Partner Article

Study Reveals Extent of Irrelevant Brand Communications

The pursuit of consumer data for personalised marketing campaigns is backfiring in the UK according to a new study conducted by Gigya, the Leader in Customer Identity Management.

“The 2015 State of Consumer Privacy & Personalization” report highlights that, despite willingly sharing their personal data with brands in exchange for personalised experiences, a quarter of consumers in the UK continue to be bombarded with six or more irrelevant marketing communications per day, equating to more than 2,000 messages each year.

This frustrating lack of personalisation is causing consumers to not only tune out of a brand’s marketing communications, but also to actively avoid it in the future – pouring away marketing budgets, losing subscribers and incurring win-back costs.

Gigya’s study reveals that almost half (44 percent) of UK consumers will ignore all future communications from a company that doesn’t target them effectively. Even worse, 15 percent will stop buying products from the company.

The study also explains how UK consumers perceive and respond to privacy and personalisation at a time when organisations are increasingly hungry for data and insight.

The results confirm that 91 percent of UK consumers are at least somewhat concerned about how companies are using their data, highlighting the need for brands to be transparent and honest about the way they collect, store and use personal data.

In their June 2015 Forrester Research report titled “How Will People Trust You?”, analysts Thomas Husson and Fatemeh Khatibloo wrote, “The future of marketing and advertising depends on how the relationship between privacy and trust will evolve in a hyper-connected and sensor-driven world.” Husson and Khatibloo added, “In the age of the customer, it is critical for brands and vendors in the data and marketing ecosystems to evolve their business practices now to build trust.”

Richard Lack, Director, Northern Europe at Gigya commented, “Despite earning the trust of their customers to collect first-party data, many marketers continue to undermine the brand equity of their organisations with the widespread use of untargeted, irrelevant marketing communications.” Lack added, “First-party customer data is one of the most valuable assets a business can have. The benefit is clear: brands that leverage this rich data to provide personalised, relevant offers and experiences will be rewarded with significantly higher conversion rates than brands that do not.”

This was posted in Bdaily's Members' News section by Gigya .