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Stuart O'Brien

B2B buyers value 3rd party interactions more than those with digital suppliers

B2B buyers report that they value third-party interactions 1.4x more than digital supplier interactions, according to new Gartner data.Its survey of 771 B2B buyers conducted in November and December 2022 revealed some third- party interactions, such as reading customer references or reviews and consulting directly with third-party experts, are better suited to provide customers with value affirmation.

“Buyers want to feel confident throughout their purchase journey, and third-party sources can help get them there,” said Rick LaFond, Director Analyst in the Gartner Marketing practice.

The survey showed YouTube as the top social media channel to influence a recent B2B purchase decision, followed by Facebook, Instagram, Twitter, LinkedIn and TikTok (see Figure 1).

 

Figure 1. Social Media Platforms Informing Recent B2B Purchase Decisions

Source: Gartner (June 2023)

“Social channels are extremely under leveraged platforms for B2B brands,” continued LaFond. “Marketers can go beyond using social channels for flashy short-form videos promoting brand values to truly demonstrate how the brand supports different customer needs and pain points across various stages of the buying process.”While third-party interactions are top of mind for B2B buyers, a supplier’s digital channels still can have a large impact on the purchase process. When asked to identify which digital supplier interactions were engaged during a purchase decision, B2B buyers identified a supplier’s website as the most leveraged channel, followed by the supplier’s social media channels, an online search for the supplier and the supplier’s interactive tools (e.g., product recommenders, price calculators).

“Brands do not need to have their social strategy solely rely on third-parties,” said LaFond. “The data clearly shows that buyers are approaching social from a holistic buying perspective.

“Brands’ digital experiences must improve if they are so far down the list of what customers value. Most B2B CMOs are probably not tapping into the return of third-party interactions despite the weight they carry in serving as information sources for their buyers.”

Cost of living crisis impacting how marketing teams allocate PR budgets

40% of PR professionals don’t expect their budgets to grow in 2023, with 1 in 4 (25%) admitting that they are seeing their PR budgets reduce.

When also asked to estimate the overall marketing budget being invested into PR, the majority (25%) answered they were seeing around 5%, with just 10% of respondents stating that up to 50% of their marketing spend was being invested into public relations activity.

The 2023 JBH PR Report – undertaken by the Manchester based digital PR and SEO agency JBH – surveyed 155 agency and in-house PR professionals.

Survey responses for the report were collected between February-March 2023, with some of the most notable takeaways from the report being:-

  • Just one in three (33%) of PR’s report to their clients/company on backlinks
  • One in six (17%) of PR’s are paying for editorial coverage for their clients
  • 70% of respondents say volume of coverage is the primary KPI in PR activity
  • Online and broadcast tops the list as the most desired form of coverage from brands and clients
  • The most common techniques implemented by PR’s in 2023 are proactive PR, reactive PR, and feature pitching
  • More than half (53%) of PR professionals admit that they are finding it more difficult to secure coverage through their pitches and campaign outreach in 2023 compared to previous years
  • More than two fifths (42%) of PR’s are confident that the headcount within their team will increase this year

Jane Hunt (pictured, above), CEO of JBH, said: “There’s no denying that 2023 is proving to be a trying time for those of us operating within the marketing industry. Budgets are under more severe scrutiny than ever before, and every penny counts when it comes to being able to prove the huge value that we know well executed PR activity can have for brands and clients.

“By collecting and understanding how others in the industry are tackling campaigns, outreach and measurement in the current climate, as well as their general experiences of the industry, it is our hope that The JBH PR Report gives PR’s at all levels a deeper understanding into the approaches being taken by their peers.”

More in depth information and analysis of The JBH PR Report can be found here: https://jbh.co.uk/state-of-pr/

CX Solutions Summit: Your key to success in 2024

As a leading brand communications professional you’re invited to attend the CX Solutions Summit, which will provide you with a rare day of networking, learning and connection building.

Taking place on 19th October at the Hilton London Canary Wharf, this unique event will enable you to lay the groundwork for your organisations’ customer experience strategy for 2023 and beyond.

And what’s more, the Summit is completely free to attend – benefits include:

  • A personalised itinerary of meetings with solution providers who match your requirements
  • Attendance to a series of seminar sessions hosted by industry thought leaders
  • Informal networking with peers
  • Hospitality – A place at the buffet lunch and refreshments throughout

You’ll be joining 45+ senior CX professionals from the likes of:

Look Ahead Care & Support Ltd, Hyve, Reydon Sports PLC, Brent Council, House Of Commons, West Sussex County Council, Hanson Wade, Novartis, with many more due to book.

Register for your free place here or for more information, click here.

Do you specialise in Web Analytics for marketers? We want to hear from you!

Each month on Digital Marketing Briefing we’re shining the spotlight on different parts of the print and marketing sectors – and in July we’ll be focussing on Web Analytics solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help marketing industry professionals find the best products and services available today.

So, if you specialise in Web Analytics and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Kerry Naumburger on k.naumburger@forumevents.co.uk.

July – Web Analytics
Aug – Conversion Rate Optimisation
Sept – Digital Signage
Oct – Brochure Printing
Nov – Creative & Design
Dec – Online Strategy
Jan 2024 – Content Management
Feb 2024 – Lead Generation & Tracking
Mar 2024 – Email Marketing
April 2024 – Digital Printing
May 2024 – Social Media
Jun 2024 – Brand Monitoring

Apple ‘looking to break free from iPhone dependence’ with Vision Pro MR device

Apple’s much-awaited Vision Pro headset is a beta device to see if it can emerge from its iPhone dependence, according to a leading analyst.

The Vision Pro, which was unveiled this week at Apple’s WWDC event, is aimed at developers with immersive use cases geared towards productivity, enterprise, and entertainment.

Anisha Bhatia, Senior Technology Analyst at GlobalData, said: “Apple’s 34 million+ active developer community will be key here, as will be cross compatibility with apps from iPhone, iPad, and MacBook platforms. This headset is expected to boost demand for associated augmented reality (AR)/virtual reality (VR) games, apps, and services, a category growing in importance to Apple’s bottom line.

“Apple is marketing the headset as an extended display – hence the name Vision Pro – steering away from any mention of the Metaverse, which Meta has seized in recent times. This is a first-gen product, and Apple is playing a long-term game. The availability of Disney’s huge content library on the Vision Pro for a full immersive experience is a plus, as is the alliance with Unity for 3D content. VR and AR headset sales and active headset engagement have been disappointing, but Apple is sitting on a pile of cash and can attract early adopters. GlobalData forecasts annual revenues from AR headsets to reach more than $30 billion by 2030, making this a market ripe for innovation.

“The Vision Pro’s $3,499 sticker price will inhibit adoption, but Apple is not looking to make money off this product just yet. Apple’s entry into this segment will garner mainstream attention for mixed reality hardware, the likes of which only Apple is capable of. The Vision Pro is Apple’s attempt at cracking open the extended reality (XR) door to create an addressable market with iterations of Vision Pro in the years to come.”

UK consumers demanding more curation of the ads they see

Consumer demands for curated ads from trusted brands is prompting retailers to tap retail media opportunities and open up new revenue streams from monetising their first party audiences.

That’s according to the latest research from ADvendio, which surveyed over 1,000 UK shoppers to show the impact of customer engagement via traditional advertising was diminishing, with respondents saying they ignore over half (56%) of digital advertising they see, while 54% of search ads also go unnoticed by UK consumers.

And this diminishing engagement is being caused by unpersonalised and poorly targeted advertisements and engagement strategies; 68% of shoppers say they often received ads from retailers and brands that are unpersonalised or irrelevant, and 74% report they regularly receive ads for products they aren’t interested in.  A further seven in ten (68%) also said they frequently get served content digitally that’s not relevant to them.

And, because consumers are experiencing poor quality ad experiences with 3rd party brands, they are now wanting curate content and personalised ads served to them by the retailers they are already loyal to. Half (50%) of those polled said they would like to receive highly curated, personalised advertisements and brand communications from the retailers they already shop with, rising to 65% of Gen Z and 62% of Millennials.

And, with two fifths (38%) saying they would be most likely to buy from a product recommendation they received from a retailer they already regularly shopped with, this is prompting retailers to adapt how they leverage and monetise their own first party data and audiences.

Commenting in ADvendio’s latest report ‘Where the Retail Media opportunities lie in 2023, IGD’s Global Insight Leader, Toby Pickard, said: “This is a significant opportunity for retailers to enhance their collaboration with suppliers, unlocking new opportunities for revenue and profitability as they win over marketing spend from ‘traditional’ media like digital, out of home or broadcast.  The ability to influence shoppers before they start shopping, when they get to the store or website and at the virtual or real shelf – or ‘prime, prompt, purchase’ as Tesco puts it – is a powerful one as it enables brands to focus marketing spend on particular groups such as current shoppers, lapsed shoppers, competitor shoppers or possible shoppers.”

Bernd Bube, Founder and CEO of ADvendio, added: “Diminishing returns on traditional media ad spend, cookie depreciation and engagement levels on social media and PPC plateauing prompting lower ROI on what were previously lucrative channels is proving a perfect storm for retail media.  Those retail businesses with strong data sets realise they have a great position to benefit from this digital marketing crossroads.  Not just representing a sizable revenue opportunity, Retail Media Networks are changing the role of the retailer into media powerhouses, offering opportunities for advertisers and 3rd party brands to reach and influence highly-engaged and conversion-ready consumers.”

UX support remains top requirement for brands as skills gap widens

Major brands are struggling to find people with user experience (UX) skills and are searching globally to plug the gap.

That’s according to the latest Marketers Most Wanted report, which found that chief marketing officers and brand owners from some of the world’s largest companies are on the hunt for people and agencies with good UX skills.

The report, which monitors the actual briefs posted by chief marketing officers (CMOs) and brand owners on the Studiospace platform, found that UX made up 16.9% of briefs. This is a two point increase from the previous report and means UX tops the list for the second month in a row.

“The demand for UX skills is simply outstripping supply,” said Studiospace CEO Pete Sayburn (pictured, above).“There just aren’t that many people with the right mix of skills you need to be a UX designer. As a result, we are seeing a lot of demand and brands are taking a global approach to hiring agencies.”

Another skillset high on the list for CMOs is social media with 15.5% of requests, compared to 11.9% last month.

Marketing teams are handling a growing number of social media channels and are hiring agencies just to stay on top of it all,” added Sayburn. “We are also seeing demand for specific campaigns as well as videos, graphic design and copywriting.”

The survey found that demand for creative and production dipped slightly from 13.4% to 11.3%, moving from second into third place. Meanwhile, brand strategy remained fourth with 8.5%.

There was also a new entry for proposition design, coming in at joint fifth with software development on 8%.

“Major companies are looking to innovate and want to engage with tech specialists to do this,” said Sayburn. “In the current climate, budgets are tight but brands are exploring green and sustainability focused projects and want to work with engineers and designers to make changes to their core businesses. This trend has led to a number of briefs in the area of ‘proposition design’.”

The Marketers Most Wanted survey is published monthly and is based upon the actual briefs posted by CMOs and brand owners onto the Studiospace platform.

You can read the full report and further analysis by visiting the Studiospace blog.

Join the UK’s leading brands at the eCommerce Forum next month!

Would you like to join the likes of  John Lewis, Berghaus, Ryanair and Lego at the eCommerce Forum? We only have two delegate placed left, so register today!

4th July – Hilton London Canary Wharf

RSVP Today!

Your attendance will allow you to enjoy a day of 1-2-1 meetings with innovative suppliers and industry seminar sessions. You’ll also enjoy lunch provided by us and refreshments during the coffee breaks.

Plus, you’ll have the opportunity to network with your peers – those delegates confirmed to attend include:

NEOM Organics London
London Grow Ltd
Whitbread PLC
WKNDGIRL.com
Hellofresh
Lego
Ryanair
Futon Company
Vollebak
Heathrow Airport
Iconic Luxury Hotels
The Wolfe London
Lights4fun
1855 The Bottle Shop Ltd
AB World Foods Ltd
John Lewis
Berghaus
Samurai Sportswear
Harvey Nichols
Biotiful Gut Health
Rat & Boa
Mimi Holliday
Sally Salon Services
Futon Company

Secure one of our last remaining places today, or let us know if you’d like more information.

Retailers ‘must hyper-personalise’ to survive

Only 34% of IT decision-makers at UK retailers are “very confident” that their organisation will be able to keep in touch with customer concerns and anxieties in the cost-of-living crisis.

This is according to research from Ensono, which says retailers expect to lose an average of almost one-third (29%) of their customer base as the cost-of-living crisis continues.

The research, which surveyed 500 senior IT decision makers working in UK retail, revealed retailers feeling the strain of rising prices and the worsening cost-of-living crisis.

It found department store brands expect to lose an average of 32% of customers – the largest drop across the different areas of retail surveyed, highlighting the need for innovative solutions to retain existing customers.

The most pressure is on the smallest retailers, with tech decision-makers at retailers with just 1-9 employees expecting to lose 36% of their customers. This compares to 27% at retailers with more than 500 employees.

Customer connection is front of mind for UK retailers in navigating the difficult economic climate. Confidence, however, is muted across the industry. Only 34% respondents are “very confident” that their organisation will be able to keep in touch with customer concerns and anxieties during the cost-of-living crisis, with 48% “somewhat confident” and 17% ‘not very confident/not confident at all’.

Higher revenue is no guarantee of confidence in connecting with customers. Retailers with a revenue of £500 million – £999.99 million were in fact more confident (73%) than retailers with revenue of £2 billion-£2.9 billion (69%).  Retailers in essential services like grocers (89%) and fashion (88%) are more confident about staying connected with customers than their counterparts in the luxury space like entertainment (71%) or health & beauty (74%).

The research makes clear that retailers are committed to finding new ways to innovate and modernise the services they offer to customers. Sixty-three percent of IT decision-makers have increased tech investment as a result of rapidly changing consumer behaviour. Leaders are focused on several areas of technology to spur growth in 2023:

  1. Behavioural and product analytics (39%)
  2. Monitoring and performance tools (36%)
  3. Cloud Infrastructure (36%)

Retailers are prepared to move quickly on this investment. More than three-quarters (76%) of retailers said they prioritise first-mover advantage on tech investment to avoid being left behind by competitors. This focus on first-mover advantage was particularly strong in Grocery (91%), Sports & Leisure (86%), and Fashion (85%).

This conviction is backed up by clear alignment with the rest of the business: 79% of respondents agreed they have a voice in shaping the strategic direction of the business.

Steven Jones, Consulting Director at Ensono, said: “Retailers are facing a challenging 2023. It’s clear that many in the industry are bracing for severe customer losses as the cost-of-living crisis continues to bite for UK retailers.

“Survival will require retailers to be agile, taking swift action to preserve and make the most of the customers they have. Technology investment by retailers needs to be strategic and targeted. High-impact tools like data analytics help retailers build a more comprehensive picture of customer behaviour, staying connected with customer needs and priorities, and enabling them to deliver a hyper-personalised, memorable experience every step of the way.”

‘Catalytic marketing’ will allow CMOs to drive profitable growth

Catalytic marketing experiences provide the greatest boost to commercially productive behaviours such as paying a premium or referring other customers to the brand.

That’s according to analysts at Gartner, who categorise catalytic marketing experiences as those that change customers’ understanding of their own needs and make them feel more confident moving in a new direction.

During the opening keynote of the Gartner Marketing Symposium/Xpo, Gartner experts explored how catalytic marketing can help alleviate the pressures CMOs are under to deliver profitable, digital growth amid disruption.

“In a pressurized environment, CMOs are eager to optimize their investments and justify their existence,” said Carlos Guerrero, VP, Advisory in the Gartner Marketing Practice. “Yet they overcompensate in their customer-focused activities, continuously investing in more channels, technology, customer data and personalization.

“The singular focus on customers results in a series of escalating and unprofitable investments in experiences that customers find invasive and tune out. To spark productive, lasting changes in organizations and audiences requires catalytic marketing.”

Catalytic experiences help marketers do less to get more: They don’t require additional integrated data, engagement across channels, nor more technology or a fully optimized engine for journey orchestration – all of which caters to CMOs’ budget and resource constraints.

Instead, they require one meaningful opportunity that prompts customers to stop and think, change their perspective on something they knew well, or teach them something entirely new about the brand.

Gartner research shows that a single catalytic digital experience doubles the likelihood of commercially productive behaviors. It matters even more than having a large number of memorable brand interactions and rating all of them as high-value.

For example, one cosmetics company provided customers with an AI-powered assessment of their unique skincare needs, simulating an in-person beauty advisor. Customers could reflect on and explore skin improvement goals based on an honest appraisal of their skin’s features compared to other people their age.

“The cosmetic brand went beyond being just another product recommender by supporting customers’ own self-assessment of their skin prior to being routed to any product recommendation,” said Lizzy Foo Kune, VP Analyst in the Gartner Marketing Practice. “Ultimately, the catalytic experience it provided deliberately elicited a moment of self-reflection that gave customers the confidence to commit to a new skin care regimen, providing lasting change in their target audience.”

The Three C’s of Catalytic CMOs: Clarity, Connections and Courage

Catalytic marketing must be supported by a distinct management orientation that allows CMOs to create and deploy these experiences at scale.

Catalytic marketing leaders demonstrate and cultivate unusual levels of:

  • Clarity (of strategy) – They willingly articulate a limited set of core objectives and brand traits, and exercise discipline in pursuing a small number of strategically important activities.
  • Connections (of capabilities) – They prioritize capabilities and management techniques that enable coordinated, adaptive use of resources, including converged channel management and cross-channel customer experiences.
  • Courage (of convictions) – They defend choices to constrain remits, push back on urgent but unimportant requests, and opt to pare or devolve ownership of non-core tasks or investments.

“Progressive CMOs are breaking free from the cycle of more by embracing catalytic marketing and, in the process, shifting from growing marketing’s scope to growing marketing’s success as an efficient growth engine for the enterprise,” concluded Guerrero.