tag:econsultancy.com,2008:/topics/ecrm Latest CRM & loyalty programs content from Econsultancy 2018-06-15T12:05:00+01:00 tag:econsultancy.com,2008:BlogPost/70073 2018-06-15T12:05:00+01:00 2018-06-15T12:05:00+01:00 What is a customer data platform? How is it different from a DMP or CRM? Jordie van Rijn <p>The CDP promises to provide the key to comprehensive data-driven marketing, a very attractive marketing concept where all your customer data is combined for marketing (and other) uses. Without the data and the management of the data, the 'marketing brain' that allows for smarter campaigns simply can’t function. So bringing together the data is very important.</p> <p>There are some distinct characteristics of a CDP that explain why major brands are looking at them instead of relying purely on other types of data systems like CRM (customer relationship management) or a DMP (data management platform). </p> <p>So what is a customer data platform and what is the difference with other systems?</p> <h3>What is a customer data platform?</h3> <p>The aim of the CDP is to bring together all customer data and stitch the data together into unified customer profiles. So a marketer can easily work with it.</p><p>You could say we have already heard the story of tools that can function as a hub or central place for customer data. There certainly has never been a shortage of technologies that claim to provide a '<a href="https://www.econsultancy.com/blog/67741-20-of-marketers-have-created-an-actionable-single-customer-view">single customer view</a>' or a '360 degree customer profile'.</p> <p>But in reality there hasn’t been one platform type out there that has the potential to bring together all the data and at the same time properly make it useful for the marketer. </p><p>David Raab, a respected martech analyst, was the first to define the CDP category in 2013, and the definition reads as follows:</p> <blockquote> <p>A customer data platform is a marketer-managed system that creates a persistent, unified customer database that is accessible to other systems.</p> </blockquote> <p style="font-weight: normal;"><em><img src="https://assets.econsultancy.com/images/0009/5380/customer-data-platform.png" alt="cop" width="615"></em></p> <p style="font-weight: normal;"><em>Visualisation of a CDP (source: <a href="https://www.emailvendorselection.com/customer-data-platform-cdp-evolution-marketing-automation/">Emailvendorselection.com</a>)</em></p> <h3>How is a customer data platform different from what we know?</h3> <p style="font-weight: normal;">What are the big differences between a CDP and systems like CRM or DMPs?</p> <h4>1) Different than CRM</h4> <p style="font-weight: normal;">CRM systems are built to engage with customers, this is on the basis of historical and general customer data to create a persistent customer profile. They aren’t built to ingest huge volumes of data from other sources. </p><p>A CDP is able to connect all types and sources of customer data, whether internal or external, structured or unstructured, batch or streaming. This allows you to form a much more comprehensive view and to better understand your customers, and act on it even in real-time. </p><p>The data sources will include different categories:</p> <p style="font-weight: normal;"><strong>Transactional and order data:</strong> Ecommerce, administration and sales systems that generate data on purchases, order- and renewal dates, customer and product value, abandoned baskets, returns, and more. This is without exception very valuable data for marketing and sales efforts. </p><p><strong>Behavioural, web and mobile data:</strong> Products and categories browsed, clicks, store, interaction data, number of pages visited, and more. SDK anyone? Data that event driven campaigns need, your analytics love and predictive models crave. This is the data your mother told you to pay attention to as it speaks volumes on current and expected behaviour and preferences. </p><p><strong>Profile data:</strong> Without customers, you wouldn’t have a business. Knowing who they are and what they want, will lead to more effective marketing. This category starts with contact data and opt-in, then you can enrich with psychographic data points - details about lifestyle, context, preferences and personality.</p><p><strong>Product data</strong> This is not customer data, but unmistakably necessary to include and execute on personalised engagement with the customer. Think about stock levels and pricing as just two crucial data points.</p> <p style="font-weight: normal;">The management of products and their data has increased in scale as assortments become bigger and product life-cycles shorter. Many products are only available one season, for instance a bike will be there for a few months then is replaced with a new edition. Typically this data enters the customer data universe through product data management systems or ecommerce platforms. Bigger companies will have standardized exchange formats with their vendors, to increase efficiency. </p><p><strong>CRM &amp; offline data sources</strong>: Here we have the CRM! Typical CRM data is profile card type. Phone, post, email, permission and suppression data, firmographics. But this type also includes information from web forms, surveys and noted down in CRM by agents.</p> <p style="font-weight: normal;">The above examples are just the tip of the iceberg, but that is no problem as the CDP is built to handle any type and category of data (currently known). The ability to flexibly add and change new types of sources makes it more future proof in the function of a central repository. </p><p>The only constant is change and sources do and will change in the digital marketing environment. Just think of the upcoming data avalanche from Internet of Things applications.</p> <p style="font-weight: normal;"><strong>2) Different than custom integrations</strong></p> <p style="font-weight: normal;">A CDP is built with the marketing function in mind. Could you build a CDP yourself? In theory you could, and many custom IT projects try to achieve what a CDP does. Obviously there are quite some big investments, time and risks involved in a custom project like that. </p><p>CDPs are not just databases. They standardize and package “hidden” features. These features contain pre-built marketing database and packaged tools to make database creation and operation easier. You can think of data handling features to standardise, stitch and cleanse data.</p> <p style="font-weight: normal;">Some CDPs have additional functionalities built in, like BI, analytics, reporting or tracking.</p> <p style="font-weight: normal;"><strong>3) Different than delivery platforms</strong></p> <p style="font-weight: normal;">In the CDP world, the systems that interact at channel touchpoints are called delivery platforms or engagement platforms. These are for instance your email marketing or marketing automation software, website, account based marketing system, social media management platform, apps.</p> <p style="font-weight: normal;">These delivery systems interact with the CDP to send out messages, but also collect engagement and campaign data to feed back into the CDP. They aren’t part of the CDP, but some CDPs have tight integrations with the delivery platforms and make is possible to plan campaigns and even send out messages directly from within a CDP.</p><p><strong>4) Different than DMPs</strong></p> <p style="font-weight: normal;">It is easy to confuse a DMP with a CDP. DMPs were designed to serve advertisements and enable retargeting using cookies. They focus more on anonymous segments and categories than single customers. In a DMP, much of the info is anonymous and typically expires after 90 days (the cookie lifetime).</p><p>The CDP creates a persistent customer profile. That means it stores the data and keeps the history. Then by combining it with all the data about your customers comes out with a single record.</p> <p style="font-weight: normal;">DMPs were designed to target (and especially retarget) anonymous users for advertising, whereas CDPs create a database of your identified customers to use for more than only advertising.</p><p><strong>5) Different than data warehouses</strong></p> <p style="font-weight: normal;">Traditional data warehouses are built and run by IT teams with big technology know-how, but little marketing feel. The data warehouse aims to bring data together, but the marketer has to rely heavily on the IT department, which often make going from ideation to execution the slow lane to frustration. The reality is that most valuable customer data demands to be quickly accessible and ‘actionable’ customer data.</p><p>Some technical involvement is still required, vendors commonly can handle this in collaboration with your IT department. Marketers get greater control over the marketing database and additional features.</p> <h3>What makes a customer data platform different from other systems?</h3> <p style="font-weight: normal;">A CDP is a packaged system that creates a persistent, unified customer database. It can ingest all types of data sources and gives open access to other systems while being marketer-centric.<br><img src="https://assets.econsultancy.com/images/0009/5187/data-systems-comparrison-chart.jpg" alt="customer data platform comparrison chart" width="800"></p> <p style="font-weight: normal;"><em>Comparison chart of the functions of CDP versus data warehouse, DMP and CRM.</em></p> <h3>Moments are the building blocks of relationships</h3> <p>Creating a comprehensive customer view is admirable, and sounds like a great marketing-philosophy, but… and there is a but…. it stays a philosophy until there is an actual use case. That is why we should start by looking at customer moments.</p><p>Moments are the building blocks of relationships, and can be enabled by a CDP. They are what customers will remember and, taken as a whole, will define how your brand is perceived. That’s why companies should be able to make the most out of these moments across multiple (maybe even all) channels. </p><p>In their book <em>“<a href="https://www.amazon.co.uk/Power-Moments-Certain-Experiences-Extraordinary/dp/0593079264">The Power of Moments</a>: Why Certain Experiences Have Extraordinary Impact”,</em> Chip and Dan Heath explain what psychologists now call the Peak-End rule:</p> <blockquote> <p>When people assess an experience, they tend to forget or ignore its length. Instead, they seem to rate the experience based on two key moments: (1) the best or worst moment, known as the peak and (2) the ending. [..] What’s indisputable is that when we assess our experiences, we don’t average our minute-by minute sensations.</p> </blockquote> <p>Marketers therefore should be architecting extraordinary and memorable peak moments.</p> <h3>How Deutsche Bahn uses a CDP to create memorable moments</h3> <p>A few weeks back, I spoke with Dr. Markus Wuebben, founder of the CDP platform CrossEngage. He showed an example from one of their clients that was presented at the <a href="https://www.crossengage.io/omr-masterclass-marketing-crm-trends-2018/">OMR Masterclass event</a>.</p> <p><img src="https://assets.econsultancy.com/images/resized/0009/5040/db-presentation-crossengage-blog-flyer.jpg" alt=""></p> <p>The German railway company Deutsche Bahn has started working with a CDP and crafting moments. </p><p>From research, Deutsche Bahn know how strenuous tightly packed travel can be, and that their customers are more likely to upgrade to the first class in this situation - if they were only given the chance. Using the CDP they can offer travellers a discounted upgrade to the first class when second-class is crowded. </p><p>The upgrade is offered through the Deutsche Bahn app via push notification. It doesn’t matter if the user purchased his ticket via the app, on the website or a different channel, because these are all connected to the CDP. </p><p>One thing they need to know for this campaign is the travel destination of the traveller. Because the CDP combines the personal data with contextual data (how busy the train is on the trip), to make this happen. It is a special moment a customer will definitely remember, as well as direct profit generation for DB. </p><p>You might wonder how many customers are identifiable to give them this upgrade. Turns out that over three quarter (77%) of customers are logged in when booking, so can be targeted via the CDP. With 1.7 Million bookings and 2.7 Million logins a month that is nothing less than a very substantial group. </p> <h3>Conclusion</h3> <p>Customer Data Platforms have the potential to create a single customer view. But the real value of that is making it actionable and gaining the insights to do so. Think of the questions that can be answered by CDPs:</p> <ul> <li>What was the product this customer bought before their current purchase?</li> <li>Which segments / target groups does this customer belong to?</li> <li>Is this customer likely to churn?</li> <li>What has he shown interest in lately?</li> <li>What is their (purchase) intent, and timing?</li> <li>What is the value and predicted future value of this customer?</li> <li>Where do they prefer to interact and create moments?</li> <li>What are their preferences and where are they in the customer journey?</li> </ul> <p>Obviously this is just a sample, and it might seem that it is all about analytics. But it is about easily deciding on the right segments, user journeys, messages, channels, and timings (while validating hypotheses, doing A/B tests etc.) to improve CLV and prevent churn.</p> <p>Once you combine the underlying data and insights, they can lead to even more remarkable, valuable moments.</p> <p><em><strong>The Festival of Marketing 2018 includes a whole stage dedicated to data and analytics. October 10-11, London. <a href="https://www.festivalofmarketing.com/2018-agenda-at-a-glance">Check out the agenda</a>.</strong></em></p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://www.econsultancy.com/blog/69899-what-data-competencies-does-a-modern-marketing-function-need">What ‘data’ competencies does a modern marketing function need?</a></li> </ul> tag:econsultancy.com,2008:BlogPost/70082 2018-06-11T08:28:15+01:00 2018-06-11T08:28:15+01:00 The best digital marketing stats we’ve seen this week Nikki Gilliland <p>Enjoy.</p> <h3>93% of consumer-facing businesses are unable to use predictive analytics</h3> <p>According to a <a href="https://www.sas.com/en_gb/whitepapers/darkness-of-digital-shadows/download.html#formsuccess" target="_blank">new report</a> by SAS – based on the responses of 350 heads of marketing, customer service and experience - businesses are at risk of offering repeated recommendations to customers. This is because 93% said they are unable to use analytics to accurately predict what individual customers will want in future.</p> <p>Meanwhile, 54% mistakenly believe that they are ‘best-in-class’ or ‘transformational’ when it comes to using customer intelligence to shape their marketing campaigns.</p> <p>Other interesting takeaways from the report include the fact that 30% of companies say they use less than half of the customer data they hold, and 70% of organisations are typically not collecting meaningful data to personalise digital experiences. For example, just 25% are analysing previous transactions, and only a fifth are using CRM data.</p> <p><strong>More on predictive analytics:</strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/69860-start-me-up-metrical-reducing-cart-abandonment-with-predictive-analytics" target="_blank">Start Me Up! Metrical – reducing cart abandonment with predictive analytics</a></li> <li><a href="https://www.econsultancy.com/blog/69228-predictive-analytics-four-prerequisites-of-an-effective-strategy" target="_blank">Predictive analytics: Four prerequisites of an effective strategy</a></li> </ul> <h3>59% of UK consumers think all brands should offer loyalty schemes</h3> <p><a href="https://yougov.co.uk/news/2018/06/05/what-the-british-think-of-loyalty-programmes/" target="_blank">A new study</a> from YouGov and Mando Connect suggests that the majority of UK consumers expect brands to reward them for their loyalty.</p> <p>In its research, YouGov discovered that 59% of adults think all brands should offer a loyalty programme, while 77% are subscribed to at least one programme already. This figure rises to 85% among women compared to 70% of men.</p> <p>Meanwhile, 72% of people think loyalty programmes are a great way for brands and businesses to reward their customers, and as a result, 59% think all brands should offer loyalty schemes.</p> <p>However, the research also shows that no one size fits all, with people citing very different motivations for engaging with loyalty programmes. For example, benefiting from discounts and offers is the top reason that people join loyalty programmes – cited by 87%. However, 55% also cited discounts and rewards from partner brands, and 52% wanted free services, products and experiences.</p> <p><img src="https://assets.econsultancy.com/images/0009/5127/loyalty_schemes_stat__1_.png" alt="consumer opinion on loyalty" width="780" height="391"></p> <p><strong>More on loyalty:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/68811-loyalty-programs-are-losing-their-sway-here-s-what-brands-can-do-about-it" target="_blank">Loyalty programs are losing their sway: here's what brands can do about it</a></li> <li><a href="https://www.econsultancy.com/blog/69780-five-ways-ecommerce-brands-can-build-customer-loyalty" target="_blank">Five ways ecommerce brands can build customer loyalty</a></li> <li><a href="https://www.econsultancy.com/blog/69622-four-ways-brands-build-loyalty-engagement-without-using-points" target="_blank">Four ways brands build loyalty &amp; engagement (without using points)</a></li> </ul> <h3>Almost half of B2B buyers make their minds up before talking to vendors</h3> <p><a href="https://info.millerheimangroup.com/WP-2018-05-30BuyerPreferenceStudy.html" target="_blank">According to research</a> by Miller Heiman Group and CSO Insights, 68% of B2B buyers see little or no difference between vendors, largely due to a lack of insight provided during the decision-making process. </p> <p>In a survey of 500 decision-makers, only 23% of buyers said they identify sales-people as a top three resource for solving their business problems.</p> <p>In fact, 70% of buyers fully define their needs on their own before even approaching or engaging with a seller. Meanwhile, 44% of potential buyers identify specific solutions before engaging with sales reps and 20% don’t contact sellers until they’re ready to commit to a deal.</p> <p>It’s not all bad news for sales, however, as buyers still want fresh insight and expertise if it is relevant – 65% said they find value in discussing their needs with reps.</p> <p><strong>Related reading:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/69826-could-a-pharma-company-shun-sales-reps-and-be-successful" target="_blank">Could a pharma company shun sales reps and be successful?</a></li> <li><a href="https://econsultancy.com/blog/68810-four-ways-ai-is-already-being-applied-to-sales-and-marketing" target="_blank">Four ways AI is already being applied to sales and marketing</a></li> <li><a href="https://econsultancy.com/blog/69065-five-advanced-data-and-segmentation-tactics-for-marketing-and-sales" target="_blank">Five advanced data and segmentation tactics for marketing and sales</a></li> </ul> <h3>Retail digital marketing budgets on the increase, but investment in skills neglected</h3> <p>Econsultancy’s 2018 <a href="https://econsultancy.com/reports/digital-intelligence-briefing-2018-digital-trends-in-retail/" target="_blank">Digital Trends in Retail</a> report in association with Adobe states that retailers are increasing digital marketing investment, with 72% of respondents (from a survey of 600 senior leaders) saying that they plan to do so in 2018.</p> <p>However, just 29% of respondents say that they plan to invest significantly in digital skills and education during 2018, while 24% say they will be making little or no investment in upskilling their staff this year.</p> <p>The combination of difficulty in recruiting and retaining experienced practitioners, and the fast-changing nature of digital marketing and commerce, means that a failure to invest in training and skills could lead many to come unstuck in future.</p> <p><img src="https://assets.econsultancy.com/images/0009/5126/Adobe_investment.JPG" alt="digital marketing spend for retail" width="760" height="488"></p> <p><strong>Related reading:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/70071-the-future-of-ecommerce-according-to-mary-meeker/" target="_blank">The future of ecommerce according to Mary Meeker</a></li> <li><a href="https://www.econsultancy.com/blog/69778-from-growth-to-soft-skills-where-professional-marketers-should-focus" target="_blank">From growth to soft skills, where professional marketers should focus</a></li> </ul> <h3>Social marketers focused too much on sales</h3> <p>Sprout Social’s <a href="https://sproutsocial.com/insights/guides/2018-index/" target="_blank">latest report</a> suggests that marketers are still wrongly focusing on the ROI of social media activity, despite most users not falling into the ‘buy now’ mind-set.</p> <p>55% of survey respondents (from a pool of 2,000 social marketers) listed measuring ROI as a primary challenge. And while 41% of marketers note generating sales as one of their primary goals on social, only 14% of marketers say they are able to quantify the revenue from social.</p> <p>The report states that this is not necessarily because social marketers aren’t sophisticated enough to focus on conversions. Rather, it’s because social’s true value isn’t in direct attribution, but it in the awareness and consideration stages of the funnel.</p> <p>In fact, consumers’ top preference for social content falls into the consideration category, with 30% of those surveyed saying they want links to find out more information from brands on social.</p> <p><img src="https://assets.econsultancy.com/images/0009/5125/social_marketers.JPG" alt="challenges for social marketers" width="660" height="491"></p> <p><strong>Related reading:</strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/69144-measuring-social-media-roi-case-studies-stats-that-prove-it-s-possible" target="_blank">Measuring social media ROI: Case studies &amp; stats that prove it’s possible</a></li> <li><a href="https://econsultancy.com/blog/69111-if-you-want-to-improve-your-marketing-roi-stop-spending-on-social-media" target="_blank">If you want to improve your marketing ROI, stop spending on social media</a></li> <li><a href="https://www.econsultancy.com/blog/68956-should-marketers-be-able-to-prove-the-roi-of-influencers" target="_blank">Should marketers be able to prove the ROI of influencers?</a></li> </ul> <h3>78% of executives struggling to execute digital transformation</h3> <p>In a survey of select CDO’s, CMO’s and IT professionals, Acquia has found that the majority of executives are still struggling to see through digital transformation initiatives. </p> <p>More specifically, 78% said that they have experienced difficulties during the implementation of their digital transformation project, with a fifth of those organisations finding executing their digital transformations projects ‘extremely difficult’.</p> <p>Despite this, marketers remain committed to completing plans, indicating a number of compelling reasons why. Overall, companies are largely motivated by a need to catch and pass competitors, as 56% of respondents admitted that they think they are behind their competitors when it comes to digital marketing. </p> <p>Lastly, 71% also said that - despite the immediate challenges - they believe digital transformation will give their business far greater freedom to innovate.</p> <p><strong>More on digital transformation:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/69598-four-steps-to-successful-digital-transformation" target="_blank">Four steps to successful digital transformation</a></li> <li><a href="https://econsultancy.com/blog/69281-digital-transformation-it-s-not-a-destination" target="_blank">Digital transformation: It's not a destination</a></li> </ul> <p><em>To learn more, check out Econsultancy’s <a href="https://econsultancy.com/training/courses/digital-transformation-in-practice" target="_blank">Fast Track Digital Transformation Training</a></em></p> <h3>The majority of consumers would pay more for ethical brands</h3> <p>A new study by Media.com has found that consumers particularly value brands with <a href="https://www.retailtimes.co.uk/corporate-values-matter-consumers-are-willing-to-spend-more-with-brands-that-give-back/" target="_blank">strong ethical principles</a>, with the majority stating that they wouldn’t mind paying more for their products.</p> <p>From a survey of 1,000 consumers, 67% of respondents stated that they would pay more for environmentally-friendly products, while 68% said the same for products that do not test on animals. 60% also said they would pay more to brands which give back to the local community.</p> <p>Meanwhile, consumers also want brands to be held accountable, with 81% saying that brands should take responsibility for their environmental impact. 88% also say they expect companies to take action in order to tackle plastic waste and pollution. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">So happy I've discovered <a href="https://twitter.com/_thesoapco?ref_src=twsrc%5Etfw">@_thesoapco</a> Genuinely love their exfoliating wild nettle &amp; sage soap. Not as much as I love <a href="https://twitter.com/hashtag/Edtech?src=hash&amp;ref_src=twsrc%5Etfw">#Edtech</a> and <a href="https://twitter.com/hashtag/scifi?src=hash&amp;ref_src=twsrc%5Etfw">#scifi</a>, but almost as much. Definitely recommend. <a href="https://twitter.com/hashtag/SocialChange?src=hash&amp;ref_src=twsrc%5Etfw">#SocialChange</a> <a href="https://twitter.com/hashtag/greatcustomerexperience?src=hash&amp;ref_src=twsrc%5Etfw">#greatcustomerexperience</a> <a href="https://twitter.com/hashtag/greatgiftideas?src=hash&amp;ref_src=twsrc%5Etfw">#greatgiftideas</a> <a href="https://t.co/zEKJPkiZxy">pic.twitter.com/zEKJPkiZxy</a></p> — Nina Iles (@NinaIles) <a href="https://twitter.com/NinaIles/status/1003701267384979456?ref_src=twsrc%5Etfw">June 4, 2018</a> </blockquote> <p><strong>Related reading:</strong></p> <ul> <li><a href="https://econsultancy.com/blog/69702-five-brand-campaigns-that-took-a-stand-on-social-issues" target="_blank">Five brand campaigns that took a stand on social issues</a></li> <li><a href="https://www.econsultancy.com/blog/69401-how-lush-delights-customers-with-brand-marketing-strong-values-and-digital-innovation" target="_blank">How Lush delights customers with brand marketing, strong values and digital innovation</a></li> </ul> tag:econsultancy.com,2008:Report/3008 2018-05-29T11:30:00+01:00 2018-05-29T11:30:00+01:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet statistics and digital market research with data, facts, charts and figures. The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need - a huge time-saver for presentations and reports.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Sector-specific data and reports are also available:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a><br></strong></li> <li><strong><strong><a title="Financial Services and Insurance Internet Statistics Compendium" href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/">Financial Services and Insurance</a></strong></strong></li> <li> <strong><a title="Healthcare and Pharmaceuticals Internet Statistics Compendium" href="https://econsultancy.com/reports/healthcare-and-pharmaceuticals-internet-statistics-compendium/">Healthcare and Pharmaceuticals</a></strong><strong> </strong> </li> <li><strong><a title="Retail Statistics Compendium" href="https://econsultancy.com/reports/retail-statistics-compendium/" target="_self">Retail</a></strong></li> <li><strong><a title="Travel Statistics Compendium" href="https://econsultancy.com/reports/travel-statistics-compendium/" target="_self">Travel</a></strong></li> </ul> <p><strong>Regions covered in each document (where data is available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/70017 2018-05-21T09:00:00+01:00 2018-05-21T09:00:00+01:00 How Virgin Holidays is using AI to improve email marketing ROI Nikki Gilliland <p>However, with email campaigns taking up extensive amounts of time and resources (with little pay-off) – the strategy was failing to work.</p> <p>I recently heard from Saul Lopez, Customer Lifecycle Lead at Virgin Holidays, about the brand’s decision to bring AI into the mix, specifically to optimise subject lines using AI marketing technology from Phrasee.</p> <p>Here’s more on the reasons why this approach has turned around the travel brand’s email strategy, plus a few general benefits of using AI.</p> <h3>Challenge no. 1: No testing culture</h3> <p>One of the main challenges previously faced by Virgin Holidays was internal team structures, with marketing required to go through an extensive approval process, particularly for content writing and email creative. </p> <p>As a result, there was neither the time or opportunity for testing, resulting in a somewhat restricted and uncreative culture.</p> <p>Upon Saul’s arrival at the company, he met with Phrasee to discuss the benefits of using its artificial intelligence platform to automate and optimise subject lines. The technology looks at emotions, sentiments, and phrases in order to predict what kind of copy the audience will best respond to.</p> <p>So, was it easy to convince leaders to invest? Despite his own clear intent, Saul explains that he was met with some resistance from above:</p> <p>“There was absolutely scepticism towards going down the AI route. There were a lot of talks internally, as well as back and forth between me and my marketing manager. After all, this is something completely new, right? AI that can write marketing language is something that three years ago we had no idea about - AI wasn't even a buzzword yet.”</p> <p>However, with the reassurance that the technology would streamline creation, with no extra training or skill-sets required, the company decided to take the risk. </p> <p>“The set-up didn't actually involve any kind of team or structural changes or ways of working - it was very straightforward," says Saul. "What we did was give Phrasee our tone of voice, which then allowed the AI to create a language that was specifically for us and our campaigns.”</p> <p><img src="https://assets.econsultancy.com/images/0009/4410/Phrasee.JPG" alt="" width="700" height="386"></p> <h3>Challenge number 2: Human bias</h3> <p>Alongside general unease at letting technology takeover, one of the biggest scepticisms towards AI is that it will lack creativity or imagination. As a result, Saul admits that a big learning curve has been taking a step back, and letting the AI do its job:</p> <p>“In the beginning we were definitely fiddling too much with the subject lines, which meant we were putting a human bias on them. During this time, we weren't actually seeing any success because we weren't letting the AI do its job. So, it was only after a few months (as we stopped correcting things) did we actually start seeing incremental results.”</p> <p>Interestingly, Phrasee’s technology is actually designed to challenge this type of human bias, as Saul also admits that AI has created subject lines that human writers wouldn’t have thought to use.</p> <p>“The company would never go into a sale weekend without promoting it in email subject lines, so if we had 20% off running we would always mention it. When we started using Phrasee, we actually realised that these subject lines were not the strongest ones,” he explained.</p> <p>As well as challenging bias, the AI’s ability to learn over time (and monitor how specific types of campaigns perform) also means that it is able to adapt and be even more intuitive than a human might. </p> <p>“During one particular marketing campaign," Sauls says, "'directness' and 'curiosity' were the most successful types of subject lines, but, as soon as we entered our sales phase, Phrasee understood that 'directness' and 'urgency' were working better - so it immediately started to auto generate subject lines in that area.”</p> <h3><img src="https://assets.econsultancy.com/images/0009/4409/Virgin_Holidays.JPG" alt="" width="650" height="519"></h3> <h3>The results:</h3> <p>In a fairly short space of time, Virgin Holiday’s AI-optimised subject lines were generating more engagement than before.</p> <p>“We started to see", Saul says, "that - for exactly the same campaigns and exactly the same segmentation - our open rates increased two percentage points.”</p> <p>While this might sound like a miniscule shift, Virgin Holiday’s reliance on email means that, in monetary terms, it makes the world of difference. The brand sends an average of 22 millions emails per year. Saul explains that “As a company that makes a lot of money out of email marketing, that uplift has generated several million pounds.”</p> <p>AI-optimised campaigns have also seen 66% increased awareness and a 33% increase in web traffic. But, alongside this tangible success, has Virgin Holidays learnt anything from the AI that they didn’t know before?</p> <p>According to Saul, there’s no ‘magic formula’ when it comes to subject lines, which is exactly why artificial intelligence can be such a game-changer in terms of marketing. This is because humans tend to be programmed to look for a ‘one-size-fits-all’ solution, as well as the fact that they can be repetitive by nature. </p> <p>In contrast, the AI looks beyond recent bias to take everything into consideration, creating copy on a campaign-by-campaign basis:</p> <p>“Over the years, the algorithm has got better and better and we have seen improvements year on year. There's no single subject line or word that works the best, because it always depends on the campaign. That’s the thing with true machine learning, it learns and changes over time. This means that just because something worked last year, it doesn't mean that it will work again now."</p> <h3>Looking ahead</h3> <p>So, with artificial intelligence clearly resulting in success, what about the notion that it will overpower and therefore eradicate human roles? Parry Malm, Phrasee's CEO, convincingly suggested at Supercharged that we should all ‘cut the BS’ – i.e. get rid of the notion that a 'super AI' will be detrimental to marketing rather than beneficial. He merely suggests that it is a "collection of technologies that perform tasks equal to or more effectively than humans", which, yes, means that it might change them, but not eradicate them.</p> <p>Meanwhile, will Virgin Holidays be looking to use AI in other ways apart from email in future?</p> <p>Saul suggests that the brand might soon be incorporating into another important focus for the brand – customer service:</p> <p>"We are talking about chatbots at the moment. We know that click-to-chat has increased, in fact, demand has increased 250% lately. Sometimes, we don't have enough resources, so we're trying to figure out ways to automate some of those queries to provide better service to our customers."</p> <p>Indeed, during Supercharged, AI for customer service was another big talking point, with brands including Age UK and RBS speaking about how the technology has helped to take the pressure off service channels and streamline processes.</p> <p>Chatbots are a different beast entirely, of course, but if Virgin Holidays' previous investment is anything to go by - AI (in all forms) can certainly pay off.</p> <p><strong>Related articles:</strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/69595-emojis-in-email-subject-lines-smiley-face-or-smiley-poop" target="_blank">Emojis in email subject lines: smiley face, or smiley poop?</a></li> <li><a href="https://www.econsultancy.com/blog/69951-how-ai-is-redefining-personalisation-the-job-of-the-email-marketer" target="_blank">How AI is redefining personalisation &amp; the job of the email marketer</a></li> </ul> <p><a style="color: #2976b2;" href="https://econsultancy.com/reports/email-marketing-best-practice-guide" target="_self"><img src="https://assets.econsultancy.com/images/0009/3237/Email_Marketing_Best_Practice_Widget.png" alt="email report banner" width="615" height="243"></a></p> tag:econsultancy.com,2008:Report/4785 2018-04-26T15:08:00+01:00 2018-04-26T15:08:00+01:00 A Marketer’s Guide to the Internet of Things <p><strong>A Marketer's Guide to the Internet of Things</strong> will demystify the Internet of Things (IoT), provide an update on the current adoption of IoT and explain how organisations can use IoT in marketing. </p> <p>It will explain the role of IoT as part of the trend towards ubiquitous computing and the opportunities that gives marketers to acquire data, develop products and services and add value to customers</p> <p>The report will: </p> <ul> <li>Help marketers establish an IoT point of view and opinion on how it might fit into their marketing plans. </li> <li>Provide an overall understanding of IoT and how it combines with other emerging technology trends.</li> <li>Make predictions on market size and the speed of adoption. </li> <li>Explore how and why IoT will transform the marketing of products and services and how it can be harnessed right now. </li> <li>Offer examples from different industries including retail, FMCG/CPG, financial services, utilities and telecommunications, travel, manufacturing and logistics, pharmaceutical and healthcare. </li> <li>Explain the breadth of opportunity afforded to brands, including revenues, brand extension, customer service and advertising. </li> <li>Discuss important considerations for designing a strategy. </li> <li>Propose a formula for IoT success.</li> </ul> <p>Econsultancy would like to thank the following people for their contribution to this report:</p> <ul> <li> <strong>Niall Murphy and Andy Hobsbawm</strong>, Co-founders, EVRYTHNG</li> <li> <strong>Josh Valman</strong>, CEO, RPD International</li> <li> <strong>Tom Wood</strong>, Managing Partner, Foolproof</li> <li> <strong>David Simmons</strong>, CTO and General Manager, Ping Asset Ltd</li> <li> <strong>Hans Nasemann</strong>, VP Major Appliances Asia Pacific, Electrolux</li> <li> <strong>Gerd Leonhard,</strong> CEO, The Futures Agency</li> <li> <strong>Mirko Giacco Michelangelo</strong>, Director of Commercial Operations and Digital, Vodafone Hungary</li> <li> <strong>James Chandler,</strong> Chief Marketing Officer, IAB UK</li> </ul> tag:econsultancy.com,2008:BlogPost/69780 2018-02-08T09:45:00+00:00 2018-02-08T09:45:00+00:00 Five ways ecommerce brands can build customer loyalty Nikki Gilliland <p>But are there really enough ways to make customers buy and buy again? </p> <p>With this in mind, let’s look outside of the obvious (point schemes) and at a few different tactics for inspiring customer loyalty, alongside the ecommerce brands that effectively utilise them.</p> <h3>Let them try before they buy</h3> <p>With brands like Amazon and ASOS setting the bar, free and fast shipping is now becoming the norm, and an expectation for customers. </p> <p>But, if it is an expectation, can it truly inspire loyalty? Perhaps to a certain extent, however, ecommerce brands are now recognising the emerging benefits of another key differentiator - the ‘try before you buy’ model. </p> <p>This strategy is based around managing risk, with brands taking away the uncertainty associated with online shopping and allowing customers to only pay for items they keep.  </p> <p>Recently, it was reported that ASOS’s decision to offer a ‘try before you buy’ service sent sales skyrocketing during a typically competitive Christmas period. The retailer’s UK sales grew 23% to reach beyond £300m in the last four months of 2017. Other brands appear to be taking note too - lingerie brand La Perla has also launched a similar initiative. </p> <p>So, why is this effective for building loyalty? Essentially, it lets customers know that they are trusted, which in turn helps to create a cycle of confidence in the brand and its service. On a basic level, it also means that customers might be less worried about the financial implications of online shopping, which could spur them on to order on a more regular basis.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Dreams do come true! Check out Klarna on the APP try before you buy</p> — ASOS (@ASOS) <a href="https://twitter.com/ASOS/status/930457360891629568?ref_src=twsrc%5Etfw">November 14, 2017</a> </blockquote> <h3>Align with consumer values</h3> <p>People are more attracted to brands that share the same values and beliefs as they do. <a href="https://www.helpscout.net/blog/brand-loyalty/" target="_blank">64% say</a> that this is the main reason they have a relationship with a brand. As a result, customers are more likely to stay loyal too if this is reinforced. For example, if they are reminded of how their custom might benefit a particular cause, or if they’re given rewards that contribute to it.</p> <p>This is shaping a new kind of loyalty programme. Last year, L’Oréal Paris launched its ‘Worth It’ rewards scheme, which gives customers the opportunity to redeem points for new products or the opportunity to give back. </p> <p>Customers can choose to donate their points to organisations represented by recipients of L’Oréal’s ‘Women of Worth’ awards, which is an awards event that recognises women for their work in altruistic fields.  </p> <p>By including a charitable element in its loyalty scheme, L’Oréal is yet another beauty brand focusing on cause marketing. The Sephora Stands programme is a similar initiative, designed to create a positive social impact through sales. By promoting philanthropic work (and recognising that customers care about more than just beauty products), these brands are creating stronger and more loyal relationships.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">We provide more training and jobs in partnership with @SephoraStands @Sephora We will empower 100,000 women the next few years #Cambodia pic.twitter.com/Zr81NgyB6F</p> — Nomi Network (@nominetwork) June 8, 2017</blockquote> <h3>Explain the benefits of loyalty</h3> <p><a href="https://econsultancy.com/blog/68114-six-tips-for-loyalty-program-success" target="_blank">Loyalty schemes</a> are proven to be an effective tool for customer retention. <a href="http://www.nielsen.com/uk/en/press-room/2013/nielsen-survey-84-percent-of-global-respondents-more-likely-to.html" target="_blank">Research suggests</a> that 84% of consumers are more likely to choose a retailer that has a loyalty programme, while 68% of millennials say they wouldn't be loyal to a brand if it doesn't have one. </p> <p>One of main the reasons that customers stop participating in schemes is because they do not offer enough or sufficient rewards (or make customers aware of them). So, it’s not just important for brands to offer customers a good loyalty programme in the first place, but to also effectively promote and communicate its benefits. </p> <p>One way to do is with a user-friendly explainer page, which helps customers understand how a programme works and encourages them to get involved. </p> <p>Urban Outfitters’ ‘UO Rewards’ page is a good example, because it puts its loyalty programme in the context of customer’s lives rather than merely outlining the details. Recognising that customers might assume that they can only claim rewards by shopping with the brand, the retailer focuses on other areas such as social sharing and visiting store events. </p> <p><img src="https://assets.econsultancy.com/images/0009/2102/Urban_Outfitters_rewards.JPG" alt="" width="780" height="513"></p> <p>In return, it explains how they can expect rewards such as further discounts, personalised prizes, and even a birthday gift if they rise to a 'VIP' loyalty status. With the majority of loyalty schemes merely involving points to redeem off products, these lifestyle-orientated rewards are likely to appeal to Urban Outfitter's young customer-base.</p> <p><img src="https://assets.econsultancy.com/images/0009/2172/UO_benefits.JPG" alt="" width="760" height="253"></p> <p>The page also effectively promotes the brand’s loyalty app, and includes a number of strong calls-to-action to drive downloads.</p> <p><img src="https://assets.econsultancy.com/images/0009/2105/UO_rewards.JPG" alt="" width="600" height="282"></p> <h3>Genuine gratitude</h3> <p>While operations can certainly make a difference, there are much more simple factors that can impact whether someone wants to come back. For example, expressing gratitude to customers can make a difference (for first-time buys as well as repeated purchases).</p> <p>Retailers automatically send confirmation emails, so a simple alternative would be to turn this into more of a thank you than a basic overview of a purchase. This is not remarkably impactful in itself, of course, but it can be a foundation on which to build an overarching email strategy, whereby a brand recognises (and shows gratitude) for loyalty over time. </p> <p>This could mean additional promo codes, or perhaps an email marking the anniversary of a purchase or <a href="https://www.econsultancy.com/blog/69314-eight-effective-examples-of-email-sign-up-forms" target="_blank">newsletter sign-up</a>. In whatever case, it shows customers that they’re valued, which is bound to strengthen a positive association with the brand. </p> <p>In turn, brands will also feel confident enough to ask for something more, such as feedback or reviews.</p> <p><img src="https://assets.econsultancy.com/images/0009/2108/Warby_Parker.JPG" alt="" width="650" height="514"></p> <h3>Be transparent (and accountable)</h3> <p>Many brands tend to be transparent only after admitting a mistake or wrong-doing. This might be somewhat effective for preventing customers from going elsewhere in the short-term – but it certainly doesn’t inspire loyalty in the long run. </p> <p>In contrast, being transparent from the get-go is much more likely to increase retention rates. Moreover, Label Insight suggests that 40% of customers say they would switch from their current preferred brand to one that offers more transparency.</p> <p>This is because transparency helps to generate trust, reassuring customers about what they can expect. Even better if a brand goes the extra mile and surpasses expectations.</p> <p>Retail brand <a href="https://econsultancy.com/blog/68119-how-everlane-is-using-an-exclusive-instagram-account-to-strengthen-customer-loyalty/" target="_blank">Everlane </a> famously displays a ‘radical transparency’ philosophy, which involves breaking down its pricing in terms of factors like manufacturing and importing. The idea is that customers can see exactly what they’re paying for. And in contrast to brands with quick supply chains, this indicates quality craftsmanship and clothing that lasts.</p> <p>By putting transparency at the heart of its marketing strategy, Everlane has managed to create a brand reputation based on openness and honesty, which in turn helps to keep its customers happy and coming back for more. </p> <p><img src="https://assets.econsultancy.com/images/0009/2171/Everlane.JPG" alt="" width="780" height="361"></p> tag:econsultancy.com,2008:BlogPost/69622 2017-12-04T15:30:00+00:00 2017-12-04T15:30:00+00:00 Four ways brands build loyalty & engagement (without using points) Jeff Rajeck <p>But apart from coming up with a loyalty points system, which can be expensive to run and difficult to maintain, what can marketers do to achieve this goal of greater customer longevity?</p> <p>To find out, Econsultancy recently invited dozens of brand marketers to our annual Digital Cream Singapore to discuss this and other pressing issues. Through roundtable discussions hosted by brand and marketing strategist, Liz Wullems-Griffioen, and Caroline Papadatos, SVP Global Solutions, LoyaltyOne, we arrived at four ways that brands are keeping customers engaged and loyal - without resorting to points programmes.</p> <h3>1) They fix their customers' problems</h3> <p>The first, and perhaps most basic, way that companies keep customers loyal is to do what customers expect them to do, the companies solve their customers' problems.</p> <p>This is where many businesses seek to add value, because they either don't typically deal with customers directly (e.g. distributors, agencies) or they are only ever in touch with customers when there is a problem (e.g. marketplaces, consumer commodities). By keeping a close eye on the whole customer journey and ensuring that any problems are dealt with quickly and to the level of customer satisfaction, these companies ensure that they have loyal, repeat business from their customers.</p> <p>And, as we live in an era where a bad review or a negative tweet can cause endless problems for the company, many at our roundtables felt that a company looking to start a loyalty programme should first of all focus on solving their customers' problems before trying anything else.</p> <p><img src="https://assets.econsultancy.com/images/0009/0806/customer-engagement-loyalty-1.jpg" alt="" width="800" height="533"></p> <h3>2) They empower employees</h3> <p>Another way that companies keep customers engaged without showering them with points is that they empower employees so that they can improve the overall customer experience.</p> <p>Marketers from retail companies shared that a common mistake is for companies to overestimate the importance of customer rewards and underestimate how vital it is that employees understand customers.</p> <p>One example offered was from a high-tech company who ensured that their frontline staff not only knew how to use the company's devices, but also knew typical use cases, common issues, and troubleshooting steps. This helped them speak to the customer about the product lines on the customers' terms, thereby increasing engagement and loyalty.</p> <p><img src="https://assets.econsultancy.com/images/0009/0808/customer-engagement-loyalty-2.jpg" alt="" width="800" height="533"></p> <h3>3) They aim to remain relevant across the whole customer lifecycle</h3> <p>One problem many marketers face is being heard above all of the messages that their customers receive every day. If the company can't get through to the customer, one participant said, then there is little hope of keeping them engaged.</p> <p>Another suggested that one way of keeping in touch with customers was to capture data points across the whole customer lifecycle and identify drop-off points. </p> <p>Then, when you do find them, come up with strategies to keep customers coming back. Many brands, one attendee said, will simply default to a points-based loyalty system or offer discounts to try and keep customers, but often the promise of discounts in the future is not what the customer is looking for.</p> <p>Instead, brands should aim to provide the information and help customers need, whether they are new or long-term users so that they continue to visit the website, open emails, and keep the brand as their preferred provider.</p> <p>Additionally, one marketer pointed out, this also keeps marketing from compromising the brand by offering different prices to different consumers.</p> <p><img src="https://assets.econsultancy.com/images/0009/0809/customer-engagement-loyalty-3.jpg" alt="" width="800" height="533"></p> <h3>4) They create mind-blowing experiences</h3> <p>Finally, participants said that  brands can keep customers coming back by being creative and offering experiences they will not have elsewhere.</p> <p>A few marketers indicated that thinking of these types of 'mind-blowing' customer experiences is how they are now spending a lot of their time and effort these days.</p> <p>One, from a bike sharing company, said that while the competition is chiefly advertising for engagement, they changed the game and created a contest where the most frequent riders on their bikes stood to win an iPhone X, achieving both loyalty and viral reach.</p> <p>And finally, a public transport company who largely focuses on solving problems came up with one of the most interesting loyalty-driving techniques of the day.  The marketing team created a scent with a focus group to ensure that every rider had a unique and engaging experience during its otherwise commodity service.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank <strong> Liz Wullems-Griffioen, Brand, Marketing &amp; Communications Strategist</strong> and <strong>Caroline Papadatos, SVP Global Solutions, LoyaltyOne</strong> for hosting the Customer Engagement &amp; Loyalty table and <strong>Epsilon</strong> for sponsoring it. </p> <p>We'd also like to thank all of the marketers who attended Digital Cream Singapore 2017 and shared their valuable insights.</p> <p>We hope to see you all at future Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0009/0810/customer-engagement-loyalty-4.jpg" alt="" width="800" height="533"></p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/68811-loyalty-programs-are-losing-their-sway-here-s-what-brands-can-do-about-it">Loyalty programs are losing their sway, here's what brands can do about it</a></li> <li><a href="https://www.econsultancy.com/blog/69594-hotels-are-boosting-loyalty-with-dining-experiences-featuring-four-examples">Hotels are boosting loyalty with dining experiences (featuring four examples)</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69594 2017-11-22T12:00:00+00:00 2017-11-22T12:00:00+00:00 Hotels are boosting loyalty with dining experiences (featuring four examples) Nikki Gilliland <p>So, what are hotels doing, and will it work? Here are a few examples.</p> <h3>InterContinental Hotels partners with OpenTable and GrubHub</h3> <p>InterContinental Hotels Group (IHG) – the owner of Holiday Inn, Crowne Plaza, and many other big hotel chains – recently announced a partnership with OpenTable and Grubhub to launch a new food and drink loyalty programme. </p> <p>The idea of the scheme is that IHG loyalty members can earn points whenever they make a restaurant reservation via OpenTable or order a takeout from GrubHub to be delivered to their hotel. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Explore the flavors of Down Under with 5 must-try restaurants in Adelaide’s West End <a href="https://t.co/CNBtYSBxLK">https://t.co/CNBtYSBxLK</a> <a href="https://t.co/bqhx5y54E0">pic.twitter.com/bqhx5y54E0</a></p> — IHG Rewards Club (@ihgrewardsclub) <a href="https://twitter.com/ihgrewardsclub/status/913832756915970048?ref_src=twsrc%5Etfw">September 29, 2017</a> </blockquote> <p>To earn points, members must use an IHG channel to book or order, such as its app, website, or hotel WiFi.</p> <p>So how is it different to other food-based loyalty programmes? While traditional ones might merely reward members for using the in-hotel restaurant or dining out in select restaurants, IHG is giving its members much more choice, allowing them to choose any restaurant on OpenTable or order whatever they want from GrubHub. </p> <p>The clever part is that the loyalty programme is pretty much guaranteed to generate engagement. After all, eating is both a daily habit and a social experience, meaning that members are likely to use and enjoy the programme regardless of why they’re travelling or what their personal circumstances are. Naturally, they’re also likely to look favourably on the hotel group for rewarding them for partaking in the activity.</p> <p>In turn, IHG is able to play a much bigger role for members, having a direct impact on their travel experience even when they’re out and and spending their money elsewhere.</p> <p><img src="https://assets.econsultancy.com/images/0009/0585/IHG_Rewards.JPG" alt="" width="780" height="498"></p> <h3>Wyndham's recipes and grocery deliveries</h3> <p>Rewards are one of the biggest benefits for business travellers, with regular travel allowing people to rack up a large number of points.</p> <p>Extended-stay services are another way hotels aim to increase value for corporate travellers, offering extra facilities such as laundry amenities and fully-equipped kitchens.</p> <p>In order to take this one step further, last year Wyndham Suites launched a new programme for extended-stay guests called ‘Homemade @ Hawthorn’. It involves an exclusive selection of recipes designed by well-known chefs, as well as the ability to order groceries from on-demand companies like Instacart in order to create them.</p> <p><img src="https://assets.econsultancy.com/images/0009/0587/Homemade___Hawthorn_2.JPG" alt="" width="760" height="499"></p> <p>While the programme is not ground-breaking - guests already have access to kitchens as well as nearby grocery stores.</p> <p>However, with recipes and delivery services being made readily available, convenience and comfort levels are increased, making guests feel like the hotel is a ‘home away from home’.</p> <p><img src="https://assets.econsultancy.com/images/0009/0588/Homemade___Hawthorn.JPG" alt="" width="760" height="497"></p> <h3>Marriott's new combined loyalty scheme</h3> <p>Marriott Rewards is well-known to be one of the best and most popular hotel loyalty programmes, reportedly garnering around 75m members. Dining is already integral to its success, as like many others it offers members the chance to earn points by dining. </p> <p>Earlier this year, however, it decided to step up its game, launching the new ‘Club Marriott’ scheme in Hong Kong – combining Club Marriott, Eat Drink &amp; More, and Star Privilege into one mega-loyalty scheme.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Join the new <a href="https://twitter.com/hashtag/ClubMarriott?src=hash&amp;ref_src=twsrc%5Etfw">#ClubMarriott</a> , now combined with the Eat, Drink &amp; More membership which brings to you even greater benefits at more than 250 participating Marriott hotels with over 1,000 restaurants across Asia Pacific. Click here for more! <a href="https://t.co/f2ofPOCWcU">https://t.co/f2ofPOCWcU</a> <a href="https://twitter.com/hashtag/thewestinmumbai?src=hash&amp;ref_src=twsrc%5Etfw">#thewestinmumbai</a> <a href="https://t.co/N4lfsqsRtH">pic.twitter.com/N4lfsqsRtH</a></p> — The Westin Mumbai (@TheWestinMumbai) <a href="https://twitter.com/TheWestinMumbai/status/932964151223291906?ref_src=twsrc%5Etfw">November 21, 2017</a> </blockquote> <p>It is similar to IHG in a way as it aims to give members greater choice. However, instead of using third-party companies, it has partnered with more than 250 participating Marriot hotels in 13 countries, with each one positioning their own dining experiences and concepts to showcase restaurants. </p> <p>In this sense, it doesn’t only use dining to reward members, but as an incentive to choose Marriott in the first place. With each bar and restaurant having its own unique identity (in terms of name and the dining experience it offers) – the chain is arguably more known for being a place to meet, eat and drink rather than merely sleep. </p> <p><img src="https://assets.econsultancy.com/images/0009/0591/marriott.JPG" alt="" width="760" height="555"></p> <h3>Shangri-La surprise and delights (using social media)</h3> <p>Finally, Shangri-La’s food loyalty programme, ‘The Table’, focuses much more on dining as an emotive experience. Unlike the aforementioned examples, which tend to use discounts and rewards, it gives guests memorable dining experiences to drive loyalty.</p> <p>There are rewards in the traditional sense, with 500 participating restaurants allowing members to earn points and redeem them. However, the scheme is also an online tool to allow consumers to find a restaurant or bar suited to their specific needs.</p> <p><img src="https://assets.econsultancy.com/images/0009/0592/Shangri_La.JPG" alt="" width="760" height="563"></p> <p>On the Table digital hub, users can search restaurants based on categories like ‘elegant’, ‘intimate’, and ‘upbeat’. Meanwhile, the site also emphasises dining as a highly social event, integrating social media feeds to allow members to share their own experiences.</p> <p>Shangri-La’s loyalty programme is one of the most customer-centric, basing ‘The Table’ on the results of a survey of more than 3,000 of its existing loyalty members. Interestingly, elements of surprise and delight were found to be more important <a href="https://www.econsultancy.com/blog/67841-as-consumers-clamor-for-good-deals-discount-strategy-becomes-key-for-retailers" target="_blank">than discounts</a>, with 56%% saying unique dining experiences would bring guests back to a restaurant. </p> <p><img src="https://assets.econsultancy.com/images/0009/0593/FromTheTable.JPG" alt="" width="760" height="529"></p> <h3>In conclusion….</h3> <p>While dining can undoubtedly be a social experience within the context of travel, at a basic level, it’s also a daily habit. IHG and Wyhndam tap into this, giving members greater convenience (and loyalty incentives) no matter where or how they want to eat. In contrast, both Marriott and Shangri-La use the emotive and social aspects of food, offering them memorable and immersive experiences to drive loyalty.</p> <p>When it comes to choosing a hotel, food and drink might not be a key incentive. However, when it comes to re-booking or becoming a loyal member, these examples show that it is certainly a key driver.</p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://www.econsultancy.com/blog/69555-six-excellent-hotel-websites-and-how-they-encourage-direct-booking" target="_blank">Six excellent hotel websites (and how they encourage direct booking)</a></em></li> <li><em><a href="https://econsultancy.com/blog/68544-disrupting-loyalty-how-can-hotels-become-enablers-not-just-destinations" target="_blank">Disrupting loyalty: How can hotels become enablers, not just destinations?</a></em></li> <li><a href="https://econsultancy.com/blog/68114-six-tips-for-loyalty-program-success" target="_blank"><em>Six tips for loyalty program success</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/69516 2017-10-23T09:26:00+01:00 2017-10-23T09:26:00+01:00 10 important digital marketing stats we’ve seen this week Nikki Gilliland <p>Now, let’s get cracking.</p> <h3>Snapchat and Instagram ad spend up 73% and 55%</h3> <p>New data from 4C Insights has revealed that ad spend was up for both Snapchat and Instagram in Q3 2017, rising 73% and 55% respectively.</p> <p>There was a rise in paid media spend across the board, with a 31% quarterly increase on Facebook, Instagram, Twitter, LinkedIn, Pinterest, and Snapchat.</p> <p>Instagram Stories remains a particularly strong channel, generating 220% year-on-year spend growth. Elsewhere, Facebook ad spend grew 27%, travel sector spend on Twitter surged 250% for the quarter, and ad spend on Pinterest grew 33% over the course of the year.</p> <h3>60% of speciality retailers offer loyalty programs compared to 22% of brands</h3> <p>A new report by <a href="https://astoundcommerce.com/us/specialty/">Astound Commerce</a> suggests that specialty retailers are outperforming brands in almost all omnichannel categories.</p> <p>First, 60% of specialty retailers offer programs to inspire customer loyalty, while only 22% of brands have these capabilities. Second, ensuring prices are consistent across channels is more complicated for retailers with many different brands, yet 37% offer these capabilities compared to only 6% of global brands.</p> <p>Lastly, three in four specialty retailers have a mobile app, while less than a quarter of brands can say the same.</p> <p><img src="https://assets.econsultancy.com/images/0008/9797/Loyalty.JPG" alt="" width="760" height="323"></p> <h3>More than half of Brits plan to buy Christmas gifts online</h3> <p>The latest <a href="https://www.salesforce.com/uk/form/industries/connected-shopper-report-2017.jsp?nc=7010M000000uIke&amp;d=7010M000002MOCH" target="_blank">report</a> from Salesforce suggests that the majority of Brits will be shopping online this Christmas. It found that 56% (or nearly three out of five Brits) plan to do half or more of their holiday shopping via the internet.</p> <p>Alongside a frustrating in-store customer experience, this could be due to online shopping allowing consumers to become increasingly informed. So much so that 56% of Brits claim to typically know more about a product than the store employee.</p> <p><img src="https://assets.econsultancy.com/images/0008/9793/Salesforce.JPG" alt="" width="780" height="216"></p> <h3>Nearly one in seven companies unprepared for GDPR</h3> <p><a href="https://dma.org.uk/research/the-gdpr-and-you-chapter-four" target="_blank">DMA research</a> has revealed that 15% of companies still have no plan in place to be ready for the new GDPR laws by May 2018.</p> <p>While 77% of marketers now rate their awareness as ‘good’, and 74% describe themselves as feeling somewhat or extremely prepared for the changes, this drops to 58% when it comes to their organisation being ready. </p> <p>Meanwhile, it also appears as if worries are increasing as time goes on. 42% of marketers now feel their business will be “very affected” by the new laws and a further 22% feel they will be “extremely affected”. Lastly, 65% of those surveyed agree that the GDPR will be a hindrance to their marketing.</p> <p><em>Check out our hub page to learn more about <a href="https://econsultancy.com/hello/gdpr-for-marketers/">how GDPR will affect marketers</a>.</em></p> <h3>98% of UK consumers believe in ‘bad personalisation’ </h3> <p>Research by Sitecore and <a href="https://www.vansonbourne.com/client-research/14121601jd" target="_blank">Vanson Bourne</a> has found that brands are failing to use customer data to deliver relevant and personalised customer experiences. In fact, a whopping 98% of UK consumers say that they believe ‘bad personalisation’ exists, with a further 66% believing brands are using out-of-date information about them.</p> <p>While brands say they’re collecting eight different types of data about online customers, 18% of them recognise that they lack the skills needed to properly use or analyse the data collected. </p> <p>Meanwhile, 42% don’t have the capabilities to integrate data collection and only 18% have the ability to collect online data on an individual (vs. consumer segment) level.</p> <p><img src="https://assets.econsultancy.com/images/0008/9791/Sitecore.JPG" alt="" width="650" height="618"></p> <h3>Click and Collect is driving additional in-store sales</h3> <p>A new report by <a href="http://now.jda.com/European-Customer-Pulse-Report-EMEA.html?srcid=jda-pr" target="_blank">JDA &amp; Centiro</a> suggests that click &amp; collect can be a pivotal driver for additional in-store sales. In a survey of more than 8,000 consumers across the UK, Germany, France and Sweden, 24% of European adults said that they have bought additional products while picking up their item from a physical retail store.</p> <p>UK consumers are particularly ahead of the curve in this area. 54% of UK shoppers say they have used it in the last year, compared to 42% for the European average.</p> <p>Despite this growing convenience, however, many consumers are still reporting frustrations over the online shopping experience. 55% of European adults say they have experienced a problem with an online order at some point in the last 12 months.</p> <h3>Consumers in developed countries are more suspicious of brands</h3> <p>Kantar TNS’s latest research has revealed that consumers in the UK and US are growing increasingly suspicious of brands, while those in emerging countries are more accepting of brand content and messaging.</p> <p>In China and Nigeria, 57% and 54% of consumers trust big global brands, however this falls significantly in developed markets like the USA and France, where just 21% and 15% trust big global brands.</p> <p>This ‘consumer trust divide’ was highlighted in a survey of 70,000 people across 56 countries. It also found that many consumers are choosing privacy over convenience, with 43% of global consumers objecting to connected devices monitoring their activities – even if it makes their lives easier.</p> <p><img src="https://assets.econsultancy.com/images/0008/9792/Kantar.JPG" alt="" width="780" height="390"></p> <h3>Majority of users happy with Twitter’s longer format</h3> <p>How do people feel about Twitter’s new 280-character limit?</p> <p>According to a survey by <a href="https://morningconsult.com/2017/10/13/u-s-adults-likely-favor-twitters-280-character-expansion/" target="_blank">Morning Consult</a>, people are largely positive, with 41% of users aged 18-29 responding well to the change, and just 14% expressing reservations.</p> <p>Similarly, 30% were somewhat supportive of longer-format tweets, while 17% said the increased character limit made them more likely to tweet themselves. 20% also agreed that they would be more likely to check Twitter for news about current events as a result of the change.</p> <p><img src="https://assets.econsultancy.com/images/0008/9796/Twitter.JPG" alt="" width="740" height="579"></p> <h3>Adspend on video ads overtake banners ads</h3> <p>The <a href="https://www.iabuk.net/research/digital-adspend" target="_blank">Internet Advertising Bureau UK</a> has reported that in the first half of the 2017, advertisers spent more on video ads than banner ads for the first time.</p> <p>Total digital adspend grew 13.8% to £5.56bn in the first six months of the year compared to the same period a year earlier. However, spending on online video ads grew at 46% to reach £699m, while spend on banner ads slowed to just 2%, reaching £685m.</p> <p>Video is now said to be the fastest-growing ad format, accounting for 35% of all spend going on display advertising. Meanwhile, display advertising as a whole grew 18% to £2bn.</p> <h3>Consumers think brands have a responsibility to break gender stereotypes</h3> <p>Finally, a <a href="http://blog.choozle.com/category/other/">Choozle</a> survey has delved into consumer sentiment on the usage of gender stereotypes in digital advertising, and whether or not it affects purchasing decisions.</p> <p>The results indicate that consumers feel it should be the brand’s responsibility to break down gender stereotypes, with 37% of people agreeing that the industry should not use them.</p> <p>Similarly, 36% of respondents said they like a brand more when it runs advertisements that break stereotypes and 25% said they are more likely to purchase from that brand. </p> <p><img src="https://assets.econsultancy.com/images/0008/9799/Gender_stereotypes.JPG" alt="" width="760" height="378"></p> tag:econsultancy.com,2008:Report/4578 2017-09-04T17:18:00+01:00 2017-09-04T17:18:00+01:00 Tesco: Lessons in customer centricity <p><em>Tesco: Lessons in customer centricity</em> is part of a series of brand strategy briefings examining the marketing strategies and tactics of the most popular and searched-for brands. As part of this series, Econsultancy curates a selection of brand case studies and stories to help you improve your modern marketing efforts.</p> <p>Tesco is one of the largest retailers in the world, but faces mounting competition from discounters, including Aldi and Lidl. In this briefing, we explore how the supermarket has been putting the customer at the heart of its marketing strategy, an approach that has coincided with six consecutive months of sales growth.</p> <h2>What you'll learn</h2> <ul> <li>Tesco's shift towards ‘inside out’ marketing</li> <li>The evolution of the Clubcard loyalty scheme</li> <li>Tesco’s wine-centric approach to experiential marketing</li> <li>The brand’s trial of digital receipts</li> </ul>