Data Will Lead Marketers Into a New World in 2020

What will be so different in this ever-changing world, and how can marketers better prepare ourselves for the new world? Haven’t we been using data for multichannel marketing for a few decades already?

The year 2020 sounds like some futuristic time period in a science fiction novel. At the dawn of this funny sounding year, maybe it’s good time to think about where all these data and technologies will lead us. If not for the entire human collective in this short article, but at the minimum, for us marketers.

What will be so different in this ever-changing world, and how can marketers better prepare ourselves for the new world? Haven’t we been using data for multichannel marketing for a few decades already?

Every Channel Is, or Will Be Interactive 

Multichannel marketing is not a new concept, and many have been saying that every channel will become interactive medium. Then I wonder why many marketers are still acting like every channel is just another broadcasting medium for “them.” Do you really believe that marketers are still in control? That marketers can just push their agenda, the same old ways, through every channel? Uniformly? “Yeah! We are putting out this new product, so come and see!” That is so last century.

For instance, an app is not more real estate where you just hang your banners and wait for someone to click. By definition, a mobile app is an interactive medium, where information goes back and forth. And that changes the nature of the communication from “We talk, they listen” to “We listen first, and then we talk based on what we just heard.”

Traditional media will go through similar changes. Even the billboards on streets, in the future, will be customized based on who’s seeing it. Young people don’t watch TV in the old-fashioned way, mindlessly flipping through channels like their parents. They will actively seek out content that suites “them,” not the other way around. And in such an interactive world, the consumers of the content have all the power. They will mercilessly stop, cut out, opt out, and reject anything that is even remotely boring to “them.”

Marketers are not in charge of communication anymore. They say an average human being looks at six to seven different screens every day. And with wearable devices and advancement in mobile technologies, even the dashboard on a car will stop being just a dumb dashboard. What should marketers do then? Just create another marketing department called “wearable division,” like they created the “email marketing” division?

The sooner marketers realize that they are not in charge, but the consumers are, the better off they would be. Because with that realization, they will cease to conduct channel marketing the way they used to do, with extremely channel-centric mindsets.

When the consumers are in charge, we must think differently. Everything must be customer-centric, not channel- or division-centric. Know that we can be cut off from any customer anytime through any channel, if we are more about us than about them.

Every Interaction Will Be Data-based, and in Real-time

Interactive media leave ample amounts of data behind every interaction. How do you think this word “Big Data” came about? Every breath we take and every move we make turn into piles of data somewhere. That much is not new.

What is new is that our ability to process and dissect such ample amounts of data is getting better and faster, at an alarming rate. So fast that we don’t even say words like Big Data anymore.

In this interactive world, marketers must listen first, and then react. That listening part is what we casually call data-mining, done by humans and machines, alike. Without ploughing through data, how will we even know what the conversation is about?

Then the second keyword in the subheading is “real-time.” Not only do we have to read our customers’ behavior through breadcrumbs they leave behind (i.e., their behavioral data), we must do it incredibly fast, so that our responses seem spontaneous. As in “Oh, you’re looking for a set of new noise-canceling earbuds! Here are the ones that you should consider,” all in real-time.

Remember the rule No. 1 that customers can cut us out anytime. We may have less than a second before they move on.

Marketers Must Stay Relevant to Cut Through the Noise

Consumers are bored to tears with almost all marketing messages. There are too many of them, and most aren’t about the readers, but the pushers. Again, it should be all about the consumers, not the sellers.

It stops being entirely boring when the message is about them though. Everybody is all about themselves, really. If you receive a group photo that includes you, whose face would you check out first? Of course, your own, as in “Hmm, let me see how I look here.”

That is the fundamental reason why personalization works. But only if it’s done right.

Consumers can smell fake intimacy from miles away. Young people are particularly good at that. They think that the grownups don’t understand social media at all for that reason. They just hate it when someone crashes a party to hard-sell something. Personalization is about knowing your targets’ affinities and suggesting — not pushing — something that may suite “them.” A gentle nudge, but not a hard sell.

With ample amounts of data all around, it may be very tempting to show how much we know about the customers. But never cross that line of creepiness. Marketers must be relevant to stay connected, but not overly so. It is a fine balance that we must maintain to not be ignored or rejected.

Machine Learning and AI Will Lead to Automation on All Fronts

To stay relevant at all times, using all of the data that we have is a lot of work. Tasks that used to take months — from data collection and refinement to model-based targeting and messaging — should be done in minutes, if not seconds. Such a feat isn’t possible without automation. On that front, things that were not imaginable only a few years ago are possible through advancement in machine learning or AI, in general.

One important note for marketers who may not necessarily be machine learning specialists is that what the machines are supposed to do is still up to the marketers, not the machines. Always set the goals first, have a few practice rounds in more conventional ways, and then get on a full automation mode. Otherwise, you may end up automating wrong practices. You definitely don’t want that. And, more importantly, target consumers would hate that. Remember, they hate fake intimacy, and more so if they smell cold algorithms in play along the way.

Huge Difference Between Advanced Users and Those Who Are Falling Behind

In the past, many marketers considered data and analytics as optional items, as in “Sure, they sound interesting, and we’ll get around to it when we have more time to think about it.” Such attitudes may put you out of business, when giants like Amazon are eating up the world with every bit of computing power they have (not that they do personalization in an exemplary way all of the time).

If you have lines of products that consumers line up to buy, well, all the more power to you. And, by all means, don’t worry about pampering them proactively with data. But if you don’t see lines around the block, you are in a business that needs to attract new customers and retain existing customers more effectively. And such work is not something that you can just catch up on in a few months. So get your data and targeting strategy set up right away. I don’t believe in new year’s resolutions, but this month being January and all, you might as well call it that.

Are You Ready for the New World?

In the end, it is all about your target customers, not you. Through data, you have all the ammunition that you need to understand them and pamper them accordingly. In this age, marketers must stay relevant with their targets through proper personalization at all stages of the customer journey. It may sound daunting, but all of the technologies and techniques are ripe for such advanced personalization. It really is about your commitment — not anything else.

Reputational Risks Brands Face in 2020 and What to Do About Them

The CMO Council touched on many of the reputational risks that marketers need to have on their radar in 2020 and beyond. Below are five brand risks that I believe will be widespread in the year ahead, along with a bit of advice for marketers.

Marketers are responsible for building, managing, and protecting corporate brands. Considering how quickly a brand can go from loved to loathed, being a brand custodian is a daunting task. With a tarnished reputation, companies lose customers, employees, investors, and value.

In a recently released pictogram and listicle, “Bruised, Battered, and Embattled Brands,” The CMO Council highlighted 20 of the most challenged brands in 2019 and 15 of the most critical issues impacting brand perception. The CMO Council touched on many of the reputational risks that marketers need to have on their radar in 2020 and beyond.

Below are five brand risks that I believe will be widespread in the year ahead, along with a bit of advice for marketers.

Privacy and Security Incidents

Trust is fundamental to brand reputation. Companies want their customers to trust them and feel secure transacting with their company. Maintaining data privacy and keeping information secure is a customer expectation, and rightly so. And while privacy and security are not new reputational risks, CCPA ups the ante and no company wants to be the first company penalized and publicized for failure to comply.

Advice: Build alignment between marketing and privacy teams, with a focus on transparency, trust, and preparedness.

Polarizing Politics

2019 brought to light many politicized issues in workplaces, such as the Wayfair worker protest against the sale of beds to migrant camps. As we embark on an election year, companies will continue to be thrust into the political divide, whether they like it or not.

Advice: Companies need to establish their political boundaries and clearly communicate any limitations to their stakeholders; in particular employees, or they risk being the next brand battleground.

Marketing and Advertising Fails

Brand snafus are identified and discussed at an unprecedented rate across social and digital channels. Peloton’s holiday advertisement is a prime example of an ad campaign turned viral branding criticism. The Peloton scrutiny expanded well beyond social, with coverage across national news outlets and even an “SNL” skit.

Advice: Test your marketing programs with a wide audience before launch. Monitor social and digital conversations about your brand. When all else fails, apologize sincerely.

Compromised Health and Safety

PG&E, Boeing, and Juul failed consumers and their brand reputations have taken a massive hit. All three landed on the CMO Council’s list of companies in the crosshairs. A company that is negligent about health and safety will face devastating reputational consequences.

Advice: Hurting people (or any living thing) is never OK. If your company is careless and harmful, get your resume in order, immediately.

Management Missteps

Behavior in the corner office is under the microscope like never before. Executives are (finally) being held responsible for how they treat employees and for their ethics. With CEO turnover at an all-time high, far too many of these changes are being driven by misconduct, as we saw with the abrupt departure of McDonald’s CEO over a violation of company policy related to a consensual relationship.

Advice: View leadership changes as an opportunity to redefine the brand. Follow a clear playbook to reassure internal and external stakeholders.

No Risk, No Reward

There will undoubtedly be brand reputation winners and losers this year. However, responsible marketers understand the risks they may face and can learn from the mistakes of those who’ve suffered before them.

3 Google Analytics Tips for E-Commerce

There’s a lot more to Google Analytics than looking at basic traffic metrics. These tips will help you make improvements to drive more e-commerce sales from your different marketing channels. 

Many businesses using Google Analytics are only scratching the surface of what Google Analytics can do. By not taking advantage of the platform’s more powerful features, they lose out on getting a lot of valuable insights about their marketing and how to make the most of their budgets.

Covering every aspect of Google Analytics would require an e-book. So in this article, I’ll walk through three steps to get you started and more familiar with Google Analytics.

1. Base Your Website Objectives on Specific Business Needs

You can use Google Analytics to measure how well your website performs in helping you hit your company’s target KPIs. Do not rely on the defaults set up in Google Analytics. Those are meant to cover a broad range of companies, and some of them are not applicable to your business needs.

Instead, take the time to define the important KPIs that your website should be hitting. For example, in addition to online sales, is your goal to generate quote requests for larger/bulk orders? Is another goal to collect email addresses by offering a free report? Where do visitors need to go on your website if they are interested in your products or services?

As you think through these goals, you’ll start to identify conversions that you need to set up in the Google Analytics admin area. This is a critical step that will allow you to monitor the performance of all of your different marketing channels. For example, if your goal is to generate quote requests, then you’ll need to set up a conversion to measure quote requests. Once that’s done, you’ll be able to run reports to see how many quote requests were generated from SEO vs. Google Ads vs. Facebook, or any other marketing channel you’re using.

We also recommend using the audience reporting views to see if your website visitors are actually your ideal customers. You can create customized segments for tracking important demographic points, like age, gender, and location.

Reviewing the information on your visitors may give your more perspective. Maybe your company needs to change its marketing strategy or website layout to resonate more with your target market.

2. Use E-Commerce Tracking

Google Analytics offers a feature called Enhanced E-Commerce. You should see it when setting up your Google Analytics account. Here are a few ways you can use the feature to get a better understanding of the customer journey through your website and shopping portal.

  1. You can track the shopping and checkout behavior of each visitor to your site. That includes product page-views, shopping cart additions and removals, abandoned items, and completed transactions.
  2. You can view metrics, like revenue generated, average transaction quantity, conversion rates for specific products, and how quickly products get added to a shopping cart. You can see what point a customer loses interest in the shopping experience. That lets you focus on tactics that keep them engaged and encourage them to complete a purchase.
  3. You can measure the success of various internal and external marketing efforts meant to encourage shopping and checkouts by visitors. For example, you can see whether the new product banner put up increased conversion rates.

The various reports give you a clear view of the path customers take as they shop on your website.

3. Sync Google Analytics With Your E-Commerce Platform

Many e-commerce platforms, like Shopify, have the ability to quickly sync with Google Analytics. This can save you and your team a lot of time and frustration trying to set everything up manually.

For example, the e-commerce analytics reporting mentioned above requires knowledge of Javascript, if you want to set it up yourself. Always check with the support team for your e-commerce platform to see if they have already synced up with Google Analytics. If they have, then you could be set up in a matter of minutes.

Look Beyond Surface Data

There’s a lot more to Google Analytics than looking at basic traffic metrics. These tips should allow you to gain a better understanding of where you can make improvements to drive more e-commerce sales from your different marketing channels.

  • First, identify your business goals and set up conversions in the Google Analytics admin area.
  • Second, set up enhanced e-commerce analytics either manually or by syncing your e-commerce platform with Google Analytics.
  • And third, review all the e-commerce reports to see which marketing channels can be improved to increase your sales.

Want more tips on how to use Google Analytics? Click here to grab a copy of our “Ultimate Google Analytics Checklist.”

 

Direct Mail Planning for Your 2020 Marketing Goals

As we start the new year, direct mail planning is essential. The strategies we used in 2019 need updates to be more effective in 2020. According to the DMA, direct mail had an average response rate of 9% for house lists and 4.9% for prospect lists. How do your response rates compare?

As we start the new year, direct mail planning is essential. The strategies we used in 2019 need updates to be more effective in 2020. According to the DMA, direct mail had an average response rate of 9% for house lists and 4.9% for prospect lists. How do your response rates compare?

Looking at more than just response rates, how did your other metrics do this year? Starting with the worst performing ones, devise a different strategy to increase performance in 2020.

About 66% of mail is opened and reviewed. Direct mail not only cuts through the daily marketing clutter, but has been proven to drive digital activity and influence online purchasing decisions. Are your direct mail campaigns as effective as they can be? In the digital marketing arena email fatigue, ad blindness, and the increase in ad blocking, have combined to result in stagnating and sometimes declining performance. Direct mail should be combined with these types of channels in order to boost overall performance. Are you taking a multichannel approach for 2020?

Direct Mail-to-Multichannel Marketing

We live in an interconnected world, your customers expect you to communicate with them through the various channels they use. The companies that do this effectively see the best results. When you use campaigns that include both digital and direct mail, you, on average, receive 39% more attention than a digital-only campaign. Research shows messages delivered via direct mail can be powerfully motivating, with 92% of people driven to digital activity and 87% influenced to make an online purchase. Are you planning how to be more effective at this for 2020?

Personalization

Are you using the true power of direct mail? Personalization through variable printing is powerful. You can alter copy, offers, and even images, based on each person in your list. There are even ways to utilize more information, such as demographics, geographies, psychographics, and behavioristic data to go beyond a regular piece to a truly specialized one. When you are able to do this, you drive response much higher than before. What are you going to try in 2020?

Retargeting

Want to try something new for 2020? What about retargeted direct mail? What do we mean by that? You can retarget online activity by reaching out with direct mail. Some of the most common ways retargeting works are: for abandoned shopping carts; people who visited your website, but did not purchase; contacting lapsed customers; or creating new customers. So how do you get the mail addresses for online contacts? You can take a list of email addresses and append mail ones, or you can take a list of IP addresses that have visited your site and append mail addresses to it, or you can use mobile devise owner information to append mail addresses.

Mail Formats

For 2020, we need to think outside of the box and try new things. If all you have sent are letters or postcards, try a new format to gain more attention. Consider sending larger pieces, because they get higher response rates. If you are selling a high-priced item, consider using dimensional mail in order to drive more sales. These are more costly to send, but the ROI is much better.

Get creative and have some fun planning out your 2020 direct mail strategy! Are you ready to get started?

Where Is B2B Marketing Headed in 2020? 7 Predictions

Forecasting the future is a dangerous but irresistible practice for observers like myself. So let me plunge ahead with seven bets on likely new developments in the world of B2B marketing.

Forecasting the future is a dangerous but irresistible practice for observers like myself. So let me plunge ahead with seven bets on likely new developments in the world of B2B marketing.

Just don’t look at my predictions from last year to check my record for accuracy, please.

“My crystal ball is on back order,” as B2B database expert Bernice Grossman is fond of saying.

This year, my predictions range from retention to robots. I welcome your feedback!

A Move From the ‘Funnel’ to the ‘Relationship’

B2B marketers are expanding their roles from just cranking out lead generation campaigns to stepping in as managers of the prospect and customer relationship, in partnership with their sales counterparts. As business buying becomes more complex, with larger buying groups and longer buy cycles, marketers will continue to embrace the contributions they can make in market coverage, sales enablement, and ABM.

Voice Search Takes Hold in B2B Buying, for Real

Business buyers are already using their Siri, Alexa, Google Assistant (“Hey, Google!”), and Cortana devices to identify potential vendors. And CPQ technology that enables configure/price/quote on more complex products is coming up quickly. So, the table is set. We marketers need to get ready by adding structured data, beefing up our FAQs, and mobile-enabling our websites to get the best advantage.

Messaging Apps Go Enterprise

As messaging app usage soars, leading providers Facebook Messenger and WhatsApp (owned by Facebook) offer business solutions. The top application, so far, is customer service to solve problems quickly. But marketers are dipping their toes into product introductions, company news, promotions, and even purchasing with business customers. Of course, the granddaddy of business messaging, LinkedIn, is still the place to test the waters with these new channels.

Employee Advocacy Becomes Mainstream

Companies are realizing that they can harness their employees for customer acquisition, customer development, and HR recruitment.

Typical tactics:

  • Encourage employees to share company posts on social media.
  • Ask employees to recommend your company and its products to their friends and colleagues.
  • Provide them with logo merchandises to use and wear.

Here are some tips for how to get started.

Content Creation by Robots

It’s here. Still mostly in data-heavy fields like financial services. But as artificial intelligence tools improve, certain auto-generated copy applications are bound to follow. My guess is that some types of B2B social media posts are ripe for automation. But while I’m on the subject, let me refer you to Janneke Ritchie, who explains how robots will soon be taking on B2B tasks in areas like inside sales, customer service, and marketing operations. Yikes.

GDPR, CCPA Will Be Clarified for B2B

This is my fervent hope, anyway. Most enterprises have taken significant steps toward GDPR compliance, and are now investigating what needs to be done in the face of Jan. 1’s California Consumer Privacy Act. But what we really need is some action by regulators that will help us understand how regulatory concerns really apply to B2B vs. consumer marketing. And we also need action at the federal level here in the U.S., to simplify the current mishmash of state-level privacy legislation that is in the works.

B2B Marketers Embrace Current-Customer Marketing

Another fervent hope, but one that seems to be trending in the right direction. The new push is coming from the world of SaaS, where marketers realize that real profitability comes from attention to renewals, and defection prevention — the meat and potatoes of subscription marketing. For years, we’ve seen lead generation named as the top goal of B2B marketers, and typically a mere 15% of marketing budgets being devoted to retention activities. But when I hear software executives preaching about retention marketing, I think my hope may be justified. Customer penetration and expansion is a key source of profitable growth.

 

Happy 2020 to us all.

A version of this article appeared in Biznology, the digital marketing blog.

How-tos for Generational Marketing to Millennials vs. Gen Z

Millennials and Generation Zers have both broken out of a shell that generations prior were determined to mold themselves to. This fact, along with their closeness in age, have led many to believe that they have a lot of commonalities that can accommodate similar generational marketing strategies.

Millennials and Generation Zers are both notorious for shaking up the status quo in more ways than one. They’ve both broken out of a shell that generations prior were determined to mold themselves to. This fact, along with their closeness in age, have led many to believe that they have a lot of commonalities that can accommodate similar generational marketing strategies.

While they are adjacent generations, the qualities in which they have gained notoriety differ, especially as consumers. The rise of the newest wave of consumers, who make up roughly 40% of all customers in the market, is certainly creating changes as Gen Z’s desires are not perfectly aligned with their older generational neighbors. The people who make up this group were born between 1997 and 2012.

At the same time, this does not imply that advertisers should stop pushing their marketing efforts toward Millennials. Simply put, Millennials largely contribute to the U.S. economic capital with a generational wealth estimated at $24 trillion. This group is made up of people born between 1981 and 1996.

With these statistics in mind, it is important that brands learn how to make the most of both unique generational consumer behaviors. Here are different elements advertisers should keep in mind when targeting a Millennial vs. a Gen Z demographic.

Similarities

Before we break down the differences these two generations have as consumers, it’s important to acknowledge they do still have quite a bit in common. First, both groups are well-versed in social media and the amount of time they spend plugged in doesn’t vary too drastically.

Even at an average of 20 minutes less per day, Millennials were young and impressionable when the age of the Internet came to be and, as such, they are just about as savvy in social media as is Gen Z.

Second, both generations place importance on diversity, equality, and progressive social values. In contrast to generations prior, Millennials and Gen Zers have questioned many social norms that Boomers and Gen Xers have accepted as reality.

Though there are undoubtedly many similarities in the grand scheme of things, these generational differences must also be considered in order for marketers to successfully cater to both.

Attitude Toward Spending

Interestingly, the way Millennials’ and Gen Zers’ finances differ is quite great.

Many Millennials were young adults when the Great Recession hit the U.S. in 2007. Growing up with a poor economy at large taught this group to place value on quality over quantity, as they remain mostly optimistic about their personal finances.

With Gen Z being quite young at the start of the economic downturn, this generation adopted the notion of practicality and financial preparation from an early age.

How Can Brands Successfully Cater to Both Spending Behaviors?

For Millennials, quality over quantity means they are looking to invest their money in brands that create a unique product or experience that will noticeably enhance their quality of living. Millennials are inclined to do significant research before making a purchase, ensuring they’ve found the most beneficial product or experience for them. This is good news for marketers, as Millennials are constantly on the lookout for the next best thing to help them in their everyday lives. All brands need to do is prove they are the ones Millennials should be investing their time and money in, and they may have customers for life.

For Gen Z, it’s best to get right to it. Let the consumer know exactly why the product or experience is the best one for them and why it’s worth the money. As previously mentioned, this generation is very focused on responsible spending as a result of their early memories of the Great Recession. So, if you want to sell to Gen Z, make sure you keep your brand’s feet firmly planted on the ground. Approach selling in a practical manner and make sure your product has a clear purpose for its consumer.

Feeling Connected Through Social Media

It is apparent that both generations are avid social media users, and the feeling of connection that social media creates is well enjoyed by both. However, the ways they best receive those feelings of connection vary.

Millennials feel most connected through the more traditional sharing, pinning, and forwarding; predominantly on Facebook, Instagram, and Twitter.

Gen Zers have had social media at their fingertips for the majority of their lives and, as a result, they consume more media on fewer platforms. This group is very visual and prefers rapid consumption, mainly through Instagram, YouTube, Snapchat and, most recently, TikTok.

How Can Brands Leverage Connection in Their Marketing Efforts?

Millennials prefer the more traditional social media platforms and sharing techniques, because they’re easy ways to feel seen and heard. Brands can leverage this in their customer journeys through interaction: asking consumers questions, encouraging them to communicate in comments sections, and more. This creates a space where Millennials feel valued and contributes to their attitude that a brand can better their lives on a deeply personal level.

Gen Z’s short attention span makes their marketing needs exclusively geared toward them. Cut to the chase and get down to benefits of the product — this is the best way to reach them on their preferred social platforms. Utilizing influencers for brand marketing is an effective way to connect to this audience. With 10-second Instagram stories and #sponsored posts, brands can use their preferred social platforms to connect in a unique way that feels authentic to Gen Z.

Embracing Generational Differences as Marketers and Advertisers

As two groups who came one after the other, it’s no surprise that Millennials and Generation Z are very similar. Both known for questioning common ideas the predecessing generations easily accepted, the two generations have redefined marketing in a new era for brands. They value authenticity, social responsibility, and inclusion. But both have different consumer behaviors when it comes to their finances and how they connect. For marketers, it is more important than ever to optimize and strategize based on their ever-changing habits as consumers

Why Influencer Marketing Is Going From Fad to Marketing Trend

I have a prediction for 2020. I think 2020 will be the year when influencer marketing becomes a “big time” tactic. A confluence of factors are driving influencer marketing, including the supporting trends of historically low brand trust and the growing difficulty in getting meaningful brand exposure.

I have a prediction for 2020. I think 2020 will be the year when influencer marketing becomes a “big time” tactic.

A confluence of factors are driving influencer marketing, including the supporting trends of historically low brand trust and the growing difficulty in getting meaningful brand exposure.

Along with this prediction, I would like to make three recommendations for marketers to consider:

  • First, recognize that influencer marketing is still just an ad channel with good and bad exposure opportunities.
  • Second, Influencer takes discipline to manage. Most brands will want to work with multiple influencers to target a broader audience and the process can get unwieldy, quickly.
  • Finally, Influencer marketing will be hard to measure, but measure it you must.

Why I Think Influencer Marketing Is Here to Stay

We are spending an enormous amount of time on our smartphones and the bulk of that time is spent consuming entertaining or informative content. As a result, marketers have been pumping billions into mobile adverts.

One way that marketers have tried to reach consumers is through mobile banner ads. Every advertiser knows that most clickthroughs are accidental outcomes of trying to close the ad.

While video ads have better luck, it is still not stellar. IPG Media brands Media Lab published findings in 2017 that 65% of users commonly skip video ads.

Personally, that number feels low. When legitimate brand exposure does occur, it is dampened by the historically low levels of brand trust. That’s something that I describe as a silent tax on brand exposures.

The solution to this crisis is finding quality exposure. Brands can build trust with content providers, loosely called influencers.

Why Brands Still Need to Be Careful

Before we all start an ad bubble (and it may have already started), there are many reasons to be cautious of influencer marketing.

  • First, not everyone with compelling content is an influencer. But they are all called influencers. Some content providers just have “train wreck” value, and followers see them as part of a digital menagerie — with no credibility.
  • Second, it is also possible that influencers have artificially inflated their follower count. Most social platforms, so far, are not interested in policing follower counts beyond weeding out bots.
  • Third, influencers may not have a relationship with their followers. This limits their ability to influence on behalf of brands.

The full list of cautions around influencer marketing is longer. The larger lesson is this; Influencer marketing is a big opportunity, but it is also full of low-quality opportunities.

Now for the Good News

Influencer marketing works very well when influencers are carefully selected, and the brand content is authentic.

A 2019 report by Mediakix states that 80% of marketers found influencer marketing “effective” or “very effective.” However, to achieve good results takes discipline. This includes a willingness to mine social and other online data to understand the influencer’s own brand and history. Some influencers are not well-known beyond a core following. They sometimes have taken positions or done things that may not associate well with your brand.

A key step should be testing them for brand fit. Good judgment is important, but not enough. There are a growing number of tech and data-driven approaches to scan social history and bring forward potential issues. Making sure you understand how unintended brand traits may transfer onto your brand is also important. A good brand fit study is critical; especially if big dollars are involved.

Once you are comfortable with the brand fit, then comes the fun part. How do you leverage the influencer’s credibility in a way that feels authentic? There are many models for how this is done. One involves sponsoring content with a simple acknowledgment from the influencer. A better model is having the influencer interact with your brand and make it part of their engaging content. For this to work, brands have to cede some creative control to the influencers. A smart influencer will be attuned to actions where they might seem disingenuous — or worse, look like a shill. The advice most successful influencer marketing pros will give is to let the influencer be themselves and don’t over-prescribe.

Influencer Marketing ROI

Finally, we come to measurement. And it is the biggest challenge facing influencer marketing. Not only are the number of views, likes, and followers often over-reported, they are also weak measures of engagement and tough to link with real financial value.

The right approach means making measurement and analytics considerations a part of the content design process.

When thinking about content, everyone should seek out opportunities to make it digitally interactive. Unlike the commercials of old, digital channels provide many opportunities to interact with content, such as forwards, downloads, comments, and shares. These deeper engagement measures tend to be less bloated and better reflect viewer intent.

As a result, you are better able to measure campaign success. I have also found that they correlate better with financial outcomes.

Taming Influencer Marketing

Influencer marketing today is often described as the “Wild West.” Anyone who has heard this analogy knows it really means chaos with immense potential.

The good thing about this channel is there are literally thousands of small influencers with whom brands can experiment to uncover that potential.

For Measurement-Oriented Marketers: The Best of ‘Here’s What Counts,’ 2019

Over the past year, “Here’s What Counts” opined on several topics. But the ones that gained the most traction involved Gen Z’s views on privacy, social media data collection, and 1:1 marketing.

Over the past year, “Here’s What Counts” opined on several topics. But the ones that gained the most traction involved Gen Z’s views on privacy, social media data collection, and 1:1 marketing.

The most popular post, “Have We Ruined 1:1 Marketing? How the Corner Grocer Became a Creepy Intruder,” was reposted on LinkedIn by Don Peppers, co-author of the book, “1:1 Marketing.”  The idea grew out of an assignment I gave my students at Rutgers School of Business in Camden, N.J. The students had to compare the 1996 version of database marketing, as described by Arthur Hughes in the introduction to his watershed book, “The Complete Database Marketer,” with the current state of online direct/database marketing. Hughes likened a marketing database to the Corner Grocer, who kept mental notes on his customers’ names, personal preferences, and family connections. Specifically, the students had to tell me how marketing technology innovations have enhanced database marketing since 1996.

The Takeaway:

While they concede that the targeted ads they experience are usually relevant, several of them noted that they don’t feel they have been marketed to as individuals; but rather, as a member of a group that was assigned to receive a specific digital advertisement by an algorithm. They felt that the idealized world of database marketing that Hughes described in 1996 was actually more personal than the advanced algorithmic targeting that delivers ads to their social media feeds.

It’s not surprising that Gen Zers expect a more personalized marketing experience. As I wrote in “Gen Z College Students Weigh-in on Personal Data Collection — Privacy Advocates Should Worry.”

Some Gen Zers don’t mind giving up their personal data in exchange for the convenience of targeted ads and discounts; others are uneasy, but all are resigned to the inevitability of it.

Student comments included:

Resignation

“I do not feel it is ethical for companies to distribute our activities to others. Despite my feelings on the situation, it will continue — so I must accept the reality of the situation.”

 Rationalization

“… I feel as though consumers gain the most from this value exchange. Marketers can do pretty much whatever they want with the information that they collect, but they do not really ‘gain’ from this exchange, until people actually purchase their products …  Even if this exchange allows marketers to play with people’s vulnerabilities, it is ultimately consumers’ choice on whether or not they want to buy something.”

 And, in response to a New York Times article about Smart TVs spying on people, one student expressed:

Disgust

“Marketers are gaining money and information through various means and have the ability to do so without risk, because consumers are not going to read [a] 6,000-word privacy policy just to be able to work a television.”

Lest we think that the younger generation is alone in eschewing concerns about privacy, take a look at “Getting Facebook Sober: What Marketers Should Know About Consumers’ Attitudes and Social Data.”

While people claim to be concerned about privacy, they’re not willing to pay for it.  A Survey Monkey poll done for the news site Axios earlier this month shows that three-fourths of people are willing to pay less than $1 per month in exchange for a company not tracking their data while using their product — 54% of them are not willing to pay anything.

As we charge into 2020, we need to carefully consider how the data we give up so willingly is used to manipulate not only our purchasing behavior, but our beliefs and values. In the post, “A Question for Marketers: Is it Social or Is it Media?” I recount Sasha Baron Cohen’s speech at the Anti-Defamation League (ADL) calling Facebook “the greatest propaganda machine in history.”

I sent The Guardian’s publication of Cohen’s speech to my children, two of whom have given up their Facebook accounts. My daughter replied, “Did you learn about this on Facebook? If so, irony is dead.”

Actually, I did. RIP, irony.

Why Include Direct Mail In Optichannel Marketing?

Direct mail is highly effective on its own; however, when you combine it with other marketing channels, it gets even better. Demand Metric, in partnership with PFL, conducted a benchmark study. The optichannel marketing research is meant to understand the importance of multichannel marketing.

Direct mail is highly effective on its own; however, when you combine it with other marketing channels, it gets even better. Demand Metric, in partnership with PFL, conducted a benchmark study, “Multichannel Marketing Maximizing Program Engagement and ROI”. The optichannel marketing research is meant to understand the importance of multichannel marketing and the power of intentional, coordinated marketing efforts.

The goal of the study was to collect data to identify best practices and help marketers know how to reach specific audiences, and when to use particular tactics within their multichannel campaigns. The results indicate that direct mail needs to be a part of your optichannel marketing strategy.

Key findings:

  • When direct mail is personalized and tightly integrated into the channel mix and campaign technology: Average response rates improve significantly, with a 62% increase in those reporting good or very good response rates. The ROI of multichannel campaigns improves significantly, with an 80% increase in those reporting good or very good ROI.
  • Just over half of this study’s participants include direct mail in their multichannel campaigns, and 80% of them report that direct mail improves multichannel campaign performance.
  • The executive, or C-Suite, audience is the most sought after by study participants. Events and direct mail are the most effective channels to reach them.
  • While postcards are the most frequently used direct mail format, the dimensional format does the best job of representing the brand.
  • More channels produce higher response. Respondents using seven or more channels in their mix are 26% more likely to indicate their multichannel programs produce good or very good response.

Respondents use a multitude of channels that include:

  1. Email: 91% usage
  2. Social Media: 81% usage
  3. Events: 73% usage
  4. Display Ads/Remarketing: 60% usage
  5. Direct Mail: 56% usage
  6. Search/PPC: 51% usage
  7. Outbound Business Development/Sales Development: 47% usage
  8. Content Syndication: 35% usage
  9. Other: 5% usage

Most marketers are using between three and five channels on any given campaign, but results show that you should consider adding more channels. When marketers use seven or more channels, they report a 77% “very good” or “good” response rate. The report also found that marketers are not consistently using the most effective channels. The top three most effective channels are: events at 83%, integrated and personalized direct mail at 78%, and Search/PPC at 73%. What are you using?

Direct Mail Needs More Attention From Marketers

The report shows that marketers are most familiar with postcard and letter formats, and report that they use those formats most. Postcards are the least expensive direct mail format. Many marketers favor postcards because there is nothing to open: the message is easily visible. Dimensional mail formats are a close third in usage. This format includes pieces that are not flat, like the other types, but have an element of depth to them. A dimensional mail piece is often sent in boxes or tubes, and its very form invites opening it. These pieces evoke natural curiosity and tend to drive higher response rates. Have you tried dimensional mail?

According to study participants, direct mail clearly enhances multichannel campaign performance. In this study, 52% report a moderate to major improvement in campaign performance when direct mail is one of the channels. When direct mail is part of the channel mix, campaigns have slightly better response rates. Personalized direct mail generates significantly better response rates to multichannel campaigns. Are you using direct mail enough?

As you can see, adding direct mail to your optichannel marketing campaigns is significant. The more personalized and integrated it is, the better your response rate is going to be. Are you ready to get started with more personalized direct mail?

The Psychology-Based Marketing 2019 Roundup of Top Stories

Psychology-based marketing has a lot of nooks and crannies, but here are the top four stories that stayed in the corners of marketers’ minds in 2019.

Psychology-based marketing has a lot of nooks and crannies, but here are the top four stories that stayed in the corners of marketers’ minds in 2019.

I wrote these pieces in 2019, though you were still reading my columns from previous years. I think, though, that it’s important to look at the thoughts from this year and perhaps take a look at evergreen pieces at a later time.

These posts are listed based on popularity.

No. 1

“Persuasive Copy That Sells: It’s Not About the Words” from Jan. 15 interested the largest number of you. Marketers who are used to using “Limited Time,” “Only One Left,” “Don’t Miss Out,” “Never to Be Offered Again,” “Big Discounts,” “Guaranteed,” and “Free,” “Free” and “Free” wanted to see what was new.

I wrote:

“Marketing copy strategies that align with ‘feeling good’ address many aspects of human nature and what really influences us to change our behavior. It’s no longer about the words we use to influence behavior, it’s about the values we project, our brands, and the values of those we want to do business with us.”

No. 2

“3 Customer Experience Tips for Marketers to Reduce Churn” on May 7 gets into how good customer experiences are essential to customer retention.

“Without carefully planned and executed employee onboarding programs, employee attrition goes up, and so does corporate waste, as it costs about nine months of an employees’ salary to terminate and start over again.

“This same principle applies to customer loyalty and the very high cost of losing even just one customer. Yet it’s hard to find “onboarding” programs for customers that are as robust as those for employees. Even with the cost of losing a customer being much higher than the loss of a middle management employee. When you lose a customer, you lose not just the cost of acquiring that customer, you lose the next transaction you were counting on, and you lose their entire lifetime value, which can be pretty substantial in the B2B world.”

No. 3

“The 4 Most Critical Steps for Happy Customers, Profits” appeared on March 12 and got into how the face of your brand needs to be happy, too. Sure, customers care about whether your employees are happy and treated well — especially if it affects how those employees treat them. But Target Marketing blogger Jessica Nable recently pointed out that business partners care, too, and will check if you have heavy turnover.

I write:

“With the frenzied rush to make happy customers, engage them emotionally, and be transparent and relevant at all times, many companies unwittingly skip over the more important goal: making happy employees, engaging them emotionally, and being transparent and relevant at all times.”

No. 4

“The Danger of a Single Story for Marketers in the Age of Storytelling” piqued your interest, starting on Oct. 22.

Stories from us are what pull customers in. If they like the experience, they tell good stories about us. Or, I should say, good stories about what we did for them.

As I say in this column, “We marketers today are really the new age of storytellers.”

  • What’s your story?
  • Do your customers know it?

Here’s how we tell it:

“Our websites, white papers, and content marketing are written just like classic novelettes. A teaser to create intrigue, a climax that builds with all of the reasons a customer needs us and needs us now, and a conclusion for how customers can get what they need from us. For a price.”

Back to You

What do you think will be the top psychology-based marketing stories in 2020? Please let me know in the comments section!