SCVNGR’s influence on sales and brand perception

Throughout the fall 2011 semester my public relations writing and applications students are actively working to bring SCVNGR, the geolocation-based mobile application, to Morgantown, W. Va.

The first question many people as me is, “Why?” Quickly followed by “What will local businesses get from this?”

A recent study by Ogilvy & Mather and Chatthreads contains some insight into the possibilities of this project. Though their study deals with social media (and not mobile gaming) I believe some of their findings transfer.

First, they suggest that social media directly correlates with sales increases. Recent blogs suggest that gamification (via websites and mobile applications) does the same. Consumers get to interact with, engage with and be entertained by your brand. Does engagement lead to sales? An overwhelming majority say yes. Especially with a mobile gaming application like SCVNGR where promotions are designed to get consumers to interact with your brand in the best possible ways — thereby highlighting your brand attributes.

Second, the study suggests that your media should be integrated. For this project students are creating blogs, posting to Twitter, messaging via Facebook (social media) as well as creating news releases, feature releases, social media releases, short teasers, media advisories, and pitch letters for traditional media outlets. Everything is integrated — each piece telling different parts of the whole story. Findigns from Ogilvy & Mather indicate that by combining social media and public relations consumer spending could increase as much as 17 percent.

Third, Ogilvy & Mather’s study suggests that social media directly influences spending and consumption. SCVNGR users can immediately post photos, tips, and comments about brands directly to social media sites Twitter and Facebook — ways that can help influence other consumers in their networks. The 0-1-2 effect shows that the more people we observe doing something the more likely we are to do it. Visibly posting SCVNGR “challenges” to social media will result in this.

Fourth, and not surprisingly, the authors suggest that social media have the ability to rapidly change brand perceptions. Advertising “build-up” is long, taking forever to change brand perceptions. Seriously, don’t we still feel poorly about BP regardless of how many ads (see below) they show? Public relations works a bit faster. We feel better when we seen companies acting professionally and giving back to the community — even if they have done something “bad” (e.g., Phillip Morris donating computers to underprivaleged children).

Fifth, the study indicates that consumer exposure to brands via social media (24%) is much lower than that of television (69%). What this means is less clutter. So, when you look at your SCVNGR application and only see a few companies listed, it means your business is highlighted as one that is forward-thinking enough to include gaming in your marketing strategy. It means you don’t have a bunch of competitors taking away your customers. It also means that when customers use SCVNGR to earn rewards, they will come to your business!

On a different note, I would like to point out that through this service learning project the public relations writing and application students are getting some hands-on, highly relevant experience with:

  • developing mobile promotions,
  • meeting with clients,
  • pitching ideas to clients,
  • creating sales, marketing, and other “pitch” materials,
  • writing for social media,
  • getting media attention for this unique project, and
  • increasing student awareness through events, flyers, etc.
The work they do in this class will result in some very impressive portfolio pieces and will definitely set them apart from their peers.