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Europe In the News UK

UK households each set to splash out £4,000 online this year as web takes 20% share of all retail spend

  • Online spending now accounts for a fifth of all UK card spend and is growing 11 per cent a year
  • £107 billion is expected to be spent online in the UK this year – an average of £4,000 by each household
  • A third of UK online sales are made on a mobile device, with men most likely to buy on their phone or tablet

As online shopping celebrated its 30th anniversary last month, new figures show that online transactions now account for 20 per cent of all credit and debit card spending in the UK.

According to Barclaycard, which processes nearly half of all the UK’s debit and credit card payments, more consumers using online shopping than ever before is helping push up spending on the web by 11 per cent a year.Digital shopping

This reported growth is supported by figures from IMRG, the UK’s industry association for e-retail, which expects the UK to spend £107 billion online this year, breaking the £100 billion per annum mark for the first time. This equates to an average of £4,000 spent online by every UK household.

Barclaycard’s data shows that music downloads have become the fastest growing category of online spending – last year alone it grew by 124 per cent and 79 per cent of all music is now bought online.

Airline spending occupies the top spot for online spend share at 80 per cent, propelled by the boom in low cost airlines and the move to e-ticketing by carriers. Already this year the number of online airline transactions is up 5.6 per cent and total spend is up 4.2 per cent on an inflation-adjusted basis.

As more concert and entertainment tickets are sold and advertised on the web, online spending on these events almost doubled last year.  Just under half (49 per cent) of all spending now takes place online; as does 59 per cent of cinema and theatre spending as consumers research events and book online before heading to the venue.

Although spending online in DIY and Garden Centres is still comparatively low, the booming housing market is leading to huge increases with 37 per cent online spend growth this year.

Chris Wood, Barclaycard managing director, said: “Online shopping has come a long way since it first emerged in 1984 and now accounts for one in every five pounds spent on credit and debit cards in the UK. More and more of us are turning to the web to research, compare prices and buy everything from cinema trips and electronics to the latest fashions, making it an inextricable part of modern retail.

“The music and airline industries are prime examples of where businesses have fully embraced the potential of the internet and have made it their main source of business. These sectors show it is vital for retailers to move quickly to keep pace with their customers’ desire to shop online, where they can build deeper relationships and engage with customers, or they risk being left behind.”

The proliferation of mobile devices has clearly driven online spend, as IMRG data shows that nearly half (45 per cent) of visits to online retailers and a third of all online sales now come from mobile devices – smartphones and tablets.

This has in turn led to the morning commute becoming one of our favourite times to browse, with online sales also spiking at lunchtime on laptops and in the evenings on tablets whilst we sofa surf for deals whilst watching TV.

And according to IMRG, men are more likely to buy through a mobile device, at 64 per cent, compared to women at 59 per cent.

Andrew McClelland, chief operations & policy officer at IMRG, said: “Today’s consumers are just getting to grips with the opportunities that technology brings to their everyday lives. Everything from booking a taxi through to buying a car can be done through digital channels.

“Over the next few years, internet shopping will increasingly become the norm as more of us become accustomed to researching and buying products through online stores. The devices we purchase from are also likely to change in the next few years, whether it’s through shopping online using our smart watch, or programming our smart fridges to order groceries online as soon as they’ve run out.”

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Story-telling that wins business

Chris Merrington (pictured) tells how to influence, engage and inspire potential customers.

My youngest daughter and I were cooking a Chinese meal. She was preparing the vegetables for a stir fry and I was preparing the chicken dish. She served up her dish, I served up mine. In her vegetable stir fry was some asparagus. However, it was the wrong end of the asparagus! I asked her where the asparagus tips were. She said, ‘in the bin’. I explained those were the ends to keep, the harder ends were the ones to be binned. She said, ‘I’ve never seen or cooked asparagus before.’chris-merrington-web1

We muttered quietly at each other. Whose fault was it? Mine! How often at work do we assume and expect other people to know what we mean and have had the same experiences as we have? How often do we get annoyed when they get it wrong when probably we are to blame?

I have been working with various clients in my workshop “Facts Tell, stories Sell” to uncover and craft their business stories. Great business stories can differentiate your business from competitors and can inspire and create a powerful vision for the client in their mind’s eye. You can use them for new business presentations, add colour to case studies, tell existing clients to consider other parts of your business, to attract new employees and to warn clients to the danger of doing nothing or taking the wrong course of action!

Stories are one of the most powerful ways to persuade someone and I believe aren’t used enough in business presentations. A story is a fact wrapped in an emotion that can compel others to take action. We are wired to listen to stories and they have universal appeal. It lets the listener decide for themselves and is a soft sell compared to simply stating the facts. The listener doesn’t feel ‘sold to’. Stories allow reflection and connect with a client often on an emotional level. People also remember stories long after the facts they were told.

In a nutshell stories can help you win business.

What makes a great story? Knowing the right story to tell and telling the story right are crucial. Ideally it should be short and punchy while painting necessary detail. Be clear on your purpose of telling a story. I find the best stories are those that are true and resonate with the audience – typically, those which have happened to me and are true. Stories about success and failure are often powerful. Mistakes and their learnings are typically good sources as they have an honesty and authenticity which can build trust.

What are the typical mistakes in stories and story-telling? Cliche stories and telling other people’s stories are normally a mistake. Rambling unnecessarily will bore the listener and lose their interest. There is a fine balance between too much and too little detail. Don’t start with cliches such as ‘Once upon a time…’ or ‘Let me tell you a story…’. Lack of clarity will spoil a story where the audience can’t see the point.

When shouldn’t you tell a story? If your client is impatient or tight on time it could be frustrating for them to listen to your story.

There are many different story structures which I teach on my ‘Facts tell, Stories sell’ workshop. One of the simplest is Situation, Complication, Resolution. You set up a Situation that the ‘hero’ faces which resonates with the listener. Followed by a Complication, challenges or problem, often one familiar the listener. There is then a Resolution, ideally unexpected, to the problem. Some of the stories i’ve told have involved disastrous business situations because they didn’t have insurance, that’s why im recommending Professional Indemnity Insurance companies like constructaquote.com

For example, I was running a workshop for a client and all was going well (Situation) and the fire alarm went off. We all had to evacuate the building. I was concerned this would throw out my timings (Complication). Outside the client’s building I found myself in conversation with the CEO about my work and their business needs. Within a few months, a handful of workshops are booked by this same client directly as a result of my conversation with the CEO (Resolution). what’s the point of the story? That what we see as a problem can be a wonderful opportunity.

I have found within my ‘Facts Tell, Stories Sell’ workshop there are usually wonderful untapped stories within my clients’ businesses – a goldmine of business stories to differentiate, to demonstrate and to persuade clients and prospects. Many years ago, there was a UK TV series called ‘Tales of the unexpected’ – what unexpected stories are waiting to be discovered in your organisation? Start building your collection of business stories.

Chris Merrington is the author of Why do smart people make such stupid mistakes? – a practical negotiation guide to more profitable client relationships. Chris regularly consults and runs workshops for senior management and sales teams in the areas of Negotiation, Trusted Adviser Selling and Winning New Business. He can be contacted at chris@spring8020.co.uk

 

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Americas Europe In the News UK USA

‘Consumer trust in new domain names is growing’

 New data from Afilias reveals that consumers increasingly welcome dotBrand domain names 

New research has highlighted that consumers in the US and UK are increasingly open to the world of new, generic top-level domains (gTLDs), as the Brand Loyalty On Laptop Showing Successful Branding And Satisfaction Expertisenumber that would trust addresses at the new extensions has increased since last year.  Conversely, the number stating they would only trust heritage domains like .com and .co.uk is decreasing.

The new findings, commissioned by global registry services provider Afilias, are based on a large sample of 3,469 internet using consumers in the UK and US. The study revealed a significant decrease in the number of people stating that they would only put faith in heritage domain names, dropping from 54% in 2013 to 39% in 2014! The findings also showed that 25% of consumers would trust new domain name extensions just as much as the heritage domains – this is an increase of 4 percentage points in the past 12 months.

Roland LaPlante, senior vice-president and CMO, Afilias, said: “Major global brands are now preparing to launch their own “dotBRAND” domains in order to capitalize on the branding, security and customer experience advantages they will now have over competitors.  Brands without these advantages must prepare quickly for ICANN to open the next window, as consumers are showing an increasing willingness to accept and even trust these new addresses.”

The release of the figures coincides with the upcoming arrival of new gTLDs from major global brands such as Google, Microsoft and Nike, who are all set to create their own ‘dotBrand’ domain names at the top level (eg. running.NIKE instead of nike.com/running).

Further, people are now more willing to purchase from a branded gTLD than they were a year ago. In 2013, 13% stated that they would prefer to buy from ‘shop.adidas’ over ‘adidas.com/shop;’ this year, that preference has increased to 18%.

In 2014, nearly one third of people (32%) said that they would be more likely to trust that legitimate goods and services are being sold on a site that uses a dotBrand extension (with only 10% being less likely to trust a dotBrand site).

Importantly, the data show that 13% of people would feel that brands are ‘behind the times’ if they were not using branded domain name extensions.

LaPlante added: “The arrival of new domain names is an historic chapter in Internet history.  Even before they have all fully launched, consumers are warming to the notion of new domains. The research reinforces our belief that within 5 years most global brands will be operating from dotBrand Internet addresses.”

 

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In the News UK

UK consumers like coupons, more so than ever before: survey

coupon41In the battle for consumer spend, discounts win.

  • 84 per cent of supermarket shoppers use coupons
  • Consumers saving £3 billion a year through coupons
  • Coupons are used widely across all demographics.
  • Rise of the discounter – 30% of all shoppers are frequenting these stores more than a year ago.

Shoppers’ savings are increasing with over a third of consumers saving at least £5 a month by using coupons – up 10 per cent on 2013 figures, according to coupon experts Valassis. This adds up to benefits of around £3 billion a year for coupon-hungry consumers.

The recent survey of 1,000 UK adults by Valassis found that shoppers’ coupon cravings show no signs of diminishing with 84 per cent of supermarket shoppers using them. Promotional seeking behaviour is becoming increasingly ingrained among consumers with almost a third of people stating they are looking for promotional offers more than they were a year ago. This is coupled with a large decline in consumers stating that they never use coupons. Now, just 16 per cent of shoppers state they never use this promotional mechanic versus 26 per cent a year ago.
 
Although consumers are seeking out and benefitting from savings when they shop, supermarkets are not reaping the rewards. Almost all consumers – 93 per cent – claim they will ‘shop away’ from their regular outlet if other retailers are advertising better offers. This behaviour is surprising given the increasing investment by many supermarkets to attract and retain customers.

The supermarkets who stand to benefit the most from savings savvy shoppers are the discounters and Valassis’ survey confirms their popularity. Nearly two thirds (64 per cent)  shoppers use these stores and this is a growing trend –  30 per cent of consumers visit discounters more than they did a year ago. Britain’s ‘big four’ supermarkets Tesco, Asda, Sainsbury’s and Morrisons all face a growing challenge from cheaper retailers with recent industry data showing sales at Aldi surging 33.5 per cent and Lidl up 16.6 per cent.

This bargain-driven behaviour among consumers remains prevalent despite many shoppers feeling more confident about their personal finance situation. Almost a fifth of people claim to now feel better off, a marked increase from 2013.

Charles D’Oyly, managing director at Valassis, said: “The supermarket wars continue to be white hot with the battle for consumer spend as fierce as ever. Consumers have grown accustomed to discounts, with coupon usage now forming an integral part of the shopping trip, so it’s no surprise that we are witnessing record volume redemption rates across a variety of products. Retailers appear to be tapping this trend by creating their own uniquely issued coupons to drive more traffic into their stores.”

The survey also revealed that coupons are used widely across all demographics, with a quarter of ABs saving at least £10 a month, up from 15 per cent last year. This compares with just eight per cent of DEs who save the same amount, finally busting the myth that coupons are for people who are less well off.

The survey of 1,000 nationally representative adults was conducted by Gfk NOP on behalf of Valassis between 11 – 13 April 2014.


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Making effective use of giveaways at your exhibition stand

Richard Edwards looks at what makes an exhibition giveaway effective – and what is just a waste of money.

Are giveaways at exhibitions a great way to build your brand, attract footfall and generate new business? Or are they a waste of logo_umbrelatime and money that end up being ignored or simply thrown in the bin?

The answer is some are some aren’t. In other words, not all giveaways are useful.

So how can we make sure that your giveaways and other freebies are useful in helping to convert business? The key is to align giveaways with your key objectives.

Pinning down your key objectives should be your first step. Then it’s time to think about what type of giveaways will best help you achieve them.

Here are my top tips:

Objective 1: Gaining awareness
If you’re hoping to gain more brand awareness from your exhibition then your giveaways should focus on visibility. Frequency of impressions is a key indicator as to how memorable your brand will be, try getting the best and the most affordable exhibition display stands, to impress your visitors. As such, your giveaways need to be designed entirely around your brand name and logo and be the type of item that people would actually use, preferably in a working environment.

Some ideas that Quatreus has seen work well include:

  • An environmentally-friendly tote bag
  • Branded post-it notes
  • Branded teabags
  • Something for children


Objective 2: Advertising your brand messaging
If you have certain brand messaging that you want to convey at a trade show, then your giveaways could provide useful visual reminders and/or include extra detail beyond just your branding. For example, a print and fulfillment company might be able to demonstrate their personalised printing process on a small scale, printing visitors a personalised business card to take away with them.

Many companies still choose to produce brochures however these are often lost among the pile and may never be read. One way in which Quatreus has helped clients combat brochure overload is to send the information as a digital attachment, straight to the visitor’s inbox, while they are still on your stand.  This technology, called qbit, allows you to form an instant and lasting connection with trade show visitors without loading them up with expensive and heavy printed brochures and pens.

Some other creative ideas for you to try:

  • Witty t-shirts 
  • Branded USB drive 
  • A clever gadget or app 


Objective 3: Making contacts
Traditionally gathering contacts was done simply by exchanging business cards, but the sheer scale of modern trade shows makes finding the right business card afterwards an event in itself.

Offering cool freebies as an incentive to collect contact details can increase numbers of sing-ups but ultimately provide low-quality leads at a high cost.

Digital signup or contact exchange can be facilitated with an online data capture tool like qbit, possibly in conjunction with giveaways.  There are also QR-codes printed onto signage that can be scanned with a smartphone to reach a signup form. Or a live-tweet screen can provide visitors with the perfect excuse to connect over social media whilst contributing to your marketing effort.

Some other interesting ideas include:

  • Demonstrate with their details – Use your product or service to demonstrate using a visitor’s details, e.g. Quatreus might use qbit to help sell qbit, collecting contact details in the process
  • Prize draws – Giving away one high value item to the winner of a prize draw can often be more attractive than little giveaways
  • Offer coffee – Good-quality free coffee or tea is the holy grail of trade-show giveaways, and the advantage of offering it is that it keeps visitors at your stand while they drink it


Conclusion
Whatever objective you decide to pursue at your next trade show, the important thing is to think creatively. If you can come up with a creative item that is fun or useful, and which represents your brand and/or USPs, then it will draw in visitors and you will remain in their consciousness long after the trade show has finished.

Richard Edwards is a director at Quatreus, which specialises in creating face to face experiences that strengthen relationships and improve communication – for both internal and external audiences. 


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In the News UK

A fifth of businesses are yet to develop a Social Media strategy

New research suggests that a fifth of businesses in the UK are yet to develop a social media strategy, with only a third actively using it as a medium to Social Media Computer Key Showing Online Communitypromote their products or brand.

A further third of businesses have made initial attempts to utilise social media before giving up on the process.

According to a new report just released by a catalogue and direct marketing specialist, 20% of UK businesses are yet to put a social media strategy in place, with only 31% actively using social media as a marketing platform. Comparative statistics from a similar report last year, suggested that 67% of businesses used social as a marketing tool, implying that the use of social media has dropped by a third in the space of 12 months.

The report, put together by direct marketing, design and print specialists Catalogues 4 Business (C4B), questioned more than 300 UK organisations as part of research into corporate marketing strategies. Respondents to the study were drawn from a diverse mix of businesses, both B2B and B2C, which spanned multiple industry sectors.

According to the findings, social media (31%) is widely used by companies as part of their marketing approach. However when compared to a C4B study from 2013, there has been a 36% drop in usage, suggesting that many businesses attempt to adopt social media, before giving up.

Ian Simpson, managing director of C4B said: “I find it a real eye-opener that social media was a more popular tool for businesses in 2013 than it is this year. I would’ve assumed that this figure would have risen, not fallen so dramatically! Does it imply that many businesses have made an attempt before giving up? You would expect all companies to have social media included in their marketing mix. It’s a fantastic method of customer interaction – for both existing and potential customers. Perhaps an insufficient social media strategy failed to see initial attempts get off the ground.”

The report revealed that, despite its drop in popularity, social media is still the fifth most effective marketing tool for businesses. According to the study, 14% of respondents stated that their social media strategy successfully delivers sales, whilst networking was cited as the number one driver at 24%.

The study also found that social media was often used in conjunction with a catalogue as part of a wider marketing plan, with 33% of socially active businesses also implementing a catalogue in their strategy. In addition, the results suggested that 46% of companies that used email marketing utilised a catalogue alongside this approach.

Simpson added: “Companies that don’t have a social media strategy are missing out on a key method of communication with their customer base. If you use catalogue marketing, social media helps to provide a bridge between you and the consumer. Some people are reluctant to pick up the telephone for a minor query, and this is something that social media can help with. A simple question from a customer, followed by an accurate and timely response, will help to form a bond and demonstrate that you value their feedback and interaction.”

The study also looked at the most popular platforms that businesses opted to use when executing their social media strategy. The results revealed that Facebook was number one at 40%, followed by LinkedIn (35%) and Twitter (33%). Google Plus, which didn’t even feature as a relevant marketing tool in last year’s report findings, is now used by 17% of businesses that have invested time on social media. “The significance of Google Plus’ entry this year can’t be ignored. Whilst Facebook and Twitter, with their widespread consumer appeal, and LinkedIn with its B2B benefits are obvious players, Google Plus is definitely on the rise. The positive SEO effects of using the platform means that businesses really should be considering Google Plus as a serious marketing channel if they want to improve their position in Google search rankings”, Ian added.

To download a copy of the full report – ‘Channel Vision – Version 3.0’ – click here or phone: 0845 2300 258.

 

 

 

 

 

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Transforming online strategy with CRM

The key to successfully changing the customer relationship and driving end to end self-service has to be accurate, in-depth customer information that encompasses the entire customer lifecycle, from lead acquisition through contracts to orders and complaint resolution. John Cheney (pictured) outlines the role of CRM at the heart of any web-enabled customer strategy.John_Cheney

Changing business model

Offering web enabled services to customers – whether business or consumer – is no longer a nice option, it is essential. Businesses now have diverse opportunities for transforming the quality, timeliness and engagement of the customer experience – just look around at the Wi-Fi enabled Kindle support or the provision of location-based services to mobile customers.

Get the online strategy right, and organisations can not only embed customers within the business, improving retention and increasing average customer value, but also significantly reduce costs in the process. However, while the web provides a number of ways for organisations to change the way they interact with customers, these services can only be delivered successfully if they are based upon accurate, detailed, up-to-date customer information.

Unfortunately, few organisations are yet to realise this vision.  Many have made the mistake of taking a website development route, which has simply created another information silo. Others have enabled customers to raise support calls via an online trouble ticketing system – but that constrains the web portal to a specific sub set of information and, in turn, restricts the employees, teams and/or departments that have access to the data. At the same time, companies are looking to implement an online CRM system that will provide sales staff with online access to information and, at best, allow customers to undertake self-service updates of basic contact information. The problem is that none of these developments work together; resulting in a fragmented and flawed online business model.

Tactical Deployments

These web enabled deployments have been tactical solutions in response to specific operational requirements and taken in isolation they make sense. Adding a web front end to a trouble ticketing system undoubtedly makes it easier for customers to lodge complaints or support requests out of hours; while offering access to an online document portal enables customers to adopt a self-service method to check contracts or order statements rather than call or email – saving time for both parties.

However, the business implications of failing to join up these processes can be significant. With siloed information sources, it is far too easy for a customer services team to waste resources by providing support to a customer that has not renewed its contract; or for the online sales process to automatically accept an order from a customer with a poor credit history.

These tactical solutions may deliver short term wins but they are not sustainable in the longer term. Organisations need a far more effective way of embedding every aspect of the customer interaction and relationship within the business – and that means taking a strategic approach.

CRM Enabled Strategy

At the heart of this transformation must be a single source of information that encompasses every aspect of the customer interaction – from initial lead generation through to contract, order history and customer support. And the best place to hold that information is within the CRM. Integrating this central resource of customer information, that includes everything from financial transactions to customer preferences and order history, into the website enables an organisation to leverage existing investment whilst creating an end to end solution that delivers a seamless experience for customers.

Of course, this model allows the business to provide customers with self-service access to information that would previously have required a telephone call or email – from copies of invoices to outstanding orders. It allows a customer to track a product inquiry or on-going support issue 24×7. It also enables customers to update information, place orders and make payments online at a time that suits them. Essentially, enabling self-service online activity reduces the burden on the organisation, significantly cutting costs and driving down the administrative overhead.

However, a CRM enabled web strategy offers even more. By capturing every customer interaction in one place, both off and online, the business can gain new depths of understanding that can be used to transform the customer experience – from tailoring information to reflect customer requirements to exploiting better customer insight to drive effective cross- and up-selling activity. For example, if a customer is constantly logging support calls about a certain product, the organisation can automatically present content that leads the customer towards relevant training courses or highlights the benefits of a product upgrade. The online content can similarly be tailored in response to a prospect or customer who has responded to a specific mailshot, for example by presenting a relevant case study or product offer.

Critically, because every interaction is captured within the CRM, the business is continually improving its customer understanding and can use that insight to enhance the experience, increase average customer value and meet retention objectives.

Conclusion

Web enabling the business is now a fundamental component of any corporate strategy. But this does not mean building this functionality directly into the web site on its own; the result will be a complex, unmanageable mess of separate integrations with three or four separate back end systems. Instead, the CRM system should be the hub of the entire customer relationship strategy, providing a single platform to support all business transactions both on and offline.

With the right approach to CRM enabling the web strategy, organisations can deliver customer self-service and improve the quality, timeliness and relevance of information and services. The result is stronger customer relationships, reduced costs and a chance to exploit customer information to improve up- and cross-selling. With customers increasingly demanding an integrated online business model, can any organisation afford to miss out on this opportunity to consolidate, integrate and improve the overall customer experience?

John Cheney is CEO, Workbooks.

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Avoiding the four pitfalls of customer experience management strategy

Be mindful of CEM challenges, says Udesh Jadnanansing (pictured).Udesh Jadnanansing, Mopinio (WEB)

On an almost daily basis, I speak to companies about their thoughts and strategies on providing the best possible customer experience and it’s fair to say that the vast majority view it as a high priority on their business planning agenda.

However, in the real world, the challenge is often converting great ideas into a practical operational plan that can really improve the customer experience.

In my experience, there are four key pitfalls that many organisations face when searching for the right Customer Experience Management (CEM) strategy for their business and it is worth all management teams being mindful of them and planning to avoid them:

Departmental silos

It’s very easy when you are setting up a CEM programme for it to become a project for just one department, rather than involving the whole organisation. You want to develop a consistent customer experience that emanates from across all your departments and is an integral part of your brand values. I like to envisage it as the ‘DNA’ of your business, it should be part of the way the organisation operates and letting the programme fall into small isolated silos will make this very difficult to fulfil. The CEM strategy must involve the entire organisation and all of its touchpoints to achieve this.

Think of your business from the customer point of view – they will not see your organisation as a number of departments but as a single entity. Customers only see your products or services offering and are looking to get a particular job or need fulfilled by your organisation – anyone from outside the business is unlikely to care how it is organised. Implementing a CEM strategy for just the contact centre may fail to cover other parts of your business that are also customer-facing – such as your stores/branches and the customers they serve, for example. The entire organisation and all its parts need to take ownership of CEM and ensure that the strategy is carried out wherever a customer comes into contact with it.

CEM is more than just the tools you use

In contrast to what some software providers would have you believe, integrating a CEM software platform into your processes is not the complete answer to delivering a great customer experience. Technology is a great tool, but on its own it is just a facilitator and not a panacea for all your needs and goals. When developing a CEM strategy, it’s important that it is a strategic choice encompassing the whole organisation – ultimately, it is the people within the organisation who will drive forward the changes that are implemented, not the technology that is used. To fully embrace a new CEM strategy, a company needs to work from the outside in, to ensure it works efficiently to benefit customers and addresses their needs, rather than simply being designed to fit convenience internally. This can be a real challenge for many organisations because it involves really listening to customer feedback and acting on their actual needs, rather than delivering preconceived brand promises about great customer experience and excellent service. While there is no clear vision that focuses on cultural changes, even the most advanced IT solution will fail to properly implement an effective and fresh CEM programme.

Focus on positive customer feedback as well as the negative

It’s all too easy to simply focus on the negativity from dissatisfied customers, as their voice will often seem the loudest. Obviously managing customers that are at risk and making them happier is a vital part of any successful CEM programme – but what happens with those customers that genuinely really love your products and services? These customers are ambassadors for your company and its offering. Additionally, they offer a lot of valuable insights and positive feedback on the things you do well – this will show you exactly why they are so enthusiastic about your business, preventing you from changing your proposition and inadvertently discontinuing the very things your customers like!

Focusing on the positives is also hugely beneficial internally, giving your team pride in what they provide, demonstrating why your business makes the offerings that it does and boosting the self-esteem of the whole organisation. Additionally, sharing positive feedback publically has been shown to boost revenues markedly and adds great kudos to your reputation.

Fully understand the digital experience

Many people tend to underestimate the complexity (or often over-complexity) of their business’ digital channels. It’s very easy for organisations to plan and develop their digital channels so that they are more complex than traditional touchpoints, whether they need to be or not, sometimes simply because the functionality is available. Prospects and customers can perform many tasks and services themselves through one website portal – searching for product information, managing their online account, using self-service tools, asking questions online through IM and obviously buying new products. This is a very different proposition to a more traditional contact centre call which will typically be done for a specific purpose or issue, such as a specific service related question for example. It’s important to understand this and ensure you are meeting your customers’ needs and expectations fully.

Your digital offering is also another area where it is vital to avoid being reliant on isolated departments within the organisation. This will make it harder to offer a consistent service but equally, makes it harder to correlate any feedback or insights back to all parts of the business. The technology is now available to ascertain exactly how visitors are using your website and to ask them questions about what they like, what they don’t like and what they would like to see in the future – when it is most relevant for them. This offers a much wider view of the digital customer experience and consequently helps to get a much clearer understanding of the whole customer journey and its suitability for your clients.

 

Udesh Jadnanansing is founder and managing partner at Mopinion.

 

 

 

 

 

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Attracting consumers’ attention with an on-pack promotion

Simon White (pictured), of Protravel, discusses how brands can differentiate themselves from the competition without lowering prices. 

 How to catch consumer’s attention in supermarkets is an ongoing challenge for FMCG brands. Money-conscious behaviour that came about because of the recession is now entrenched for many and, as a result, some brands are continuing to promote on price for fear of losing sales. ‘Buy one, get one free’, ‘50 per cent off’, or ‘25 per cent extra free’ all attract the attention of consumers during those few seconds when they are at the supermarket shelf making decisions about what to put into their trolley, but these all cost the brand money and ultimately devalue it.Simon White - sml

So what can brands do if they want to attract consumers yet maintain their margins and avoid price-led offers? Added value on-pack promotions can achieve that goal and are one way for a brand to differentiate itself from the competition. Few consumers will remember a slight price discount on their tea bags for very long, but they will remember something like a family day out, or a weekend break. Promotions such as ‘buy this for your chance to win’, ‘buy this and kids get a free pass to…’ or ‘buy three of these and get….’ enable a brand to engage with its customers and potential customers on a level that is not price-related and can be run for a fraction of the cost of giving product away or discounting.

Given the potential packaging issues with some retailers, many brands are opting to use vouchers either as part of the packaging or as a Fix-a-Form® leaflet-label when space for the promotion is at a premium. However, due to cost, timing and space not every brand can run an on-pack promotion.  In these situations many will opt to communicate the message near pack on point-of-sale material, directing the consumer to an online or text entry mechanic. Proof of purchase is always desirable and this can be achieved by asking consumers to upload a copy of their receipt, for example. For competitions, entrants should be asked to retain their till receipt so in the event they win the brand gets that link to purchase.

Choosing the correct mechanic for the promotion is paramount, and this varies depending on the audience, the reward and the product or service being purchased. For example, if the reward is a free flight then it is quite reasonable to expect the customer to download a claim form, stick a stamp on and post it in. However, for a competition entry then a text to win or click to win would make more sense.  It is still the case that older people are more comfortable using the post, whereas younger people prefer text, email or apps. The use of URNs and an online mechanic allows enhanced communication with the consumer, plus the opportunity to reinforce the brand messages and collect essential data. Collector schemes also remain popular as they increase repeat purchase and allow data collection.

What is vital is to ensure that the mechanic is seen to be relatively quick and simple to do by the target audience in relation to the prize or reward on offer in order to generate a high level of response.  To achieve this, many brands are using a redemption mechanic which enables them to take a fixed fee approach. This allows them to budget for the promotion and offer more big prizes or a larger reward for the available budget while allowing somebody else to take the risk on the level of redemption.

An on-pack promotion is a focused marketing tool that is highly effective in influencing purchasing decisions. And for those brands that really get it right, the added value provided by positive PR and social media buzz can boost the impact of a promotional campaign hugely.

 

 

 

 

 

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Europe In the News UK

Majority of under-45s now own a tablet: report

Newly released data from Kantar Media’s syndicated study, futurePROOF, shows that tablets have become mainstream consumer Usando-tableta-facebook-apple-iosdevices, with more than half of 16-44s now having access to them.

45% of all GB adults now have a tablet compared to 32% a year ago, and 36% at the end of 2013. The highest penetration is among 35-44s where 58% of adults now have at least one tablet in their home. Presence of children is the strongest driver of this, with 69% of parents of school age children having a tablet at home.

In terms of device operating systems within the home, 37% of users now have an Android based tablet, up 10 percentage points in six months, and 15% own Kindle Fire or Fire HD tablets.  Apple remains the market leader with 56% of tablet users having an iPad, although this is down from 63% in the last six months. The shift towards Android devices is linked with their relative affordability compared with Apple’s iPad.

The increasing ubiquity of tablets is also changing their role. More than four out of ten users now live in a home with more than one tablet (up six percentage points in the last six months). Consequently, tablets are moving from being a shared device to an increasingly personal one, opening up new content and advertising opportunities for targeting and engaging specific users much more effectively.

As consumers become more comfortable with tablets, they are gaining a clearly defined role in households with multiple devices. Tablets are more likely than smartphones to be used for watching or catching up on TV programmes or film, YouTube, or gaming; anything where a larger, better screen will enhance the experience.

Tablets are also playing a growing role in the purchase process with 53% of tablet users researching information on a product or service using their device, up from 44% six months ago.

Fewer users are taking their tablets out of their homes with just 8% using their tablet out-of-home every day, and 44% never taking their tablet out the front door, up from 36% six months ago. Rather than indicating that people have stopped taking tablets out with them, this reflects the different usage patterns of new tablet owners, who are driving the rapid growth.

Trevor Vagg, director, Kantar Media Custom, said: “Tablets have rapidly become part of our digital lives, with Christmas sales and cheaper, Android powered devices all contributing to make tablets a ‘need to have’ rather than just a ‘nice to have’. The arrival of cheaper Android based tablets such as Tesco’s Hudl and the Kindle Fire has turned what was a premium device into something that’s much more ubiquitous but also increasingly as personal as the smartphone we use when we are on the go. These shifts open new doors for advertisers in terms of targeted messaging opportunities.”