Mediaboss Marketing

Executive Summary

Many brands are struggling to capture value from their loyalty programs and trying to figure out how to best use social media to communicate with these customers. Some companies have even set up distinct social media accounts for their programs. For these efforts to be successful, companies need to know how to use social media to drive sales from members. Research of one companys social media posts shows that certain types of communication are more successful. After rating over 3,500 posts on particular dimensions and connecting those posts to sales, the study authors found that relational and intellectual posts were most effective in driving sales for loyalty program customers, while behavioral posts drove more sales from non-loyalty program customers. Sensory and emotional posts werent effective with either group in our study. Companies can use these dimensions when deciding on how to best communicate with loyalty program members.

More and more companies have loyalty programs and for good reason. A recent industry report showed that loyalty program members not only spend more and remain customers longer but they are also more likely to spread positive word of mouth. This helps explain why weve seen a proliferation of programs(weve seen new programs popping up across sectors like cosmetics, fast foods, and hotels). Target, for example, launched their Target Circle loyalty program ahead of this years holiday shopping period, after extensive test marketing showed increased spending for program members compared to those who were not enrolled.

Given that loyalty program members tend to be a brands most valuable customers and are already several steps into their journey with a brand companies need to consider how they are communicating with them across different channels. Our research (paper is in progress) shows that social media in particular can make loyalty programs more effective in driving sales, but only if done right.

We analyzed social media messages andthe impact on loyalty program and non-loyalty program online sales for one company, a European operator of snow tourism resorts. We started by scoring 3,500 of the companys Facebook posts using the five dimensions of brand experience. Each post was rated by social media experts on each of the dimensions. Relational posts make a connection beyond the recipient, for instance encouraging the use of product together with others, or as part of a tribe of interested consumers. Intellectual posts prod the recipient to engage in conscious mental processing, perhaps through humor, problem solving, or creativity. Posts that are high on the behavioral dimension include activity or interaction with the product or service. Sensory posts stimulate the senses and could involve breathtaking images or shocking multimedia content. Finally, emotional posts attempt to generate moods or feelings in the recipient. Once the posts were scored, we then analyzed the efficacy of each dimension in driving sales to loyalty program and non-loyalty program customers.

We found that relational and intellectual posts were most effective in driving sales for loyalty program customers, while behavioral posts drove more sales from non-loyalty program customers. Interestingly, sensory and emotional posts werent effective with either group in our study.

Relational messages connect the recipient to a larger community around the product or service, strengthening a feeling of belongingness. Posts rated high on the relational dimension tend to illustrate inclusiveness or the connections between people. Because loyalty program customers have an ongoing relationship with the brand, they appear to be more open to relational themes, whereas non-loyalty program customers may be less drawn to relational messages from brands which they are not already strongly connected. One particularly effective post from the resort we studied promoted family-focused resort activities, with imagery of cross-generational connections. Loyalty program sales associated with this post were 210% more than expected based on the resorts typical ratio of loyalty program to non-loyalty program sales.

Intellectual posts were also more effective with loyalty program customers. These customers are more invested in the brand and are therefore more likely to put forward the mental effort to engage mindfully with a detailed, intellectual post. One of the resorts posts rated high on this dimension included a comprehensive list of festival activities with a stylized map, which requires careful consideration and processing from the recipient. This post resulted in an 85% increase in loyalty program sales compared to expectations. Members-only retailers such as REI and BJs Wholesale often take advantage of intellectually demanding posts by including detailed product content (and in REIs case, outdoor lifestyle content). These posts require investments to both produce and consume the content, but brands see the value, knowing that their curious members are looking to deepen their brand relationship.

Behaviorally-themed posts can be effective with both customer groups, but were most effective in driving non-loyalty program sales in our study. These posts typically require less mental energy to process and encourage non-loyalty customers to visualize how they might interact with a product or service. One specific resort post that was rated high on the behavioral dimension mentioned leaving for the weekend and getting out to the slopes, with imagery showing a familiar behavior: getting off the chair lift. This post led to an 82% spike in non-loyalty program sales compared to expectations. One possible implication of this finding is that newer brands, who dont yet have a large base of loyal customers, could focus on behaviorally themed messages in their social media with easily relatable messaging around physical interaction with the product or service to drive sales from not-yet-loyal customers.

The resorts posts that were rated high on sensory and emotional content werent effective in driving sales from either customer group. This may be because the social media environment is a metaphorical screaming match, with a variety of posts vying for viewer attention. Turning up the volume through striking visuals or multimedia in this already over stimulating setting wasnt an effective way to reach either group of customers. Similarly, emotional content that appealed to customers feelings did not effectively drive sales from either group. This may be because browsing social media can be emotionally exhausting, so further taxing customers emotions doesnt work.

Many brands are struggling to capture value from their loyalty programs and trying to figure out how to best use social media to communicate with these customers. Some companies have set up distinct social media accounts for their programs. For example, Marriotts newly launched Bonvoy program has very active social media accounts on Twitter, Facebook, and Instagram, which are run separately from Marriotts flagship accounts. This allows Bonvoy to focus on content that loyalty program members value.

While our findings are based on the social media activity and financial results from one company (and we havent yet proven that they apply to businesses operating in very different domains), they provide digital marketers with some clues on what works and what doesnt and gives them a language to consider and communicate desired characteristics for their content. When trying to drive sales from loyalty program customers, think through what might be most effective (relational and intellectually themed content) and what could fall flat (attempting to shock the recipient with sensory or emotional content). And then post accordingly.

Read more from the original source:
Using Social Media to Connect with Your Most Loyal Customers - Harvard Business Review

The governments proposed legal framework known as Personal Data Protection Bill for the use of personal data and preventing its misuse which has been drafted on the lines of the European Unions General Data Protection Regulation (GDPR) is likely to impact sectors such as e-commerce, streaming platforms, financial services, IT among others.

Also read: Will Personal Data Protection Bill mean the death of personalised advertising?

The bill was tabled in the Indian Parliament on December 11 and is now being reviewed by a joint panel of Parliament. If it is passed in the current form and shape, the bill is likely to increase the cost of operations for marketing agencies and could pose obstacles in the implementation of personalised marketing campaigns. The bill has divided data into three segments personal, sensitive personal and critical personal.

The companies will have to take explicit consent from users before processing personal data and inform the user about the nature and categories of personal data being collected and the purpose for which the data will be processed. The user will also have to be informed about other entities the data will be shared with.

The proposed provisions that may hit the sectors:

1. The bill mandates that user consent should be obtained for storing and processing of personal data by companies.

Impact: So if a marketing network is storing your data and processing it to serve personalised ads to you, it will need user consent to do so.

2. Biometric data falls in the category of sensitive and cannot be processed unless specifically permitted by law.

Impact: For India's rising voice search industry, it could be a roadblock as they won't be able to process the data freely and would have to seek specific permission from the authorities. Experts believe this clause might be diluted during the review of the bill by a committee of MPs.

Google was asked to halt its analysis on the voice search after Article 66 was implemented by GDPR. If we look at it from the same perspective, yes, it would mean holding on until the regulations are strong enough to encapsulate how voice search results can bring in growth for marketers.

3. Data that has been defined as sensitive or critical has to be stored in India.

Impact: If a global ad network or platforms such as Google or Facebook are storing your health and financial data among other things, it has to be stored in India. Even for processing if it goes to their global headquarters, user consent will be required.

4. Empowers citizens to correct, erase and forget their personal data.

Impact: No social media network or search engine or an ad network can keep your data forever, unless you want it. Under the proposed provisions, the user has the right to erase. A consent manager will be there to enable users to gain, withdraw, review and manage their consent.

5. Large social media platforms to be tagged as significant fiduciaries.

Impact: Large scale data processors that are social media platforms will be tagged as significant fiduciaries by the government and will come under more compliance and responsibility, including offering voluntary user verification.

6. Companies may get their Privacy by Design policy approved by DPA.

Impact: To ensure that the companies are not compromising on user privacy, they may have to get their Privacy by Design policy approved by the Data Protection Authority.

7. Childrens data to be processed keeping in mind the rights and interests of the child.

Impact: When it comes to marketing to kids or serving content to kids, companies need to be more responsible and should have safeguards built in their system.

8. Penalty provisions for companies in noncompliance.

Impact: The bill provides for a penalty of up to Rs 15 crore or 4% of global turnover for companies that violate of provisions regarding processing personal data, processing personal data of children, transferring data outside India and other security safeguards.

Info@BestMediaInfo.com

View original post here:
The likely impact of Personal Data Protection bill on marketing and social media platforms - Best Media Info

More than 30 years after the invention of the World Wide Web, many marketers still describe marketing on digital platforms using the language of the mass media era. Hence, brands often continue to think about digital advertising in terms of purchasing 'inventory' or 'ad space' on platforms like Facebook and Google -space they will use to reach their target audience.

Image source: Gallo/Getty Images.

So, if these platforms are not media companies, what are they? The hint is in the name, big tech. They provide brands with a sophisticated stack of technology and tools that can be used to target dynamic and highly personalised messages to consumers based on who they are and what they are doing. Just like the programmatic platforms or email marketing companies, they are not content companies but IT and data companies.

Thinking of Facebook or Google as technology platforms will lead marketers to use them differently to the ways in which many brands do today. Rather than purchasing an ad, they will understand that they are paying for an opportunity to engage with the right customer at the right moment. Think of it as direct marketing to qualified leads, but made even more targeted and efficient through the power of customer data.

When one starts to think of the social and search platforms as tech stacks, the importance of integrating digital advertising engagements with the companys customer relationship management (CRM) and analytics tools also becomes obvious. Together, these tools enable a brand to understand the customer journey from initial contact with a customer to conversion and the post-conversion relationship.

The four phases of digital maturity developed by Boston Consulting Group offer a useful model for understanding how marketing and advertising are evolving in the age of big tech:

For example, when someone searches for a hotel in Cape Town, a brand should not serve a generic ad, but one tailored to the areas and price range they are looking at, based on a complete view of the customer.

Another instance: if a prospect starts an online application for vehicle finance and then abandons it at the last step, the bank could target them with ads encouraging them to complete the process. While some CRM systems might send such reminders via email or SMS, this functionality can be powerful when integrated with the media buying strategy.

To wrap up, here are five steps to success as brands evolve into multi-moment marketing organisations:

Continued here:
Think of social and programmatic platforms as big tech, not mass media - Bizcommunity.com

Becoming an entrepreneur is a dream to which many of us aspire, and a worthwhile financial goal. Still, many first-time entrepreneurs and even experienced pros can sometimes sabotage their best efforts with some typical mistakes.

When you're ready to roll-up your sleeves and start your own business, keep your eyes open for these issues though they might sound simple, these make or break the fortunes of countless aspiring entrepreneurs.

With a business plan in hand, you'll have a better sense of your funding needs, which will help you avoid two classic traps: over- and under-spending. Some entrepreneurs misjudge costs, and end up spending more than they budgeted or expected. Yet others do the opposite, and by trying to be careful and frugal, end up spending too little to give their business a realistic chance.

Do your best to estimate actual costs of funding your venture through launch and the first year. (The SBA offers a great startup costs tool that helps estimate new business funding needs.)Then, find ways to secure the capital you'll need.

MoMo Productions | Taxi | Getty Images

The same issue of too much or too little is present when considering business partners. In many cases, you can't launch a venture alone you'll need partners or investors for funding and know-how. But you can overdo it, by bringing on too many people, diluting your profit and confusing your strategy. Your business plan will hopefully have addressed this issue, but think further about who should really be involved, and what impact it'll have on your venture.

Do you really know your customer and market? Do you know whether they have a desire or need for your product or service, or whether your proposed pricing makes sense? Do you intend on competing on price, quality, service, or all of the above?

Get to know your customers and market many businesses stumble because they fail to understand their target market. And when you're ready to expand, don't assume new customers in different areas will have the same tastes and priorities get to know them, too.

Finally, too many entrepreneurs have good products or services but do a lousy job of marketing. If you know your customer and market, this should be less of an issue you'll know what blogs they read, where they hang out in real life and on social media.

You can market to them based on their habits and lifestyle. Don't assume traditional advertising is dead, either. Depending on your business, billboards or radio ads might make sense, and over-reliance on social media might backfire. Whatever you do, you must market if you're shy, don't understand marketing well or don't see its value, hire someone who can help.

Entrepreneurship can be the adventure of a lifetime but, like any adventure, it can also be a challenge. Prepare yourself for the common mistakes so many business owners make, and make your path to success easier and more fruitful.

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CHECK OUT: The unexpected reason you may not want to buy a new car, according to Consumer Reports data via Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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Starting a business? Avoid these 5 classic entrepreneur pitfalls - CNBC

UNSPOILED. Shiok Island in Culion, Palawan. Shutterstock.com

BAGUIO, Philippines Culion has been the country's bogeyman since 1907 when it became the last refuge of leprosy patients in the Philippines; its mere mention would scatter people or make them cower even if leprosy was already banished in the island in 2006.

"When we are asked where we come from, we say we come from Coron. We say 'Culion' in the jeep and they go [to] the opposite seat of the jeep," said Culion municipal administrator Maxim Raymundo.

The new movie Culion may help stop the stigma but there is something that Culion has been excelling in healthwise.

Palawan has one of the highest teenage pregnancy rates among the provinces. There are about 12,000 girls 15 to 19 years old who get pregnant every year in Palawan.

Eleven Palawan towns, including Puerto Princesa, are among the top 30 towns in Mimaropa with the highest teenage pregnancy rates.

"We are surprised that they have a very low teenage pregnancy rate in Culion considering they are composed of islands which make it hard to monitor," said Chi Vallido, the campaigns officer of the Forum for Family Planning and Development.

The Forum had been using Culion as a model for family planning and teenage pregnancy prevention for GIDA or geographically isolated and disadvantaged areas.

Last year, Raymundo said that they monitored only 13 cases of teenage pregnancy in Culion in 2017.

Raymundo said that the low teenage pregnancy rate can be attributed to their hands-on approach to education and health.

Culion is composed of 41 islands from the Calamian Group of Islands enveloped by 14 barangays. The Twin Lagoon and Kayangan Lake, which are part of the Coron tour, are actually in Culion.

There are about 28,000 residents in Culion spread over 51,000 hectares, making it one of the least densely populated areas in the country.

As part of Culion Mayor Virginia de Vera's I Heal vision is the 100% completion rate of the 3 elementary and 4 high schools in Culion. Two of the schools now have a 100% completion rate while 3 are in the top 90%. Two remain at above 60%.

Raymundo said that the city has been building satellite schools to reach out to the far-flung areas.

They also dispatched barangay health workers to go with mobile teachers during their visits to the sitios.

This way, Raymundo said, they are able not only to educate the children but also to monitor the health situation in Culion.

The Culion Sanitarium and General Hospital, the only Department of Health-retained secondary level general hospital operating in the Calamian Group of Islands, also established in 2016 its sea ambulance program to reach patients in Culion, Coron, Busuanga, and Linapacan faster, especially patients in emergency situations.

In 2002, the PATH Foundation Philippines, Incorporated, a private charitable organization, also introduced the Integrated Population and Coastal Resource Management (IPOPCORM) initiative in coastal villages in Culion.

PATH Foundation Philippines is concerned about the environment of Culion, which is listed as one of the 14 biodiversity hotspots in the country.

IPOPCORM coordinated with the local government, local non-governmental organizations, community organizations (fishers, women, and youth groups), and local businesses by implementing and managing family planning activities simultaneously with coastal conservation and alternative livelihood strategies.

The distribution and social marketing of contraceptives are coupled with coastal management activities, including the establishment of marine protected areas, community-based management planning, community surveillance efforts, and mangrove reforestation.

IPOPCORM also advocated for strengthened enforcement of existing laws prohibiting destructive fishing methods.

Not only did the coral areas grew back from 25% to 32%, but the acceptance of modern contraceptives among couples and the youth had also increased.

The Commission on Population through its National Program on Population and Family Planning, which seeks to increase the contraceptive prevalence rate to 65% nationally by 2022, has also become active in Culion. It started providing family planning workshops to women and the youth last July. Rappler.com

Read more:
Culion winning fight vs teenage pregnancies through education, health - Rappler