Customer World

How brands need to adopt & leverage technology marketing?

This week there was an interesting debate around P&G CEO - Bob McDonald's comment. He had mentioned that:

“In the digital space, with things like Facebook and Google and others, we find that the return on investment of the advertising, when properly designed, when the big idea is there, can be much more efficient. One example is our Old Spice campaign, where we had 1.8 billion free impressions.”

The word  "free" had raised a lot of eyebrows and threatened many on the future of advertising & marketing services business models. He was almost  saying that digital is the new mass market and that P&G does not have to pay big bucks to catch the attention  & mindspace of  such consumers, which they normally end-up spending for their brands offline. 

While I agree with him - some platforms will have to be leveraged where millions of consumers are already there in the digital market place, other marketing technologies need to be identified, invested and nurtured very carefully as most of these will increasingly become fragmented as more disruptive marketing technologies emerge in the years to come.

In fact I hold a contrarian view  that everything will not be free but I see technology marketing creating a new model of marketing spending - micro investing & budgeting - A lot of small budgets will have to apportioned intelligently across mutiple-technologies which can help marketing meet its brand objectives! Instead of a bazooka approach, it will be a stealth-gun method.

As I see the future, many new technologies will keep coming-up and world of technology marketing is going to see many disruptive innovations - by way of customer engagment technologies, customer experience platforms, payment technologies, BIG data & Analytics etc.. Today, it might be the facebook, google+ , twitter etc. and tomorrow it might be Pintrest, Instagram, some kind of a 3D software game etc.

The question really is how should brands decide which of these technologies do they need to invest and grow their marketing spends on? When we interact with many companies & their marketing departments, we do find them adopting marketing technology basis "flavour-of-the-season" approach.

1. Many a times, there is a need to adopt more depth to their thinking on how these technologies can leverage their current marketing strategies
2. Also, they need to evaluate and prioritize them from a host of options available to them but need to see which ones amongst them has a best-fit match to their marketing objectives.
3. They must refrain from having a herd mentality basis the buzz some of these technology marketing platforms create and start to adopt them without any framework or approach
4. Given they have limited resources and time to invest, it is important to debate & agree with all their marketing partners - both internal & external on how it will help achieve brand KPIs
5. Also, CIO & CMO will have to start working very closely as many of these technologies will link many of the company's internal departments like never before.

It was interesting to read Brian Solis  blog about the same topic and he had an interesting infographic which many of the CMOs can adopt as they evaluate and adopt many of these disruptive technologies for marketing:

It is important for CMOs to invest and back the right marketing technologies. They must carefully evaluate & measure the brand-fit & marketing objectives against each of them.

Personal data is the new oil!

The world economic forum and many futurists believe personal data is the new asset class that will emerge as a competitive advantage for many marketers. It is important that marketers start using this data  intelligently, judiciously and in a manner that benefits and engages the customer. Else, this is one area that can have a severe backlash from customers just like the occupy the wall street episode.

Personal data may be the new oil but refining and using it sparingly with relevance is becoming a very important issue for marketers to focus and address.

Who is the owner of our personal data?

However,  there is an emerging debate around the ownership of personal data as digital outposts & sites are gathering data about customers like never before. Google recently released a new privacy policy last week which  redefines how this data will be used across all Google properties that we as their customers have an account. The new Google privacy policy reads " We may use the name you provide for your Google Profile across all of the services we offer that require a Google Account.....We also use this information to offer you tailored content – like giving you more relevant search results and ads...."

Clearly, the challenge that is becoming a key part of the debate is who is the owner of this personal data  and what of it can be used and by whom.

My View

I personally believe customers should be given control of their data. Customers must give permission about which of this data can be used basis their interests and lifestyle needs to companies, advertisers and marketers. And thereby brands can deliver value to these customers.

Imagine personal data lockers being available which customers can own for a fee(much like the demat of company shares that have happened over years across different countries & markets). There will be several central agencies that hold this data and provide access to customers  - with a front-end which provides flexibility to give permissions to customers to release this data for commercial purposes. If the past few decades were the era of credit bureaus, the coming decades are the era of data bureaus.

Imagine a customer wanting to buy a car ticks the check-box on the need or expresses the need to be a part of a community of interest.Many marketers and companies then vie to build a dialog and a conversation with the customer - not spam her with emails, irrelevant ads and messages on mobiles. All the searches that customer does then become available for relevant ads to be shown to her online. Then, the sales & marketing teams of different marketers & products unlock a new engagement platform to woo this customer.

The customer experience is therefore refined, relevant and customized like never before using the data that is in control in the hands of the customer. 

Imagine the power of this data. Imagine its efficiency. Imagine its effectivness. If personal data has to remain as the new oil, the control & flexibility must be in the hands of the customer.

How do you define success for data-driven marketing programs?

I often have been wondering off-late how does one define success for data-driven marketing programs - the reason being tons of hours are spent in understanding data, organizing data, cleansing the data make it ready for analysis and then time taken for building insights by analysts, getting organization-wide buy-in into the insights and developing a roll-out plan, measuring them etc.

The opportunity I see with all this, is a need to clearly define how is a company benefitting with all of this is increasingly becoming critical. No amount of insights & discovery is worth its weight in gold till it becomes actionable and value is returned in dollars for them. Also, another important question is how do such programs get more investments to provide more value year after year? I also don't see this being driven from one corner or department while participation from senior management teams and other departments is critical for its success, adoption and growing investments.

Interestingly as I got thinking about it, I got something from my archives which had an interesting reference to how to define success by Pat LaPointe.

He has got a lovely definition of defining success. Here's the forumula according to him which may be worth looking at:

It is a simple summation of all experiences of transforming insights into action and the value it created divided by the number of resources consumed to get this value and this is raised to the power of perception!

From my experience, I agree with him that the hard part is transforming the insights into action in any company. Also, perception of quality plays a critical role as enterprise-wide buy-in is critical for such programs as they need collaboration from other departments like sales, customer service, IT, channels etc. So, continued success of such programs must be exponentially raised to the perception and alignment of metrics & hence the value each of them get from such initiatives.

Would love to hear any other method of measuring sucess of data-driven marketing programs.

Alex Bogusky's Consumer Bill of Rights

In an increasingly digital and social media marketing eco-system, companies and marketers need to be conscious and respect the rights of consumers. The fact that marketers need to be transparent, authentic and set transparent engagement rules using the data and information they capture or hold is becoming more and more critical. Alex's consumer bill of rights is an interesting place to start thinking about this. He outlines the following rights that marketers must respect:

1. Right to safety
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Right to service

What other rights do you think is important?

Empowering customers in India - Indian privacy law set to change landscape

India is gearing up for enhanced privacy laws that protects customers. This can be a landmark legislation that can have lasting impact on consumers, data protection, data sharing and use of personal data & information. 

India has a not been privacy friendly state. Data sharing and exchange is done freely and hence it is not suprising to find personal information being freely available for a few cents. The proposed act or legislation seems to be all encompassing and can have a lasting impact. Take a look at some of the recommendations:

1. Currently, in India there is no legislation for protecting the privacy of individuals for all information that may be available with private entities. The legislation proposes to bring this to force.
2. Choice and consent of the indvidual before his/her personal information is collected
3. Information should be used only for the purpose it was collected
4. The individual should have access to his/her information at any time. He/she must be enabled to update or correct the information
5. Data controller would be transparent in his working as regards to the collection of personal data
6. Data controller is primarily responsible for its safety and use

The framework proposes:

• All forms of identifiable data be protected against under the right to privacy.
• It goes on to define what is personal data -..."to be able to identify a person, information need not necessarily be objective identification such as a person's name, but can be subjective information such as the opinion that a person is a "reliable" borrower or that a person is "expected to die of a terminal disease". It is also important to bring all personal information within this definition regardless ofthe format in which the information is stored."
• It also extensively takes into consideration Indian context - Aadhar program that uses biometric information
• Explicit consent or even approval from a regulatory authority may be required to be obtained to collect sensitive personal data.
• Processing of data in an automated manner must be avoided when it affects the vital interests of the data subject.
• The data once collected must be deleted after achieving the purpose for which it was
  collected.
• Privacy impact assessments to be conducted by independent authorities in the form of
  transparent audits, for the protection of personal data.
• Appropriate measures to protect the data of Indian citizens that are processed outside the country.

I believe this is going to have far reaching implications on how private entities hold data and process data. Also, information available on the web and information shared in social media will have to undergo scrutiny, as this personal data today is being used for commercial interests by many of the entities like google, facebook etc.

I have attached the approach note paper Download Aproach_paper.

I would love to hear comments, feedback and implications on this proposed law. And how marketing in India needs to adapt to this new environment.

 

 

 

 

 

 

 

 

 

The emerging era of customer unions!

I was reading an interesting article by Umair Haque on the threat of open customer rebellion and how industrial age businesses are completely unprepared to change the ways they  engage, treat and manage customers.He writes:

"Yesterday's massive, sprawling organizations could pacify "consumers" by buying them off with a discount or three, an overblown celebrity promising the moon, an entirely new "brand" designed as camouflage, or adding an extra blade or five, patty or three, or cylinder or four, and calling it "innovation." But that probably won't pacify people concerned not merely with what they "get," but with what, if anything, you're really contributing to society".

He goes to quote an interesting example:

"ING customers mobilised on Twitter and other social networks to protest at bonuses paid to bosses at the bank, one of the biggest in the country. The threat of direct action raised the spectre of a partial run on ING, terrifying the Dutch establishment. Fred Polhout, union organiser at the bank, says: "People were outraged. We heard about the bloated sums being paid again in the City and in New York; but suddenly the issue exploded on our own front door."

To me this is a lovely articulation of  how unprepared many companies are. It made me think of some interesting analogy of how new information age thinking has to drive changes in industrial age-mindset companies:

1. In the industrial age, there were labor unions who acted as interest groups for community who produced goods. The customer had no power as they were fragmented across markets. The information age is creating customer unions where customers come together to rally against companies which do injustice to them, their enviroment, their community, unfair business relationship & services etc. 
2. The labor unions could take the cause of only one company, theortically speaking. But, customer unions can have members across different products/brands across geographies and pose a larger threat.
3. The customer unions are self-engaging members who pose a potential threat to companies who undermine their power.
4. The customer unions can come together within a few hours and disrupt the brand reputation built over years by companies.
5. The customer unions have the power of internet, social media to engage & collaborate for this cause and will disengage once the cause is achieved.
6. If there were union leaders who drove the labor unions, here there are customer leaders who drive the opinions and issues. Companies need to identify them as they emerge from time to time for different reasons. But address them with agility.
7. Authencity and honesty will be the hallmark of successfully handling these customer unions and companies need to find new innovative methods of handling them openly & with transparency.

It's time companies and marketing departments realize this and find new ways of truly engaging with customers and their opinions.

 

 

 

How will customers change their shopping habits with mobile?

With mobile device in the hands of customers and quick adoption of smartphones, will it redefine the shopping habits of customers? I believe it will. 

Mobile will increasingly act as research and shopping tool in their hands. Right now, I don't think it is widely used but with increasing app downloads & penetration, mobile internet adoption etc. this is certainly going to change shopping experiences - right from the way they search for products/brands/services and helping them choose & buy them too.

I believe it will  be a " check, learn, ask & walk "(CLAW) shopping model on the mobile. It will be a mix of ' text & mortar' shopping. Mobile will overtake internet shopping in my opinion and adoption of mobile in certain categories will be significant.

Which categories need to get ready for this change?  An nice study by emarketer can used as a benchmark by marketers to ensure they get ready for this shopping  habit transition. In countries like India, China & Japan where the mobile penetration & growth is high - the impact will be felt the maximum.

 

 

This mobile shopping habit will have to encompass a mix of mobile apps, call-in advisors, chats, mobile alerts, location based services, mobile coupon downloads & redemption@ the store. Marketers will have to plan for an Integrated Mobile Shopping Experience (IMSE). 

 

 

 

The new direct marketing - mixing offline with digital is the future

The world of direct marketing is undergoing a sea change where there is a marriage of new digital marketing tools & methods to the old world direct marketing principles & vehicles.

In fact, almost a decade back, I had coined a term "Hybrid marketing" as the future of marketing - the convergence of online and offline techniques. I am glad to see it come of age. The internet, mobile &  direct mail needs to converge and work together to drive better ROI for brand marketers. 

Peppers& Rogers has interesting article on the same. There are some interesting points and applications that has been brought out in this article:

Now, thanks to an emerging technology called QR Codes, or Quick Response Codes, direct mail can go immediately from print to interactive. A consumer with a QR Code reader on his smartphone can quickly scan this two-dimensional barcode on a direct mail piece and be immediately taken to online content without having to type in a Web address. In this way, QR Codes turn that printed direct mail piece into an interactive mobile response, transforming static messages into hyperlinks to just about anything online.

We know the positive statistics on the power of personalization, and now the Web itself can be personalized. A personalized URL (PURL) provides a Web address for an individual so that the content at the address can be unique for that visitor. When a direct mail recipient logs on to a PURL, information from the marketer's database can be used to tailor the Web experience for that person. Additionally, the website can track the respondent's activity and modify what is offered based on the consumer's actions. That interaction can also be very useful in making future print and online communications.

A QR code can link a smartphone user to a PURL, allowing a business to create unique QR codes linking to PURLs for everyone on its direct mail list. Once on a PURL microsite, a visitor may be invited to sign up for monthly newsletters, view an embedded video, or request a mailed fulfillment package. And the good news is that all of this online interaction can be measured for campaign ROI.

Email and SMS mobile text messaging can also be integrated into a multitouch marketing campaign. For example, a consumer receives a direct mail piece that contains a QR Code. She scans the code with her smartphone and is immediately linked to a personalized website. Then, shortly after that, she receives an email or SMS text response thanking her for visiting the site. Based on what information she chose to share, she may receive an additional direct mail piece, text, or social media notification as a follow up. Thanks to postal delivery alerts, it's even possible to spark curiosity and anticipation in a consumer by notifying them via email or mobile that a personalized package will soon arrive in the mail.

The fact really is that traditional direct marketers have to adopt these techniques by using them effectively in their marketing campaigns. The digital marketers have to get adept in using the direct marketing principles by seamlessly converging these new tools & techniques to the offline  marketing techniques.

Only  when this is done,will brand marketers see the benefits of " true" response, engagement and conversions.The reality of customer engagement, growing customer relationships and increased customer conversions will become visible.

I don't see too many direct marketers and digital marketers having the skills and competency in using these "ambidextourous" techniques of both the worlds. The faster they learn & adopt them, the faster they will be able to demonstrate the ROI in their marketing campaigns.

Building a personal data vault - so customer-control their data

I was reading an interesting article by Doc Searls on the data bubble where he makes interesting observations on how customers leave a lot of data and information across digital platforms and various devices that they carry, which is being exploited by business today and the need for customers to control the data rather than business controlling the data.  Quoting him:

Their understanding of our identity is not the same as our understanding of our identity. What they have are a bunch of derived assumptions that may or may not be correct; and even if they are, they are not ours.

I completely agree with him. For example, in many of the social network sites that I am member of, I may not necessarily want the data that I have left behind to be available to social media companies like facebook and twitter or make them available to crawlers or made public to everybody who I know in that list without my permission. Also, the invasion of privacy  of information by Location based service providers like foursquare, Loopt etc. is quite dramatic too. For example, I had commented on an airline service that I was unhappy about and some service issues I had faced and immediately I was besieged with a lot of travel offers thro' Google adsense, emails from other businesses etc. Not to mention, my mobile phone data(GPRS) is also open and I end getting junk messages that I would like to get rid of.  My page was covered with ads and I didn't want them anyway.  

In fact, I believe, there is a crying need to build a personal data vault service - a kind of a brokerage house that owns this information and drives memberships & permissions with individual customers. The customer controls the information that she/he gives permission to part with to the service provider. May be there is a revenue share that certain customers may expect in return of use of that information. 

Kaliya makes some interesting points on how to build a personal data ecosystem and what does it take to build one. She has a a vision document where she outlines core aspects of the emerging interoperable, open standards based ecosystem of personal data services – rooted in the core functionality of a Personal Data Store – the vault/locker/services/broker where all an individuals data is collected and stored and managed.

 

Information & relationships between people must be protected and to make information work harder & effectively, there is a need to give this control to the customer. 

 

Do you support data portability in your digital marketing initiatives?

I was recently reading an interesting view on  the need for an online data portability policy & the do's and don't for companies and marketeers to publish such a policy. This kind of a policy, I believe, is becoming very important as we leave a lot of personal information online and users like me must have control on the information that can be shared or ones that must remain private. So is the case with consumers who visit a company website or marketing microsites or social websites where they again leave information about themselves( this is just not an unsubscribe policy!).

Imagine that you are on a social networking site and their revenue model is targeted advertising. Social networking sites today use this information to link marketers to consumers with similar interests/views - both positive and negative across multiple websites. The economic value of such information is huge and it must be left to each consumer to let such sites enhance the online experience in a customized manner using customized content. One cannot assume everbody wants customization of digital experience and intrusion of such sorts is despicable.

With more and more Apps, APIs etc. growing in acceptance and usage, this is a very important step that marketers and companies need to be cognizant of.