Your Customers Have Control Issues
Your Customers Have Control Issues
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Your Customers Have Control Issues Help them skip the therapist’s couch with the right combination of trust and interaction. A recent study by Forrester Research Inc. found that consumer trust in advertising is at an all-time low. But if you look closely, the news isn’t entirely bad. In fact, it could make a customer relationship marketing (CRM) proponent feel downright validated.
Learn More »
The 2007 report shows that from online banner ads to newspaper ads, the message is clear: Advertisers have work to do if they want consumers to believe what’s being said. Unless, that is, they begin to utilize basic CRM principles to their advantage. Lane Ware, Senior Vice President of Strategic Consulting for Customer Communications Group, Inc. (CCG), says she sees companies across most industries concerned about trust and looking for remedies. “Trust is pivotal to the effectiveness of any customer communications,” says Ware. “Companies are responding with more personalized, targeted communications that resonate with customers and acknowledge relationships. This builds loyalty and a belief in what you have to tell them.”
The Early Diagnosis The Forrester study provides an overall look at what channels are most and least trusted — and offers some keen insight into consumer behavior. First of all, consumers are control freaks. That’s right. They want control of the messages they receive, and they want it now. The report showed that customers trust opt-in e-mail marketing more than any other advertising medium — because that channel offers a higher level of control than other types of marketing interactions. This pattern of “control preference” is evident in other areas of the report as well. Customers who choose to exert control through pop-up blockers and spam filters are the same customers who are more likely to opt into e-mail communications. Ware says “pull” marketing tactics, such as opt-in campaigns, are right in line with the heart of a successful CRM program. “Opt-in measures allow for the most advanced personalization possible by having customers identify their preferences. It also offers you the chance to interact with your customers on an individual basis, on their terms — and leverage their likes, dislikes and history with the company.”
Ad Channels by Consumer Trust Factor¹ Most trusted to least trusted:
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22.5% - Opt-In Email 17.5% - Brand Web Sites 16.5% - Consumer Opinions Posted Online
Article Archives
14% - Newspaper Ads
Webinars
13.5% - Magazine Ads
White Papers
12% - TV Ads 11% - Radio Ads 6% - Search Engine Ads 1.5% - Cell Phone Text Ads 1.5% - Online Banner Ads 1. Respondents who answered 4 or 5 on a scale from 1 to 5, with 5 being “trust completely.” For a complete list of the channels researched, refer to the Forrester Research Inc. source listed above.
Taking It Online: Relationship Marketing in Cyberspace, Part II Mine Your Own Metrics Five Lessons From 30 Years in CRM
Second, consumers base perceptions on relationships and experiences. According to the Forrester report, consumer perception is most influenced by experiencing a brand in action. For instance, a full 84 percent of respondents who had high incomes, access to technology and consumer optimism said they are influenced by their own experiences more than any other factor. This means targeting customers based on their individual usage behaviors can have a real impact. For example, triggering an e-mail communication with a targeted cross-sell offer immediately after a purchase can increase the likelihood of a repeat purchase — because the relationship is top-of-mind.
The Prescribed Therapy Short of entering couple’s counseling with each of your customers, there are a few steps you can take to help build the trust of these advertising-wary consumers. Incorporate opt-in features everywhere — and ask for customer preferences. Give your customers the control they need to feel comfortable. Allow them to opt-in and opt-out of every communication, if possible. They’ll value the interaction even more when they’ve made the decision to receive it. This also gives you the opportunity to ask them what communication channels they prefer, and what products and services they want to learn more about. For example, a national shoe retailer asks customers their shoe size and provides information only on products available in their size. Allow your customers to speak for your brand. Online consumer reviews and blogging are all the rage. Take advantage of that by letting your best customers tell your
1 of 2
5/6/10 10:26 AM
Your Customers Have Control Issues
http://www.customer.com/resources/archive_article.php?page_...
story. Set up blogs for customer interaction. Encourage customers to write reviews. Make it easy and beneficial for your customers to share experiences through e-mail and the Web. “PETCO, a national pet supplier, has published a study that shows having customer product reviews on its Web site lifted response to e-mails featuring those products by 200 percent,” Ware says. Say “trust me” — and mean it. Building trust isn’t always easy, but it can be done. Simply dust off those CRM skills. Listen to your customers, understand what channels they trust, be consistent in how you use their information and how you interact with them, and then capitalize on the positive relationships you cultivate every day.
Source: “Advertising Tactics That Win Consumer Trust,” by Peter Kim with Elana Anderson, Julie M. Katz and Tenley McHarg, Consumer Advertising Profiles 2006 Series, Forrester Research Inc., Jan. 3, 2007.
Originally published in StrateScapes, Volume 10, Number 1, 2007.
1
© Copyright 2010, Customer Communications Group, Inc. All rights reserved.
2 of 2
5/6/10 10:26 AM
ABOUT CCG
http://www.customer.com/resources/archive_article.php?page_...
OUR CLIENTS
S T R AT E G Y
C R E AT I V E
D ATA S O L U T I O N S
RESOURCE CENTER
CONTACT US
Resource Center
News & Events
Archives
E-Newsletter
Webinars
PRIVACY
SITE MAP
White Papers
Your Customers Have Control Issues Help them skip the therapist’s couch with the right combination of trust and interaction. A recent study by Forrester Research Inc. found that consumer trust in advertising is at an all-time low. But if you look closely, the news isn’t entirely bad. In fact, it could make a customer relationship marketing (CRM) proponent feel downright validated.
Learn More »
The 2007 report shows that from online banner ads to newspaper ads, the message is clear: Advertisers have work to do if they want consumers to believe what’s being said. Unless, that is, they begin to utilize basic CRM principles to their advantage. Lane Ware, Senior Vice President of Strategic Consulting for Customer Communications Group, Inc. (CCG), says she sees companies across most industries concerned about trust and looking for remedies. “Trust is pivotal to the effectiveness of any customer communications,” says Ware. “Companies are responding with more personalized, targeted communications that resonate with customers and acknowledge relationships. This builds loyalty and a belief in what you have to tell them.”
The Early Diagnosis The Forrester study provides an overall look at what channels are most and least trusted — and offers some keen insight into consumer behavior. First of all, consumers are control freaks. That’s right. They want control of the messages they receive, and they want it now. The report showed that customers trust opt-in e-mail marketing more than any other advertising medium — because that channel offers a higher level of control than other types of marketing interactions. This pattern of “control preference” is evident in other areas of the report as well. Customers who choose to exert control through pop-up blockers and spam filters are the same customers who are more likely to opt into e-mail communications. Ware says “pull” marketing tactics, such as opt-in campaigns, are right in line with the heart of a successful CRM program. “Opt-in measures allow for the most advanced personalization possible by having customers identify their preferences. It also offers you the chance to interact with your customers on an individual basis, on their terms — and leverage their likes, dislikes and history with the company.”
Ad Channels by Consumer Trust Factor¹ Most trusted to least trusted:
Log Out | Edit Profile
22.5% - Opt-In Email 17.5% - Brand Web Sites 16.5% - Consumer Opinions Posted Online
Article Archives
14% - Newspaper Ads
Webinars
13.5% - Magazine Ads
White Papers
12% - TV Ads 11% - Radio Ads 6% - Search Engine Ads 1.5% - Cell Phone Text Ads 1.5% - Online Banner Ads 1. Respondents who answered 4 or 5 on a scale from 1 to 5, with 5 being “trust completely.” For a complete list of the channels researched, refer to the Forrester Research Inc. source listed above.
Taking It Online: Relationship Marketing in Cyberspace, Part II Mine Your Own Metrics Five Lessons From 30 Years in CRM
Second, consumers base perceptions on relationships and experiences. According to the Forrester report, consumer perception is most influenced by experiencing a brand in action. For instance, a full 84 percent of respondents who had high incomes, access to technology and consumer optimism said they are influenced by their own experiences more than any other factor. This means targeting customers based on their individual usage behaviors can have a real impact. For example, triggering an e-mail communication with a targeted cross-sell offer immediately after a purchase can increase the likelihood of a repeat purchase — because the relationship is top-of-mind.
The Prescribed Therapy Short of entering couple’s counseling with each of your customers, there are a few steps you can take to help build the trust of these advertising-wary consumers. Incorporate opt-in features everywhere — and ask for customer preferences. Give your customers the control they need to feel comfortable. Allow them to opt-in and opt-out of every communication, if possible. They’ll value the interaction even more when they’ve made the decision to receive it. This also gives you the opportunity to ask them what communication channels they prefer, and what products and services they want to learn more about. For example, a national shoe retailer asks customers their shoe size and provides information only on products available in their size. Allow your customers to speak for your brand. Online consumer reviews and blogging are all the rage. Take advantage of that by letting your best customers tell your
1 of 2
5/6/10 10:26 AM
Your Customers Have Control Issues
http://www.customer.com/resources/archive_article.php?page_...
story. Set up blogs for customer interaction. Encourage customers to write reviews. Make it easy and beneficial for your customers to share experiences through e-mail and the Web. “PETCO, a national pet supplier, has published a study that shows having customer product reviews on its Web site lifted response to e-mails featuring those products by 200 percent,” Ware says. Say “trust me” — and mean it. Building trust isn’t always easy, but it can be done. Simply dust off those CRM skills. Listen to your customers, understand what channels they trust, be consistent in how you use their information and how you interact with them, and then capitalize on the positive relationships you cultivate every day.
Source: “Advertising Tactics That Win Consumer Trust,” by Peter Kim with Elana Anderson, Julie M. Katz and Tenley McHarg, Consumer Advertising Profiles 2006 Series, Forrester Research Inc., Jan. 3, 2007.
Originally published in StrateScapes, Volume 10, Number 1, 2007.
1
© Copyright 2010, Customer Communications Group, Inc. All rights reserved.
2 of 2
5/6/10 10:26 AM
