With consumer response rates now as low as 5%, new research suggests that brands aren’t engaging consumers in the way they want. Does this spell the end of traditional marketing? And what will replace the once tried and trusted methods?
With consumer response rates now as low as 5%, new research suggests that brands aren’t engaging consumers in the way they want. Does this spell the end of traditional marketing? And what will replace the once tried and trusted methods?
Research from 3radical, a British-based mobile gamification platform company found that 45% of all UK consumers surveyed stated that they are less likely to buy from or engage with brands because they currently don’t get the right or relevant information they need to make a purchasing decision.
A third of Brits also stated that they will ignore communications from their favourite brands due to a lack of bespoke and targeted marketing, even potentially leading them to end a brand relationship altogether.
According to the study, Brits are demanding rewarding, relevant and timely returns, but more than anything…mobile solutions.
When asked, 55% of consumers said that they are much more likely to respond to timely marketing messages, and that location and mobile were critical factors.
The study highlighted the growing power of the consumer, with 87% of those surveyed admitting that they were looking for a reward or something back in order to read or respond to messages.
Authors of the study, 3radical, underscored the growing importance of gamification.
As the advent of smartphones continues to grow – gamification “is only now being taken seriously and implemented into digital marketing strategies” – claims the company.
According to Gartner, 70% of the Global 2000 brands will have begun to introduce gamification to their marketing and customer service efforts by the end of 2014. From a spend of $100m in 2010, organisations are set to spend up to $2.8bn on gamification by 2016 – building to $5.5bn by 2018.
David Eldridge, CEO and co-founder at 3radical, commented: “Brands need to completely rethink the way they are interacting with their customers and prospects in order to survive.
“The fundamentals of our business are built on the knowledge that typically less than 5% of marketing communications are getting a response – that leaves a 95% opportunity for brands to get one up on their competitors.
Rusty Warner, Forrester Research, added: “Smart marketers know they must engage their customers with contextually relevant content that sparks an interaction cycle and provides utility while creating a value exchange.”
Whilst I can’t argue with any of the content in your article, it hardly leads to the assumption that ‘Traditional Marketing is Dead’! (Which is the headline that caught my eye….)
A well targeted piece of print could still deliver a positive outcome if it has the right content, in the right place, at the right time.
‘Good’ marketing will likely have a mixture of channels to be successful.
Thanks for your comment Nigel, really interesting to hear what you think!
If I had £1 for every time I have heard this sort of thing I would be considerably better off.And if I had another £1 for every time someone says “But we have the answer” – well, I’d be even better off.
The answer has always been the same: “You cannot bore people into buying” – David Ogilvy.
I’d love to know where this figure of 5% response comes. I email my list 5-6 times a week and make a good living on less than one tenth of that.
If a direct mailer gets 5% response he probably goes out to celebrate. If a door to door mailer gets that the whole damn firm can go out and celebrate. If a TV ad got it, the whole industry could get drunk.
I wonder if Mr. Jenkins has to run his own business, risking his own money. I somehow doubt it.
All marketing has a role to play depending on the objective and audience. But is it not obvious that with the amount of marketing noise that brands who are considerate of their audience, take the time to personalise content to give their customers timely content across multiple platforms will benefit the most.
I think digital has made some marketeers work in volume terms, e.g “throw even more mud and some will stick” when in fact digital is the channel that, more than ever, allows you to get personal and create relevant and engaging content. Brands needs to put their customer needs first and in doing so will find their own profit needs can be met.
What this article highlights is that many brands still use push tactics and only present the product or service in terms of what the company wants to achieve, with little thought about the consumer. For example, why don’t all vacuum cleaners display the suction level power (airwatt) on the box? The message is more important than the medium and clearly not everyone who has disposable income is glued to their smartphone, let alone be engaged by gamification.
Thanks for the comment Eva, good debate!
Yes I was drawn in by the title but like Nigel found that it didn’t really reflect the content of the article. Oh well. Mobile marketing is obviously the rising power, but traditional marketing, depending on who is being targeted, is just as relevant, providing it is well-integrated with digital.