123 eGuides

1 Minute Advice: The Dark Side of Social Media Marketing

For marketers, social media can be both good and bad. There's no question that social media is a valid way to generate awareness, engage customers in a dialogue, and potentially influence sales. Still, there is a dark side to social media marketing, as Jayson Demers explains in a blog post for Entrepreneur.com.

Demers points out, for example, that while there is rarely a monetary cost associated with social media, there is a cost in terms of the time marketers must spend to use it effectively, because it takes "several hours a week to even maintain the most basically active presence." He also acknowledges that "it takes a long time for social media to start paying off," and what's more, "there's no predictable pattern of success."

These and other insights from Demers are worth reading, and they could keep you from falling prey to false expectations about social media marketing. Read his article, "7 Social Media Marketing Secrets No Marketers Wants to Admit." 

1 Minute Advice: Desktop and Mobile Video Advertising on the Rise

Not surprisingly, the growth of online video is leading to the associated growth of video advertising on desktop and mobile devices. The Interactive Advertising Bureau reports that 67 percent of agency and marketing professionals in the U.S. plan to increase their use of desktop and mobile video advertising within the next 12 months. The research report indicates digital video advertising in the U.S. is likely to almost double by 2019.

U.S. mobile video ad spending alone increased 80.6% in 2015, according to the IAB, and will see double-digit growth through 2019. That growth is faster than online banners, rich media and sponsorships.

1 Minute Advice: Loyalty Programs Drop in Popularity Among Affluent Consumers

Is the loyalty program bubble bursting? Pioneered by the travel industry's frequent traveler rewards, loyalty programs became widespread among retailers and across a broad range of businesses. But according to Collinson Group, an international market research organization, membership in loyalty programs among affluent consumers has been declining since 2014. "The affluent middle class is also now less likely to repeat purchase, recommend a brand to friends or refrain from switching to a competitor as a result of loyalty programmes that are too generic," reports Collinson Group.

In its most recent study, Collinson Group Collinson Group polled 6,125 of the top 10-15 percent of earners from Australia, Brazil, China, France, Hong Kong, India, Singapore, the United Kingdom, the United States of America and the United Arab Emirates. The study indicated that 69 percent of these consumers expect high quality, consistent customer service however they interact with a brand. The same percentage expect brands to be easy to do business with, and 67 percent value the flexibility to choose the rewards and benefits they are offered. When asked what would encourage higher and more frequent spending on their preferred brands, half of respondents requested a loyalty programme where it is easy to earn, redeem and adapt to their personal preferences.

Collinson Group suggests that loyalty programs must be specific and relevant to consumers' interests and needs. The group makes the following recommendations:

• "Recognise the value of relevance - Personalisation and breadth of rewards and benefits is key for brands to remain relevant."
• "Address how loyalty programmes are funded."
• "Embrace digital - The smartphone is becoming the consumer device of choice for many brand interactions. Incorporating loyalty programmes and initiatives into payment card and mobile ecosystems will drive engagement and increase consumer brand affinity."
• "Move beyond transactional rewards - Although discounts and cash-back provide instant gratification, they do little to drive long- term loyalty. Brands should instead get to the heart of what matters to their customers. For the affluent middle class, this is often their friends and families, so rewards should be more experiential, lifestyle and life-goal oriented."

1 Minute Advice: Customer Service Challenges Brands in a Multi-Channel World

A new report from eMarketer explores the challenges brands face in providing customer service in a multi-channel world. According to eMarketer, "the number of potential channels or touchpoints in which one can encounter a brand is vast and continuing to expand—and they’re not always direct or controlled.

"Customers don’t view these interactions as channel-centric or as journeys, paths and lifecycles in the same way a brand might view them. Each one, however small, elicits emotion from the person at the other end. Over time, these individual interactions or moments accrue, forming the basis for customer experience."

Recent research suggests online customers in major metropolitan areas worldwide use an average of almost 6 customer service channels of all types, including online and more traditional channels, such as in-store and telephone. John Caruso, partner and creative director at digital experience agency MCD Partners, tells eMarketer that people "expect first-contact resolution for all their problems. You pick up your device and you expect it to get resolved right away. Across all devices and platforms and services, customers expect it to all just work."

Read more from the report here.