Categories
Data Driven Channels Europe In the News UK

Online retailers bullish as competition intensifies

Online consumerThe confident outlook builds on the sales success of 2015. More than seven out of ten (74 per cent) SME e-retailers increased their sales last year. This is the highest level in the last three years: 58% reported increased sales in 2014 and 49% reported sales growth in 2013.

Online retailers are also confident about their customer satisfaction levels: 63% believe their customers have become more satisfied in the last year.

The most common factor in driving customer satisfaction is on-time delivery, voted by two-thirds (66%) of those surveyed, behind the quality of products (62%) and the price of goods (57%) as key drivers of customer satisfaction.

An easy payment process – particularly important for mobile commerce – leapt up in importance this year. E-retailers now rate the payment process as the fourth most important factor for customer satisfaction, up from eighth place in 2015.

Online retailers’ competition increasing

The overall increase in confidence in the market comes despite 53% claiming competition is more intense this year. Many have already identified new factors for competition this year: the rise of smartphone shopping (47%) and price promotions which lead shoppers to seek out the best prices (44%).

However, the main drivers of competition remain the same this year, with consumers’ price sensitivity and an increased number of websites as the main reasons for increased competition (both at 52%).

To address increased competition and increase sales in 2016, seven in ten online retailers plan to increase the number of channels they sell through: 85% are planning to list on additional online marketplaces. Half of SME online retailers intend to launch their own website.

Royal Mail Parcels managing director Nick Landon said: “Confidence is continuing to grow this year and that technology is playing an ever more important role in the retail world. Technology is influencing how people shop, where they shop and what they define as an excellent shopping experience. Our research shows that SME online retailers are plugged in to the needs of the shopper and they are taking actions to enable them to meet the demands of the discerning online consumer.”

Categories
Big Data Data Innovation Global In the News

£32bn big data sector to prove the doubters wrong

personalisationThe phenomenon of Big Data marches on, with the latest estimates showing that spending on technology and services will reach $48.6bn (£32bn) within four years.

That is according to IDC, which says that between 2014 and 2019, the market will grow at a compound annual growth rate (CAGR) of 23.1%, with the big data market comprising three main submarkets: infrastructure; software; and services.

The software segment – which it defines as information management, discovery and analytics and applications software – will be the main growth driver, with a CAGR of 26.2% over the period.

Services – which includes professional services and support services for infrastructure and software – will grow by 22.7% a year, while infrastructure (computing, networking and storage) will see 21.7% growth.

Barriers for big data market

However, despite the predicted boom time, IDC warns that there will be certain barriers for the big data market such as privacy and security concerns as well as challenges relating to the collection of personal data.

IDC programme director Jessica Goepfert re research into dataIDC programme director, Jessica Goepfert (pictured), said: “The ability to leverage big data and analytics to develop an integrated view of customer activities and business operations will provide competitive differentiation to companies across industries.

“However, in addition to the huge opportunities, big data presents some significant risks and liabilities to organisations. Companies will need to approach these ongoing challenges with awareness, flexibility, adaptability and responsibility.”

 

Categories
Data Management Global In the News Strategy and Management

Data strategies storm into global marketing teams

research_dataThe direct marketing industry has been predicting it for years and at last data strategies are sweeping through global marketing departments like wildfire as brands finally wake up to the power of customer analytics and predictive approaches.

Sir John Hegarty may not be happy about it, yet the BBH chief’s declaration that “data creates nothing; but creativity has all the time” appears to be falling on deaf ears in most marketing departments, according to new research from the World Federation of Advertisers (WFA).

The study, conducted in conjunction with The Customer Framework, found that 72% of senior marketers view data as a strategic asset, but flags up the growing potential for agencies and suppliers to get involved as more than half are only just starting to give it a central place in their marketing.

Based on responses from 32 companies with a global annual marketing spend of $35bn, the survey found that 31% described themselves as advanced or highly advanced in the adoption of data-driven marketing, using multiple data personalisation and segmentation techniques.

These advanced companies were underpinning their efforts with a range of technology solutions, including CRM systems, analytical systems, data management platforms and rules engines.

Data strategies still on the drawing board

However, not all companies are as advanced. Some 56% of respondents recognise they are still early in the journey, at best in the initial planning stage and have yet to deploy a data-driven marketing strategy.

The study also found a range in confidence in analytics, with only half “somewhat confident” and 27% “not very confident” in their ability to identify return on investment via data analysis.

Nevertheless, investment into analytics and insight is on the rise with 89% of respondents expecting to increase budgets and 31% to boost them “greatly”. The goal is to evolve the analytics function from historical reporting of “what happened” to more predictive and prescriptive approaches, something that a quarter of respondents already claim to be able to deliver.

The desire to build direct customer relationships via the use of first-party data was clearly highlighted by the research, with 73% of respondents considering this “business critical”, and 88% planning on ramping up usage.

However, with the increased use and processing of consumer data, 85% of respondents acknowledged that privacy is integral to building customer trust, and more than just legal compliance.

And it would seem that despite looming EU General Data Protection Regulation – which could trigger an opt-in marketing data regime – brand owners recognise that their ability to embrace a data-driven future relies on increasing consumer trust, which in turn, requires brands to go beyond compliance.

Some 85% of respondents viewed data privacy as an integral component of customer trust, not just legal compliance.

WFA researchMatt Green (pictured left), senior global marketing manager at the WFA, said: “It’s no secret that data has become important for marketing purposes, though it’s interesting to note that even some of the world’s biggest companies are only at the early stages of delivering data driven marketing strategies.

“Data consumption is set to increase rapidly and with that sophistication – clarifying how data will be used and how consumer privacy will be protected, should be a fundamental component of a brand’s strategy as it advances into data-driven marketing.

“Enhanced transparency and a strong value proposition will be vital to ensuring consumer trust in how the industry collects, stores and uses data today and in the future.”

Categories
Best practice Europe In the News UK

Digital CRM hit by lack of budget

CRM chiefs have delivered a cry for help over the soaring levels of customer complaints, claiming that they simply do not have the resources to deal with rising consumer expectations. In a survey launched by Lithium Technologies to coincide with National Customer Service Week, almost a third (31.2%) of CRM managers believe their biggest weakness…

This content is for Free membership members only.
Register
Already a member? Log in here
Categories
Data Management Global In the News Strategy and Management

Capacity crunch – internet ‘could be full up by 2023’

The claims, made by Professor Andrew Ellis of Aston University’s School of Engineering & Applied Science, will come as a further blow to the digital ad industry, which has been under close scrutiny of late.

He reckons that current technologies will reach their limits within the next eight years, and without radical developments and rapid deployment of alternatives, capacity will be unable to match increasing demands.

Professor Ellis, who was speaking at the recent Lightfest 2015, said: “Demand for internet capacity keeps soaring, and we’re now reaching the point where it’s increasingly difficult to stay ahead of that demand using current approaches.

“It’s incredible we’ve managed to stay ahead this long, but now researchers are finding they just cannot fit much more data down traditional fibre optic lines.

Overcoming the capacity crunch

Ellis added that unless costs are increased by deploying more fibres, there will need to be radical changes to the way data is used and distributed if the capacity crunch is to be overcome.

“We should start having the conversation now – are consumers willing to accept higher charges for increased bandwidth or can we be more considered about the capacity we consume? Will we lay additional cables, or will we look to the likes of Netflix to help us manage demand?” he added.

Categories
Data Driven Channels Europe In the News Mobile UK

Mobile woes hit retail search

Many retailers are harming their ability to appear in natural retail search results as most of their websites are not mobile friendly, are hard to use and are consequently limiting their traffic, according to a new study.

The research, by direct and digital agency Equimedia, shows – perhaps unsurprisingly – that mums are time-poor and want quick and easy access to products and services online.

They run their lives on their smartphones; 52% of all visits to retail websites came from mobile devices, surpassing desktop traffic for the first time. Yet, retailers fail to tap into this effectively.

Equimedia surveyed 65 leading mother, baby and child retailer websites and looked at specific attributes that can significantly affect their ability to rank in natural search results on all devices, and especially on smartphones. The common problems found were:

– 26% of the leading retail sites homepages are not mobile device friendly, according to Google;
– 32% of sites served content wider than a smartphone screen size making usage difficult;
– 91% had buttons that were judged to be too close together to use on a smartphone;
– 26% served content that was too small to read on a smartphone;
– 78% could do more to improve page load times with 32% needing to make significant improvements;
– 40% had page titles that were too long, 29% had meta descriptions that were too long and 9% had no meta description at all.

mobile search article, customer experience, retail searchEquimedia Group chief operating officer, Louise Burgess (pictured left), said: “Google’s recent overhaul of its mobile algorithm has shaken up mobile search results and made it crucially important that retailers ensure their sites are mobile friendly if they want to get their fair share of relevant mobile site visitors and the revenue they bring.

“In the industry sector we looked at, younger generations of expectant and new mums demand sites to be accessible and usable on all devices and will leave if a site doesn’t perform well.

“If brands are to keep pace with the expectations of their ever-changing audiences and maximise online revenues from the UK’s youngest mums as they become affluent over time, they will need to improve page load speeds, provide mobile compatible sites that are easier to read and navigate, and crucially, improve their sales funnels so that buying products using a smartphone is much easier.”

The whitepaper detailing the survey results and information on how to improve a retail site’s ability deliver to its target market’s expectations is available for download from the Equimedia website >

Categories
Best practice Europe In the News Strategy and Management UK

Money firms most trusted with personal data

Lies, damned lies and statistics; a new study beggars belief by claiming that financial services firms and public sector organisations are the most trusted by consumers when it comes to handling their personal data. Both sectors dominate the UK Information Commissioner’s Office data protection complaints league, with lenders top on 12%, local government second on…

This content is for Free membership members only.
Register
Already a member? Log in here
Categories
Europe In the News Insight UK

Morrisons’ IT chief jailed for 8 years over data breach

A disgruntled IT chief working at UK supermarket chain Morrisons has been handed an eight-year prison sentence for exposing the company’s 100,000-strong payroll database – including staff names, addresses and bank details – in revenge for being disciplined. Bradford Crown Court had heard how IT auditor Andrew Skelton had been incensed when bosses accused him…

This content is for Free membership members only.
Register
Already a member? Log in here
Categories
In the News UK

Axed DMA firm hit with £50,000 fine

Reactiv Media, the telemarketing company which was booted out of the UK DMA just three months ago, has found itself in more trouble after being clobbered with a £50,000 fine for calling people on the Telephone Preference Service.Axed-DMA-firm-hit-with-£50000-fine-300x220
Set up in June 2007 by Tony Abbott (pictured) the firm boasts: “We’re one of the largest data owners in the UK, providing the cleanest, freshest, most up to date records available.”
And, in Elland, West Yorkshire, Abbott is viewed as something of a local hero, regularly appearing in the regional press and dishing out business advice.

However, the Information Commissioner’s Office found that between November 2012 and December 2013 the TPS received 481 complaints from individuals who had received unsolicited calls from Reactiv Media despite registering with the TPS. The ICO also received 120 complaints. In May, the company was warned it faced a fine of up to £140,000.
ICO director of operations Simon Entwisle said: “The system is simple. People on the TPS register shouldn’t receive nuisance calls – full stop. Reactiv Media ignored this rule and they must now pay a £50,000 penalty.
“Nuisance calls and texts are a scourge for thousands of individuals and households across the UK. We will continue to target the companies responsible. To help us do this we are currently speaking with the government to get the legal bar lowered allowing us to enforce against more companies and send a stronger message.”

The charge-sheet for the company dates back as far as April 2012, when the Direct Marketing Commission ruled it had breached the Direct Marketing Code of Practice over nuisance calls and emails, although it agreed to change its practices.
But just months later it was in the dock again, following a raft of complaints about unsolicited calls offering PPI compensation between April and September 2013.
Despite a fresh warning from DMC, Reativ failed to respond to requests to review and change their processes and continued to generate complaints about their activities.
Its DMA membership was axed in April. At the time, DMC chief commissioner George Kidd said: “Other telemarketing companies have worked with us and turned past problems around. Those who use companies like Reactiv Media to generate leads share a responsibility. They should not be encouraging firms to bend or break rules that are there to make sure the public’s wishes are respected when it comes to telemarketing.”

This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk

Categories
In the News UK

Top brands hit by illegal data scandal

Many of the UK’s major brands could be unwittingly using illegal data to fuel their direct marketing campaigns after it was revealed that up to 90 local Top-brands-hit-by-illegal-data-scandal-300x182authorities have been selling on opted-out Electoral Roll information.
The cock-up, which has affected as many as one-in-four councils in England and Wales, has been reported to the Information Commissioner’s Office. However, instead of launching its own investigation, the ICO has asked councils that may have been affected by to come forward.
Three councils in Wales – Rhondda Cynon Taf, Torfaen and Caerphilly – and Wokingham Council in Berkshire are the only ones that have so far admitted to the gaffe.
The Daily Mail newspaper has claimed that Reading-based software company Idox is responsible for the mistake, which has seen the details of those who ticked the opt-out box passed on to third-party companies.
Although most companies rarely rely solely on ER data, it is an essential tool for charities and many data firms which supply major brands use the information for verification purposes.
A spokesman for the ICO told the Daily Mail: “The full version of the ER should only be used for elections, preventing and detecting crime and checking applications for credit. Any suggestion that it has been made available for other purposes raises clear data protection concerns.
“We are aware that a number of councils have reported that a software error has resulted in the full ER being made available more widely than it should have been. We are currently making enquiries into these potential data breaches.”
The opt-out box was first introduced just over a decade ago after retired accountant Brian Robertson won a High Court case after objecting to ER’s use for marketing purposes. He successfully claimed that the resultant “junk mail” was an unjustified interference in his private and family life.
Last year, privacy group Big Brother Watch demanded that councils should even be banned from selling the edited ER, after releasing figures which showed more than 300 local authorities sold it to more than 2,700 private companies and individuals. It claimed the sale undermined trust in the electoral
This was first published on Decision Marketing. For more breaking news and opinion pieces on direct, data and digital marketing in the UK visit us at www.decisionmarketing.co.uk