Tangible's fast.MAP Marketing-GAP Presentation

From Marketing Permissions
to MCR
November 2014 | The fast.MAP Marketing Gap

Copyright 2014 Tangible. All rights reserved.
A widening gap between consumers and marketers?

1,576
2,608
4,247
2005-2008
2008-2011
2011 onwards
DATA BREACHES ARE ON THE UP Source: http://www.databreaches.net/

Media hype is extending the fear

Consumers are
learning
new protective
behaviours

Marketers under-estimate the extent of this fear
Consumers (1180), Marketers (310). Source: fast.MAP Marketing-GAP, August 2014
How concerned would you be if an organisation did any of the following after you had given it your contact details and permission to send you communications?
Source: fast.MAP Marketing-GAP, August 2014
85%
83%
76%
73%
71%
70%
63%
45%
45%
44%
40%
43%
39%
40%
Passed my contact details to another
organisation
Did not keep to the promises in their
permission statement
Contacted me too often
Ignored information I've supplied before
Sent too much marketing material
Lost my contact details
Sent communications not relevant to me
2014 Consumer attitudes
2014 Marketers perception of
consumer attitudes

Predictably, more of 55 and overs are worried
18-34 (338), 35-54 (417), 55+ (425). Source: fast.MAP Marketing-GAP, August 2014
78%
75%
73%
65%
68%
69%
55%
81%
81%
71%
70%
64%
69%
56%
93%
91%
84%
83%
80%
71%
75%
Passed my contact details to another
organisation
Did not keep to the promises in their
permission statement
Contacted me too often
Sent too much marketing material
Lost my contact details
18-34
35-54
55+

In an increasingly digital world,
it is only going to get worse,
right?

Yes, it’s tracking you!

15,000,000,000,000,000,000 Bytes
Google’s data storage capacity

The
‘Internet of Everything’
will push the boundaries further

Digital marketing,
using monitored data,
is contributing to the worries of
consumers

It’s what they don’t fully understand that
generates the most fear

And we vastly under-rate consumer concerns…
How concerned are you about organisations making their communications more relevant to you, by using the following types of information they hold about you and your past interactions with them?
50%
49%
47%
40%
32%
31%
29%
30%
31%
33%
31%
34%
31%
32%
Online ads I have clicked on
Assumed information based on 'people like
me'
Other websites I tend to visit regularly
Specific things I've looked at on their
website
Previous purchase
Preferences that I had given them
The length of time I've been a customer
consumer attitudes

As marketers, we must bear some
responsibility

Because it’s becoming
an irrational fear

They’re even worrying about things they shouldn’t
Consumers (1180), Marketing agencies (132), End clients (178). Source: fast.MAP Marketing-GAP, August 2014
How concerned are you about organisations making their communications more relevant to you, by using the following types of information they hold about you and your past interactions with them?
50%
49%
47%
40%
32%
31%
29%
33%
34%
36%
36%
38%
36%
37%
28%
29%
30%
28%
31%
27%
29%
Online ads I have clicked on
Assumed information based on 'people
like me'
Other websites I tend to visit regularly
Specific things I've looked at on their
website
Previous purchase
Preferences that I had given them
The length of time I've been a customer
Consumers
Agencies
Clients

Luckily, consumers are full of contradictions

We know they don’t like admitting that it works
7%
4%
54%
27%
7%
3%
3%
29%
43%
22%
Much less likely
A liitle less likely
Would make no difference
A little more likely
Much more likely
2014 Consumer Attitudes
consumer attitudes
How much more likely to respond to communications are you when the sender uses information about you and your past interactions to make these communications and offers more relevant?

But we also know they don’t want us to ignore it
73%
63%
40%
40%
consumer attitudes

So…
Let’s talk about the future

The issue of marketing permissions
is moving from a soft problem
to a hard problem

How many of you are familiar
with the EU Data Protection
proposals?

And who’s organisation is
already taking it seriously?

The Key Changes…. SIMPLIFIED!
NOW PROPOSED
CONSENT ‘Opt out’ for some media ‘Opt in’ across all media
PROFILING &
3RD PARTY USE
No additional permission
required
Explicit consent required
ACCESS TO DATA Chargeable Must be free
SUPPRESSION
REQUESTS
Data can be flagged “Do Not
Contact”
Data must be erased

Trust in businesses is gradually diminishing
63%
55%
0%
10%
20%
30%
40%
50%
60%
70%
2012
2013
2014
“I trust businesses with my personal information online.”
Source: TRUSTe Privacy Index, 2014 UK Consumer Confidence Edition

The new regulations will force us to become better marketers

We need to stop “asking for permission”

And start inviting customers into positive relationships with us
… as romantic as that sounds!

A consequence we need to embrace…
£

We need to re-frame the problem

An Example that paid dividends… ORGAN DONATION

For Marketing Permissions,
we can do this in 2 stages…
Simple Reframing: Asking in a more positive way
Fundamental Reframing: Attracting people into a brand
relationship

ASKING IN A MORE POSITIVE WAY
Simple reframing….

How many of you are parents?

TEENAGE CANCER TRUST, asking nicely….

…John Lewis too

INVITING PEOPLE INTO A MUTUALLY
BENEFICIAL RELATIONSHIP
The more fundamental reframing….

PERMISSION STATEMENTS
RELATIONSHIP INVITATIONS

What will they get
in return?
What would make
them recommend it
to their friends?
What are the
behaviours that will
generate demand?
What are the
benefits to the
customer?

Maintaining a channel to market

So what makes a good
RELATIONSHIP INVITATION

A ‘Value Exchange’ that attracts opt-in

So, what kind of
value exchanges attract
‘marketing permissions’?

Free stuff / discounts / convenience / help
65%
63%
47%
44%
40%
40%
37%
37%
Get discounts/special offers
To receive free product samples
To get a quote/look for cheaper prices
To get helpful information to make my…
To enable me to make an online purchase
To receive money saving advice
To pay online
To hear about other relevant products…
2014 Consumer
attitudes
Consumers (1180). Source: fast.MAP Marketing-GAP, August 2014
How important would the following benefits be in making you happy to opt in to receiving future communications from an organisation?

And again, we don’t get it!
65%
63%
47%
44%
40%
40%
37%
37%
43%
47%
40%
37%
35%
38%
35%
33%
36%
42%
30%
27%
26%
27%
25%
24%
Get discounts/special offers
To receive free product samples
To get a quote/look for cheaper prices
To get helpful information to make my…
To enable me to make an online purchase
To receive money saving advice
To pay online
To hear about other relevant products…
Consumers
Agencies
Clients
How important would the following benefits be in making you happy to opt in to receiving future communications from an organisation?
Consumers (1180), Marketing agencies (132), End clients (178). Source: fast.MAP Marketing-GAP, August 2014

Permissions can help you
steal a march on your competitors

SOME GOOD PRACTICE, IN ACTION…

COW & GATE

KRISPY KREME

PAMPERS

• Consumers are more worried than you think
• Be more transparent with you privacy policies
• Switch from thinking ‘Seeking Permission’ to ‘Relationship Invitations’
• Make the benefits of the ‘relationship’ clear and obvious
• Test various ‘value exchange’ ideas for different audiences
• Develop behaviours to ATTRACT customers to your brand
• Profit from a smaller but more engaged consumer database
• Start NOW, before the law forces your hand
To sum up…

MCR
If you want your future Customer Relationship Marketing to succeed,
you’ll need to master the art of Marketing your Customer Relationship
Final Thought….

That’s it…. …questions?

Tangible's fast.MAP Marketing-GAP Presentation

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