Brand Trust – Social Media – Digital Marketing – Personal Customer Data

How can trust in brands be developed and maintained in an age of digital marketing, speed, mistrust and social media?

This article first appeared in The Australian on 15th February 2019, then via KPMG NewsRoom.

There are issues in trust round politics and marketing.

Brand Trust in Digital Times (Image copyright Pexels)

Brand power in the age of declining trust

Edelman’s annual Trust Barometer report in 2017 carried a headline “Trust is in crisis around the world”. A KPMG report last year found that “trust has declined in almost every major economy and many developing ones”. In a CNN interview recently, Salesforce’s founder and CEO Marc Benioff argued that “companies that are struggling today are struggling because of a crisis with trust”.

There seems no end to the brands, organisations and leaders that have lost the public’s trust. There has been a royal commission into our banks, multiple questions over Facebook’s use of personal data, cheating cricketers, fake news, church leaders charged, and political parties bickering among themselves.

It is hard to believe that some brands and organisations have turned a blind eye to building trust with customers over the past decade. Trust is the basis of all relationships, gained slowly like drops of rain but lost in buckets. It is fundamental to business, symbolised in a handshake and eye-to-eye contact. ……These brands meet the “trust” checklist in the KPMG report – standing for something more than profit; demonstrably acting in the customers’ best interest; doing what you say you will; keeping customers informed; and being competent and likeable.

There is no doubt that brand trust is more complex in a digital world, where social media and data personalisation have enabled brands to act as if they are talking to you in person. Combine that with the exponential growth of individuals’ data that can be captured; digital marketplaces; smartphones; voice technology such as Google Home and Alexa; and the algorithms and deep learning of artificial intelligence, and there are far more opportunities to get brand trust wrong. This is especially so when trust is measured at lightning speed and some decisions around brands are being made by machines acting like humans.

Data became the hottest brand trust issue last year. The biggest data breach involved the Marriott International hotel chain and had an impact on up to 383 million people on the Starwood booking database. This included more than five million unencrypted passport numbers. Facebook had multiple issues, the most discussed being Cambridge Analytica’s access to Facebook users’ data. This data was used to persuade voters to change their opinions in the last US presidential election.

Consumers started to question the trust they had in these brands: one US survey showed 71 percent of people were worried about how brands collected and used their personal data. …… Marketers also had their doubts after YouTube posted ads that appeared alongside offensive videos, leading to a number of companies and their media agencies withdrawing advertising from YouTube for a period.

In the past five years, some of Australia’s biggest companies have rushed to establish or buy into data businesses that can offer insights into the purchasing behaviour of their customers and also use that information to improve their marketing communications……

Some companies have commercialised this data by selling it to outside organisations that match it with their customer profiles, adding to the knowledge they have on their customers. Some have questioned the ethics of this, even if it is anonymous; others ask who actually owns the data – the individual or the companies?

Trust around data relies on the fundamentals: common sense says that being a friendly and helpful neighbour is better for a long-term relationship than being annoying or remote. The personal customer data a business holds needs to be treated in the same way. In a business environment where consumers have more choice than ever, as well as more transparency and lower barriers to switching brands, boards, CEOs and marketers cannot ignore the need to invest in brand trust.

 

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Impact of Digital on Marketing Industry Employee Skills

Digital and any new technology can be disruptive and requires changes in thinking, working, learning, education and training; includes marketing and IT.  However, like computer science, education and even job descriptions do not keep pace with technological change while many working successfully in IT or marketing do not possess related university degree, if at all.  Many are educated in other or similar disciplines e.g. engineering, or self-taught through personal or business need, and industry training or certification is more important than the degree (like CPA in accounting), supported by outcomes.

Following is paid content (marketing) from Digital Essentials on Mumbrella explaining how digital has impacted the marketing industry:

Marketing jobs are radically different in 2019 – but some employees can’t keep up

A revolution in how we consume media has turned advertising on its head, but recruits of all levels aren’t being trained in essential new skills.

February 4, 2019 7:30

Keeley Pope understands better than most how jobs in Australia’s media and marketing have changed over the last decade. A recruiter with 25 years experience, she deals first-hand with exasperated employers who require new starters to have mastered a breathless list of digital skills. “Today, you’ve got to be able to go from editing a video one minute to analysing data the next and then briefing into a post-production house afterwards,” she says.

In fact, that’s just the start of it. Marketing roles in 2019, she explains, can also encompass social media strategy, paid content, e-commerce, app building, project management as well as skills in Photoshop, CMS and copywriting. “Even the mid-level roles are very much hands-on,” she adds. “Now, marketers are publishers in their own right, too.”

These changes are, of course, a result of how marketers and agencies have reacted to the differing ways we consume media – the decline of printed newspapers, say, or the rise of social media and TV-on-demand. The problem is many current employees have been caught cold: either forced to suddenly acquire skills they’ve never been trained for or rejected for new positions outright. “The onus is on the individual to upscale themselves….

….And all that change is affecting how businesses are marketing and growing. New research by PWC and Facebook, for instance, reveals more than a third of Australian small businesses are exporting to foreign markets, and more than a third of companies now earn international revenue within just two years of establishment.

And so brands have reacted. Digital marketing spend has grown by 13% in the last year, up to $2.24bn, with video showing the biggest leap, along with increases to display, classified and search (Google ads, basically). Meanwhile, programmatic spend in Australia has leapt to $1.7bn – a staggering increase from just $84m in 2012.

“The reality is modern market is diversifying,” says Easther. “So employees now need to know a little bit about a lot – whatever side of the fence you’re working on. So, to do marketing well, particularly in digital, you need to be able to hold a conversation, and you need to know the strategy of how all the channels work together.”….

….On Easther’s course, he finds his students range from those starting out in creative agencies to senior marketing directors working client side and even those in media sales. “Some have learned digital from a few different sources and they come to formalise their learning,” he says. “While others have deep knowledge in one area but want to be more versatile. They might be a social specialist, say, but when they have a meeting to discuss programmatic, they wish they could contribute more.”’

For more articles and blogs about digital marketing, digital marketing lecturer and digital or e-consumer behaviour click through.

 

EU – GDPR General Data Protection Regulation – US – Australia

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In the US and Australia there seems to be much ignorance and complacency on the potential impact of the EU GDPR General Data Protection Regulation on private data, data collectors e.g. government agencies, and commercial entities, accessing and using data for commercial reasons; underpinned by lack of citizens’ rights?

‘Data privacy rules in the EU may leave the US behind

January 24, 2019 8.03am AEDT

France made headlines on Jan. 21 for fining Google US$57 million – the first fine to be issued for violations of the European Union’s newly implemented General Data Protection Regulations. GDPR, as it’s called, is meant to ensure consumers’ personal information is appropriately used and protected by companies. It also creates procedures to sanction companies who misuse information.

According to French data privacy agency the National Commission on Informatics and Liberty (CNIL), which levied the fine, Google didn’t clearly and concisely provide users with the information they needed to understand how it was collecting their personal data or what it was doing with it. Additionally, CNIL said Google did not obtain user consent to show them personalized advertisements. For its part, Google may appeal.

In other parts of the EU, similar investigations are currently underway against FacebookInstagram and WhatsApp.

This case demonstrates the increasingly prominent role that the EU intends to play in policing the use of personal information by major companies and organizations online. The U.S. lags behind Europe on this front. As a researcher who studies computer hacking and data breaches, I’d argue the U.S. may have ceded regulatory powers to the EU – despite being the headquarters for most major internet service providers. Why has the U.S. not taken a similarly strong approach to privacy management and regulation?

Do individual Americans even care?

There’s no single answer to why the U.S. hasn’t taken similar measures to protect and regulate consumers’ data.

Americans use online services in the same way as our European counterparts, and at generally similar rates. And U.S. consumers’ privacy has been harmed by the ever-growing number of data breaches affecting financial institutions, retailers and government targets. The federal government’s own Office of Personnel Management lost millions of records, including Social Security numbers, names, addresses and other sensitive details, in hacks. My research demonstrates that hackers and data thieves make massive profits through the sale and misuse of personally identifiable information….

Companies don’t want these regulations

Social media sites’ and internet service providers’ resistance to external regulation is also a likely reason why the U.S. has not acted.

Facebook’s practices over the last few years are a perfect example of why and how legal regulation is vital, but heavily resisted by corporations…..

….Should the U.S. continue on its current path, it faces a substantial risk not only to personal information safety, but to the legitimacy of governmental agencies tasked with investigating wrongdoing.’

 

For more related blogs and articles on digital literacy, digital marketing, digital or e-consumer behaviour, EU GDPR and social media marketing, click through

 

Australian Business Challenges 2019 KPMG

Following is an excerpt from KPMG blog on top 5 concerns for Australian business leaders which include digital transformation, innovation and disruption, regulation, political paralysis and customer centricity.

Australian business leaders describe the coming challenges.

Challenges According to Business Leaders (Image copyright Pexels).

What’s really top of mind and keeping our business leaders up at night (when there’s no axe to grind)

What are Australian business leaders really concerned about when they look forward to 2019?

So our research practice, KPMG Acuity, engaged a broad spectrum of C-level leaders from a diversity of industries to think about the main issues exercising them when they consider 2019.

220 leaders – some with fewer than 50 employees, some running companies with revenues of over $1 billion a year – took time out to respond. Most were from the private sector, but the public sector is represented as well.

In order of importance the top 5 issues are.

  1. Digital Transformation

Just about every CEO has ‘digital transformation’ at top of mind. In 2018, the term ‘digital transformation’ means so many things there is a very real risk that this lack of clarity is causing confusion, leading to diverse agendas and ultimately missed opportunities.

Digital transformation includes investments in digital technologies, but also spans the modification of an organisation’s functions, its ways of working, its back office technologies, and occasionally forging a completely new business model. True transformation should also include culture – often the poor cousin behind the more visible technology investment.”

  1. Innovation and disruption

The fear of disruption, on its most elemental level, is straightforward: the constant worry that your competition will use new tech and methods to do what you are not. But as we look toward 2019, we see the dilemma is actually more immediate, more tangible, and more complex.”

One reason for this is the current global marketplace has made it abundantly clear that the network effects of the innovation race tend toward winner-takes-all. There are spectacularly outsized growth opportunities for the lucky few – and the potential to get left in the dust for everyone else. This raises the stakes enormously.

  1. Regulation

This included both the sector-specific regulations facing the financial services industry and the broader challenges of harmonising business regulation; cutting red tape; and concerns over the capacity/capability of Australia’s regulators.

While we don’t wish to see needlessly bureaucratic demands on business, there is a danger of seeing new regulation as purely negative. Reporting can be a strong discipline to get things done, so we would urge businesses not to take their eyes off the ball and get into a defensive mindset if additional regulations are introduced in their sectors, or generally in 2019.

  1. Political paralysis

Fourth on the list of issues worrying business leaders was the ongoing political log jam at Canberra. There was uncertainty over the prospect of significant reforms or necessary changes, and a lack of belief that Australia’s major parties can work cohesively on national agenda items.

Many CEOs referred to energy policy as an indicia of political paralysis. The problem was a trilemma – price, stability, environment – but political discourse could not deal with the three issues and it drifted to one of the three depending on the political perspective. As a country we have to overcome this problem and start relying on evidence-based policy.

  1. Customer centricity

Customer not only came fifth in our list – but was the issue that permeated almost every other answer. It came up in responses ranging from regulation – where it needs to be seen through a lens of driving a closer connection of trust with your customers – to big data, where the real issue, said respondents, was ensuring every sector in the business has a plan to collect and deploy its data to create real value for customers.

The companies that truly get it are those who understand there is no silver bullet. These companies understand they need to have engaged, helpful people delivering outstanding service. That these people need to be working in alignment with a great digital experience. And that it is this combination that drives loyalty, advocacy, and commercial performance.

Read our full analysis of the top 10

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Importance of International Student Satisfaction in Marketing Communications

IEAA International Education Association of Australia has released a report by Ravichandran Ammigan PhD and Debra Langton looking at four dimensions of the student experience arrival, learning, living and support services; an extract of the report follows below.

In summary, the very useful report finds important to focus upon satisfied students who then spread positive word of mouth to prospective students; this is supported by previous research.

However, the use of the traditional expression ‘marketing materials’ does not seem to match the language of international students who are ‘digital natives’ and would most likely use social media under the umbrella of digital marketing.  Further, related to marketing, and contrary to the report, Australia does have issues in developing diversity outside of PRC and India, for which effective digital marketing system (not a one off strategy) should be a solution.

Nonetheless, it does focus upon the need to have students as central in marketing and one could suggest that in addition to maintaining quality for satisfied students, also involving students in creating customer generated media that can be used in digital marketing.

International student experience in Australia

In today’s increasingly competitive market to recruit and retain international students, it is critical that higher education institutions stay current on student perceptions, preferences and experiences with various aspects of the university environment. Ensuring students have the right level of support and resources can contribute to their academic, social and cultural success. It can also directly influence their overall institutional satisfaction and whether they would recommend their institution to prospective applicants.

This paper investigates the experience of international university students in Australia with respect to arrival, learning, living and support services. It is based on previous research by Ammigan and Jones (2018) and uses data from the International Student Barometer (ISB), to examine the relationship between student satisfaction and institutional recommendation for over 21,000 international students at 34 Australian institutions.

This paper provides guidance for university administrators and support staff on how to adjust and improve resources and services for international students, which can be an important component for enhancing institutional recruitment and retention strategies.

International students in Australia

As with other leading destination countries around the world, the higher education student population in Australia is culturally diverse, which presents opportunities for both international and domestic students to interact with peers from different cultural, social and linguistic backgrounds (Arkoudis et al., 2013).

According to the Australian Government’s Department of Education and Training (2017), more than 600,000 international students chose Australia in 2017. This is a record high and represents a 13 per cent increase since 2016. International students now make up more than a quarter of all students at certain universities.

In 2017, the international student sector generated over AUD30 billion, making it the country’s third-largest export (ICEF Monitor, 2017). It is predicted that Australia will overtake the UK to become the world’s second highest destination for international students in 2019 (Marginson, 2018).

International student satisfaction Improving student satisfaction is a major goal for universities – a satisfied student population can be a source of competitive advantage with outcomes such as student retention, recruitment and alumni relations (Arambewela & Hall, 2009). Student satisfaction, which generally results from an evaluation of a student’s educational experience, occurs when actual performance meets or exceeds expectations (Elliott & Healy, 2001). In recent years, there has been a growing interest from international educators to gather and utilise international student satisfaction data as a way to influence campus change and strengthen support services for this community (Yu, Isensee, & Kappler, 2016).
This is not surprising as the international student experience can be a critical recruitment and retention strategy for providing a high-quality education and remaining competitive in the global student market and world rankings (Shah & Richardson, 2016).

The Australian Government’s National Strategy for International Education 2025 recognises the importance of student experience. Goal 2 outlines a number of actions that expressly address the delivery of supports that:

  • meet or exceed student needs
  • build capacity for employment; and
  • encourage a strong international student voice to inform continuous improvement.

A study on the attitudes, goals and decision-making processes of over 67,000 prospective
international students from 193 different countries found that course offerings was the main driver of student decisions on institution and location, with the expectation that the course of study would lead to career prospects (QS Enrolment Solutions, 2018).  Reviews and marketing materials showcasing the quality of teaching and experience of academic staff was the second most influential factor in choosing their institution.

The same study found that prospective students were most concerned about the cost of living and being able to afford their tuition fees. Having a relative or friend in a destination country and receiving information about local culture and customs can help reduce concerns and worries about going to study abroad and impact students’ choice of a particular location. Campus safety and a welcoming environment were also important factors in international students’ institutional and destination choice…..

Satisfied students are strong advocates

For international students, choosing an institution is based on a number of ‘push’ and ‘pull’ factors, which may influence them to leave their home countries to study abroad (Banjong & Olson, 2016). Such factors include knowledge and awareness of the host country, quality of education, institutional reputation, tuition and living costs, scholarship opportunities, safety and security, university environment, quality of life, visa requirements and post-graduation employment options
(Mazzarol & Soutar, 2002).
Mavondo et al. (2004) suggest that institutional recommendation is closely related to satisfaction, where satisfied students are more likely to recommend their institution to potential or future students.  It is therefore important, especially from a marketing and recruitment perspective, for institutions to understand the factors that impact upon international student satisfaction which in turn drive propensity to recommend.

Reference:

Ammigan, R. & Langton, D (2018). The International student experience in Australia: Implications for administrators and student support staff. International Education Association of Australia (IEAA). Retrieved from www.ieaa.org.au

See original report via https://www.ieaa.org.au/research/student-experience IEAA Student Experience for full list of references.

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