The Value of Zero: Accuracy and Trust

Data-driven marketing has always focused on getting as much information on your customers as possible through various channels. As privacy grows increasingly important and tracking becomes increasingly limited, zero-party data (ZPD) is on the rise.

Conventional marketing wisdom has always been that the more you know about your customer, the more effectively you can target them. For that reason, marketers have always been trying to get their hand on as much data as possible, relying not just on their own first-party data but even paying for second-party and third-party data. 

To clarify terms, here’s a rundown on the differences in data sources.
First-party data

First-party data is what a business receives directly from a customer typically as a result of purchases, subscriptions, or points of contact. It can be the result of what a customer actively fills in on a form or passively shares as a result of cookies that the customer accepts by using the brand’s site or the tracking that comes through use of an app.

While a complete record of information given by a customer is valuable, for businesses that haven’t had much time to gain a complete history, it may not suffice to inform truly tailored experiences. That’s why businesses will pay for access to additional information through second and even third parties.
Second-party data

Second-party data is first-party data acquired by another company that is then sold to a business that wants more information about its customer base. Drawing on the more thorough information can fill in more of the customer picture, but it’s still limited to what a single business has been able to gather on the customers, which is why some will pay a broker for data.


Third-party data

Third-party data is different from first and second party in that it draws on multiple sources of data that a separate company puts together into a single dataset to be sold to those in the market for that kind of customer information. Typically, the company in the business of delivering data will purchase first party data from a number of companies to create these data packages for others to buy through the data exchange marketplace.
Data drawbacks

While going from one to three increases your data resources, it’s not without its drawbacks. As anyone can buy third party data, what a business buys is not unique to it. As a result, it is very likely that all businesses competing for the same customers are working off the same data set.

Also since the establishment of GDPR in Europe and CCPA in California, marketers have had to respect consumer-set boundaries for the collection, use, and sale of their data.

The rise of such legislation has shed more light on privacy issues that has created pressure for platforms to stop enabling data collection without users’ knowledge. That is the story behind Google’s resolution to phase out third-party cookies and Apple’s new iOS setup for informed consent on apps.

The new frameworks don’t only curtail marketers from using data obtained from outside sources. They can even limit some first-party data that businesses have obtained without informed consent by tracking consumer behavior with cookies, pixels, or cross-device identification (XDID).

That is why a couple of years ago, we started hearing about zero-party data or ZPD. The term has been credited to Forrester, which presented it in Predictions 2019: B2C Marketing Report.

This approach has gained momentum over the past couple of years. AW360 predicts that a quarter of CMOs will be looking to implement ZPD in 2021.
The zero-party solution

As both zero-party data and first-party data take in information directly from the customer, there is some overlap between the two. The crucial difference between them is that zero-party data only includes what a customer knowingly and willingly shares.

That means that customers are in full control of the information they share with the business. They are willing to give their data if they feel they can trust the brand and are getting something of value in return.

Read more in  Zero to Hero: Providing Personalization & Privacy

The Pause that Refreshes Marketing Relationships

The old-time tagline for Coca Cola makes a lot of sense when applied to marketing, particularly for a holiday that they don’t want to be thinking about right now.

 

I just got an email from ShopRunner that really got my attention far more than anything I’ve ever seen in a marketing email. The subject line was “Skip our Mother’s Day emails this year.”

With so much clamor to sign up for emails, some of which have already pushed Mother’s Day marketing in mid-April, this subject line really stood out. So even though  I delete most of my ShopRunner emails automatically, just as I do most marketing emails, I clicked this one.  It showed me thsi: 

 

Pressing pause took me to a landing page that showed this:

It’s not like ShopRunner is giving up its raison d'être to promote brands that participate in its program.

As it says, the pause on Mother’s Day communication doesn’t mean that it is pausing all marketing messages. In fact, right under the banner acknowledging my pause were two banner ads for products it is promoting now.

It’s only offering to pause one specific marketing theme. It's actually a smart move not to push their Mother’s Day marketing in the face of people for whom it is just so much spam.

People can have any number of reasons not to have to deal with a bombardment of Mother’s Day messaging. They may find the messages to be irrelevant or, even worse, a sad reminder that they’ve  lost their mothers or their position as mother to children who are gone.

The move is smart because it offers to lessen email fatigue and reduce the irritation of spam. We all get more marketing message than we can even think of responding to. Certainly, customers who recognizes which occasion they'd rather not hear about would appreciate the consideration of a brand sparing them from that onslaught.

Really, this is such a great idea that it should be applied to all occasions typically taken up for marketing, like Father’s Day, graduations, back to school, Thanksgiving, and Christmas, etc.

Related: http://writewaypro.blogspot.com/2021/04/why-less-is-more.html

http://writewaypro.blogspot.com/2021/01/7-ways-to-grab-customer-attention-in.html

The Ad that Delivers What Women Want

 "What does woman want?" That question  perplexed that father of modern psychology, Sigmund Freud. It continues to puzzle marketers today, as we saw in What Women Want to See in Ads.

 The truth is that the answer was set out well over 500 years ago in one of the legendary knight stories, The Wedding of Sir Gawain and Dame Ragnell: Spoiler alert: when the knight was given the choice of having his otherwise hideous-looking wife beautiful at night or during the day, he lets her make that decision and  was rewarded with beauty 24/7. 

But that insight of 1450 has been lost over the generations as marketers seek to push on women what they want instead of empowering them to make the decision for themselves. But one swimsuit company got smart about it and so has seen a very positive response to its ad on Facebook:

We proudly want to introduce ModLi.

A different kind of swimwear.

Sometimes - the usual bikini/one-piece is just perfect. Whether you are sun bathing, in a hot-tub with friends, going to the beach with your partner, etc...

And for "other" situations in life, ModLi is perfect.  Playing with your kids on the beach, going to the pool with family, swimming, water sports, or just walking on the coastline.

Benefits:

- Sun Protection (UPF +50 Reducing harmful rays by 98%)

- No wardrobe "Malfunctions"

- Comfortable "It's like the difference between wearing work clothes and sweatpants"

- Lab Tested Fabrics

- Designed by professional designers with customer requests in mind

The ad served on Facebook garnered 6.7K reactions, 683 shares, and 1.2K comments, a sample of which you can see below:

The large number of likes on many of these comments indicate that they do accurately reflect the feelings of many women. They like having  the option to choose if they wish to cover up or not without being judged for those choices. 

Read more in  The Answer to What Women Want in a Swimsuit Ad

Today's targeted marketing is powered by data and automation

 Marketing is always more effective when it is more targeted. As a result of integrating data and algorithms, marketers are able to now deliver a personalized customer experience at scale. 

There are various ways to target specific customers, and approaches range from lumping customers into very broadly defined categories to getting a lot more fine-tuned about the segments and responsive to individual customer behavior .In collaboration with Google, Deloitte put out a Digital transformation through data: a guide for retailers to drive value with data that took a closer look at these gradations. 

It ranked them as follows:

• Limited segmentation: All users are analyzed in broad segments. 

• Basic segmentation: Uses standard characteristics (e.g., gender, geography) for segmentation.

• Detailed segmentation: Segments are based on personal and behavior

• Dynamic segmentation: The UX / UI can respond to a customer’s in-session behavior as he or she exhibits different segment characteristics.

Achieving the detailed level depends on much more data than the static kind that is used for basic segmentation, and advancing to the dynamic level requires a level of automation that will enable recommendations and responses to go out in real-time. 

 The coming AI revolution in retail and consumer products invoked the women’s clothing store,  Avenue Stores LLC as an example of dynamic segmentation. It explained that  it brings together “data across multiple touchpoints, including in-store activities and market trend analysis, to learn and reason about what customers want and when they want it.” On that basis it can reach out to customers with communication tailored to their situation in real-time, which makes it possible to capture their attention while in “‘shopping mode.” 

Marketing for loyalty

Being in touch with your customers to let them know you’re there for them without pressuring them to buy can pay off in winning their loyalty and business later. In this case, your automated messaging doesn’t have to respond to segment your audience, as you would be working off a general form of communication.

When you don’t have history

But what if you do need to sell your products now? Marketing recommendations can work even on the more basic level, not just for new customers for whom you have no history to flesh out a profile but for the type of marketing communication that depends on general trends. For example, a very broad segment of all people in the United States can work for promotions tied to events shared by all due to the calendar, whether it’s Mother’s Day, Memorial Day, July 4th, etc. 

You don’t need to know much about your customer other than that they’ll know what these days are because they are on their calendars due to living in the United States for the trending algorithm to work well. That makes using this approach ideal for customers for whom you don’t have first-party data.

It doesn’t matter so much what they are normally interested in or what they’ve bought before when you’re sending out a marketing message about buying their mother something before May 10. However, if you do have information about the customer, say you know they’ve ordered flowers for their mother last year, then you can combine the trending recommendation with what you know about their behavior.

Read more in

Advanced Segmentation and Automation Are Changing the Marketing Game

You've come a long way, baby, but you haven't yet arrived

The current state of marketing to women has a vibe that harkens back to the print ads for Virginia Slims cigarettes that ran through the 1970s and 80s with the tagline, “You’ve come a long way, baby.” The backgrounds were a representation of the bad old days of restrictions on women that contrasted with the confidently posed model holding her slim cigarette.

The bad old days for marketing featured blatantly sexist ads in which women aspired to nothing more than pleasing their husbands or on catching a husband by being pretty and ladylike. We have moved on, but not altogether.

Marketers have become aware of the need to move with the time and have adapted ad images accordingly. The way women are represented in ads is no longer limited to airbrushed models who exhibit the “right” figure, skin tone, hair, and age.

While ad imagery has come a long way, surveys of women indicate that marketing still has a long way to go.


Only 29% of American women believe advertising portrays them accurately is the title of Callie Schweitzer’s LinkedIn article posted on March 9, 2021. The statistic comes from Morning Consult. Even men weren’t fully convinced, as less than half (44%) said they considered women’s representation accurate.

That's not exactly passing marks.

A flame-broiled fiasco on International Women’s Day 2021

You don’t have to look hard for the brand that seriously misread the room in issuing a Tweet in honor of International Women’s Day, and the Internet made sure you knew about it even after the Tweet was deleted.



The extremely provocative-sounding declaration was meant to reference support for women who become professional chefs and its project called HER (helping equalize restaurants). But without that immediate context provided only within the print ad that you can see below, there was the apparently sexist declaration alone, and that boomeranged against the brand.



The backlash was so strong, that the account had to offer the combination of an apology and reason for deleting the tweet.



Burger King fell right into that marketing hole that Schweitzer complained about with an assertion that “perpetuates centuries-old cultural stereotypes of what society ‘expects’ women to be.” It should be obvious that marketers should steer clear of marketing to women in such forms. But it is still trickier for them to identify what women do want to see and hear in marketing.

Read more in What Women Want to See in Ads

Podcasts may be the missing ingredient in your marketing mix

• Brands that want to strengthen their relationship with their customers are discovering the medium of podcasts. 

• Podcasts have proven effective for targeting audiences, engaging their attention, and converting customers. 

• Purchase intent rises significantly for podcast listeners as it captures their attention even when TV, radio, or digital ads fail to. 

Podcasts take off  

The term “podcast” was not something you would have associated with marketing a decade ago. But that has changed drastically as podcasts have been steadily rising in popularity. 

The number of podcast listeners in the United State rose from a mere 32 million in 2013 to a projected 120 million for this year, Statista reported. It derived a compound annual growth rate of 17% that anticipates an audience of 164 million for podcasts in 2023.’ 

 Podcast ad revenue has also risen tremendously, more than tripling over the space of just four years. According to Music Oomph!, Podcast ad revenue in 2017 was $317 million, but it is expected to hit $1.13 billion this year and to rise to $1.33 billion next year. 

Become the best CRMer you can: 

Read more in Why It May Be Time to Add Podcasts to Your Marketing Arsenal

The Big Three in Crypto: Bitcoin, Ripple and Ethereum

https://commons.wikimedia.org/wiki/File:Cryptocurrency_logos.jpg 

In the beginning, there was Bitcoin, then came Ripple, and then Ethereum. Along the way, many others came and went as cryptocurrency and blockchain protocols moved from the fringe to the mainstream, but these are still arguably the top three.

Cryptocurrency shares the fundamental definition of all forms of money: it is a medium of exchange, a measure of value, and a store of value. What sets it apart from fiat currency, though, is the following:

1. It has no physical form and exists solely as a digital bit of data.

2. It is not issued by a government entity.

3. It is completely decentralized and clears transactions through network consensus rather than through the authorization of a central bank.

4. Transactions cannot be reversed or charged back as is the case for those cleared by banks.

Beginning with Bitcoin

Though there had been some plans for a system of digital currency set out in the late 20th century, for the early part of the 21st century, the Bitcoin system and its currency unit, bitcoin or BTC was synonymous with cryptocurrency.

In October 2008, the name Satoshi Nakamoto appeared on the paper, Bitcoin: A Peer-to-Peer Electronic Cash System, which explained how the setup of blockchain technology was used in the cryptocurrency.

A blockchain is a decentralized ledger that allows a peer-to-peer network to obtain confirmation of transactions without waiting on a central clearing authority.

Read more in  The Differences Between the Top 3 Cryptocurrencies

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CRO is like basketball

free image from https://www.dreamstime.com/photos-images/basketball-hitting.html

Conversion rate optimization (CRO) is the term for what marketers do to determine which versions of landing pages or sites yield the best conversion rate. The conversion itself depends on the specific goals in place, the call to action (CTA).

The conversion for an e-commerce site is usually completing a purchase. But it can also be just getting that customer to take the first step on the purchase journey. In such cases, the goal may just be having the prospective customer indicate some level of interest and establishing some kind of connection.

That’s why you have to be clear on your metrics for CRO. It can count as a conversion to have the customer sign up for a subscription to a company newsletter, put in a request for a quote, or even just sharing an email address by signing up for an account.

The way CRO works is like finding the techniques a basketball player can use to get more of the balls he throws into the basket. He’s not taking more throws but throwing more effectively to achieve his goal and score points for the team.

 
That doesn’t assure that they will win every game, but it will tilt the odds in their favor.

 

How to calculate CRO

You calculate the conversion rate by dividing the number of conversions generated by the number of visits to that page, whether it’s a home page, landing page, or blog post. That means that if you have 10,000 visits, out o f which you have 150 conversions, you have a1.5% conversion rate. If your optimization results in getting 200 conversions out of the same number of visits, you’ve achieved a 2% conversion rate.

Given that it is a percentage, a high conversion rate is not a function of a larger number of visits but of more of those visits translating into conversions. That’s what it means to optimize the rate, getting more value out of your existing traffic. It’s not about generating new visitors but out of getting more of the ones you draw to convert.

Phases of conversion rate optimization

CRO involves testing various attributes, from colors to picture placement, to button shapes, to the steps involved in checkout. The first phase in the process of CRO is the research and hypothesis phase, in which the particular attributes that are correlated with better conversions are identified. They are then subject to A/B testing to discover if the site with them does indeed perform better with a lower bounce rate than the one without them.

Why conversion rate optimization is important

Before CRO was adopted as a data-driven practice, the only way to discover if something was promoting or hindering conversion was to set up your site that way and wait a while until you had results. You would then have to guess what needed tweaking, and through trial-and-error may have finally arrived at an optimized site. So while you may have arrived at the same point in the end, it would have only been achieved at the cost of lost conversions for all those months of trying to figure out what are the bottlenecks in your conversion funnel. Now A/B testing tools make it possible to discover the most effective way to set up your website by working through different versions to get data on what works more quickly.

Conversion rate optimization best practices

In general, conversion rates improve when visitors have to do less work to find what they want. That means that sites designed according to CRO best practices typically include a clean look like that allows them to easily navigate to where they want to go, obviously placed and colored specific call to action buttons, and no jumping through hoops for the contact information that provides leads and builds connection, whether that is a phone number, email, or live chat. All those contribute to expediting the customer's buying decision.
Benefits of CRO

Applying CRO makes your sites work better to achieve your goals, and that brings several benefits:

Better bang for your marketing bucks
When your landing page delivers more conversions, you get better returns from your ad spend. CRO helps drive site visitors toward what they seek to complete the purchase journey. Having that in places on your site delivers a better return on all of your marketing investments, and you will see revenue growth as a result of more conversions.

Improved understanding of your visitor customer experience

Conversion research reveals both quantitative and qualitative data about visitor responses. It reveals which parts are sticking points that can prevent them from proceeding through their customer journey, as well as what they do find appealing in your site. Working off that information, you can better plan your content and layout going forward based on deeper insight into your target audience.

Getting a leg up on your competition

Better conversion rates indicate increased visitor engagement that can boost your traffic as well as reduce bounce rates. Because Google takes bounce rates into account in ranking, getting visitors to stick around a while on your site can improve your search engine ranking to achieve a leg up on your competition. That, in turn, allows your site to draw more visitors that will convert at a higher rate.

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