products to customers. And it makes for depressing reading. What was once thought to be a romantic and sexy day has become an experience full of pressure and hype. Pressure to buy the right card, pick the sexiest lingerie and have the most mind-blowing sex of your life – and you only have one day to make it all happen.

According to the Love All 365 survey, half of Millennials feel they are missing out if they don’t have sex on Valentine’s Day, but more than 60% of them report that the sex doesn’t live up to the hype. That’s a lot of lead up for a big letdown.

The survey further illuminates the Valentine’s Day tension by revealing that while 82% of people are more likely to have sex with their partner on Valentine’s Day, 83% report that sex is best when it’s impulsive versus planned. Preparing for sex at Valentine’s Day is certainly a faux pas many couples are guilty of committing in spite of the fact that, as the statistics affirm, our preference is for spontaneity.

The good news is that 97% of couples report that having good sex with their partners makes them feel more connected.

“We don’t want couples saving their ‘sexy’ for special occasions, when great sex can and should happen any day of the year,” said Nadja Korner, Marketing Director of K-Y. “Good sex helps strengthen the relationship, so instead of putting all your romantic energy into nights like Valentine’s Day, surprise your partner with that special sexy something on an unexpected night. After all, the essence of pleasure is spontaneity.”

So if you are creating an advertising campaign using a sexy theme, keep the idea of spontaneous sex in mind. Especially if you are targeting Millennials. ■

 

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Millennials Are Not All Alike (And They May Surprise You!)

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New research studying the millennials market has identified five unique subgroups.

A new research study from Zeldis Research Associates reveals surprising findings for marketers which belie the frequent mythology that Millennials are “all the same.”

Unlike many other market studies attempting to better understand Millennials as a single group, Zeldis researchers identified five Millennial segments based on income, attitudes, and other important factors.  This “Seen One Millennial and You Haven’t Seen Them All” study is part of Zeldis’ ongoing investigation into how marketers can better reach and successfully engage this group.

“Despite a lot of the media coverage we hear, Millennials are not one homogenous group, unfortunately and incorrectly characterised by a few negative stereotypes such as lazy or entitled,” said Zeldis Executive Vice President Amy Rey. “Our research shows that there are important differences among Millennials. We wanted to dispel some of the myths and help marketers better understand the nuances that will help make Millennial-targeted outreach, products and messaging more effective.”

Five Identifiable Segments

Based on online interviews with 1000 Millennials aged 21-36, the Zeldis researchers identified five unique segments:  Faithful Optimists (31% of the sample), Struggling Parents (23%), Secular Activists (22%) Tech-Savvy Independents (14%), and Pessimistic Conservatives (10%).  Some of their findings include:

– Faithful Optimists, the largest segment, tend to be joyful, hardworking, dependable, and religious. They are more likely to be non-white and heterosexual.

– Struggling Parents tend to be pessimistic about their lives and about the country. They don’t pay much attention to politics or technology. They are more likely to be white women with children and tend to be less educated and from rural areas.

– Secular Activists are more likely to be politically liberal, and to be pessimistic about the country’s future. They tend to be single, childless, and secular and are more likely to be part of the LGBT community.

-Tech-Savvy Independents are more politically conservative but also environmentally conscious. Optimistic about the economy, this segment has a higher proportion of males and non-whites, and tends to be from urban locations.

– Pessimistic Conservatives, the smallest segment, are likely to be from suburban areas. They tend to be religious and politically conservative. Skewing male and non-white, they have high incomes but are pessimistic about their economic future.

Though holding some attitudes and beliefs in common with other segments, each group showed nuanced differences that the Zeldis researchers believe are important for companies to understand and apply when marketing their products.

The full results are available at ZeldisMillennialsStudy.com.

 

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How Facebook’s Changing Algorithms are Impacting Publishers

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A study based on 33,000 videos posted by almost 300 publishers shows that for publishers, the struggle is real.

By MediaStreet Staff Writers

Social video creation platform Wochit today reported that Facebook’s de-prioritisation of publisher and brand content is already having a negative impact across video metrics.

The annual report  builds on insights published in the company’s quarterly indexes, informing brands, media companies and publishers of video trends and how to best leverage them to drive success.

So here is what you need to know:

  • Views are declining: Following significant increases in the first half of the year, declines of 8-15 percent in the second half point to the impact of changes in Facebook’s newsfeed.
  • Square is the winning format: As mobile is increasingly becoming audiences’ first screen, this format is proven to have a significant advantage over other aspect ratios, particularly in the increasingly important “comments” metric, which averages 5 times the average received by non-square video.
  • Video’s “1 percent” persists: The 1.2 percent of videos that get more than 1 million views continue to have a disproportionate level of engagement, receiving 38.7 percent of total views and 58.3 percent of total shares across all videos. While a higher number of page followers boosts the chances of virality, the number of smaller publishers achieving this level of success proves it’s not the only factor.
  • Longer videos get better results: Increasing in number but still a minority, videos longer than 90 seconds have considerably higher per-video metrics, receiving 52.1 percent more shares and 48.2 more views on average. This trend bodes well for the monetization opportunities of Facebook mid-roll, only applicable to videos of at least this length.
  • Average engagement per video is highest across all metrics in Latin American countries, with nearly triple (269.6 percent) the shares, 253.3 percent more reactions, 166.8 percent more views and 134.3 percent more comments.
  • All video is not created equally: Some content is simply more viral-ready, more a function of effective production techniques and compelling storylines rather than the result of artistry.
  • “In the Know” titles are popular but don’t perform: While video titles purporting to show something the viewer NEEDS to know are common, these videos receive considerably fewer views (15-70 percent fewer!) than average.

“While we’re only seeing the headlines about Facebook’s latest changes now, our 2017 report shows the impact is already setting in, and this makes it even more important for brands and publishers to know and act on trends,” said Wochit CEO Dror Ginzberg. “And let’s remember that, even with algorithm changes, Facebook is second to none when it comes to opportunity to reach and engage with audiences. The best way to capitalise on that is to focus on delivering great video storytelling that will create meaningful engagement with your audience. This was true before Facebook’s announcement, is relevant across platforms as well as owned and operated sites, and it will remain true after it.”

 

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Could Social Media Be The Ultimate Customer Service Channel?

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Could social media be realising its true calling as the ultimate customer service channel?

By MediaStreet Staff Writers

According to a new study released today, overall satisfaction is highest when customers ask questions or make requests via social media.

The study was conducted by J.D. Power, surveying people who were customers of mobile network operators. Said Peter Cunningham at J.D. Power, “Personalised feedback, rapid-fire response time and interaction with live humans are some of the primary factors driving the highest levels of customer satisfaction with customer service. And, increasingly, customers appear to be finding that formula through alternative channels such as social media. That doesn’t mean call centres and brick-and-mortar stores are no longer relevant; in fact, personalised assistance via phone, app and face-to-face are still critical to customer satisfaction.”

Following are key findings of the 2018 studies:

• Social channels will become front line for customer service

Among customers who ask a question or make a request, overall satisfaction is highest in the social media channel (838 on a 1,000-point scale) and the app channel (835). By contrast, overall satisfaction scores average just 797 among customers who handle these requests on the phone with a representative.

• The human touch still matters

Satisfaction tends to be much higher when customers use a channel that provides personalised feedback. For example, assisted care satisfaction is 26 points higher than unassisted care satisfaction (819 vs. 793, respectively), and satisfaction is 824 among customers who ask their question in the store channel vs. 797 among those who speak with a rep over the phone. Additionally, among customers who ask a question or make a request through their carrier’s app, overall satisfaction is 845 when they think they are interacting with an actual person vs. 800 when they think the system is automated.

• Video plays a key role

The channels with the highest first-contact resolution incidences are online videos (92%) and mobile app to research information (90%). Among customers who view an online video from their service provider, 34% say they “definitely will not” switch to a new carrier in the next 12 months vs. 21% among those who use the phone automated response system.

• Not-so-immediate gratification via email

While social, app-based and face-to-face customer support are prized by consumers for their personalised, rapid response, the average customer service response time via email is 32 hours.

Could Social Media Be The Ultimate Customer Service Channel? Soon, perhaps, it may be the ONLY service channel.

 

 

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Advertising Influences Millennials to Buy More Often Than Baby Boomers

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Millennials are more likely than older generations to try a new brand or product after seeing or hearing an advertisement. And who says advertising doesn’t work! It totally, totally does.

By MediaStreet Staff Writers

Millennials are more likely to make purchases after seeing or hearing advertisements compared to Gen Xers, Baby Boomers, and other older generations, according to a new survey from Clutch, a B2B ratings and reviews firm.

About 81% of millennials surveyed – those ages 18 to 34 – made a purchase after seeing or hearing an advertisement in the last 30 days. Baby Boomers and other generations over age 55, however, were not quite as influenced by advertising: Among those consumers, 57% made a purchase as a result of an advertisement.

These findings illustrate millennials’ higher tendency for “impulse buying” when it comes to new products and brands.

“Baby Boomers have already gotten set in their ways in regards to the brands they prefer, so an ad might not convince them to buy something,” said Rob Albertson, managing director of Bandwidth Marketing. “There’s an aspect of spontaneity in millennials that would cause them to try something.”

Millennials also trust advertising mediums more than older generations; 64% trust TV and print advertising, and 51% trust online and social media advertising. About 54% of Baby Boomers trust TV and print advertising, and just 27% trust online and social media advertising.

Millennials trust advertising more because they have more resources available to help them discover if a brand’s message is misleading.

“Baby Boomers come from a time when there were a lot fewer regulatory bodies in advertising,” said Julie Wierzbicki, account director at advertising agency Giants & Gentlemen. “For example, cigarettes used to be advertised as good for you, and we found out that these brands we thought were great were lying to us. Millennials feel like brands have to be honest because there’s so much more information out there, and if you’re doing things in a fraudulent or misleading way, it’s going to eventually come out.”

Consumer income is also a factor in advertising influence. The study found that 83% of consumers with a household income over $100,000 were more likely to make a purchase as a result of an advertisement, compared to 68% of consumers with household incomes of less than $49,999. This is due to a higher disposable income and more spending power.

Overall, advertisements influence 90% of consumers in their purchasing decisions, and consumers—regardless of generation—are most likely to make a purchase after seeing or hearing an advertisement on TV and in print.

Consumers view traditional advertising mediums – TV, print, and radio – as the most trustworthy, while they view online and social media advertising more skeptically.

The survey shows that advertising continues to influence consumers in their purchasing decisions, and businesses should advertise in order to reach consumers.

 

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Don’t Use Cute Kids While Advertising Your Charity – Your Campaign Will Backfire

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If you are selling clothes, use all the cute kids you want. But if you are advertising a charity, you need a different kind of kid.

By MediaStreet Staff Writers

When it comes to asking a stranger for help, being young, pretty, and the opposite sex greatly improve your odds. But when it comes to children suffering from the likes of natural disaster, poverty, or homelessness, a new study in the Journal of Consumer Research reveals that less attractive children receive more help than their cuter counterparts.

“Many charitable organisations use children in advertising and promotional materials. Our research examines how the facial attractiveness of the children in these campaigns affects the empathy and help received from adults,” write authors Robert J. Fisher and Yu Ma (both University of Alberta).

Too cute. Next!

In a series of four experiments, participants were asked to visit fictional websites where they were asked to consider sponsoring a child from a developing country. The authors then systematically varied the levels of attractiveness of the children featured on the websites as well as their levels of need.

Results showed that when the children were portrayed as having a severe need (for example, orphaned as a result of a natural disaster), their facial attractiveness had no affect on helping responses. In contrast, when their need was not severe, participants felt less compassion and sympathy for an attractive child compared to an unattractive child in an identical circumstance.

Also too cute. Go home!

The authors explain that this negative effect of attractiveness occurred because participants inferred that the attractive children were more popular, intelligent, and helpful than their less attractive peers. They also observed this negative effect despite the fact that the children in the studies were obviously too young to care for themselves.

These results offer practical implications for how children are portrayed by disaster relief agencies, children’s hospitals, and other charities. “We believe our research offers a positive and hopeful perspective on human behaviour because it suggests that when a child is in obvious need, even strangers can feel compassion and offer aid irrespective of the child’s physical appearance,” the authors conclude.

Fundraisers and marketers for charities, take note!

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What Drives and Destroys Brand Loyalty?

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It’s pretty much what you think, with a few surprises.

By MediaStreet Staff Writers

A new study shows that too many unsolicited emails and sales calls will significantly damage brand loyalty. Well it does in the IT industry anyway. While this study was conducted within the IT sales arena, wisdom from the findings can be applied to all industries.

The study was conducted by Spiceworks who announced the results of the new survey today. It explored how often IT buyers are contacted by sales reps and marketers, what drives them to engage with tech brands, and what drives and damages their loyalty to vendors.

The study, Brand Loyalty 101: Winning over IT Buyers, reveals 85 percent of IT buyers believe too many sales calls and emails from tech brands make them less likely to purchase from a vendor they’re loyal to. In fact, feeling bombarded by emails and calls is just as likely to deter brand loyalty as a security issue with a vendor.

“It’s no surprise that IT buyers react to value — they want reliable products, a fair price, and timely customer support, which all helps build a great brand experience,” said Sanjay Castelino, vice president of marketing at Spiceworks. “But this brand experience doesn’t start when a buyer becomes a customer. It starts with prospects, and if you’re continuously sending them irrelevant products and information despite low engagement rates, you’re starting in a hole that you’ll have to dig out of to eventually build brand loyalty.”

Great customer support and fair pricing are the top drivers of IT brand loyalty

In terms of how loyal IT buyers are to their current technology vendors, the results show more than 70 percent of IT buyers are loyal to their server, virtualisation, and networking vendors. About 65 percent of IT buyers are also loyal to their computing device and security vendors. However, they’re least loyal to their cloud-based service vendors (47 percent) and their IT outsourcing/consulting partners (52 percent).

When examining what drives brand loyalty among IT buyers, the results show more than 95 percent of IT buyers believe great customer support, consistently fair pricing, and a history of reliable products are important to driving brand loyalty. Ninety-one percent of IT buyers also believe access to technical experts at a company is important.

Additionally, when comparing the results by different generations of IT buyers, it’s evident creative marketing efforts are slightly more important to millennials than older generations. While 23 percent of millennials believe creative marketing efforts are important to driving brand loyalty, only 18 percent of Gen Xers and 13 percent of baby boomers said the same. The quality and frequency of communication from tech brands is also much more important to millennials than Gen Xers and baby boomers.

Over-Contact

The survey results show that on average, IT buyers are contacted by technology sales reps and marketers 13 times via email, five times via phone, two times via online forums/communities, one time via social media, and one time via physical mail per week. In some cases, IT buyers are contacted by tech sales reps and marketers up to 25 times a week.

However, the preferences of IT buyers aren’t always taken into consideration when it comes to how they want to be contacted by sales reps and marketers. Fifty-seven percent of IT buyers prefer to be contacted via email and only 8 percent of IT buyers prefer to be contacted via phone. Additionally, 36 percent of IT buyers prefer to seek out information on their own. In fact, 97 percent of IT buyers surveyed said they use online forums and communities to learn about new products, while 79 percent rely on tech news sites and 77 percent research new products via Google.

The vast majority of IT buyers won’t respond to a tech brand they don’t recognize

In terms of what motivates IT buyers to respond to a new sales rep or marketer, the results show a relevant product or service is most important. In fact, 77 percent of IT buyers said relevant products drive them to respond, followed by detailed pricing information (61 percent), detailed product specs (55 percent), a timely solution to a challenge (44 percent), and a free product trial (35 percent). However, only 12 percent of IT buyers said they’re likely to respond to sales or marketing outreach if they’ve never heard of the tech vendor.

When comparing the results by generation, it’s evident millennials are more likely to respond to sales reps and marketers if there’s a personalised message to them. Conversely, Gen Xers and baby boomers are more likely to respond if there’s a product or information that provides a timely solution to a challenge.

 

 

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