Market Data / Supplier Selection /Event Presentations / User ExperienceBenchmarking / Best Practice /Template Files / Trends & Innovation ?Value Exchange fromData ExchangeIn association with Acxiom ValueExchange fromData ExchangeIn association with AcxiomEconsultancy London4th Floor, Wells Point79 Wells StreetLondon W1T 3QNUnited KingdomTelephone:+44 207 269 1450http://[email protected] New York350 7th Avenue, Suite 307New York, NY 10001United StatesTelephone:+1 212 971 0630Econsultancy Singapore20 Collyer Quay#23-01Singapore049319Telephone:+65 6653 1911All rights reserved. No part of this publication may bereproduced or transmitted in any form or by any means,electronic or mechanical, including photocopy, recordingor any information storage and retrieval system, withoutprior permission in writing from the publisher.Copyright © Econsultancy.com Ltd 2015 Published December 2015 Value Exchange from Data Exchange In association with Acxiom Page 3All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2015Contents 1. Foreword by Acxiom .. 42. Executive Summary 53. Methodology .. 73.1. About Econsultancy .. 73.2. About Acxiom 84. Why do we need a value exchange for data? . 94.1. Why the value exchange is needed 94.2. Finding the data 104.3. Moving from a single view of the customer to the customerssingle view of the company .. 114.4. The challenges of getting the right data 125. Customer attitudes to data .. 136. Demonstrating the value exchange . 186.1. My Waitrose Case Study 186.2. Are customers holding brands to ransom over their data? ..206.3. Delivering the value exchange seamlessly in theomnichannel .217. Creating solutions for points in the customer journey .237.1. The difference between getting, and keeping, the customer 237.2. Surviving the adblockalypse .. 247.3. Where is the balance in the customer value exchange thatdelivers trust and longevity? .. 258. The Future of Things ..268.1. Relevant Utility .. 288.2. Building trust in data . 289. Conclusion 31 Value Exchange from Data Exchange In association with Acxiom Page 4All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 20151. Foreword by AcxiomMany times every day, the vast majority of us are increasingly aware we are both using andcreating data. Were absorbing content and leaving digital footprints as we go across the wideningrange of media, channels and devices. So what!As marketers we know the above. The key issue is, what are we doing about it? There can be littleto no doubt that data is the lifeblood of the modern digital economy. As table stakes, consumersexpect data to be kept safe and secure and used only for appropriate activities. However, theworld is moving on and brands who fail to appreciate this shift do so at their peril.Ultimately, we consumers vote with our wallets. We were highly responsive to direct mail, emailand even telemarketing in their heyday and remain responsive to a lesser but still valuable degree.The thing is, we respond to what seems to work for us. Its partly down to relevance, partly timingand partly the way in which its communicated, for example does it feel good, is it easy, do I trustthis brand and experience?If these things work, then as consumers we say yes, we click, we respond, we buy and buy again.This is the ultimate measure of success, when the customer tells us were getting it right.This is why its imperative we marketers not only deliver great customer experiences via data, butincreasingly help the consumer understand that were able to do so due to the data and even go sofar as to help them get value from the data itself in addition to the product and service. These willbe the cornerstones to building trust and as we know, we as consumers share data with brandsand organisations we trust. If we dont or worse still erode trust, the consumers will increasinglywithhold their data and the arguments for a balanced view when it comes to data legislation willbe undermined. None of this is good for marketers nor consumers.So, for the sake of brands and marketers, for the sake of the digital and marketing economy butmoreover for the sake of the consumer, lets find ways to take data-driven marketing and businessto the next level, where consumers not only get a better customer experience and value fromsharing data with us, but also understand and appreciate why thats the case.Jed MoleEuropean Marketing DirectorAcxiomValue Exchange from Data Exchange In association with Acxiom Page 5All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 20152. Executive SummaryBeyond the intrinsic value exchange within the core product or service benefits, mostorganisations struggle with both the concept and consistent practice of creating long-term valueexchange for the customer out of a relationship with the brand. Brands often struggle to tell theirstory, about how value exchange relates to consumer data exchange in the long term, rarely goingbeyond the use of fairly blunt but effective instruments or offers. Trying to convince consumersthat they will benefit from a more open and meaningful relationship with a brand is a tough callfor most marketers.This Econsultancy Value Exchange from Data Exchange report, produced in partnershipwith Acxiom, examines how brands should be looking to develop ongoing relationships withcustomers, how to define those relationships and what can be expected of the increasingly datasavvy, data-wary customer. This report also develops recommendations for businesses wanting toescape the short-term incentive spiral for a more long-term, sustainable approach.Based on interviews with key executives across a number of different business sectors andextensive desk research into the impact of new technologies that generate big data and theregulations devised to manage it, this research demonstrates the importance of addressing whatvalue means to the consumer and how to move beyond incentives that have been the increasingly ineffective norm for more than 20 years.Topics covered in the report include:? Why we need a value exchangeData has driven brands abilities to deliver a more targeted experience to individual customersand as a result this has become their baseline expectation. But this has led to something of acatch-22. The customer knows brands need their data. And it is often seen as purely benefitingthe brand theres a growing sense of Whats in it for me? Brands response to date has been todeploy the offer, voucher and free gift but this tactic is rapidly wearing thin. This report examinesthe strategies that move beyond the virtual voucher code confetti.? How customers feel about their dataBrands have conditioned customers to expect freebies in exchange for information. This is nowthe baseline. Yet our research has shown that customers still have a lukewarm attitude to sharinginformation at best, although the balance is increasingly tipping in favour of a pragmatic attitude the value exchange is making itself felt. But it is still a hairs breadth between willingly sharingand going into clampdown. It takes very little for consumers to opt out and an awful lot to getthem back again. Is the gold standard to have customers share data without them even noticing?If so, how?? What do customers consider value?There is still no shortage of discount divas but the most successful campaigns show that longterm relationships are built on value that is much more intrinsic to the product. All supermarkets,for example, offer some way of securing money off but few deliver a compelling reason to go backtime and again. Customisability and ongoing relevancy are the two killer features that help theMyWaitrose offering rise above the rest.Value comes in many forms, dependant on segment and sector and often down to the individual.But universally if its considered that the value exchange is inadequate, up comes the drawbridge.Reported misuses of data are leading some to dirty their data to avoid unwanted emails andinappropriate communications. Is the future in creating value so compelling that customers areactively seeking and consenting to new ways to share their data?Value Exchange from Data Exchange In association with Acxiom Page 6All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2015? Future directionsWe are reaching a privacy event horizon with customers. If the value brands deliver does notmatch up to their expectations then the data on which they depend could simply disappear. Thecustomer will go dark.Dangling the discount carrot can only achieve so much and the customer has points fatigue.Unfortunately for brands, the customer is now so conditioned to incentives, it isnt a loyaltymechanic, its just the cost of entry. To keep the customer requires an understanding of the when,the how and the why they use the product and then delivering value that reflects this. Not justtoday, but every day.The challenge is only going to get bigger. If brands are worried about big data today, the Internetof Things has the potential to unleash a tsunami of information. Managing it intelligently, earningthe consumers consent to use it, deploying it sensitively and finding ways to continually delivervalue are only the tip of the iceberg.Value Exchange from Data Exchange In association with Acxiom Page 7All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 20153. MethodologyThis Econsultancy report on Value Exchange from Data Exchange, produced in partnershipwith Acxiom, is based on interviews with 15 senior executives working for international brands.We would like to thank the following people for their contributions to this report:? Nic Wenn, CMO, Quidco? Chris Pook, Senior eCRM Manager, Marie Curie? Alessandra di Lorenzo, Commercial Director, eBay Advertising? Edward Armitage, Ecommerce Director, Waterstones? Paul Whitehead, Commercial Director, uSwitch? Adam Kornick, Chief Analytics Officer, Aviva? Peter Markey, CMO, Post Office? Osama Hirzallah, Vice President Brand Marketing & Ecommerce Europe, Marriott? Leigh Rengger, Head of Loyalty, Waitrose? Jonathan Carter, Head of Strategy & Consulting, Chair DMA Data Council, Acxiom Other related Econsultancy contentDelivering Value in the Data Exchangehttps://econsultancy.com/reports/delivering-value-in-the-data-exchange/How Data Holds the Key to Customer-Centric Marketinghttps://econsultancy.com/reports/how-data-holds-the-key-to-customer-centric-marketing 3.1. About EconsultancyEconsultancys mission is to help its customers achieve excellence in digital business, marketingand ecommerce through research, training and events.Founded in 1999, Econsultancy has offices in New York, London and Singapore.Econsultancy is used by over 600,000 professionals every month. Subscribers get access toresearch, market data, best practice guides, case studies and elearning all focused on helpingindividuals and enterprises get better at digital.The subscription is supported by digital transformation services including digital capabilityprogrammes, training courses, skills assessments and audits. We train and develop thousands ofprofessionals each year as well as running events and networking that bring the Econsultancycommunity together around the world.Subscribe to Econsultancy today to accelerate your journey to digital excellence.Call us to find out more:? New York: +1 212 971 0630? London: +44 207 269 1450? Singapore: +65 6653 1911Value Exchange from Data Exchange In association with Acxiom Page 8All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 20153.2. About AcxiomAcxiom is a data and technology company specialising in connecting data across all channels,media and devices in neutral and ethical ways to help brands and their partners deliver connectedexperiences to consumers and better results to companies.We are committed to the principles of responsible marketing as a critical component to thesustainable and permissioned use of customer data and are passionate about the ethical use ofthat data to deliver connected experiences to consumers. We specialise in managing, connectingand enabling data so that brands can recognise and understand individuals wherever andwhenever they interact. We do this through our data sciences, data-onboarding, and marketingdatabase solutions. What makes Acxiom different is our 45-year history of innovations thatdeliver a difference to the worlds leading brands and the worlds consumers.Acxiom has operations across four continents and over 5,000 associates. For more informationvisit www.acxiom.com.Value Exchange from Data Exchange In association with Acxiom Page 9All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 20154. Why do we need a value exchange fordata?Arguably there is no need for brands to go over and above the call of duty to recognise customersgenerosity when they divulge and freely consent to the use of their data. After all, their data is howthey access product in the first place they cannot receive deliveries without providing anaddress, names are clearly also useful. But increasingly, companies with nothing to physicallydeliver and no obvious reason to address customers by name are seeking these details and more.And more often customers are demanding to know why. Having secured the answer, that theirdata is what makes brands worlds go round, customers are starting to sit up and think, hang on aminute Now that customers are aware that their data is what is helping companies turn a profit, many areasking themselves whats in it for them? And if the answer is nothing, they can quickly head forthe hills.Not only that but now there is the paradox of customers jealously guarding their details butexpecting personalised service because thats just what happens these days; or complaining iftheir data turns up somewhere unexpected; or expecting call centres to know exactly where theygot stuck in the application form.There are many hurdles to meeting consumers expectations of what brands use their data forbefore companies can even begin contemplating how a value exchan
ge for data might somehowbe used to build a competitive advantage. This report looks at each of these challenges in turn how diligence over data reaps rewards and can be seen as a value in itself, what good data practicelooks like, what constitutes value and ultimately, how value moves beyond first encounters intocreating a mutually beneficial, long-term relationship between brand and customer.4.1. Why the value exchange is needed Voice of the marketerWe did a survey of 5,000 people and the top line was that 70% of those who replied get frustrated if a websitepresents an un-personalised experience. To have that experience, those customers understand that informationof their previous usage and data already provided will be used to deliver this.Nic Wenn, CMO, Quidco Customers know that companies use their data. They now also know (to a degree) what can bedone with that data and this has led to certain base-level expectations. Personalisation is one ofthose. And convenience is another. Not convenience of product or service at this point. Simplyconvenience of data collection. If it were possible, it would all be invisible, happening behind thescenes. But if physical data collection is needed, it needs to be as unobtrusive as possible. Evenhere, there is a value exchange of sorts. The brand that can deliver personalisation with aminimum of fuss compared to the brand that delivers it with more hoops to jump through isalready onto a winner.Edward Armitage, Ecommerce Director at Waterstones, said that there are two aspects todelivering the value exchange through data: the first is being clear about why you are collectingthe data in the first place, and what the value is for the customer e.g. better recommendations,relevant offers, faster transactions. The second is to honour that promise, dont get lazy, dontwaste the customers trust.Value Exchange from Data Exchange In association with Acxiom Page 10All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2015Armitages second aspect of trust is absolutely vital but unfortunately an invisible part of the valueexchange. Customers only overtly value it when it is absent, as can be seen in the charity andAshley Maddison scandals (detailed in Section 4).4.2. Finding the dataTracking the customer journey remains central to many companies data plans. By being able totrack customers purchasing journeys, brands can begin to infer behaviours and preferenceswithout interrupting their individual customers journey with specific questions about what theyare looking for. Brands still need to make sure that their Privacy Policies and Fair CollectionNotices are transparent and cover the collection and use of this data but such automaticallygarnered insight can go a long way to developing relevant targeted communications without thecustomer having to complete an exhaustive attitudinal or preference survey (although one mightargue that Opting-In to the use of their data and Accepting Cookies constitutes at least one formof survey).Edward Armitage of Waterstones said:Implicit customer preferences gained through behavioural data is extremely valuablein creating personalised recommendations. Its not perfect though even Amazon gets itwrong if your husband uses your iPad to buy a drill youll be bombarded with ads forpower tools.So it would seem that even the king of recommendations still doesnt get it right all the time. Butit enjoys the advantage of being a digital pure-play and able to garner its information from alimited number of channels yet a vast number of customers. For non-digitally native brands, orthose who span several platforms, both online and offline, the picture is more complex. Voice of the marketerWe have a decent grasp on the customers digital journey, but we cant easily relate this back to their offlinebehaviour or profile. We can identify common digital purchase paths at an anonymous level, but cant layer anysegmentation or other data over this.Chris Pook, Senior eCRM Manager, Marie CurieWe are a transactional website so we have ability to follow the customer from their registration to first order andthen we can look at what they are browsing and searching for. So within that process we cover both purchaseintent and action and this is an important aspect when delivering personalized content. Due to the number ofretailers we feature (over 4,200 and rising) we need to present customers with retailers that are valid to thecustomer if a customer only ever browses fashion, why would we then show them energy?Nic Wenn, CMO, QuidcoOne challenge is having different providers involved in cross-selling. How do you get different call centres tohave other conversations? But it is not a difficult journey to track, its only about connecting the plumbing.Pete Markey, CMO, Post Office The growing ability to track and measure customers at every interaction point lends itself to atendency to try and do so. For some marketers, the need to pursue the customer at every turn isbecoming less of a priority. Instead, they are seeking to pinpoint particular actions at select butsignificant points in the journey.Chris Pook, Senior eCRM Manager at Marie Curie, notes:The concept of a SCV is important to Marie Curie, in that this has the potential to be thesingle source of truth that enables confident personalisation and consistency across anyValue Exchange from Data Exchange In association with Acxiom Page 11All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2015interaction. A consolidated view of the supporter is essential in achieving this,particularly as we have a wide number of touchpoints, offline and online. Genericcustomer profiles still have a place when looking at sourcing new supporters particularly relating to our fundraising events, as these help us buy and target mediamore effectively and get a sense for the opportunities outside of our existing supporterbase.For other marketers, the sense-check is based on what they hope the end result of collecting datawill be, as Commercial Director at uSwitch highlights:We only collect the customer data that will ultimately save them money on their bills.We use it to shape the products we deliver to our customers. For example, if its anenergy customer, if they show us their usage data we can set up an alert service thatshows them which tariff suits. There is a direct financial benefit.Whitehead also notes that the data is used in more general terms to create products that shouldbenefit the customer base as a whole. Recently, again in the energy sector, the company createdan app that allows customer data to be stored across different devices which notifies users whenthey can make savings. These can be set to say Dont bother me if I cant save more than £50.Individually this is a small customer benefit but uSwitchs Whitehead notes that households canend up with around 30-60 services to manage and cumulatively, its a lot of hassle to save.Taking a pragmatic view of the data that is required and how much investment of time and energyis required to acquire it will always be an important yardstick by which to determine a datacollection strategy. The sense that a full, detailed picture of the customer is essential beforeembarking on this journey is waning. And for some, it may be that it is the single customer viewthat is the ideal starting point, after all. 4.3.Moving from a single view of the customer to thecustomers single view of the company Voice of the marketerThe customer journey is certainly not linear any more. It may be difficult for businesses to track, but thecustomer doesnt see it as difficult.Pete Markey, CMO, Post OfficeIn the past it was really well defined. Today, with the separation of multiple platforms, aggregators, review sites,it is becoming a waste of resources to figure out detailed customer journeys.Osama Hirzallah, Vice President Brand Marketing & Ecommerce Europe, Marriott The value in tracking the customer is now not so much to understand what happens at eachcustomer touchpoint. Instead, it is to be able to manage the incoming data flow about thecustomers activities so that the experience at each touchpoint is relevant to that point in theirjourney.So a complaint on social media needs to be visible to the customer contact centre and the emailteam, while a detailed search for holiday accommodation needs to be capable of continuing ascustomers swap from device to device. As Pete Markey of the Post Office highlights:Work needs to be done with single customer experience bringing social media muchmore into our customer service experience. So a company-wide view of all the instanceswe speak to customers should be in one place its an awful lot of nuts and bolts.Value Exchange from Data Exchange In association with Acxiom Page 12All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2015Edward Armitage of Waterstones emphasises that the idea that the customer journey was oncelinear and is now complex is incorrect. Its never been linear, customers have always discussedproducts with their friends, visited your shop multiple times, ordered from your catalogue,called your contact centre. The difference is that they now leave a data trail. You can nowmeasure and track those permutations.4.4. The challenges of getting the right dataIn a multi-platform, multi-device world, the ways of getting data and tying it to the right peopleare proliferating. For companies whose websites are densely populated with content and boastmultiple options, data management platforms (DMPs) that help direct customers down apersonalised route on multiple occasions are beneficial. For brands whose most importantinteractions come solely for mobile, persistent IDs beyond the cookie and seamless data capture isvital.Nic Wenn of Quidco talks about the role of DMPs:You have to have a robust data management strategy that enables both access andusage of customer data. A customer will not accept a deterioration of their userexperience so therefore having a platform that delivers timely and robustpersonalization is key. In addition to the DMP itself we also have a large number of datascientists that work through the data points to look at relational behaviour that we alsoincorporate into our personalisation, this includes aspect such as platform usage andinteraction with customer services.First-party data also plays an important role and Osama Hirzallah of Marriott sees it as the keythat unlocks personalisation. We can talk about third-party data but it is very limited andstrictly regulated, and it doesnt give you a lot. When you come to our site we know a little bitabout you either from being a member or by the way you are searching. What we are trying todo is push the content that is relevant to you.The point at which companies begin to collect data is also important. As more can be done withanonymised IDs, using cookies for example, the need to press consumers into actively enteringinformation is less of an issue early on in the acquisition process. For customers to enjoy a betterongoing relationship however, detailed information becomes important.Paul Whitehead of uSwitch talked about collecting customer data that delivers a specific benefit:We dont ask for a login when customers come to uSwitch. We only ask for more data ifcustomers want to be notified when a cheaper deal comes available.This separation of data on a need to know basis is perhaps the beginning of understanding howto modulate the value exchange in an acquisition situation versus a retention/extended CLVscenario (see Section 6). Voice of the marketerWe try to operate with a consistent tone and feel, but probably like many multi-faceted organisations, we findthat it can be difficult to execute across so many different touchpoints and channels. Customers can also set theirmarketing preferences centrally, which helps to give them a feel for how we view them too.Chris Pook, Senior eCRM Manager, Marie Curie Value Exchange from Data Exchange In association with Acxiom Page 13All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 20155. Customer attitudes to dataTo say that customers attitudes to data are contrary is like saying that piranhas can get a little bitupset. Copious research has been done on the subject and the one common thread is that they arequite comfortable holding two completely opposing ideas simultaneously. On the one hand,consumers are adamant that marketing must be relevant, targeted and timely. On the other, thereis very little chance they can be convinced to part with the data that will make this possible unlessthey receive several assurances, preferably signed in the blood of the CMO.Mediabrands Marketing Sciences, for example, found that only 1% of consumers trustedadvertisers to look after their data, but 27% would be prepared to sell their data and of those, 41%believed their data was worth more than £500 per year.The research has also revealed that consumers are increasingly wary of stalker media:? 54% worry about advertisers misusing their data.? 28% worry about their TV eavesdropping on conversations at home.? 39% worry about their mobile phone publically sharing their location.However, consumers say they are interested in receiving advertising messages based on theirlocation data:? 62% are interested in special offers nearby, e.g. two-for-one.? 59% are interested in free give-aways in local places e.g. free coffee in cafés.According to separate research carried out by Econsultancy in association with Acxiom1, 40% ofconsumers surveyed stated that there was little or no benefit to them in sharing their data. It wassometimes worthwhile for 43% and usually worthwhile for a further 14%.Figure 1: Do you generally feel that its worthwhile sharing your personalinformation for what you get in return?Respondents: 1,000Source: Econsultancy / Acxiom Delivering Value in the Data Exchange1 https://econsultancy.com/reports/delivering-value-in-the-data-exchange/Value Exchange from Data Exchange In association with Acxiom Page 14All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2015The same research showed that a little under half of respondents (48%) only had a certainamount of trust in companies use of their data, with the other half evenly split over quitestrongly trusting organisations or not trusting them at all. Ambivalence was the order of the day.Figure 2: How much trust do you typically have in companies when you provideyour personal information?Respondents: 1,000Source: Econsultancy / Acxiom Delivering Value in the Data Exchange Voice of the marketerWe are confident that customers are giving us data so we can follow up on things that will add value. The brandis trusted and people are happy to hear from us as long as we are not overdoing it.Peter Markey, CMO, Post Office Ambivalence aside, consumer feeling was strong that companies should a) only ask for theirinformation once and b) know who they were when they contacted the company after providingthat information (see chart overleaf). The desire for a value exchange in customer service termswas already clear.Value Exchange from Data Exchange In association with Acxiom Page 15All rights reserved. No part of this publ