4 Tips for Targeted Customer Acquisition Marketing

Customer acquisition is the most expensive part of marketing, but no company can afford to abandon marketing for new customers. Acquisition marketing is essential, but brands must find a way to do it more effectively, and that starts with tighter, more data-driven targeting. 

Most marketing is blind. Brands put out messages and hope they are found by enough people who want to be customers that it justifies the spend. Even with targeted marketing, most campaigns are sent to broad audiences defined by a few key attributes, but not enough to eliminate the massive waste inherent in customer acquisition marketing.

Customer acquisition is the most expensive part of marketing. It can cost five times more than retention, and the costs keep rising. Still, no company can afford to abandon marketing for new customers. Even the best retention strategies bleed customers at an alarming rate; prospecting is the only way to offset that loss and grow.

Acquisition is essential, but brands must find a way to do it more effectively, and that starts with tighter, more data-driven targeting.

Data-Driven Acquisition Marketing

Customer modeling is the key to better targeting your prospecting. If you dig into your existing customers, you can identify commonalities and buying signals that allow you to direct marketing spend more effectively and reduce the overall cost to acquire new customers.

The hard part is knowing which attributes correlate most closely to the likelihood of a prospect becoming a customer.

Demographics Aren’t Enough

Demographics are a mainstay of target marketing, but in 2020 they’re not enough.

While demographics do have power in targeting your marketing, they don’t reflect buying signals in their own right. They can still be useful for targeting messaging and creative around more impactful modeling methods, but it’s important to look deeper.

Ideally, you want to build a target list around buying signals, then segment that by demographic information and target your creative to those segments. This means optimizing the creative and/or offer by doing things like matching people in the imagery to the demographics of that segment.

Demographics are also useful in building look-a-like audiences to target new customers based on the customers you already have. Even though demographic data does not directly indicate buying behavior, it can reveal insights when analyzed as part of the wider customer picture with data modeling tools.

4 Data Points for Better Customer Acquisition Marketing

With the above qualifiers in mind, which information actually does line up with more successful acquisition marketing? There are four key data points we like to use for omnichannel targeting.

1. Buying Behavior

When the goal is to understand what type of offer motivates what type of people to buy, purchasing behavior is one of the most important data points to consider.

When you identify that certain list segments respond to deep discounts, you can hold them out from general mailings and bring them back in when you have deep discounts to talk about.

When you can identify audiences with a propensity to buy around certain price points, build offers around those price points. If it’s above your product price, bundle a strong package deal that will lift response and increase your average order value. If your price is above the target, present it as an installment option with payments in the target zone.

This is exactly the kind of actionable information you can get from deep-dive data that is missing from demographic information. You’re not just targeting an age group, area, etc. You’re making a surgical strike at the behavior you want to influence.

2. Personal Life Triggers

Timing is everything. Once you’ve narrowed your target market by interest and buying signals, life triggers become a powerful way to spur new action.

Life triggers can be tied to events ranging from birthdays and graduations to buying a home, getting a new job, retirement, and other once-in-a-lifetime moments. By targeting marketing to a specific time in a prospect’s life when they are most likely to be interested in your offer, you stand a much better chance of making the conversion.

3. Shared Interests

One of the most important indicators of customer potential is evidence of interest in the product category or the industry it serves. While you may not be able to read prospect’s minds directly, there are many data points brands can use to pinpoint interest.

One way is to target audiences and lists built around interests that are relevant to your target customer, such as subscriber files for related media.

Perhaps a more exciting option: Social media provides new opportunities to leverage interest data points. Facebook, for example, allows you to build custom audiences including specific interests.

4. Searcher Intent

“Search data captured across e-commerce, pricing comparison, and product review sites are one of the strongest signals of intent and best sources for new customer acquisition,” says James Green, CEO of Magnetic, and he’s right. Harnessing this data in your customer models is one of the best ways to more tightly target your acquisition efforts and cut down on wasted prospecting spend.

This is why Google now uses searcher intent as the main factor in targeting its search algorithm. The intent is the most reliable indicator of what searchers actually want, and that makes it a powerful marketing tool.

In practice, this means identifying visitor paths, either on your website or across the web, and matching them with desired outcomes. What product pages are they looking at? Did they come from a related external website? Did you catch them on a specific search ad that is relevant to what they may want? All of this data can be used to build a better, more efficient plan for your acquisition marketing.

Don’t Be Afraid to Ask for Help

All these data points are important for optimizing your acquisition marketing, but they’re not necessarily easily accessible. When you’re trying to do advanced customer lift modeling that includes things like buyer intent seen through visits to other websites, it really helps to have data scientists on your side. These experts can isolate those variables and build them into a view of the audience you’re trying to target.

These are essential tactics that businesses are using now, and more businesses will use them in the future. Make sure you get ahead of the curve by digging into the data points today.

The Grand Reopening of the U.S. Economy Will Happen, Plan for It

We are in uncharted territory, much as we were in previous economic downturns and recessions. Yet, do know, another expansion will follow … eventually. There will be a grand reopening of our economy, and as marketers, we need to plan for it.

I love defaulting to optimism – even in the darkest of times. It’s been part of my survival mechanism through all sorts of crises. That being said, we are in uncharted territory in this new normal, much as we were in previous economic downturns and recessions. “The Great Recession” of 2008-2009 was largely Wall Street born and Main Street slammed. But remember, the Great Expansion followed. A possible recession stemming from COVID-19, however, would be largely reversed, with millions of livelihoods suddenly denied, and both Main Street and Wall Street being slammed in tandem. Yet, do know, another expansion will follow … eventually. There will be a grand reopening of our economy, and as marketers, we need to plan for it.

Listening to the U.S. President talk about getting parts of our country back to some semblance of normal by Easter may seem wild-eyed and some might say irresponsible. In reality, China is reportedly already back on line – after six-to-eight weeks of paralysis. Does this mean a possible “V-shaped” recession (very short), a “U-shaped” one (mild), or an “L-shaped” one (long term)? We don’t know.

It’s always dangerous to make prognostications, but we can learn from patterns elsewhere in the virology. With the United States now the most afflicted nation in sickness, we yet have a massive fight ahead to control viral spread. And doubt and fear have taken hold as two debacles have come about, one public health and one economic.

Unfortunately, there is no “on/off” switch for the viral crisis. Even when its spread is curtailed, which will happen, we’ve been shaken and edginess is going to remain. That’s only human.

Patterns of consumption will not resume as if nothing happened. Unemployment shocks will not reverse as easily as they came. So there will be a “new” normal.

However, a reopening is coming. You might say that’s my optimism, but folks – we are going to be okay in a time. It may not be of our choosing, as Dr. Fauci faithfully reports, but one that will be here nonetheless. As marketers, let’s get ready for it.

Look to Your Data to Prepare for What’s Next

Recessions are actually good times to look to the enterprise and get customer data “cleaned up.” The early 90s recession gave us CRM, and database marketing flourished. The end of the Internet 1.0 boom in 2000 brought data discipline to digital data. And the Great Recession brought data to the C-suite.

So let’s use this time to do a data checkup. Here are four opportunities:

  1. Data audits are often cumbersome tasks to do – but data governance is a “must” if we want to get to gain a full customer view, and derive intelligent strategies for further brand engagement. Quality needs to be the pursuit. Replacing cookie identification also is a priority. Understand all data sources to “upgrade” for confidence, accuracy, privacy, and permissions.
  2. March 15 might be a good date to do an A/B split with your customer data inputs – pre-virus and during-virus. What new patterns emerged in media, app usage, mobile use and website visits? Are you able to identify your customers among this traffic? If not, that’s a data and tech gap that needs to be closed.
  3. Customer-centricity or data silos? It’s always a good time to tear down that silo and integrate the data, yet sometimes healthy economic growth can mask this problem. Use the recessions to free up some time to actually get the work done.
  4. Test new data and identity solution vendors to increase match rates across your omnichannel spectrum – to better create a unified view of audiences, both prospects and customers. I’ve already seen one of my clients come up with a novel offer to analyze a subset of unidentified data to drive a substantive lift in matches.

As we work remotely, it’s important to understand that this current state of crisis is not a permanent state. Only once the virus is conquered, on its weaknesses not ours, can we really have any timetable to resume the economy. That being the health science, it just makes great business sense now to “stage” your data for that eventual Grand Reopening.

What I Hope to Learn in Orlando’s Magic ‘Data’ Kingdom

The Association of National Advertisers (ANA) inaugural 2020 Masters of Data and Technology Conference kicks off today. It will be interesting to learn how brands see themselves transformed by all the digital (and offline) data surrounding prospects and customers at this Magic Data Kingdom in Orlando.

As I get ready to embark to the Association of National Advertisers (ANA) inaugural 2020 Masters of Data and Technology Conference (beginning today), I’m very curious to listen in and learn how brands see themselves transformed by all the digital (and offline) data surrounding prospects and customers.  With CMOs telling ANA that this topic area is a strategic priority, I don’t think I’ll be disappointed this week in Orlando’s Magic Data Kingdom.

Are “they” — the brands — finding answers to these questions?

  • Do they have command of data in all the channels of customer engagement?
  • Are they deriving new sources of customer intelligence that had previously gone untapped?
  • Can they accurately map customer journeys — and their motivations along the way?
  • Are they truly able to identify customers across platforms accurately with confidence?
  • How do data science and creativity come together to make more effective advertising — and meet business real-world objectives?
  • What disruptions are shaking the foundations of B2C and B2B engagement today?
  • Are investments in data and technology paying dividends to brands and businesses in increased customer value? Do customers, too, value the data exchange?
  • Is there a talent pool in adequate to deliver data-derived, positive business outcomes? What more resources or tools might they need?
  • What impacts do barriers on open data flows — walled gardens, browser defaults, privacy legislation, “techlash” — have on relevance, competition, diversity in content and other business, economic and social concerns? How can these be managed?
  • Are “brand” people and “data” people truly becoming one in the same in marketing, and in business?

Admittedly, that’s a lot of questions — and perhaps the answers to some of these may be elusive. However, it’s the dialogue among industry peers here that will matter.

The mere emergence of this conference — “new” in the ANA lexicon — is perhaps a manifestation of where the Data & Marketing Association (acquired by ANA in 2018) hoped to achieve in its previous annual conferences and run-up to acquisition. The full promise of data-driven marketing — and “growth” in an Information Economy — can only happen when brands themselves (and, yes, their agencies and ad tech partners, too) have command of data and tech disciplines, and consumers continue to be willing partners in the exchange.

Imagination lives beyond the domain of the Magic Kingdom (where we all can take inspiration from Disney, nearby). Likewise, aspirations can be achieved. Let’s listen in and learn as ANA takes rein of this brands- and data-welcomed knowledge share. Growth is a beautiful thing.

 

Data Love Story in the USA With a Few Spats, Too

You might call this time of year, Jan. 15 to March 15, marketing data’s “high season,” based on all of the goings-on. There’s a lot of data love out there — and, like all relationships that are precious, they demand a huge amount of attention, respect, and honor — and celebration.

I’ve been enjoying Alliant’s “Data and the Marketer: A Timeless Love Story” postings this month, leading up to Valentine’s Day.

You might call this time of year, Jan. 15 to March 15, marketing data’s “high season,” based on all of the goings-on:

The Alliant infographic download got me thinking of some other “key” dates that might also be recognized on the Data Love calendar, reflecting other aspects of the love story. Not all love affairs are perfect — are there any? Sometimes there’s a quarrel and spats happen, without any abandonment of a full-on love affair.

  • 1960 — The Direct Marketing Association (then, DMAA) develops its first self-regulatory ethics code for data and lists, in an early industry initiative to separate the good from bad players. It becomes the basis for practically every data protection (and consumer rights) framework since.
  • 1971 — The Mail Preference Service is launched (today DMAChoice) the first marketing industry opt-out control program for consumers — the essential framework for every consumer choice tool in marketing (in-house and industry-wide) since.
  • 1973 — The U.S. Department of Health, Education, and Welfare introduces and adopts eight Fair Information Principles. In 1980, the Organization of Economic Co-operation and Development adopts these principles for trans-border data flows. In 1995, The European Union, among other governments, enact variation and interpretation of these formally into law, eventually adopting the EU General Data Protection Regulation in 2018.
  • 1991 — Jennifer Barret is named Acxiom’s privacy leader — among the first enterprises to name what essentially would become a “chief privacy officer.” In 2000, Trevor Hughes launches the International Association of Privacy Professionals. A nascent cottage industry evolves into a huge professional education and development organization that today includes tens of thousands of members.
  • 1992 — A nonprofit and privacy advocacy organization, the Privacy Rights Clearinghouse, is formed, and soon thereafter begins tracking data security breaches, both public and private sector. Its breach list since 2005 is posted here. Data privacy and data security, as evidenced in Fair Information Practice Principles, go hand-in-hand.
  • 1994 — The first online display ad appears on the Internet, by AT&T. (And the first commercial email perhaps the same year.) So marked the humble beginnings of Internet marketing — “direct marketing on steroids.” I thought Jeff Bezos used this term in Amazon (formed 1994) early days during a DMA conference – but alas, I’m having a hard time sourcing that one. Perhaps this quote was related to Google (formed 1998) and the real-time relevance of search!
  • 1995-96 — Subscriber Ram Avrahami asserts a property right to his name in a lawsuit against S. News and World Report. Because he thwarted the spelling of his name on the magazine’s list – in a bid to discover who else the magazine rents its subscriber list to – the court ultimately rejects his challenge. The case, however, introduces a novel concept and set of questions:Is the value of any list or database tied to the presence of any one individual name on that list, a penny a name in this case?  Or, is its value because of the sweat of the brow of the list/database creator (a business, nonprofit group, or other entity) that built a common attribute to which a list may derive commercial value?The “walled gardens” of today’s Digital Giants largely were built on such data collection. These two questions recognize that a “data-for-value” exchange must be perceived as mutually beneficial, or else consumer trust is eroded. “Who owns the data?” (a 20th Century assertion) might be better substituted today as “Who has a shared interest in the value and protection of data?” (a 21st Century proposition).
  • 2006 — Facebook is formed, among the first companies that created a “social network.” (I’m sure the adult content sector preceded it, as it often points us the way.) In one industry after another, digital disruption reorders supply chains, consumer-brand relationships, shopping practices, and name-your-own-business here. The Great Recession, and venture capital, serves to speed the quest for data-defined efficiency and transformation.
  • 2017 — Equifax, one of the United States three leading credit and information bureaus on Americans, experiences a breach of epic proportions. While the nation was fascinated with subsequent public hearings about Facebook, its data deals, and its (ahem, beneficial) targeted advertising practices, a potentially much more egregious purveyor of harm – sponsored government hacking of the highest order – largely gets a ho-hum from the general public, at least until this past week.
  • 2020 — California fragments online privacy protection in the United States – only underscoring the need for the federal government to act sooner than later. Support Privacy for America.

So, yes, there’s a lot of Data Love out there — and, like all relationships that are precious, they demand a huge amount of attention, respect, and honor — and celebration. See you soon in Orlando!

 

 

What Did You Do on Data Privacy Day 2020? Do Tell Us.

Each year, Jan. 28 is known as “Data Privacy Day” in the United States and globally — also Data Protection Day in other jurisdictions. As business organizations — and marketers — we see that it’s a day when consumers are reminded to exercise their “privacy rights.”

Each year, Jan. 28 is known as “Data Privacy Day” in the United States and globally — also Data Protection Day in other jurisdictions.

As business organizations — and marketers — we see that it’s a day when consumers are reminded to exercise their “privacy rights” and take advantage of tips and tricks for safeguarding their privacy and security. In our world of marketing, there are quite a few self-regulatory and co-regulatory tools (U.S. focus here) that enable choices and opt-outs:

  • To opt out of commercial email, direct mail, and telemarketing in certain states, consumers can avail themselves of DMAchoice. For telemarketing, they can also enroll on the Federal Trade Commission’s Do Not Call database.
  • For data collected online for interest-based ads, consumers can take advantage of Digital Advertising Alliance’s WebChoices and Network Advertising Initiative consumer control tools, which are accessible via the ubiquitous “AdChoices” icon. DAA also offers AppChoices, where data is collected across apps for interest-based ads. [Disclosure: DAA is a client.]
  • Now that California has a new consumer privacy law, consumers there can also take advantage of DAA’s new “Do-Not-Sell My Personal Information” Opt Out Tool for the Web. Its AppChoices mobile app also has a new CCPA opt-out component for “do not sell.” Publishers all over the Web are placing “Do Not Sell My Personal Information” notices in their footers, even if others outside California can see them, and offering links to their own in-house suppression lists, as well as DAA’s. Some publishers are using new the Privacy Rights icon to accompany these notices.

Certainly, businesses need to be using all of these tools — either as participants, or as subscribers — for the media channels where they collect, analyze, and use personal and anonymized data for targeted marketing. There’s no reason for not participating in these industry initiatives to honor consumer’s opt-out choices, unless we wish to invite more prescriptive laws and regulations.

We are constantly reminded that consumers demand high privacy and high security — and they do. We also are reminded that they prefer personalized experiences, relevant messaging, and wish to be recognized as customers as they go from device to device, and across the media landscape. Sometimes, these objectives may seem to be in conflict … but they really are not. Both objectives are good business sense.

As The Winterberry’s Group Bruce Biegel reported while presenting his Annual Outlook for media in 2020 (opens as a PDF), the U.S. data marketplace remains alive and well. For data providers, the onus is to show where consumer permissions are properly sourced, and transparency is fully authenticated and demonstrated to consumers in the data-gathering process. It’s a rush to quality. Plainly stated, adherence to industry data codes and principles (DAA, NAI, Interactive Advertising Bureau, Association of National Advertisers, among others) are table stakes. Going above and beyond laws and ethics codes are business decisions that may provide a competitive edge.

So what did I do on Data Privacy Day 2020? You’re reading it!  Share with me any efforts you may have taken on that day in the “public” comments below.

2020: A Big Year for Media Spend Will Underscore Data’s Role in Marketing Strategy

With the longest U.S. economic growth span on record, one might think the wheels may be about to come off of the economy — and marketing spend along with it. Not so, says Bruce Biegel, senior marketing partner at The Winterberry Group, during his annual forecast about marketing strategy.

It is the best of times.

With the longest U.S. economic growth span on record, one might think the wheels may be about to come off of the economy — and marketing spend along with it. Not so, says Bruce Biegel, senior marketing partner at The Winterberry Group, during his Direct Marketing Club of New York annual presentation, “The Outlook for Data Driven Advertising & Marketing 2020.”

marketing strategy
Source: Winterberry Group (2020), with Permission | Credit: Winterberry Group

Sure, there is caution. The Great Recession displaced many — and served to accelerate digital disruption from retail to finance to certainly marketing, forever. Perhaps businesses have never felt safe, sound, and secure ever since. One might call it “wise agitation.” And it really has been consumer spending that has served as the primary driver of growth, particularly in 2019.

Not the R Word …

Outside of business caution and flat earnings, where are the signs of another recession? They are hard to find.

Inflation and wage growth are hardly sputtering — even as the nation’s unemployment rates are at record lows. Trade rows and impeachment proceedings only appear to buoy the stock market. Even inside the world of marketing, privacy restrictions have not diminished the luster of data deployed for marketing and insight. And with the Olympics and a General Election this year, it should be times aplenty for many media channels, agencies, data providers, and tech companies — as these events are traditional hallmarks of spending.

So who are some of the winners in the current marketing and media environment?

… But plenty of D, Even Still

D, as in Direct: Biegel noted that “Buy Direct” is creating continuous rise and sale in DTC [direct to consumer] brands. The subscription economy is booming and traditional distribution channels — read, retail — continue with a “D” of their own, “disintermediation.”

“The five-year growth (through 2019) of DTC retail is four times that of the retail market revenues — 7.64% growth vs. 1.78%,” he reports.

That doesn’t translate to digital-first success, however, as such approaches are not scaling as rising costs in paid social, for example, are inhibiting customer acquisition.

marketing strategy
Source: Winterberry Group Spend Estimates (2020)

D, as in Digital: Online media spending overall grew by 19.1% in 2019 — compared with a 5.9% decline in offline media spending for the same year. Among all digital media categories in 2019, paid search grabbed the largest share — followed by display and paid social. Yet search spending “only” grew by 13.2%, compared to 21% growth for display, and 23% growth for paid social. For 2020, online media spending will continue to climb — reaching $166.4 billion in spending, while offline media will reverse its decline and post a 2.3% climb this year (remember, Olympics and Elections) to $223.1 billion.

D, as in Data: Data spending also posted healthful growth in 2019 — up by 5% — with another 6.2% growth expected in 2020. Is data working harder for marketers — as in, increasing marketing efficiency? Possibly. Spending on offline data dropped 5.5% in 2019 — while spending on email data and analytics posted 22.4% growth, and spending on digital media data and analytics (other than email) grew by 14.4%. Yet businesses are wholly satisfied with their own level of “data-centricity.” Biegel says, “Organizations are slightly more ‘data-centric’ this year than when asked in 2017 — on the whole, industry data-centricity is not progressing as envisioned.”

marketing strategy
Source: IAB-Winterberry Group Data-Centric Org (2020)

What’s Driving Data Strategy at Businesses?

Beigel reports three primary facilitators:

  • A desire to deliver better customer experiences;
  • Heightened regulatory compliance requirements and need to honor consumer preferences; and,
  • Increased demand to better leverage both first- and third-party data assets.

With a data-for-marketing marketplace in the United States now valued — both offline and online —- at $23 billion, those are three very important drivers that marketing professionals needs to get right. Or else our C-suite credibility may be diminished.

Artificial intelligence also has benefited from this reverence for data. Beigel reports that $11 billion has been invested globally in AI in the past five years — with 80% of marketers seeing AI “revolutionize” marketing in the next five years. Much of this investment is set on drawing insights from both structured and unstructured data sources.

And Where Are There Lingering Concerns?

Besides enterprise command of data assets, which could go either superbly or not, there are other concerns — both macro and micro, Biegel reports.

U.S. economic growth will likely slow to 1.9%, with global growth at pronounced risk. Corporate earnings may disappoint — leading to tightened purse strings. Tariffs may be reduced – nation by nation, region by region — but to what immediate impact? In short, Biegel says, “Limited tailwinds indicate that growth must be earned or bought.”

Among offline media there will be pockets of growth — outdoor, shopper marketing, linear and addressable TV — though direct mail will only squeak growth, with radio, newspaper, and magazines continuing their declines (even as their digital counterparts grow).

Search, display, and social will continue to dominate online media spend — but less mature channels, such as influencer marketing, digital video, and OTT [over-the-top] streaming, and digital audio will post rapid growth from much smaller bases. That portends good times for online data — but is it all rosy?

marketing strategy
Source: Winterberry Group Spend Estimates (2020)

For example, are customer acquisition and retention costs, though, declining in these channels? It may be that media inflation will eat into marketing efficiency, particularly if “targeting” data gets less precise and, as a result, relevance gets more elusive. Privacy restrictions, while well-meaning, are not always implemented in such a way that serve best consumers. Still, only 16% of businesses have reduced their spending and reliance on certain kinds of data as a result of new and potential data privacy regulations, Biegel reports.

So, come December 2020, will all of these predictions and concerns bear out? That’s one of the reasons I attend Bruce Biegel’s Annual Outlook at DMCNY each year. As great a prognosticator as he is and as on-target as his business, data, and economic models are — he’s always close enough to the market to say where struggles remain, where the work of data-driven marketing is hard, where hiccups happen, and the like. These are all of the many micro and macro reasons that any best of times can go awry.

His January 2020 predictions are now in the books — and we will all be back again in January 2021 — barring any hiccups.

Marketers Caroling to CCPA: ‘Winter Wonderland’

Marketers caroling may not be what immediately comes to mind to get you in the holiday spirit, but here’s a little ditty about how useful data is to marketers. Sing it along to the melody of “Winter Wonderland.”

To all my many friends who are marketers in the field — the California Privacy Protection Act, new data privacy laws in Maine and Nevada, and who’s next? — this, too, we will endure. All the same, we shall all find new paths to prosper in the New Year, and the consumer will be better for it.

And yes, we should all be looking — shouting from the rooftops — for a single standard law from Congress sooner than later. Americans deserve better!

Is this working for you? I accept, I accept, I accept, I accept, I accept, I accept. Opt-out. Opt-Out. Opt-Out. Opt-Out, infinitum. In your face on every site you visit, and on every app you use?  I want to control data flows about me — not with a browser, not with a default that fails the financing of relevant content — but this is too much. Better for all to have acceptable uses discerned from unacceptable ones — defined by benefits and harms, respectively — legislate THAT, and let innovations flow.

So please join me in my sing-along:

“There’s a tale, are you listening?
Data flails, for the christening.
A new law in sight.
About to take flight,
Drownin’ in a regulated land.

Gone away is the long tail …
Within the walls, a new prevail.
Competition, insights,
Strategies in plight,
Drownin’ in a regulated land.

On the home page we can place an opt-out
Make it clear that data’s not for sale

Another referendum will get plopped out
‘I accept’ and the Internet will fail.

Innovation, on a vacay…
As a patchwork, takes a mainstay
Know better than us
Who can we trust?
Drownin’ in a regulated land

In the filings we can set it all right
Consumer trust is all that we care
They’ll say, ‘are you kidding, you get no rights
Except for private actions in the air.’

And so we toil, we perspire
As the relevance gets retired
They say privacy!
We know it’s not free,
Drownin’ in a regulated land.

[And the big ending…]

Did you say $55 billion?

[Oh, yes] Drownin’ in a regulated land.

Happy Holidays, everyone!

Earn Consumer Trust Through ‘Surprise and Delight’ in a Post-Privacy Age

Recent consumer research from Pew Research Center shows we have some work to do persuading consumers to let us use data about them for marketing. Right now, the risks seem to outweigh the benefits, in consumers’ view. At least for now.

Recent consumer research from Pew Research Center shows we have some work to do persuading consumers to let us use data about them for marketing. Right now, the risks seem to outweigh the benefits, in consumers’ view. At least for now.

Marketing may be an annoyance to some — but too often, it’s conflated by consumers (and privacy advocates, and some policymakers) to our detriment into real privacy abuses, like identity theft, or hypothetical or imagined outcomes, such as higher insurance or interest rates — to which clearly marketing data has no connection.

There needs to be a bright line affixed between productive economic use of data (such as for marketing) — and unacceptable uses (such as discrimination, fraud, and other ills).

As consumers feel they have lost all data control — perhaps one might describe the current state as “post-privacy” — it is doubtful the answer to consumer trust lies in more legal notices pushed to them online. Consumers also have told Pew the emerging cascade of notices are not well understood or helpful.

Consumer Trust
Image Source: Pew Research Center, 2019

When Pew explores more deeply the root of what consumers find acceptable and unacceptable, opportunities for marketers may indeed arise. For example, the study summary states:

“One aim of the data collection done by companies is for the purpose of profiling customers and potentially targeting the sale of goods and services to them, based on their traits and habits. This survey finds that 77% of Americans say they have heard or read at least a bit about how companies and other organizations use personal data to offer targeted advertisements or special deals, or to assess how risky people might be as customers. About 64% of all adults say they have seen ads or solicitations based on their personal data. And 61% of those who have seen ads based on their personal data say the ads accurately reflect their interests and characteristics at least somewhat well. (That amounts to 39% of all adults.)”

This is why regulating privacy — from self-regulation to public policy — is so challenging. A broad brush is not the right tool. We want to preserve the innovation, we want to improve consumer experiences, while giving consumers meaningful protection from data use practices that are harmful and antithetical to their interests.

An Industry Luminary Lends Her Perspective

Image: Martha Rogers, Ph.D. (LinkedIn)

Martha Rogers, Ph.D., who co-authored the seminal book “The One to One Future”with Don Peppers in 1993, helped to usher in the customer relationship management (CRM) movement. Today, CRM  often manifests itself in brands seeking to map customer journeys and to devise better customer experiences, and a lot of business investment in data and technology.

Reflecting on privacy last month in New York, Rogers said, “The truth of the matter is, we always judge ourselves by our intentions. Yet we judge others by their actual actions. The problem is that everyone is doing the same thing with us [as marketers].”

How much of that business spending resonates with consumers? “When 400 chief executive officers were asked if their companies provided superior customer experiences, 80 — that’s eight-zero — percent said ‘yes.’ Yet only 8% of customers said that companies were providing superior customer experience. Customers also judge us by our actions, not by our intentions.”

Rogers told two “surprise and delight” stories that illustrate how powerful smart data collection, analysis, and application can be.

“We need customer data to get the job done. A regular Ritz-Carlton customer I know once asked hotel staff for a hyper-allergenic pillow for his room. Now when he goes to a Ritz-Carlton, he always has a hyper-allergenic pillow in his room. He told me he just loved how the Ritz-Carlton had changed over all its pillows to hyper-allergenic ones.”  Rogers said she didn’t have the heart to tell him it was just his room — and the hotel simply had recorded, honored, and anticipated his preference.

Another story came from insurer USAA. Upon returning from tours of duty in Iraq and Afghanistan, USAA sent a refund on auto insurance premiums in the form of a live check and a letter. The letter thanked the soldiers for their service, and reasoned that a car must not have been used much or at all, while a soldier was overseas — hence, the refund. “Do you know 2500 of these checks were returned by customers, uncashed?” Rogers reported, noting that many of these military families have limited means. “Wow, stay strong … keep your money — some of the policy holders said to the company. How do you compete in that category if you’re another insurance company?”

These two cases both show smart data collectoin — applied — builds customer trust and loyalty, no matter what their feelings may be about privacy, in general.

“There are three reasons why we care about privacy,” Rogers said. “One is because there are criminals out there. We don’t want to give data to the robbers or the hackers. Second is because some of us do have secrets — and I’m not naming any names. And we don’t want people knowing every blessed thing about us. And the third reason that we just want our privacy is because [our lives] can be embarrassing.”

Consumer Trust Is Like a Pencil Eraser

“Privacy in an interconnected world is a pipe dream, an oxymoron,” she continued. “Still, we have to access and use customer data to give those great customer experiences. So what happens now? We have to do things [with data] that are good for customers, and not for ourselves [as marketing organizations]. Regulations and laws are really just a floor.”

“If you want to be truly trust-able, it’s about doing things right. One lie can ruin a thousand truths,” she said. “Trust is sort of like the eraser on a pencil. It gets smaller and smaller with each mistake we make. So we have to be careful. Do things right. Do the right thing. Be proactive.”

“No matter how fantastic technology is, it can’t top that trust,” she said.

How many Ritz-Carltons and USAAs — surprise and delight — does it take to undo a Cambridge Analytica or an Equifax? I’m actually optimistic on this. Because better customer experiences, brand relevance, and resonance through data insights will continue to win. We just have to prove it, to the customer, millions of times, one by one, every day — in the very important data-driven marketing work we do.

 

Marketing Pros Provide Advice for Peers

When marketing pros provide advice, marketing practitioners listen. One of the high points of the New York marketing community calendar each year is the Silver Apple Gala hosted by the Direct Marketing Club of New York. The fete toasts the business and industry leadership success of honored individuals.

When marketing pros provide advice, marketing practitioners listen. One of the high points of the New York marketing community calendar each year is the Silver Apple Gala hosted by the Direct Marketing Club of New York. The fete, held this year on Nov. 7 near Times Square, toasts the business and industry leadership success of honored individuals, and at least one corporation or organization.

Each “Silver Apple” recipient has contributed for 25 or more years to our field, and since 1985, there have been 248 such honorees, including these four individuals in 2019:

Marketing, Career Wisdom They Share

So when more than 200 of your friends, family, and peers come together, what pearls of wisdom do you have to share?

Carl Horton, IBM

“The ability to execute against the dream in real time,” is what excites Carl Horton, Jr., in his current position in B2B marketing at IBM. Horton credits colleagues who have placed “personal investments in me” and dared to let him take crazy ideas (artificial intelligence applications don’t seem so crazy today) and make them reality, as well as the unconditional love of family.

One key takeaway from Horton:

“The importance of diversity in leadership and innovation: The NextGen of innovation may come from someone of experience, income, race, gender, gender identity, very different from our own.”

Here, here, we need to foster it.

Britt Vatne, ALC

Britt Vatne, who leads the data management practice at ALC, talked about a career pivot 15 years ago, when she worked with a nonprofit client for the first time, March of Dimes, and it showed to her how critical acquiring, retaining, and growing donors are. She also credited industry luminaries, such as the late Bob Castle and the energetic Donn Rappaport (in the room) – as well as her father, who came to America from Norway, never finished primary school, and taught her “there is no substitute for hard work.” She was the first of her family to go to college.

“Being human, being respectful, and having integrity are non-negotiable,” she said. “Be a positive role model, and you’ll have the love and loyalty of family.”

And probably, quite a few colleagues and clients, too.

Joe Pych, NextMark & Bionic Advertising

Joe Pych, who is the startup founder of two companies — NextMark and Bionic Advertising, says his “go-to metric is sales growth.” CRM [customer relationship management] is so much more of an opportunity than simply managing costs, he says. Set a goal, uncover an idea, execute, and measure results.

”I feel selfish standing alone with so much support I’ve received over the years,” he said, referring first to his mother, who put four children through college on an electrician’s salary – and then went and got a masters herself.

He also thanked many of his client data businesses that helped make his first company take off — companies, such as MeritDirect, ALC, Worlddata, and Specialists Marketing Services (SMS), among others – who took a chance on a Hanover, NH-based enterprise. To his wife, Robin.

“Those missed vacations, I’m sorry … again.”

Gretchen Littlefield, Moore DM Group

Gretchen Littlefield, CEO of Moore DM Group for the past two years, also served at Infogroup for 14 years, where she helped develop its nonprofit, political, and federal government marketing practice – which propelled her into her current role atop Moore.

In 2018, she co-founded the Nonprofit Alliance, where she serves as vice chair, to advance in Washington the interests of nonprofit and charitable organizations.

“I fell into this business like everyone else,” she said, starting from data entry and advancing to “getting data [insights] out of the industry.”

She thanked many industry leaders among her mentors and influencers, among them Jim Moore, Larry May, and Vin Gupta.

“It seems as if on every innovation, we are working together and competing all the time. Coopetition,” she said. “The flow of data – from list rentals, to coops, to marketing clouds. We share data for growth.”

Littlefield also emphasized investment in education, citing Marketing EDGE and Direct Marketing Club of New York, for their respective roles in attracting bright students to the marketing field.

“Time goes by faster than we expect — Joe [Pych] and I were Marketing EDGE Rising Stars back in the day. I’m just as excited today as my first day in direct marketing, but mostly grateful for the friendships.”

In addition, there were three special honors bestowed, among them a first-time “Corporate Golden Apple” to Marketing EDGE for its more than half-century of creating and connecting market-ready college students for careers in marketing. And two Excellence Apples:

  • 2019 Apple of Excellence, Advocacy:
    Tony Hadley, SVP, Regulation and Public Policy, Experian (Washington, DC)
  • 2019 Apple of Excellence Disruptor:
    Mayur Gupta, CMO, Freshly (New York, NY)

There’s more to share – but that likely will be another post! Stay tuned …

Were Publishers the First DTC Brands? How 2 Areas of Marketing Align

DTC brands are hot entities. Practically any consumer product can be translated to a paid subscription business model. As a direct result, circulation and subscription marketing professionals have become very attractive new hires to the growing bevy of direct-to-consumer brands.

DTC brands are hot entities. Practically any consumer product can be translated to a paid subscription business model.

As a direct result, circulation and subscription marketing professionals — a mainstay of the direct marketing discipline for decades — have become very attractive new hires to the growing bevy of direct-to-consumer brands. In reverse, too — publishers are enriching their content offerings for their customers in service to them, acting as DTC brands, themselves.

That was a main thrust at a recent joint meeting of the Direct Marketing Club of New York and The Media and Content Marketing Association. The joint meeting, titled “What DTC Brands and Publishers Can Learn from Each Other in Today’s Subscription Economy,” allowed publishers to exchange ideas with DTC brand reps and others.

DTC brands meeting
Source: DMCNY, Twitter @dmcny | Direct-to-Consumer Brands, Publishers and their Admirers exchange perspectives around customer value and experiences.

“Magazines are the original DTC,” said Mike Schanbacher, director of growth marketing at Quip, a subscription business for toothbrushes and dental care,. He noted that traditional circulation metrics, such as lifetime value and churn rates, very much factor in the business and marketing plans of a subscription commerce company.

Alec Casey, CMO of Trusted Media Brands Inc. (TMBI, which manages 13 brands, among them Reader’s Digest), described how his business continually explores expansion of product and content — to books, book series, music and video — and potentially podcasts and subscriber boxes.

“We are always DTC,” he said, meaning that customers’ interests drive every brand extension in the company.

Data can reveal interesting patterns, he noted. Visitors to Family Handyman digital content is 50% men, 50% women, for example, while print content is dominated by men.

DTC Is High-Speed

One hallmark of the newest DTC brands is velocity.

“When bananas and avocados are sitting in the warehouse beneath you, there’s urgency,” said Tammy Barentson, CMO of Fresh Direct, who previously had had a lengthy career in publishing with Time, Meredith, Hearst, and Conde Nast. Innovations are sought for and tested constantly … and rapidly: “There’s a mindset here … ‘That bombed. What did we learn?’’ ” she said, which is a marked change from her previous publishing posts, where testing was more considered.

Barentson also noted that the Fresh Direct executive team meets every morning to listen in collectively on each department’s dashboard of metrics — and that can inspire action.

“There’s a lot I can learn from operations and customer service data,” she said. “For example, how many deliveries are made per hour might tell me geographies where I might focus more customer acquisition.” Her own team pores through subscription data — who orders groceries one, two or three times a week, or just for special events — “how do we bring them up the food chain?” she quipped.

One of the first publishers to capitalize on digital was Forbes and Forbes.com, said Nina LaFrance, who is Forbes’ lead for consumer marketing and business development. Today, the corporation’s digital sites generate 80 million unique visits per month — but it’s the drill-down on the data that is perhaps the most exciting, enabling Forbes to help advertisers connect with customers across print, digital, programmatic display, brand voice, social channels, live events, apps, webinars, and more. Forbes has its own in-house studio to help brands develop content for marketing across the portfolio.

“We adapt and embrace,” LaFrance said, responding to the all the challenges and opportunities presented to publishers and DTC brands alike — issues, such as coping with “walled gardens,” tech giants, privacy laws, data restrictions and regulations, and the Cookie Apocalypse.

Communities Are Sticky

A common theme expressed by the panel was the desire to create a sense of “membership” and “community” — going beyond the transaction to create “stickiness.” That’s where content development matters. “

At Quib, we try and give a membership feel,” Schanbacher said. “Data is the goal,” noting the better consumer understanding and insights that come from content engagement, data collection, and analysis.

However, not every piece of content translates equally to profit, LaFrance reports.

“Visitors to our home page, or who respond to direct mail, may be more profitable to us than those who link to an article from a social post,” she says — and the ability to measure that customer value across channels is a success, in its own right.

Which is probably the most valuable insight of all. These professionals — DTC brands and publishers — revere how data serves, bolsters, and builds the customer relationship, and they have all pursued a shared culture for measurement, insight, and application to build the brands, build the business, and connect to consumer experience. As subscription commerce grows — it has doubled in the past five years — we know how invaluable such data reverence can be.