Marketing Ethics: The fine line between marketing research and consumer privacy

Marketers are not bad people but are often about as welcome as the door-to-door salesperson of old.  As marketers we must strive to earn the trust of our publics.  This challenges us to be impeccable in our interactions, commit to customer service, show integrity by eliminating practices that could be viewed as deceptive, be socially responsible and protect our customers data.

But what about respecting our customers’ privacy?

Image courtesy of eMarketer.com

In terms of permission-based marketing, there are many safeguards in use to respect consumer privacy.  For example, we ask for permission from our mobile customers in order to communicate via SMS or push notifications.  Marketers require users to express permissions for companies to “submit communication to their digital identity by simply clicking a like, follow or plus button” on social media channels.  Additionally, marketers require consumers to opt-in by providing “explicit permission from consumers before delivering marketing collateral to them” via e-mail or newsletters; however, respecting customer privacy extends to marketing research as well.

Image courtesy of Truste

The way in which consumers have adopted technology has outpaced the understanding of its implications to privacy.  For example, installing a mobile app may require users to give permissions that incongruous with the intent of the app.  Then there is Geolocation which tracks where a smartphone owner is.  Even those innocent photos snapped while on vacation can tell others that you aren’t home and your travel habits.  It may seem innocent enough and result in some great travel bargains but isn’t it just a bit disconcerting to know that someone knows all the happenings in your life?

While some consumers are using caution in granting permissions to mobile apps and choosing to disable Geolocation, many may not “completely comprehend the repercussions of having their information captured somewhere“.

Image courtesy of eMarketer.com

It is not enough for marketers to inform consumers regarding what data they collect and what they do with it, they need to work together with government and consumer education non-profit agencies to help the consumer understand how to better protect themselves.  By showing consumers that marketers care about their data and have a sincere desire to keep them safe, a greater level of trust can be established.  When consumers feel that we have their best interest at heart, perhaps they will be more comfortable providing us with their data.

Learn more about the timeline and evolution of marketing from Vision Critical.

A Great Example of Storytelling

I am a sports fan.  My favorite sport is ice hockey; however, I have many fond memories of Major League Baseball from my youth.  The excitement I had knowing I was able to travel to watch both the Pittsburgh Pirates and Cleveland Indians play.  My youth was spent in Northeastern Ohio and I remember the excitement when Jacob’s field opened in Cleveland.  An an adult, that sense of wonder return as I drove by the new PNC Park in Pittsburgh.  But my love of baseball has waned over the years.

I live in Western North Carolina now and perhaps location is a factor; however, I do not see many individuals sporting baseball jerseys or t-shirts or caps.  I see a lot more NFL and to a lesser extent, NHL apparel.  What happened to baseball?

I had not realized, until I read Gordon Plutsky’s [from King Fish Media] blog today, that it has been years since I attended a game in person and about as long that I actually watched one on television.  As marketers, we are aware that digital storytelling is key to engagement, brand awareness and audience engagement.

For those in Sports Marketing or interested in Digital Storytelling, please take time to read Gordon’s Blog at:  http://www.mediapost.com/publications/article/224635/why-baseball-needs-storytelling-for-long-term-succ.html#reply.

How long has it been since you have watched baseball?  Do you know the story behind the stats?  Did you pick your team based on your location, family patterns or something else?

Emerging Media and the Environment

Image source: Google

Can emerging media impact consumer behavioral change toward the environment?  I am not referring to reducing the number of trees used to make paper for books and magazines.  I am speaking about real change.  Emerging media has resulted in consumer’s love affair with digital media and technology.  Marketers can leverage this, if done in a sincere manner, to not only sell their products but also to effect change for the planet.

How is this done?  Companies must lead by example through “conscientious capitalism” which means that companies channel their inner purpose and R&D expertise to solve specific social challenges“.  Take Camelbak for example.  They want to reduce the number of plastic water bottles that are consumed and often discarded rather than recycled.  Thus they created their hydration products to be reusable, free of toxins [BPA] and, at end of product lifespan, be recycled.   While they produce a great water bottle, they also lead by example.  Camelbak’s headquarters is built in an area serviceable by foot, bicycle and public transportation and was “built to LEED-certification standards“.  Camelbak recycles paper, plastics and aluminum.  In addition, they create products that can go into the dishwasher to save water over hand washing.

Camelbak’s current Facebook campaign, Ditch Disposable, is aimed at educating the consumer about, “Responsible consumption” by purchasing reusable water bottles to and ditching disposable bottles.  Responsible consumption occurs when consumers are asked to “use only they we need“.  Consumers need hydration on the go but they do not need disposable bottles and by pledging to choose to stop consuming disposable bottles, consumers can have a positive impact to the environment.

Image source: Treehugger.com

The Ditch Disposable campaign is promoted on Facebook to Camelbak’s over 375,000 followers, on Twitter and on Camelbak’s website. The average American will save approximately $25 and 18 bottles from the landfill by taking the 30-day Pledge. Camelbak encourages individuals to take a 30-day pledge to eliminate plastic bottles and to share with a friend.  They also have a counter that helps people watch their impact by pledging.  The campaign appears to be succeeding in engaging the consumer to change their behavior as campaign-to-date over 1 million bottles have been saved from landfills.

As an added incentive, as consumers we always want an incentive don’t we? For those who signup to Ditch Disposable, there is a chance to win Camelbak prizes. Participants are encouraged to share their activities via Instagram, Facebook and Twitter as well as complete an entry form on Facebook.  This is not only smart marketing to build an interested customer list but also raise awareness of the costs both financially and environmentally that are associated with plastic bottles.  Furthermore, the integration of social media channels will help spread the word and possibly bring new customers to Camelbak.

What could feel better than drinking fresh safe water while reducing your environmental impact?

Have Smartphone Will Travel

Travelers are a social bunch.  It is part of a traveler’s nature to seek out experiences and then share them.  It is almost as if social media was created with the traveler in mind.  Despite economic challenges across the globe, international tourism has risen to record numbers.  In fact, the World Tourism Organization reports that, “International tourist arrivals grew by 5% in 2013, reaching a record 1,087 million arrivals“.  Furthermore, international travel is expected to increase between 4 and 4.5% in 2014.

As marketers, we must strive to understand the traveler and their needs.  We must also choose the proper channels in which to communicate our message.  Thanks to popular social travel sites, TripAdvisor and AFAR, travelers have built a community where locals and visitors alike interact with recommendations and reviews that far exceed ratings in guide books.

Image courtesy of Dreamstime.com

The top social media recommendations for travel marketers for 2014 include the use of video and images rather than copious amounts of text.  That makes sense, if travelers wanted to read they’d stay home with their Kindle e-reader.  Travel is dynamic and experience driven.  As such, images are key to driving interest and engagement.

Travel marketers that invest in social listening activities will benefit in 2014.  While it is important to respond to compliments and even more important to complaints, social listening goes beyond your Facebook wall or Twitter Feed.  Social listening should encompass blogs, Tweets, posts and pins in order to understand industry trends, concerns as well as traveler interests.  While there are many free tools, GoogleAlerts is great for budget-constrained marketers.  Create alerts based on topics and Google will e-mail you when it finds matching content.

It is an exciting time to be part of the travel industry.  As more and more travelers turn to social media for trip planning, all travel related businesses have an equal chance at converting a potential visitor into customer and then into an advocate.

View of Belfry from Sint Niklaas B&B. Image courtesy of Trip Advisor.

Prior to a European vacation, we searched for a B&B in Brügge, Belgium.  Initial research led us to several interesting options.  However, we experienced a  bit of angst, “What if the hotel doesn’t look like it did on the travel booking site or worse, has bedbugs?”

More research was deemed necessary thus we consulted AFAR.com, posted a few questions and shortly thereafter received a number of recommendations.  It was then that we visited the Sint Niklaas B&B website and contacted the innkeeper directly with questions.  The trip was superb, the service impeccable, and the location perfect!

What is more impressive is that out of 207 B&B [and Inns] in Brügge, Sint Niklaas ranks nineteenth.  Not by any fancy organization or guidebook but by the votes cast on TripAdvisor by everyday travelers.  Social matters and it is time for all traveler marketers and travel related businesses to get social.

Encourage your patrons to write a review.  Instead of a comment card, hand them the link to AFAR or Trip Advisor or any social media outlet where you have a presence and encourage them to share their experiences.  Word-of-mouth is a powerful marketing tool that you cannot control but you can influence by providing superior customer experience to the global adventurer.

The Brug Beertje (the Bruge Bear) bar in Brügge, Belgium

It is possible that a traveler can find the perfect B&B, the best local watering hole for a draft beer or a step back in time by visiting a small off-the-beaten-path Folklore museum without social media? Possibly, but do you really want your potential customers to be influenced by a one-dimensional printed guidebook or would you rather them read reviews by your guests?

From a narrow cozy two-story restaurant that serves the best Flammenkuchen in Köln to the Brug Beertje, the best beer bar in Brügge, every business can leverage social media to promote their business and become part of a global community.

Are you using social media yet?  Your customers and potential customers are.  Consider that, “approximately one-fifth of leisure travelers worldwide turn to social media platforms for inspiration within different categories of their travel planning including hotels (23%), activities (22%), attractions (21%) and restaurants (17%).”

What are you waiting for?

Streaming Media Players: Friend or Foe?

As the popularity of streaming content grows, so does the choices of streaming media players.  For as little as $35 USD [Google Chromecast] or as much as $99 USD [Roku, Apple TV, Amazon Fire], consumers can wean themselves off of high cable and satellite bills by paying for only what they need or want.  Amazon Fire TV offers exclusive features including “no line of site required remote operation”, “voice search”, “ Dolby surround sound” and over 100 built-in games.

The newest streaming media player on the market is Amazon’s Fire TV.  The Fire TV provides a quad core processor with 2 gigabyte of on-board memory.  Amazon Fire TV seamlessly integrates with Kindle Fire tablets to allow mirroring.  Amazon Prime Members are “able to enjoy unlimited, commercial-free streaming of tens of thousands of popular movies and TV shows as well as original productions.”

The more Americans who chose to make the switch from traditional programming delivery to streaming media, the more marketers are challenged to find engaging ways to get their message across.

A few avenues come to mind including product placement or targeted ads.  Consider the streaming of NFL games as one opportunity.  Marketers can pay to have overlays [digital] placed on the scoreboard or around the goal posts or along the sidelines.  These advertisements would only be viewable to those watching digitally.  This practice is already in place on broadcast television marketing techniques.  The main difference would be the costs to advertise during highly coveted and highly priced broadcast slots during NFL games.

Should marketers push to advertise during streaming media programming or would that alienate current and potential customers?  Would you be willing to watch short videos, such as those on YouTube, in order to watch free streamed content?

Would You Put Aside Your Smartphone to Provide Clean Water to a Thirsty Child?

UNICEF hopes you will.

Walk into a restaurant, shopping center or even a park and what do you see?  People using their smartphones to check weather, post on Facebook, send a text, answer a call, snap a photo or record a video.  Even in our living rooms, we cannot get enough of our electronic devices.

Have we become so addicted to technology that we cannot simply walk away?  Will our palms get sweaty and will we shake as if going through drug withdrawal if we fail to check our e-mail?  What can motivate a technology-addicted population to step away from their phones?

Perhaps a thirsty child.

In 2014, the UNICEF Tap Project leveraged emerging media to provide drinking water to those in desperate need of safe, clean water and sanitation.  The use of a simple web-based application calculates the minutes when a smartphone is in one position.  For each 10-minute period that a phone is not in use [or motion], a sponsor provides funding to help deliver clean water to the 768 million people worldwide who lack it.

Learn more by taking a few moments to watch UNICEF’s campaign video.

In order to keep smartphone addicted individuals engaged, UNICEF’s web site provides statistics including how many selfies are not being snapped, how many cat photos are not being viewed, how many photos not posted to Facebook during the time the smartphone is  idle.

UNICEF’s campaign cleverly encourages individuals to use emerging media [mobile phones and web apps] to abstain from using emerging media in order to give back.  Fabulous!

The 2014 mobile campaign, sponsored by Giorgio Armani, was active for a single month, World Water Month 2014.  The 2014 campaign was incredibly successful.  UNICEF reported that, “together people have gone over 200 million minutes without their phones to help children in need of clean water“.

While the campaign has ended, the web app remains active.  The Tap Project’s web site is also active in order to accept donations for those who may have missed the mobile challenge.

Individuals in a marketing capacity are encouraged to spend some time reviewing the campaign.  It is simple, creative, leverages emerging media and engages its target audience all while working toward a goal of social responsibility.

What do you think about using emerging media for social causes?  Are there any other organizations that you are aware of that use emerging media in a socially responsible manner?  Do you believe that UNICEF should use the same approach for 2015?  Would you participate?  How long do you think you can leave your phone idle?  Feel free to comment and share your thoughts.

In App Advertising: A Boon or Bust for Marketers?

Mobile is often a “brand’s first point of contact with the consumer.”  As such, mobile has tremendous power and it doesn’t seem to be slowing anytime soon.  Modern mobile devices [including tablets and some e-readers] have video capability through mobile apps like FaceTime and Skype.  So it may be logical to have a mobile web site and a mobile search strategy but what about an app or in-app advertising?

Web apps must have a definite value add for the consumer.  The large number of apps available make it easy for a company’s app to be overlooked.  The competition for prime real estate on a consumer’s mobile device continues to grow.  Web apps are expensive to develop [and maintain].  Each update requires action by the consumer to download the app again.

How about advertising on another web app or web game?

Hmm..that is a tough question.  It all depends on what the marketing objectives are and the target audience segment.  Mobile gaming apps are popular but ask yourself this, if you are playing a game and see an advertisement appear at the top or bottom of your mobile screen will you stop playing and look at it? Will you click on it to follow the small banner? Do you remember the last banner ad that you saw within an app?

Of course, there are certainly a lot of app developers ready to take your precious marketing dollars.  In fact, Mobile advertising revenue increased nearly 1.5X in 2011, to top out at $1.6 billion for the year.  As of October 2013, Google offered 700,000 apps for their Android operating system while Microsoft offered approximately 120,000 apps.

1 Billion Apps were in the iTunes store (October 2013)

Apple announced that they had more than 1 million apps are in the App Store with 60 billion apps downloaded since iTunes was launched 5 short years ago.

App developers tend to be more likely to make money from in-app advertising than marketers.  Consumers; however, have different experiences with in-app advertising.  According to an 2013 article in the Harvard Business Review, four of five report disliking the tiny banner ads.

The majority of activities on smartphones including calling, e-mailing and texting.  Smartphone users spend, on average, 82% of their mobile minutes with apps and just 18% with web browsers. However, out of the 40 apps to their phones only about 15 are used regularly.  What are the chances that your ad will appear in one of those apps?

Sunil Gupta of the Harvard Business Review asserts that People simply don’t like ads on their mobile devices.  If your company can develop a web app that provides value and incentives to customers to download and use is more profitable long-term than in-app advertising.  For those without funding or programming expertise, the monies that you are considering for in-app advertising may be better served allocated to developing a mobile web site and mobile web search placement.

Beacon Technology and You

Beacon is a physical transmitter technology that works with Bluetooth Low Energy [BLE] to provide location-based services in an indoor setting.   Sounds a lot like Global Positioning or GPS right? Well, in a way it is but there are important differences.

GPS systems use satellites and signals from devices to pinpoint locations outside, whereas Beacon uses transmitters that sense when a mobile device with Bluetooth active passes a sensor in an indoor setting.  GPS has an almost unlimited range while Beacon’s transmitters have a much smaller range.

How is Beacon used?

FourSquare is a social media app for smartphones that require location-based services to be turned on.  Then it uses GPS technology to identify the location of the mobile device to suggest local points of interests, services or even restaurants.  GasBuddy, another location-based app, looks at your current location and returns the gas prices of each gas station within a given area.

Beacon functions in a similar manner.  For example, iBeacon is Apple’s version of Beacon technology and is designed to sense when a consumer is nearing any one of a store’s transmitters via their mobile device. Beacon can report where a consumer is within the store, how long they stay in a particular area and their movement pattern around the store.  Furthermore, Beacon can send messages to the handset of the consumer when they are in proximity to the transmitters.

Almost any indoor venue can use iBeacon to improve a consumer’s shopping or entertainment experience.  Sporting arenas have been quick to adopt Beacon technology to entice ticket holders to upgrade to higher priced, better quality seating that is available by setting up messages that are sent out when transmitters pickup the consumer’s Bluetooth signal.

A Win for Marketers and Retailers

Beacon technology could they key to providing in-store retailers the analytic capacity that, until now, was only available to online merchants.  According to Will Smith, CEO of Euclid Analytics, his company’s aim is to “do for retailers what Google and Amazon have done online forever, improve the shopping experience through data”.   This technology could be very lucrative in competing with online stores as well as other physical stores and high-profile retailers such as Macy’s and American Eagle Outfitters, along with Major League Baseball and the National Football League, are paying attention.

Retailers can use Beacon and related systems to track “products, staff, shopper browsing patterns, and store layouts.”  When a consumer is near a transmitter, a Beacon can send a coupon to the handset or send additional product information based upon where the handset is located within the store.  If a consumer is in the mall outside of a store, the Beacon can send a message to the handset notifying the consumer of a special or sale.  Based upon the ID of the handset, retailers are also able to determine if it is a first time customer or frequent shopper.

Additional customer service oriented benefits of Beacon include travel notifications for “departures, delays, and gate and platform assignments can be delivered instantly to passenger phones“.  Wouldn’t it be great to have a message automatically update your handset to tell you what carousel your baggage is arriving at or if there was a gate change or flight cancellation?  Sure it would but there is a price to be paid and it is the same price as most emerging media asks — your privacy.

Consumer Impact: Benefits and Privacy Concerns

One of the biggest hurdles is adoption.  No, adoption issues are not from retailers or marketers, after all what retailer/marketer in their right mind would say no to improved customer insight or an opportunity to influence a purchase? The adoption or opt-in rate barrier is on the consumer side.  There are some consumers who value some semblance of privacy.  Apple’s implementation of iBeacon in the iPhone 5 removes the opt-in barrier.  Once a consumer downloads and app, they have opted-in and Beacon’s messages may be delivered even with the app in a closed state.  In order to “opt-out” iPhone owners would be required to “uninstall the app, re-set the location permissions or shut of Bluetooth“.

Privacy dinosaurs can sleep in peace knowing that Beacons do not collect data from iPhones.  Beacon technology is only able, at this time, to send data or messages to handsets while providing handset apps that use iBeacon location data.  According to Cult of Mac blogger, Mike Elgen, “Any reporting of location, any transmission of data, any downloading of data happens through your phone’s WiFi or mobile broadband connection, controlled by the app and governed by the permissions you’ve granted” thus privacy is in the hand of the mobile owner.

Perhaps the ultimate benefit would be a transmitter mounted at the front door to notify you when your in-laws were approaching to enable you to sneak out the back door.

Emerging Media and the Emerging Power of the Consumer

The term emerging media is thrown around quite a bit in blogs, seminars and in classrooms, but what exactly is emerging media?  Is Facebook still considered emerging media even though it has been around for years? And how does emerging media impact day-to-day life? Over the next nine weeks, this blog will explore various topics in emerging media and their impacts to both consumers and marketers.

To begin, we must understand what emerging media is.  Merriam-Webster defines the emerging as anything that is “newly created or noticed and growing in strength or popularity” or “becoming widely known or established.”  Considering this definition, Facebook and most of the major social media channels in use today would be classified as emerging media.

Almost every facet of our daily lives is touched by emerging media; ask yourself, How many people carry a smartphone or tablet to check e-mail, post on Facebook, receive Twitter alerts, read a digital book or magazine, snap and share photos, purchase a movie ticket or find a local restaurant? In this post, we will explore one of the many ways emerging media influences our lives on a consistent basis – the purchase decision-making process [What is it that we wish to purchase, how much we are willing to pay and where will we purchase it from].

Graphic courtesy of Emarketer.com

The results of a 2013 Harris Interactive poll indicates that social media plays a significant role in influencing purchase behavior, “68% of 18-to-34-year-old social media users surveyed were at least somewhat likely to make a purchase after seeing a friend’s post;” whereas, “78% of social media users 65 and older said they were not at all likely to make a purchase based upon what they saw on their friends’ feeds.”

The trend to use emerging media to review and investigate prior to purchase is not limited to the United States.  EMarketer cited a study conducted in Finland regarding purchase influence for individuals born into Gen X [1964-1979] and Gen Y [1980-1995].  Thirty-seven percent of respondents indicated a preference to consult online stores prior to purchase.  Manufacturer’s web sites were a distant second with only 22%.

Image Courtesy of EMarketer.com

 A 2013 survey conducted by Dimensional Research indicated an “overwhelming 90 percent of respondents who recalled reading online reviews claimed that positive online reviews influenced buying decisions, while 86 percent said buying decisions were influenced by negative online reviews”.

Graphic courtesy of MarketingLand.Com

It is interesting to note that product performance is only part of a customer review.  Amy Gesenhues, of MarketingLand.com, suggests that customer service plays a critical role in terms of reviews, “Key findings of the study [Dimensional Research’s study] illustrated that customer service not only affects revenue, but has a long lasting impact, with customer service ranking as the No. 1 factor influencing how much a consumer trusts a company”.  Consumers are not likely to give their loyalty to a company who cannot earn or sustain their trust.

Emerging media has placed the scepter of power into the hands of the consumer.  This is a wake up call to organizations and marketers that they must build a good product or service, be competitive and care about their customer.  Customer service and marketing must actively manage social media channels in order to be successful at gaining and sustaining consumer loyalty.