CASE STUDY FOR MARKETING PURPOSE
Consumer Buying Power
Background: Consumer buying power refers to the ability of individuals or households to purchase goods and services. Traditionally, buying power has been measured based on income, but with the rise of social media and online behavior, companies can now look beyond income and use data on online activity to get a more comprehensive view of consumer buying power. Social media activity, including likes, shares, comments, and overall engagement, can provide valuable insights into a consumer’s preferences, interests, and purchasing power.
Case Study: A marketing agency/team, XYZ Marketing, is working with a large retail chain, ABC Stores, to increase their sales revenue. ABC Stores has noticed a decline in sales in recent months and is looking for a way to understand their target audience better. XYZ Marketing suggests using SocialScore to measure consumer buying power and develop targeted marketing strategies to increase sales.
SocialScore is a tool that measures consumer buying power based on social media activity and information. It uses an algorithm that takes into account a range of factors, including the number of followers, engagement rates, job position, av salary, and the type of content being shared. The tool provides a score that reflects the consumer’s influence on social media and purchasing power.
XYZ Marketing starts by analyzing ABC Store’s target audience. They use SocialScore to segment the audience into different groups based on their social media activity and buying power. For example, one group might be high-income consumers with high engagement rates on social media, while another group might be middle-income consumers with lower engagement rates. This segmentation helps to develop targeted marketing strategies for each group.
For high-income consumers, XYZ Marketing recommends creating an influencer marketing campaign. They identify social media influencers with high SocialScore scores who align with ABC Store’s brand values and target audience. The influencers promote ABC Store’s products on their social media channels, which can reach a broader audience, including high-income consumers.
For middle-income consumers, XYZ Marketing recommends offering discounts and promotions. They use SocialScore to identify consumers with high engagement rates but lower purchasing power. These consumers are likely to be interested in deals and promotions, so offering discounts on specific products can entice them to make a purchase.
Results: After implementing the targeted marketing strategies, ABC Stores saw a significant increase in sales revenue. The influencer marketing campaign targeting high-income consumers increased brand awareness and led to an increase in sales for premium products. The discounts and promotions targeting middle-income consumers also drove sales and helped to build customer loyalty.
Using SocialScore to measure consumer buying power allowed XYZ Marketing to develop targeted marketing strategies that resonated with ABC Store’s target audience. By focusing on social media activity rather than just income, the agency was able to identify consumers who were interested in ABC Store’s products and tailor their marketing strategies accordingly. This approach led to a successful campaign and increased sales revenue for the retail chain.
CASE STUDY FOR FINANCIAL INSTITUTION PURPOSE
Consumer Buying Power
Background: A leading credit card issuer was looking for a way to expand its customer base by targeting younger consumers who were more active on social media. However, the challenge was to find this consumer and determine the creditworthiness, who might not have an established credit history.
Solution: The credit card issuer turned to SocialScore to develop a digital marketing persona and customer analysis and to help with data for a credit scoring model that could assess the creditworthiness of younger consumers. SocialScore developed a model that analyzed hundreds of data points from various social media platforms, including Facebook, Twitter, LinkedIn, and Instagram.
The data points analyzed by the model included:
- Customers’ social media present
- Customer interests and characteristics
- Customers digital activity
- The consumer’s location and employment information (if available)
- The level of engagement with other digital services compared to the average for the business sector.
- The consumer’s Demographic & Score rates
- Job, Company, Average salary for region & position
Based on this information, SocialScore created a proprietary algorithm that generated a consumer buying power score, which reflected the creditworthiness of the individual. The score was presented as a range between 0 and 1000, with higher scores indicating higher buying power (creditworthiness).
Results: Using SocialScore’s model, the credit card issuer was able to successfully target younger consumers who were more active on social media creating a detailed marketing persona. By leveraging social media data, the issuer was able to identify individuals who were creditworthy, even if they had no established credit history or for double verification.
The consumer buying power score also provided valuable insights into the financial behavior of the target audience, allowing the credit card issuer to develop more targeted marketing campaigns and promotions that resonated with this audience.
Overall, SocialScore’s solution helped the credit card issuer expand its customer base while minimizing the risk of issuing credit to individuals who were not creditworthy. The solution provided a powerful tool for assessing creditworthiness, especially for younger consumers who are more likely to have a limited credit history.
SocialScore’s competitive advantage in the marketing area is its ability to provide more precise and relevant consumer insights through social media data analysis. With SocialScore, marketers can access a wealth of information about a consumer’s behavior, preferences, and habits that can be used to optimize marketing campaigns.
SocialScore’s data is continuously updated, providing real-time insights into consumer behavior. This allows marketers to make informed decisions about campaign optimization and target audiences.
Overall, SocialScore’s competitive advantage in marketing lies in its ability to provide more precise, relevant, and up-to-date consumer insights, leading to higher conversion rates and customer retention.