How the Impact of COVID-19 Is Changing Marketing

Well, it’s not as if we can start 2020 all over again — we’re already halfway through this year thus far. Yet, we can say one thing, COVID-19 and its recessionary impacts may be hanging around awhile. How may this have changed marketing mid-year, and possibly changed it permanently?

Well, it’s not as if we can start 2020 all over again — we’re already halfway through this year thus far. Yet, we can say one thing: COVID-19 and its recessionary impacts may be hanging around awhile. How may this have changed marketing mid-year, and possibly changed it permanently?

Such prognostications have kept The Winterberry Group, a marketing research consultancy, plenty busy since March: reading the tea leaves of government data, industry interviews, marketing dashboards, econometric algorithms, and the like. Principal Bruce Biegel told a Direct Marketing Club of New York audience this past week that indeed June has been better than May, which was better than April — when the U.S. (and much of the global) economy was in free fall.

So what’s underway and what’s in store for us midyear? Have we turned a corner?

Our Comeback Will Not Be a U-Turn — ‘Swoosh!’

When unemployment shoots up to 17.1%, and 40 million American jobs either furlough or disappear, there’s going to be a lag effect. The “wallet” recession is upon us, as consumers hang onto their savings, or eat through them, so there’s not going to be the same level of demand that drives upward of two-thirds of the U.S. economy.

New York City is a COVID-19 epicenter — and the commercial real estate market may take five to 10 years to recover, reports The Economist (subscription required). Knowledge workers will return, eventually. But densely populated urban centers, where innovations accelerate the economy, may look and feel different for some time, and that in and of itself could hamper national and global growth. Can other innovation clusters stave off the virus to protect collaboration?

And then there’s our world of advertising. Biegel sees digital being a “winner,” as traditional media continues to take a drubbing. Linear TV spending dropped by a quarter this quarter, and direct mail by half. Experiential and sponsorship spending has been slashed by 75%, as concerts, live sports, conferences, and festivals all took a public health-ordered hiatus. Yet, even in digital categories, Q2 has yelled “ouch.”

Email is the only channel to have held its own, though pricing pressure has cut margins. Social, search, and digital display all have posted drops from 25% to 40% during the quarter — and though all our eyes were home watching Disney+, Netflix, and the like, even OTT/addressable TV ad spending was down by 5%. With the Newfronts coming this week, it will be interesting to see what types of digital media may post gains.

So if June’s “recovery” in media spend is any indication, Q3 (sans Olympics) and Q4 (yes, we’re still having an Election, last time I checked) should be solid though not buoyant. Biegel says it may be a “swoosh” recovery — think Nike’s logo — down fast, but up again slowly, steadily and resiliently. Which begs the questions: Can ad businesses, business models, and brands cope with a new reality?

The “new normal” is about coming out of the COVID-19 crisis — and half of executives surveyed by The Winterberry Group aren’t expecting miracles:

Medium-Term Budget Cuts

IAB-Winterberry Group State of Data (2020)

 Q3 Will Start a Recovery … of Sorts

Source: Advertiser Perceptions, Pivotal Research Group (2020), as reported by Winterberry Group

And, Biegel reported, that it may indeed take to 2024 — with COVID-19 firmly in a rear view mirror — for a recovery to be complete, according to IPG Mediabrands Magna. It is predicting a 4.4% ad spend contraction this year, a 4% recovery next year, and “subdued” results thereafter until mid-decade.

So How Have We Changed — and Will These New Behaviors Stick?

Some effects, though, may indeed have permanence in how Americans consume media — perhaps hastening trends already underway, or creating a whole rethink of how we act as consumers. Consider these impacts:

  • Streaming to TVs more than doubled during COVID-19 crisis. Have we rewired our video consumption habits away from scheduled programming for good?
  • Mobile data traffic surged 380% in March alone. Consumers have taken to their smartphones everywhere — so how has mobile viewing altered consumer’s screen habits across devices, and will it stick?
  • DTC brands and catalogs know all about remote selling — and so do millions of consumers who have now come to love shopping this way.
  • Video game use is up 60% — opening the door to more in-game advertising opportunities. This may change the mix of brands seeking to engage consumers there.
  • In January there were 280,000 posted job openings in data analytics. There are 21,000 today. More than half of marketers expect predictive modeling and segmentation to occupy their marketing strategy concerns for the balance of 2020.
  • Tangible value matters. Consumers will be demanding more pricing benefits from brand loyalty, and less VIP experiences. We may be getting tired of lockdowns but we are steadfast in a recession, savings conscious mindset.
  • Business travel – yes, your clients may be returning to the office, but do they really want to see YOU? What can B2B marketers and sellers achieve virtually?

It’s ironic, Biegel said, that privacy laws and the crumbling cookie are making customer recognition harder in the addressable media ecosystem, just as consumers expect and demand to be recognized. Identity resolution platforms will evolve to cope with these new marketplace realities — both of which are independent of COVID-19 – but the solutions will bring forth a blend of technologies, processes, and people yet to be fully formulated. These are still open and important marketplace issues.

So assuming we’re healthful health-wise, we have some challenges ahead in ad land. I’m glad to have some guideposts in this unprecedented time.

3 Ways to Derive Actionable Sales Insights From Content Marketing Data

Nearly all businesses these days are aiming to build content marketing strategies that enable them to “rise above the crowd” or “be heard above the noise.” Whether they’re succeeding or not is anyone’s guess. The trick with content marketing data is to know how each dataset feeds into the bottom line.

As we ring in 2020, talking about the importance of content marketing and why every brand should be doing it is a record that has been broken for quite some time.

Nearly all businesses these days are aiming to build content marketing strategies that enable them to “rise above the crowd” or “be heard above the noise.” Whether they’re succeeding or not is anyone’s guess. What’s for sure is that branded content campaigns are yielding copious amounts of big data about customers and their behaviors. Whether it’s web traffic, conversion rates, or engagement levels, the trick with content marketing data is to know how each dataset feeds into the bottom line.

With so much data being created and collected every day, it can be very difficult and overwhelming to translate this information into sales insights. In fact, one of the biggest challenges marketers face is associating content with revenue:

marketers' top challenges
Credit: MarketingCharts.com

So how can you show ROI from content marketing without letting your head spin from data overload? Let’s find out.

1. Unify Data Streams

Data collection is only getting more complex as sources and systems continue to grow. Depending on how far-reaching your content strategy is, the data streams that relate to your sales regime won’t always yield black and white answers. Therefore, market research data, customer data, and pretty much all company data should be unified in a single ecosystem. This will let decision-makers spot key trends that tie directly into the bottom line.

For example, you need to know things like the content channels that are bringing in the strongest leads, the common threads among your most profitable customer profiles, the types of content that get the most engagement, where your referrals are coming from, and so on.

Marketers these days are growing increasingly dependent on the constantly-growing number of data sources. The major tasks at hand involve monitoring, analyzing, and finding benchmark performances for each campaign.

Until recently, it was a huge (and expensive) effort to develop tool integrations that aligned content marketing data sources in ways that boosted the sales process. Thankfully, AI-enabled business intelligence and CRM platforms allow businesses to efficiently analyze their data streams. One such tool is Salesforce’s Einstein, which can unify company data to identify new audiences, deliver sales projections, create in-depth customer profiles, and even automate storytelling.

Salesforce Einstein
Credit: Salesforce.com

AI-based content platforms are designed to score touchpoint information to discover patterns that help determine which leads are likely to convert. They can create associations between varied data sets, such as website engagement and publicly available demographic information, for example, and turn these into stories.

The way you set up these stories determines which datasets you will unify, and how your content or CRM platform will evaluate the information for predictive purposes. For instance, you might want to use a story to maximize potential earnings from a particular product. This could involve data sets related to engagement rates, lead nurturing, landing page conversion, and so on.

The more data you feed into such a system, the more precise the predictions you’ll be able to make. AI and machine learning are enabling data scientists to apply a combination of predictive analytics and meta data management to business. This lets marketers anticipate changes in consumer behavior and the impact of macroeconomic trends on business.

2. Identify Snags in the Buyer’s Journey

Making a sale in B2B requires way more than flashy advertisements and bold promotions. The modern buyer’s journey is typically made up of three key stages: Awareness, Consideration, Decision.

buyer's journey
Credit: HubSpot.com

Ideally, each stage should work as a vector to ultimately produce sales.

While it’s easy for marketers to design content marketing strategies to play to each stage, the parts that tend to get overlooked are the transitions. In other words, how well does your content bridge the gap between one stage of the buyer’s journey and the next? This is perhaps where data provides the most valuable insights related to sales.

Funnel visualizations can reveal patterns in regard to where people drop out or delay the progression through the buyer’s journey. Using this data, businesses can refine their transitions and work to eliminate the major roadblocks. Some simple metrics to start out with are bounce rates, session duration, and conversion rates of your landing pages — all of which can be tracked via Google Analytics.

google analytics behavior flow
Credit: Google Analytics

For example, let’s say you run a SaaS company and your Awareness stage content (blog posts, e-books, podcasts, etc.) is doing a fantastic job in getting traffic to your Consideration stage content on your website, which includes landing pages to sign up for a webinar or download a white paper.

However, you notice that the bounce rate for these pages is very high (around 95%) and the time on page is only a few seconds. This is a good indicator that there is interest, but the transitions from your Awareness content aren’t giving people enough information or motivation to convert. Therefore, it might be time to re-examine content at the transition point (email invitations to the webinar that you send to people who’ve read your blog posts or subscribed to your newsletters) or add more information to your landing pages.

Keep in mind, snags in the buyer’s journey can have much deeper-rooted issues than the example above — all of which can impact your sales numbers. Understanding how your content impacts the success or failure of your customer journey will likely require a great deal of critical thinking (and digging into funnel data).

3. Use Intent Data to Constantly Refine Your Sales Model

The term “intent data” is a buzzword that has been floating around the marketing world for all of a hot second. Intent data refers to behavioral information that gauges a person’s online activity and how likely they are to take a desired action. In terms of how this relates to your content marketing and sales efforts, these insights combine both topic and contextual data.

intent data
Credit: Infer.com

Topic data refers to the level of interest someone expresses about a subject when they search for something on the web. For example, if someone Googles “how to simplify customer service,” and lands on your blog about how to program a chatbot, they are showing some degree of intent. There are generally four categories of topic data:

  1. Anonymous First-Party Behavioral — These are visitors to your website who haven’t taken any action that identifies themselves. It is possible to identify their company by their IP addresses.
  2. Known First-Party Behavioral — These are visitors to your website who have shared personal information by filling out a form.
  3. Anonymous Third-Party Behavioral — These are unknown visitors to other websites with similar content to yours. You can identify them via the topics they browse and track them via their IP addresses.
  4. Known Third-Party Behavioral — These are known visitors to other websites who’ve shared information and whose content preferences are recorded. You can then use tools to measure and capitalize on the purchase intent of a pre-segmented audience.

Now, topic data is more or less useless without the right context. Contextual data revolves around diving into the who of the person taking the action. For instance, if the visitor reading your article on chatbots is a business owner, there is a good chance the person is considering a solution for customer service needs. On the other hand, if the reader is a programmer, it’s very possible the professional is looking for information about how to build or improve a chatbot. In this way, intent data plays a key role in how you define your sales process.

Different types of web visitors will have slightly different views of the buyer’s journey in relation to your business. You need a system that gauges the intent of a visitor from how they interact with your content on various platforms; the insights you glean from this form the basis of how you craft your landing pages.

Intent data lets marketers put the right content in front of the right eyes. Start by personalizing your website to “anonymous” users. Solutions like Evergage can be synced with CRM data and use machine learning to better understand the intent of visitors. It can then draw on a wide range of behavioral insights to help you serve ultra-targeted content.

Evergage
Credit: Evergage.com

For example, the system can sort visitors by industry and automatically build segments based on key attributes. From here, you can deliver customized messaging that fits into the narrow views of each of these segments.

Next, you should base the processing of inbound leads on engagement. Ideally, this should work to quantify the visitor’s intent based on the manner in which they interact with your content. If someone is looking at your blog section, they would likely fall lower on your lead scoring model. If they are looking at pricing, they would obviously rank higher.

scoring model
Credit: Business2Community.com

Intent data should always play a key role in how you nurture leads and go about making sales.

Over to You

In many ways, the data you get from your content marketing strategy is the lifeblood of your sales efforts. As big data continues to grow at exponential rates, both in size and application, the challenge will always be using these insights to boost your bottom line.

Refining your content strategy is a task that never truly ends. As long as you keep up with what your analytics are telling you, and identify and iron out the weak spots, spikes in sales are always around the corner. Good luck!

Marketers, Are You Going OOH With Data? Let Consumers Know Why

Mobile, social, and other digital media are increasingly connected to OOH advertising. One of my pet peeves is that when I’m in my home or office, or out and about, I receive real-time reminders about using my geolocation (really, a proximity). And that’s all they say. Period.

My precise location is here. Well, it was here — when I wrote this.

One of my peeves is that when I’m in my home or office, or out and about, I receive real-time reminders that this application, or that plug-in, or this website, would like to detect and use my geolocation (really, a proximity). And that’s all they say. Period.

It’s most usually a short “push notice” — combined with an “accept,” “allow,” or “OK” button to indicate my consent. Most of the time I click in the affirmative, and move on. But as a consumer, I am sometimes left curious as to why. Which is why I’m frustrated.

Notices: Give Me a Push, With a Reason to Pull

My preference would be for a slightly longer notice explaining why my location would be helpful — for the digital property to induce or invite me to send my acceptance more readily.

  • Is my known location being used to improve my user experience, by unlocking a functionality that is location-dependent?
  • Is it to serve interest-based ads on the site or app that are location-relevant?
  • Is such data shared with anyone else — and if so, why?
  • Is it a combination of these?

Sometimes, the need for geolocation is a seemingly obvious request. To use an app for maps, traffic, weather or news pertinent to my location is certainly agreeable. I get it. But if there are reasons beyond user utility, a consumer ought to know what those other purposes are. And I’m not talking about a paragraph buried in Terms and Conditions or Privacy Policies — as important as those disclosures are.

Take advertising. I actually opt for data collection to enable more relevant ads. I understand why such ads exist — and use far more free services, content, and conveniences that are paid for by sponsors and advertisers, who gain access data about me, than I would otherwise pay for myself. Most Americans — and probably most global citizens — like free stuff and increasingly understand this pragmatic, useful exchange. It just doesn’t need to be behind a curtain. There should be no mystery.

This is where self-regulation (disclaimer, I work for the Digital Advertising Alliance, DAA) and privacy-by-design step in: Just tell me why you want to use it! And let me make an informed decision regarding my consent.

Location Data Has Sensitivity — So Transparency and Choice Must Be Heightened

Location data can be sensitive. Advertising may be a helpful use — but what of stalking, civil rights, employer monitoring, government surveillance? And even advertising has a “no” factor, if an algorithm inadvertently discriminates, or a “creep” concern if you feel you’re being unwittingly followed (that is, your device) around a shopping mall or grocery store. (Even if I get a coupon offer.)

So, if we are — as we should — going to be transparent with a push notice, make it short, sweet — and explain in short copy why it is helpful to consumer experience. It only takes a phrase, or a bullet point or two, to explain how and why such data collection serves such outcomes.

That was a key point that Senny Boone, SVP of accountability for the Association of National Advertisers, explained at a recent presentation, which was sponsored by Geopath, a location-based marketing trade organization; and PMD Media, a targeted outdoor and digital advertising firm.

“Business needs to grow. New growth is based on new data and new information provided by consumer interaction, behavior, and insights,” she said, noting the rising importance of place-based information. “Consumers seek more data privacy as business and technology provide less privacy protection and more data tracking — or that is the perception.”

So are we in a conflict with the consumer here? Is this loss of privacy perception accurate?

We shouldn’t be in conflict — if we believe in transparency, she said, and have privacy and a consumer focus in our brand culture.

If you adhere to codes brought forth by our trade associations — both advertising and out-of-home — which largely have synced up in line with DAA Principles, then you are in good company, Boone said.

Give Me One Reason to Stay Here and I’ll Turn Right Back Around

This is particularly true regarding geolocation data, where enhanced notice through push notifications are required — but with a rationale as part of the push. Only then can meaningful consumer consent be given. Last month, two BBB National Programs enforcement cases, successfully resolved, highlighted the need for such enhanced notice. One case involved a fitness app specifically seeking to use location data for interest-based advertising. Takeaway: Use the enhanced notice for location data consent to explain why.

Boone went on to say that mobile, social, and other digital media are increasingly connected to out-of-home (OOH) advertising. She pointed to the Outdoor Advertising Association of America code that says:

We support responsible use of data for advertising purposes. We recognize that mobile phone and digital technology bring benefits to consumers seeking information, way-finding, entertainment, and connection to others. Increasingly, mobile-social-and-online media are connected to OOH advertising. We encourage member companies to work with suppliers that provide appropriate notice and control for the collection of precise location data from mobile phone devices used for advertising purposes. Anticipating technological changes, OAAA will continue to monitor developments in this area.”

Yes, that digital billboard you’re standing near may be wanting to interact with you. Location-based marketing is only set to grow. So make sure to undertake a data audit, know your location data partners, adhere to laws that may exist for any jurisdiction (GDPR, CCPA, etc.) — and follow industry codes for privacy ethics and best practices.

And tell me why my location is so darn useful to me as a consumer — rather than you as the marketer — when such data is sought. Not only is such explanation respectful and ethical, it serves to educate the market about why relevant ads may be that much more engaging (rather than annoying).

Perception is reality, and right now, we need to do a lot more education to get consumers — pragmatic as we are in our behavior — to get our attitudes to match.

 

 

 

 

How to Use Sentiment Analysis to Transform Your Digital Marketing Strategy

The goal of sentiment analysis is to increase customer acquisition, retention, and satisfaction. Moreover, it helps put the right brand messaging in front of the most interested eyes.

Sentiment analysis is a fascinating concept.

Brands use it to better understand customer reactions, behaviors, and opinions toward their products, services, reputation, and more. The goal of sentiment analysis is to increase customer acquisition, retention, and satisfaction. Moreover, it helps put the right brand messaging in front of the most interested eyes.

Before the digital age, gauging and understanding sentiment was an incredibly cumbersome process. It typically involved sending out surveys manually, going to the streets and asking people, or gathering focus groups in one place at one time. The big data-infused model of sentiment analysis we know today hit its stride on the political scene in 2010. Since then, it has morphed into a key tactic in marketing plans. These days, most of the grunt work is automated.

However, even with all of the advances in areas like martech, voice search, conversational commerce on social media, virtual assistants, and big data analytics, understanding how to actually use sentiment analysis to improve the bottom line is a complicated task.

Here are a few key approaches to help you get the value you need.

Know the Terms and Phrases That Indicate Intent

Most businesses today (hopefully) don’t even begin their digital branding and marketing efforts without a list of keywords relevant to their industry and a plan on how to target their audiences. You should have a good idea of the terms and variations that bring you traffic to your website, when used in conjunction with your brand and products. If you run an auto repair shop, people are likely finding you on the web through terms such as: body shop near me, auto repair, replace brake pads, etc.

Google Search Console gives you a great, fairly accurate idea of what’s bringing people to your website:

google search console
Credit: Author’s own

In terms of sentiment analysis, to gain actionable insight, you need to know how people are using these keywords in a way that indicates interest and engagement potential. Now, this is perhaps the biggest gray area in sentiment analysis, because not all positive sentiment equates to sales. Just because there are a lot of positive words around luxury cars doesn’t necessarily mean people are about to buy.

However, there are certain terms and phrases that signal people have entered your buyer’s journey. Let’s say you run an SEO agency and one of the terms you’re tracking for sentiment analysis is “Google update.” If you notice that a lot of people are searching for things like “what to do after a google algorithm update?” or “how to recover from a google penalty?” it’s a good indicator that they might need your services at the moment; you should target them accordingly.

Spot Patterns in Product Reviews

At its core, sentiment analysis is a game of pinpointing patterns and reading between the lines. Simply put, the more genuine and meaningful feedback you get on your product, the better insights you will gain into your customers.

Of course, gathering such high-quality feedback is easier planned than executed; especially for newer or smaller companies. Only 10% of customers will review or rate a business after a purchase, while half of consumers will leave a review only some of the time. However, the number of reviews jump significantly to 68% when a company asks the customer directly to leave one.

In order to find fruitful, up-to-date patterns, you need to make it a marketing process to consistently seek out new reviews. Then, you’ll want to start by searching for common adjectives. These should include words like:

  • great, simple, easy,
  • or awful, difficult, poor, etc.
trustpilot review
Credit: Capterra.com

In the above image, there are a good amount of reviews that include the word “great” for this product. Looking at the context around this term, we notice recurring patterns around components, like features and usability, and “not so” great opinions on customer service.

Finding recurring themes in customer sentiment will give you a better picture into the positive and negative aspects of your business or product. These can indicate the level of trust people have in your brand and how likely they are to give you a recommendation. When you are looking for patterns, try to come up with several adjectives that shed light on both sides of the spectrum.

  • What words are commonly used to describe their experience?
  • Is there an issue that forces multiple people to leave negative reviews?
  • What part delights them the most?
  • What’s preventing you from solving common problems?
  • Which products or solutions are users comparing yours to?

The answers to these important questions can help you understand user sentiment better and build a customer-focused marketing strategy.

Look to Social Media for Unabashed (Unfiltered) Opinions

Oftentimes, social media is one of the best places to get raw opinions, where people don’t hold back —  both in positive and negative lights. Knowing how people feel in an unfiltered environment can be a great way to tell which parts of your business are working very well —  and not so well.

A social listening platform is an important tool to keep in your portfolio for monitoring online mentions and gathering important datasets. Tools like Mention, Talkwalker, and Brand24, not only keep an ear on social mentions, but also turn these comments and hashtags into valuable customer analytics to help your marketing team understand your customers even better.

For instance, the online gaming developer Wargaming used brand monitoring techniques to analyze its customer’s desires and see which products performed best. The company tracked its users’ social media conversations to see what they were looking for, what parts of the games they liked or disliked, and any suggestions they offered for improvements.

Similarly, you can use a social listening tool to combine all your brand mentions into one database, giving your marketing team a bird’s eye view of audience sentiment on social platforms and identify areas to work on.

talkwalker
Credit: Talkwalker.com

While gathering this sentiment is good, the most important thing is knowing what to do with it. About 83% of customers who make a social mention of a brand —  specifically, a negative one —  expect a response within a day, and 18% want one immediately. Unfortunately, a majority of these mentions go unanswered, which can really impact a brand’s image. By utilizing an effective real-time social listening program, you can not only stay on top of social buzz, you can intervene and reply to any negative sentiment right away.

Some of the next steps will be fairly obvious, especially when you’re dealing with negative feedback. For instance, if your customer sentiment from social listening reveals that people are having trouble updating their software or there are issues with the product itself, this indicates that some redesign is necessary. However, don’t get too comfortable when you are getting positive reactions —  these tend to trick companies into thinking that no improvements are needed.

This kind of feedback can support a stronger marketing strategy. Let’s say your business sells pool supplies. While your customers may not be tweeting about your great chlorine chemicals, they are more likely talking about the fun pool floaties and games your website sells. Therefore, it would be helpful to highlight these fun accessories, as well, by listing them more prominently on your page and even including UGC to promote them.

poolfloatz
Credit: Instagram

Use Predictive Analysis to Spot Trends and Automate Actions

Now that you have all these valuable insights, you need to know how you can use them to shape your current and future business strategies.

Plugging your sentiment analysis into a predictive model is crucial for spotting trends, getting a feel for how opinions are progressing, and determining your next steps. Predictive analytics use machine learning and AI technology to not only gather, but analyze loads of consumer data and make accurate projections. These systems gauge historical behavioral data to help determine the best plan of action in the future.

In fact, customer segmentation and targeting (which is the logical next step after you analyze your audience’s sentiments) is one of the areas where applying AI and predictive analytics has the highest chance of working well for business.

applications of AI
Credit: Emerj.com

In order to develop an optimal predictive model for sentiment analysis, ask yourself:

  • What do you want to know?
  • What is the expected outcome? What do you think your customers are thinking?
  • What actions will you take to improve overall sentiment when you get the answers? How will you automate these actions?
  • What are the success metrics for these actions?

The Wrap

Chances are, your customers are already telling you what you need to make improvements to your business. By gathering as much data as possible on customer sentiment, your marketing team can understand just what needs to be done to provide a better experience, tweak campaigns accordingly, and acquire and retain more customers in the process.

Be sure you know what to data to collect, how to mine it, and how to apply it to keep raking in the revenue.

8 Ways to Keep the Rust Off of Brand Trust

We in the marketing and public relations business talk a lot about brand trust. Do we walk it? With trust, simply put, you have a chance to succeed with prospects and customers. Without it, well, you do the math.

We in the marketing and public relations business talk a lot about brand trust. Do we walk it?

With trust, simply put, you have a chance to succeed with prospects and customers. Without it, well, you do the math. In data-driven marketing, where data is often described as the currency of customer engagement, here, too, trust is the bank.

Right now, sad to say, trust appears to be available only at a premium. There seems to be less and less of it at a time when we really need more and more of it. This is societal. It’s not just advertising and business where trust may be in short supply. Government, institutions, education, medicine, media all seem to be scrutinized, with a loss of trust in the balance. At a time when and where factual information has never been so available and transparent, fears of misinformation, opacity, and malevolence also appear to be heightened.

Believability is at risk.

I can’t fathom how to regain trust in all these institutions just now. But I can think of our world of marketing. Brand, and brand trust, matter more precisely now, because trust everywhere appears in short supply.

Recently, Edelman, a global public relations concern, published its annual “Trust Barometer” report, looking at trust issues among consumers across eight nations, among them the United States. I find the results illuminating, because it helps provide a blueprint of where brands might concentrate efforts to bolster trust.

MarketingCharts.com summarized some of the findings here:

brand trust chart
Chart Credit: MarketingCharts.com, July 2019

(Re)Gain the Trust Some Insights From the Report

Here’s my take on eight areas of the findings:

Product Must Perform

While it’s increasingly a customer-centric world, product still matters. Quality, performance, convenience consumers won’t even entertain trust if the produce/service fails the bar. In fact, it’s the biggest trust factor. Reputation may enable consumer consideration, but 67% of customers report they won’t come back if the product fails. More than eight in 10 consumers cite quality, convenience, value, and brand trust as a “deal breaker” or “deciding factor” in a purchase decision.

Trust: Why Now?

Consumers report several reasons why trusting brands is more important: 62% cite concerns about product experience (can’t afford a bad purchase, need products to keep pace with innovation, and reliance on brands for increased automation); 55% about customer experience (use of personal data, use of tracking and targeting, and use of artificial intelligence in customer service); and 69% about societal impact (fake news and misinformation, brand involvement in social issues, and affinity with personal values).

Yet There’s Considerable Room for Improvement

Just 34% of consumers trust most of the brands they buy and use. While some might see this as in indictment, I choose to see it as a huge opportunity. In the United States, overall, 54% trust businesses to do the right thing trust in government, by the way, is 40% .

The Trust Dividend Is Real

When trust is earned, the payback is pronounced. The difference between not fully trusting brands and trusting brands for a long time is a 28-point lift in percentage when considering what brand to buy first; 33-point lift in staying loyal; 27-point lift in being an advocate; and a 21-point lift in defending a brand.

We Must Walk the Talk

Remember greenwashing environmental benefits? “Trustwashing” is also a concern regarding brands and authenticity. Worldwide, 56% of consumers feel too many brands use societal issues as a marketing tactic to sell more product. Trust in business vs. trust in government has fallen off year-over-year between 4% and 6% in brands’ ability to effect positive change on societal impacts. If you’re buying into social good, it had better be the real deal. That means an enterprise commitment that’s followed through rather than a marketing promotion.

Most Consumers Have Taken Steps to Avoid Ads

I think it’s a mistake to say all ads are held in low esteem they’re not. Other surveys have shown that eight in 10 consumers still rely on advertising to discover new products and services. But three in four consumers have taken steps in their lives – ad blocking, paid subscriptions, and changed media habits to curtail the amount of advertising they see. More than three-fourths of consumers says they pay attention to ads from brands they trust!

Enable Reviews and Influencer Involvement

Most consumers say they trust what others say about a brand, more than what the brand says in advertising about itself. Working in combination peer review then owned, paid, or social content (ads) can work together to lift trust.

Run Hard

Interestingly, the more saturated the message (meaning, engagement across media channels), the greater chance for trust. One might think this doesn’t square with the previous ad avoidance message, but it goes to show repetition and reinforcement work. But only when the message is on-point, resonates with the user, and conveys authenticity.

Conclusion

Those of us who worry and work a lot about “trust” we have some mighty work to do. But even in an age of consumer skepticism or simply skepticism the hard, honest work of trust-building often becomes its own greatest reward, regardless of business payback. Despite all the doubts and pushback, consumers do want to believe this necessary work is getting done, and brands and ourselves can be all the better for it.

Marketers Doing the Data Privacy Balancing Act Ask What ‘I Want My Privacy’ Means

It’s not just policymakers who are trying to figure out how to act on consumer sentiments toward data privacy. We all, overwhelmingly, want it — business and consumer.

data privacy
Credit: Pexels.com

It’s not just policymakers who are trying to figure out how to act on consumer sentiments toward data privacy. We all, overwhelmingly, want it — business and consumer.

We are all seeking a U.S. federal privacy law to “repair” what may be broken in Europe (hey, the toaster needs fixing), and to correct any perceived privacy shortcomings in California’s new law (scheduled to take effect in January). Will such a federal law pass this year?

One of the ongoing challenges for policy in this area is what’s been called the privacy paradox. The paradox? Privacy in the form of consumer attitudes, and privacy in the form of consumer demands and behaviors, rarely are in sync. Sometimes, they are polar opposites, simultaneously!

  • Should law be enacted on how we feel, or respectful of what we actually do?
  • How do we define privacy harms and focus regulation only what is harmful and to go light, very light, or even foster wholly beneficial uses?
  • Should private sector controls and public sector controls be differentiated?
  • Do existing laws and ethical codes of conduct apply, and how might they be modified for the digital age?

On top of this, consumer expectations with data and technology are not fixed. Their comfort levels with how information is used at least in the advertising sector change over time. In fact, some marketers can’t keep pace with consumer demands to be identified, recognized and rewarded across channels. Generations, too, have differences in attitudes and behaviors.

What’s creepy today may in fact be tomorrow’s consumer-demanded convenience.

Case in point: It used to be people complained about remarketing the ad following them around on the Net as they browsed. (All the same, remarketing works that’s why it was so pervasive.) Today, in role reversal, consumers sound off when the product they purchased is the same product they still see in the display ad. The consumer has little patience when brand data is locked in data silos: the transaction database doesn’t inform the programmatic media buy, in this scenario.

The marketing and advertising business have been trying to solve for the privacy paradox since the Direct Marketing Association assembled its first code of ethics in the 1960s and introduced the Mail Preference Service in 1971. (Today, the Mail Preference Service is now known as dmaChoice, and DMA is now part of the Data Marketing & Analytics division of the Association of National Advertisers.) During the 1970s, consumers could use MPS to both add their names to marketing lists, and to remove their names from marketing lists for direct mail. At that time, far more consumers sought to add their names. Later, MPS strictly devoted itself to offering consumers an industry-wide opt-out for national direct mail, with add-ons for sweepstakes and halting mail to the deceased.

During the ’70s, DMA also required its member mailers (and later telemarketers and emailers) to maintain their own in-house suppression lists. These ethics behaviors were codified, to some extent, when the U.S. government enabled the Do-Not-Call registry and enacted the CAN-SPAM Act to complement these efforts.

Fair Information Practice Principles A Framework That Still Works Wonders

So here we are in the digital age, where digital display and mobile advertising are among addressable media’s growing family. Again, the marketing community rose to the challenge enacting the Digital Advertising Alliance YourAdChoices program (disclaimer, a client) and offering consumers an opt-out program for data collection used for interest-based advertising for Web browsing (desktop and mobile) and mobile applications.

Over and over again, the pattern is the same: Give consumers notice, give consumers control, prevent unauthorized uses of marketing data, protect sensitive areas recognize advertising’s undeniable social and economic power, enable brands to connect to consumers through relevance and trust and act to prevent real harms, rather than micromanage minor annoyances. Allow marketing innovations that create diversity in content, competition and democratization of information. Let the private sector invest in data where no harms exist.

‘I own my data!’

Data ownership is a dicey concept. Isn’t there sweat equity when a business builds a physical or virtual storefront and you choose to interact with it? Is there not some expectation of data being contributed in fair exchange for the digital content we freely consume and the apps we download and enjoy? And once we elect to become a customer, isn’t it better for the brand to know you better, to serve you better? Shouldn’t loyalty over time be rewarded? That’s an intelligent data exchange, and the economy grows with it.

The demand for access to everything free, without ads, and without data exchange, without payment to creators is a demand for intellectual property theft. Sooner than later, the availability and diversity of that content would be gone. And so would democracy. If you put everything behind an ad-free paywall, then only the elites would have access.

‘But I pay for my Internet service. I pay for my phone service!’

Sure you do and that pays for the cell towers, and tech and Web infrastructure, union labor with some profit for the provider. But unless you’re also paying for subscriptions and content it’s advertising that is footing the bill for the music you listen to, the news you read, the apps you use, and so on. All the better when ads are relevant.

At the end of the day, the consumer is always right and privacy is personally defined.

I’m all for limits on what governments can do with data when it comes to surveillance, and how it goes about maintaining our safety and security (a paradox of its own).

On the private sector side, policymakers might best act to give a privacy floor (do no harm) and where economic benefits accrue (to serve consumers without harms) allow consumers freely accessible tools to set their own privacy walls, using browser settings, industry opt-outs, brand preference centers and other widely available no-cost filters. It’s a wise society that can encourage responsible data flows, while blocking altogether irresponsible data flows. Get it right, and we all participate in a thriving 21st Century Information Economy. Get it wrong, and Europe and China will set the global rules. With some luck and deliberation, we’ll get this right.

Your Customer is Mobile — Are You?

There’s no question about it, the world has changed. It’s gone mobile. Consumers are free from the confines of their homes, offices, and traditional media and retail environments. Today’s consumers have the power at their fingertips to fulfill their needs anytime and anywhere, and they’re using it.

There’s no question about it, the world has changed. It’s gone mobile. Consumers are free from the confines of their homes, offices, and traditional media and retail environments. Today’s consumers have the power at their fingertips to fulfill their needs anytime and anywhere, and they’re using it.

To understand the impact that mobile is having on marketing, it’s important that you consider the integral themes driving mobile forward. In the last few years, we’ve seen unprecedented releases of new hardware and software technology; the rise and influence of social media; the introduction of personal cloud computing; new innovations in business models; continued rollout of globalization; jockeying between the central controllers of mobile connectivity, the mobile carriers and new players like Google, Yahoo, Comcast and Microsoft; the introduction of new industry guidelines and principles; new government regulation; and new investment flows within every part of the mobile marketing ecosystem, just to name a few.

All of these themes and many more make up the mobile story. However, there’s one theme that overshadows them all: the dramatic shift in consumer behavior.

In our mobile world, consumers are connected and empowered. This hasn’t always been the case. Less than eight years ago, there were no more than 1 billion mobile connections worldwide. Today, nearly 90 percent of the global population, over 6.8 billion people, live within reach of a mobile signal. There are over 5.3 billion mobile connections.

Of these 5.3 billion connections, there are 3.75 billion unique mobile users, with the difference between total connections and unique users showing us that people carry multiple devices — and they use them. They’re consuming media, searching, identifying, locating and acquiring whatever they need (e.g., information, goods and services) right from the palm of their hands. Consider the following:

  • there were over 6 trillion text messages sent worldwide in 2010;
  • mobile internet use is on the rise globally, with growth in the U.S. at approximately 30 percent and growing; and
  • apps are being downloaded in the billions

Social media is proving to be a driving force in this growth. Here are some figures to back up that assertion:

  • Forty percent of all tweets are currently created on mobile devices.
  • There are 200-plus million mobile Facebook users, and they’re spending approximately an equal amount of time on Facebook on their PCs as on their mobile phones.
  • M-commerce is rapidly growing in 2011. Consumers will spend billions on goods and services directly via mobile, and mobile will also influence $225 billion to $230 billion in traditional retail and e-commerce sales.
Your customers are mobile. Are you ready for this? Is your business? Your marketing team? If the answer to any of these questions is no, then you’re missing out on an opportunity to delight and serve your customers in their preferred channel of engagement. However, it’s not too late. As much as the market has grown, it’s just getting started.

Do You Know Where Your Customers Are?

Imagine people sitting in a bar boozing at 8:00 a.m. It’s OK. Most of these morning drinkers work the night shift and this is their cocktail hour. Could these be some of your customers?

Imagine people sitting in a bar boozing at 8:00 a.m. It’s OK. Most of these morning drinkers work the night shift and this is their cocktail hour. What’s more, they want their TV news during prime time when they are having breakfast and getting ready to go to work.

Meanwhile, sometimes I cannot sleep and get up at 4:00 a.m., walk the dog, make coffee, scan the headlines. Alas, the printed newspapers are ipso facto yesterday’s news. What happened overnight?

From The New York Times, August 31, 2010:

Stations in Boston, New York, Washington and other cities are adding 4:30 a.m. newscasts this month, joining a backward march that started in earnest a few years ago. And those are not even the earliest. One station in New York, WPIX, will move up its start time to 4 a.m. on Sept. 20.

In catering to the earliest of the early risers, stations are reacting to the behavior patterns that are evident in the Nielsen ratings. Simply put, Americans are either staying awake later or waking up earlier — and either way, they are keeping the television on.

In the past 15 years, the number of households that have a TV set on at 4:30 has doubled, to 16 percent this year from 8 percent in 1995. At 11:30 p.m., by comparison, when most local newscasts end, 44 percent of televisions are on, up 10 percent from the levels 15 years ago.

-Brian Stelter
“TV News for Early risers (or Late-to-Bedders)”

Do you know your market and how, when and where to reach it?

Takeaways to Consider

  • Marketing guru Axel Andersson bought a small mail order study course in Germany after World War II and turned it into the largest “distance learning” organization in Europe. Axel retired to Florida, a millionaire many times over. When he would come to Philadelphia to consult, he insisted on staying at the Clarion Suites. Why the Clarion Suites—emphatically non-deluxe lodgings in the middle of Chinatown? “Certainly I could stay at a four-star hotel,” Andersson said. “But first of all, I get a suite with a living room where I work and a bedroom where I sleep. Secondly, the price is very reasonable. And thirdly, I see real people! At the Marriott or the Four Seasons, I would be among people just like me. I see those people everywhere. You can’t learn anything from them!”
  • “If you are a marketer, take the bus, subway, train or streetcar to work. These are the real Americans that you want to reach with your messages.”
    —Axel Andersson
    Direct marketer, founder of the Axel Andersson Akademie, Hamburg
  • “Listen to the murmur of your market. Create feedback loops in your database environment so that you can record what your customers and prospects are saying about your products, your service, your company and your competition. There is no more valuable source of information.”
    —Don Jackson
    Direct marketing insurance consultant

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TV News for Early risers (or Late-to-Bedders)