In this webinar, we explored how first-party data is increasingly key to forming close relationships with customers and enabling direct-to-consumer (D2C) sales channels. This has only been exacerbated by the coronavirus pandemic. As COVID-19 will bring about a 'new normal', we want to help you build the first-party data that's required for this new economy.
Watch the webinar now and learn:
- The likely short- and medium-term impacts upon post lockdown consumer behaviour
- Why building a 1st party data solution is key to future success (and risk management)
- How to go about capturing and leveraging compliant 1st party data that you’re going to need
- How this approach powers marketers to be at the heart of any organisation’s strategic thinking
It's all extremely interesting, isn't it?
We'd love to help with any retail challenges you may be wrestling with. Be more efficient with your spend and more effective in-store – get in touch today.
Here's the transcript from this 1st party data webinar
Alan Thorpe, Indicia Worldwide EMEA Sales Director: Right, it's 10:02. And so, I think it's time we got started. Isn't it?
Hello, my name is Alan Thorpe, and welcome to the second in our series of Marketers' Lockdown Recovery Guides. Each webinar will unpack how you can prepare an aspect of your marketing mix during a pandemic, so you're ready for the new normal, as our politicians refer to it, that's coming afterwards.
Today is a, well, it's actually a truly global webinar. We're joined by cyber surfers in Singapore, late-morning coffee drinkers in France, Hazelnut chocolate eaters in Switzerland, along with a large group of us from the UK, who I'm fairly sure are quietly hoping that the sun returns for this weekend.
Lockdown has seen many online providers boom. Those who've had the data, and so their relationships plus delivery capabilities have secured dramatic advantage over the majority who have been left to ponder how many doors will actually reopen.
So, today we're exploring something, which I genuinely believe is probably one of the most important topics we'll ever talk about during these webinars, and we're talking about how to be more Boho than Primark, less Debenhams and more Very, basically building a successful direct-to-consumer channel.
Politicians, have been saying social distancing is our new normal. A desire for no-touch retail is changing selling for most sectors that have previously seen direct-to-consumer as irrelevantly costly and expensive. In fact, there was a lovely list published by Visual Capitalist on the 8th of April of the fastest growing top 100 online categories, and it's quite an interesting list.
Number four, soup. Number five, dried grains. Packaged fruit coming in at number six, and actually one of the BBC reported the other day that the UK's heritage watermills, those sorts of things you'd normally tour on a sunny day, hoping for a nice bun at the end of it, are actually working flat out to produce the flour that is being consumed by the vast number of home baking machines that have been purchased.
Those are ranking it number two on the fastest selling online sales at the moment, which is quite something. So, today's presentation's going to last about 45 minutes. What? Maximum of 45 minutes, allowing for 15 minutes Q and A at the end.
We're going to mute mics because I'm sure all of us have experienced unexpected noises during our web calls in the last few weeks. When I was on yesterday, I was accompanied by the offkey sounds of someone singing "Mr. Blue Sky."
In fact, I'll tell you what, put on the chat. Tell us the worst thing that's happened to you or the most interesting thing that's happened to you during a web call in the last couple of weeks, 'cause I'm sure there's been some brilliant stories.
Please do interact with us using that chat function. We'll try and answer your questions as we go along. We'll be running a series of interactive immediate-answer polls for you to take part in during today's discussion.
We didn't think the UK's premier pollster, Jon Snow, would really be up to the job of running these for us, so I'm pleased to introduce to you our new king of the poll, the mystic of the webinar, Jon Croft. Hello, Jon.
Jon Croft, Indicia Worldwide Sales Director: Hello, good morning.
AT: Hello, Jon. So, you're going to be running four interactive polls I think for us today.
JC: Yes, we've got four polls just talking about what your plans are and how they're going to be adapting to the new normal and looking at new priorities. And so, yeah, it should be interesting. Please get involved.
AT: Brilliant. Thanks Jon. Fingers at the ready everybody. And of course, what we want to do is we're going to talk through the theoretical side of how we build direct-to-consumer relationships and capture that important data, but we want to show the practical side as well. So, we're going to be taking you through some real current, right now case studies at the end of the webinar so that you can see how others are taking steps practically to be ready for this new normal.
Anyway, on to introductions. First of all, Genevieve Flintham, hailing from Bath. For our colleagues who are joining us from abroad who are perhaps less familiar with geography, this is the city, not the tub. Welcome, Genevieve.
Genevieve Flintham, Indicia Worldwide Head of Insight and Data Strategy: Hello.
AT: Tell us why you are well-qualified to talk today.
GF: Yeah, so hello everybody. So, I've worked across a lot of online and a lot offline, which will become clear why that's relevant as we go along. So, first off, really, for Stag & Hen Company, trying to find people who were getting married, and so that was very specific, very targeted, trying to find those people who are, with prenuptials coming up, and then most recently for IKEA, trying to keep 29 million customers happy and engaged in spending across all sorts of channel. And so, yeah.
AT: Thank you. Thank you very much, and IKEA are masters of data, aren't they? That's fantastic.
AT: I understand you're currently reading a book a week at the moment. So, it'll be interesting at the webinar, perhaps you can give us all a recommendation for whilst we're stuck at home.
GF: Oh, yeah, I'll see how we go.
AT: All right, brilliant. Thank you.
GF: Fiction or non-fiction?
AT: In Stoke-on-Trent, home of world-leading ceramics and a failed Premier League football team, please welcome Steve Lowell.
Steve Lowell, Indicia Worldwide Global Director of Data and Insight: Thanks Alan… I think. So, yeah, so Steve Lowell. I look after data and insight at Indicia Worldwide. I've been in the industry for, well, probably about 25 years now, both client side and agency side as well. So, yeah, that's me.
AT: Brilliant. Thanks, Steve. And I'm in Reading, birthplace of ascerbic comic, Ricky Gervais, and that world champion of both smiling and waving at the same time, Kate Middleton.
Introduction for me, well, I think it's an absolute privilege to work in marketing because we're the people who generate the sales, that generate the revenue, that create employment. In fact, now it's probably the most important time in 10 years to be in marketing, and sometimes we hear people smashing marketing budgets. It couldn't be the worse time to do that, and actually data is usually at the heart of all great marketing because there's the human truth at the center of marketing really, that our likes to win out over our needs.
We want to car, but we like this one. Needs, understanding needs, is data. If I was forced onto Mastermind, I suppose data would probably end up being my specialist subject. I've program managed some of the UK's largest single-customer-view database builds. I've run the data scientists team for what is now Geometry, the global shopper marketing agency, and I've been Vice President for Europe for Axiom before joining the wonderful Indicia, where data sits absolutely at our core.
So, I'm just going to give you a two-second overview of the business because I realize that some of you may be joining us for the first time, thank you very much, and may not be entirely familiar with us.
Basically, Indicia exists in for one sole purpose, and that is to create new value for our clients. You'll see on our little racetrack diagram here, on the left-hand side, we've got the side of our business that's focused on effectiveness, and that's the piece of the jigsaw we're going to be talking about largely today. That is focused around using data and insight to drive intelligent decisions that can inform strategy and creative.
A couple of examples of that: we're the people, if you watch ITV at all online, the UK's largest commercial broadcaster, we're the people who sit behind the ITV online hub, looking after those 30-odd million records, the two billion lines of data that come in each day, to make sure that you get recommendations for programs and adverts that are interesting to you because ultimately we've got a world of choice at the end of our fingertips. So, that really matters.
We're the people who, for the last 25-odd years, have driven customer data acquisition for online fashion group, The Very Group, and that's so data and using data to acquire customers and build a direct-to-consumer relation was absolutely fundamental to us.
On the right-hand side of our business though, we focus on efficiency, helping major global organizations to get their marketing to customers, wherever those customers may be. We operate in 30 different countries, so delivering for example, the marketing, in-store marketing, for people like Unilever to make sure that everyone can get their Magnums when they need them. And don't we need them right now?
And making sure that Stanley Black & Decker's DIY products are available in B&Q, because actually we're one of the few places we can get to right now. Heineken, making sure that when they visit a bar then that it's Heineken branding which is on the back of a menu. FrieslandCampina, wonderful products like Chocomel, again, in-store marketing, but all of it's glued together with wonderful technology.
So, we're able to help brands create new value by lowering their cost, by bringing all these capabilities together, and then by using data and intelligence to put the right marketing in front of the right people and make sure it's stuff that's of interest to us, and then get that out to people at a global level. Can we spin on, Steve? Excellent, so back to today. The case for first party data and why it will be even more important in our new normal lives. Steve?
SL: Okay, cool. Thanks, Alan. Okay, so before we jump into the detail of this, I thought it would be worth just taking a step back and just describing what we mean by first party data, and there are, generally speaking, three types of data, which I'm going to walk through. So, first party, which is the topic of conversation today, and this is data that is collected by a brand directly from that customer for their use only.
Typically, this is where you have an account or a relationship with a brand. So, if you think, for example, your Amazon account, all of the data that you're giving to Amazon is first party data. It's for their exclusive use only to communicate with you.
Second party data, there's not to much of it about in the marketplace, but this is typically where somebody is collecting data from you on behalf of somebody else. So, I'm not going to dwell too much on that because, as I said, there's not too much second party data around the market.
Third party data is very prevalent. Third party data is where one business or one company might be collecting data from consumers for multitude of uses. So, if you think, for example, if you've entered one of those Facebook competitions where you give your name and address, and you give your permission for that data to be passed elsewhere, that's what we define as third party data.
Typically, the way we sort of judge and assess those types of data across three key thing. So, one, so the degree to which when consumers are giving their data through each of these means. They're willing to engage with a brand. So, if you take the Amazon example for instance, me, as an existing Amazon customer, I am more like to shop back with Amazon than perhaps if I didn't already have a relationship with Amazon and my data was given to them on a third party basis. Reach is really just the volume, the amount of data that there is, and you typically find that third party, there is lots of the data, but it's not particularly warm or engaged.
So, people provide their details into surveys, et cetera, but that doesn't necessarily mean they're willing to engage with brands as part of that. And then, the third bit is exclusivity. So, who can use that data? And this is really where our first party data wins over certainly third party data in the sense that that data is collected for a very specific purpose, and that's the only way in which that data can be used. So, I hope that gives a bit of an understanding as to the differences.
Typically speaking, first party data is about customer relationship. What Gen is going to talk about is how you can use that concept, really to acquire new customers as well, which we think is a little bit unique and a bit different in marketplace. Before Gen jumps into the nuts and bolts of our offering, we'd thought it'd be worth taking a step back and just talking about why we believe first party data is so important at the moment.
AT: Thanks, Steve. Jon's poll has just popped up, which is, "How's building a direct-to-consumer brand "become a bigger priority post-virus?" Please do vote now, and Jon will share the results in a moment or two.
SL: Cool. Yeah, so if you go back to the start of the year, before we were in the situation that we found ourselves in now, we were seeing four key trends, which were really starting to come to fore, so media fragmentation, and just the very disparate way in which brands communicate to their audience, the changing media mix, and in particular the growth of digital, a shift towards transparency. So almost seeing a ground swell of opinion, which is "I need to understand exactly how well my marketing is performing and the way in which my campaigns are being executed". And then the regulatory practice, so data protection regulation becoming more and more to the fore, particularly a new post-GDPR.
Let me just unpack this a little bit, section by section. So, in terms of media fragmentation, so I think at the heart of all of the different channels that we have to communicate to our audience, we just cannot forget the simple truth, which is consumers don't think about you as a brand in channels. They think about you as a brand across everything that they're exposed to, but more and more often, we find that the way in which businesses plan and execute their marketing is increasingly fragmented. So, on the one hand, you might have a direct agency that's leading with all your direct campaigns.
On the other hand, you might have a media agency that's buying all of your above-the-line spend. Very often, those agencies aren't really joined up. So, the consumer in the middle of this is receiving a very different experience across all of those channels. And so, whilst that doesn't necessarily make for the greatest consumer experience, equally from your perspective, as the brand, it means you're not really getting the best bang for your buck from your marketing budget. They can work harder when they are synchronized and orchestrated across all of the channels that you have available.
AT: And presumably, Steve, that means that being a marketeer is actually quite difficult with so many different choices because you've got to actually link all those things together, and that makes your job harder when, in truth, really what you want is the time to be focused on delivering great communication.
SL: Absolutely, and all of the channels have their own specialisms. There is a heavy technology focus across all of those channels. So, it's understandable why they are fragmented, but I think sometimes we lose sight of the fact that we are communicating to one individual across all of these channels.
AT: I see Jon's results of Jon's first poll have just popped up, and that's interesting that 95% of people joining us on the conversation today see building a direct-to-consumer brand as becoming more important post-virus, and so data to do that is going to be fundamental.
SL: Okay. So, moving on. I can click onto the next slide. So, the next piece I talked about was about this whole changing mix, this whole growth in digital spend, and this chart is really just describing how that is shifting toward digital across all of the markets that we see. So, pretty much all of them, with a couple of exceptions, are over 50%. So, 50% or more of marketing spend is now placed through digital channels, and that is growing.
So, in 2019, in all of those markets, that share gets more. So, there is this shift in this transition, but equally, whilst that is happening, we are seeing that there is greater scrutiny, and these digital channels are coming under more and more scrutiny than ever from clients and from the industry itself as well. So, Unilever, one of our biggest clients, have led the charge on this, as have B&G, around really lifting the lid on those black box programmatic media buying techniques to be really clear who they're targeting, how much of their spend is going on the end media and the end campaign rather than a commission back to agencies that are facilitating the process. So, this is becoming a real hot topic across both retailers and also within the industry itself.
AT: Okay, so what you're saying is brands need more control, Steve, and are looking for more control over those consumer interactions rather than relying on the platforms, if you'd like, to do that for them.
SL: Yeah, precisely that, Alan. Yeah, and I think there's, I read an interesting stat about a couple of months ago, where approximately 30% of everybody's digital marketing budget actually is used to the end communication. The remaining 70% is facilitating that process.
SL: Whether that be license fees or technology or agency fees. And so, if you're a marketer at a P&G, and you have a significant budget, 70% of that isn't be used to reach the end consumer, which is quite astonishing.
AT: Wow, I know we've got at least one FD on this call this morning, and I should imagine their blood pressure has just shot through the roof. Ruined their day.
SL: Well, I should move on to prevent the health stress. So, and then my final point was around regulations. So, for those in the UK and in European markets, the GDPR was launched a couple years ago, and it's fair to say that different markets were interpreting that in different ways, and there were certain gray areas within that, and I don't think that's any longer the case.
So, a lot of those gray areas or those areas of interpretation are certainly being cleared up in the UK, and I would expect that to happen across the other markets as well. Interestingly as well, other markets in other regions are following suit. So, in the US, it's at a state level, but the California Consumer Privacy Act is live now, and that is pretty much on par with the GDPR. So, regulation is coming more and more to the fore, and we welcome that as an agency, but there is no disputing that it changes the way in which you market to your audience.
AT: Jon's just popped up his second poll, Steve. It'd be interesting to see what our listeners know about this actually, and their feedback because staying ahead of regulation is one of the tough jobs in data, isn't it? It's a specialist job. We need someone to guide us through it. It'd be interesting to see how confident everybody feels about the updated regulations.
SL: Yeah, absolutely, yeah. See the results of that.
AT: Oh, here we are. Here we are, results are in. And I better say that we've all got a bit to learn.
SL: Maybe we'll do another session to practice.
AT: If anybody wants to let us know in the chat whether that's something that would be useful, then please do let us know, and we feed all these things into plans for the future.
GF: Wow, what a webinar that will be.
SL: I don't know 'cause I'm not doing it.
AT: Might need another of cups of coffee for that one.
SL: Okay, so at the start of the year, we think there were four key areas. There were four key trends that were becoming more important than ever. So, customer centricity, the need to really focus on the customer, not the channel. Efficiency to spend, really understanding the return on investment of your marketing, and in response to this whole black box programmatic type of approach, the need to be and demonstrate transparency in the way you build your campaigns, and then compliance. So, that's the growing need to demonstrate compliance at all times. So, that was all cool.
That was the start of the year, and then we had COVID, which through all intents and purposes has changed the landscape for equally from our perspective has really just accentuated a lot of the things that I've just talked about. So, this is just a snippet from a MacKenzie survey, which talks about people's views on their spending, and this is very much a function of when the survey was taken, and as you can see, China just starting to come out of COVID, but they're starting to increase spend, but nevertheless in term of the markets where COVID is still at a peak, there is significant intention to reduce spend, and I'm sure we're all experiencing that as well.
That's not just a here and now. So, there is a long-term view on that as well. So, the vast majority of markets, there is a significant chunk of people who believe that household finances and their spending patterns will change for four months plus. So, this is a longer term view as well, and our response to that as an industry has been understandably to review our marketing investment.
Whilst I say understandably, all of the evidence points to marketing during a recession often means that brands come out of that recession stronger than those that didn't market through the recession. We have Natalie Kite, Maharashtrachi has written a paper on that. It's a very evidence-based view as to why marketing during these times is important, but there is no getting away from the fact that marketers are reviewing their spend and where they place their budget. So, that's the factors of where we're at--
AT: And of course, it's a simple human truth, Steve, isn't it? That which made famous through Kahneman's book, "Thinking Fast and Slow," that actually if a brand is more familiar to you, you tend to build up trust over time, and so we don't like to made to think when making decisions, system one decisions, as he called it, are the ones which are basically we pick up the Heinz beans, and we go, "Oh, it's Heinz. "I can trust that." We don't have to think about that.
System two decisions, where we have to think about things where we don't enjoy, so actually we need to keep maintaining marketing during the less great times because then we're in mind when times get better. We might change the focus of that marketing to be a bit less about buy it now, to be a bit more about building that brand message, but cutting budget is just completely the wrong thing to be doing right now.
SL: Yeah, absolutely, and I think there is the very customer-centric rationale for continuing to market to your audience, but there's also the very practical of the ordinance as well, which is you stand to benefit and generate more awareness with your audience at a time when there is less competition. So, they're very logical here as well. Businesses are cutting back their spend, and you can generate better share of what you should do in this period as well.
But during all of this period, what we've seen time and time again is that there is a real lull for one-to-one communications and using that to Alan's point either to convey your brand, perhaps more so during this period than perhaps more of the direct sales message, but one-to-one channels work extremely well in terms of building that personal connection with your audience.
We've seen that in particular through the grocery sector, and Sainsbury's in particular have won a lot of plaudits about the way in which their CEO has managed communication to their customers during COVID, demonstrating that their listening to their audience and communicating that in a very personal, sympathetic way during this period.
And he's just got another poll, yeah.
AT: Well, very good, which is, "How much do you personalize "your direct-to-consumer coms at the moment?" It'd be interesting to see, it also be interesting to know in the chat is how much people would like to personalize their coms going forward.
SL: Yeah, yeah. Okay, so we don't have a crystal ball, and that's becoming a bit of a cliché. Absolutely, you don't have a crystal ball to predict the future and everything else, but our view is very much that the things that stood important at the start of the year are going to be equally, if not more important, after COVID. So, customer centricity is still going to be key, if not more so in demonstrating how people will change their behaviors and their attitude during COVID is going to be really important for brands.
It goes without saying that efficiency in your spend and really understanding the effectiveness in an environment where your marketing budgets are reduced is going to be more important. Compliance just isn't going to go away. Data protection regulation is here to stay. It always has been, and it will get tighter and tighter. No doubt on that.
So, the needs demonstrate overtly that you're marketing in a compliant way is going to be, will continue to be important. And then, responding to that industry and big brands wanting to understand how their marketing budget is spent is going to be a key consideration for us all going forward as well. And so, there's a really... Oh, the poll has come in.
Okay, somewhat personalized across some channels. Yeah, and I think we find that brands have an aspiration and an intent to personalize, but some of the challenges around, do they have the infrastructure, the technology, or the data structure in such a way to facilitate that personalization? So, the aspiration to personalize is sometimes greater than the ability to do so. Okay, so really the question becomes, given all of those, where we are now, and the challenge moving into the new normal is really how do you generate campaigns that really communicate to consumers on a one-to-one level in a very efficient, compliant way post-COVID? And Gen's going to take you through that.
AT: Great, thanks Steve.
GF: I like that picture as well. It's a very amazing picture, isn't it?
AT: You remember football?
GF: Yeah, the good old days. Yeah, so as Steve mentioned, so what we are doing for our clients is really trying to make some of that customer centricity and that efficiency. So, a way that we've been able to start doing that this year has been to look at building a prospect pool of warm, direct-to-consumer data.
What that means is we've got clients who are coming to us at the moment, and they're saying, "We're just not making any sales right now. We've got traffic on our site. We're getting people there, but in the current climate, people perhaps aren't buying right now. So, what's the answer?"
So, the way we look at it then is to build a bit of a prospect pool of warm leads of people who've said they want to hear from you so that you can then be nurturing them so that when we go back to normal, or the new normal, as Alan likes to say, you've got people to talk to, and you've already got these people who've said they're really interested in you.
So, the way that that looks in practice is through this diagram, and it's worth saying here that we help our clients end-to-end here. So, every one of these little bubbles is something that we help with. So, in order to build up this first party incentive prospect pool, we start display ads and targeted social ads, and that's really putting the message in front of the people that we think are best going to respond and are going to be most relevant.
I mean, I get back to that Stag & Hen story, but it's people that we know are getting married, potentially, so we're going to show them an outlet and say, "Come through to this landing page, "or come through and visit our website." Then, people will see that. They'll push through to sign up, and we've then got a data capture page, and that page, and I'll show you a few examples in a minute, but it's completely dependent on your brand on what you want to offer people and what that value exchange is because it has to be valuable for somebody to put their data in, but then equally, we want to try and get the most valuable prospects ourselves.
We then got some very clever web tie-in, which I will go through and tell you a little story about in a minute, and then we go all the way through to stitching data together. So, whatever the data they've given us, plus potentially web tracking data as well, and anything else we can tell about their behaviors and their demographics, put it all together to give that real 360 degree view of a customer.
AT: So, Genevieve, does that mean we can go beyond just having an email address and a name to actually knowing enough about someone to appeal to their likes, not just their needs?
GF: 100%, yes, and that's the problem a lot of brands have when it comes to data capture is all they know is what somebody puts in. So, if you are a big automotive brand, and you say, "Register for brochure," or, "Register for test drive," you'll probably only have somebody's name and their email address, and you might not know anything else about them. And so, what we look to tackle here is that when you're sending them that brochure, you're able to say, "Hey, Alan, we know you want a convertible, and we know you're going to drive it down country lanes 'cause that's where you live."
AT: With a hat on to keep the sun off.
GF: Well, yeah, his hat. And so, we're building that really warm relationship with somebody. And then, yeah, we've got a fantastic planning team and strategy team who can help with that campaigning as well. Because it is all very well that somebody said they want to hear from you, but we then need to get them to the next stage, to actually converting or purchasing with you.
AT: Brilliant. Show us more.
GF: Okie dokie. We go onto the next slide. So, here is an example of what's stemming from that middle bit there. So, what we've done is we've shown some of the adverts. We've said, "Come through to our landing page. "Come through to our website. "You could win 100 pounds off our brand," and this is where they would land. So, this is just a mock up that we put in for today, but what we'd do is work with you to try and think of what the best value metric is going to be there. If you'd like, I'd say for automotive, that could be request a brochure or book a test drive. It could be win 100 pounds. It could we've done some really nice work for charities where it's been added value PDF guides. How do you keep your kids in stay-in during the summer holidays? Get your guide here.
AT: It's actually changed quite a lot in the no-touch retail environment. So, for example, I'm a specs wearer. I should imagine trying on specs is going to be a bit tricky in the new world. It could be sign up here to use our AR app to try on a whole range of new specs.
GF: 100%, yes! That's a nice creative one, yeah.
AT: But I mean there's a whole new world we could introduce onto this. It doesn't always just have to be about give us some money.
GF: 100%, yes. Yeah, I think that's why we do start with the strategic thinking. So, it's outside of the box. So, it's not just book a test drive. It's what else can we do that nobody else has maybe done before? Can we do an AR app, which shows you a 3-D car, so you can see it in your living room, so you can see what it would look like? So, yeah, buying on this could be any metric that would be valuable for somebody.
GF: And then, looking at that bottom part of the form in a bit more detail, so I'm sure we've got some compliance people on here, and this is as exciting as it gets, guys. So, what we're giving you here is the ability to change the opt-in boxes, and say whatever it is that your compliance team are happy to say. So, we've given an example here where somebody opts-in by channel.
We're always staying abreast of things. We're going to ICA meetings. We're going to DMA meetings. So, we're always happy to advise at the same time. So, what does that mean? So, what we've got now is somebody has put their details into that form, and they've said they want to hear from you, but going back to that nice flow we had, what we then want to do is try and understand a bit more about somebody. So, it's can we bring in some web behavior? Can we bring a little bit more information about them so that when we are talking to them, we're being personalized and really tailored?
So, I will explain this with a little story about Bill, there. We've got man called Bill, and he is browsing your website, and he's looking at sunglasses. So, all we can see at this point is an anonymous iPad session on the website, and we can see a random device ID, so ID-123 is looking at our website. We know he's looking at this pair of sunglasses. So, for the back of that, what we can do is anonymously serve him real-time ads, maybe in display, maybe in Facebook, showing him that pair of sunglasses that he was looking at, but we still don't know it's Bill, and all we know is that this person is looking at one pair of sunglasses.
So, Bill then has a little look at other pairs of sunglasses. He decides he's got a bit of a square face, and the first pair didn't really suit him. So, he's looking at different styles, and he's thinking, "Which pair would be better for me?" So, at that point, we can see that this device ID has maybe looked at three different pairs of sunglasses. So, we can then take that dynamic approach to showing him different pairs when he goes across the web, and we can be thinking, "We know which pair would suit you, Bill," but we still don't know anymore about him than his device ID-123, and he's maybe interested in three pairs of sunglasses.
What we then get is Bill goes onto our landing page, so a bit like the landing page that you just saw. So, he lands on there, and he sees maybe 10% off sunglasses or "Would you like to get our brochure?" Or, like you said, Alan, an AR guide to whichever sunglasses are going to look great on Bill's face, but the wonderful thing here is that Bill has identified himself.
So, we now know who Bill is, and we've got his profile, and we've got that information that he's given us on the form. So, we can then follow-up, given the information that he's given us. So, if he's given us his email address, we can be sending him a triggered email. We'll be saying, "Here's five types of sunglasses." What's fantastic about what we can do here is we can also append all that really rich historical browsing data onto the data that Bill's just given us. Whereas traditionally, like I say, you might have an automotive client coming to you, and they're saying, "Bill's put his name and email address in. "He wants a brochure. "That's all I know about him." What we can now say is actually a week ago he was looking at this item.
Over the last week, he's been looking at these five items. So, at the point where we say, "Welcome, Bill. Thank you for registering," we're actually giving him really relevant products.
AT: So, this is where we're, Genevieve, this is where we're diving in with actual likes rather than just responding to needs. So, we know he needs sunglasses. Presumably, he's going somewhere nice, Como, probably this year, but we actually are able to respond to him at a personal level with, "These are the ones that you like."
GF: 100%, yes.
AT: Quite different, isn't it actually? The relationship.
GF: It changes the relationship. It fills in the blanks. It fills in what you don't know about him, and it comes back to what Steve was saying about being consumer-centric and being efficient in your marketing, and if you know only 30% of your digital marketing is getting to the people, then you want to really make sure that 30% is going to the right people. So, it's going to Bill who said, "I already want to buy sunglasses."
AT: Got it.
GF: And also, what makes this slightly different from what you might normally do when you're retargeting really is that historical bank of data. So, our web tracking is able to go back way before Bill said, "I am Bill," and identify what he was interested in in the first place.
And then, he has decided that his iPad screen is simply too small to look at his sunglasses. So, he heads off, and he boots up his laptop, and once he's on that laptop, we can then see, once again, oh, it's Bill. We know he loves sunglasses.
So, we can then start show them sunglasses on this other device as well, and that gets us to a really nice place where we can join Bill's browsing behavior together across all of these different devices, and it comes back to that efficiency of spend. So, he's on his laptop. We're not going to show him Xbox's and cars or other items. We're going to show him sunglasses because we know Bill wants to buy a pair of sunglasses. Fantastic.
So, where we then come to is that we've got his data, and we've got a little bit more of an idea about him. Oh, sorry, got a little poll there. Which of these is the highest priority for you in your marketing? Customer centricity, efficiency, compliance, and transparency of budget spend. I mean, this is a little trick one because hopefully compliance is important for everybody. Yeah, sorry.
So, if you'll do our little polls. So, where we then get to is a place where we need to talk to Bill. We need to talk to this person. So, if you remember back in the landing page, we gave different boxes for different things, and what that then means is people can opt-in to hear from you via the channels that they would like to hear from you on. And so, say we've got Bill, and he's opted into direct mail, email, and digital.
We can then send him a mailing pack. We can send him an email, but what's going next level, and what's been fantastic that we've really been able to harness over the last year is using something called addressable audiences to plug Bill's data into digital channels, so into channels like Facebook, Instagram, YouTube, Amazon, and then also video on-demand.
So, that key term there really is addressable audiences. So, what that means is the email address forms a bit of a key in unlocking all of those other channels, and you can then orchestrate your key message across those channels to somebody that you know, so it's a known individual that will be seeing those. Bill's then flagged that he would like to be contacted by digital. So, you can then plug Bill into Facebook, show him a Facebook advert. You can plug him into video on-demand, and show him a video showing all the best sunglasses.
AT: So, Genevieve, this is really important. So, in Europe at the moment, 42% of people are using ad blockers to opt-out of marketing. So, you're saying that this, by getting to know Bill properly and understanding who he is, this is a fantastic way for organizations to get around those huge barriers and really be relevant.
GF: Absolutely, yes. So, relevancy is the key word there. So, why are people opting out of things? Is it because it's not relevant? And that's not specific to display. It's the same for your emails. It's the same for any channel. If you're constantly showing somebody something that's not relevant, then eventually they are going to get a bit fed up. So, this gets around that, yes. It helps with your email deliverability, helps you with your display getting in front of the right people, and the same onboard. And then, the more relevant you are, the more people are more likely to buy from you down the line as well. here. So, customer centricity. Fantastic. Ooh, interesting that budget spend doesn't seem to be a worry, but maybe that's sorted already.
AT: Very good.
GF: Fantastic. And then, another key point there is to minimize the risk of drop off and to really make the most of the warmth of a lead when it comes in. Some elements of the process can be done in real-time. So, if you're collecting Bill's data, and people laugh at me when I say this, but it's only polite to talk to Bill fairly soon afterwards. You don't want to keep them hanging for a month. He wants sunglasses, and summer's coming up.
So, what we can do with the channels that are highlighted is be processing them in real-time and be sending that triggered email, that triggered display, that communication, as soon somebody shows an interest, and that's a big part of these forms for anybody, no matter what metric you're using. So, if you are an automotive client, and somebody's requesting a brochure for cars, you don't want to keep them waiting a week. That's something that you then want to be sending straight away.
How does that look in practice? So, here's a little bit of a case study of one of our clients. So, we work with E.ON, and what we help them do is promote their Affordable Warmth campaign. So, this is a really specific scheme that they only want to put in front of people who are eligible for this. So, it wouldn't be any use doing big broadcast media, doing television or newspaper across the whole country because there's only a certain percentage who would be eligible and who it would be worth showing. So, what we'd helped them to do was to build up a pool of people who are interested and very likely to be eligible in the scheme, and then send communications to those individuals.
Then, we can send a direct mail, then we send an email. We plug them in and show them this display ad, and these creatives were all done by us as well. So, once again, it's that end-to-end process. Then, put the same advert into social media, and then created a video version. We shared it in video on-demand.
AT: So, this is really powerful, Genevieve. Isn't it? I've worked in the past with some big insurance companies using data marketing, and there problem was that they would send out communications to people, and then they'd get turned down in underwriting 'cause it turns out they're terrible drivers. So, all you've done is really cheesed them off and creating somebody who's telling all their friends what a terrible brand you are.
GF: 100%, yes. That's a common problem amongst anybody who's got eligibility criteria, and it's the same for potentially brands, retail brands, that give credit to things. So, you know then if you apply you might get rejected for credit, and that could really upset somebody. So, what you can be doing in the beginning, and what we do for other clients, is check credit eligibility before you even go out and start marketing to them.
GF: So, they do see your advert on Facebook. You're already halfway there. You know that they are likely to be eligible and interested at the same time.
AT: So, yeah, so sorry. So, we shared one of those channels and then just another case study. So, we work with a large fashion retailer, and it's a similar story to E.ON, except because we've been working with these guys for over 20 years, we've built up a really good view of who their target customer is. So, we're able to use that insight that we've already got to make sure that the prospect pool for them has been really relevant, and it's been people who would be interested in their products and are likely to go on to commit. So, we sent them direct mail. We sent them email. Once again, we sent them social, and we plugged them into VOD and various other channels.
AT: So, you're saying that, for example, if someone's watching ITV on-demand, using the ITV hub, which we're all very familiar with, we're able to fetch more, for example, this fashion retailer can get in front of the people who are most likely to be their desirable customers and raise their hands.
GF: Absolutely, yes. Yeah, so if you are Primark, you don't necessarily want to be putting your adverts in front of somebody who only buys Gucci and Prada. So, it's about knowing who your audience are, which is 100% what we've been able to do for them, and everything, and I know I keep saying it, but it comes back to efficiency, so to what Steve said about not just blanketing everybody. It's going in front of the people that you know will be interested.
AT: I believe the work for this particular brand has been multi-award-winning. We've been an acquisition agency for 20-odd years, so we've kind of got the credentials and the proof-points as well.
GF: 100%, yeah, I was just going to say, so doing this led to a 33% uplift against their email-only campaigns and a 22% uplift against their standard integrated campaigns, and that is purely through knowing the target audience and only selling ads in front of them.
AT: And of course, in a world where we can all opt-out of marketing, the key thing is to get this done right first time because once we've opted out, under the regulations as they exist at the moment, it's too late, we're gone. We're gone forever.
AT: So, actually, this is not just about getting that initial sale and that initial uplift. It's about keeping the pool of people to communicate with wide-open and connected to you.
GF: 100%, yes. As Bill's bought his sunglasses now, but we don't want to lose him forever. He might need a new pair next summer.
AT: Let's hope he does. So, there we are. We've reached the end of our talking section. We're four minutes overdo, but there we are. We've talked you through some really clever steps to help build first party data and build sales for the new no-touch world that we're all heading into, build those great direct-to-consumer relationships, which are warm, compliant, and help you be efficient with spend.
I focused on appealing to people's likes so much more than just their needs, and actually we've seen it over many years now, that the brands who invest in their own data are fairing far, far better in the new normal. We've worked with ITV since, let me think, 2012 to help them build their huge datasets, sits behind the hub, and it's a game-changer for them.
Intelligent acquisition though, the situation we talked about today, is a great place to start if you're setting out, and you need to build your direct-to-consumer relationships more strongly now, and you're one of the brands who are suddenly looking at this new world and going, "Well, you know what? The game has changed."
Direct-to-consumer is no longer a nice to have. It's something which we absolutely need to have, and you've all probably seen the press rumors in the UK coming out that actually the over 50s, I noticed this, I would, wouldn't I? Are likely to be locked up forever it seems, and so actually direct-to-consumer isn't a short-term thing.
It's something that's going to be a long-term relationship. We're going to stay around for a few questions in a moment, but I'll just briefly introduce our next webinar, which is on the Thursday, the 21st of May, and we're continuing the theme, but we're going to talk about how to balance physical outlets versus... Say that again. How to balance physical outlets versus online to optimize post-lockdown sales, and I'm sure this is something that everyone who's going is going to be looking at, understanding where to invest money and where consumers have moved.
As someone said to me the other day that consumers, or you and I, we change our habits over a period, roughly speaking, about 60 days, and our habits rarely go back to what they were before, and I think most of us will have been through that period of 60 days by the time we get to this new normal.
So, actually understanding what that is and balancing physical online outlets is going to become a key thing for us all. I'd like to thank Steve and Genevieve and Jon. Really appreciate the hard work and time you've put into today.
We're going to stay on for a couple of minutes if you'd like to respond to anything, but I'm just going to finish with a little quote I read the other day on a sign post outside on a wall, which really talked about those likes and loves versus needs and how powerful they are, and it's from W. H. Auden, and it said:
"Among those who I like or admire, I can find no common denominator. But among those who I love, I can. All of them make me laugh."
Thank you very much.