Big Data and the Value of Making Repeated First Impressions

Contributed by: Ryan Cash

We spoke a couple of weeks ago about the importance of utilizing big data to create engaging and personalized content for consumers.  In today’s environment, people demand personalization in customer service and experience, and, not surprisingly, that same sentiment exists for marketing and advertising.  However, there is a crucial difference between the two.  With many services, one great interaction and a personalized experience can create significant loyalty.  And one bad interaction can serve the exact opposite purpose  

For example, if a hairdresser does a great job cutting your hair and engages you in an enjoyable conversation, you will probably go back to the same hairdresser.  Then, if they do not cut your hair as well the next time, your impression from the first experience may still drive you to return to the same hairdresser.  Conversely, most people would not return to a hairdresser who gave them a poor haircut on the first try.  Essentially, first impressions matter for good service.

Advertising, however, does not work the same way.  Personalization of the content becomes a necessary but insufficient condition to even make a first impression.  And much of this derives from the rise of the mobile internet, which has created a massive increase in data traffic.  We referenced a statistic in our last post that, according to Cisco, more data passed through mobile internet devices in 2014 than passed through the entire internet in 2000.  Consumers on their mobile phones are being blasted with content from all angles making personalization imperative to stand out from the crowd.  It’s well known that standardized, mass advertisements are less effective today.  They end up in the abyss of disregarded spam and internet trash.

In order to personalize content, you have to know your customer.  This clearly is where data is important.  It’s self-evident that knowing more about who you want to reach empowers you to better reach them.  It allows you to understand what they desire, and why they desire it; it allows you to make your message relevant to them.  In essence, you are practicing the art of effective communication, that is summarized succinctly by author Stephen Covey, who teaches the maxim, seek first to understand, and then to be understood.  Until you fully understand who you are trying to reach, you cannot really expect to know how to be understood by them.

But, it is still a necessary but insufficient condition.  You have to understand to be able to personalize and you have to personalize to be able to make a first impression, but it requires more.  Why?  People are bombarded by a surplus of information and they have a scarcity of attention span.  We need to be reminded.  Something may catch my eye on a web page, but I may accidentally click the back button, or change browser tabs, or a call may come through my phone, and I forget about it all together.  Even if I’m enticed to click something or take a next step from a personalized, creative direct advertisement, I may not have the time to go through with the process at the current moment, and I forget.  People need reminders.  And if you do not give them reminders, then you cannot expect that first impression to last.  An enticing advertisement is not congruent to a great haircut.

This means that you must not just know your customer, but you mustcontinue to know your customer.  You must be able to consistently put forth content that is relevant and personalized to your audience, and in order to do so, you must have accurate and current data.  It is easy to say that storing good data about your customers is key to knowing them, but is it really?  How frequently does that data become outdated?  People move, get married, change interests and jobs, and if you sit on a store of dated data, it will no longer be relevant more quickly than you think.  This speaks to the benefit of aggregating data in real time, but it also means that data collection, validation and storage needs to be a continuous process for companies.  It’s vital to be abreast of changes in the lives of your consumers and to always desire to learn more about them, their habits and their needs.  Only then can you consistently engage with your customers in ways that are meaningful to them.  And only then can you remind them frequently enough to stay current in their mind, and to entice them to action.

Connected Customers: The Value of Leveraging Big Data to Build Customer Conversations

Contributed by: Eric Eriksen

Next Caller is excited to share some information ahead of the upcoming D2C Convention in Las Vegas. At the event, Sam Espinosa and Jeff Kirchick will be speaking on the importance of using big data to increase customer response and maximize contact synchronicity.

Constant connectedness has fundamentally changed the relationship between corporation and customer. Internet usage has generated more actionable data in the past decade than had been created in the previous century. Mobile internet, which has the greatest surveillance potential, increasingly drives data traffic. According to Cisco, more data passed through mobile internet devices in 2014 than passed through the entire internet in 2000. Additionally, wireless data traffic should exceed wired traffic for the first time by the end of this year. Contact with corporations is no longer one-way. In the past, corporations bombarded potential customers indiscriminately with ads, while consumers indicated their feelings solely through purchase decisions. Today, consumers can express their feelings through social media, while corporations can target their messages. Customers and corporations can have “conversations,” with consumers constantly sending data to corporations, and companies constantly modifying and personalizing their messages.

F. Scott Fitzgerald famously declared that there were no second acts in American lives. Telephones and rails, cars and radios, these things brought the world together in such a way that a thousand miles could not protect people from their pasts. Today, it seems quaint that our ancestors thought the world had become small. Yes, we can now go to sleep on a plane in New York and wake up in New Delhi, but the real advance has been that acts of connection are no longer intentional. Generating information was once an active process. If you wanted someone to know something about you, you or someone who knew you had to volunteer the information. A mistake could haunt a man in large part because it was one of only a few data points associated with him. Major events made their way into documentation, but the minutiae of daily life passed without notice. To find information, a person needed to undergo a targeted search, traveling to the physical archives of the world. There is simply no way for me to know what my great-great-grandfather’s preferred brand of whiskey was.

Today, data generation is a passive process. An American’s every move is monitored through GPS embedded in devices, with multiple corporations receiving constant location updates. Every Google search and web visit is recorded not only by the website visited but by every other website a person has visited. The result is an enormous feedback loop. As there are more and more data points for every individual, there is more and more reason to search for information, thereby generating more data. Beyond knowing what my favorite whiskey is, it is now possible to determine how often I go to the store to buy it as well as whether I’ve investigated other options online.

People today are connected in a way that would have been inconceivable even a decade ago. Nielsen estimated last year that the average American adult spends multiple leisure hours a day between smartphones and the internet, to say nothing of the 64% of employees Forbes estimates use the internet for personal purposes every day. The modern American consumer spends enough of his day interacting with all-knowing social media and shopping platforms like Facebook, Amazon, and Twitter that he develops an assumption that the businesses he patronizes know everything about him. He knows that searching for one pair of boots will haunt him for a month in the form of ads for everything from shoes to country music concerts. As a society, we have normalized constant surveillance, and we expect the positive effects of that surveillance in the form of personalized customer service.

The problem is that most business is not done through Facebook, Google, or Amazon. Business is overwhelmingly done with legacy companies, which are inherently not digital natives. Marketing is still mostly done by traditional marketers, who operate on the assumption of limited data. Rather than targeting Blue Label to affluent customers who regularly consume whiskey, marketers put ads in train stations and the backs of glossy general interest magazines. Most of their efforts are seen by people who would never buy the product. We passively volunteer huge amounts of information, yet many marketers do nothing with it. We no longer feel special and privileged if a company gives us personalized service. We feel cheated if they fail to treat us as individuals, and we express our anger on social media, permanently harming the brand.

This expectation of individuality means that cross-channel inconsistency undermines the brand across all segments. The vast majority of companies fail to recognize that data provided through one source is equally valid when utilized across other media. A customer who lives on Dixie Road when he inputs data online does not live somewhere else when he calls a toll-free number. Forrester estimates that 82% of companies do not have a synchronized view of customer data.  A customer with 50 interactions through social media can make a phone call and be treated as a total unknown. To the customer, this feels like someone he knew forgot his name. In order to overcome this, a company needs an omnichannel customer management solution. Corporations must maintain a consistent, consolidated, and comprehensive customer profile that integrates phone, social profiles, address, and email. Calling should not be a radically different experience from interacting on Twitter. We have seen this repeatedly in the past year, as poor call center experiences resulted in high-profile social media disasters for companies such as Comcast and Southwest Airlines.

In the direct response space, these factors are even more important. Huge call volume means that connecting the right customers as quickly as possible can boost conversions and revenues, while high levels of online ordering mean that customers calling to ask about Internet orders have to either input long, often forgotten, numbers or go through something almost as long as the initial registration process. Throughout this whole ordeal, direct response customers also have the ability to hang up at any point, making customer service, and every second, count. Plus, no one in Direct Response has to be told how important social media has become in generating a runaway success. The Snuggie became a pop-culture phenomenon in a way that was almost impossible prior to the rise of online communities.