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Trust - A strategic tool for the management of customer data
 

Trust - A strategic tool for the management of customer data

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Presentation to the Aston University Business School conference - May 2006

Presentation to the Aston University Business School conference - May 2006

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    Trust - A strategic tool for the management of customer data Trust - A strategic tool for the management of customer data Presentation Transcript

    • Trust! A strategic tool in the management of customer data Thom Poole May 2006
    • Welcome
      • What is privacy
      • Friendship = Trust
      • Trust in marketing
      • Trust in account management
      • The competitive advantage of trust
    • Data privacy what? when? where? who? how? why?
    •  
    •  
    •  
    • Data privacy
      • How invasive can we or should we get?
      • Will our customers accept our efforts?
      • Identity theft – a modern problem?
      • Invading our personal space
      • What can marketing do?
    • Data privacy – noise! Remember this? A linear model of communication (based on Schramm (1995) and Shannon & Weaver (1962) – from Fill (1999))
    • Data privacy – the spam debate
      • Does spam give responsible marketers a bad name? YES 70% NO 30%
      • Can we control spam without banning it completely? YES 60% NO 40%
      • Is opting in to receive email marketing a realistic proposition? YES 50% NO 50%
      Results of an online survey by the Marketing Society, 2003
    • Friendship = Trust Friendship = showing or expressing liking, goodwill, or trust Collins English Dictionary. Retrieved 10 July 2003, from xreferplus
    • Friendship = Trust
      • ‘ People buy from their friends’
      • Trust builds loyalty
      • Trust will drive profit
      Trust-focused value chain (adapted from Porter, 1998)
    • Trust lifecycle Poole (2005), adapted from Reynolds (2000)
    • Asymmetric information flow Spremann, 2001
    • Trust in marketing Abuse demonstrates untrustworthiness, but to demonstrate trustworthiness is more difficult Trust = firm reliance on the integrity, ability or character of a person or thing
    • Trust in marketing
      • There is no easy formula to gain trust
      • But it is, or should be the goal of every company – trustworthiness is profitable
      • “ Trust means having the customer comfortable with handing over personal information and engaging in ongoing commercial transactions at a company’s website” (Senia, 2000)
    • Trust in marketing, cont…
      • trust is under attack in our society. customers have so much choice these days, which makes it difficult for brands to rise above the incredible number of messages clamouring for the attention of the customer
      • “ you can have all the facts and figures, all the supporting evidence, all the endorsement that you want, but if - at the end of the day - you don't command trust, you won't get anywhere"
      Niall FitzGerald, Chairman of Unilever at the Advertising Association, May 2001
    • Trust in marketing, cont…
      • a proactive approach to dealing with issues of consumer privacy would involve four major issues:
        • maintaining an ongoing dialogue with consumers
        • educating consumers and promoting privacy efforts
        • creating an industry standard for addressing the privacy issue
        • continuing to lobby for and against government regulation
      • these four issues can all increase apparent ‘trustworthiness’
      (Nakra, 2001)
    • Trust in marketing Trusted brands
      • petrol retailer Shell
      • soft drink Coca-Cola
      • vitamins Centrum
      • pain relief Aspirin
      • cold remedy none (!)
      • toothpaste Colgate
      • hair care Pantene
      • cosmetic Avon
      • skin care Nivea
      • soap powder Ariel
      • Automotive Mercedes
      • kitchen appliances Miele
      • PC IBM
      • mobile phone Nokia
      • camera Canon
      • holiday company none (!)
      • bank/building society none (!)
      • credit card Visa
      • insurance company none (!)
      • airline BA
      • internet company none (!)
      Bold = Last year’s most trusted
    • Trust in account management “… they were always being watched for symptoms of unorthodoxy” ‘ 1984’, George Orwell
    • Trust in B2B account management
      • For B2B brands to connect with organisational customers, emotional brand values need to be communicated
      • Brands based on intangible, emotive characteristics such as trust, reassurance, reputation, image and responsiveness are seen as more durable and less likely to suffer from competitive erosion
      • Brand benefits include:
        • Ability to charge premium prices
        • Loyalty through powerful customer/brand relationships
        • Ability to sustain differentiation in crowded markets
      Joanne Lynch & Leslie de Chernatony, 2003
    • Ethical account management
      • “ People buy from their friends”
      • Open, trusting, honest
      • “ I don’t want a ‘relationship’ with your company!”
      • Listen
      • Encourage & lead by example
    • Procurement behaviour low high high Procurement skills Business skills Butterfly buyers Strategic purchasing professionals Order takers Rottweiler buyers buy on value buy on cost buy on price
    • The competitive advantage of trust “The marketing art of the opt-in” “Being trustworthy is profitable”
    • The marketing art of the opt-in
      • Research I carried out within O 2 indicates customers could be encouraged to opt-in and therefore interact
      • Keeping within the ‘RFM’ (recency, frequency, monetary value) boundaries is likely to increase trustworthiness
      • Creative ideas for encouraging opt-in and increasing interaction will always win
      • Trust is a two-way process, and we as marketers must feel that our customers are trustworthy too
    • Getting your nose in front …
    • … but so is everyone else!
    • Summary
    • Summary
      • Lead the way with ethical behaviour
      • Be trustworthy
      • Keep up-to-date with technology, but don’t be led by it
      • Stay legal
      • Manage your competitive advantage
      • Marketing can be creative – use that creativity!
      • Treat customers as they expect to be treated
    • Thom Poole Managing Consultant Jack Marketing Solutions [email_address] Trust - A strategic tool in the management of customer data Thank you