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Stop being creepy! An essential guide for digital marketers

Advertising and marketing is becoming increasingly creepy as personalisation strategies lose the plot, writes JOAN OSTERLOH, authorised Forrester Research Partner for South Africa.

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Marketers need to be aware of the “creep factor” when deploying strategies of personalisation and individualisation in their marketing efforts, Forrester’s Brendan Witcher, VP and principal analyst serving eBusiness and channel strategy professionals, warned as early as December 2017.

Six months later, Forrester senior analyst Susan Bidel was even more direct in her message: “Marketers, you need to take control of your advertising strategies and adtech stacks now to better address today’s consumers.” She cautioned that those who didn’t, were at a high risk of annoying and creeping out the very customers needed for business growth.

In its latest research, “Marketers Versus Customers: Opposing Forces  Erupt” Forrester now finds that even though marketers set out with the best intentions to implement customer-obsessed marketing and customer experience strategies, they still end up alienating and ‘creeping out’ customers, resulting in lost loyalty.

Marketers use personalisation to make their marketing more relevant and to help it stand out, Forrester says in a blog on the study. The irony is that with all the customer data that marketers use to personalise, the one thing they seem to have forgotten to find out from consumers is whether they even want personalised communication at all, the firm writes. Combined with identity resolution and increased automation, companies have created adtech and martech stacks that are creeping people out. We think our phones are listening to us. And then Facebook admits it is doing this. So, what’s gone wrong?

The report by Melissa Parrish, Forrester’s VP and group director serving marketing professionals, highlights that marketers are ignoring their customers’ desire for anonymity, by assuming that they all want personalised experiences. They are foregoing the authenticity of their own brands by “giving lip service to brand values they think resonate with customers.” There’s an overt focus on martech at the expense of human creativity. Lastly, they’re profiling customers on precarious connections and getting it wrong, sometimes with harmful and even traumatic results, she explains.

The solution is to return to true customer-centricity by going back to basics by looking at the following, Parrish writes in the report:

  1. Remember that customers are different.  Here it’s not about customer segments or personas, but rather the extent to which they expect you to know them. Treat customers and prospects differently – e.g. prospects “want value, not a background check”.
  2. Customers are tired of lookalike ads and direct mail that is poorly personalised, trying to get them to buy things for which they’re not even in the market.  Choose your target audience, focus on them, and then let go of the others.
  3. Programmatic marketing has its upsides and downsides.  Avoid the two extremes of advertising at scale across multiple channels on the one hand and limiting advertising to channels where everyone seems to be at once, such as Facebook, on the other.  Instead, target your audience with responsible content and choose platforms on which you can reach them online and offline.
  4. Consider whether you should be using cookie, key-stroke and audience data at all for your brand.  Intent-based target marketing through search optimization might be a smarter choice.
  5. Don’t assume that personalisation will make customer experiences more relevant.  Rather interview your customers and test different variations of personalised content to find the right balance between information, recommendations, simplicity and empathy.
  6. Don’t ignore the 20% who don’t want any personalisation at all – use your customer insights data to identify them, and then meet their expectation of no personalisation.

Parrish offers important recommendations for the winning marketers of the future. Since the success of marketing is measured by the bottom line of revenue generation, truly customer-obsessed marketers need KPIs that are “fine-tuned” to understand what customers value, not what’s valuable to the brand, she writes. What customers want and value should be defined in terms of four dimensions along the axes of functional-experiential, and economic-symbolic.  Then, measure the dimensions along the entire customer life cycle, she explains. What this requires is the following:

Firstly, marketing and Customer Experience (CX) teams need to unify and leverage one another’s unique skills to deliver best-in-class customer experiences that drive loyalty, customer retention and growth.  Truly customer-obsessed brands will bring CX and marketing together to harness the best that both have to offer.

Secondly, brands need to rebuild trust.  As consumers become more privacy-savvy, they will become more selective about the brands with which they are willing to share their data.  Marketers need to develop ‘Privacy Personas’ as a new marketing segment to ensure that they deliver experiences their customers are comfortable with.

Thirdly, refocus on creative excellence. In Parrish’s words “new prospecting strategies will center on great creative making an emotional impact and contextual targeting driving relevance.”

Lastly marketers need to find ways to extend customer obsession throughout the enterprise. Employees need to be empowered to deliver on the brand promise, which must align to and be in harmony with CX.   The companies that thrive will be those whose CX truly reflects brand values, Parrish concludes.  

Sources: “Marketers Versus Customers: Opposing Forces  Erupt18 Sept 2019. By Melissa Parrish with Sharyn Leaver, Brigitte Majewski, Caroline Robertson, and Stephanie Liu.

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3D printing set for $20bn boom

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3D printing is starting to be realized in a wide variety of industries, but its potential in the aerospace and defense industry is significant. The 3D printing industry was worth $3bn in 2013 and grew to $7bn in 2017. By 2025, the market is forecast to account for more than $20bn in spend, according to GlobalData, a leading data and analytics company.

The company’s report, ‘3D Printing in Aerospace & Defence – Thematic Research’, reveals that most major militaries and companies are exploring options with the technology. Some are still in the testing phase, while others are deploying the technology in final production. This is particularly true in the aerospace industry, where engines, aircraft and satellites are currently using 3D-printed components.

Listed below are the militaries that have taken an early lead in implementing 3D printing technology, as identified by GlobalData.

US Marine Corps

The US Marine Corps currently has the highest uptake of 3D printing of any military service worldwide. In particular, the additive manufacturing team at Marine Corps Systems Command has created the world’s largest 3D concrete printer with the ability to print a 500-square-foot barracks hut in 40 hours.

US Air Force

The US Air Force is integrating 3D printing into its supply chain. Overseen by ‘America Makes’, the US national additive manufacturing/3D printing innovation institute, it is investigating how current systems can be used to reproduce aircraft components for decades-old planes that may no longer have reliable sources of replacement parts, without minimum order quantities.

US Navy

The Navy has created new logistical units such as Navy frontline attachments, which can rapidly create spare parts for incredibly complex military equipment such as the F-35B – and are currently operational for this purpose. The navy has also worked with Oak Ridge National laboratory to produce the first 3D-printed submarine hull.

US Army

The US Army is working on 3D-printed, modular drone systems. The army wants 3D printers that can be deployed to a forward base camp and used to produce aviation backup when necessary for troops on the ground. This plan aims to create bespoke unmanned aerial vehicle (UAV) systems and is said to be at an advanced stage of development.

Chinese Air Force

A 3D Systems ProJet 4500 printer has been acquired by the Chinese army and has been working on replacement military truck parts for the army’s fuel tanker fleet. A number of Chinese fighter jets are believed to be carrying 3D-printed parts and are currently in operation.

Russian Army

Russia has been testing multiple applications for 3D-printed parts in its newest main battle tank, the T-14 Armata. During the development process, 3D printing was used for prototyping, but it is expected that parts will be used in the final product, of which 2,300 have been ordered.

South Korean Air Force

Collaboration between South Korea’s InssTEK and France’s Z3DLAB is producing parts for South Korean warplanes that see heavy use along the border with North Korea. The aim is to upgrade existing components, rather than replace worn parts, with a new titanium composite material.

Information based on GlobalData’s report: ‘3D Printing in Aerospace & Defence – Thematic Research’.

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SA productivity could nosedive on Black Friday

Employee productivity on Black Friday could nose dive, says local online retailer, OneDayOnly.co.za

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Finance Minister Tito Mboweni hasn’t had it easy lately. Amidst a more-than-tricky economy and having to walk the tight rope in his recent mid-term budget speech, Tito is squeezed between a rock and a very hard place that’s about to get tighter with Black Friday inspired employee procrastination.

“While the minister probably has bigger fish to fry than South Africans avoiding spreadsheets in favour of scooping a deal on Samsung’s latest flat screen – Black Friday undoubtedly affects employees’ focus at work,” says Matthew Leighton, spokesperson at leading South African e-tailer OneDayOnly.co.za .

While it started as a post-Thanksgiving blowout sale by US retailers, Black Friday has become one of the most significant calendar days for consumers and the retail industry globally. “The proof is in the OneDayOnly.co.za stats. Last year, we recorded over 150 000 website users on Black Friday alone – the average on a regular day is around 60 000 and on a high traffic day such as pay day its approximately 80 000,” says Leighton.

So the demand is clearly there but are people actually doing the bulk of their Black Friday buying while they should be working? Leighton says they are. “Although the sale starts at midnight people are online throughout the day and data from last year shows traffic on OneDayOnly.co.za spiking primarily during core working hours – 06:00, 8:00, 11:00 and 15:00.

He adds that the average user session – or time people spend on the site at any one point – is three times longer on Black Friday than any other day. “In addition to spending longer on the site on Black Friday, customers also return many times during the day so these longer sessions happen numerous times during the work day.”

To add to Tito’s woes, Leighton explains that people are also multi-screening their buying efforts by watching social platforms for tips and prompts. “Most online retailers worth their salt share prompts on social feeds to drive traffic to their websites. Last year, each time we announced via social that a 100% off deal was available shoppers flocked to OneDayOnly.co.za. Almost instantly, the web traffic would spike. The pattern shows how closely people keep an eye on the 100% off deal drops via social media, as well as how effectively the platforms cater to a very wide audience in real time.”

But while Black Friday may result in the odd deadline being missed, Leighton believes the overall impact on the economy is an extremely positive one. “Last year we saw people spending in the region of R1300 on Black Friday, compared to an average of R970 on other days. According to BankServ, South Africans’ card transactions came up to R3bn on the day last year, up 16% from 2017. That’s a nice injection into an otherwise depressed retail sector.”

Leighton says people love Black Friday because there is something in it for everyone, but there’s also nothing to lose – except for maybe a bit of work time. “With so many more products available at low prices, it makes sense to peruse. If you find nothing you like, you are no worse off. And your boss doesn’t have to be either if you’re proactive and shop before work when our doors open at midnight.”

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