Tag Archives: Advertising and Marketing

The Freemium Come On

I had the same sort of thing happen to me twice in the last 24 hours so of course I feel compelled to rant about it. In the first case, I was searching for a better system to keep track of my business development work. I spent some time reviewing solutions and I thought I had found one that I liked. Research told me that there was a free solution that would meet my needs so I signed up. Imagine my surprise when my account said I was now using their enterprise solution for a 30-day trial.  I wrote to customer service asking about the promoted “free” option and was told that in 30 days my account would be downgraded to the free solution although some pieces of what I had access to would be lost.  No, he didn’t tell me which pieces so I’m a little wary of getting too invested in this since who knows if I’m building a database which will then be held for ransom.

In the second case, my “thing” about grammar led me to a browser extension that is supposed to improve upon the tools built in to the operating system, my word processing software,  and the browser.  It too said it was free so I installed it and registered for an account. The first document I ran through it contained a number of errors, some of which were labelled as “critical” (spelling and a comma fault) and others labelled as “advanced.”  Hovering over the critical issues allowed me to fix them immediately, choosing from several proposed solutions.  I clicked on the advanced list and was taken to a page which told me I needed to upgrade to fix the advanced writing mistakes as well as to enhance my text.

In both of these cases, I don’t begrudge the companies for charging for their services.  I think freemium is a pretty good business model and there are some free services that I’ve paid to upgrade over the years after having used them for a bit.  I have a bigger issue with companies that begin as free and then begin charging for features which had been free.  The issue I do have is a lack of clarity upfront.  If it’s a freemium service, state that and lay out the differences between free and paid.  Hopefully, your product is good enough that you’ll convert folks who use it and want a deeper involvement.  Don’t play the airlines’ game of promoting a low cost (or no cost) and then hitting a user up with charges for everything under the sun.  That’s just deceptive.  That’s my take.  Yours?

 

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Filed under Consulting, Huh?

Are We Getting Dumber?

Every day there are more articles written about the vast treasure trove of data marketers, publishers, and others gather from their interactions with customers.  Every mouse click, every social interaction, every store visit is another source of information that a business can use to make the

English: Somerfield, Spilsby One of the last c...

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customer experience more enjoyable and, hopefully, more profitable.  Nice ideal, but the reality is far from it, since most of the time the data is not collected, analyzed, and organized by capable people.  In fact, I’m willing to bet that the folks who could benefit most from all of this information know the least about it.

Here is something from eMarketer:

In a March 2015 study by Signal, 51% of marketers worldwide reported that they did not have a single view of customers/prospects across devices and touchpoints. In comparison, just 6% said their current solution provided an adequate single view of their customers. And Econsultancy polling in association with ResponseTap in March 2015 found that only 5% of client-side marketers worldwide had a seamless integration of customer touchpoints across channels that allowed for exploitation of opportunities. Just under a quarter had integrated channels but were channel-focused, not customer-focused.

That was about marketers’ understanding of mobile but there is much evidence that the same sort of low integration applies in other channels as well.  I mean think about your own experiences on-line and off.  I know my supermarket knows everything I buy because I’m diligent about using my card to get gas rewards – cents off gasoline purchases. That is a great value received – along with some good store discounts –  in return for me giving up my data.  That said, when I check in the scanner doesn’t acknowledge me by name nor are the coupons I sometimes receive at checkout very well targeted.  The mailings I get from the store – not the circulars – that’s asking a bit much – the coupon packs and email offers don’t seem very well targeted at all.  They have the data – they should be getting smarter and I should never want to go shop anywhere else – but nether of those things are true.

Every customer interaction counts.  We are getting a lot better about collecting them but we’ve got a long way to go to create a better experiences for our customers.  Media need to understand how to create that same better, efficient experience for their advertisers.  Heaping 15 minutes of ads into a 60 minute window isn’t it and the data can show us that.

So are we getting dumber?

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Filed under digital media

Stalkers

Sometimes I think that every advancement in technology is made simply to facilitate advertising.  I’m pretty sure that the marketing community sees it that way.  I don’t know about you but I saw the first ads on my Snapchat stream last week and I read a piece ruminating about programmatic ads on watches. To place an ad these days you want data from the device or screen user and more often than not the user had no clue what data is being captured to feed the marketing beast.

I’ll say upfront that I’ve worked in and around marketing for almost 40 years so I get the attention/value equation.  What digital has done is to change that equation, since we’re really not simply measuring the users’ attention but we’re learning a lot more about the users themselves, way more than we ever knew from media measured by panels.  The more you know about what marketers know, the creepier it gets.

Consumers are waking up.  The Annenberg School for Communication at the University of Pennsylvania released a study called “The Tradeoff Fallacy –  How Marketers Are Misrepresenting American Consumers And Opening Them Up to Exploitation.”  From the introduction:

New Annenberg survey results indicate that marketers are misrepresenting a large majority of Americans by claiming that Americans give out information about themselves as a tradeoff for benefits they receive. To the contrary, the survey reveals most Americans do not believe that ‘data for discounts’ is a square deal. The findings also suggest, in contrast to other academics’ claims, that Americans’ willingness to provide personal information to marketers cannot be explained by the public’s poor knowledge of the ins and outs of digital commerce. In fact, people who know more about ways marketers can use their personal information are more likely rather than less likely to accept discounts in exchange for data when presented with a real-life scenario.

The study goes on to detail how an overwhelming percentage of consumers do NOT believe that stalking them and grabbing personal information is a fair trade for the value they receive.  The reason they don’t stop using the services doing so is not because they approve of and appreciate the trade but because they don’t see an alternative.

Maybe it’s time we asked ourselves if identifying the individual consumer and stalking them everywhere (even on their wrist!) is the best way to drive sales or build a relationship with them.  Perhaps we need to do a better job of creating strong brand messages and allowing the consumer to come to us instead of us popping up everywhere?

84 percent strongly or somewhat agreed that they wanted to have control over what marketers could learn about them. 65 percent agreed that they had come to accept that they had little control over it.  We wonder why ad blocking is becoming the norm?  When companies ask for information they don’t need to deliver their product or service, every other company’s ability to get the data they do need is compromised.  For example, the Uber app is grabbing location data even when the app isn’t being used to call for a car.  Stalking at its worst.

Read the study and have a think about it.  While we do need to know about our consumer and engage in conversation with them, none of us want to be stalkers.  Any thoughts on how we can strike that balance?

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Filed under Consulting, digital media