Digital American Newsletter

Subscription boxes — like Birchbox and NatureBox — are a $5 billion business, with annual sales growing roughly 200%.

That may be only the beginning.

6% of Americans have signed up for a subscription box. An additional 38% are considering it. That number increases to 60% among trend-setting 18-35 year olds.

Subscription boxes tap into several growing consumer trends. They allow people to indulge in self-gifting. Create anticipation and surprise. Let consumers sample new products — an experience that is mostly missing from online shopping.

Americans expect to receive merchandise worth twice their monthly fee, at least partially because they don’t know if they will like the contents. This business model works for subscription companies because many brands are willing to provide free products, believing the boxes are great marketing tools.

Personal care products, food, and clothing are the most popular subscriptions. But, over 4000 services exist, offering everything from art projects to collectables.

Some experts believe the subscription trend has peaked. Others say that increasing web searches, more member sign ups, and consumers’ rising interest in boxes all indicate the category is in its infancy.

What are the implications for your business?

• Have you tested including samples of your product in others’ subscription boxes?
• Have you analyzed the pros/cons of creating your own subscription box service?

For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.

Sources: Forrester Research 2015, MCV 2015, Wired 2015

Email doesn’t sound as sexy as Snapchat or Periscope, but boy does it work — even better than in the past.

Here are the fast facts.

• Email open rates have increased 10% in the past year after rising 6% the previous 12 months.
• 59% of consumers say that emails influence what they buy.
• The #1 way emails impact purchases is by reminding consumers to shop.
• The number of Americans that receive marketing emails and then interact with the brand is at an all-time high.
• Only 29% of consumers have a separate address for marketing emails. Even then, over a third check that email multiple times during the day.
• As of mid-2015, more people open emails on mobiles than on desktops/laptops.
• Consumers who open emails on their smartphones are more likely to buy than those who use other devices.
• The ideal frequency for marketing emails is once a week.
• Almost half of people who unsubscribe from lists would stay if they were offered the option to receive emails less frequently.

What are the implications for your business?

• Are you spending enough time/money on your email marketing?
• Have you spent time optimizing everything about your email marketing from responsive design to path-to-purchase?

For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.

Sources: Blue Hornet 2015, Marketing Charts 2015, Media Post 2015, YesMail 2015

Consumers are purposefully shaming brands on social media in order to get good customer service.

The scenario goes like this. A guy is moving across country and the van doesn’t show up on time. He calls his account rep. No answer. He sends an email. No answer. After an hour, he posts a “very direct” comment on the company’s Facebook page. He gets a quick response and the move is back on schedule.

I bet next time he has a customer service issue with any company he will post on social media first. And, his comments may not be all that polite, because he has learned that an angry post gets a quick response.

This is not an isolated incident. Most people have a similar story.

In their efforts to be responsive on social media and keep conversations positive, brands are focused on social customer service. Sometimes they do so at the expense of other channels.

That’s a huge mistake. Brands are training their customers to post negative, emotion-filled rants on social media — because that is the best way to get a fast reply. Wouldn’t everyone be happier if companies responded with the same urgency to phone and email requests for service?

What are the implications for your business?

• How many negative comments on your social media are the result of consumers not getting answers via other channels?
• Are you tracking the response time in all your customer service channels, not just social channels?

For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.

More Millennials and Gen Xers watch YouTube than cable TV each week. What’s more, 43% of Boomers watch YouTube weekly, more than watch network TV.

If that doesn’t make you sit up straighter and say, “We really should focus more on our YouTube marketing,” here are 6 more fascinating facts about YouTube’s growth, power, and marketing potential.

1. The average user watches 40 minutes of YouTube during each session on their mobile device. Last year, that number was 27 minutes.
2. Consumers now spend 60% more time on YouTube each month than they did a year ago.
3. YouTube’s homepage traffic has tripled in the past 12 months.
4. Funny videos are the #1 type of content shared on social media. Many of them start on YouTube.
5. 13-18 year olds’ favorite stars are all YouTubers, not mainstream celebrities. These stars are viewed as more authentic and relatable than traditional Hollywood personalities.
6. YouTube is one of the top four brands with buzz among Millennials, Hispanics and African Americans.

At the same time, traditional TV viewership continues to decline among all Americans, especially Millennials.

What are the implications for your business?

• What roles does YouTube play in your marketing plan?
• Should you prioritize YouTube given its reach and impact?

For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.

Sources: DMR 2015, eMarketer 2015, Marketing Charts 2015, TechCrunch 2015, Variety 2014

It’s Asian Americans.

Asian Americans are more likely to use digital devices than any other group—including 22-36 year old Millennials. 87% have smartphones, 66% use tablets, and almost a quarter own a smart TV.

Asian Americans are more active online than any other ethnicity. They are one third more likely to shop (and buy) from etailers, and 29% more likely than the general population to bank online. Asian Americans are also leading the way in mobile social network usage and watching TV programs on devices other than TV sets.

Digital grocery shopping tools are used more by Asian Americans than by others. They research products in advance, look up items on their smarphones in-store, and utilize retailers’ websites before shopping at above average rates.

Asian Americans are an attractive target market for more reasons than just their digital behaviors. The average Asian American family has an income well above the national norm, and 28% take home six figure salaries. What’s more, they value name brands, high quality products, and fresh foods far more than the general public.

What are the implications for your business?

• Do you know what percent of your consumers are Asian Americans? Other ethnicities?
• Should you look at how Asian Americans are using technology to predict how the general population will use it in the future?

For help developing powerful digital strategies that work, compelling marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.

Sources: eMarketer 2015, Marketing Charts 2015, Nielsen 2015