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Consumers Are Companies’ Biggest Assets When It Comes to Invention

Wednesday, February 17th, 2010

Today, it’s all about convenience. We pay our bills online, check ourselves out at the grocery store and, chances are, most people can’t remember the last time they actually walked into a bank. Throughout the course of a day, we interact with dozens of brands without ever encountering a single human being.

The rise of online networks, blogs, and social media tools in recent years has made it so easy and convenient for companies to interact with customers virtually, some would say the need for the face-to-face interaction is no longer relevant.

However, not all companies are taking that approach. Instead of asking customers what they think of a product, 3M Company has set up customer innovation centers all over the world to give customers the opportunity to be part of the product development process.

According to a recent New York Times article, John Horn, vice president for research and development at 3M’s industrial and transportation business, explained, “The goal is to understand what our customers are trying to accomplish, not what they say they need.”

What can we learn from all this?

Turns out we, as homeowners, might be the most important source for product development research out there. We’re the ones who are using these products on a daily basis. We know which ones delight us and which ones fall short. We know what features would make our lives so much easier, and which only seem to complicate things.

This approach is also something to consider when making important purchasing decisions. Do we want to buy our next major appliance from a manufacturer that wants us to share our experience with the product online after the fact, or one that relied on customer input from the start?

Maybe more companies in our industry will see the value in this model and consider tapping into their greatest product development resource…the homeowner. If so, we’re ready when you are.

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Home Remodeling Expected to Pick Up in 2010

Tuesday, October 20th, 2009

Spending on home remodeling is expected to pick up to nearly $105.5 million in the first quarter and $107.6 million in the second quarter of 2010, according to its Leading Indicator of Remodeling Activity report.

After the new year, we expect consumers will be on the look out for projects and products to help them spruce up their homes. Don’t be left behind as these shoppers hit the stores post-holiday shopping season. Remember to target home remodelers in the new year.

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Weekly Intel: A Reading List to End Your Week

Friday, August 28th, 2009

Weekly Intel

Take a few minutes to check out the links below. Just a few news nuggets and trend stories you may have missed this week.

Skylights – The Alternative Green Lighting?

New York Times Green Inc. Blog on Europe Changing Bulbs

Green the New Consumer Mantra in China? According to China View They’re on Board

Six Myths of Green Consumers from Eco Home

Contemporary Nurseries for Stylish Babies

Creating an Oasis of Calm

DIY Modern Succulent Patio Wall

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Top Retailer Utilizes Social Media to Benefit Non-Profit Organizations

Monday, May 11th, 2009

“Bullseye Gives” Uses Facebook to Promote Target’s Commitment to Giving

A few weeks ago, we posted an article showcasing how social media is affecting the way today’s major brands and retailers are doing business. Based on the success of social networking sites like Facebook, LinkedIn and Twitter and given what we know about the power of peer referral when it comes to influencing purchasing decisions, companies are looking at social media platforms as a means of connecting with consumers on a whole new level.

Yesterday, Target (an IMRE client) announced its online giving campaign – Bullseye Gives (#bullseye). Through this campaign, visitors to Target’s Facebook page can vote for one of 10 charities eligible to win a portion of $3 million the retailer will be giving away.

All votes and dollars allocated for each of the charitable organizations will be updated in real time on the Target Facebook page, and site visitors will be able to vote once per day, everyday, throughout the length of the contest. The final charitable donation allocations per charity will be announced on May 26. The 10 charities involved in the contest include:

  1.  Breast Cancer Research Foundation
  2. Feeding America
  3. HandsOn Network/Points of Light Institute
  4. Kids in Need 
  5. Operation Gratitude
  6. Parent Teacher Association
  7. National Park Foundation
  8. American Red Cross
  9. St. Jude Children’s Research Hospital
  10. The Salvation Army 

According to the company’s president of community relations, Laysha Ward, Target wanted to capitalize on the fact that social media is a national trend that also happens to be dominating the philanthropic sector. As reported in a recent New York Times article, Ward looks at the contest as “an opportunity to demonstrate the company’s commitment to supporting nonprofit work and enhance its brand.”

Other companies that have hosted similar contests include Amazon.com, TripAdvisor and American Express, but celebrities like Hugh Jackman have also jumped on the social media bandwagon in recent months to help raise money for charitable foundations.

We’re excited about the ways in which companies are incorporating social media outlets into their marketing strategies and look forward to reporting on more innovative online campaigns that brands are launching.

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Homeowners Now in the Driver’s Seat

Thursday, April 23rd, 2009

Current Economic Climate Has Certain Benefits for Homeowners

Although many Americans may not feel like they are in control of certain key aspects of their lives with unemployment rates on the rise and the increased need to slash spending in order to compensate for the current economic climate, homeowners are in the driver’s seat when it comes to home remodeling projects.

Photo Courtesy of ProgressiveBuilders.com

Photo Courtesy of ProgressiveBuilders.com

As reported in a recent New York Times article, the economic downturn is putting much of the control back in the hands of homeowners. This shift can be contributed to two things:

  1. Builders and remodelers are currently struggling to find work, so they are significantly reducing labor costs to ensure that their bids are as competitive as possible.
  2. Prices of nearly every raw material have declined over the past few months, meaning that overall project costs will also be down. Between the reduced labor and material costs, homeowners will be able to do more with their money whether that is in terms of project size or detail. 

While many homeowners may have ruled out the possibility of tackling a renovation project at the height of the housing boom because of the expense of labor and materials, people are now finding that they can afford what was once out of reach.

This concept is in line with what we heard at the 2009 HIRI Spring Conference. When asked if there was anything positive about the current recession, analysts agreed that our economic situation will “clear the market” and give Americans the chance to either purchase their dream home or even renovate their existing home to better meet their lifestyle needs. 

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Baby Boomers Take Risks on Products, Brands, Social Networking

Monday, April 20th, 2009

As the New York Times recently reported, the Baby Boomer generation is alive, well and actively purchasing some of today’s hottest new household products, at full price nonetheless. Whereas many marketers once deemed Baby Boomers less willing to take risks on new products and brands, companies are now changing their tunes and realizing the benefits of targeting this demographic.

So what’s driving this attitude shift? According to experts, there are a few specific elements contributing to today’s perceptions of the Baby Boomer population. 

First, as we reported a few weeks ago, studies prove that Boomers are among the savviest social networkers around, which is attractive to brand managers who are tasked with driving sales while simultaneously managing incredibly tight marketing budgets. The fact that social networking sites and internet-focused marketing efforts resonate with Baby Boomers is a huge benefit for marketers, and it is not going unnoticed.

Second, marketers are realizing that when it comes to purchasing products for their homes, Baby Boomers have more discretionary income to spend since their mortgages are typically either paid off or well on their way to being paid off. In a down economy, younger consumers are struggling to make ends meat and simply keep their jobs. While some younger consumers may be purchasing new homes and tackling remodeling projects, their Baby Boomer counterparts typically have more money saved and can therefore spend more freely than others. 

Third, Baby Boomers’ willingness to try new things has taught marketers that as long as they make a product that can prove to be more user-friendly or lifestyle enhancing, Boomers are likely to give it a whirl.

In the years to come, it is safe (and smart) to assume that Baby Boomers will continue to stay on top of technology, new products and marketing strategies. As more Boomers retire, they will have more time to dedicate to learning about the brands, product offerings and services that are on the market.

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