tag:econsultancy.com,2008:/topics/marketing-automation Latest Marketing Automation content from Econsultancy 2016-09-14T11:00:00+01:00 tag:econsultancy.com,2008:BlogPost/68236 2016-09-14T11:00:00+01:00 2016-09-14T11:00:00+01:00 Three big problems with marketing automation rules (and how to solve them) Andrew Davies <h3>Is marketing automation delivering?</h3> <p>As marketers, we live in a world where the number of choices that we have to make to deliver the right message to the right person at the right time is increasing exponentially.</p> <p>Marketing has moved from mass advertising where you sent one message to everyone, to segments where messages are sent to a limited number of people, to now having to understand individual <a href="https://econsultancy.com/reports/understanding-the-customer-journey/">customer journeys</a>.</p> <p>Marketing automation has emerged as a supposed panacea to this problem, yet despite years of propaganda from vendors promising the world, many B2B enterprises that have bought <a href="https://econsultancy.com/reports/marketing-automation-best-practices">marketing automation</a> are finding that it is not quite the silver bullet they expected. </p> <p>The Annuitas 2015 B2B Enterprise survey of over 100 B2B enterprise marketers from organizations with annual revenues that exceed $250m revealed that only 2.8% of respondents believed demand generation campaigns achieve their goals.</p> <p>Similarly, Econsultancy’s <a href="https://econsultancy.com/reports/email-census-2016/">Email Marketing Industry census</a> surfaced that only 7% of respondents deemed their in-house automated campaigns to be “very successful”. </p> <p>The truth is that even if you avoid marketing automation mistakes (<a href="https://econsultancy.com/blog/67250-seven-avoidable-marketing-automation-mistakes/">such as these</a>), you are still lumbered with the task of using marketing automation rules and decision logic to select and deliver campaign messages.</p> <p><img src="https://assets.econsultancy.com/images/0007/9143/Screen_Shot_2016-09-14_at_09.19.22.png" alt="marketing automation success" width="615" height="518"></p> <h3>Three big problems with marketing automation rules</h3> <p>At the heart of all marketing automation technology and outputs are the rules used to tell the marketing automation platform which content or message to select and send to which particular contacts in your database.</p> <p>This structure necessarily leads to three big problems for B2B organisations:</p> <p><strong>1) Marketing automation rules cannot cope with complex buyer journeys</strong></p> <p>All marketing automation relies on preset logic (“If this X happens then do Y”, “if X does not happen, then do Z”) and traditional purchase-funnel theory to architect marketing campaigns and trigger communications.</p> <p>The problem is that the <a href="https://econsultancy.com/blog/66322-do-companies-understand-the-customer-journey/">B2B buyer journey is much more complex</a> than marketing automation vendors would have you believe. </p> <p><strong>2) Rules cannot adapt to changing contexts</strong></p> <p>The nature of marketing automation rules is that once they have been activated they remain active until you manually deactivate them.</p> <p>This mean that they are not adaptive and they cannot learn from a campaign’s results, only repeat them.</p> <p>Sure, you can create a rule that says: IF [Marketing Automation score] [increases] [+5] THEN [remove from] [LISTNAME] AND [add to] [NEW LISTNAME], but rules cannot cope with the reality that prospects are continually evolving in their <a href="https://econsultancy.com/blog/67121-the-lead-data-hierarchy-for-busy-sales-people-savvy-b2b-marketers/">interests and needs</a>, not just their sales stage or marketing automation score. </p> <p><strong>3) Marketing automation rules mean more - not less - staff</strong> </p> <p>As counterintuitive as it sounds, marketing automation often means having to bring on more – not less – staff.</p> <p>As well as a marketing manager, a database manager, a demand gen exec, a content strategist, you will most likely need a marketing technologist who is able to help you get the most out of your new system.</p> <p>All of these people have input into creating the rules that are used and the cost of hiring will ultimately prolong the time it takes to see positive ROI on your marketing automation purchase.</p> <p><img src="https://assets.econsultancy.com/images/0007/9141/marketing_automation_complexity.jpg" alt="complexity of marketing automation" width="615"></p> <p>As soon as you begin to understand the three big problems with marketing automation rules, it all becomes clear why <a href="https://econsultancy.com/blog/66882-how-to-fix-the-50bn-problem-in-b2b-content-marketing/">60% of content in B2B organisations is wasted </a>and why one of the biggest issues in demand generation is <a href="https://econsultancy.com/blog/63400-interest-abandonment-coming-to-a-purchase-funnel-near-you/">interest abandonment.</a></p> <h3>What are the solutions to the marketing automation rules problem? </h3> <p>As the co-founder of a B2B technology company, and having spent the past few years refining our demand generation process, I know just how powerful a good marketing automation system and practice can be - but I am also cognisant of the above problems.</p> <p>This has led us to try the following solutions:</p> <p><strong>Create more rules

</strong></p> <p>It’s true - one way to address the problem of imperfect marketing automation rules is to create more marketing automation rules to try and meet every kind of conceivable customer journey, context or need. </p> <p>However, you can only create so many rules. It is perhaps feasible when an organisation has a limited product portfolio or few content assets, but when you are a high-volume publisher with a wide variety of products and customer types (such as a <a href="https://econsultancy.com/blog/67419-how-to-make-content-marketing-easy-for-wealth-asset-managers/">wealth and asset management firm</a>) this is impossible.</p> <p>The problem is that although the number of choices is increasing, the number of rules that we can make (to make the decisions to govern those choices that we can create) is very limited. </p> <p><strong>Hire more people

</strong></p> <p>We can only create so many rules whilst retaining the same number of marketers before the Law of Diminishing Returns kicks in.</p> <p>The next option then is to increase the number of rules and increase the number of marketing staff to create and manage these rules.</p> <p>The problem here is that number of available marketers is finite and the number of marketers that one can afford is even more finite, so CMOs that are on a hiring spree will still ultimately be faced with this fundamental gap between the number of choices they need to make and the number of marketing automation rules that their team can can create to make those choices. 

</p> <p><strong>No More Rules - use predictive machine-learning

</strong></p> <p>This leaves us with a third option - eschewing marketing automation rules altogether by turning to predictive, machine-learning technologies that use algorithms to make decisions, rather than rules.</p> <p>Although some marketers may baulk at the idea of turning over marketing decisions to artificial intelligence, it is becoming an<a href="https://econsultancy.com/blog/67745-15-examples-of-artificial-intelligence-in-marketing/"> increasingly common and accepted practice</a>.</p> <p>The benefit of using predictive machine-learning is that it can learn from new information and quickly decide what the next best action is for an optimal outcome.</p> <p>Machine learning is well-suited to environments where CMOs face complex buyer journeys, constantly evolving user profiles and myriad pieces of content that need to be categorised and structured before being served across multiple channels.</p> <p>Better yet, these technologies can be integrated <em>with</em> your marketing automation platform. </p> <p>Rather than relying on restrictive rules-based logic, a ‘no more rules’ approach adapts to the unique signals and interactions of each buyer and automatically decides the best message, content or product to send to them.</p> <p>It’s an approach that saves both the prohibitive operational costs of hiring more staff and time-intensive stress of having to create rules that can govern every scenario in the ever-complex B2B buyer journey.</p> tag:econsultancy.com,2008:BlogPost/68256 2016-09-06T14:06:47+01:00 2016-09-06T14:06:47+01:00 RIP innovation: How your company culture is killing marketing creativity Chloe Young <p dir="ltr">In a fast-moving marketing landscape where new channels and platforms appear almost monthly, do marketers run the risk of losing opportunities because they haven’t yet been proven?</p> <h3 dir="ltr">What are the barriers to investment in digital marketing?</h3> <p dir="ltr">An <a href="https://econsultancy.com/reports/marketing-budgets/">annual study by Oracle Marketing Cloud and Econsultancy</a> asked marketers: “What is preventing your company from investing more in digital marketing?”</p> <p dir="ltr">The 2016 results showed clearly that, along with restricted marketing budgets, inability to measure ROI, short staffing and company culture were top obstacles.</p> <p dir="ltr">Crucially, the drive for strict ROI impacts the other factors, as without concrete figures decision makers are unwilling to increase budgets.</p> <p dir="ltr">This impacts staffing and forces continued reliance on traditional marketing, creating a vicious cycle.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/8792/marketing_budgets.png" alt="" width="639" height="437"></p> <h3 dir="ltr">Is your company culture risk-averse or innovation-friendly?</h3> <p dir="ltr">In a risk-averse culture, innovation is stifled by the overwhelming need to demonstrate ROI. But innovation requires people, and hiring the right people requires budget.</p> <p dir="ltr">With budget hanging on ROI, you find yourself stuck in limbo, unable to bring innovators into the team who can explore new channels, and bring positive change.</p> <p dir="ltr">Your organisational culture should enable, support and catalyse change.</p> <p dir="ltr"><a href="https://www.econsultancy.com/reports/effective-leadership-in-the-digital-age">Research</a> has shown that digital leaders see clear differences between companies with a digital culture and those without in their ability to adapt, innovate and create.</p> <p dir="ltr">To gauge the current state, Oracle Marketing Cloud and Econsultancy asked marketers to agree or disagree with the statement: “We reserve a proportion of budgets for more innovative but untried marketing activities.”</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/8793/agree_with_these_statements_.png" alt="" width="700" height="467"></p> <p dir="ltr">At one extreme, a third (33%) of respondents disagreed with the statement, with 8% replying ‘strongly disagree’.</p> <p dir="ltr">These companies can be said to have risk-averse marketing strategies with little room for innovation.</p> <p dir="ltr">At the other end, 35% agreed to some extent that there was room in their budgets for trying new marketing activities, with 3% replying ‘strongly agree’. The remaining third (32%) were neutral.</p> <p dir="ltr">It’s clear that newer marketing opportunities are not always enthusiastically grasped and explored.</p> <p dir="ltr">But by relying too heavily on what has worked in the past, marketers run the risk of falling behind in today’s fast-moving marketing landscape.</p> <p dir="ltr">What worked yesterday may be no good tomorrow. Ongoing marketing success requires an open mind and the ability to adapt.</p> <p dir="ltr">That’s why it’s essential to set aside time and budget for charting new frontiers.</p> <h3 dir="ltr">New channels pose a challenge to ROI reliance </h3> <p dir="ltr">Some channels are perceived as more measurable than others. Established formats like email and <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">PPC</a> win out over newer disciplines like mobile, personalisation and video. </p> <p dir="ltr">This illustrates the danger of being driven purely by ROI. All indicators now point to mobile and video as the current and next big things in consumer consumption. </p> <p dir="ltr">Mobile now counts for 25-29% of consumer time on media, and yet our survey of marketers found that respondents are spending only 4% of their digital marketing budgets on mobile marketing.</p> <p dir="ltr">According to Sir Martin Sorrell, CEO of WPP advertising group:</p> <blockquote> <p dir="ltr">Underinvestment in mobile... is due to a lack of clarity around the measurement of mobile advertising, particularly in the ‘walled garden’ ecosystems of Facebook and Google.</p> <p dir="ltr">Creativity on mobile is one thing, but measurement is another; people are not sure of the ROI.</p> </blockquote> <p dir="ltr">Only 18% of respondents said their ability to measure ROI was good for mobile marketing for acquisition, and 15% for mobile marketing for engagement/retention.</p> <p dir="ltr">Between them, Facebook and Google have 70% of marketing share, with a higher penetration than desktop.</p> <p dir="ltr">So it’s clear that marketers must put more budget into these emerging channels. A lack of innovation here will quickly see brands falling out of step with consumer behaviour. </p> <h3 dir="ltr">Shop Direct case study </h3> <p dir="ltr">Investing in mobile doesn’t have to be a stab in the dark. As the channel matures, clear examples of brand success are beginning to emerge.</p> <p dir="ltr">Shop Direct, the UK’s second-largest online retailer, ploughed budget into Facebook’s suite of advertising products for its Black Friday campaign.</p> <p dir="ltr">It moved customers through every part of the funnel, from awareness (via Instagram and Facebook videos), to consideration (through retargeting video viewers), to conversion with Facebook dynamic product ads.</p> <p dir="ltr">The results speak for themselves: a 20x return on investment, and Shop Direct's most successful sales day ever.</p> <h3 dir="ltr">What next: ROI vs Innovation?</h3> <p dir="ltr">The good news is that marketers are a dynamic and forward-thinking bunch of people.</p> <p dir="ltr">Already, over a third of companies have room in their budget for innovation, with a core 3% leading the pack.</p> <p dir="ltr">However, there is still much room for improvement. Perhaps due to restrictive budgets and risk-averse company culture, mobile, marketing automation and personalisation are yet to make it into the top ten priorities for budget increases.</p> <p dir="ltr">But the industry is waking up to the importance of other new approaches like social media acquisition and video advertising; 60% and 58% plan to increase investment in these channels, respectively.</p> <p dir="ltr">The marketing landscape and consumer behaviour continue to rapidly evolve. The field will belong to those who can maintain established ROI-led activities, and exploit rich new opportunities as they unfold.</p> <h3 dir="ltr">Takeaways</h3> <ul> <li> <p>Commitment to ROI is crucial but can be a dampener on marketing innovation.</p> </li> <li> <p dir="ltr">Restricted budgets, lack of staff and a risk-averse company culture are the key obstacles to investment in digital marketing.</p> </li> <li> <p dir="ltr">Your organisational culture should enable, support and catalyse change.</p> </li> <li> <p>Newer channels like video and mobile are forcing marketers to innovate in order to keep up with consumer behaviour.</p> </li> <li> <p dir="ltr">Ongoing success relies on ability to balance 'safe' ROI-driven activities with innovation and new approaches.</p> </li> </ul> <p dir="ltr">Find out how marketing budgets are changing, and how to extract maximum value from yours!</p> <p dir="ltr"><em>Download: <a href="https://econsultancy.com/reports/marketing-budgets/">Marketing Budgets 2016: Part of the Modern Marketing Actionable Insights Series</a>.</em></p> tag:econsultancy.com,2008:BlogPost/68093 2016-07-28T12:43:06+01:00 2016-07-28T12:43:06+01:00 Three surefire ways to maximize your CRM’s effectiveness Shaun Haase <p>While some features are overly complex or not fit for every business, there are key components that can deliver tremendous value if you can get your sales team over the initial learning curve.</p> <h3>Create automated actions </h3> <p>Automated actions allow you to easily set up, assign and manage tasks for your sales team.</p> <p>These simple actions can help streamline the collaboration between different team members while eliminating the tedious process of checking in throughout the day for status updates. Rather than having every team member update the system manually, a CRM can help automate these actions to create a more seamless workflow.</p> <p>In addition to internal task management, sales teams also engage in external communications when liaising with customers or partners. One critical part of this process is the follow-up.  </p> <p>With task automation, team leads can set reminders that will ensure that these follow-ups take place at exactly the right time – but in a way that’s not overly distracting.</p> <p>During times when everything seems like a priority, sales teams have to juggle multiple tasks. To prevent them from dropping the ball, team leaders can help by creating reminders for each step of the process to better organize and prioritize tasks.  </p> <p>A few examples of rules to set for your sales team may include:</p> <ul> <li>Reminders to send out collateral materials to a customer after speaking on the phone;</li> <li>Scheduling an in-person meeting after communicating with a lead more than three times; or </li> <li>Following up to make sure everything is OK if the lead goes silent for a week.  </li> </ul> <p>You can set up tasks and reminders for every step in the sales cycle that would automatically initiate the action that you want your team to take.</p> <p><img src="https://assets.econsultancy.com/images/0007/7538/Screen_Shot_2016-07-28_at_12.29.14.png" alt="reminder" width="450"></p> <h3>Use tags to quickly retrieve information</h3> <p>Tags are custom labels that can be applied to CRM contacts and sales leads. You can add as many tags as you wish to an entry, and the goal is to make it easier to search for and retrieve contacts based on a specific filter such as regional leads, future opportunities or top customers.</p> <p>If location plays a big role in your sales and marketing strategy, you can add tags like: Southwest, Northeast, Midwest, etc.</p> <p>For instance, a sales manager working in a swimsuit business might find value in being able to extract a list of existing or potential customers based in the Southwest region to better target them during the fall.</p> <p>Alternatively, if you’re in a highly saturated industry where competition is high, your CRM can help identify opportunities where the stakes are lower. By using your CRM to help focus resources on lead generation, you’ll be able to convert more customers and make more sales.</p> <p>Top customers can also be labeled with appropriate tags such as “VIP”, “power user” or “early adopter”. These tags can come in handy when trying to quickly identify customers who may be inclined to beta test your newest feature update or take an early look at an upcoming product release. </p> <p><img src="https://assets.econsultancy.com/images/0007/7539/tags.jpeg" alt="tags" width="225" height="225"></p> <h3>Manage customer inquiries with the sales pipeline feature</h3> <p>A sales pipeline can be great for tracking new or open deals. Alternatively, it can also be used to manage inbound inquiries and requests by customers or partners.</p> <p>If a customer sends in a detailed product inquiry, you can easily input it into the CRM and assign it to a new sales pipeline.</p> <p>Rather than going through your typical sales oriented stages, you can add relevant milestones such as “under investigation”, “responded” and “resolved”.</p> <p>As part of a sales team, you’ll likely also receive requests from customers about new product features that they want and could help improve their business. With a CRM, you can treat these requests as you would a new business opportunity.</p> <p>If enough customers request similar types of features, you can add this to a development pipeline to take action that will support the development of the requested feature or product. </p> <p>Finally, it’s inevitable that your customer will switch to one of your competitors. If this can be identified early on using a CRM, team leads can build in a strategy for retaining customers and rewarding them for their loyalty. </p> <p><img src="https://assets.econsultancy.com/images/0007/7540/pipe.jpeg" alt="pipeline" width="259" height="194"></p> <h3>In conclusion...</h3> <p>CRMs provide a wealth of features that can optimize the operation of your team.</p> <p>While these features may seem overwhelming at first, sales teams who can commit to learning will reap the benefits that come with organization and foresight. </p> <p><em>More CRM implementation tips:</em></p> <ul> <li> <a href="https://econsultancy.com/blog/64905-crm-implementation-tips-from-the-experts-part-one">CRM implementation tips from the experts: part one</a> </li> <li> <a href="https://econsultancy.com/blog/64910-crm-implementation-tips-from-the-experts-part-two">CRM implementation tips from the experts: part two</a> </li> </ul> tag:econsultancy.com,2008:BlogPost/67979 2016-06-23T14:27:54+01:00 2016-06-23T14:27:54+01:00 The five steps to an effective and repeatable sales process Shaun Haase <p dir="ltr">The most important thing to remember is to establish clearly defined goals early on to ensure that your sales team is on the same course of action as you.</p> <p dir="ltr">By developing and implementing a strategy that’s consistent across all of your customer segments and touchpoints, your sales team becomes a well-oiled machine that offers the same impeccable service and experience that is in line with your company’s bottom line.</p> <p dir="ltr">Here are five steps to help you get started:</p> <h3 dir="ltr">1. Segment your leads</h3> <p dir="ltr">Organizing your leads is the key to success. Business is done by people, and as such, there is enormous value in noting the unique attributes and preferences of each potential or existing customer.</p> <p dir="ltr">From the industry they’re in, to their communication preferences, remembering the specific needs of each lead helps establish your sales team as more personable, relatable and thoughtful.</p> <p dir="ltr">This level of <a href="https://econsultancy.com/blog/66576-why-make-it-personal-personalisation-vs-contextualisation/">personalization</a> can only be achieved by segmenting your customers, either based on their industry, opportunity or other variables.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/6380/segment.jpg" alt="" width="545" height="362"></p> <p dir="ltr">Lead segmentation can also help reduce the number of emails sent, increase the open rate for each message and help your sales team gain valuable insight into what does and doesn’t work.</p> <p dir="ltr">Sales teams will be able to cater to customers in a more personalized way, which can lead to higher conversion rates because they feel like a person is reaching out to them, not Mailchimp.</p> <h3 dir="ltr">2. Start with the full cycle in mind</h3> <p dir="ltr">Initiate the sales cycle with communication that’s warm and inviting.</p> <p dir="ltr">The first point of communication should bring awareness of your product to the customer; it’s certainly not the time for a hard sell, though the time for this will surely come.</p> <p dir="ltr">If you jump too early, you’ll be putting yourself at risk of alienating the potential customer even before they’ve had a chance to learn about what you have to offer. </p> <p dir="ltr">Use the first touchpoint to get to know the customer. When you better understand their desires and pain points, you’ll be able to craft a relevant message that speaks to their exact needs.</p> <p dir="ltr">More importantly, see this first step as part of a larger story that’s weaved together through multiple touchpoints.</p> <p dir="ltr">What is the key message you want to convey to this customer? Be brief, to the point and think carefully about a messaging tactic that will resonate with your target audience. </p> <p dir="ltr">You may also encounter customers who are familiar with your product and have already shortlisted you as a viable solution. Don’t be too pushy but do try to feel customers out.</p> <p dir="ltr">Give every customer the opportunity to take action with a simple call-to-action that empowers them to move forward if so desired. </p> <h3 dir="ltr">3. Utilize feedback to refine your pitch</h3> <p dir="ltr">Customer feedback can dramatically enhance the effectiveness of your messaging and communications.</p> <p dir="ltr">By analyzing email open and response rates from previous campaigns along with a customer sentiment audit, you’ll be able to uncover valuable insights on customer interest or lack thereof.</p> <p dir="ltr">If the messaging you’re using is not hitting your engagement targets, take the time to evaluate the issue and <a href="https://econsultancy.com/blog/64116-a-b-testing-software-recommendations-from-four-ecommerce-experts/">try A/B testing</a> different variations of your core message.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/6381/alphabet.jpg" alt="" width="750" height="472"></p> <p dir="ltr">You might even find that you need to expand your predefined customer segments to ensure that all customers are being ushered down the most effective sales path for them. </p> <p dir="ltr">Utilising existing feedback on your outreach is important when optimizing your sales strategy.</p> <p dir="ltr">You’ll quickly learn which types of messages and approaches work best on each group, and you’ll also be able to better identify which customer segments are proving to be the most valuable.</p> <p dir="ltr">By regularly monitoring and adjusting your communications, you’ll create a much more efficient and lucrative sales pipeline.</p> <h3 dir="ltr">4. Connect with your warmest leads</h3> <p dir="ltr">Once you get further along in your conversations, you’ll have a better sense of which leads are the most promising.</p> <p dir="ltr">It’s now time to connect personally with each of your warmest leads. Offer to connect over a phone call or in person.</p> <p dir="ltr">By doing so, you’ll be able to directly address any potential questions/concerns while creating a deeper connection with each lead.</p> <p dir="ltr">If you’re lucky enough to generate many warm leads and haven’t done so already, you need to be <a href="https://econsultancy.com/blog/64545-what-is-crm-and-why-do-you-need-it/">utilizing a CRM</a> to track and manage these relationships.</p> <p dir="ltr">A CRM becomes increasingly important as the sales process progresses so it’s best you implement one early on.</p> <p dir="ltr">The right CRM will ensure that you are maximizing the conversion potential of your warmest leads. </p> <h3 dir="ltr">5. Don’t be afraid to use incentives</h3> <p dir="ltr">Now that you’ve established rapport with potential customers, it’s time to close the deal. Start by sending a follow-up reminder with the key benefits and solutions of your product/service.</p> <p dir="ltr">At this point, your lead should have all pertinent information about your product/service so keep it short, simple and to the point.</p> <p dir="ltr">If they’re still on the fence, try presenting them with a limited-time promotion to give them an immediate incentive to convert right then and there.</p> <p dir="ltr">Rather than dwelling on the lost revenue from the promotion, consider the potential lifetime value that customers can provide.</p> <h3>In conclusion...</h3> <p dir="ltr">Creating a scalable and repeatable sales process is a relatively straightforward endeavor but the true challenge is remembering to continually adapt your processes to the needs of your customers.</p> <p dir="ltr">When you have a clearly defined process in place, it becomes much easier to scale your sales team and keeps them focused on what they do best: close deals.</p> tag:econsultancy.com,2008:BlogPost/67912 2016-06-08T11:58:37+01:00 2016-06-08T11:58:37+01:00 Five reasons your CRM isn't actually increasing sales Shaun Haase <p>On the other hand, a recent survey by Software Advice revealed that 74% of companies using the right <a href="https://econsultancy.com/blog/64545-what-is-crm-and-why-do-you-need-it/">CRM</a> for their business say that it has improved their access to customer data, therefore allowing them to improve lead conversion and ultimately increase sales.</p> <p>If your CRM is not working for you, here are five common reasons why:</p> <h3>1. No overarching strategy with relevant sales goal metrics</h3> <p>It’s critical that sales and marketing teams work closely together to set an overarching strategy with specific sales goals that can be tracked using a CRM, for example: lead conversions rates for specific sales pipelines.</p> <p>Often times, companies don’t have a clear strategy or a system for tracking metrics like these, instead using their CRM as a glorified contact management system.</p> <p><em>Stock photo of a pipeline</em></p> <p><img src="https://assets.econsultancy.com/images/0007/5818/pipeline.jpg" alt="" width="843" height="468"></p> <p>If you don’t currently have predefined goals and metrics, then you might be losing out on one of the key features of your CRM which should be providing a clear overview of your sales pipeline progress.</p> <p>In order to keep your business on the track to sales growth, make sure that you set aside time to establish a clear strategy, define which sales metrics will be relevant and have both marketing and sales teams meet regularly to track progress through your CRM. </p> <h3>2. Not utilizing CRMs effectively</h3> <p>According to a research report by BuyerZone, 91% of companies with more than 11 employees use CRM software and have great initial intentions for getting the most value out of them, yet after their teams utilize it for the first few months, usage wanes.</p> <p>Many times, sales teams stop using CRMs altogether as they find it tedious to have to constantly update contact information.</p> <p>Sales professionals often complain that inputting data into CRMs takes time away from pursuing opportunities. CRMs should be used to enable your sales teams, not hinder their productivity.</p> <p>If CRMs are a drain on your team’s time, reduce complexity by utilizing tools that make it easier to input data, or find a new CRM that provides automated data entry, better functionality and seamless integration with other enterprise software.</p> <h3>3. Too complicated &amp; too expensive to maintain</h3> <p>Companies often use the same CRM software that successful large enterprises use in order to be competitive.</p> <p>Unfortunately, these popular CRMs can be very difficult to integrate due to their complex design, and are therefore not ideal for every type and size of company.</p> <p>These CRMs often require a lot of money and time, since you must also hire third-party vendors to customize the system for specific business needs as well as train your teams to use them.</p> <p>If you use one of the more popular CRM systems out of the box, there’s a good chance it may have been configured incorrectly and it could be costing you both time and money as your teams will not be able to fully utilize it to its full capacity. </p> <p>CRM software should be simple to integrate and easy to use from the beginning.</p> <p>If your CRM is still giving you problems even after customizing it and your employees are constantly having to ask for assistance on how to do specific tasks, it may be time for you to seek out a much simpler CRM solution. </p> <h3>4. Using a stand-alone CRM</h3> <p>Stand-alone CRMs are a holdover from many years ago and are very inefficient at transferring disparate data from the different tools that businesses often use, such as <a href="https://econsultancy.com/reports/email-marketing-buyers-guide/">email marketing software</a> for managing outbound communications.</p> <p>A better solution – which many companies are using these days – is a fully integrated cloud-based CRM, as it presents a much more efficient way of integrating into the tools you regularly use.</p> <p>Six years ago, only 12% of businesses used cloud-based CRM while today this number has increased to 87% and continues to grow every day.</p> <p><em>Some clouds</em></p> <p><img src="https://assets.econsultancy.com/images/0007/5819/clouds.jpg" alt="" width="846" height="483"></p> <p>The benefits of fully integrated cloud-based CRMs are plentiful: they allow everyone on your team to easily access important information anywhere, transfer data from different programs and often automatically update data other sources.</p> <p>All of this then leads to a speedier workflow and always up-to-date sales and contact data. </p> <h3>5. Living with poor data quality</h3> <p>Data migration, integration and management are critical for a well-run CRM.</p> <p>If your data is not aligned correctly or you have information in the wrong place, then your sales team will lose out on potential leads with missed follow-up appointments or incorrect contact information.</p> <p>For this reason, it is important that someone regularly checks the data within your CRM system to remove duplicates, update contact information and standardize content.</p> <p>Data inaccuracy is one of the biggest problems with CRM systems, but at the same time is also one of the easiest to fix if time is dedicated to maintaining it on a regular basis. </p> <h3>In summary...</h3> <p>Here we’ve highlighted a few of the potential reasons why your CRM might not be helping increase your sales. If you suffer from any of these factors, it is time for you to take action now.</p> <p>Create a plan for improvement or find a CRM solution better tailored to your company’s needs.</p> <p>A CRM is a great tool for helping you increase sales but also one that must be continuously refreshed and utilized in the most appropriate manner to reap the greatest benefit.</p> tag:econsultancy.com,2008:BlogPost/67895 2016-06-01T11:44:43+01:00 2016-06-01T11:44:43+01:00 How Wish uses 'aggressive' automated email in ecommerce Ben Davis <h3>Day three: basket abandonment</h3> <p>Below is the second email I received (the first on day one was a welcome email and chiefly for email address verification). It points me towards an item I left in my basket.</p> <p>One slight problem with Wish's time sensitive offers is the fact that here is a product <a href="https://assets.econsultancy.com/images/0007/5259/instant_2.PNG">I had viewed at £8</a> when I used the app a few days ago. Now Wish is pushing it back to me at £9.</p> <p>Granted, both prices are fairly reasonable, but it does show a potential downside to the discount model.</p> <p>Elsewhere in the email, it's interesting that Wish has attached a YouTube haul video. The video shows a makeup haul, which isn't best suited for me.</p> <p>Wish knows my gender, it asked me during the signup process, but has likely added this video to all such emails, regardless of gender.</p> <p>The retailer may well be promoting its YouTube content here to re-emphasise its value proposition. The haul videos stress that the products are cheap but their quality is adequately good.</p> <p>For a new(ish) platform with a slightly unusual UX, <a href="https://econsultancy.com/blog/65722-18-highly-effective-examples-of-social-proof-in-ecommerce/">social proof</a> is important to tempt first-time users back into the app.</p> <p><img src="https://assets.econsultancy.com/images/0007/5482/Screen_Shot_2016-05-31_at_13.43.45.png" alt="wish email" width="450"></p> <h3>Day four: browsing follow-up</h3> <p>I had browsed a range of trainers on the Wish app, so was slightly surprised this follow-up email focused on sandals. Indeed, the showcased products seem to be mostly shoes.</p> <p>Despite this slight confusion in categories, I liked the format of the email, with simple product images that are all individually linked to product pages, or the option to see the full collection.</p> <p>Notice the email subject tackles the topic of 'creepiness' head on, telling me what I've been browsing. This is smart - recognising the elephant in the room means Wish mitigates any customer unease.</p> <p><img src="https://assets.econsultancy.com/images/0007/5483/Screen_Shot_2016-05-31_at_13.46.59.png" alt="wish email" width="450"></p> <h3>Day four: trending products &amp; recommendations</h3> <p>On day four Wish also sent me the email below, which I've split into two images.</p> <p>It's a classic bit of <a href="https://econsultancy.com/reports/email-census/">email marketing</a>. Some gender-specific products are surfaced (the wallets category), as are recommendations similar to my wishlist (where I had liked a watch strap) and links to other categories are provided.</p> <p>The footer promotes the Wish app, which by day four I had deleted.</p> <p>As far as I'm aware, there's no way to find out if a user has deleted an iOS app, but I can't rule out Wish having some kind of work-around here.</p> <p><img src="https://assets.econsultancy.com/images/0007/5500/Screen_Shot_2016-05-31_at_14.23.20.png" alt="email from wish" width="300">  <img src="https://assets.econsultancy.com/images/0007/5494/Screen_Shot_2016-05-31_at_14.23.42.png" alt="wish email" width="300"></p> <h3>Day six: more trending products and recommendations (effectively a non-open resend)</h3> <p>Another recommendation email next.</p> <p>Though I didn't engage with the first email, <a href="https://econsultancy.com/blog/63747-why-more-emails-at-christmas-almost-always-means-more-money/">studies have shown email resends to non-opens</a> to be a successful tactic, so Wish obviously sees the same with its testing.</p> <p>This isn't a resend per se, but the email layout and half of the content matches very closely to day four's email.</p> <p><img src="https://assets.econsultancy.com/images/0007/5503/Screen_Shot_2016-05-31_at_15.06.30.png" alt="wish email" width="300">  <img src="https://assets.econsultancy.com/images/0007/5502/Screen_Shot_2016-05-31_at_15.06.54.png" alt="wish email" width="300"></p> <h3>Day six: wishlist reminder</h3> <p>I had added a watch strap to my favourites and six days later Wish sent me the email below.</p> <p>The delay was smart, being time enough for me to have potentially bought the watch strap. Sending a reminder too soon may have put me off.</p> <p>The email subject line is impressive, personalised to the product I had favourited.</p> <p>If these <a href="https://econsultancy.com/blog/64878-45-words-to-avoid-in-your-email-marketing-subject-lines/">subject lines</a> are automated, there must have been extensive copywriting or <a href="https://econsultancy.com/blog/67745-15-examples-of-artificial-intelligence-in-marketing/">a machine learning algorithm</a> involved in the original setup.</p> <p><img src="https://assets.econsultancy.com/images/0007/5504/Screen_Shot_2016-05-31_at_15.13.54.png" alt="wish wishlist reminder" width="450"></p> <h3>Conclusion</h3> <p>Though I have called Wish's automated email 'aggressive' I don't think that's a bad thing. The retailer's whole strategy is about encouraging time in app as well as impulse buys.</p> <p>As we know from some studies, <a href="https://econsultancy.com/blog/62997-send-more-email-make-more-money">more email means more money</a>. </p> <p>It's an effective channel that, though it may serve to annoy the one-off customer, does much to encourage <a href="https://econsultancy.com/blog/64481-finding-your-best-customers-with-the-rfm-matrix">high-value customers</a> to purchase.</p> <p>From a marketing automation point of view, it's great to see a retailer investing heavily in this area given that many <a href="https://econsultancy.com/blog/67815-why-marketers-are-failing-to-make-the-most-of-automated-emails">marketers are failing to make the most of triggered emails</a>.</p> tag:econsultancy.com,2008:BlogPost/67815 2016-05-06T10:02:43+01:00 2016-05-06T10:02:43+01:00 Why marketers are failing to make the most of automated emails Nikki Gilliland <p>So why is email automation such a tricky tool to master? </p> <p>Here are some key findings from the report.</p> <h3>Pulling the trigger</h3> <p><a href="https://econsultancy.com/blog/65212-what-is-marketing-automation-and-why-do-you-need-it/">Automated emails</a> are triggered by consumer behaviour, but it seems a lot of companies feel comfortable focusing on just a few core actions.</p> <p>With 46% of automated emails being triggered by new customer sign-ups, the welcome email has long reigned supreme. However, it is certainly not the <a href="https://econsultancy.com/blog/63003-20-automated-emails-your-customers-won-t-delete/">only trigger</a> worth using.</p> <p>Thankfully, some organisations are slowly starting to catch on to other types of consumer behaviour.</p> <p>The below graph demonstrates how lapsed customers, abandoned baskets and content downloads are also being targeted.</p> <p><img src="https://assets.econsultancy.com/images/0007/4656/email_sign_ups.PNG" alt="" width="750" height="661"></p> <h3>Breaking the barrier</h3> <p>For those client-side, the biggest reason cited for letting automated emails fall by the wayside is not having the time to make it happen.</p> <p>Despite this seeming at odds with the very reasons for using automated emails in the first place - saving you the hassle of sending out multiple manual emails - a lack of resources does seem to be a big issue. </p> <p><img src="https://assets.econsultancy.com/images/0007/4658/company_barriers.PNG" alt="" width="750" height="739"></p> <p>Meanwhile, for agencies, low budgets and a lack of skills are called out as the biggest obstacles. </p> <p><img src="https://assets.econsultancy.com/images/0007/4657/agency_barriers.PNG" alt="" width="750" height="705"></p> <h3>Going automatic</h3> <p>So how can automated email be used to its full potential in future?</p> <p>Here are three ways companies can begin to reap the rewards of this widely underused marketing tool.</p> <h4>1. Be creative.</h4> <p>Whether it’s a birthday, social media plug, or a simple a thank you for buying – marketers need to expand the reasons they reach out to customers.</p> <p>Often, the more creative the trigger, the greater the customer engagement.</p> <p>With the likes of Ray Ban demonstrating the <a href="https://econsultancy.com/blog/67717-ray-ban-s-10-month-delay-in-sending-post-sales-email-isn-t-as-strange-as-it-seems/">success of the long-game</a>, it’s important to remember that there are no set rules to follow.</p> <h4>2. Mobile-optimise the customer journey.</h4> <p>With 46% of company marketers aiming to use automation to enable one-to-one communication with customers, being ‘mobile-first’ is key.</p> <p>With more than half of emails now being opened on a mobile device, it is not simply about how the email appears on a device, but how it can increase conversion rates.</p> <h4>3. Be customer-centric.</h4> <p>Finally, while technological innovation is important, consumer relevance should be the core reason for any automated email campaign.</p> <p>Whether the customer receives an email via an app or on desktop, if it’s not relevant, it’s not worth opening.</p> <p><img src="https://assets.econsultancy.com/images/0007/4659/email_innovation.PNG" alt="" width="750" height="610"></p> <p><strong>To find out more on this topic, you can download the full <a href="https://econsultancy.com/reports/email-census-2016/">Email Marketing Industry Census 2016</a>. </strong></p> tag:econsultancy.com,2008:BlogPost/67692 2016-04-05T01:00:00+01:00 2016-04-05T01:00:00+01:00 The best APAC digital marketing stats from March 2016 Ben Davis <h3>Facebook numbers in Southeast Asia</h3> <p style="font-weight: normal;">Facebook has 241m users in Southeast Asia and 94% of them use Facebook on mobile, according to the network's own internal data.</p> <p style="font-weight: normal;">Thais and Singaporeans use Facebook to messages businesses at nearly twice the monthly global average.</p> <p style="font-weight: normal;"><img src="https://assets.econsultancy.com/images/0007/3543/Screen_Shot_2016-04-03_at_21.56.18.png" alt="facebook users in se asia" width="615"></p> <p style="font-weight: normal;"><em>via<a href="https://www.facebook.com/business/news/Connecting-over-241-Million-People-in-Southeast-Asia-on-Facebook"> Facebook for Business</a>.</em></p> <h3>APAC ecommerce revenue outstripping USA and Europe</h3> <p>A <a href="https://www.forrester.com/report/Asia+Pacific+Online+Retail+Forecast+2015+To+2020/-/E-RES130701">report from Forrester</a> states that five markets in APAC (China, Japan, South Korea, India and Australia) already have combined ecommerce revenues surpassing US and Europe combined.</p> <p>The forecast suggests that the revenue from these five markets is set to double by 2020, from $733bn in 2015 to $1.4tn.</p> <h3>Australia: the internet = entertainment</h3> <p>More than half of Australians over 16 years old consider the internet as their main source of entertainment.</p> <p>Over 1,000 Australians were surveyed by Meltwater, reported by <a href="http://www.bandt.com.au/media/one-three-australians-turn-social-media-first-news-source">B&amp;T Magazine</a>, on their media consumption habits and use of digital technologies.</p> <p>Other findings include:</p> <ul> <li>35% of Australians go to Facebook or Twitter newsfeeds as a first stop for news.</li> <li>The over 65 demographic (perhaps traditionally viewed as laggards) are relying on online news just as much as print.</li> </ul> <h3>APAC warms to the internet of things</h3> <p>Indian and Chinese consumers are more enthusiastic about <a href="https://econsultancy.com/blog/67013-five-opportunities-for-marketers-using-the-internet-of-things/">connected devices</a> in the home than those in other international markets.</p> <p>The survey by Mindshare (11,000 respondents across 19 countries, reported by <a href="http://www.mumbrella.asia/2016/03/mindshare-survey-reveals-asian-attitudes-connected-future/">Mumbrella</a>) showed the proportion of those "very interested" from these two markets far exceeded the global average.</p> <p>APAC respondents in general were also interested in connected consumables, perhaps surprisingly even food (40%) and drink (38%).</p> <p>Despite this interest in connected devices, many were "concerned" about companies knowing how, when and how often they used their products (as high as 86% in India).</p> <p>Products already exist in the market showing how much of certain foodstuffs remain in your fridge.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">We just announced three new products, have a look! <a href="https://t.co/tLGTWt5yXr">https://t.co/tLGTWt5yXr</a> <a href="https://t.co/96biFOj71b">pic.twitter.com/96biFOj71b</a></p> — Smarter Applications (@Smarter_AM) <a href="https://twitter.com/Smarter_AM/status/684418328153190400">January 5, 2016</a> </blockquote> <h3>Australian's believe the display ad model is broken</h3> <p>The majority (66%) of marketers and media buyers in Australia surveyed in Econsultancy's <a href="https://www.econsultancy.com/reports/people-based-advertising/">People-Based Advertising report</a> agree or strongly agree that the current model for display advertising is broken (based on 350 respondents).</p> <p>What's more, only 12% actively disagree that it is, with 72% of respondents fearing that ad blocking could put the current model in jeopardy.</p> <p><em>Q: Agree of disagree: 'The current model for display advertising is broken'</em></p> <p><img src="https://assets.econsultancy.com/images/0007/3181/Screen_Shot_2016-03-21_at_15.58.20.png" alt="australian view ad model" width="482" height="400"></p> <h3>Women influence 90% of car buys in Singapore</h3> <p>Dentsu's SenseAsia revealed data that suggests women are more thorough in the research phase, averaging a total of 33 channels in this phase.</p> <p>Reported by <a href="http://www.warc.com/Content/News/N36493_Women_influence_9025_of_car_buys.content?PUB=Warc%20News&amp;CID=N36493&amp;ID=eec04c06-59bc-4b95-b290-4c19629c9ef5&amp;q=&amp;qr=">Warc</a>, women are also more likely to be influenced by their research than men, who often have pre-conceived ideas in the auto market.</p> <h3>China ad growth halved</h3> <p>Net advertising revenue growth slowed from 16% in 2014 to 7% in 2015, according to IHS Advertising (reported by <a href="https://econsultancy.com/admin/blog_posts/67692-apac-stats/edit/%20net%20advertising%20revenue%20growth%20slowed%20from%2016%20percent%20in%202014%20to%207%20percent%20in%202015,%20according%20to%20the%20IHS%20Advertising%20report.%20Reaching%20just%20375.2%20billion%20Chinese%20yuan%20(%2464.1%20billion),%20the%20industry%20fell%20to%20single-digit%20growth%20for%20the%20first%20time%20since%202010.">CFO Innovation</a>).</p> <p>At a size of $64.1bn in 2015, the industry saw single-digit growth for the first time since 2010.</p> <h3> <a href="https://econsultancy.com/blog/67674-what-are-first-second-and-third-party-data">First-, second- and third- party data</a> targeting in Australia</h3> <p>41% of Australian respondents (marketers and media buyers) in our People Based Advertising report were familiar with known user targeting through functionality such as Facebook's Custom Audiences.</p> <p>When it comes to use of different data types, understandably, first-party data was used most commonly for people-based targeting.</p> <p>More than a quarter (27%) of respondents used real-time intent data to target media effectively.</p> <p><em>Q: Do you purchase advertising using any of the following targeting mechanisms?</em></p> <p><img src="https://assets.econsultancy.com/images/0007/3182/Screen_Shot_2016-03-21_at_15.57.56.png" alt="data used for advertising" width="615"></p> <h3>Marketing automation high up the priority list in South-East Asia...</h3> <p>In the Econsultancy report, <a href="https://econsultancy.com/reports/state-of-email-and-marketing-automation-in-south-east-asia">State of Email and Marketing Automation in South-East Asia</a>, respondents (more than 500 from clientside and agency) revealed their priorities for 2016.</p> <p>Marketing automation was prominent in their thoughts, behind only content and social.</p> <p>Email marketing showed itself to be evergreen, a priority above PPC, display, mobile and SEO for this sample.</p> <p><img src="https://assets.econsultancy.com/images/0007/2408/1.PNG" alt="marketing priorities in se asia" width="470" height="380"></p> <h3>..and in Australia (but it isn't quite understood)</h3> <p>Another <a href="https://econsultancy.com/reports/marketing-automation-buyers-guide">marketing automation</a> survey, by Squiz and <a href="http://www.bandt.com.au/marketing/marketers-investing-70-marketing-automation-software-2015">reported in B&amp;T</a>, found respondents were investing 70% more in marketing automation in 2016 than 2015.</p> <p>654 marketing and IT professionals were surveyed, with the majority coming from Australia and New Zealand.</p> tag:econsultancy.com,2008:BlogPost/67675 2016-03-28T13:00:00+01:00 2016-03-28T13:00:00+01:00 Six online advertising tactics set to rise Stephanie Carr <h3>Marketer priorities in a challenging ad tech landscape</h3> <p>2015 brought us programmatic retargeting, which results in great engagement but requires <a href="https://econsultancy.com/blog/67659-three-things-that-show-the-scale-of-the-ad-fraud-challenge/">viewability to be closely monitored</a>. Coupled with the rise of ad-blockers, it’s arguably getting harder to get in front of the people that matter.</p> <p>This is the challenging ad-tech landscape we find ourselves in.</p> <p>We know that priorities have shifted over the last 12 months as digital marketers strive to use ‘tiny data’ to better understand their audiences on an individual level. According to Marin research, the top priorities for 2016 for UK-based digital marketing managers are:</p> <ol> <li>Creating campaigns based on deeper understanding of audiences (up one place from 2014).</li> <li>Effective scaling of campaigns across social media channels (new entry in the top five).</li> <li>Cross-channel digital marketing (up two places from last year).</li> <li>Better integration of online and offline marketing efforts (new entry in the top five).</li> <li>Better integration of digital marketing disciplines (down one place).</li> </ol> <p>The question all marketers should ask themselves is what will the use of granular data mean for the consumer? In the constantly evolving advertising landscape, what are the platforms which are going to have an impact on marketers this year and how can they work together?</p> <h3>Booming ad tactics?</h3> <p><strong>1. Native ads</strong></p> <p>Ads which look and feel like editorial content have been around for a few years now. However, with Bing recently announcing it will also host content of this type within its platform the use of ads which offer a more seamless experience is sure to increase.</p> <p><img src="https://assets.econsultancy.com/images/0003/9562/Advetorial_MOJO_FORD.gb5_.jpg" alt="native ad" width="450"></p> <p><strong>2. Personal Digital Assistants</strong></p> <p>From Cortana to Siri, operating systems are becoming more ‘intelligent’.</p> <p>As consumers increasingly rely on their digital personal assistants, these could be a great place for brands to reach potential customers. We have already started to see this happen <a href="https://econsultancy.com/blog/67551-private-messaging-is-social-s-next-big-ad-frontier/">within instant message applications</a>.</p> <p><strong>3. Virtual reality and the IoT</strong></p> <p>A fridge which knows you need to buy more milk is very impressive. But <a href="https://econsultancy.com/blog/64143-why-is-the-internet-of-things-so-compelling">a fridge which knows which brand</a> you normally buy and which are currently on offer at the supermarket has the power to revolutionise the way everyone shops.</p> <p>The internet of things might not quite get there in 2016 but it’s certainly coming and brands need to be ready to make the most of it.</p> <p><img src="https://assets.econsultancy.com/images/0007/0560/Screen_Shot_2016-01-08_at_09.25.39.png" alt="iot fridge" width="450"></p> <p><strong>4. Intent data</strong></p> <p>By using product feeds, Shopping campaigns (Google &amp; Bing) and Dynamic Product Ads, advertisers are able to attract the attention of consumers by serving ads that relates to their intent to buy.</p> <p>Couple this intent with the potential addition of highly-engaging video within search results and the SEM space is set to get a whole new lease of life in 2016.   </p> <p><strong>5. Moment marketing</strong></p> <p>It’s vital to reach your target audience at the right time – the specific moments when engagement levels are high. This can be achieved by instantly tailoring your online advertising to what’s going on in the offline world such as the weather or the stock market.</p> <p><a href="http://www2.deloitte.com/uk/en/pages/technology/articles/warc.html">Warc</a> and Deloitte believe marketing based on contextual factors will be the biggest trend this year. In fact, the first ever <a href="http://bit.ly/1IEAb1Z">detailed analysis</a> of UK spend on contextual data strategies from <a href="http://www.tvty.tv/">TVTY </a>found 23% of digital budgets are spent on moment marketing with over two thirds of brands planning to increase spend.</p> <p><strong>6. Mirrored campaigns</strong></p> <p>Facebook’s look-a-like approach and <a href="https://econsultancy.com/blog/66979-google-customer-match-what-does-it-mean-for-marketers">Google Customer Match</a> prove the willingness of brands to use their first party data at scale. Now, brands can reach new audiences who share similar interests and it’s easier to replicate one campaign across multiple channels.</p> <p>I predict that this approach goes further in 2016 to encompass display strategies.</p> <h3>Personalized journeys</h3> <p>Digital marketers and CMOs have an opportunity to bring these new approaches together and supercharge the influence of one campaign across an individual’s customer journey to deliver a personalised experience which is easy to engage with.</p> <p>As soon as the value of first party customer data is better realised, the better for marketing efforts as a whole. </p> tag:econsultancy.com,2008:BlogPost/67670 2016-03-24T13:41:49+00:00 2016-03-24T13:41:49+00:00 Two-thirds of Australian marketers say current display ads model is broken Jack Simpson <p>Not only that, but almost three-quarters (72%) of respondents fear ad blocking could make the current model obsolete.  </p> <p><strong>Q: Agree of disagree: 'The current model for display advertising is broken'</strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0007/3181/Screen_Shot_2016-03-21_at_15.58.20.png" alt="display ad model broken" width="482" height="400"></strong></p> <p>It is hardly surprising that <a href="https://econsultancy.com/blog/67631-here-s-why-the-uk-culture-secretary-is-clueless-on-ad-blocking">ad blocking</a> has become so prevalent. On many websites the ads have a hugely negative impact on the user experience: they’re intrusive, they slow down page loads and can actually eat up data in the case of mobile. </p> <p>Clearly something has to change, and our report argues that people-based targeting is the key to avoiding future disaster. </p> <h3>The rise of people-based targeting</h3> <p>Otherwise known as addressable media, people-based targeting refers to any approach that targets a known individual. </p> <p>Brands use their first-party data to identify the real people in the advertising ecosystem and use data onboarding technology to selectively share that data with publishers and reach their audience. </p> <p>This is the next natural step for programmatic advertising, enabling advertisers to deliver ads that are more relevant to the user and therefore less intrusive and more valuable. </p> <p>The concept of people-based targeting is not new to marketers. Many were introduced to a light version of addressable media through the Custom Audiences product from Facebook. Forty-one percent of those we surveyed say they know the concept well, while 34% say they have a general idea of what it is. </p> <p>Marketers who have deployed some form of people-based marketing are bullish on its future. They foresee a scenario where fewer, more valuable advertisements do a better job of reaching true, in-market consumers; two-thirds of brands agree that “…display will be replaced by relevant, data-driven advertising.”</p> <h3>Data priorities: first-party wins</h3> <p>Data comes from all kinds of sources these days, and we have spoken in the past about <a href="https://econsultancy.com/blog/67086-three-ways-first-party-data-could-help-increase-online-advertiser-value">the value of first-party data</a> vs. second and third. </p> <p>It seems marketers are drawing data from all three sources to power their advertising purchases, and also prioritizing them in their natural order. </p> <p>61% of our respondents say they use first-party data to target ads, 56% use second-party data and 42% use third-party data.</p> <p><strong>Q: Do you purchase advertising using any of the following targeting mechanisms?</strong></p> <p><img src="https://assets.econsultancy.com/images/0007/3182/Screen_Shot_2016-03-21_at_15.57.56.png" alt="ad targeting data types" width="621" height="372"></p> <h3>Privacy issues the main barrier for people-based targeting</h3> <p>It is hardly surprising given the number of high-profile privacy breach cases we’ve seen in the media over the last couple of years, but privacy/data leakage issues are the number one concern for those who aren’t increasing their people-based targeting spend. </p> <p>43% of respondents cited this as their main concern, while 33% cited complexity issues and 31% felt the potential ROI doesn’t warrant an increase. </p> <p>That said, only 23% of those already using people-based targeting have no plans to increase their investment in the area, and of those only 3% are cutting their spend. </p> <p><em><a href="https://www.econsultancy.com/reports/people-based-advertising/">Download the full report</a> today for lots more insight about people-based targeting.</em></p>