Corporate Eye

...compare, compete, excel

Archives for March 2013

How and When UK Consumers Will Share Private Data with Brands [Infographic]

private data online securityIn the 2012 Data Tracking study published by DMA (sponsored by Equifax) last week, 1193 UK adults shared their opinions about when and how they’ll share personal information with brands. The good news for brands is that the number of consumers who claim to be willing to share private data with brands has sky-rocketed over the past 18 months.

Specifically, the number of people who are willing to share personal data with brands that are “selling products they might consider buying” increased by 48% during the past 18 months. Furthermore, the number of people who are willing to share personal information with brands that are “selling products they have to buy” has jumped from 56% to 63% in the past 18 months. Another significant increase was found in the number of people who are willing to provide their name, address, and email address (referred to as “basic information”) to brands, which  grew by 63% in the past 18 months.

However, not all brands fare as well when it comes to convincing consumers to share personal data. Brands that offer clear security policies and follow best practices to secure consumer trust are having much more success in obtaining consumer private data than brands that don’t prioritize these activities.

You can follow the link above to view the full report and see some highlights in the infographic below. Key findings include:

  • Consumers are most willing to share personal information with brands they already have a relationship with (76%) and when they’re buying products (63%).
  • Consumers are more willing to share private information when they trust the company (47%), the company has a clear privacy policy (43%), or the company provides an essential service (31%).
  • Sales incentives mentioned in the study that are most effective in motivating people to share personal information include free samples (25%), money-off vouchers (25%), discounts (23%), free shipping (20%), and competitions (19%).
  • On average, consumers are most likely to share their name, followed by their email address and their mailing address in that order.
  • Of the activities included in the survey, consumers reported that they are most likely to shared  basic personal information like name, email, and address when they’re buying goods online (79% average), and least likely to share this information when they’re pledging support for a cause.

dma data tracking study 2012 infographic

Brand trust is a critical component of any brand-building strategy, and the results of this study show that building brand trust is the number one factor that can motivate consumers to share personal information with your company that can be used in future brand marketing campaigns. If you’re not already prioritizing your efforts to build brand trust, you need to do so now.

Image: Ayhan Yildiz

Multimedia: Interactivity and Engagement

Roche offers a prime example of the power of interactive elements on a corporate website. Along with a great feature on the value of innovation,  they also offer information in  multimedia format along the sidebars of the page. In addition to these elements, the user can engage with popups on the interactive timeline section. And as a subtle yet excellent attempt to gather user feedback, they have placed a rating scale in the lower left hand side of the page.

These interactive elements mean that the user is actively engaged at every click through. This piques user interest and drastically reduces bounce rates. Most of all, interactivity connects the audience with the corporation, thus enhancing trust and perceived authority of the corporation.

3-2-1 Action: The Secrets of Video-Mediated Communication

An increasing amount of organizations are incorporating video-mediated communication (VMC) into their website. VMC can include communication methods such as video conferences, video blogs, and video press releases. Their rising popularity indicates that corporations need to know the secret to making their VMC strategies successful.

As with all content, audience connection is key.  Without an engaged audience, any type of content, including VMC will be ineffectual. Audience engagement is dependent upon how the audience cognitively processes the content. 

So, the most important question to answer is how an audience processes a video message.

Regardless of mode of communication, audience engagement is key to persuasion and conversion. According to the Elaboration Likelihood Model (ELM), a prominent theory of persuasion, humans inherently strive to think as little as possible, and will unconsciously adjust their information processing methods to fit the cognitive needs of the situation.  The theory states that an audience will process a persuasive message (i.e. video blog, video conference) in one of two ways: via central processing or peripheral processing.  And cognitive load, or the amount a person has to think, determines which of these processing routes they take. [1]

  • Central Processing:  Central processing is characterized by intense scrutiny of the credibility of the source and the content of their argument. Central processing is common in settings where knowledge is shared in face-to-face communication, such as a business conference or presentation.
  • Peripheral Processing:  When an audience uses peripheral processing to process a message, they are more affected by the likeability and attractiveness of the source, as opposed to the validity of their argument.  This type of processing occurs when the cognitive load is too heavy for central processing. Multiple factors can activate peripheral processing; sometimes the audience is simply not interested in the topic, or they are distracted by other stimuli.

 

Corporations that are adopting VMC often ask whether VMC is processed via centralized processing (i.e. face-to-face interaction) or via peripheral processing. This is an important question, as the answer determines how to structure VMC website content.

Some believe that VMC behaves just like face-to-face communication and is thus processed via central processing.  Interestingly however, this is not the case. Research into VMC reveals that people use peripheral processing when viewing a videoconference as opposed to attending the conference in person.  This means they are more influenced by speaker’s likeability than the quality of the speaker’s message.[2] The researchers highlight the role of cognitive load. In regards to knowledge sharing, levels of cognitive load seem to be higher for VMC than face-to-face communication. In other words, people have to think more when processing communication in video form as opposed to listening to a speaker in person.

Research mentions the possible role of distractions that are unique to video media as opposed to face-to-face communication.  Background noise, interruptions, time pressure, and visual distractions that do not typically occur during face-to-face knowledge transfer are common in the settings where people will watch a video blog or videoconference (i.e. busy office setting)

Therefore, it seems that a likeable speaker is essential to any VMC strategy. However, if an organization wishes to emphasize their message over the likeability of their speaker, research suggests they should minimize distractions and use tactics that highlight informational cues, such as turn-taking or audio-location indicators.

VMC adds interest and variety to any corporate website. It also increases the amount of content available to an online audience, thus increasing exposure and the likelihood of conversion. While VMC is an excellent and personalized strategy to engage an audience, corporations should carefully plan how it is presented.

 

References

[1]Petty, RE & Cacioppo, JT: Communication and persuasion: Central and peripheral routes to attitude change

 [2]Ferran, C & Watts, S: Videoconferencing in the field: A heuristic processing model

Don’t Redefine Market Segments, Redefine Market Segment Perceptions

college classroom desksThe market segments that existed 20 years ago have changed significantly with the spread of wireless devices, instant communication, instant access to information, and instant gratification. The parameters used to define college students, teens, and twenty-something market segments have seen some of the biggest changes, and those changes have led to significant misperceptions about the people in those segments.

This is something that Mike Poznansky learned first-hand during his seven years with Red Bull where he led the brand’s college program (he left the company recently to start his own agency, Neato). In an interview with AdWeek, Mike shares some insights that every brand manager should read. Rather than suggesting that marketers should rely on redefining market segments to stay relevant and boost ROI, he suggests that marketers should redefine their perceptions of market segments, particularly the college student segment.

When asked what misperceptions are causing brands to falter with the college student segment, Mike explained:

“[It’s a misperception] that a [brand] ambassador program is the lifeblood of a college marketing program, or that all your focus should be on getting your brand and your product on campus. To color that in, just a fraction of the college experience takes place on campus. Most students don’t even live there. Most of their spending isn’t happening there. So, some brands are just frankly investing way too much money on the wrong things. You really need a comprehensive approach. You’re not going to achieve everything through one vertical.”

Integrated marketing is the key to success across market segments these days, and getting a better understanding of the people within those market segments in 2013 is critically important. Mike explains that college students affect more purchase decisions than ever as parents seek out their help in finding information about products and services online. He also notes that college students are the future power consumers, so investing the time, money, and resources into better understanding this new generation of hyper-connected consumers who don’t remember any other way to live than connected to their mobile devices 24/7.

Consider the market segmentation you’ve done to maximize your brand marketing efforts. Do you really understand the people within each of those segments in 2013, or is part of your “understanding” based on outdated misperceptions? People have changed, and your understanding of your market segments has to evolve to keep up with them. The “traditional” college student buyer persona is anything but traditional these days.

What do you think? Leave a comment and share your thoughts

Image: Tiffany Szerpicki

Careers: Demonstrating Popularity

Novo Nordisk, a leading global healthcare company for over 90 years, provides the number of applicants and nationalities that applied for their 48 graduate positions. Novo Nordisk employs approximately 34,700 employees in 75 countries, and markets products to over 180 countries. By displaying the high number of individuals applying for their graduate positions, they are accomplishing two marketing maneuvers.

First, this information confirms the fact that they are a desirable company to work for, thus attracting talented applicants for other positions. Secondly, such information reinforces their company brand as a leading global and diverse healthcare company

Which CSR meaning floats your boat?

Always, there’s a moment when the penny drops.

For me, in comedy, it was somewhere between:

Listeners who are listening will realise Minnie and Henry are talking rubbish.  There are no elephants in Sussex, they’re only found in Kent.  North of a line drawn between two points, thus making it the shortest distance.  (The Dreaded Batter Pudding Hurler of Bexhill on Sea / The Goons)

and

Why not … collect those little metal bottletops and nail them upside down to the kitchen floor?  This will give a sensation.. of walking on …  little metal bottletops nailed upside down to the kitchen floor. (Design For Living / Flanders and Swann)

The same can be said for CSR, or whatever you want to call it.  There’s always a moment when some word or phrase triggers something in you and that’s what drives you forwards.

For me it was sustainability, although I’ve recently been told that’s passé and business is now all about resilience.

So in this riddle of different CSR meanings, I wonder which of the following floats your boat?

[Read more…] about Which CSR meaning floats your boat?