Relationships between brands and consumers have changed. The way we consume products, amenities – and even marketing messages – is no longer the same. The proliferation of smartphones and tablets, along with the rise in subscription economy services is leading this change. Consumers can no longer be considered in an online or offline state, we are perpetually hyper-connected.
Digital innovation has given consumers unprecedented levels of choice and has redefined expectations of what retailers can provide. Hyper-connected consumers are creating a mass of data and information. From demographic to social and transactional, consumers are happy to offer personal data in exchange for a more personal experience and a deeper relationship.
The rise of the ‘entitled consumer’
UserVoice CEO, Richard White, categorised this new type of consumer as the ‘entitled consumer’. He defined this era of consumer entitlement as: “Customers’ voices, amplified by social media, now best even the cleverest of marketing. Combine that with a massive surge towards subscription and freemium models, increasing saturation of digital marketing channels, increased competition and decreasing customer loyalty, and you have the recipe for an era where users, not brands, wield unprecedented power.”
Marketers contend with power-wielding consumers everywhere they turn. There are the “deletists,” who, once disappointed by a failure of a marketing effort, eliminate communication with a brand forever. There are the “con artists,” who abandon their shopping carts on purpose in order to receive discounts. And, of course, there are the “socialites,” who, immune to traditional advertising, entertain only brands that they find organically through social media.
So where do marketers begin?
Data is key
Marketers need to focus on the consumers whose expectations they can meet, bringing their empathetic understanding of those individuals to bear. Today’s entitled consumers expect relevant communications that speak directly to their needs at any given moment. In order to be able to cater to this, retailers need to utilise the data being amassed by consumers on a daily basis.
Marketers need to make sure they are collecting the right data - and using it smartly. Brands can build a single customer view by collecting data at the various junctures of the customer journey and merging it to create a 360 degree profile of every consumer. This means marketers can get to know their customers better and learn how to provide a better experience in every moment, across every channel.
Consumer-first marketing
The key to winning entitled consumers is to understand and act on personal data and use it to build marketing initiatives that build winning experiences. A Consumer-First approach to marketing is required. Contextual understanding of desires and preferences is a key aspect of consumer-first marketing, as it opens up new possibilities for merchants to deliver on needs through the smart use of data. It goes far beyond knowing who your customer is and where he is located.
The aim is to continuously build out a rounded profile of your customer. This approach can include tracking behavioural data, transactional data, data from social media and much more. The key is to create and offer content that is both relevant and valuable for consumers – and where there is no fit to communicate, then don’t. It is better to be silent than to be irrelevant.
Resisting change
If marketers are to rise to the daunting challenge of meeting the expectations of the ‘entitled consumer’ then context is key. According to research recently carried out by Selligent, which involved canvassing the views of 108 senior marketing executives, 67% of CMOs admitted to not taking advantage of contextual data and the technologies available. The research also showed that marketers are actually waiting for their competitors to make the first move. 81% admitted that they would increase their use of situational data only if their competitors started first.
In this era of shopper promiscuity, the battle for customer loyalty is fiercer than ever. CMOs need to embrace contextual marketing. Contextual marketing isn't a fad; it's a fundamental change in how marketers reach out and engage consumers throughout the customer lifecycle. It's about a brand understanding the needs of a consumer in real-time, respecting their preferences and delivering value in that moment. It’s the key to tackling today’s ‘entitled consumer’.
By Christopher Baldwin, head of marketing in Northern Europe at Selligent
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