tag:econsultancy.com,2008:/topics/multichannel-marketing Latest Multichannel Marketing content from Econsultancy 2017-04-26T15:30:00+01:00 tag:econsultancy.com,2008:BlogPost/69038 2017-04-26T15:30:00+01:00 2017-04-26T15:30:00+01:00 Shea Moisture's customer backlash was caused by poor brand management, not bad advertising Patricio Robles <h4>The backstory</h4> <p>Shea Moisture was founded by Liberians Nyema Tubman and Richelieu Dennis, who came to the US as refugees. They built a business reportedly valued at $700m by developing natural beauty products that cater to a market historically underserved by large beauty brands – women of color.</p> <p>But with outside investment from Bain Capital and skyrocketing consumer interest in natural beauty products, Shea Moisture's parent company Sundial Brands is betting that there is a bigger market for Shea Moisture's products.</p> <p>With that in mind, the company recently unveiled a 60-second ad developed by agency VaynerMedia as part of its #EverybodyGetsLove marketing campaign. The ad features a black woman, but it also features a blonde woman and two redheads. That did not sit well with some Shea Moisture customers who felt that the ad was a sign the company is moving away from the market segment that made it what it is today.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">SheaMoisture is CANCELLED <a href="https://t.co/T4Dru1JgAq">pic.twitter.com/T4Dru1JgAq</a></p> — NANA JIBRIL(@girlswithtoys) <a href="https://twitter.com/girlswithtoys/status/856563772223365122">April 24, 2017</a> </blockquote> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Black women have supported and gave free press to Shea Moisture for YEARS. And then they have a "hair hate" commercial with white women?</p> — no. (@DatGirl_ICEY) <a href="https://twitter.com/DatGirl_ICEY/status/856569496508747777">April 24, 2017</a> </blockquote> <p>On Facebook, the company's Page has been inundated with more than 7,000 one-star reviews.</p> <p><img src="https://assets.econsultancy.com/images/0008/5738/shea.png" alt="" width="774" height="531"></p> <p>The backlash was fast and big enough that the company quickly pulled its ad and Richelieu Dennis, Shea Moisture's founder and the CEO of Sundial Brands, took to social media <a href="https://www.facebook.com/SheaMoisture/photos/a.108636299188014.8145.108628512522126/1495966387121658/">to apologize</a>. "Wow, okay – so guys, listen, we really f-ed this one up," he wrote. "Please know that our intention was not – and would never be – to disrespect our community, and as such, we are pulling this piece immediately because it does not represent what we intended to communicate."</p> <p>He further stated, "While this campaign included several different videos showing different ethnicities and hair types to demonstrate the breadth and depth of each individual’s hair journey, we must absolutely ensure moving forward that our community is well-represented in each one so that the women who have led this movement never feel that their hair journey is minimized in any way."</p> <h4>When marketing mistakes aren't marketing mistakes</h4> <p>While the media coverage of the backlash caused by Shea Moisture's ad largely focuses on the notion that the company made an advertising mistake, this is really a brand management mistake because the truth of the matter is that Shea Moisture is a company that was probably going to have a hard time extending its brand without alienating the customers in its core segment.</p> <p>Strong brands that focus on underserved market segments risk upsetting their customers when trying to expand beyond those segments or to "go mainstream" because the customers in those segments feel strongly about the brands. </p> <p>In Shea Moisture's case, the segment it built its brand serving – women of color – know Shea Moisture as a company that for years has focused on their needs when other beauty brands didn't. That gives them a stronger-than-usual level of perceived investment and ownership in the brand.</p> <p>This can be a powerful asset, and it's one of the reasons there are riches in niches. But with the wrong strategy, this asset can become a liability because loyal customers, when they feel slighted or abandoned, are more likely to speak out. Unfortunately for Shea Moisture, its parent company, Sundial Brands, appears to have made a major brand management faux pas that caused just that to happen.</p> <p><a href="http://www.nbcnews.com/news/nbcblk/shea-moisture-ad-falls-flat-after-backlash-n750421">According to</a> CEO Richelieu Dennis, the decision to extend Shea Moisture into new market segments was based on the notion that "we have to grow the business." He elaborated...</p> <blockquote> <p>Brands that didn't service women of color for decades are all of the sudden creating campaigns for them to go after that because of the growth they've seen come from us. The competition that we now see, puts businesses like ours at risk.</p> </blockquote> <p>But it's not clear to this author that trying to extend the Shea Moisture brand to market segments already dominated by the very newcomers he speaks of represents a wise growth strategy because this type of brand extension is very difficult and actually risks brand dilution.</p> <p>In my opinion, a better strategy would have been for Shea Moisture to double down on the market segment that it built its success on by playing to its strengths, which include brand loyalty and a reputation as a pioneer, rather than intentionally trying to bring the Shea Moisture brand to segments that are already saturated by bigger companies that are hoping to make inroads in Shea Moisture's segment.</p> <p>If Sundial Brands truly believed there are opportunities in other market segments, it should have explored launching one or more new brands for the effort. While doing that would not be without its own challenges – building a new brand is never easy or cheap – clearly the company did not fully grasp how risky the attempted extension of the Shea Moisture brand to new customer segments would be.</p> <p>Risking customer segments in which you have a strong position for new, competitive segments is usually not a pillar of sensible brand management. </p> <h4>It's too easy to blame advertising</h4> <p>At the end of the day, had Shea Moisture better managed its brand, it never would have produced a backlash-inducing ad in the first place.</p> <p>So while many are focusing on the company's ad, it's important for brands to remember that good advertising can't fix bad brand management, and advertising shouldn't be blamed for consumer backlash when poor brand management all but ensured that advertising couldn't be good in the first place.</p> tag:econsultancy.com,2008:Report/3008 2017-04-21T12:55:00+01:00 2017-04-21T12:55:00+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 (in addition to two sector-specific reports, B2B and Healthcare &amp; Pharma) 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 available under the following areas:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a> </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></li> <li><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></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/69009 2017-04-20T11:31:51+01:00 2017-04-20T11:31:51+01:00 Can Wells Fargo's new brand platform help it restore consumer trust? Patricio Robles <p>Wells Fargo recently revealed that new checking account openings have dropped by 43% year-on-year and new credit card applications have plunged by an even greater amount – 55%.</p> <p>According to some observers, dealing with the fallout from this scandal represents perhaps the biggest challenge the bank has faced since it was founded in 1852. Ironically, the scandal could have been avoided if the company had heeded the advice of its largest shareholder, Warren Buffett. The legendary investor famously once stated, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."</p> <p>Now faced with the task of rebuilding its reputation, Wells Fargo <a href="https://stories.wf.com/new-brand-platform-wells-fargo-building-better-company-every-day/">has unveiled</a> a new brand platform dubbed Building Better Every Day.</p> <p>According to Jamie Moldafsky, Wells Fargo's CMO, "Our research clearly shows our customers are ready to hear a different message from us, and the 'Building Better Every Day' platform behind this advertising came directly from the research results. In addition to showing our customers how we are building a better bank – fixing things, and making them right – this effort is focused on how we are helping customers achieve their financial goals."</p> <p>The Building Better Every Day platform will rely on marketing across virtually all channels, including digital, television, print, radio and billboard. It aims to highlight how Wells Fargo is helping customers through "customer-centric" technological innovation, guidance and personalized service, security and community involvement.</p> <p><iframe src="https://www.youtube.com/embed/WJGAO63-IKs?wmode=transparent" width="560" height="315"></iframe></p> <p>Phil Wang, a marketing manager who was involved in the platform's development, says that the ads will focus a lot on interactions between Wells Fargo and its customers. "Team members are front and center in these spots, and portrayed as helping customers in a way that's in keeping with our vision and values."</p> <p>To hammer home the bank's commitment to the diverse communities it has a presence in, Wells Fargo is even creating ads for specific audiences in other languages, including Mandarin, Cantonese and Spanish.</p> <h4>All of this sounds like a textbook plan from a marketing perspective, but will Wells Fargo's new brand platform really heal the damage caused by its scandal?</h4> <p>There are reasons to be skeptical because not only was the scandal itself really, really ugly in nature, the timing couldn't have been worse for the banking behemoth.</p> <p>First, big banks are among consumers' least favorite institutions today thanks in large part to the financial crisis of 2008, which was widely blamed on out-of-control financial institutions. While Wells Fargo had the most pristine reputation of any big bank following the crisis, having emerged from the Great Recession largely unscathed, the unauthorized account scandal plays right into Wall Street critics' argument that big banks are out of control and simply can't be trusted. </p> <p>Secondly, and perhaps more importantly, banks find themselves under attack from fintech startups that are attempting <a href="https://econsultancy.com/blog/68159-five-ways-fintech-upstarts-are-disrupting-established-financial-institutions/">to disrupt</a> their business models. From consumer, business and mortgage lending to brokerage services and everything in between, many of the financial services that consumers used to obtain from the bank where they kept their checking and savings accounts are increasingly acquired through standalone non-bank service providers in an unbundled fashion. By some estimates, this <a href="https://econsultancy.com/blog/68981-could-established-financial-services-firms-lose-a-quarter-of-their-revenue-to-fintechs/">could soon cost established financial institutions a quarter of their revenue</a>.</p> <p>In fact, that Wells Fargo employees were opening unauthorized accounts to meet aggressive sales quotas hints that it is increasingly difficult for banks to successfully cross-sell to their customers <a href="https://econsultancy.com/blog/68334-wells-fargo-scandal-shows-why-banks-are-vulnerable-to-fintech-startups/">in the age of unbundling</a>. </p> <p>Unfortunately for Wells Fargo, the damage caused by the actions of thousands of its employees probably won't be undone with a new brand platform and an aggressive and expensive marketing campaign. While it's not too soon for the bank to start employing marketing in an effort to re-engage consumers, ultimately Wells Fargo will probably have to accept that the old Buffett nugget of wisdom is pretty accurate.</p> tag:econsultancy.com,2008:BlogPost/68991 2017-04-19T01:00:00+01:00 2017-04-19T01:00:00+01:00 Three reasons why brands should improve their cross-channel marketing Jeff Rajeck <p>When asked whether their organisations 'could effectively deliver cross-channel marketing', fewer than one in ten (6%) brand marketers indicated that they could to any great extent.</p> <p><img src="https://assets.econsultancy.com/images/0008/5420/a.png" alt="" width="800" height="570"></p> <p>Yet in the same report, marketers also stated that brands should endeavour to improve their cross-channel marketing and gave three good reasons why.</p> <h4>1) To increase conversions</h4> <p>Consistent, well-orchestrated messaging across channels is always worthwhile - doing so produces a better customer experience. Cross-channel marketing also, according to <a href="https://www.nngroup.com/articles/omnichannel-consistency/">a recent Nielsen Norman Group report</a>, builds user confidence, sets correct expectations, and earns users' trust.</p> <p>While desirable, improving the customer experience is not an end unto itself, though. For a marketing campaign to be successful, it needs to help the business as well.</p> <p>When asked to rate the effect cross-channel marketing had on their business, more than three in four (77%) client side marketers indicated that cross-channel marketing has a 'major impact' on 'increasing conversions'.</p> <p><img src="https://assets.econsultancy.com/images/0008/5421/1.png" alt="" width="638" height="474"></p> <p>Additionally, three in four (75%) use 'sales / revenue' figures to measure effectiveness indicating that their goals are in line with the business. That is, marketers use cross-channel marketing to increase conversions which, in turn, boosts top-line performance.</p> <p>One example of using cross-channel marketing to improve conversions is by retargeting website visitors with relevant advertising.  A consumer may see a product initially on the website but it takes a reminder via display advertising to turn the browser into a customer.</p> <h4>2) To enhance advocacy</h4> <p>Interestingly, survey respondents also indicated that they use cross-channel marketing for business objectives which are much more difficult to measure than revenue. Namely, more than half (57%) of company respondents indicated that cross-channel marketing has a major impact on 'enhancing advocacy' as well.  </p> <p><img src="https://assets.econsultancy.com/images/0008/5422/2.png" alt="" width="626" height="477"></p> <p>While it is more difficult to directly associate advocacy to business growth, industry thought-leaders feel that advocacy may be equally, if not more, important to the business than conversions.</p> <p>According to management consultancy Bain &amp; Co, <a href="http://www.bain.com/consulting-services/customer-strategy-and-marketing/customer-loyalty.aspx">only one in nine companies achieve sustainable profitable growth</a> and successful companies have twice the level of customer advocacy as their competitors.  If cross-channel marketing can increase word-of-mouth exposure, then it is a powerful tool, indeed.</p> <p>Using cross-channel marketing to enhance advocacy may be as simple as including social media icons on a website or emails or be as sophisticated as asking happy customers to leave a review on a third-party, industry-specific site.</p> <h4>3) To improve customer retention</h4> <p>Acquiring new customers and having them advocate your product or services is great, but ideally brands would like each new customer to be a loyal, repeat customer.</p> <p>The reason for this is that, again <a href="http://hbswk.hbs.edu/archive/1590.html">according to Harvard Business Schoo</a>l, a "5% increase in customer retention produces more than a 25% increase in profit". And, <a href="http://www.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for-entrepreneurs/#602fa51717b0">in another study</a>, Gartner found that "80% of a company’s future revenue will come from just 20% of existing customers."</p> <p>So, it was encouraging to see that more than half (54%) of marketers responding to our survey felt that cross-channel marketing has a 'major impact' on customer retention as well.</p> <p><img src="https://assets.econsultancy.com/images/0008/5423/3.png" alt="" width="646" height="481"></p> <p>Abandoned cart emails are perhaps the most common way brands use multiple channels to improve retention but many marketers also use custom audiences on Google and Facebook to advertise to their existing customer base through search and social advertising.</p> <h4>So...</h4> <p>Cross-channel marketing is not easy, yet brands who do it well will enjoy improved conversion rates, increased advocacy, and more customer retention.</p> <p>They will also be head and shoulders above their peers which is always a worthwhile, if difficult-to-measure, goal!</p> tag:econsultancy.com,2008:BlogPost/68983 2017-04-11T13:05:00+01:00 2017-04-11T13:05:00+01:00 You're (still) not tracking CPA properly and here’s why Depesh Mandalia <p>Every business for decades has struggled with two common things: which channels to focus marketing spend on and how much return every dollar spent returns. This isn’t as simple a question as it may initially look.</p> <p>Marketing channels have evolved hugely since television, radio and print ads were key ways to reach a mainstream audience. Despite the advancement in tracking technology and ad platforms, the question of how best to utilise each marketing dollar remains a challenge, even for the most advanced marketing operations and platforms (despite what they tell you) and here’s why.</p> <h4>Scenario 1 - a customer sees an ad in a single channel and purchases there and then</h4> <p><strong>CPA challenge:</strong> ensuring there is tracking in place, which for digital is usually in the form of digital analytics and for offline is primarily in the form of promotion code.</p> <p>How often does this scenario occur? There will be a good percentage of your acquisitions that only ever see your one ad on one platform or through a single medium and decide to buy all within the same ‘session’. For clarity we define a session here as a stream of events all happening one after the other.</p> <p>For simplicity I'm focussing on a visit to a website as the journey to complete a transaction (as opposed to a shop visit or app download via an app store). So:</p> <ol> <li>Customer sees ad</li> <li>Customer clicks/responds to ad</li> <li>Customer visits website and adds item to cart</li> <li>Customer buys item</li> </ol> <p>In this scenario, the customer does this without a break to browse other sites or coming back later. For a business with limited brand and product awareness, it is less likely that someone will see an ad for the first time, click <em>and</em> buy in one go.</p> <p>Of course, we marketers would love to think our ads are spot on <em>and</em> the target audience have been reached in one hit <em>and</em> that audience is in the mindset to buy <em>and</em> they visit your website <em>and</em> buy without even thinking about other important things in their day like what's for dinner or the latest cat gif on Facebook.</p> <p>There are also factors around trust which affect consumer behaviour - trusting how legit the company and website is, whether the product quality can be trusted, whether the product price is going to be the best you can get etc.</p> <p>What kind of company has enough <a href="https://econsultancy.com/blog/66013-brand-activation-and-its-role-in-driving-consumer-engagement-and-awareness/">brand awareness</a> and product range association that seeing a single ad will prompt you to both trust the business and purchase in one go? Amazon comes to mind as a company that can do this, as may other well established businesses, where the consumer is fully trusting of the brand and broadly aware of the product range. But how quickly do you need to increase sales? And how long have Amazon taken to establish themselves?</p> <p>Trusting that a company like Amazon aren't going to defraud you, are going to deliver your product, and are going to deliver a known quality - these are questions which for most people are answered on the Amazon site or through strong brand association. You, the smaller brand, simply can't match that.</p> <p>Chances are that if your data suggests that a given transaction occurred from the first ad the customer saw in the same session, there's something else at play. Let's look at scenario 2.</p> <h4>Scenario 2 - a customer sees an ad, doesn’t interact, but comes back later to buy from you via the website directly <em>or</em> via another marketing channel.</h4> <p><strong>CPA challenge:</strong> tracking the <a href="https://econsultancy.com/reports/the-state-of-marketing-attribution/">attribution</a> of the source channel due to the lack of connection to the final conversion channel. </p> <p>This is a very common (if not the most common) scenario and essentially how brand-led campaigns make their mark by creating an uplift on trackable channels. In this scenario a customer will see an ad, for example on TV, outdoor display, a leaflet, print ad or even digitally such as Facebook or Youtube as follows:</p> <ol> <li>Customer sees ad</li> <li>Customer doesn’t interact with ad</li> <li>Customer visits website directly at a later time/date and adds item to cart</li> <li>Customer buys item. Ka-ching! </li> </ol> <p>If you’ve ever run or been involved in a brand campaign you’ll know what a struggle it can be to truly measure the impact of the campaign on bottom line numbers. As a performance marketer you’ll know how fluffy ‘brand awareness’ can seem as a metric.</p> <p>To fully measure brand impact requires many more tools such as a brand impact test which measures trackable channel performance with and without the brand campaign, baselining your organic/non-paid channels to measure uplift and things like <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">paid search</a> brand keyword uplift in particular.</p> <p>That being said, not every 'brand campaign' is big budget, massive exposure stuff. Every supermarket carrier bag shows branding at play. Every time you read a newspaper with the logo facing outward branding is at play. Branding plays a big part in our everyday interactions with companies, whether we notice it or not. And as a marketer, the impact of brand awareness is often neglected when calculating the ROI of your dollar spend.</p> <p>If you’ve scaled a business, you’ll know the importance brand plays in creating the foundation for sustainable growth. Sustainable growth is that which doesn’t rely on any single marketing channel (eg Facebook ads) and has a good blend of non-paid acquisition acquisition channels.</p> <p>Scaling a business solely focussed on the hard metrics of spend, sales and CPA will hide the subliminal impact your marketing is having, like how <a href="https://www.simplypsychology.org/pavlov.html">Pavlov had his dogs salivating</a> at the sound of a bell, or how those that have dined there, have an instinctive, <a href="https://www.psychologytoday.com/blog/you-illuminated/201108/7-reasons-we-cant-turn-down-fast-food">uncontrollable reaction to seeing the Golden Arches</a> through the release of dopamine.</p> <p>Find me a direct response ad that can release dopamine better than a well placed brand campaign. Are you tracking the DU (Dopamine Uplift) of your marketing campaigns? Surely this will trim your CPA by a percentage or two, yet we're often having to make budgeting decisions based on the reaction of the rational brain when neuroscience studies confirm the unconscious, deep thinking part of your brain as being a key driver to decision making, including what and where we buy.</p> <p>The brand funnel is about creating awareness in defining your <a href="https://www.startwithwhy.com/LearnYourWhy.aspx">‘who’ and ‘why’</a> - who you are and who you are relevant is what creates meaning and connection to your target audience. Too often, businesses focus on what they do, completely bypassing the customer need. This is a typical sales-led approach to growth and not a customer-centric view.</p> <p>It is the channel CPA-centric view that drives marketers and businesses to focus heavily on what they do and this isn't what your target audience will primarily care about. Give them a reason to not just be interested, or to like you, but to love you as a brand and watch those CPAs fall. </p> <h4>Branding 101</h4> <p>Below is a good illustration of the brand journey and impact on your acquisition funnel - moving from a wide audience, some of which are not your target consumer, and funneling those that are toward your business.</p> <p>As a business, if your audience is everyone, then whilst your product may well cater for every single person you can market to, until you create relevance for that person you’ll struggle to help them determine how your product improves or complements their life. This is the role of brand marketing, to sift out non-consumers and attract potential consumers from a wide funnel of prospects.</p> <p>The ‘indifference’ stage noted in the diagram refers to the fact these people have no positive or negative opinion on the business.</p> <p><img src="https://assets.econsultancy.com/images/0008/5367/1.jpg" alt="brand funnel" width="400" height="295"> </p> <p><em>Via <a href="https://www.linkedin.com/pulse/demystifying-brand-funnel-sean-kelley">Sean Kelly on LinkedIn</a></em> </p> <p>The relevance of this user journey scenario is this: whilst you may measure and try to improve acquisitions that come through to the website or through brand searches, do you really know what the first interaction for that customer was? If not, then deciding where to place that next dollar is not going to be entirely fact or numeric based.</p> <p>As a Chief Marketing Officer your growth decisions need to rely on a variety of datasets to analyse impact, performance and future actions.  </p> <h4>Using multi-data points for indirect attribution analysis</h4> <p>An important and often used piece of attribution analysis is a question asked to customers after the point of purchase: "how did you hear about your us?".</p> <p>Don't underestimate the importance of this simple question. Although we have the ability online to track the channel from which a visitor landed on a website (eg search engine, facebook, youtube, affiliate etc through web analytics), this question gives us a valuable first-touch data-source for channels which we can’t track so well such as TV and print media.</p> <p>In the case of ecommerce companies, many rely on promotion codes in order to track the marketing source but in this scenario, where a customer has seen an ad in one source and purchased via another source, you’ve lost the originator marketing channel.</p> <p>For example if you distribute leaflets and a customer sees one, then goes online and purchases through an affiliate code, you have no concept of the performance of the leaflet and may make the incorrect decision to stop distribution of inserts due to low uptake. </p> <p>At toucanBox we use a post-transaction survey to ask customers how they heard about us at the point at which we are front of mind. The reason to have this in the checkout confirmation page and not in the confirmation email or later is because it would otherwise only serve to dilute the quality of response.</p> <p>The positive impact brand awareness has is best demonstrated when we look at TV advertising performance. We have a certain CPA target we are aiming for and use a promotion code on <a href="https://www.youtube.com/watch?v=CMy9bFitXBM">the TV ad</a> to help us track customers coming directly via the TV ad. However, if we follow scenario 1 above and assume all customers that see the TV ad, will come <em>directly</em> to the website, our CPA looks quite astronomical and unprofitable. Decision? Let’s trash TV it clearly doesn’t work! Ah but if you add additional data points, it tells a very different story. </p> <p>If we look at just one of our many paid search keywords related to brand searches (see below), we see that there was a rise and fall of searches on that particular keyword when we ran TV advertising in February, denoted by the rise, peak and fall which correlates with TV spot timings. This gives as an additional attribution back to TV because the increase in paid search hits for this one keyword can be directly matched back.</p> <p>We analysed all brand keywords that we could track, alongside those people directly visiting the website and those coming through non-paid search and found similar patterns. The uplift in visits also correlates with an uplift in transactions confirming both volume and quality of TV impact for this keyword.</p> <p><img src="https://assets.econsultancy.com/images/0008/5374/2.png" alt="keyword uplift from tv" width="800">  </p> <p>Now if you tally up the additional sales TV brought in as the originator channel into the trackable channels (brand paid search, organic search and direct visits) the combined CPA comes in within target. The correct decision therefore based on this data is to continue with TV advertising. I may not know the complete, numerical positive impact TV has across all channels but I can be convinced with this data that it is worthwhile. </p> <p>Another data point we used was the post-transaction survey mentioned earlier. In response to ‘how did you hear about us’ we gave some relevant options such as TV, print, search etc. When analysing the data for the same period, the majority selected ‘TV’, which was of course great news but unsurprising.</p> <p>However where this was even more interesting was matching this back into Google Analytics as an event and analysing those that said they heard of toucanBox via TV and the final channel they converted on. Through this we also found TV impacted sign ups that came via Facebook ads, online partnerships and affiliates.</p> <p>Essentially we added a layer that analytics tools cannot yet add - where did they remember seeing or hearing about the brand first? This is important because we're looking for the trigger ad that prompted them to move from the indifferent stage to the like stage for the brand.</p> <p>TV for toucanBox had played an even bigger part in uplifting the entire marketing mix. Without the additional data points, a singular view of CPA and attribution would have led us to making the wrong decision and hindered growth. </p> <h4>No surprise, CPA tracking is still an issue </h4> <p>Despite this level of insight and understanding, can we answer how best to place every single marketing dollar?</p> <p>No we can’t, because the true CPA of every channel, considering what percentage of the customer journey each channel contributed, is a thing of data science beyond the scope of this article. You can search for and sift through <a href="https://www.google.co.uk/webhp?sourceid=chrome-instant&amp;ion=1&amp;espv=2&amp;ie=UTF-8#q=multi+channel+attribution">tens of thousands of articles</a> written on this subject in the last 5-10 years yet we’re still not able to 100% define a true CPA.</p> <p>The challenge is that typical tracking of budget and transactions, from channel to channel, device to device, across web analytics and crucially your customer database rarely match up. This occurs because of how each tracking system sees the view of a single transaction.</p> <p>If a customer visits the site from a Facebook ad, based on the attribution window you are looking at Facebook will record it as a transaction via Facebook, regardless of whether that person converts subsequently via another channel or not. Analytics tools such as Google Analytics register the last channel the customer came through and although GA offers a way of <a href="https://www.kaushik.net/avinash/multi-channel-attribution-modeling-good-bad-ugly-models/">viewing multi-channel attribution</a>, at best some marketers and analysts are still inexperienced with how to use it for budget decision making and at worst are not even aware it exists.</p> <p>GA will also often under report against what your customer database shows due to cookie/tracking issues and so as a marketer it is a constant struggle to optimise channels, marketing-mix and internal KPI reporting. The screengrab below is a typical view of what our customer journey might look like from first click to last. Quite the journey. And if last click was all we went on, we might ditch email or organic search from our marketing mix.</p> <p><img src="https://assets.econsultancy.com/images/0008/5375/3.png" alt="attribution" width="800"></p> <p>Whilst at toucanBox we are highly data-driven in our marketing analysis and decision making, we’re also in fast-growth stage and so require a balance between data accuracy and growth agility which often increase inversely. Making decisions on hard, measurable data points isn't enough to make a fully qualified decision to assigning the true CPA for a given campaign or a channel.</p> <h4>So after all of that, how exactly do you evaluate the return on your dollar spend? </h4> <p>The simple answer is through complex data modelling, tracking and attribution. Well no, actually the simpler answer is you don’t.</p> <p>Instead marketers will often take stock of a blended view of marketing in order to determine the success of a campaign. If tracking and accounting the return from every dollar is your priority (and there's no reason it shouldn't be) then you will need to have the time and resource available to create a system which at best, will get you close to answering this.</p> <p>However if you’re a fast-growth company looking to make the the next best decision to that, on how your marketing performance stacks up, then a combination of in-channel optimisation to get the best from your macro metrics such as cost per click (CPC) and clickthrough rate (CTR) on top of a blended view of marketing performance might just get your growth machine whirring that much faster.</p> tag:econsultancy.com,2008:BlogPost/68934 2017-04-03T14:11:00+01:00 2017-04-03T14:11:00+01:00 How chatbots and AI might impact the B2C financial services industry Alasdair Graham <p>Because of this, a significant proportion of FS businesses may not have felt the need to invest in digital. This is also potentially exacerbated by the fact that their competitors and cohorts are also lagging in terms of digital. Research by Econsultancy and Adobe shows that <a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016/">9% of FS businesses claim to be digital-first</a>, compared to 11% across all sectors.</p> <p>As younger, digitally native clients begin moving into the market for financial services at both a consumer level and professional level, becoming ‘digital first’ is now imperative for the financial services industry.</p> <p>In addition to the changing workforce and consumer landscape, the FCA also launched the <a href="https://www.fca.org.uk/firms/financial-advice-market-review-famr?field_fcasf_sector=unset&amp;field_fcasf_page_category=unset">Financial Advice Market Review</a> in late 2015 which aimed to review and explore ways in which financial institutions can take actions to:</p> <ul> <li>Provide affordable advice to consumers.</li> <li>Improve and increase access to advice.</li> <li>Address industry concerns relating to future liabilities and redress without watering down levels of consumer protection.</li> </ul> <p>With these goals in mind, <a href="https://econsultancy.com/reports/marketing-in-the-age-of-artificial-intelligence/">AI</a>, <a href="https://econsultancy.com/blog/68046-five-pioneering-examples-of-how-brands-are-using-chatbots/">chatbots</a> and digital tick a range of boxes, particularly under the “affordability” and “accessibility” criteria.</p> <p>Like some systems that consumers may be familiar with, such as virtual assistants like Siri, Cortana or Amazon’s Echo platform, chatbots are essentially pieces of software that simulate human, natural language conversations and can respond to and act upon queries and commands from users.</p> <p>The advantage these systems have over a ‘real’ conversation with a human is that they are able to extract and analyse a user’s needs and intent and ultimately return the information a user has requested or perform actions for them faster, at any time of day or night, more accurately and at significantly lower cost than a human counterpart.</p> <p>This new AI technology has been taken note of by financial institutions on a global scale, with 80% viewing them as an opportunity.</p> <p><img src="https://assets.econsultancy.com/images/0008/5222/bots_opportunity.png" alt="" width="565" height="402"></p> <p><em>Image Source: <a href="https://thefinancialbrand.com/63596/financial-banking-bots-chatbot-voice-ai/">The Financial Brand</a></em></p> <h3>Bots are viewed as an opportunity by the financial services sector</h3> <p>As with most emerging technologies, smaller, agile fintech startups have been quick to adopt chatbot technology out of both necessity and choice. This mitigates the issue of expensive traditional customer service interactions and ultimately benefits the end users through savings and improved customer experiences.</p> <p>UK startup <a href="https://www.habito.com/">Habito</a> built the world’s first AI mortgage advice chatbot which queries applicant’s financial status, asking questions covering an applicant’s salary, personal life and employment.</p> <p>After this 10-15 minute ‘chat’ the bot then collates all the data given and queries hundreds of products, as opposed to the handful that a human advisor would be able to query, and in a fraction of the time.</p> <p>In line with the FCA’s ‘financial advice market review’ this results in a far less stressful process for the consumer, free of having to schedule and attend appointments within office hours, paying a premium for advice, or interacting with a potentially biased party.</p> <p>According to Habito's CEO and founder Daniel Hegarty: "Our digital mortgage adviser is a huge step forward in making mortgage advice accessible for consumers in the way they need it most: unbiased, always available and, most importantly, free.”</p> <p>Ultimately, this move to fully automated, impartial chatbot-based advice could result in consumers saving thousands of pounds per year.</p> <p>The benefits of this type of technology are clear with many people choosing to apply and research mortgages online through these types of systems rather than spending the extra time and potentially cash on a human mortgage broker that may not necessarily have the best deals available. These systems could potentially pave the way to a fully automated mortgage approval, further removing the potential for human error and bias from the process.</p> <p>American bank Capital One also launched a chatbot called ‘Eno’.  Eno is able to interpret text-based conversational queries and commands alongside emojis.</p> <p><iframe src="https://www.youtube.com/embed/jvyHcjZoGJk?wmode=transparent" width="640" height="360"></iframe></p> <p>This includes the ability to check balances and pay off credit cards, while cash transfers are also in the works. Additionally for customers with Amazon Echo, <a href="https://econsultancy.com/blog/68791-should-financial-services-brands-follow-capital-one-on-to-amazon-echo/">Capital One has also built out a ‘skill’ that allows for voice commands</a>.</p> <p>The benefits of this are clear from both sides – consumers get what is equivalent to an ‘always on’ personal assistant at the bank that can perform actions for them without having to interact with cumbersome apps or websites and convoluted log-in processes for basic requests.</p> <h3>Percentage of FI's that believe bots will take over many of today's customer conversations</h3> <p><img src="https://assets.econsultancy.com/images/0008/5223/percentage_of_fis.png" alt="" width="565" height="362"></p> <p><em>Image Source: <a href="https://thefinancialbrand.com/63596/financial-banking-bots-chatbot-voice-ai/">The Financial Brand</a></em></p> <p>At the business side, Capital One stand to make significant savings in terms of time and manpower as users transition from face-to-face and telephone queries to simply asking Eno.</p> <p>Given the abundance of data available to financial services firms and the often methodical, process-driven nature of consumer financial advice, chatbots seem like an easy decision for most consumer-facing financial services companies.</p> <p>The fact that mobile is now a huge factor in financial services and particularly banking is also a huge opportunity for chatbots and AI. Chatbots are particularly well suited for mobile given that messaging is arguably one of the most used features on smartphones.  </p> <p>Not to mention that financial service chatbots could easily be integrated into applications that billions of consumers already have and are using daily such as Facebook Messenger and WhatsApp. This removes a significant barrier to entry in that consumers don’t have to download another app or alter their existing mobile behaviour patterns.</p> <p>With the above in mind, businesses within the financial services industry will only truly realise the advantages of AI and chatbots if it is implemented as part of a well-considered, omnichannel strategy.</p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><a href="https://econsultancy.com/blog/68934-how-chatbots-and-ai-might-impact-the-b2c-financial-services-industry/"><em>How chatbots and AI might impact the B2C financial services industry</em></a></li> <li><a href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/"><em>Financial Services and Insurance Internet Statistics Compendium</em></a></li> <li><a href="https://econsultancy.com/blog/68932-how-we-built-our-facebook-chatbot-what-does-it-do-and-what-s-the-point/"><em>How we built our Facebook chatbot: What does it do, and what's the point?</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68951 2017-04-03T11:44:55+01:00 2017-04-03T11:44:55+01:00 What makes Premier Inn the world’s strongest hotel chain? Nikki Gilliland <p>With total sales up 12.9% and like-for-like sales up 4.2% in 2015 and 2016, it marks a successful period for the hotel chain.</p> <p>So, what exactly makes Premier Inn so strong? Here’s a breakdown of its <a href="http://brandfinance.com/knowledge-centre/reports/brand-finance-hotels-50-2017/" target="_blank">BSI score</a> along with some further insight into what it’s been doing right.</p> <p><img src="https://assets.econsultancy.com/images/0008/5139/BSI.JPG" alt="" width="368" height="400"></p> <h3>Familiarity and consumer confidence</h3> <p>As one of the first mass market UK hotel chains to be advertised on prime time television, Premier Inn has infiltrated the consumer mind-set as a go-to brand. By using high-profile celebrities in its TV ads, most notably with comedian Lenny Henry, it has further cemented itself into the consumer consciousness.</p> <p>Alongside this sense of familiarity, Premier Inn has worked hard to instil a sense of confidence in consumers – and this has mainly been achieved by differentiating itself from the competition.</p> <p>With its ‘great night’s sleep guaranteed’ pledge, it goes above and beyond the promise of convenience or value to offer something that all consumers crave from a night in a hotel – real comfort and a sense that it is a home away from home. </p> <p>By using its partnership with Hypnos beds in this way, and even going as far as offering a money-back guarantee, it has been able to beat out similar chains that solely rely on factors like low cost.</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpremierinn%2Fposts%2F1469295463100686%3A0&amp;width=500" width="500" height="662"></iframe></p> <h3>Emotionally-led campaigns</h3> <p>Having established itself as a well-known and familiar brand, Premier Inn has widened its marketing approach to focus on more emotionally-led campaigns – recently using director Ben Wheatley for a new series of adverts. </p> <p>‘Great Aunt Mabel’s Birthday’ – a decidedly Wes Anderson-inspired ad – portrays the experience of getting ready for a special birthday party, building on relatable family-driven elements to engage viewers. </p> <p>Similarly, its ‘Working Girl’ ad depicts a different but similarly emotionally-driven experience of giving an important work presentation, which is conveniently made easier thanks to Premier Inn’s free Wi-Fi, unlimited breakfast and king-size Hypnos beds.</p> <p>With an emotional response reported to have a far greater influence on a consumer’s intent to purchase than the ad’s content – by a factor of 3-to-1 for television commercials – Premier Inn’s decision to veer into this territory is likely to resonate with consumers. </p> <p>What’s more, it aims to show the brand in a fresh and multi-faceted light, removing the perception that it's <em>only</em> about a good night’s sleep.</p> <p><iframe src="https://www.youtube.com/embed/dbpH2F-kn8Y?wmode=transparent" width="854" height="480"></iframe></p> <h3>Value-for-money and employee focus</h3> <p>With value-for-money having a direct influence on consumer satisfaction, Premier Inn’s commitment to offering a quality service for less appears to be at the heart of its success. But more than this, it is its ability to strike a balance between value and quality which sets it apart – and a reason why it has also ranked consistently highly on YouGov’s BrandIndex.</p> <p>Lastly, with staff satisfaction and corporate reputation contributing to brand strength, Premier Inn’s commitment to equality is also worth a mention.</p> <p>As well as a student placement scheme, the brand runs the Premier Inn Hospitality Apprenticeship programme to recruit people from diverse class backgrounds, regardless of academic achievement. The chain employs around 700 apprentices in the UK at any one time, offering the opportunity for apprentices to rise up the ranks and even run hotels or large teams at corporate level.  </p> <p>In doing so, it has demonstrated its position as a fair and socially-aware employer, undoubtedly contributing to its status as a powerful brand. </p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fpremierinn%2Fposts%2F1349966288366938&amp;width=500" width="500" height="488"></iframe></p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/65315-which-hotel-sites-offer-the-best-user-experience/" target="_blank">Which hotel sites offer the best user experience?</a></em></li> <li><em><a href="https://econsultancy.com/blog/67658-how-hotels-can-personalize-the-customer-experience-to-compete-with-airbnb/" target="_blank">How hotels can personalize the customer experience to compete with Airbnb</a></em></li> <li><em><a href="https://econsultancy.com/blog/68025-how-hotels-can-create-a-more-convenient-customer-experience/" target="_blank">How hotels can create a more convenient customer experience</a></em></li> </ul> tag:econsultancy.com,2008:TrainingDate/3188 2017-03-21T11:52:10+00:00 2017-03-21T11:52:10+00:00 Multichannel Marketing and the Customer Journey <p>Consumers don’t see “channels”. They only see brands to facilitate their needs in the moment. Yet despite this, businesses are often structured, resourced and budgeted around individual marketing channels, which can lead to a disconnect between consumers and brands….or even within businesses themselves.</p> <p><a name="h.c2ixnqwvr8bh"></a>This is no chalk and talk session. Using a case study throughout the day, this practical one-day course provides you with the strategic planning tools to take a compelling campaign proposition to market, with a multichannel marketing strategy that ensures you can deliver the right content, to the right person, through the blend of channels they prefer.</p> <p>Having mapped out the multichannel activation plan for your brand, you will then gain an understanding of the key measures and how to bring these together in a meaningful context.</p> tag:econsultancy.com,2008:ConferenceEvent/862 2017-03-15T17:12:04+00:00 2017-03-15T17:12:04+00:00 Digital Therapy Live <p><strong>Digital Therapy Live</strong> is our brand new event dedicated to providing a cure for your digital angst. It’s part of our <strong>Digital Therapy</strong> programme for 2017, a mixture of events and webcasts running throughout the year.</p> <p><strong>Digital Therapy Live</strong> will explore topics of concern in the digital space, give you the opportunity to offload and help you seek advice on the best path forward.</p> <p>It’s designed to be a comfortable and confidential setting, so what’s said at <strong>Digital Therapy Live</strong>, stays at <strong>Digital Therapy Live</strong>. This is your chance to rant, jettison, question, dispute, explore and probe in a private forum surrounded by your peers and our experts.</p> <p>This event is exclusive to 120 Econsultancy subscribers who are also senior client-side marketers.</p> <h4><strong>Roundtable topics</strong></h4> <p>At <strong>Digital Therapy Live</strong> you’ll have the opportunity to participate in two roundtable discussions, each focusing on different digital pain points. Upon being allocated a space, you’ll have the chance to choose which discussion tables you would like to take part in the most. Topics on the day will delve into areas including:</p> <ul> <li>Not getting the most out of your data</li> <li>Too much focus on customer acquisition rather than retention </li> <li>Being unable to attract and/or retain digital talent </li> <li>Delivering 'multichannel' marketing</li> <li>Keeping up with marketing technology</li> <li>Mobile progress</li> <li>Personalisation</li> <li>Testing and optimisation</li> <li>Agile adoption</li> <li>Organisational design for digital</li> </ul> <p>We’ll also be dosing you with some knock-out keynote sessions, easing your anxiety and eliminating your digital woes. Details to be announced soon!</p> tag:econsultancy.com,2008:BlogPost/68891 2017-03-15T11:37:14+00:00 2017-03-15T11:37:14+00:00 Realising the potential of mobile analytics [infographic] Nikki Gilliland <p>According to research by Google and Econsultancy, leading marketers are 75% more likely than the mainstream to have moved to a more holistic model of measurement in the last two years. What’s more, leading marketers are 83% more likely to than their peers to include cross-device data. </p> <p>Of course, the latter doesn’t just mean looking at <em>what</em> consumers are buying, but taking into consideration all moments that matter in order to gain a complete view of the consumer journey. And more importantly: using it to inform decision-making.</p> <p>For further information on this, you can download Econsultancy’s <a href="https://econsultancy.com/reports/driving-growth-with-measurement-in-a-mobile-world/" target="_blank">Driving Growth with Measurement in a Mobile World</a> report, published in association with Google. You can also check out more related stats in the Google infographic below.</p> <p><a href="https://www.thinkwithgoogle.com/infographics/mobile-measurement-potential-drive-growth.html" target="_blank"><img src="https://assets.econsultancy.com/images/0008/4638/infographic.jpg" alt="" width="700" height="3297"></a></p>