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The Marketing Gap
 

The Marketing Gap

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David Cole of fast.MAP outlines the changes that have happened across the last 7 years of the survey. ...

David Cole of fast.MAP outlines the changes that have happened across the last 7 years of the survey.

Beginning this year, an increased focus on promotions has revealed significantly more areas where Marketers feelings are not borne out by the facts.

This presentation runs through all of the key areas correcting the impressions in some critical areas.

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  • Our beliefs, LIFE EXPERIENCE and outlook are usually FUNDAMENTALLY different to that of our customers AND the world never STOPS. Its always CHANGING. So what was right last year can be VERY VERY wrong this NOW.
  • The fast .MAP/IPM Marketing-GAP Tracking Study, is the direct marketing and promotional industry's most high profile t racking study . It has been run annually by fast .MAP since 2005 and this year we are PROUD to PARTNER with the IPM And VERY grateful for MMC’s sponsorship of the STUDY It monitors consumers direct marketing and promotional activity and records their changing attitudes It is UNIQUE in not only tracking consumer opinion, but SIMULTANEOUSLY monitoring how closely marketers are keeping in TOUCH with changes in CONSUMER motivation and tastes.
  • All of the MAJOR MARKETING MEDIA and many of the UK’s top direct marketing SUPPLIERS quote its content In 2010 there were over 50 media mentions Marketing Week have a MAJOR ARTICLE on the content appeariing tomorrow
  • If you complete your short feedback form there is a copy of the most recently printed report – FRESH OFF THE PRESS
  • There is so much choice for the marketer these days. And it is changing all of the time.
  • These were the results for 2010. showing an overwhelming preference for EMAIL and DIRECT MAIL
  • In 2011 EMAIL gets very close to Direct Mail in popularity
  • And HERE we see what MARKETERS think. There is a GENERAL OVER- ESTIMATE of how enthusiastic consumers are with EACH CHANNEL There is a MASSIVE over estimate with SOCIAL MEDIA and TWITTER as well as SMS, MOBLE and LANDLINE
  • Mail and email EQUALLY POPULAR ANY OTHER MEDIUM remains exceedingly low With AVERAGES OF LESS THAN TWO %
  • We asked what SUBJECTS consumers would be happy to hear about through which route.
  • It’s a LITTLE DIFFICULT to READ, but it shows two things. FIRSTLY, and GENERAL OVERWHELMING affinity to Direct Mail and EMAIL Secondly MARKED differences within a medium for particular product / services. The detail of these are available in the main report. (WAVE REPORT
  • Direct Mail is a very MATURE and ESTABLISHED medium but one that consumers are relatively positive about So what DO CONSUMERS think about it? And how has this CHANGED in the last YEAR And what is the GAP with MARKETERS?
  • Highest MARKETING MAIL opening level since tracking began in 2005 87% of consumers OPEN DIRECT MAIL Increases in number opening BOTH WARM and COLD mail.
  • Nine out of ten people open mail packs (up 8% in a year)…. Why?
  • From a brand or company THAT I KNOW And PERSONALLY ADRESSED to me were the main reasons last year
  • And this ONE is the results for 2011 in RED
  • Here we see what Marketers thought Whilst quite CLOSE on some there is a significantly overvaluation of AESTHETICS
  • SO to CONCLUDE ; We now have the Highest MARKETING MAIL OPENING LEVEL since tracking began in 2005 Increases in BOTH NUMBERS opening WARM and COLD For 7 years now more than HALF of consumers have been most likely to open mail from a known company/brand PERSONALISATION has increased in importance as a motivator and moved into second place INTERESTED IN PRODUCT or SREVICE is almost as important
  • Now we look at different SECTORS
  • These are the 2010 results
  • And this is the 2011 results for CONSUMERS
  • Again a GENERAL OVERESTIMATION of how POSITIVE consumers are specifically in some areas. LOAN/CREDIT CARD CARS EDUCATION / FURTHER EDUCATION COURSES a massive 40% over estimation
  • These are LAST YEAR’s results
  • And this years - 2011.
  • Gaining the INTEREST OF THE CONSUMER seems to be key Although this INTEREST generation is not necessarily about AETHETICS which yet again is heavily OVER EMPHASISED There is a big GAP here on some important areas Lack of PERSONALISATION is cited by only 20% of consumers for a reason to throw mail away, whereas Marketers believe this accounts for 60% Perhaps surprisingly incorrectly addressed, is given by only 8% of consumers as reason to throw mail away, whereas marketers see this as 46%, a five fold GAP
  • We asked some general questions about ADVERTISING MAIL
  • This is how CONSUMERS ANSWERED Although CONSUMERS are generally positive towards advertising mail VERY FEW TRUST IT 40% KEEP MAIL that’s useful and a SILIMAR amount appreciate reading it if it is RELEVANT A HIGH 1/3 rd ACTIVELY SEARCH FOR COUPONS / DEALS
  • Marketers OVERESTIMATE the TRUST that consumers place in advertising mail. Even at 20% it is HUGELY with trust only at 2%. Marketers consider that 60% of consumers will be “REALLY ANNOYED” by the amount of mail, when the number is close to 40%. And yet again the way the mailing LOOKS is seen as significant by 40% of marketers whereas only 18% of CONSUMERS
  • Now we turn our ATTENTION to the PHONE and SMS MARKETING What do CONSUMERS think of these. And are MARKETERS ACCURATE Is there a GAP?
  • There is a SLIGHT IMPROVEMENT on last year with 8% expressing a preference for contact. BUT even the most POPULAR areas, are RELATIVELY UNPOPULAR for telephone. The FAVOURITE – COMPETITIONS is only 24%. So; TARGETTING AND TIMING is everything with this INTRUSIVE AND EXPENSIVE channel
  • Given the strong feeling people have about marketing phone calls it is not surprising that such high numbers are registered with the TELEPHONE PREFERENCE SERVICE. This allows you to stop cold marketing phone calls. WHY DO PEOPLE REGSITER
  • Interestingly marketers generally UNDERESTIMATE consumer reaction towards TPS The highest reason is “ BEING DISTURBED IN LESIURE” at nearly 75% for CONSUMERS and 50% for MARKETERS In 2010 SILENT CALLS were the main reason 71% but this has dropped back slightly to 67% ( confirmation that the telemarketing industry is successfully addressing the silent calls issue) . Surprisingly only 18% of CONSUMERS cite BAD EXPERIENCE WITH COMPANY in contrast to an expectation of 45% of Marketers thinking this. This indicates it is the medium rather than the way it is executed that is the cause.
  • We have been tracking consumers desire for a TEXT PREFERENCE SERVICE
  • In 2010 this was VERY HIGH at 70%
  • ..and EVEN HIGHER in 2011 at 72%. This is an EXTRAORDINARILY HIGH level for a service that does not exist and has never been promoted.
  • Marketers SIGNIFICANTLY UNDERESTIMATED the demand for this service.
  • Since the Marketing GAP report started in 2005, coupons have proven to be an ENDURING CONSUMER FAVOURITE, often UNDERESTIMATED by MARKETERS
  • In 2010 a massive 86% of CONSUMERS said they redeemed coupons or vouchers
  • And in 2011 this had INCREASED to 89%
  • The trend is increasing year on year BUT Marketers are WELL BEHIND their expectation and consider that 33% would NEVER redeem vouchers.
  • the fast.MAP/MARKETING GAP report has been tracking the level at which consumers will redeem coupons since 2005.
  • These are the 2007 results showing that nearly 20% OF CONSUMERS would REDEEM A COUPON worth just 20p
  • In 2008 this increased to nearly 40%
  • The trend has been GENARLLY POSITIVE since tracking began
  • Marketers CONSITANTLY underestimate the amount of CONSUMERS that will redeem at each level Number of shoppers who redeem coupons continues to grow - to a massive 88% Almost four out of ten will redeem a 20p coupon More than half will redeem a coupon worth £1 or more
  • In 2010 a very high 55% of consumers said they NEVER mis-redem coupons and another 38% only OCASSIONALLY MISREDEEM
  • This improved EVEN MORE in 2011 72% NEVER misredem with only 3% REGULARLY mis redeming
  • And another HUGE GAP opens up for Marketers Marketers fear that 30% s huge fearing that 30% regularly mis-redeem when it is 4%. Out by a factor of 8.
  • We now looked at what the REASON for the MIS-REDEMPTION WAS
  • Not only is Coupon misredemption LOW The GOOD NEWS IS that ALSO it can fall STILL FURTHER if RETAILERS take a more SUPERVISORY ROLE Misredemption attempts are most likely where SELECTED RETAILLER has no stocked the featured brand
  • Now we TURN our ATTENTION TO PROMOTIONS
  • Almost SIX OUT OF TEN consumers used a REWARD OR LOYALTY SCHEME this year. Consumers are LEAST LIKELY to have taken part in EVENTS at which FREE or DISCOUNTED goods are available.
  • Marketers were generally more positive about the USE of PROMOTIONS And Marketers were correct in identifying LOYALTY SCHEMES were the most-used. Marketers were LEAST ACCURATE at the use of Coupon websites with an overestimate of 200%.
  • The aim of any promotion is to CHANGE BEHAVIOUR. So we asked CONSUMERS about it.
  • The OVERWHELMING WINNER was CLUB CARDS such as Tesco, Nectar, Boots and Costa Coffee which TEMPTED 35% of shoppers to buy more products PLANNED. Other promotions were ONLY ONE QUARTER AS SUCESSFUL in motivating extra product purchase.  
  • Again there was some significant OVERESTIMATION by Marketers
  • Another KEY AREA of MARKETING that we explored was the INFLUENCE OF SAMPLING
  • This was the question that we asked
  • A FIFTH of CONSUMERS went on to buy a product for the first time after TRYING A POSTAL SAMPLE   17% bought goods after requesting a SAMPLE VIA WEBSITE and 14% after TRYING SOMETHING IN STORE.   However, ( NOT SHOWN ON THIS CHART) MOST shoppers (61%) had either NOT SAMPLED GOODS in the last 12 months or FAILED to BUY the goods they’d sampled .
  • Marketers were VERY POOR at estimating the EFFECTIVENESS OF SAMPLING. MASSIVELY OVERESTIMATING in NEARLY ALL AREAS PARTICULARLY with At a FRIENDS/RELATIVE or COLLEAGUE
  • 7 years of tracking Marketing GAP has repeatedly illustrated that some marketers cling to outmoded industry theory rather than listening to and learning from the consumers they claim to be scientifically targeting.   Meanwhile, at the other end of the spectrum, marketing’s frontiersmen are enthusiastically embracing SMS, mobile marketing, Twitter and social networks, seemingly unaware that their enthusiasm is not shared by nine out of ten members of the public who say they do not want to be contacted by these routes.   It’s easy to forget that text messaging was around as a viable marketing contact route before email, yet email’s popularity has risen steadily to rival – and in some instances – overtake the supremacy of direct mail. Meanwhile, SMS messaging and mobile marketing have failed to spark the public’s enthusiasm as marketing media.   If marketers are to ensure they make the most cost-effective use of the many promotional routes now on offer, they need to spot consumer preferences as they emerge to exploit them ahead of the herd, while simultaneously avoiding wasting budget on unpopular fads.
  • 7 years of tracking Marketing GAP has repeatedly illustrated that some marketers cling to outmoded industry theory rather than listening to and learning from the consumers they claim to be scientifically targeting.   Meanwhile, at the other end of the spectrum, marketing’s frontiersmen are enthusiastically embracing SMS, mobile marketing, Twitter and social networks, seemingly unaware that their enthusiasm is not shared by nine out of ten members of the public who say they do not want to be contacted by these routes.   It’s easy to forget that text messaging was around as a viable marketing contact route before email, yet email’s popularity has risen steadily to rival – and in some instances – overtake the supremacy of direct mail. Meanwhile, SMS messaging and mobile marketing have failed to spark the public’s enthusiasm as marketing media.   If marketers are to ensure they make the most cost-effective use of the many promotional routes now on offer, they need to spot consumer preferences as they emerge to exploit them ahead of the herd, while simultaneously avoiding wasting budget on unpopular fads.

The Marketing Gap The Marketing Gap Presentation Transcript

  • 7 th Annual Marketing – GAP Tracker David Cole, Managing Director [email_address] www.fastmap.com CCB Fastmap Ltd 3 rd Floor, Colonial Building 59-61 Hatton Garden London EC1N 8LS 0207 242 0702 www.ccbfastmap.com
  • Marketing GAP
    • What shoppers do, and what marketers think that they do. Misunderstanding the ever changing  attitudes to DM and Promotional Techniques leaves a huge gap in the armoury. The Marketing Gap survey updates you annually on the key issues you need to bear in mind the very next time you decide to go one way, rather than another
  • Marketing GAP
    • What shoppers do, and what marketers think that they do. Misunderstanding the ever changing  attitudes to DM and Promotional Techniques leaves a huge gap in the armoury. The Marketing Gap survey updates you annually on the key issues you need to bear in mind the very next time you decide to go one way, rather than another
    • Why do we Marketers get it wrong?
    • Skilled in marketing technique
    • Understand the brand
    • Different demographics/outlook
    • Ever changing environment
  • The Marketing GAP
    • Industry's most high profile t racking study .
    • Annually by fast .MAP since 2005
    • Monitors consumers direct marketing and promotional activity and records their changing attitudes
    • Unique - tracking Consumer opinion and Marketers
    • 2011 Partnership with the IPM
    • Sponsored by MMC / Royal Mail
  • fast .MAP/Marketing GAP; Widely quoted in media and major trade bodies
  •  
  • Agenda
    • 1 Preferred Contact Route
    • 2. Direct Mail
    • 3. Telephone / Mobile
    • 4. Coupons
    • 5. Promotions
      • 6. Summary & Conclusion
  • Methodology
    • Online questionnaire to:
        • over 1,000 consumers on the fast .MAP panel
        • (which echoes the UK's demographic profile)
        • and a panel 350 marketers including IPM members and Royal Mail
    • Whilst consumers simply respond to the questions, marketers are asked to judge what the consumers' responses will be .
    • The GAP is the gulf between what consumers are actually doing and thinking and what marketers believe consumers are doing and thinking.
    • Every year surprising insights have been revealed. This year is no different.
  • Who are fast. MAP?
    • fast. MAP are specialists in using online research for the Direct and Promotional Marketing sectors.
    • We help marketers dramatically improve the performance of their marketing through effective insight.
    • We partner with the IPM across different industry studies
  • The Marketing GAP Results
  •   Through which routes do consumers like to be communicated? We have been asking how Consumers prefer to be contacted since 2005.
  • Preferred Contact Routes Percentage
  • Preferred Contact Routes Percentage
    • Over-estimation for marketing communication by marketers
    • Significant overestimation of Marketers of enthusiasm particularly in none-DM/Email by factor of 4
    Preferred Contact Routes Percentage
    • Mail and email equal
    • BUT preference also depends upon subject/sector
    • Low demand for none email or mail contact
    • Less than 2% in most cases
      • landline
      • mobile
      • SMS
      • Twitter
      • or social media
    •  
    Preferred Contact Routes
  • Which subject would you be happy to receive communication about and how?
  • Contact method; Which subject would you be happy to receive communication about and how?
  • What do Consumers think of Direct Mail ?
  • Nine out of ten people open direct mail
  •  
  • What motivates Consumers to open direct mail?
  • What motivates Consumers to open direct mail?
  • The GAP- aesthetics overvalued What motivates Consumers to open direct mail?
    • Highest marketing-mail opening ever (2005)
    • Increases in opening BOTH warm and cold mail
    • Consistently high numbers for known company/brand
    • Personalisation has increased in importance as a motivator and moved into second place
    • Interested in product or service is almost as important
    • Over 1/3 rd because voucher
    Why do nine out of ten people open direct mail
  • What type of mail are consumers most likely to open?
  • What type of mail are consumers most likely to open?
  • What type of mail are consumers most likely to open?
  • What type of mail are consumers most likely to open?
  • Why some mail is thrown away
  • Why some mail is thrown away
  • Why some mail is thrown away
  • Why some mail is thrown away
  • General attitudes towards Advertising Mail
  • Attitudes to advertising mail
  • Attitudes to advertising mail
  • What do consumers think about the phone and SMS marketing?
  • Landline crawls back into favour Are there any things that you don’t mind receiving marketing calls about?
  • The free opt out service enabling you to record your preference on the official register and not receive unsolicited sales or marketing calls.
  • Why do people enrol on the TPS (Telephone Preference Service ) The free opt out service enabling you to record your preference on the official register and not receive unsolicited sales or marketing calls.
  • Why do people enrol on the TPS (Telephone Preference Service )
  • Demand for Text Preference Service
  • Demand for Text Preference Service
  • Demand for Text Preference Service
  • Demand for Text Preference Service
  • The Power of Coupons A Consumer Favourite
  • Do you redeem coupons or vouchers ? (i.e. money-off vouchers that you might get through the post or via email or through newspapers etc?)
  • Do you redeem coupons or vouchers ? (i.e. money-off vouchers that you might get through the post or via email or through newspapers etc?)
  • Do you redeem coupons or vouchers ? (i.e. money-off vouchers that you might get through the post or via email or through newspapers etc?)
  • What value would consumers redeem coupons at? This has been tracked for 5 years……….
  • What value would consumers redeem coupons? 2007
  • What value would consumers redeem coupons? 2008
  • What value would consumers redeem coupons? 2009
  • What value would consumers redeem coupons? 2010
  • What value would consumers redeem coupons? 2011
  • What value would consumers redeem coupons?
  • Mis-redemption of coupons What about coupon mis-redemption? Do you ever attempt to redeem coupons when you have not bought the products specified on them?
  • Mis-redemption of coupons
  • Mis-redemption of coupons
  • Mis-redemption of coupons
  • Why do consumers misuse coupons What was the reason for the attempted mis-use of the coupons?
  • Why do consumers misuse coupons
  • What types of Promotions do consumers use?
  • What types of Promotions do consumers use?
  • What types of Promotions do consumers use?
  • Offers that change shopping habits
  • Offers that change shopping habits In the past 12 months have you bought more products than you planned because of extra longer term rewards?
  • Offers that change shopping habits
  • Offers that change shopping habits
  • Sampling the goods
  • Sampling the goods In the past 12 months have you bought a product for the first time because you had trialled it first?
  • Sampling the goods
  • Sampling the goods
  • Thoughts ?
  • Conclusion for 7 th Year of Tracking
    • Specifically……
    • Opening rates of Direct Mail at all time high
    • Email is an increasingly popular medium
    • A tiny minority want to be contacted by phone/mobile, SMS or Social Media although it has started to grow
    • Almost everyone redeems coupons and each year people are less likely to mis-redeem
    • Big differences can be found dependent upon subject matter
    •  
  • Conclusion for 7 th Year of Tracking
    • Generally……
    • We marketers consistently get things wrong
    • The changing world is more and more difficult to keep up with
    • Build more insight into your marketing to keep in touch 
  • Thank you