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Data & Trust: The Two Currencies of Future Business with Brands
 

Data & Trust: The Two Currencies of Future Business with Brands

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Once upon a time, brands were friends. People consumed brands and everyone was happy. ...

Once upon a time, brands were friends. People consumed brands and everyone was happy.

Relationship of brands and consumers is like marriage of the 21st century. It has become one of the single most important relationships we have today. It is through brands that we mirror our personality and let the world know who we are, or rather who we’d like to become through perception of others.

Moments of adoration and mutual satisfaction alter with spending sprees and general unfaithfulness. But why are we rather unfaithful to brands even if we’re generally comfortable with them and how to make consumers loyal again? What will marketing look like in the future? And what will it look like by 2020?

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    Data & Trust: The Two Currencies of Future Business with Brands Data & Trust: The Two Currencies of Future Business with Brands Presentation Transcript

    • MARTINA OLBERTOVA CONSULTANCY Data & Trust: The Two Currencies of Future Business with Brands August 2013
    • Once upon a time, brands were friends. People consumed brands and everyone was happy. Relationship of brands and consumers is like marriage of the 21st century. It has become one of the single most important relationships we have today. It is through brands that we mirror our personality and let the world know who we are, or rather who we’d like to become through perception of others. Moments of adoration and mutual satisfaction alter with spending sprees and general unfaithfulness. But why are we rather unfaithful to brands even if we’re generally comfortable with them and how to make consumers loyal again? What will marketing look like in the future? And what will it look like by 2020? MOC
    • We’re in a profound crisis of customer loyalty. We see customers disloyal to brands across markets on a global scale. Crisis of loyalty has been an ongoing phenomenon for some time now, especially in the retail sector, where focus on the lowest price had set off an opened war on price resulting in erosion of the market. MOC Now retail sector gets back the fruits of it planted a long time ago: • mismatch of price for value, • fragmented brand perception, and • nonexistent customer loyalty in the hunt for the next big bargain.
    • Recognition for desired behavior is no longer working. MOC Loyalty programmes most commonly built upon stimulating consumers by discounts and collecting points are also rather counterproductive. These marketing practices are build around the presumption that consumers love brands just for the brands themselves and are virtually happy to do things for these brands to be recognized and rewarded for their desired behavior. This however is no longer true… The situation has changed and it’s up to brands to recognize this shift preferably sooner than later.
    • MOC Consumers do not seek instant rewards, like dogs… …they seek long-term respect, like cats do. Consumers today are smothered by abundance of choices and cluttered market offerings, they are more like cats, than dogs. They do not follow orders and await bones; they expect services and seek praise. They are up for pampering and call for brands realizing that their loyalty is not a natural state, but should be worked for and earned by brands themselves. “Consumers now also raise the issue of respect more frequently, which has been lacking from the brand-consumer equation so far.”
    • #1 imperative: be useful. it is not about you, it’s about them. MOC So what should we do now in order to make customers loyal again? We should get back to basics and the corner stone of any brand- consumer relationship: trust. Howard Schultz, CEO of Starbucks, once said: “We’re in the people business serving coffee, not the coffee business serving people.” And he was right. The real business, which brands do, is not selling their services and products, but fulfilling needs of people, whom they serve. “Customer loyalty is not about you, your products and what you say, it is about them: needs of your customers, their genuine happiness and sense of usefulness in their everyday lives.”
    • Trust is the key to consumers’ hearts. MOC Everything rises and falls with the trust. Trust is the primary emotional bond between brands and its customers impacting their mutual transaction. Trust is also the key for customer loyalty, because once customer trusts the brand, he or she will let the brand sell or recommend them also other services. “Trust enhances customer loyalty to brands because it is transferable onto other business segments as well.”
    • Marketing in 2020. What will it be all about? MOC The shift in perspective on customer relationship and the role of trust is what’s going to dominate the brand-consumer relationship in the next 10 years. According to Gerd Leonhard, CEO of TheFuturesAgency, named "one of the leading media-futurists in the world” by The Wall Street Journal, marketing in 2020 will look quite differently from the one we have today….
    • Two main currencies: Data & Trust. MOC Main payment methods of future business will be data and trust. Customers will barter their personal data with brands for better services and products, but also for more attention, usefulness and individualized relevance of content. Apart from the shift in transaction costs with brands, by 2020, there will occur these 5 following changes in the marketing paradigm as a whole:
    • #1: End of interruptive marketing. MOC Interruptive marketing will be matter of the past, as advertising will practically become content. This will result in strengthening the role of content marketing, content localization and real-time aspect of communication. Marketing will become more personalized, customized and adapted to needs of an individual consumer.
    • #2: Active audiences hold brands accountable. MOC Consumer basis will get increasingly activated and demand from brands to fulfill their trust. Users will be more actively selecting not only whom they want to consume contents from, but also by which channels. Brands will have to earn customers to consume their contents, even more so with a rapidly increasing saturation of information. When a brand fails, or stops delivering relevant offerings, consumers will not hesitate to hold the brand accountable and ask for rectification, especially by expressing their discontent through creating own viral content and sharing it via online channels.
    • #3: Marketing departments will be relics. MOC Separate marketing departments in companies and corporations will become outlived. Marketing will encompass all employees, stakeholders, and customers, as well as volumes of brand conversations that these people will create both online and offline.
    • #4: Marketing becomes humanized. MOC Essence of marketing communication will become increasingly humanized. By 2020, the whole concept of mass targeting will be archaic and unuseful. It will be radically reevaluated. We will stop talking of targeting and start talking of a dialogue and a mutual interaction. We will stop talking of target groups and rigid customer segmentations, and instead start talking of people with individualized and fragmented needs, who are ought to be not targeted, but captivated.
    • #5: Need for (big) data interpretation. MOC Increased need for an individualized content, however, will go hand in hand with an even more increased production of information. In the flood of customer big data, there will be a progressive demand for creating predictive behavioral patterns based on prior customer experience. This is the place, where strategic research consulting can enter, and through an apt data interpretation offer clients advice on how to retain satisfied customers on a long-term basis.
    • Published by magazine as Customers & Brands to Pay with Data and Trust in the Future Relationship of brands and consumers is like marriage of the 21st century. It has become one of the single most important relationships we have today. It is through brands that we mirror our personality and let the world know who we are, or rather who we’d like to become through perception of others. Moments of adoration and mutual satisfaction alter with spending sprees and general unfaithfulness. But why are we rather unfaithful to brands even if we’re generally comfortable with them and how to make consumers loyal again? What will marketing look like in the future? And what will it look like by 2020? By 2020, approach of agencies and marketing towards customers will change significantly. Lead role in the shift will play trust towards brands and customer data predicts Martina Olbertova. We see customers disloyal to brands across markets on a global scale. Crisis of loyalty has been an ongoing phenomenon for some time now, especially in the retail sector, where focus on the lowest price had set off an opened war on price resulting in erosion of the market. Now retail sector gets back the fruits of it planted a long time ago: mismatch of price for value, fragmented brand perception and nonexistent customer loyalty in the hunt for the next big bargain. Loyalty programmes most commonly built upon stimulating consumers by discounts and collecting points are also rather counterproductive. These marketing practices are build around the presumption that consumers love brands just for the brands themselves and are virtually happy to do things for these brands to be recognized and rewarded for their desired behavior. This however is no longer true. The situation has changed and it’s up to brands to recognize this shift preferably sooner than later. Consumers today are smothered by abundance of choices and cluttered market offerings, they are more like cats, than dogs. They do not follow orders and await bones; they expect services and seek praise. They are up for pampering and call for brands realizing that their loyalty is not a natural state, but should be worked for and earned by brands themselves. They now also raise the issue of respect more frequently, which has been lacking from the brand-consumer equation so far. Text by Martina Olbertova, Martina Olbertova Consultancy. Published at Marketing&Media magazine, July 15, 2013.
    • About Martina Olbertova Consultancy. MOC Martina Olbertova is an international strategic research consultant with 7 years of professional experience in marketing, communication and research. Martina Olbertova Consultancy is a proud member of ESOMAR (European Society for Opinion and Marketing Research) and Blur Marketing Experts Global Network. Martina is fluent in various methods ranging from classical QN & QL research through ethnography, semiotics, cultural analysis, to online methods such as digital research, online brand communities & panels to fairly new methods like semantic web analysis or social networks analysis. Martina is a firm believer in strategic research, which she strives to pioneer in the CEE region and beyond. She is also a keen advocate of using research not (only) for content validation, but as a content itself. Martina holds PhDr. degree in Media Studies from Charles University in Prague. She also studied at Georgetown University in Washington, DC or Cardiff School of Creative & Cultural Industries in the UK.
    • MOC My main topics of interest. • Strategic use of research • Research as a content • Power of data interpretation • Customer loyalty techniques • Brand activation research & strategy • Digital research and new research techniques If we share same topics of interest and you’d like to discuss them, make sure to contact me here.
    • MOC MOC expertise. Research & Strategy Strategic Research Consulting Multinational & CEE research studies Polls, Surveys, Concept Testing, Customer Feedback, Satisfaction measuring Brand awareness, Brand tracking, NPS Focus groups, In-depth interviews Ethnography & Netnography Brand Activation Online Consumer Communities Brand Ambassadors & Opinion Leaders Brand Activation Research & Strategy Customer Loyalty Strategy Customer Experience Ideation & Inspiration Insights Generation Cultural Insight Applied Semiotics Brand Analysis Collaborative Techniques Research as a Content Exclusive Research Studies Research for Content Marketing Content Strategy Infographics and Data Visualisation Semantic Web Analysis Social Networks Analysis
    • MOC Selected references. "Martina is a creative, intelligent and driven marketer and researcher. She was very influential in promotion of my business, and I look forward to working with her again." Tim Hennessy, CEO @ Hullabaloo, former Regional CEO at Lowe CEE & Russia "There's "marketing research" and then there's "marketing-research-based intelligence". Well, Martina has been a champion of the latter ever since I met her. I was lucky enough to be able to work with her. She's been one of the biggest assets for my company ever." Tomáš Hrivnák, Owner @ Hrivnak, 20 years of experience in branding and strategic planning "As a researcher, Martina always looks at the data from a big picture and is thus able to interpret their real meaning and dig out insights concerning market trends and opportunities. If you're looking for a skilled researcher with a big picture thinking and a strategic approach, Martina is your person." Jaroslav Cír, CEO @ Perfect Crowd, former Global Consumer & Market Insight Director for Rexona at Unilever London  "I had the pleasure to hire Martina both for research and communication projects, and was always impressed by the performance. Great partner with complex view and international approach. Martina will be a huge asset for any company. I would recommend her for a management position straight away." Roman Meliška, former CMO @ European Eye Clinics Lexum, 15 years of experience in international marketing
    • MOC Selected experience with brands. and many more…
    • This is my phone number. +420 724 890 798 This is my email address. info@martinaolbertova.com And this is the website. www.martinaolbertova.com Make sure to email me to request a copy of my credentials. There you will find with more information and case studies about various ways to use & fully utilize marketing research. Also, feel free to look me up via social media. By the way, click on the social buttons, they’re fully functional! Contact details. MOC