Alex Campbell, co-founder and chief innovation officer, Vibes
Americans are very distrustful of advertisements and advertising practitioners. Just how distrustful, though? According to Gallup, 96% of consumers don’t trust ads and are skeptical of brands and their advertising.
It’s no wonder why consumers have continuously found ways to block ads from their lives. Browser-based ad blockers are the most recent and obvious, but blocking ads goes back to the creation of do not call registries and DVRs.
You may not realize it, but the remote control you use every day was created to skip to another channel when ads came on during your favorite show. Same for preset buttons on car radios—none of these would exist if it weren’t for our complete distaste in advertising.
The latest front on the war on advertising focuses on data and the crackdown on IDFA by Apple and third-party cookies by Google. According to Flurry Analytics, 96% of iOS users in the U.S. ask apps not to track them when prompted. It’s clear that consumers are getting smarter with their data, and they don’t trust marketers to handle their data.
To build this trust, marketers must finally embrace permission-based marketing to create authentic, trusted relationships with their customers that put their needs and values first. The benefits of doing so are enormous. Brands not only get accurate and complete zero-party data directly from the customer, but they also build trust in the process.
With permission-based marketing, brands can personalize for the customer while respecting that consumer’s trust.
Permission-based marketing creates authentic relationships
The relationship between brand and customer comes down to two factors: does the customer trust the brand, and does the customer get value from the brand. The only reason you don’t give information to a brand is that you either don’t trust the business or see the value in providing the information.
According to Salesforce, 46% of consumers feel they’ve lost control over their data. And according to Pew Research Center, 79% of Americans are concerned about how companies use their data. Consumers don’t like companies using their data and not being transparent about it. This lack of transparency has led to a backlash from consumers who are unwilling to share data to make the brand/consumer relationship more valuable.
Not implementing permission-based marketing will continue to fuel the game of cat and mouse between consumers and advertisers that have already led to the creation of legislation like GDPR and CCPA. Permission-based marketing is the only true form of marketing that benefits both consumer and brand.
Permission-based marketing generates value for the customer
Marketers must provide value to consumers for their willingness to share data. And I’m talking about real, quantifiable value. Most marketers shift the blame back to the consumer and argue that personal data leads to personalized ads and that alone should be enough to entice consumers to hand over their most private and personal information. This is dangerous, shortsighted thinking.
It continues to amaze me how often brands ask for data without telling customers why they want it and how they’re going to use it. For example, instead of just asking a user to “please enter your date of birth,” brands should tell consumers that they’re going to get a reward on their birthday. Brands often use zip codes to send content relevant to specific locations—yet they never explain this to the consumer.
Marketers must respect that when a customer gives them information, they’re expecting to receive better engagement in return, such as being the first to know about sales, personalized gifts, tailored newsletters, and more. By being transparent and creating value for customers, marketers can use the data they collect to provide a better brand experience that creates real value.
Permission-based marketing is an effective source of data
The saying “data is the new oil” has recently begun to resonate among brands and data companies. This is frustrating because, unlike oil drilled from the ground, companies collect data from people who do not understand the value of what they are giving up. Simply asking for permission and being transparent about why you need it and how you will use the data tells your customer that you trust and respect them.
Once brands have customer data, they need to refine it continually. A/B testing is a valuable way to refine data and learn more about their value to consumers over time. Brands can make smarter, data-driven decisions by using this data to discover what content, imagery, offers and timing increase conversion, retention and lifetime value.
The power of permission-based marketing
Marketers must embrace permission-based marketing to better engage with customers and potential customers because it builds trust and showcases value. Not only does permission-based marketing boost brand reputation by developing trustworthy relationships with consumers, but it also allows brands to drive greater relevance with their marketing messages.
Vibes offers a mobile engagement platform for brands that sell and interact with consumers online.