••• first-party data
Study finds discrepancies in marketers’ personalization skills
Against a backdrop of increasing interest in data privacy, retailers that excel at personalizing their marketing can put themselves a step ahead in terms of data-gathering, according to a study conducted by marketing automation company Sailthru and Coresight Research. But they need to be honest in their self-assessments of their personalization skills, as the study found a disconnect between consumers’ views and marketers’ views in that area.
Consumers will share data to get more from retailers – when online and in-store – creating opportunities for an enhanced value exchange. Eighty percent of consumers are willing to share personal data to earn loyalty program benefits; 70% are willing to share their data to receive special discounts and offers; and 71% will shop more often with brands or retailers that personalize their communications.
While 71% of retailers think they excel in personalization in marketing, only 34% of consumers agree. Retailers surveyed cite e-mail as the fourth-most important channel for personalization, while consumers placed e-mail as the second-most important. Twenty-three percent of retailers and brands surveyed view social media as a top channel for personalization compared to only 11% of consumers. Providing personalization in areas that are rated poorly for customer experience, such as shipping and fulfillment, could provide measurable improvement for retailers, the study says.
••• consumer psychology
When to go easy on the science behind your product
If your product has been scientifically developed, how you sell it depends on what you’re trying to sell: sensory pleasure or practicality.
In a study for the article, “Get your science out of here: When does invoking science in the marketing of consumer products backfire?” in the Journal of Consumer Research, researchers tested sales of a body wash that was marketed as pleasurable, for example, by highlighting its “indulgent scented lather.” Consumers were less likely to buy it when it was described as developed using science, compared to when science was not mentioned. However, when marketing focused on practicality by describing its ability to “wash away odor-causing bacteria,” consumers were more likely to buy it when it was described as scientifically developed.
“[M]arketers need to exercise caution when discussing the scientific process used to create products that consumers are buying for taste, enjoyment and other types of pleasure,” says co-author John Costello, assistant professor of marketing at Notre Dame’s Mendoza College of Business. “[B]rand managers wishing to use science appeals to promote a product that focuses on pleasure could target segments of consumers who are likely to trust scientists or take care to explain why science is necessary for creating the product.”