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.

 

For more blogs and articles about digital marketing, social media marketing and consumer behaviour click through.

 

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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

For more articles and blogs related to consumer behaviourdigital technology, management & leadership, and business strategy click through.

 

Marketing Strategy – 4Ps – 7Ps – 4Cs

The Marketing Mix 4P’s and 7P’s Explained

The advent of significant service sectors and digital marketing and communications, have changed both marketing strategy and dynamics of business in reaching consumers.

From the Marketing Mix (2018):

‘Before we go into all the elements of the marketing mix, and to avoid confusion between the 4p’s, 7p’s and even the 4c’s – you should pay attention at the image below to understand what makes up the entire marketing mix.

4Ps 7Ps and 4Cs in marketing strategy and digital world.

4Ps or 7Ps in Marketing? (Image copyright MarketingMix 2018)

The image above is a simplistic diagram of the elements that are included in a marketing mix.

It is a basic concept, but here’s the cold hard truth…

If you don’t understand it in detail or at all, then there is a fairly certain chance that you are missing out on the key ingredients that will ensure scalable success from the ground up.

It has been said many, MANY times in business that if you don’t know your target market well enough and figured out what they exactly want, you’ll commit entrepreneurial suicide and the business will inevitably fail.

On the other hand, you can be sure to attract mountains of profits when you have a deep understanding of these concepts. Understand this fully and you will know exactly how to maximize profits on your own sustainable business or help become a valuable asset within your company and gain endless promotions.

Sadly, for many existing marketers and aspiring marketers, this concept is glossed over as “everyone seems to know what it is” and is disregarded as basic knowledge. But do you really know what it is? Let’s find out.

Now, what is a marketing mix, exactly?

 

  • Marketing Mix 4P’s Product, Price, Place and Promotion.

  • Marketing Mix 7P’s People, Process and Physical Evidence.

  • Marketing Mix 4C’s Customer Value, Cost, Convenience and Communication.’

 

Of the above key changes have occurred in how ‘people’ ‘communicate’ in a digital environment carrying word of mouth WOM quickly and broadly to attain value from trusted sources, in other words out of the control of conventional marketing.

 

Reference:

Marketing Mix 2018, The marketing mix 4P’s and 7P’s explained, viewed 17 July 2018, < http://www.marketingmix.co.uk >

 

 

 

International Education – Experience of Students and Stakeholders

International Education: Experience of Students and Stakeholders – Quality, Marketing and Customer Journey.

Summary of minor research dissertation for Master of Education (Education & Training) awarded in 2002 by Victoria University, Melbourne, related to international education according to former international students and stakeholders leading to a cyclical quality and marketing paradigm.

What is the experience of international students and stakeholders?

International Student Experience (Image copyright Pexels)

Proportionally less funding due to ageing permanent populations and workforces competing for state resources compelled universities and education institutions to attract full fee paying international students to both make up budget short falls, support tax base and subsidise domestic students; temporary immigration to balance government budgets.

Australia has been very successful in attracting students from the Asian region, especially India and China, with commensurate calls for more diversity e.g. students from Europe and Africa.  While quality and marketing are strongly related, research into these factors can assist in more systematic and informed marketing, especially through qualitative insights as opposed to interpretation of solely quantitative data.

Existing research is generally restricted to state sponsored surveys of general student population and institutional level students, already on campus.  Good research should use qualitative techniques e.g. grounded theory, to allow issues or concerns of students and stakeholders emerge without prescribing factors restricting and limiting insight.

Qualitative research methods can achieve validity, simplicity or utility and reliability of factors to be evaluated in international education at the institutional, faculty of course level as part of quality and marketing system.  According to an international education researcher:

“‘If they don’t like our courses, they wouldn’t come would they? I haven’t heard anyone complaining, have you?’

Attitudes such as these, though seldom voiced loudly or publicly, may be covertly present in many higher education institutions. Nevertheless, in spite of the fact that all too many institutions see overseas students solely or mainly in financial terms they are also an important educational resource, bringing fresh perspectives to our culture and are by no means simply a lucrative nuisance to be tolerated”

Already we are observing how globalisation exemplified by increasing mobility for travel, study, work and life leads to more competition or choices for international students.  Accordingly, institutions whether international and/or domestic, need to satisfy stakeholders through feedback, comparison and improving performance or quality; not waiting for state sponsored surveys.

To achieve consistent quality of value creation and delivery to the customer, sustained research and feedback from intermediate and final customers is required.  Without ongoing internal and systematic market, social and education research there is a danger of institutions, especially large, losing touch with students and stakeholders therefore not delivering a quality service; thus compromising their survival.

For related articles see Andrew Smith’s profile on Academia.

International Education Marketing – Conventional versus Digital

Traditional International Education Marketing

 

There have been criticisms for some decades regarding the effectiveness of universities’ and related education institutions’ international marketing and their ability to identity what the market needs and communicating effectively (Nicholls et al., 1995).

 

Anecdotal complaints from within larger institutions, whether faculty or administration, is that even with high enrolment numbers, there is little understanding of ‘how’ students came to be enrolled, let alone those prospective students who did not, with indirect or invalid KPIs (key performance indicators).

 

This is compounded further in large entities by organisational structures on large campuses, leading to potentially sub-optimal co-ordination between international marketing, admissions, web marketing team, suppliers or agents and students; resulting in silos impacting analysis of communication and information sharing.

International Students - Digital Marketing

International Education Digital Marketing

(Image copyright Pexels)

Conventional Marketing or Sales?

 

Marketing strategy emerging in the 1980s relied upon travel to physical recruitment events, distribution of brochures or ‘marketing materials’ by hand, appointment of agents; mostly short-term sales and ROI model or basic ‘4Ps’.

 

This latter financial and physical ROI method of evaluation e.g. numbers of brochures distributed, and students recruited, may not be highlighting the important factors or process leading to enrolments, or missing many factors altogether e.g. WOM (word of mouth)?

 

The assumed positive outcomes from such strategies may be correlated with other factors such as ongoing WOM with peers, suitable course availability or online visibility.  Previous research had already highlighted critical factors of significance including need for innovation, quality staff and image, service culture, good use of information technology (IT), healthy financials, technical excellence and broad range of courses (Mazzarol, 1998). There is focus upon internal human and technical resource factors required as inputs for good marketing and communication, but not behaviour of those seeking relevant information.

 

Meanwhile, over ten years ago formal research recognised and confirmed in decision making of a student sample, it’s course first, over reputation and destination, along with creating awareness through search engine optimised (SEO) visible websites to be found directly and easily (Gomes & Murphy, 2003).

 

This latter study is one of the few formal research articles related to international student purchasing behaviour available in the public domain, yet emphasising the importance of SEO and digital over ten years ago.  However, Australia’s pre-eminent and university owned student marketing and recruitment vehicle IDP, like most and according to formal job description, does not view analysis of enrolled students or other prospective students as important or essential (IDP, 2016)?

 

There has been little if any related or formal research on how students find information except some industry groups, mostly in Europe about ‘how’ prospective students behave and interact.

 

For more articles or blogs on education, training, marketing and society, click through to Academia profile of Andrew J. Smith.