Marketing – Customer Experience Magazine

Paul AinsworthJuly 11, 2019

Current digital marketing techniques are failing to win over customers, a new report warns.

Published by London-based tech firm Ogury, The Reality Report examines the attitudes of over 287,000 mobile users towards marketing and data, and suggests that current practices of digital marketing fail to provide value to users and could endanger organisations’ long-term prosperity.

Fifty-two percent of respondents agree that intrusive or irrelevant messages give them a poor opinion of the app or website that hosts these messages, while only 25 percent of UK respondents believe that targeted messages are useful.

Wider market data suggests that the majority of mobile ads are served by Big Tech companies, otherwise known as the walled gardens. These technology behemoths have access to an incomparable mass of user data, enabling them to target users with relevant messages. However, nine out of 10 UK users find targeted marketing messages annoying, even though 13 percent out of the 88 percent find them also useful.

Thomas Pasquet, Ogury’s co-founder and co-CEO, said: “If users feel any form of intrusion, they will be annoyed regardless of the relevancy of the message they receive. Therefore, brands and publishers should always offer consumers clear and fair choices: accept anonymous data to be collected to receive customised marketing; opt-out from sharing data and therefore receive irrelevant ads; or pay a fair price in exchange for a marketing free and data collection free environment.”

Sandra LoefflerJuly 10, 2019

Today’s consumers want it all – freedom to research purchases using any device (66 percent), the ability to visit stores if the internet doesn’t meet their needs (49 percent), and personalised advertising offers (26 percent) – all as part of a seamless, integrated experience.

Businesses recognise these rising demands; globally, almost two-fifths (34 percent) plan to adopt an omnichannel model in the next year. Yet meeting this goal can be challenging. Ensuring consistency, convenience, and relevance requires a comprehensive view of individual journeys: insight that isn’t easy to obtain when shopping activity is highly fragmented.

With CX rivalling price and product as a factor that matters most to customers, it’s crucial for retailers to understand the always-connected consumer by adjusting their measurement approach.

The troubled status quo

Most retailers are already striving to keep up with convoluted consumer journeys: using siloed, channel-specific tools and metrics to assess the impact of online and offline marketing efforts. And these silos are only getting deeper, especially when cookies are becoming less effective, privacy regulations are imposing stricter requirements on data, and walled gardens are preventing meaningful insights into the consumer journey altogether.

As a result, retail marketers are left with fragments of insight they must attempt to piece together, making it increasingly difficult to gain a complete view of how individuals connect with their brand across touchpoints. Little wonder only seven percent of firms have successfully implemented an omnichannel approach. Clearly, measurement must evolve to match modern consumer habits. If marketers want a precise picture of where purchase paths flow, how their initiatives perform and what form strategy should take, they need the right measurement solutions at their disposal.

Making the right measurement choice

Modern marketing measurement approaches can pave the way to better customer engagement; giving retailers the means to analyse interactions across every channel and device, evaluate the impact of each touchpoint on sales, and power smarter future decisions. But different measurement models serve different needs, which means retail marketers must select the approach that matches their data, channels and goals.

For example, marketing mix modelling harnesses summary level data to provide a holistic understanding of what’s driving sales, including online, offline and external factors that can affect product demand. It looks at the historical relationships between marketing spend and business results, and is most valuable for retailers who want to inform their strategic and periodic planning on an annual, half-yearly, or quarterly basis.

In contrast, methods such as multi-touch attribution offer more frequent, granular analysis. Leveraging household and person-level data from addressable channels, it measures the influence that each touchpoint – from ad creatives and offers to placement, keyword, recency and so forth – has on consumer actions in near real-time. For retailers looking to make tactical optimisations to live campaigns, multi-touch attribution is likely to be the best option.

Comprehensive media coverage matters

It goes without saying that marketing measurement relies on a steady and comprehensive supply of data. The more complete the coverage, the more accurate the analysis will be. But amid the growing emphasis on data security, media coverage gaps are increasingly common.

Measurement providers must therefore be chosen as carefully as the models, and maximum coverage should be a top priority. Finding a partner that has strong relationships with large media platforms, ways to track data despite cookie limitations, and methods to cross-check the accuracy of data sources is key for getting as much visibility into the omni-channel consumer journey as possible. Only then can retailers dissect the complex web of factors that affect consumer decisions and make smarter, more impactful decisions.

The value of preparation

One final and often overlooked aspect of successful measurement is preparing for the future. In the wake of the General Data Protection Regulation (GDPR) and an increasing focus on digital security, the utility of cookies has significantly diminished – and with the e-Privacy Regulation (ePR) due to be enforced in 2020, its value is only set to fade further.

This makes it critical to choose a provider with the resources and ability to adjust to the ever-changing marketing landscape. Declaring intent to plan for a cookie-less world isn’t enough; providers should also be proactively demonstrating their commitment to future proofing marketers’ measurement success.

As consumer preferences for multichannel shopping grow, it’s becoming increasingly difficult for retailers to make sense of the fragmented data they leave behind and understand true marketing effectiveness. Instead of siloed tools that are at odds with the needs of always-connected consumers, retail marketers need a modern measurement approach so they can drive performance to the maximum and put their marketing investment where it matters most to their businesses.

Paul AinsworthMay 14, 2019

Bombarding customers with irrelevant marketing messages is costing retailers conversions and customer loyalty, new research warns.

A study of 1,000 UK shoppers by marketing tech firm BounceX found that customers want relevant, timely email communications from retailers. Almost two fifths (37 percent) of respondents said they would be more likely to make a purchase if they received a personalised notification about a product they have already looked at online, while over a quarter (28 percent) find onsite overlays helpful, as long as they are personal and enhance their user experience.

Both of these statistics demonstrate the impact of showing the right message to the right shopper at the right time in order to increase conversions, BounceX has suggested.

Robert Massa, General Manager of BounceX EMEA, said: “The need to know your customers and provide personalised marketing messages of value is becoming vitally important for brands and retailers. By enabling retailers’ to recognise site visitors on a unique basis, they have greater clarity of where each individual customer is on their individual buying journey which allows them to trigger relevant emails or overlays to deliver the online personalisation that customers now both demand and expect.”

With 269 billion emails received globally each day in 2017, and the number expected to rise to 320 billion by 2021, being able to identify and understand a shopper’s digital buying behaviour, across channels and devices, in order to serve them the most relevant message at the right time and frequency, will be an increasingly critical capability.

Meanwhile, 70 percent of consumers feel they receive too many marketing emails from brands, with a third (34 percent) regretting giving their email address to a brand. Over half (57 percent) of shoppers say that receiving too frequent marketing messages would cause them to unsubscribe from a retailer’s database entirely, meaning in their efforts to engage their customers, retailers could in fact be turning away the very audiences they are trying to influence. In fact, a third (32 percent) of shoppers would be more likely to make a purchase if a retailer did not bombard them with marketing messages.

“As the research shows, timing is everything and knowing when not to communicate with your customer can be just as important as knowing when to communicate with them,” added Robert.

CXM Editorial TeamMay 10, 2019

Each year, analysts predict trends that will determine the course of the advertising, media, and digital industry in the near future.

Year after year, we see the same predictions about the importance of video content, new approaches to SEO optimisation, growth of mobile internet penetration, and related advertising tools. However, it seems that a lot is going to change in 2019. So let’s take a closer look at the new revolutionary solutions and approaches that are going to shake the market this year.

1. Personalised marketing

Personalisation is a key trend in many business areas. The idea of delivering a personal message to the client, taking into account the characteristics of his or her behaviour, personality, and sociography is not new. However, such an approach becomes a reality thanks to the introduction of artificial intelligence (AI) technology. Even if a person uses hidemyass, it will be still possible to track his online actions.

The love of marketers for digital is largely due to the possibilities of fine-tuning the targeting for advertising, but now more advanced personality recognition mechanisms are being tested. Thus, Amazon uses AI-based solutions that combine user data from various sources, such as transaction archives, trending sales, competitor information, CRM data, and information from social accounts. At the latter point, the machine predicts the desires and capabilities of the user. As a result, a company is able to formulate and prepare a 100 percent personalised offer, which will hardly be refused.

2. Voice services

There are some technologies that burst into our lives suddenly. Voice assistants are one of them. At first, users limited themselves to comic dialogues with smartphones; with time, they began using voice assistants for their intended purpose. Siri, Google Now, Alice, Amazon Alexa, Cortana, and others teach users to use the voice dialogues with the software. Markets are saturated with Voice Search Tools, Amazon Echo, Google Home, and others.

According to NPD Group, by the end of 2019, sales of ‘smart speakers’ will grow by 50 percent, and the market volume will reach $2.7 billion. This technology is in the trend of marketing integration with services and applications for delivering food, calling a cab, searching for the right locations, and other things. Just like vpn services were popular a few years ago, voice assistants are on the peak now.

3. Communication automation & chatbots

According to Gartner, 85 percent of user interactions with companies will occur without human participation by 2020. Nowadays, many companies use chatbots in social networks and instant messengers to simply communicate with their audience. In the future, scripts will become more complex, and the bot will be able to imitate a live seller or manager, saving companies’ resources.

4. Augmented reality (AR)

According to the estimates of the Harvard Business Review, global investments in the development of the AR sector will exceed $ 60 billion by 2020. The research centre MarketsandMarkets states that market growth will exceed 75 percent over the next five years. In 2022, it can reach an estimate of $120 billion.

The largest technology brands have seized upon this promising technology because it is extremely interesting to the end user and does not force it to acquire new products. Everything works on your favourite smartphone. AR is used in education, medicine, and, of course, marketing solutions, especially in a retail segment. The investment volumes are impressive, and we will see a lot of interesting consumer variations using augmented reality in the coming year.

5. 5G

Standards for deploying fifth-generation mobile networks are still in development, but individual elements are being tested by operators around the world. 5G networks will create new opportunities for users, such as the Internet of Things (IoT), as well as broadband media services and real-time communication in areas of natural disasters or mass events.

Final Say

According to many experts, we are now entering the era of digital technology, which will mostly depend on the introduction and development of artificial intelligence (machine learning) and all the consequences associated with it. The incredible development of the digital environment over the past ten years (social media, improved search technologies, the AppStore, and PlayMarket, cybersecurity, streaming video, etc) will not slow down, but go to a new level.

In 2019, marketers will need to prepare for constant experimentation with new technologies. Only a continuous stream of testing new ideas will allow you to be on the success wave.

Naeem ArifApril 5, 2019

The focus of many marketers and CEOs is to ensure they are getting the attention of their target customers.

Most of them are spending most of their time and effort on this activity, without thinking about the other related activities. Once you have the attention of your target market and you have them highly engaged in all the content you are producing…what next?

Well hopefully, they will buy from you now; they will accept that you are good at what you do and you align with their own personal values. Up until now, it is all based on you issuing a promise to your prospect that should they follow-through and make that purchase, this is the outcome you will deliver.

I read recently a long article on HBR that stated “highly engaged customers will become loyal customers”, and it got me thinking: this is not necessarily the case. From our own real world experience, yes the two things are linked, but not dependent on each other. Some of the best marketing campaigns do not lead to long-term profit.

If we break this down, a customer is someone who buys from you and a loyal customer is someone who repeat buys from you. So no matter how engaged they are with your content and your brand, they may or may not repeat buy. They could stay engaged in order to receive the content or information because it is educational or amusing, but will they definitely maker another purchase?

This is a separate question completely and there are an increasing number of consumers out there who consume content, but do not buy.

A key realisation will happen at the point when they consume your service. This is the moment of truth, when we will really find out if you deliver on your promises. This is the point at which they decide – does the product taste as good as the packaging?

So far it has been an emotional connection, where they feel this is a good choice for the prospect to make. Now we will see the delivery of this promise. You can either fall short of the promise and maybe lose them, or you can fulfil that promise, in which case you will retain that customer for the future.

At this point, your content marketing is irrelevant; if the product does not match the packaging it will be a failure for your objectives. So no matter how good your engagement strategy is, you will not have a loyal customer.

So a few questions you may want to ask yourself:

Does your team – who are delivering the service – match the passion, drive, and standards that your sales and marketing staff possess?
Are you interested in this single transaction, or are you willing to treat the customer so well that they want to come back for more?
What is that little bit extra or something different that you are giving that will make you stand out and be more memorable than your competition?

If you want to get loyal customers, then you need to ensure that your operations strategy is in line with your marketing. Building loyalty is not just about a single transaction – it is about many transactions. If you only measure your team on turnover or profit, then there is no reason for them to worry about repeat business. The reality is that the returning customer will firstly buy quicker, and secondly buy bigger or more than they bought last time, because they already know and trust you.

Your team should be thinking about what your customers value, not about how much they can squeeze out of them in this single transaction. I would rather give something that is fit for purpose today, because the customer will appreciate my honesty and come back to me for more. The multiple transactions will deliver more profit to me and so I am interested in the lifetime value of this customer.

A lot of people talk about this concept, when in reality, it is something that has be measured and delivered over a period of time. You need to be ready to see the benefits over time, because you will not see them in the short term. This is why it is important that you are prepared to measure your staff on things other than sales.

If you deliver on this, you could of course exceed expectations and deliver more than what was promised, which is even better. In such cases you will probably have an advocate on your hands – someone who not only returns to you, but actually tells others to also buy your product. Make sure your team understands your strategy here and follows it through.

So if you are thinking that engaged customers will always lead to loyal customers, think again. Consider instead that delighted customers will be what leads to loyalty.

Andy WoodFebruary 27, 2019

For many years the marketing world has been deliberating between direct email and direct mail to determine which strategy is the most effective.

A number of different opinions and studies have been voiced throughout the years, none of which put an end to this debate.

Every year 4.4 billion pieces of direct mail and 37 billion emails are sent in the UK; however, quantity doesn’t always equate to results. According to a survey by Proactive marketing, 70 percent of consumers in fact say that they receive ‘too much’ email; the click-through rates for direct marketing emails (1.56 percent) are lower than the average response rates for direct mail (4.4 percent) and the lifespan of an email is just two seconds – compared to 17 days for a piece of direct mail.

To add to this a direct mail campaign costs much more than a direct email campaign. On average, a typical prospecting direct mail piece costs 70 pence to produce and transmit, while an email costs 20 pence (mainly due to data costs). This is why it comes as no surprise that cost is one of the main factors that drives direct email to be the channel of choice for many.

Email campaigns are perceived as inexpensive and easy to be issued in high volumes; this however, often results in filling consumers’ inboxes with low quality and low relevance emails, without taking into consideration the important variant of customers’ behaviour.

In light of this data, there is evidence in favour of direct email as well as for direct mail – so how can we objectively identify the best strategy? In order to solve this conundrum, Go Inspire Insight decided to run a large-scale randomised control trial (RCT). The goal of the trial was to gather meaningful evidence about the relative performance of direct mail vs direct email; putting equal creative effort, creative variants, the same level of segmentation, as well as equitable or equivalent timings into each channel.

Among the 240,000 customers randomly selected to receive the dedicated campaign, one randomised segment received offers by post alone while another segment received the offers via email. Finally, the third segment received the offers via both channels. Segmentation was also applied with the same level of detail to ensure an objective channel evaluation.

What this RCT reveals is that the success of a campaign cannot only be measured through response rates; commercial outcomes turned out to be an important differentiator between standalone email and standalone postal mail. This exercise shows in fact, that response rates are relatively similar, while conversion and incremental revenue rates diverge significantly across the three segments – providing us with the data needed to find an answer to our question.

The numbers show that the incremental revenue per customer generated by those who received the offers by email is just under £1; those who received the offers only through postal direct mail generated an incremental revenue per customer of around £5; and finally, those who received the offers through both post and email generated an incremental revenue per customer of over £6.

What these numbers reveal is that marketers should not be looking to choose one channel over the other; it is in fact the combination of the two channels that can make your marketing strategy a success. Marketers should start seeing the benefits of a combined strategy and understand that one option doesn’t exclude the other one; they should in fact start experimenting with these two mediums and try to understand how to create the perfect mix for the best result.

Customers ‘annoyed’ at Digital Marketing methods

Measuring the Always-Connected Customer

The troubled status quo

Making the right measurement choice

Comprehensive media coverage matters

The value of preparation

Impersonal Emails are Damaging Customer Loyalty

Five Major Digital Trends of 2019

1. Personalised marketing

2. Voice services

3. Communication automation & chatbots

4. Augmented reality (AR)

5. 5G

Final Say

Creating Loyal Customers: From Attention to Retention

Direct Mail & Email: A United Approach to Marketing

Five Ways to Test Your Customer Recovery Loop

Tech Investments Hampered by Poor Employee Experience

21st Century Leadership in Business

Employees Optimistic About AI Impact on Jobs, Survey Finds

Why it's Time to Treat Personalisation as a Product