Customer World

Consumer's lust for relevant information - Tracking & Alerting - An important trend for 2010

Trendwatching has come out with interesting consumer trends for 2010. One thing that caught my attention was - Tracking & Alerting as an important trend for 2010.

I think this trend provides a huge opportunity for companies wanting to take advantage of data-led marketing for their products or services.  

"Tracking and Alerting is something that consumers actually need and want, that delights them, that they crave. They are quite literally asking for relevant information, even giving you permission to provide them with more," Trendwatching.com said.

In the era of privacy and DNC, Tracking and Alerting provides huge advantage for marketers to take advantage of permission marketing. If you were a travel company, imagine a service that let's you alert about long weekends coming well-in-advance ( say 2 months in advance). This will help consumers plan their holidays. It's a huge engagement tool.Hence, planning their travel bookings with them.

Or if I were an insurance company, imagine a service that alerts me to taking an yearly medical check-up or an application that alerts me to my fitness regimen! It's a service that I will really appreciate from my insurance company rather than quarterly renewal notices!!

In my opinion, herein lies a huge opporutnity for companies to take advantage of this trend. The ones who do it, will win the war of customer engagement for 2010.

Multi-channel marketing poses new data challenges

The world of database marketing has changed since the time we knew it . There were only a few options as one knew it - lists - internal/ external, direct mail and telemarketing a decade or two ago. Today, for companies, customers come from different channels - social media, mobile, website leads thro' SEM or SEO etc. There is a need to track this customer data, organize them in a manner to know where they are coming from, is becoming increasingly critical. Before they know, many customers reach-out to companies from many channels available, in no time, which are available to them. This leads to multiple responses, follow-up and absolutely wasted marketing monies & more importantly a frustrated customer! Only when they organize and track this data across channels can companies do systematic campaigns & profiling of these customers. Not many companies are ready to handle this challenge. In my view, they are sometimes blisfully unaware of the problem and how to manage them!

It starts by building clear customer paths on how customers can potentially reach out to these companies, how they need to be tagged, scoring them by their interest and value, allocating them to an appropriate channel with clearly laid-out follow-up programs by channel. 

Deb Campbell of Clario Analytics has written a nice article on this topic:

Marketers still need to gather and keep the best data they can on their customers, understand them, segment them, track them over time, do some predictive modeling to market relevant to them and target new prospects most like them....Today, marketing channels are exploding all around us, not only with e-mail, search and display ads but also with all the social networking sites.

How does all this affect database marketing?

While the multiplication of channels can make tracking harder, and as a result make it more difficult to amend a database, you still need to know your customers’ needs and wants, and market to them one-to-one. Database marketing best practices haven’t changed as much as how you implement them.

You may have customers who are Internet-savvy and want messaging sent to them digitally. You have to target them, and those like them, in this way. Perhaps another customer segment prefers sales reps to contact them.Where database marketing pays here is that all this information can be captured.....

The solution is to keep your database as up-to-date as possible, with changes of addresses and e-mails, titles and positions. Track and segment your database at both levels, and target prospects with similar preferences and behaviors.

Crowdsourcing - When customers get together on unfair credit card interchange fees!

There has been a lot of talk and buzz around crowdsourcing. Social media too is shifting the control from marketers to a "network of customers" who influence product/brand preferences and purchase decisions. Many marketers have been using this power effectively. Here's an example of how customers have got together against what they believe is an unfair practice. The interesting point to note here is that 7-Eleven stores have provided the platform for consumers to get together and voice their concern. It's an example of a great platform owned by a marketer to get together with their customers'  for a cause. It drives authencity and trust between the marketer and their customers. Take a look:

" 7-Eleven has announced that its franchisees and store operators have collected more than 1.6 million signatures in the “Stop Unfair Credit Card Fees” petition drive. 7-Eleven says it believes this marks the largest number of signatures collected for a public policy issue on record.

The signature drive ran from June 22 through Aug. 10 at store counters coast to coast.

“Consumer response to this grassroots petition drive exceeded expectations,” said Joe DePinto, 7-Eleven president and CEO. “Customers share our frustration over the hidden fees that American retailers and, ultimately, consumers are forced to pay. They, too, want Congress to take action to regulate these unfair fees, which are the highest in the industrialized world.”

Interchange fees aren’t transparent to the consumer and assessed to store owners every time a consumer uses a credit card. These charges result in higher prices which are borne by all consumers, whether or not they use a card or cash. In 2008 alone, these fees cost American businesses and their customers $48 billion. According to the National Association of Convenience Stores (NACS) 2008 State of the Industry data, on average, an American convenience store owner paid 63 percent more in transaction fees than they earned in profits."

If you as a marketer genuinely believe there is a cause you can take-up for your customers, do that with conviction. Get them together, become a platform for their conversations and they will surprise you with their response overwhelmingly.

The impending death of voice mail

At the tone, leave a message.....When was the last time you logged into your voice mail box and checked the messages in it? Increasingly, more and more consumers rarely check their voice mail. Consumer don't have the time, it seems, to hear long voice mail messages, they would rather respond to people or friends who called instantly.  Also, it is not easy to search voice mail messages on your phone. Nobody has the patience to go through it one by one!

Here's an interesting statistic from an article that I had read:

More than 30 percent of voice mail messages remain unheard for three days or longer, according to uReach Technologies, which designs voice messaging systems for Verizon and other phone companies. And more than 20 percent of people with messages in their mailboxes rarely check them, said Saul Einbinder, the firm’s senior vice president for marketing and business development. A survey done for Sprint by Opinion Research Corporation found that with the exception of people age 65 and over, adults respond more quickly to a text message than to a voice message. Those under the age of 30 are four times more likely to respond within minutes to a text message than to a voice mail.

If you are a brand having a call center for customer service, how often do you make it easy for consumers to send text messages with their queries, if there is a huge waiting time on the call, so that you get  your service reps to either call these customers back immediately or  quickly respond back with a text message? I have rarely seen companies do so.

Remember, text message box has taken over  the voice mail box!

The shift index - How companies need to understand and adapt to the changing environment

The shift index is a year long research work done by the one of the greatest all time business thinkers John Hagel, who runs the Centre for Edge at Deloitte. In his conversation with Francois Gosssieaux, John talks about some significant shifts that companies need to be cognizant of  and adapt themselves for a change:

Foundation Index

1. The exponentially price-performance capability of computing, storage and bandwidth is contributing to five times the adoption rate of previous infrastructure like power and telephone networks
2. The line between internet and wireless media will continue to blur further enhancing our abilities to connect irrespective of the location

This represents potential for companies to precipitate, participate in and profit from knowledge flows and reducing interaction costs due to digital infrastructure.

Flow Index

1. Individuals are finding new ways to reach beyond the four walls of their organization to participate in  diverse knowledge flows.
2. Sources of economic value are shifting from "stocks" of knowledge to flows of new knowledge - It is no more about protecting and hoarding proprietary knowledge but building scalable offerings around it
3. Worker passion -Workers who are passionate about theri jobs are likely to particpate in knowledge flows

One of the big challenges for companies is that unlike information or data flows, knowledge does not flow easily - as it relies on long-term trust-based relationships. So the key to success in this new economic reality is to move from a transactional world to a long-term trust-based world. Examples of taking on a knowledge flow approach include letting your key customers participate in product innovation, or turning them into affiliates to allow them to help one another.

Impact Index

1. Consumers possess much more power based on availability of more information and choice
2. Brand disloyalty - Consumers are becoming more and more disloyal to brands

There is host of other impact index identified - competitive intensity, labor productivity, ROA performance gap, firm topple rate etc.

The report  provides a fantastic perspective to various changes companies need to prepare and plan for to gain leadership in the market place. Download the report here.
Download Us_tmt_ce_ShiftIndex_0620092_1344(2)

Getting serious about digital privacy

As a consumer, I have often always wondered every time I had cleared by cache on the laptop, who is accountable or responsible for dropping all the cookies that sit there without my knowledge or even with my "soft" implicit permission - a few of the websites or brands were tracking my behavior using 'app and codes' that sit on my PC. I just hate such intrusions on my privacy for the monetization benefits of somebody else. 

Finally, there seems to be first steps being taken in this direction. The key trade groups - IAB, AAAA, DMA, BBB, ANA announced self-regulation principles. How will they come into effect is critical, what measures are being taken to punish offenders will make a big difference for consumers like me trusting any information that I provide online. Here are some principles that they have adopted:

• The Education Principle calls for organizations to participate in efforts to educate individuals and businesses about online behavioral advertising. To this end, the digital media industry intends, in a major campaign that is expected to exceed 500 million online advertising impressions, to educate consumers about online behavioral advertising, the benefits of these practices and the means to exercise choice, over the next 18 months.
• The Transparency Principle calls for clearer and easily accessible disclosures to consumers about data collection and use practices associated with online behavioral advertising. It will result in new, enhanced notice on the page where data is collected through links embedded in or around advertisements, or on the Web page itself.
• The Consumer Control Principle provides consumers with an expanded ability to choose whether data is collected and used for online behavioral advertising purposes. This choice will be available through a link from the notice provided on the Web page where data is collected.
• The Consumer Control Principle requires “service providers”, a term that includes Internet access service providers and providers of desktop applications software such as Web browser “tool bars” to obtain the consent of users beforeengaging in online behavioral advertising, and take steps to de-identify the data used for such purposes.
• The Data Security Principle calls for organizations to provide reasonable security for, and limited retention of data, collected and used for online behavioral advertising purposes.
• The Material Changes Principle calls on organizations to obtain consent for any material change to their online behavioral advertising data collection and use policies and practices to data collected prior to such change.
• The Sensitive Data Principle recognizes that data collected from children and used for online behavioral advertising merits heightened protection, and requires parental consent for behavioral advertising to consumers known to be under 13 on child-directed Web sites. This Principle also provides heightened protections to certain health and financial data when attributable to a specific individual.
• The Accountability Principle calls for development of programs to further advance these Principles, including programs to monitor and report instances of uncorrected non-compliance with these Principles to appropriate government agencies. The CBBB and DMA have been asked and agreed to work cooperatively to establish accountability mechanisms under the Principles.

 

Download Ven-principles-07-01-09

Augmented reality - the fusing of data, search and advertisers

Here's an interesting cool mobile app released by layar, a company based out of Netherlands.

Basically the app figures out exactly where you are and in which direction you're looking, and then it presents additional data overlaid on top of the camera's image. Be it a bank's ATM that you may want to reach or imagine you reach a locality in your city and would love to find some houses to live here, just use layar and it will find you some houses, real estate agent too and you can call him right away!

Watch it live here:

I do believe it has limitations. It's not all pervasive at it looks:

a. You need an android phone
b. The service needs to be available in your country.This to me is a serious limitation. In a country like
    India, which has a huge penetration of mobile phones, it will serve a real need. In a world of connected
    information that's almost seamless, one cannot be selective in making such a service available. To
    me it must be simple enough to be downloaded and used anywhere in the world. The data on the web
    must be leveraged. This is really where most services fail. You can't have a product on the net and
    expect it to be available only in Europe, US and Netherlands.
c. It still needs the consumer to do something to throw this data thro' this browser. The novelty factor
    may die after some time. It needs to be embedded with what the mobile phone consumer does. I am
    sure this will improve over time.

I do think  applications like these will redefine the way consumers, data providers and advertisers will collaborate in the future.

What's your company's listening quotient?

Best Buy recently launched Idea X - a platform for customers to comment, express and share their ideas to help Best Buy get more customer-centric.

I quite love the transparency and openness of Best Buy folks to admit that this is a learning phase which will evolve, for the better, over a period of time. Here's what they say about this initiative:

"We're new at this. Its probably going to be messy for awhile. We'll probably miss stuff. We'll probably screw up. But we'll learn and get better as fast as we can. We'll blog every two weeks with updates at first. Then we'll build in new and better ways to talk to you about your ideas - when we're reviewing them, or implementing them or when we decide we just can't do anything with them. We'll always be honest. We can promise we're all going to do our best. That means listening closely, talking openly about the ideas that you've shared. And trying our hardest to make it happen."

The most interesting comment regarding this, is of Barry Judge, CMO, Best Buy - " Robert Stephens, the founder of Geek Squad, once told me “the easier you make it for customers to complain, the better your product will become...These days, it’s easy to be more accessible. Truly, the only limitations are cultural. We are doing a lot of experiments in being more accessible. Our latest test, Best Buy IdeaXchange, is a web site that is intended to enable consumers (and employees) to give us feedback on what they would like to see us do to make Best Buy a better place to shop."

Results: Over the last 2 weeks, Best Buy seems to have received over 200 ideas!

My view

Engagement is the new branding. The more companies become accessible to customers, the more customers will trust them. Opening-up newer and newer channels is critical. It is important to behave openly and be able to let your customers know that as a company you are trying your best and there will be mistakes but you will definitely improve as you go along.

Remember, customers only punish indifference but they forgive mistakes.

Some questions you may want to ask yourselves to increase your Listening Quotient:

1. Are you as a company accessible to millions of your customers and do you have channel to start a dialog and hear them?
2. Do you as a company and management team have the maturity to listen to customer problems, new ideas and learn from them?
3. What's your company management team's Listening Quotient? Do you measure them?
4. How do you convert the Listening Quotient into top priority for action across the company? 
5. Is there one member of your company's various departments in charge of taking action on these priority areas?

Managing data across the enterprise- How semantic web is changing the game

Most often enterprises struggle with siloed data. It's no surprise that integration of data across enterprise is a nightmare. PWC technology report provides some interesting perspective on how semantic web can make it real and ensure it can be done easier than ever before.

Here are some interesting facts contained in the report:

How is semantic web a game changer for data integration?

The disparate data feed into a mashup—a Web application with highly configurable data display capabilities—that updates each time you add a new store site or remove an old one. Other data in the mashup arerefreshed whenever the original sources are updated. By combining various data, regardless of their formator source, you have a wide range of possibilities forgreater insight and context.

The challenges with traditional data integration vs semantic web:

Generally enterprises don't make the best use of their data.

Given the disparate systems and multitude of vintage of technologies( old and new), it is always very difficult for business managers to use multiple source of data for decisions.

 

Getting internal and external to handshake with each other can help trigger power decisioning within organizations

 

.....empower your business users...

with exploration tools that they could use with existing internal data and with external data of their choosing. These tools would let them find the best business cases and make immediate use of the Linked Data technologies at a low cost to IT, since most of these tools are reasonably priced.

Read more

Change Marketing - How the world of marketing has to adapt

Here's a great presentation by Alain Thys on how the world of marketing is changing and there is a very little time left to change or adapt or  just get extinct.

Change Marketing v01

View more presentations from Alain Thys.