Category: UK

Coupon redemption – UK figures treble in nearly a decade

Post author By Sally Hooton
Post date 22nd August 2014
No Comments on Coupon redemption – UK figures treble in nearly a decade

Retailers drive 33 per cent increase.

The number of coupons redeemed in the UK has reached 365 million redemptions in the first half of 2014, according to Valassis.

Findings released by the UK’s coupon experts show that the number of coupons redeemed from January to June this year is 33 per cent higher than the same period last year, and 11 per cent higher than the second half of 2013. The first half of 2013 saw 275 million coupons redeemed and 328 million redeemed in the second half of the year.

The rise in coupon redemption is driven predominantly by retailers, with 43 per cent more retailer-issued coupon redemptions in the first half of this year than in the same period in 2013. This contrasts with manufacturer-issued coupons which, despite a sharp growth over the past 18 months, were flat in the first half of 2014.

Overall, the number of coupons redeemed by UK consumers has more than trebled since 2006, from 109 million in the first half of 2006 to 365 million just eight years later.

Charles D’Oyly, managing director of Valassis, said: “Many supermarket shopping trips are now driven by savings behaviour, and coupons form a key part of this with consumers searching for the best discounts before they set foot in store. This often means that supermarket choice is determined by the most attractive and relevant offers.

“Retailers are acutely aware of this, with coupons playing a key role in their promotional strategy in a bid to attract shoppers to their stores and give them the competitive advantage.”

Hitting the road: how to cure the crisis in UK commercial banking

Post author By Sally Hooton
Post date 21st August 2014
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Henry Braithwaite (pictured) discusses business investment.

In February, the Bank of England reported a 2.1% annual fall in bank lending to businesses of all sizes. This is not a headline-grabbing collapse in commercial lending, but rather a slow and steady decline that is now in danger of leaving UK businesses without the resources to invest and so maintain our nascent economic recovery. This is an issue not only for commercial banks, but for the UK as a whole. It cannot be ignored any longer.

Collapse of trust

Indeed the Chancellor is so worried about this lack of business investment that, back in January, he called senior executives at the UK’s largest companies to the Treasury and urged them to stop sitting on their hands and start investing. The crisis hit the headlines again in June when Business Secretary Vince Cable attacked the Bank of England for blocking reforms which would make it easier for banks to lend to business

Momentum is building behind the issue, but there will be no easy solution. The root cause of the crisis is not that banks are unable or unwilling to lend to businesses. For many months now, banks have had the capital to lend and the incentive to lend it, and they have been willing to offer significant loans to businesses at reasonable rates.

The reluctance to engage is largely on the part of the businesses themselves, especially smaller businesses. Five years is simply not long enough to forget the experiences of the Great Financial Crisis when good, solid businesses had lines of credit withdrawn almost overnight, forcing many of them out of business. These memories, combined with the emergence of alternative funding models, have left many company directors reluctant to trust banks as a reliable source of long-term investment.

As Spencer Dale, the Bank of England’s chief economist, told a CBI gathering last December: “Many companies were let down by their banks during the financial crisis, and I fear that many will be reluctant to return to a business model which relies on their banks providing liquidity and support in times of need.”

Towards a solution

In recent months, various experts have proposed a host of solutions to this impasse. In a speech at the City Week event in London on April 22, 2013, Douglas Flint, HSBC Group Chairman, argued that financial institutions need to define and enforce the right values in terms of behaviour to improve the sustainability of the financial system and demonstrate its social value.

Others have proposed more technical solutions such as caps to bankers’ pay or the G20’s comprehensive financial reforms. These are valid suggestions, but on the ground, right here and now, commercial banks need a more immediate solution. We have worked with one commercial bank that has decided to simply take matters into its own hands and get out and meet its customers.

They believe that this will begin to restore the trust that is so essential to a commercial banking relationship, and so start to return revenue growth that part of its business. It is an important story as it may point a way forward for other commercial banks in the UK.

One bank’s answer

Our client is a regional division of the commercial banking arm of one of the leading high street banks. The central marketing function was keen for regional managers to get out and meet potential customers, and so asked us to work with this region in a test pilot scheme which, if successful, would be rolled out to other regions.

The regional team was at first highly sceptical about the involvement of a telemarketing agency. They had tried it before with a different agency and had been sent out on meetings which were not fully qualified and so not only wasted their time but also reflected poorly on the bank.

Yet, since then they had been attempting to set their own new business meetings with very limited success. It was an activity few of them were trained in or had much experience of, and one that even fewer enjoyed doing. Understandably they focused on existing clients, and so were doing little to get out and engage with local businesses and start rebuilding the relationship of trust.

So, when we talked to them about how we approach our calls, and the way we give clients access to recordings of our conversations with people they are due to meet so they can be certain there is a genuine opportunity there, and be fully briefed before the meeting, they began to see how outsourcing B2B telemarketing could really work.

200% return on investment

It certainly did work. The leads that MarketMakers generated overall gave a 200% return on the investment made by the bank. This came through a combination of quick wins and longer term prospects, but crucially the bank was out talking to businesses, convincing them that it could be trusted again.

The pilot was rolled out across that bank, and it is now reaping the benefits nationally. It is a model which in the coming months and years we may see more and more commercial banks adopting. The cost of inaction, and the potential rewards for action, are simply too great to ignore any longer.

Henry Braithwaite is operations director, MarketMakers

In the News UK

More than a third of UK consumers choose online financial advisors over face-to-face

Post author By Sally Hooton
Post date 19th August 2014
No Comments on More than a third of UK consumers choose online financial advisors over face-to-face

New research has revealed an increase in the number of people choosing to search online for wealth product providers rather than seek advice from an independent financial adviser.

The research, commissioned by Equifax, asked UK consumers with savings and investments and who are aware of the changes in adviser charges as a result of the Retail Distribution Review (RDR), whether they have changed the way they use financial advisers in the last 12 months. More than a third (36%) said they now conduct their own research of wealth product providers, compared to 27% in 2012.

Of the third who say they are now researching providers online, more than half (56%) are women, which illustrates the importance for wealth product providers to employ appropriate and relevant marketing techniques when targeting this demographic.

Paul Birks, decisions solutions director, Equifax, said: “Our research strongly suggests that, as more consumers search for products and advice direct, this creates a great opportunity for wealth and investment product providers.

“However, to capitalise on this, they need to be able to access accurate insight into their customers, including having a greater understanding of their needs and when and why they are most likely to purchase wealth and investment products in the future.”

“Armed with actual purchasing activity, providers can create effective and highly targeted direct to consumer campaigns, thereby achieving the best ROI”, continued Birks. “Using Equifax Investor Insights can help providers go some way to meeting their ‘Know Your Customer’ and ‘Treating Customers Fairly’ regulatory requirements.”

Based on more than £345 billion of actual investment sales data shared by wealth and investment providers through the Equifax operated Touchstone Data Exchange, Equifax Investor Insights provides the value and frequency of investment product purchases. By including insight such as age, risk and products held, providers gain a more accurate understanding of their clients.

In the News UK

DMA warns UK industry of sitting on 'ad mail VAT timebomb'

Post author By Sally Hooton
Post date 14th August 2014
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The UK DMA has warned advertising mail suppliers to financial services businesses and charities that they could be sitting on a ‘VAT timebomb’ following HMRC’s two-year delay in issuing guidance on how it will impose VAT rules for the channel.

The industry has been left in the lurch since April 2012, when HMRC announced that it had stripped bulk mail of its VAT-exempt status. Since then, many advertising mail suppliers have used the practice of ‘single sourcing’ – combining postage costs with production costs – for cutting out the VAT liabilities for financial services businesses and charities, which are unable to claim back or charge VAT.

In April 2012, the DMA alerted the industry to HMRC’s change of VAT rules for bulk and issued its own guidance, which highlighted the potential dangers of single sourcing for advertising mail suppliers.

For the past two years the DMA has been calling on HMRC to issue clear guidance on whether it will exempt single-sourced advertising mail from VAT charges. The DMA is now concerned that supplier businesses that were advised to interpret the rules in this way could now be hit with large back-dated VAT bills, as well as penalties.

Mike Lordan, the UK DMA’s director of external affairs, said HMRC’s lack of communication could put many advertising mail suppliers out of business: “Thanks to HMRC taking an unacceptable length of time to respond to our request for clarification, many businesses now could be sitting on a huge VAT timebomb.

“While we’ve advised businesses to take a cautious approach, the ambiguity surrounding the rules means that many businesses have interpreted the rules differently. Until now, HMRC has not issued guidance to the contrary. HMRC created this vacuum so it would be extremely unfair for them now to penalise companies.”

Jonathan Harman, managing director, MarketReach, added: “It is important HMRC and the wider mail industry work together to do everything possible to bolster this vital sector. Royal Mail would be concerned about any further increase in mailing costs for charities and other businesses that are unable to recover VAT. Direct contracts for postal services between charities or financial services companies and Royal Mail are unaffected – including Downstream Access contracts which continue to be exempt from VAT.”

The DMA now will lobby the Treasury and the Department for Business, Innovation and Skills to prevent HMRC from imposing backdated VAT charges and penalty fines for businesses while the industry was waiting for guidance.

The DMA is urging its members concerned about the impact of HMRC’s guidance on their advertising mail business to contact the DMA’s VAT helpdesk.

In the News UK

The voice of advertising and marketing is male, new research reveals

Post author By Sally Hooton
Post date 13th August 2014
No Comments on The voice of advertising and marketing is male, new research reveals

The UK marketing and advertising sector speaks with a middle-aged, male voice, new research has revealed.

A study conducted by PH Media Group found the most popular voice used by agencies is male and aged between 35 and 45. It is also friendly, clear and distinctive in tone, helping to reinforce a sense of accommodating service and authority.

The male voice is generally perceived by customers as authoritative and professional, so can work particularly well for business-to-business organisations.

But audio branding specialist PH Media Group advises firms to choose branding that suits their specific company values and claims a female voice may be equally as effective.

Dan Lafferty (pictured), head of voice and music at PH Media Group, said: “An older, deeper, masculine voice can be used to convey a sense of authority, especially when combined with corporate music,.

“This is important in portraying a sense of knowledge, professionalism and standing to business customers.

“But that doesn’t mean it will necessarily be the best fit across the board and companies should use a voice which best reflects their products, customer base and service proposition. A feminine voice can be equally authoritative but is also perceived as soothing and welcoming, reinforcing an ethos of dedicated service.”

The research audited marketing and advertising agencies’ on-hold marketing – the messages heard by callers when they are put on hold or transferred – to reveal which voice and music is most widely used.

The most popular music tracks were purposeful and confident in style, designed to reinforce the energetic and creative nature of the industry.

Many firms opt to use popular music tracks but, due to existing emotional associations, these tracks are often unsuitable in convincing a customer to buy.

“Sound is a powerful emotional sense,” added Lafferty. “People will often attach feelings, both positive and negative, to a piece of commercial music, which will be recalled upon hearing it.

“Placing a piece of commercial music in an on-hold situation, no matter how cheery and upbeat it may seem, is a lottery of the individual’s previous experience of the track. Using commercial music is also a square peg, round hole scenario, taking a piece of music and trying to make it fit a new purpose to convey a message it was never intended to.

“A bespoke music track starts from the ground up, with each element forming or reflecting the brand proposition, and with there being no previous exposure among the client base. The physical attributes of the track – whether major, minor, fast, slow, loud or quiet – are used to communicate emotional meaning, rather than the personal experience of the individual.”

In the News UK

New UK industry code to promote data responsibility

Post author By Sally Hooton
Post date 12th August 2014
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New UK industry code promotes ‘responsibility above and beyond compliance’ to address customer concerns, says DMA

Adopting the UK DMA’s new code of practice will be central to the industry’s efforts to address customer concerns about one-to-one marketing such as data sharing, according to the trade body’s executive director Chris Combemale.

Speaking at the launch of the new DMA Code, which covers all data-driven marketing activity, Combemale said it will change the industry’s mindset: “We’ve taken a new approach to self-regulation that recognises the need to focus on principles that go above and beyond compliance with the law. It’s perfectly easy to follow all of the details of regulation and yet fail to meet the expectations of the customer, such as how you use their data.

“Our Code centres on five principles to inspire the industry to serve each customer with fairness and respect. Marketing with customers not at them is imperative to fostering trust and achieving commercial success.”

The DMA is now encouraging other businesses to adopt the code, which comes into force next Monday, August 18.

According to Combemale, failure to do so will come at a cost to UK plc: “The hero principle of ‘putting your customer first’ demonstrates the evolution of our industry. Each marketer and organisation should see one-to-one marketing as an exchange of value between its business looking to prosper and its customer looking to benefit.

“Data fuels the digital economy, so earning customer trust is a commercial imperative. Brands must make every effort to ensure that they always collect and use consumers’ data in ways that they expect and benefit from.”

The DMA developed the Code after an 18-month consultation process with industry stakeholders, including practitioners as well as government regulators Ofcom and the Information Commissioner’s Office. The Ministry of Justice and Department of Culture, Media and Sport also provided input.

The DMA Code will be enforced by the UK industry’s independent watchdog, the DM Commission.

The DMA Code is backed by a series of channel-specific ‘guides’, which cover recommended best practice and compliance with regulations.

More than 1,050 corporate members of the UK DMA, which includes the industry’s top agencies, adhere to the DMA Code as a condition of membership.

The UK DMA Code and guides are available via the DMA’s website.

Data Driven Channels In the News UK

Selfridges aims to enhance customer experience

Post author By Sally Hooton
Post date 11th August 2014
No Comments on Selfridges aims to enhance customer experience

UK department store, Selfridges, has chosen software from enterprise listening technology company Synthesio to listen to and engage with customers online.

Selfridges will now be able to monitor and analyse customer comments online on a global basis, including key Asian social networks like Sina Weibo. This will enable Selfridges’ marketing and customer service teams to respond efficiently to customer queries, engage with customers and analyse their online and offline experiences with Selfridges.

Synthesio’s software monitors and evaluates online conversations across social media platforms, review sites, forums, blogs and the comment sections of newspapers, in 50 languages and 200 countries.

The agreement with Selfridges follows Synthesio securing a similar brief with Virgin Atlantic last month.

Claire Higgins, head of digital marketing at Selfridges, said: “We are continually striving to provide the best possible service to our customers. By using Synthesio’s platform we will be able to provide even better care online and gain valuable insights that will help us better understand the online and offline experiences of our customers.”

Loic Moisand, founder and CEO of Synthesio, said: “We are delighted to start working with such an iconic brand like Selfridges, and we look forward to helping them continue their great work of delighting their customers. This project is another great example of integrated Listening and Engagement, which is becoming the de-facto strategy for mature brands.”

Synthesio’s platform also contains a built-in metric for measuring a company’s online reputation – SRS (Social Reputation Score) – which many brands use to benchmark themselves against competitors, and measure the impact of their activities.

Read also:

Which social media platform is right for your business?

A masterclass in manners and managing customer feedback – here’s what NOT to do when they complain

Tags customer experience, Selfridges

In the News UK

Optimistic future for marketers as vacancy numbers climb on two counts

Post author By Sally Hooton
Post date 6th August 2014
No Comments on Optimistic future for marketers as vacancy numbers climb on two counts

Demand for marketing professionals is increasing both on a quarterly and yearly basis, according to fresh statistics from one of the UK’s leading professional specialist recruiters.

Figures from the Robert Walters UK Jobs Index, which charts vacancy numbers posted to online platforms, confirm that the level of marketing vacancies expanded both year-on-year (up 8%) and between the first two quarters of 2014 (up 6%), together indicating a steady increase in employer demand.

Organisations in and around the Midlands have been the most active recruiters, generating nearly 15% more roles in the year since the second quarter of 2013.

The flow of marketing jobs is also strong in the capital, where the Jobs Index recorded a year-on-year increase of 8%.

Tim Gilbert, director of Marketing Recruitment at Robert Walters UK, said: “The Jobs Index results reflect rising investment and an appetite to hire as businesses seek to achieve new levels of growth. Echoing this trend is the rising number of marketing professionals attracting multiple job offers, underscoring the need for efficient recruitment processes to secure preferred candidates.

“While many employers have embraced the digital revolution, up-skilling staff or making new hires, the flow of digital marketing vacancies shows no sign of abating. Among discerning employers, the focus will be on recruiting for highly specialist or niche digital marketing roles to build up fresh layers of expertise.

“Furthermore, for many businesses, quality remains key, with many turning to experienced advisers or consultants to access marketers with the necessary skills or experience.”

55% of businesses say they are being let down by data quality technology

Post author By Sally Hooton
Post date 31st July 2014
No Comments on 55% of businesses say they are being let down by data quality technology

Don’t let poor quality data affect your business, says Joel Curry (pictured).

Most organisations today recognise the importance of data in fulfilling their business objectives. In the recent ‘Global Data Quality Research’ (2014 Experian survey), approximately 99% of companies had some kind of data quality strategy.

But despite this increased focus on data quality, many organisations are still dissatisfied with their approach. Even where specialist software is being used, 55% are not happy with the results.

The reality is that many companies are still using outdated methods of data quality management. These are often reactive in nature and can result in far longer lead times to actually resolve any issues found, which means that the effects of poor quality data are felt for much longer than they should be.

One of the biggest problems that many organisations overlook is the need to manage data quality holistically. At present, one in three large British organisations do not include all of their data in a data quality strategy – creating pockets of poor quality data. This, coupled with the fact that many organisations apply quick fixes as and when defects arise, means that it’s a case of ‘when’ not ‘if’’ data quality will have an impact on performance overall.

Top tips to ensure your data quality strategy works for your business:

It’s all about big picture. Perhaps the most fundamental step is to make sure your data quality strategy is aligned to your business priorities. What are the business functions and processes that your data has to enable? Undertaking a comprehensive business fact finding mission – and talking to those in the know – will help to ensure that a more business orientated data quality strategy is defined.

Look at the links. Once you have established how data quality should support the business, it’s important to look at how the data gathered across the organisation links and works together as part of a corporate-wide process. Sounds time consuming, doesn’t it? It needn’t be. Modern data profiling functionality enables you to automatically discover relationships in the data without any prior knowledge of how that information is connected – which also helps to quickly track down the source of any defects.

Lay down the rules. Setting clear rules that dictate what types of quality you want your data to be measured against, and also what thresholds and quality levels will be monitored in future is a critical step that will form the bedrock of your data quality strategy. Organisations often focus on a large quantity of basic data quality rules at the expense of understanding a smaller number of more complex rules. It is often the more complex rules that hold the key to data quality success. When these are well managed and continuously improved you will start to see immediate benefits to the business. Once your rules have been established they can be managed via your data quality tool and re-used across the organisation.

Set standards. It’s also important to adopt standards for things such as naming and coding conventions, permitted formats, valid events and other company data standards. Some data quality tools allow you to link standards to enforceable rules, which can have a real impact on the quality of data entry.

Know your weaknesses. No matter what size your business is, business continuity can be difficult to achieve without a little help. Some software solutions such as CrunchTime: Restaurant Management Software, have the technology to monitor data quality levels across the organisation and detect defects in real-time – allowing swift identification of defects and resolution. However, Depending on the industry or size of your business you may also consider custom software, in fact almost all industries use some shape or form of custom software, be it integration or customizations. Particularly once you get up to the larger corporations they are likely to more and more use custom software for internal processes and product development streams.

No such thing as a quick fix. Quick fixes for data quality issues may seem easier in the short term, but often these mask much broader problems that stem from failures with policies, procedures, technology and training (to name but a few). Because you already have a clear view of the information links (and are undertaking regular monitoring) throughout the business you should be able to easily identify where people, process or technology changes are required to implement permanent improvements. Quite often it simply needs more education within the workplace so that frontline employees understand the impact of the mistakes they’re making. Schemes such as bonus-related rewards based on data quality levels can also have a significant benefit in getting corporate wide buy-in

Ownership is key. Whilst the IT team can have a vital role in data quality management, it is ultimately the business that is the true data owner. All too often the responsibility for fixing and managing data falls with IT and this is a mistake. IT has a supporting role, but the onus is on the business to define data quality rules, internal processes, information chains, data standards and policies. Assigning one person to own the data quality issue will enable them to act as a roving problem-solver, working with the business, process, technology and customer facing units to resolve any defects found.

So there you have it. Taking a holistic view of data quality – and putting in place the people, processes and technology needed to facilitate it, will not only enable you to gain in-depth insight to business performance, but will also allow you to quickly get to the root cause of any data issues.

However, it’s not enough to simply purchase the biggest and best data quality management tools, or to have the most comprehensive data quality strategy around. Both are essential – and one cannot succeed without the other.

Joel Curry is managing director of Experian Data Quality.

In the News UK

Board level changes at award-winning agency Cyance

Post author By Sally Hooton
Post date 30th July 2014
No Comments on Board level changes at award-winning agency Cyance

Jon Clarke Steps up to CEO
Steve Kemish leaves to focus on educating/speaking/writing career

Jon Clarke, former joint MD, becomes CEO of UK-based b2b data and marketing agency Cyance with immediate effect and Steve Kemish, former Joint MD of Cyance, is to leave the company on September 12 in order to further focus on his longstanding interests in public speaking/tutoring and writing.

Kemish will act as chief strategy officer until his departure and will be actively supporting Clarke in his new role.

Mike Housley, chairman of Cyance said: “Steve is an exceptionally talented speaker and writer and has tutored and educated marketers both in the UK and Internationally. During his time as the chairman of the IDM digital marketing council and a Superbrands judge, he has been invited throughout the world to share his view on digital marketing.

“He has a true vocation in this area and it’s a natural move for him. I’d like to thank Steve for his outstanding contribution to the development of Cyance over the last six years.

“We wish him every success in the future.”

Kemish said: “I’ve had a fantastic time helping to grow Cyance and have loved my time here. But I’m pleased to now be able to take this opportunity to concentrate on fulfilling my ambitions in educating, speaking and writing. I wish everyone at Cyance every success and look forward to working on projects with them in the future.”

Housley also commented: “Jon is a highly experienced CEO and is very well qualified to drive the business forward and build on the excellent progress we’ve achieved so far. His visionary role in International B2B Demand Generation and knowledge of IT Sector Marketing have already been major assets. I look forward to working more closely with him in the future.”

Clarke said: ‘I’m excited to move into the new role of CEO and at the prospect of leading Cyance in what is a rapidly expanding marketplace. Cyance has an excellent reputation for leading the field in B2B marketing innovation – something we intend to maintain and build upon. We all wish Steve every success in developing his new career.”