Big Marketing Executive Summary. The case for marketing to react to consumer opinions on personalisation

Transcription

1 Big Marketing Executive Summary The case for marketing to react to consumer opinions on personalisation Produced by GfK and the Guardian Media Network for the Guardian Changing Advertising Summit 2013

2 1 Introduction: The case for Big Marketing We are in the throes of a seismic change to the marketing function with technology-based approaches increasingly setting the agenda. Brands are now significant users of Big Data or in other words consumers personal data to not only target consumers with relevant products and services but also to design effective customer experiences. This report covers the views of both marketers and consumers on this rapidly changing phenomenon. The marketers we interviewed are generally positive about the way in which Big Data is used and are typically enthusiastic about the opportunities it represents for their industry. There is, however, some concern whether they are always suitably skilled for the new challenges they face. But what is the consumer perspective in all of this? Whilst personalised marketing is nothing new, the sheer scale and sophistication of current approaches far surpasses anything consumers have experienced previously. One of the key themes that emerges from our research is the apparent lack of understanding that consumers have on this issue. This potentially leaves brands exposed as consumers can be subject to occasional shocks when a particular aspect of personal data handling comes to light, often accompanied by a security breach. In addition, the way personal data is handled is increasingly becoming a brand differentiator, with consumers more and more likely to state they favour brands that have a strong positioning around privacy and personal data. A broader issue is the degree to which consumers are willing to have a highly personalised interaction with brands. At one level this is attitudinal many consumers appear to simply not like the idea of it. Arguably there is nothing here that cannot be negotiated and indeed GfK s segmentation of the market shows that many people have no problem with a close level of brand interaction. However, the scale of the challenge is significant and we are starting from a position where discussion of these topics seems to be an anathema to many brands. About the research In this research carried out by GfK exclusively for the Guardian Media Network, we have surveyed both sides to understand the marketers view, and the consumer perspective. The research combined 1011 consumers surveyed online between 30th July and 5th August with 157 marketers surveyed via the Guardian Media Network and online research panel between 30th July and 2nd September The numbers of marketers interviewed is necessarily smaller they are a smaller population but also hard to reach. Colin Strong (@Colinstrong) of GfK will present the findings on 8th October at the Guardian Changing Advertising Summit in a session entitled A manifesto for Big Marketing. See theguardian.com/advertisingsummit for more information on the event. For the full Big Marketing Report please see the back cover and scan the QR code. 1 2

3 2 Marketers positive but concerns over skill set Provides opportunities Agreement that Big Data provides new opportunities for marketing 81 % said agree strongly or somewhat Importance of Big Data How important it is to have the ability to access Big Data Well qualified Agreement that marketers are well qualified to handle Big Data 86 % 30 % said very or somewhat said agree strongly or somewhat Changing marketing If Big Data is changing the marketing function The vast majority of marketers that GfK spoke to considered that Big Data is important for the marketing profession. There was almost universal recognition that Big Data had changed the marketing function although relatively lower numbers had said that it had affected their own job role. Changing my job Whether job role has changed with the advent of Big Data 89 % said significantly, somewhat or a little 62 % Marketers appear to be buoyed up by the opportunities presented by Big Data but there was less agreement that this was an area for which marketers were well qualified. One of the comments we collected illustrated this well: It creates a radically different foundation for brand strategy and marketing decisions and means the marketing function will have to gain new analytical skills OR hire data scientists! How many marketers currently even know what an algorithm is, let alone how it can determine product development, placement, price point etc said significantly, somewhat or a little 3 4

4 3 Consumers aware of activity but lack understanding 49 % Of consumers consider that companies are not clear about the type of information that they are collecting about them 83 % 22 % Consumers generally have a poor understanding of the increasingly complex Of consumers believe that companies collect data about them from a wide variety of sources Of consumers claim they understand what sort of data companies capture about them in addition to the information they already provide process involved in personal data collection and aggregation, although they perceive that it is collected from a wide variety of sources. Many consumers also feel that companies are not clear enough about what information they are collecting about them. Brands can be understandably cautious on this point given the way in which consumer rights campaigners and the media can pick up on these issues. But ultimately opaqueness carries some risks for brands as consumers can be upset if information then leaks out which is counter to their expectations. 5 6

5 4 Consumer perception of what brands do with their personal data 80% of consumers believe that companies share or sell their data to other companies online There is a widespread understanding that brands will use data not only for their own purposes but also for the purposes of sharing or selling to other companies. However, a fairly sizeable proportion consider that brands don t always do too much with it (27% agreed with the statement) which suggests that they are either not seeing very much evidence of personalisation or there is little dialogue on this between brands and their customers. 7 8

6 5 Attitudes to personalisation 6 Consumer attitudes to brands and their use of Big Data 34 % 71 % Of consumers happy when companies are able to suggest things that they might like based on information they hold about them 27 % 14 % Of consumers think it is a good thing if the data that a company holds about them shapes the way they deal with them Of consumers welcome companies having access to a lot of information about them if it means that products and services better meet their needs Of consumers consider themself less likely to give business to companies that collect data about them that they have not provided themselves 81 % Of consumers consider themself more likely to give their business to companies that they can trust to use the data they collect appropriately Despite the widespread acceptance that brands collect and handle large amounts of personal information about consumers, there is at best a mediocre response to this with low numbers of consumers welcoming the positive aspects of personalisation. More needs to be done to convince consumers that personalised marketing campaigns are relevant and of value for them. Consumers are giving a strong response that they are less positive about brands that don t handle personal data in an appropriate way. There is also a firmly negative response to brands using data that has not been provided by the consumer to the brand directly. 9 10

7 7 Consumer segmentation Not all consumers react in the same way and understanding the differences in consumer perceptions between consumer segments is key if brands are to identify how to manage their Big Data strategies. Our research has found five broad segments that vary in their acceptance and engagement in Big Data driven marketing approaches. Trust seekers 20% More often female and educated, this group dislike the way in which brands hold personal data and desire greater transparency in the face of creepy activity. Enthusiasts 21% Often younger males, Enthusiasts consider the current levels of personalisation are good and are well-disposed to the way in which brands operate in this area. Suspicious 17% This group is unhappy with the way brands operate in this area and would like a better understanding of how their personal details are used plus more regulation on the way data is collected. Conditionals 17% Slightly older than Enthusiasts but often male this group is reasonably happy with the status quo but don t believe that targeting is effective given their poor experience. Sceptics 25% Somewhat lower socio-economic status, this group is sceptical whether companies are actually able to collect much data and don t see much evidence of targeting

8 8 Conclusions: The case for Big Marketing 9 Notes and Contacts It is clear brands need to better understand consumer reactions to the personalisation enabled by Big Data. There is a growing recognition that we may need to accept the premise of limits to consumer acceptance of personalisation. These limits may vary by consumer groups but it is also likely that it will fluctuate by context such as industry category or type of marketing communication. Work is currently underway at GfK to better understand these constraints. If this is the case, then marketers need to focus on using Big Data in different ways. That might be where brands generate a holistic understanding of consumers through their data trails but these are analysed in aggregate and not used for the one-to-one marketing that consumers find annoying or in some cases even creepy. Please source all information to GfK. The research combined 1011 consumers surveyed online between 30th July and 5th August with 157 marketers surveyed via the Guardian Media Network and online research panel between 30th July and 2nd September. GfK is one of the world s largest research companies, with around 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. For further details please contact GfK: Colin Strong (@Colinstrong) [email protected] or call +44 (0) So perhaps marketers should be seeking to get personal rather than always personalised. Big Data provide marketers with a massive opportunity to get new insights into the way in which consumers behave which can be used for competitive advantage. This means applying marketing best practice in innovative ways to get the big understanding from Big Data and not only considering that predictive analytics is the only solution. This is why we call for Big Marketing. Big Marketing points to a new role for the profession, one that utilises the power of Big Data but is not subjugated to it; one that draws on marketing expertise and applies this in a much more powerful and intelligent way through the use of Big Data. For the full Big Marketing Report please see the back cover and scan the QR code. The Guardian Changing Advertising Summit, brought to you by the Guardian Media Network The Guardian Media Network is an essential resource for the media and technology professional. We offer international commentary, dynamic community engagement and open access to a range of perspectives and best practices from across your sector. Join free for exclusive event discounts, first look at top jobs and latest industry content at theguardian.com/media-network Editorial enquiries contact Robin Hough at [email protected] or call +44 (0) Sponsorship enquiries contact Matthew Race at [email protected] or call +44 (0)

9 For the full Big Marketing Report please scan the QR code and download