Why aren’t marketers using personalised video to improve the customer experience and generate engagement?

In Colin Shaw’s latest (insightful) post he provided a link to the following video:

If you watch the video you will see a profound change in behaviour by simply turning the mundane, take for granted, into an interactive / engaging experience.  What if I had used text to describe the events in the video?  Ask yourself would it have had the same impact?  Would your experience been the same?  Would your level of engagement been the same?  Would your level of comprehension been the same?  I know that for most people the video increases comprehension, engagement and delight.  That is certainly true for me; we forget that text is a relatively recent invention and reading/comprehension is a specialised skill that has to be learnt over a long time.

That got me wondering about marketing, communication, personalisation, engagement and the customer experience.  Is it possible for a commercial organisation to communicate information in a way that improves the customer experience and increases marketing effectiveness? Put differently, is there a way for us to make our communication stand out and better engage our customers?  I think there is: personalised video.  I can think of two particular instances where it is likely to be particularly useful.  First, communicating the complex and second marketing offers.

Communicating the complex through personalised video

Imagine that you are customer of a mobile telco and instead of getting the same old text based monthly bill, that you struggle to understand and mostly ignore you, you get the following video addressed to you personally:

What you be surprised even delighted?  Would you sit up and pay attention?  Do you think you are more likely to respond to the marketing offer embedded in this monthly bill?  I know that for me it is yes, yes and yes.  Talking about that I do wish that Sky would do something like this because each month I receive a bill and each month I struggle to make sense of it.  What is the likelihood that if the bill was explained in this way that there would be drop in the number of calls into the call centre asking questions about the bill?  How much could be saved by cutting out calls that the customer does not want to make and the business does not want to handle?

Do you have a pension policy?  Do you understand the yearly statements that you get?  I struggle to make sense of my statements even though I am financially literate (I am a Chartered Accountant and a member of the ICAEW) and sometimes I simply file them away meaning to look at them yet somehow don’t get around to it.  What if you received this yearly statement as a personalised video:

Making marketing offers come to life through personalised video

How about bringing your marketing offers to life?  Forgoing the text based direct mail that lands in the post box and is probably binned and replacing it with a personalised video to your email address?  Take a look at the following two videos and see what impact they make on you and might make on your customers:

Who is making personalised video a reality?

When I first came across this idea I jumped to the conclusion that it must be expensive.  Turns out that is not the case.  There is company in Israel called Idomoo that excels at personalised video and can do it for  a relatively small sum of money.  If you want to learn more about the mechanics and financials around personalised video then I suggest you contact Danny Kalish the CTO and Co-Founder.

Discloure:  I have no personal or financial connection with Danny Kalish or Idomoo.  One of the readers of this blog contacted me to make me aware of personalised video and then put me in touch with Idomoo so that I could learn what is possible and what Idomoo are doing.  I am happy to write about this because I can see the value in personalised video.

Better World Books: a great example of hi-touch relationship marketing

Better World Books is a customer-centred company

We like customer-centric companies because they leave us feeling good.  And also because the kind of behaviour that we label as being customer-centred is rare.  It is the combination of the two that put Better World Books on my emotional radar back in December 2010 when I received an email from Better World Books that took me by surprise and delighted me.  I was so impressed that I wrote the following post which I encourage you to read: ‘Better World Books: a great example of customer-centricity’.

Their latest email is a great example of hi-touch relationship marketing

Today I opened up an email from Better World Books that left me smiling, laughing and just delighted.   In fact, this email is such a good example of hi-touch relationship marketing that I want to share that email with you.  Here it is:

Dear Maz,

We’re just checking in to see if you received your order (The Hidden Connections: A Science for Sustainable Living). If it hasn’t arrived please respond to this email and let us know.

We aim to flabbergast our customers with impeccable service so do let us know if we haven’t achieved this in your case by responding to this email. Amazon.co.uk gives you the opportunity to leave us feedback. You can do this by visiting http://www.amazon.co.uk/feedback . We would be grateful if you would take the time to rate us on the order and service received.

Thanks again for buying from us.

Humbly Yours,

Indaba (our super-cool email robot)”

Straight after reading the email I went to Amazon and gave Better World Books a five star rating – the maximum.  And here I am sharing it with you. 

What makes this email so effective, so delightful?

The vast majority of business communications strike me as dull, inhuman (corporate speak) and the communicator pushing stuff at me.  And as such I tend to ignore them – I suspect that you do the same and that is why direct mail response rates are around 1 – 2%!   So what makes this email so effective?

“Dear Maz” Maz is what I call myself yet it is not my first name and it is not on Amazon’s records.  So it is clear that Better World Books have gone the extra mile to figure out, record and use my preferred first name.  That is a great first touch – only friends and colleagues call me ‘Maz’.

“We’re just checking in to see if you have received your order.. – the way that I relate to this is wow here is a company that cares about me and is checking to see if all is ok and if not it is inviting me to get in touch with them.

“We aim to flabbergast our customers with impeccable service… – this sentence has such a resonance because of my past experience with Better World Books, the fact that the book that I ordered arrived before it’s due date and because of this email.  Put differently, I totally believe that Better World Books are being straight when they say that they aim to flabbergast their customers with impeccable service.  Lastly, I am simply flabbergasted that I company would make such a statement in writing.  I have never read that kind of statement from any other company that I do business with!

“Amazon.co.uk gives you the opportunity to leave us feedback..” – they are inviting me to leave feedback and it really does occur as an invitation that I can accept or decline, there is no hard sell.  Yet by the time Better World Books are making this invitation they have done all that is necessary to get that feedback, positive feedback, from me;

“Thanks again for buying from us. – as human beings we do like to be acknowledged and a simple thank you is great way of acknowledging our customers and making them feel good about us;

“Humbly Yours,  Indaba (our super-cool email robot)” – I cannot tell you why but at some emotional level I simply love this ending.  It is so unpretentious and it is something that one of my best friends would write.  And there is a wonderful twist: it really would be something if a robot was writing such a personal email that pushes so many emotional buttons!

It is short and it is easy to understand – it probably took me less than 30 seconds to read it and get it both emotionally and rationally.

Conclusion

In the west we live in and are immersed in a technology centred world and this technology has brought us great benefits.  The downside is that it has encouraged businesses to act like machines.  In the process many of us, especially as customers and employees, are starved of the human touch that reaches into our emotional core.  So there is gaping hole waiting to be filled by smart companies like Better World Books who use hi-tech to practice hi-touch!

One more thing to mention

There is world of difference between relationship marketing and database driven direct marketing practices by most customer marketing groups.  Relationship marketing aims to build relationships  through emotional bonds like this email from Better World Books.  As such relationship marketing communications are not all about selling.  This is sharp contrast to database driven direct marketing masquerading as relationship marketing.  How can you tell the difference?  You only hear from the latter when they have something to sell to you in part because these marketers cannot demonstrate ROI on service centred communications.



Are your marketing communications cultivating customer loyalty or distance?

Theory: marketing communications cultivate loyalty

Recently I wrote a post on customer loyalty – Why Companies Are Struggling in Cultivating Loyalty – and one of the readers brought up the subject of communication.  In his words:

…………..It’s critically important that companies create an ongoing dialogue with customers to determine their preferences and then create solutions to meet those needs.

One way companies can nurture the overall customer relationship is to determine the best method of communicating with customers (voice mail, e-mail, text messaging, social media, direct mail) and when they would like to receive information. Once they have determined the appropriate channel for communicating, companies can engage customers in a highly personalized and tailored way.

Companies that actively engage with customers on a regular basis can proactively offer additional products, services and information that cultivates customer loyalty.

What is the reality as opposed to the theory?

First let me say that there will be an array of realities – one for each company and even within the company the reality will be different for each customer.  Given that context let me share with you the findings from a report (Data Wastage Report 2011) commissioned by Transactis  (a company focussing on data and customer insight  services):

  • 65% of consumers said that companies have sent them offers for products they would never buy even though these customers had previously handed their personal details and preferences to these companies;
  • 58% of consumers said that some companies have sent them offers to become new customers even though they are existing customers of these companies;
  • 52% of consumer said that companies have repeatedly tried to sell them products that they have already bought.

Furthermore another Transactis report (Customer Trust 2010) highlighted the following:

  • Around 80% of consumers do NOT see any of the firms they buy from using their personal data to make attractive offers and deliver good customer service.

So what is the impact of all this on the 2000 UK consumers that were surveyed?

  • 86% of consumers say they would withdraw permission for a company to even contact them if it continues to send them irrelevant communications;
  • 88% of consumers say they would refuse to hand over any more personal information if they continue to get these irrelevant communications;
  • 81% of consumers say they seriously question the competence of companies that ask for details that they have already given to the company

My take on this: reality is much messier than theory

Some kinds of communications can cultivate loyalty.  I can remember that some years ago I received a thank you letter and plastic coffee mug from Amazon (with no sales related offers) and that surprised and delighted me.  The result was that my loyalty was cultivated.  I have also written about three other instances where the communication left me touched and loyal:

The kind of communications that do cultivate loyalty are not the ones that marketing departments typically produce and distribute. Why?  Because, these communications tend to be self-serving and rather impersonal (even if they are ‘personalised’) rather than customer-centric and personal.  Put differently, these communications do not create value for the customers that receive them:   it can be argued that whilst 20% of customers may find them useful, 60% of customers are indifferent, and the remaining 20% are left annoyed and think less of the company sending out this ‘junk mail’.  What looks like success (ROI) on a campaign by campaign basis may be failure when viewed on a longer time scale.


Does marketing deserve a seat at the Customer Experience and Customer Centricity tables?

I believe that the marketing function has a valuable role to play in customer experience and customer-centricity

In the Customer Experience and Customer Centricity communities I have noticed a certain dismissive attitude towards the role and contribution that the marketing (and advertising)  folks can and do make.  To some extent this is not a surprise as some of the most visible proponents of Customer Experience come from a customer services background. Others who share this dismissive attitude tend to come from an operational improvement background and are deeply embedded in process thinking – the engineering mindset.

Whilst I can see the shortcomings, I can also see the value of the marketing function and the contribution it can, does and needs to make: to the customer centric orientation and to the customer experience in particular.   Recently I made my point of view clear on a Linkedin conversation:

“The companies that have marginalized the marketing function are making a big mistake. In my experience, the folks working in the marketing and advertising arena are one of the few tribes that truly get the emotional nature of human beings. The best marketers get the impact of standing for something that resonates with human beings. They get the importance of symbols and how these move human beings. And they get the importance of beauty. They know how to touch upon the emotional, engage and move human beings. Customer Experience requires the harmonious integration between the rational and the emotional.”

There are plenty of people who disagree with my point of view

I was not at all surprised that my comment on Linkedin resulted in the following response – a response that I believe is representative of many working in the CE and customer-centric communities:

“Regarding marketing losing its place at the table in customer-centric companies, had marketing exhibited the skills and behaviors you describe often enough, marketing still would be at the table. However, as an overall profession, marketing is far better at promoting to people than communicating with them. “Understanding” customers isn’t sufficient. In customer-centricity, companies have to see through customer eyes, rather than understand how to look at customers.”

Does this response raise a valid issue?  Absolutely.  Is it an accurate description of marketing?  Let me share an example with you and then you can decide for yourself.

Lets examine the issue through a concrete example: my wife and Tesco

My wife used to shop regularly and almost exclusively at Tesco (the biggest supermarket chain in the UK) and made frequent use of their online shopping and home delivery service.

Over the last three months she has shopped less frequently, bought less and spent less with Tesco.  In part this is simply because she is travelling more and finds other supermarket chains (Sainsburys, Morrisons, Asda) more convenient.  It is partly because she is being more frugal.  And it is partly because she had a disappointing experience at a Tesco store: Why my wife will not be relying on Tesco….

On the 24th March 2011 my wife received the following email (I have extracted some information from this email to shorten its length) from the Tesco.com marketing team:

www.tesco.com
If you haven’t shopped online for weeks. 

Don’t worry.

All your favourites are still here.

So you can fill your basket in minutes.

 

£7.50 off
Start Shopping >> e
Dear Mrs Iqbal,  

We’ve noticed that you haven’t placed a grocery shop with us for a while, and we hope that we haven’t let you down.

Please don’t forget how easy and convenient it is to shop online.  All the purchases you’ve made online and in-store are still kept in ‘My Favourites’.

And because we’d really like to welcome you back, we’ll give you £7.50 off your next grocery order when you spend £75 or more.

eCoupon code:
Valid on deliveries up to and including 2nd April 2011.

So why not let us do your shopping for you again soon?

Best wishes,

Kendra Banks
Kendra Banks
Marketing Director
Tesco.com

 

Browse Tesco.com
Double Clubcard points still on; Spend £1, Collect 2 points, Every 150 points = £1.50
Award Winning Service

What impact does this email have on you?  Does this piece of marketing produced by the marketing function improve or degrade your experience, your perception, your attitude towards Tesco?

How has my wife experienced this communication from the Tesco marketing team?

My wife is pleasantly surprised that Tesco noticed that she has shopped and spent less with Tesco. How is she left feeling towards Tesco as a result of this marketing communication?

She says “It makes me feel valued as a customer.  I matter to them and they want me back.  And Tesco is providing value to me as their customer by giving me £7.50 off my next order.  I know it is not a huge amount, yet it does matter that they are giving me this discount.”

What other impact has this email from the marketing function made on my wife?  She is left thinking that Tesco:

  • Is a professional company that is on top of things because they noticed a change in her shopping behaviour;
  • Is proactive because Tesco has taken the first step to recover / ignite the previous shopping behaviour; and
  • Tesco is simple (as in easy to do business with) and straight with its customers because the email is written in that way – no fluff, no gimmicks, no tricks.

You might say great, but has she actually made any behaviour changes?  The answer is yes – she is once again shopping and spending more with Tesco.  And all because of a single email from Tesco’s marketing team.

So what is the lesson?

Marketing matters, the marketing function matters because it touches the customer in so many ways.  And if your marketing function is not making the kind of impact that the Tesco marketing function is making then it is time to learn from Tesco (and others who practice good marketing).

Disclosure: I am a member of the Institute of Direct Marketing and thus possibly biassed!