Marketing has been a story for ages: from mass marketing in the direct marketing era to digital marketing, and now data-driven marketing. As the marketing strategy changes and the marketing resources change, so does consumer and customer loyalty. Today, consumers are using more devices, ad blockers, and other life protection tools. private, and they always have ever-changing customer experience expectations. And make no mistake: if you don't meet those expectations, customers will find someone who, according to Forrester Analytics, 54% says is willing to try in any market.
Sadly, marketers have failed in their efforts to deliver quality data-driven marketing and customer experiences. For example, in many cases their attempts to create data-rich customer profiles led to data hoarding practices and shattered customer trust when the scopes of certain companies became public (see Facebook and Cambridge Analytica). Or, keep in mind that when marketers realized the growth of value-driven consumers, they tried to entice them with value-driven messages, but sometimes at the expense of credibility, such as when a Car salesman announced that he was pulling commercials from a TV show that he hadn't bought from media in years just to take a stand against the controversy.
Why have marketers' attempts to become a customer obsession backfired? Well, one of the many challenges to stabilizing your customer base under these conditions is that customers are complex human beings and they are not just numbers in a spreadsheet or goals in a platform. of advertising technology. However, when the challenges seem overwhelming, a basic truth about customers emerges that will give marketers some comfort: People's basic needs and wants have not changed. They seek to express their identity and individuality; They aspire to be part of society; They want tools to make life better and easier; etc.
The difference is in how these needs are expressed, demonstrated and met in today's world. For example, the tendency to affiliate with tribalism has led to polarization. To prove it, do a quick Twitter search for boycott threats that day. Likewise, we know that customers will actively engage and champion the brands they are interested in, but their measurable loyalty has declined. The Forrester Customer Experience Index shows a 20 point difference in sentiment when customers judge the brand's overall service quality and feel they are being rewarded for their loyalty. The majority of branding scores show that less than 50% of customers believe their loyalty is rewarded.
When marketers fail to understand the complexity and nuances of changing customer base characteristics, people lose confidence in them. Because they look elsewhere, customers have found a smarter group of companies to meet their needs: Direct-to-Consumer (DTC) brands. DTC brands pride themselves on their direct customer relationships, and they often lead to rich personalization of zero first-party data, rather than inferred data. Also incorporates many value-driven tasks, such as Parachute's participation in the United Nations Nothing But Nets program. (Every parachute mattress purchase helps provide mosquito nets to families living in areas at risk of malaria.) These benefits have boosted consumer experience and adoption - Forrester data shows two-thirds of U.S. consumers between the ages of 18 and 34 have made at least one purchase of the DTC brand.
For large, historic brands, DTC's competitors represent not only an ever-changing competitive landscape and changing consumer attitudes, but also an opportunity to study the evolution of the market in general. Goal-based ecosystems will anchor tribalism more, but people increasingly control the identity of consumers - with the advent of the Personal Digital Twin, for example - which means dividing customers into tribes won't preserve either. more brands. Instead, marketers must manage how the needs of individual consumers
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