People don’t like being lumped into marketing segments
Through a special arrangement, presented here for discussion is a summary of articles from MarketingCharts, which provides up-to-the-minute data and research to marketers.
Personalization is all the rage these days, with a primary goal being to enable one-to-one communication. A new survey from Selligent Marketing Cloud may provide one reason why marketers who have yet to move to individualized campaigns may want to work on those efforts rather than marketing to broader segments.
The survey, fielded among 7,000 respondents globally, found an overwhelming preference for being treated as an individual rather than a member of a segment. Fully three-quarters (74 percent) agreed that they expect companies to treat them as an individual, not as a member of some segment like “Millennials” or “suburban mothers.” The figure was slightly higher (77 percent) when it came to U.S. respondents.
The trouble for marketers, though, is that consumers express a reluctance to provide the data that can enable that type of engagement. About three-quarters of the survey’s respondents are at least somewhat concerned about companies tracking their behavior on their websites and apps — the type of first-party data that could be used to personalize experiences to the individual user.
The conflict between desire for personalization and privacy is evident elsewhere in the results, too. Fully 62 percent of respondents are “quite” or “very” concerned about companies tracking their location even when they’re not interacting with them. And yet only 41 percent have that level of concern about companies sending them messages based on their current location or need.
- A third expect brands to anticipate needs before they arise, and a whopping 70 percent agree that it’s important that brands understand a consumer’s individual situation (e.g. marital status, age, location, etc.) when they market to them.
- When it comes to “willingness to receive an alert about a sale for a store I was passing by,” 48 percent of Millennials welcomed geo-targeted ads while out shopping, compared to 43 percent of Gen X and only 29 percent of Boomers.
- Only one in five consumers are willing to provide data to brands up-front in order to improve their experience.
- People Don’t Like the Idea of Being Linked to Marketing Segments – MarketingCharts
- Selligent Marketing Cloud Study Finds Consumer Expectations and Marketer Challenges are Rising in Tandem – Selligent Marketing Cloud
- Email’s Still the Most Common Channel for Personalization, but Efforts Remain Fairly Basic – MarketingCharts
- Retargeting Ads Have Weak Appeal With Consumers – MarketingCharts
- Brands: Avoid These Email Pitfalls – MarketingCharts
DISCUSSION QUESTIONS: Is using customer segmentation increasingly feeling like stereotyping to consumers? Are there ways to reduce the number of off-the-mark and annoying pitches to individuals caused by such broad groupings?