Trust and the marketing art of the opt-in


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Presentation given to the ePiphany CRM conference at Heathrow - September 2003

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Trust and the marketing art of the opt-in

  1. 1. trust & the marketing art of the opt-in Thom Poole Head of Portal – e-CRM
  2. 2. trust & the marketing art of the opt-in ethical e-marketing in a modern age Thom Poole – September 2003
  3. 3. agenda <ul><li>privacy </li></ul><ul><li>international differences </li></ul><ul><li>friendship = trust </li></ul><ul><li>trust in marketing </li></ul><ul><li>using customer information </li></ul><ul><li>the marketing art of the opt-in </li></ul>
  4. 4. data privacy <ul><li>what? </li></ul><ul><li>when? </li></ul><ul><li>where? </li></ul><ul><li>who? </li></ul><ul><li>how? </li></ul><ul><li>why? </li></ul>1 © Thom Poole 2003
  5. 7. data privacy <ul><li>how invasive can we or should we get? </li></ul><ul><li>will our customers accept our efforts? </li></ul><ul><li>identity theft – a modern problem? </li></ul><ul><li>invading our personal space </li></ul><ul><li>what can marketing do? </li></ul>
  6. 8. data privacy – personal space! Remember this? A linear model of communication (based on Schramm (1995) and Shannon & Weaver (1962) – from Fill (1999))
  7. 9. data privacy – the spam debate <ul><li>does spam give responsible marketers a bad name? YES 70% NO 30% </li></ul><ul><li>can we control spam without banning it completely? YES 60% NO 40% </li></ul><ul><li>is opting in to receive email marketing a realistic proposition? YES 50% NO 50% </li></ul>Results of an online survey by the Marketing Society, 2003
  8. 10. international differences <ul><li>the internet has opened up a new world of communications – global in its reach </li></ul>2 © Thom Poole 2003
  9. 11. international differences <ul><li>differences existing in the regulations relating to marketing practices internationally </li></ul><ul><li>the internet has opened up the world to even the smallest player on the global stage </li></ul><ul><li>ease of use, reach and cheap set-up and operations help in this homogenous market </li></ul><ul><li>‘ Safe Harbour’ tries to balance the differences </li></ul>
  10. 12. international differences – ‘Safe Harbour’ <ul><li>‘ Safe Harbour’ comprises of seven principles: </li></ul><ul><li>notice </li></ul><ul><li>choice </li></ul><ul><li>onward transfer </li></ul><ul><li>access </li></ul><ul><li>security </li></ul><ul><li>data Integrity </li></ul><ul><li>enforcement </li></ul>(from Tran & Atkinson, 2002)
  11. 13. friendship = trust <ul><li>friendship = showing or expressing liking, goodwill, or trust </li></ul><ul><li>Collins English Dictionary. Retrieved 10 July 2003, from xreferplus </li></ul>3 © Thom Poole 2003
  12. 14. friendship = trust <ul><li>‘ people buy from their friends’ </li></ul><ul><li>trust builds loyalty </li></ul><ul><li>trust will drive profit </li></ul>Trust-focused value chain (adapted from Porter, 1998)
  13. 15. friendship = trust <ul><li>‘ people buy from their friends’ </li></ul><ul><li>trust builds loyalty </li></ul><ul><li>trust will drive profit </li></ul>Trust-focused value chain (adapted from Porter, 1998) Profit
  14. 16. trust in marketing <ul><li>abuse demonstrates untrustworthiness, but to demonstrate trustworthiness is more difficult </li></ul><ul><li>trust = firm reliance on the integrity, ability or character of a person or thing </li></ul>4 © Thom Poole 2003
  15. 17. trust in marketing <ul><li>there is no easy formula to gain trust </li></ul><ul><li>but it is, or should be the goal of every company – trustworthiness is profitable </li></ul><ul><li>“ trust means having the customer comfortable with handing over personal information and engaging in ongoing commercial transactions at a company’s website” (Senia, 2000). </li></ul><ul><li>trust is under attack in our society. Consumers 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 consumer. </li></ul><ul><li>“ 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&quot; </li></ul>Niall FitzGerald, Chairman of Unilever in an address to the Advertising Association, May 2001
  16. 18. trust in marketing <ul><li>a proactive approach to dealing with issues of consumer privacy would involve four major issues: </li></ul><ul><ul><li>maintaining an ongoing dialogue with consumers </li></ul></ul><ul><ul><li>educating consumers and promoting privacy efforts </li></ul></ul><ul><ul><li>creating an industry standard for addressing the privacy issue </li></ul></ul><ul><ul><li>continuing to lobby for and against government regulation </li></ul></ul><ul><li>these four issues can all increase apparent ‘trustworthiness’ </li></ul>(Nakra, 2001)
  17. 19. trust in marketing – trusted brands <ul><li>automotive Ford </li></ul><ul><li>kitchen appliances Hotpoint </li></ul><ul><li>PC Dell </li></ul><ul><li>mobile phone Nokia </li></ul><ul><li>camera Canon </li></ul><ul><li>holiday company Thomson </li></ul><ul><li>bank/building society Lloyds TSB </li></ul><ul><li>credit card Visa </li></ul><ul><li>insurance company Prudential </li></ul><ul><li>airline BA </li></ul><ul><li>internet company AOL </li></ul><ul><li>petrol retailer Esso </li></ul><ul><li>soft drink Coca-Cola </li></ul><ul><li>vitamins Seven Seas </li></ul><ul><li>pain relief Nurofen </li></ul><ul><li>cold remedy Lemsip </li></ul><ul><li>toothpaste Colgate </li></ul><ul><li>hair care Pantene </li></ul><ul><li>cosmetic Boots </li></ul><ul><li>skin care Oil of Olay </li></ul><ul><li>soap powder Persil </li></ul>
  18. 20. using customer information <ul><li>“ they were always being watched for symptoms of unorthodoxy” </li></ul><ul><li>‘ 1984’, George Orwell </li></ul>5 © Thom Poole 2003
  19. 21. using customer information <ul><li>we talk about customer data, the customer talks about information </li></ul><ul><li>what about ‘RFM’? </li></ul><ul><ul><li>recency </li></ul></ul><ul><ul><li>frequency </li></ul></ul><ul><ul><li>monetary value </li></ul></ul><ul><li>what if the customer does not give the information? </li></ul><ul><li>big brother is watching, but should not be seen as intrusive </li></ul>
  20. 22. the marketing art of the opt-in <ul><li>can the customer be ‘encouraged’ to opt-in? </li></ul>6 © Thom Poole 2003
  21. 23. the marketing art of the opt-in <ul><li>the research carried out within O 2 indicates customers could be encouraged to opt-in </li></ul><ul><li>keeping within the ‘RFM’ (recency, frequency, monetary value) boundaries is likely to increase trustworthiness </li></ul><ul><li>creative ideas for encouraging opt-in and increasing interaction will always win </li></ul><ul><li>trust is a two-way process, and we as marketers must feel that our customers are trustworthy too </li></ul>
  22. 24. Thank You Thom Poole Head of Portal – e-CRM [email_address] trust & the marketing art of the opt-in © Thom Poole 2003 All rights reserved