The Privacy Paradox

DMA2012 speaker Bryan Pearson- president and CEO of LoyaltyOne and author of the bestselling book The Loyalty Leap– can tell you all there is to know when it comes to a consumer’s privacy concerns- like why 43% of consumers refuse to give their personal data to a salesperson, and why 41% prefer to pay cash instead of credit. In the article below that he wrote especially for us, he outlines five fundamental principles every marketer should practice in order to create value for customers and lessen their privacy concerns.

Be sure to join Bryan at DMA2012 as he presents Customer Data – Privacy, Profit and the New Paradigm, as part of our Thought Leadership Series. Our TLS modules, which run Monday, 10/15 in the afternoon and Tuesday, 10/16 throughout the day, provide attendees with leading insight into marketing best practices and emerging business trends. If you’re ready to become a leader in the marketing field, these are the sessions for you! Register for DMA2012 NOW!

To follow Bryan’s blog, visit www.pearson4loyalty.com.

The Privacy Paradox:
Many Marketers Failing When it Comes to Gathering Personal Information

You can’t fool consumers. They know—or they think they know—that when marketers gather their personal information, the company benefits.

But consumers are less sure of the benefits they themselves accrue when giving up their information. And a majority of them are concerned about the amount of information held by others, according to a survey by LoyaltyOne.

How big is the gap? While 88% of consumers surveyed believe that companies gain from collecting personal information, 74% feel they don’t receive a benefit for having shared their data. And only 54% say they expect better customer service for having given over their information, with access to exclusive events or offers cited by a mere 55%.

Those low scores are not necessarily undeserved.  Given how long loyalty programs have been in the marketplace –three decades for the airlines, two decades for mainstream retailers – consumers have seen limited amounts of customization. They are not having relevant experiences.

Fewer than half of those surveyed expect to receive offers tailored based on what they have previously purchased. Just 41% believe they will receive advance information on new products and services, and the same amount anticipate communications based on their preferences. A mere 39% believe surrendering personal information will result in an easier buying process, and only 36% expect personal treatment.

Marketers’ failure to deliver on these potential perks has led some consumers to resist offering their information. Forty three percent have refused to give data to a salesperson, and 41% report paying cash at times instead of credit, so not to have an identifiable record of their purchase. More disturbingly, 23% have elected not to make a purchase because they were unsure how the company they were buying from would use their information, and 12% have opted out of a loyalty rewards program.

These numbers climb even higher among consumers who have been notified of a data breach–and nearly one in three of those surveyed have received such notifications.

Here are five principles for marketers wishing to use data responsibly and creating value for consumers.

1. Be Transparent and Reasonable: The more transparent marketers are, the more engaged their customers will be. Marketers should express in straightforward language what they are trying to do, what they are achieving, what’s in it for the customer and what’s not in it for the customer. Marketers should collect only the data they need, and they should use the data they collect. In short, they should deliver on their promise.

2. Give Consumers a Choice: In the loyalty program arena, to run a value exchange-based relationship with the consumer a marketer need to gain trust. The best way to gain trust and commitment is by giving customers the opportunity to choose whether they share information. Permission-based or not, responsible marketers can add value for the consumer if data is respected. Problems arise when marketers cross the “creepy” barriers into the ultra-personal areas such as health, finance and sex, and marketing to children.

3. Guard Consumer Data As If It Were a Corporate Secret
: Marketers should respect data that consumers share out of trust and guard it as if it is a corporate asset. They should use data only as directed and as is permissible, and retain data only as long as needed. They shouldn’t use data for secondary purposes, such as selling to a third party without permission. And they should always, always, always destroy data with care.

4. Monitor Frequency of Usage: Marketers should take pains not to wear out the consumer’s trust. Consumers can feel overloaded from too much information. Marketers should ensure their company is not adding to this burden by not abusing a person’s name and contact information, and by not abusing the customer’s permission. They should make sure that emails are not too frequent, that they are relevant to the customer’s needs and that they offer real value.

5. Mutuality of Value: Marketers should focus on creating real value for the consumer. It’s not about the product exchange, cash, points or coupons. It is about something bigger–relevancy. The more relevant the communication, and the offer within, the more engaged the consumer will be. Once this is achieved, there is a mutual value exchange, and the start of a virtuous circle in which more information is shared and more value is received.

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DMA2012 Weekend Highlights: Creative Creatures of Emotion

How often do marketers really consider the power of emotional data? In our fast-paced, mobile-centric, data-driven world, not nearly enough! Here, DMA2012 speakers Slavi Samardzija, EVP and Chief Analytics Officer at KBM Group, and Nick Moore, Chief Creative Officer at Wunderman, note that our buying behaviors are first and foremost driven by our emotions- making the collection of accurate emotional data so paramount these days. Learn all you need to know about The New World of Emotional Data at DMA2012, when Nick and Slavi join us for some Weekend Master Class excitement on Sunday, October 14!

You can also hear Slavi speak about the powerful combination of creativity and data on Saturday, October 13, during the SAP’s Excellence in Integrated Marketing: Converting Online Traffic to Leads session, as part of our Pre-Conference Strategic Summit line-up. But you’ll have to register beforehand, our Pre-Conference Strategic Summit is open to VPs and above, and is a hot commodity – with seats filling up quickly, so you don’t want to miss out!

There is so much going on during the weekend, with 8 two-day workshops in addition to the Master Class, Strategic Summit and our Kick-Off Party, so why not come in early?

DMA2012 – What’s in it for ME?!

So, your company’s marketing database division has you completely perplexed? Not sure how to create a database that drives business growth and transformation? We feel ya’—and we’ve got you covered… more than you know. Because if you come to DMA2012, not only are you benefitting your business, but also your own career prospects.

Learn from DMA2012 Post-Conference Certification speakers like Marcus Tewksbury, VP Strategy & Consulting at Experian and one of our database experts, and you can come away with a DMA Certificate in one of six essential marketing disciplines. In this video, Marcus gives us a sneak peek into the database marketing Certification. For even more fantastic advice, join Marcus and the team during our Database Marketing Post-Conference Certification course on 10/17 and 10/18! And if database isn’t for you, choose from Creative, Email, Mobile, Search, or Social Media. All you have to do is attend the two-day workshop and then sit an online exam to get your certificate. Just register here and include the Post-Conference option.

Do’s and Don’ts for the Data-Driven Marketer

We had a set of burning questions for DMA2012 speaker and CEO of Technology Leaders Andrew Edwards, and we were lucky enough to get some answers. In this video, Andrew talks with us about his upcoming session at DMA2012- 5 Essential Practices for the Data-Driven Organization– and opens our eyes to some of the most common mistakes data-driven marketers are currently making. He even covers social media, noting that we’ve become so distracted by those two words, we’ve forgotten that “social” is simply a way to drive people to conversion points. Some great tips from another one of DMA2012’s great speakers. Watch the video for more, and join Andrew on 10/15 for what’s sure to be a hit of a session!

Don’t sweat it! Why measuring customer engagement just got easier

Almost every marketer today is focused on customer experience, and wants to understand how engaged customers are with their brand. However, when it comes to measuring customer engagement most companies fall short because it’s no easy task. Most marketers either adopt static point-in-time approaches which are ineffective, and/or develop complex metrics to measure engagement, which tends to be cumbersome and deters action.

Join DMA2012 speakers Aldo Agostinelli, Snapfish Head of Customer Management, and Niren Sirohi, iKnowtion VP Predictive Analytics, on 10/15 when they present How Snapfish Used Engagement Analytics to Improve ROI. You’ll learn how Snapfish developed a simple, visual, and dynamic approach to measuring customer engagement. They’ll even take you through a case study that focuses on the use of customer engagement patterns, how these patterns were developed, and how the insights provided not only drove business growth and improved ROI, but also helped the company transform their marketing organization to one that is truly customer centric and organized around the customer; something many talk about but few are able to accomplish. Hungry for more? Check out their white paper, Customer Engagement Pattern Analytics, and don’t forget to come out and hear them speak at DMA2012!

Getting from A to… B-to-B

Scott Armstrong, General Manager at BrainRider, knows B-to-B like the back of his hand. So who better to offer up some expert advice on all things B-to- B? In this video, Scott tells us why it’s now THE most exciting part of marketing and what makes it so different than B-to-C. Which conditions allow for the most effective B-to-B marketing? You know the drill- watch the video to find out! And don’t forget to join us for our Ask-the- Experts Roundtables on 10/15, where DMA2012 speaker Nolin Lechasseur, Managing Partner at BrainRider, will clue us in on how to create findable, relevant and valuable B-to-B content. And don’t forget to bring along your B-to-B content example—you’ll get it reviewed live by a true B-to-B expert!

Reading Your Customers’ Minds? It’s Not Magic

What are customers thinking about when they consider my brand? What are they looking for in my product or service? Been asking yourself these questions? We figured. It’s a good thing we’ve got Chief Client Officer at Catalyst – and DMA2012 speaker – Karen Menachof to help us get some answers! Karen’s made it easy for us and outlined four straightforward, inexpensive ways to help you better understand where your customers are coming from. Read on for her expert advice, and then join Karen at DMA2012, where she’ll tackle more of your burning questions during her 10/17 session, Case Study: Overcoming Inertia in Retail Bank Marketing!

4 Inexpensive Ways to Find out what Your Customers are Thinking
By Karen Menachof, Chief Client Officer, Catalyst

Here’s what I’ve been hearing from clients the past few months: “I want to know more about what my customers are thinking about as they consider my products, but I’m not sure where to turn.” “If I had deeper insights about how customers approach the category and specifically my brand, I could use that to inform my marketing and drive conversion rates up.”

Well, the good news is that there are lots of options for learning more. The bad news? Many of them are expensive and may not reveal the insights you seek. For example, qualitative research can be effective, but the underlying factors that drive consumer decisions are often difficult to tease out–whether one-on-one observations of buyers in their “natural” environment or focus groups. Quantitative research may be more “certain,” but it assumes that consumers can accurately “rate” their perceptions or report their motivations and behaviors with some accuracy, which is frequently not the case.

Is there a better way? I say keep it simple, at least at the onset, as you begin the journey to understanding.

1. Look at search behavior
Consumers reveal so much about themselves as they navigate the Web, and the cost to gather that information and turn it into actionable insights is relatively low. Begin by looking at what’s happening in the search arena. What are people searching for online … and what can you infer about where they are in the buying process?  Armed with this information, you can develop new hypotheses that can and should be tested for potential impact.

 2.    Look at website behavior
Another productive way to learn what consumers are thinking about is to watch what they do on your website or other online properties. Map their movements and use that information to bring the buying process to life.

 3.    Use PURLs
If you can, connect all of these dots by using PURLs, which let you track an individual consumer from point of contact through conversion and beyond. And while this may not be a plausible option for all of your outreach, it can be used selectively to learn a lot about what’s in your buyer’s mindset at key stages in the buying process.

4.    Listen in social media
Your customers are probably online, and it’s likely they’re sharing their opinions about your brand. Social media listening can provide great insight into what people think, for an extremely reasonable cost. A basic tool will scour blogs, review sites and major social platforms for brand and product mentions, competitor mentions, and any keywords you choose.

This is not to say that more traditional qualitative and quantitative research methods don’t have their place—they do. But before you invest in them, try these simple and inexpensive ways to find out what your customers are thinking about. Then, if you opt to proceed with more expensive options, you’ll already have valuable data with which to inform your research hypotheses.