13th May 2018
I’m back from my B2B marketing mini-sabbatical! From dancing rays to diving with dolphins in Western Australia, the Red Centre, the Great Ocean Road and the wonderful cities of Sydney and Melbourne – and so much more – it’s been an incredible few months.
As those who follow me will know, I went socially silent about B2B marketing while I was away. And when I returned to London in mid-April, personal data and privacy were dominating the headlines.
Most likely, the vast majority of us (myself included) haven’t thought much about the personal information we exchange in order to use social platforms. They’re free, right? Nor have we understood how companies are accessing and using that information to sell us their products and services, influence opinion on major social issues or even manipulate public discourse.
There’s just so much personal information so readily available; technology, marketing automation and advanced marketing analytics are enabling better targeting of our marketing activity and a more personalised approach for marketing. The theory is that this personalisation is more effective than mass marketing or even targeted marketing – both one-to-many approaches – through one-to-one marketing.
It’s become such a cliché, but marketing has always been about being in the right place at the right time with the right message for that person who is ready to buy. But are we confusing what we actually mean by and intend with the word ‘personalisation’? Isn’t our real challenge in B2B about making marketing personal to our customers? In other words, moving from our product/service centric world to a customer orientated one?
Maybe it’s semantics, but I believe that the words we speak and the language we use impacts the ways in which we think and behave. So, I looked up the definitions in the Oxford English Dictionary:
That’s a fundamental difference in meaning. And a fundamental difference in what we choose to do as marketers. Especially in light of the issues around our privacy and personal data.
Are we too infatuated with what we can do, instead of what our customers actually want?
At the end of April I saw an article on consumer online expectations, based on a report by a US digital services and solutions provider called Avionos, who conducted a study in December 2017. The article concluded that US consumers want personalisation, but they don’t really want to share much beyond name, email, gender and age – information that we’ve all been sharing with many companies for years. But when asked about more personal information such as buying preferences and habits, personal hobbies and interests, and even location – things that would enhance personalisation of their buying experience – respondents were far less likely to share that information. I actually downloaded the entire report and while it provides some interesting insight into how people buy online, I’m not entirely certain I agree that the data supports the conclusion for more personalisation.
Similarly, that same article referred to a YouGov survey on data privacy conducted in the US, France, Germany, Italy and the UK in February of this year. Fully 78% responded that they try to limit the amount of personal data they share online and with companies.
Both these reports suggest to me that our customers are not as enamoured with personalisation as marketers may think.
I officially ended my B2B marketing sabbatical by attending the May meeting of the BMC (Business Marketing Club) where we had a presentation and discussion around ‘predictive analytics’. This is another of those new phrases that make me want to cringe. But it turns out that predictive analytics has actually been around for quite some time. Essentially, it’s an assessment of future scenarios using statistical analysis and machine learning to identify the likelihood of specific outcomes based on historical data. In the context of marketing, it’s about assessing buyer behaviour.
The main tool that organisations use here is regression analysis, which correlates specific variables to buying behaviours and thus the degree to which each variable affects that behaviour. What follows is scoring the likelihood of a purchase. We’ve all done this to some extent for most of our marketing careers. For example, we extrapolate customer lifetime value or forecast sales or create word clouds on trending topics; these are all forms of predictive analytics. Together with progressively sophisticated data aggregation technology, we have the possibility for greater insight into how and why our customers buy from us. And, accordingly, predicting who is more likely to buy from us in the future, thus better focusing our marketing investment towards that buyer or buyer audience.
I continue to wonder, though, why we marketers persist in inventing new words for what is at bottom basic marketing practice, albeit with new tools. Isn’t predictive analytics just one more tool in our marketing kit? Isn’t personalisation just really good targeting?
Be aware, though, that one of the assumptions we make in using predictive analytics for human behaviour is that past behaviour predicts future behaviour. We conveniently forget that although we as human beings establish and repeat patterns of behaviour over time, we do change. Furthermore, given that there are typically many people involved in the B2B buying process, how do group dynamics influence this behaviour?
Which all leads me to question: do our B2B customers even want personalised marketing? And are we so enamoured of what we can do that we’re losing sight of what our customers actually want?
A huge Thank You to everyone who has bought my new book B2B Marketing Strategy: differentiate, develop and deliver lasting customer engagement. I’m really excited to have received my first royalty statement from my publisher and I’m so pleased with your overwhelming response to it. If you don’t have yours yet, check it out on my book page, and then buy it from Kogan Page publishers or Amazon everywhere.
Heidi Taylor is an award-winning senior marketing strategist with 25 years' experience of helping organisations engage with their customers, creating impact and differentiation. She is a sought-after speaker at marketing conferences in the UK and internationally, and regularly contributes articles to marketing journals in print and online. You can follow her on Twitter @TaylorMadeInKew.