Post a Comment
It seems like every retailer nowadays has a loyalty program. From the local coffee house to “big box” national retailers to almost any online merchant, everyone has a loyalty program. But do people really want them? It turns out the answer is yes – a resounding yes. But are those programs actually what drive loyalty, or is something else driving behavior?
That question loomed on my mind this year as I had the opportunity to work with two organizations to research customer loyalty - one project focused on the enterprise view, and other to get the consumer view. For the consumer view, I had the privilege to work with graduate students from Northwestern University’s Kellogg School of Management, and that study confirmed a few suspicions I had about customer loyalty programs. And it’s a combination of good news / bad news.
The Bad News
Let’s start with the bad news and get it out of the way. It seems that consumers have come to expect loyalty programs, so in many situations not having one may put you at a disadvantage if your direct competitors have such programs. The other bad news is that so many loyalty programs are tied to discounts and have been aggressively promoted as such that it’s the benefit that consumers associate most strongly with loyalty programs. So, the upshot is that with a loyalty program in place you’ll need to figure out how to operate on slimmer margins, or make other accommodations.
The other bad news is that loyalty programs designed to keep the customer coming back do little to trump a bad customer experience. As a result, retailers must first ensure that they are delivering quality shopping experiences before offering perks for return trips. So as they are designed today, do loyalty programs actually engender loyalty? Apparently not, according to the Kellogg study – it’s a combination of factors.
The Good News
It’s not all doom-and-gloom, however. The good news is that the combination of factors to drive loyalty have many elements that are within your control. Read More
Post a Comment
Back in 2007, the NY Times published an article about “The Google Way.” The premise behind the Google Way is to give engineers 20% of their time to spend on new company related ideas and projects that interest them. For a while this became the management strategy du jour as every large company attempted to inject a culture of spirit and creativity into their businesses (with very mixed results).
Even Google recognized that the strategy was flawed. Large initiatives generated from The Google Way projects begin to distract them from their core business.
Taking the reins as CEO in 2011, Larry Page announced a new focus with “more wood behind fewer arrows.” Google put guardrails on how innovation time is spent: “Urgency without alignment is wasted energy.”
Marketing organizations have taken a page from the Google playbook. In my previous post, I noted the disparity in organizations with marketing innovation budgets (who has them, who doesn’t), and highlighted some examples of organizations putting their innovation dollars to good use. But how do we validate and prioritize those innovation ideas, align them to our marketing goals, and execute? Read More
Post a Comment
Marketing attribution has been a hot topic for marketers as long as we’ve had marketing. Everybody talks about it, few really know how to do it, and everyone thinks everyone else is doing it - so everyone claims they’re doing it.
This may be different where you are, but what I've seen here in Europe is that many folks are not aware of the full potential of marketing attribution modeling. They don't know which types there are, if it's only online or offline data, and all the other permutations and nuances. So let me see if I can sort it out for you.
What is marketing attribution?
Marketing attribution is all about understanding how marketing channels impact the customer experience and drive revenue for the company. In other words, it answers the perennial question - which lever works best (or not at all)? Christopher Ratcliff from @econsultancy gives a good definition for attribution modeling:
"Marketing attribution is the practice of
determining the role that any given channel plays
in informing and influencing the customer journey"
Why is marketing attribution important?
During any given purchase journey, a customer engages with different marketing channels, such as catalog, email, website, contact center and so on. When he finally is comfortable to place an order and the sale is made, all the marketers that touched that sale wants to claim responsibility. And why not? The web team will cite the great web design, the direct marketing team will trumpet the beautifully crafted email, the contact center has their transcripts to document the interactions, and so on. And the truth is that they probably all had an impact. But in order to make fact-based informed decisions for future strategy, knowing the value of all the marketing efforts is key. Read More
Post a Comment
The big data privacy discussion is subtle, complex and complicated – and we each have a role to play. What’s yours going to be?
It was 9:53 AM. Sarah was racing against the clock: she wanted to finish a long overdue email to a Canadian colleague before her team’s weekly 10:00 AM meeting. Just as she clicked the ‘Send’ button, her manager, Mason, appeared outside her cubicle.
“Are you headed to the meeting?” he asked her.
“Yep, I was just heading over.”
“Great. I’ll walk with you. I was wondering if you had time after the meeting to go talk with Angie in HR. I got a call from her this morning, and a situation has developed that she wants to talk to us about.”
“What’s going on?” Sarah asked.
“I don’t know. She wouldn’t tell me. She said she wanted to discuss it with the both of us at our earliest convenience.”
“Well, I hope everything’s okay,” Sarah replied, trying not to think too much about it.
It was 11:05 AM. Mason and Sarah sat down in the two chairs across from Angie in her office. “Thank you for meeting with me on such short notice,” Angie began. “I wanted to talk to you about the summer picnic your department had a week and a half ago.” Read More
Post a Comment
The online dating website OKCupid recently posted the results of some real life experiments that they had performed on their user community. The experiments included three tests to evaluate the influence of certain user profile changes in compatibility matching (manipulating compatibility scores, suppressing user profile photos and the impact of rating scales and photos – the cool versus pretty test).
OKCupid CEO Christian Rudder posted on the company’s blog: “If you use the Internet, you’re the subject of hundreds of experiments at any given time, on every site. That’s how websites work.” He goes on to say “OKCupid doesn’t really know what it’s doing. Neither does any other website…Most ideas are bad. Even good ideas could be better. Experiments are how you sort all this out.”
Like OKCupid, more and more data-centric companies are using rapid experimentation approaches (also called test-and-learn) to better understand how consumers react to their products and services.
This not only influences product development cycles, but drives more effective marketing and contact strategies. Read More
Post a Comment
A Twitter what? Chat? With @SASAnalytics and @IndustryWeek? About World Quality Day?
How do I get in on this? #whatsatwitterchat #whydothis
See how I did that? In 139 characters too. Yep, I thought that would catch your eye. Now that I have your attention, please mark your calendar for our World Quality Day Twitter chat event with IndustryWeek magazine – it’s well worth an hour of your time. It happens on Thursday, November 13, 2015 at 11:00a.m. - 12:00noon ET on Twitter at #WQChat
If you’re not familiar with it, a Twitter chat (or tweet chat) is a free online event at a designated time with a set of questions around one topic. The host account poses questions to their followers using a specific hashtag. Anyone in the Twitter sphere can search that hashtag and participate in the conversation – usually involving thought leaders, practitioners and many people who are simply interested in the topic.
Why a chat on quality, you ask? Simply put, the manufacturing business world revolves around quality and it’s a core element of business strategy. TQM, ISO 9000, Six Sigma, Lean Manufacturing, Deming, Baldridge are all terms you may have heard in relation to quality management.
And quality is important for manufacturing to be sure – but it’s also important to marketers because it usually forms the basis for the customer experience. Read More
Post a Comment
Today, we live in an always-on digital world. We work online. We socialize online. We shop online. We bank online. We support causes online. Not to mention, we drive on toll roads with our EZPasses, go to Disney World with our MagicBands, and check our personal stats with our Fitbits. We are living in a big data world.
And when it comes to big data’s impact on privacy, we seem to be caught in this tug-of-war with multiple players and perspectives. Let’s look briefly at four of these perspectives.
Perspective #1: The Consumer. As consumers, we like "free." We just do. But what does “free” cost us in this digital world we live in? I’ll tell you: the cost is our personal information. And typically, the higher the perceived value of the app or service we’re using, the more information we’re willing to share.
It sort of makes sense when we hear reports that up to 70% of all data in the digital universe is being generated by us, the consumer. Everything we do is leaving a digital footprint and letting others know: “We were here.” And if we were here, we can be tracked and our data can be found - by any individual, company or government agency. For good or for bad.
Perspective #2: The Private Sector. While companies are motivated to make money, sometimes it’s not the consumers’ money they’re necessarily after. Read More
Post a Comment
I had the opportunity recently to attend the Association of National Advertisers (ANA) “Masters of Marketing” conference. In almost every presentation, each CMO credited their success in the marketplace with an ability to take risks. With the stratospheric growth in digital marketing initiatives and a need for speed-to-market, rapid innovation and experimentation is now part of the day-to-day DNA of the marketing organization. Or is it?
In Italy, prosciutto (ham) is not the same as pancetta (bacon). Capisce?
Tapping into the bacon-obsessed marketing segment (I’m betting the Experian Mosaic segment for this category represents 98.7% of the US population), Kraft’s Oscar Mayer brand created the Institute for the Advancement of Bacon.
Their digital marketing program includes an integrated social media, website and mobile bacon app for iPhone (and a few lucky people who won the “bacon dongle” that attaches to your phone and had has a bacon-smell atomizer). Their latest campaign is the The Great American Bacon Barter, which you can follow on Twitter @BaconBarter.
Not amused by all this fuss about bacon.
Kraft also turned a nationwide Velveeta cheese shortage (during Superbowl time, no less!) into a marketing extravaganza…the Cheespocalypse…by creating an entire social media strategy on the fly to connect Velveeta cheese lovers with available in-store inventory. Now that’s innovation!
Deanie Elsner, CMO of Kraft, attributes her team’s success to “Agile Marketing.” Their agile marketing framework includes three pillars: data, infrastructure, and content. Read More