Your customers have never cared more about your business’s values and business practices than they do today. And they’re voting — decisively — with their wallets. Today’s savvy consumers expect you to protect their privacy and deliver individualized experiences. This expectation creates a formidable challenge — and a significant opportunity
Our research uncovered both an opportunity cost
of not protecting trust, and significant upside to protecting trust. And that upside might be greater than you think. Today’s modern marketers have an opportunity to deliver better personalized experiences without compromising trust.
The ROI of creating trust
Let’s first establish the business value of building trust. Trust means different things to different people. We conducted research, uncovering the drivers of trust with consumers across multiple verticals. We also spoke with marketers and agencies about how they view trust. To marketers, upholding trust means doing the necessary things to protect people’s privacy, being ethical and responsible, and ensuring your products do what you say they will do. To people, building trust in those ways is critically important. But it’s not enough. There’s a significant opportunity to connect with people on a deeper level, in a way that builds trust that creates business value.
It’s critical for marketers to understand that trust goes beyond just protecting customer data and respecting their privacy. It’s a requirement for getting into the consideration set. In our survey, 85% of people say they’ll only consider a brand if they trust the brand. Once you’re in the consideration set, trust is how you can build greater brand love and loyalty that creates higher lifetime value. There’s a 76% correlation between trust and brand love — as trust increases, it impacts peoples’ love for a brand (Marketing with Purpose makes a difference
). The way to build brand love is by reflecting what people value in your marketing.
Across all the verticals we studied, the number one driver of trust is being genuine and authentic
. Think about it this way: when you first meet someone, it’s important that you make a good impression. The next step in developing a relationship is to start building trust. But to create a deeper, more meaningful relationship, you need to understand the person. What it is that they want, need and value. All too often, marketers fail to create a sustained relationship because they don’t understand their customers’ values. They fall back on a transactional one which can only last so long — until the next comparable product comes along with better pricing. By understanding the values of your customer and reflecting those values in your advertising, you build a more genuine, authentic, and sustainable relationship.
We’ve identified two strategies that are important to creating that genuine and authentic experience that drives brand loyalty — being inclusive
and creating more purposefully personalized
experiences. We’re going to discuss purposeful personalization here, but you can check out Inclusive Marketing: Five mindset shifts every brand can make
for opportunities to build trust through being inclusive.
Personalization with purpose
Personalization can be hard. In fact, marketers today are struggling with this very thing. Only 1 in 7 marketers feel they’re doing personalization right. Tactics that aim to connect through false familiarity don’t earn trust — they get ignored or even blocked. And it can be all too easy to overstep and alienate people by making them question how their data are being used. Personalization isn’t just about special offers based on previous purchase behavior, or ads deemed relevant to online behavior.
We know that most marketers don’t want to come across as invasive or creepy with their advertising. For the most part, personalized advertising, remarketing and using people’s names in an email is all done to connect and engage familiarly. But as we all know from personal experience, it often comes across as ‘fake.’
The goal of purposeful personalization is to come across as genuine and authentic. In the relationship analogy we used earlier, be more like the friend that understands you and makes you smile because they’re genuine. You want your brand to be that familiar, reliable, and understanding friend.
Being more purposeful in your personalization strategy is first about understanding what people value and then delivering experiences that are better because of it. There’s no one-size-fits-all approach. Resonating with people means striking different chords in different categories. Your data must go deep enough to uncover what people truly want and their expectations in engaging with your brand and products.
research showed that trust increases in brands that deliver personalization in the following ways:
- In Automotive, it’s all about standing for what people believe in. To make people feel like the brand is for them, it’s important that it aligns with their values.
- In Travel, it’s about experiences that recognize individuality. People want brands to provide an experience that feels the brand recognizes them and understands how important they are.
- In Retail, it’s about making people feel the brand is built for them. They want to know you have the right products, high-quality merchandise and their favorite brands (if you’re a retailer), which go a long way in making a better connection.
- In Financial Services, it’s all about value, education and service. Make sure to provide good value and competitive pricing in addition to teaching people how to manage their finances and prepare for the future.
When you understand the kind of personalization that’s meaningful to people, and when you deliver that brand experience genuinely and authentically, you earn people’s trust and create a worthwhile exchange for the data you collect from them. That’s adding purpose to personalization.
It’s a balancing act — always err toward transparency
In another research study we conducted in 2019 (The core building blocks of a high-performing data strategy
), speaking to over 200 marketers and agencies in the US and UK who are striving for data-driven marketing excellence, 20% of those who are excelling at data-driven marketing are 4.5X more concerned
than other marketers about consumer backlash when it comes to protecting peoples’ privacy and data. These marketing leaders are putting their utmost focus on protecting people’s privacy — which includes the proper handling of data and respect for people’s right to share or withhold their personal data.
And here’s how they’re handling that:
- 64% are offering consumers incentives to share data.
- 59% are gaining a better understanding from their customers on how their data can be used.
- 59% are conveying to their customers the value they are getting in exchange for their data.
These marketing leaders know they must get smarter about realizing the promise of a better customer experience and the importance of trust. Privacy and data protection aren’t necessarily handcuffing them, but instead are a reason to think about how best to deliver value to their customers. Even as these leaders are more likely to use
customer data, they’re also more likely to be transparent about this use and put appropriate safeguards in place to protect these data.
Insights build better connections and genuine understanding
What can you do to better understand what people value and then action on it in a way that doesn’t compromise trust?
Search is the number one source of first-party data
that marketing leaders use to better understand the customer decision journey and audience intent. It’s a behavioral insights engine that produces a wealth of intelligence, and it’s how Microsoft Advertising has built an in-depth understanding of customer decision journeys across many verticals and product categories
To enhance your customer understanding, which can further impact your marketing, we combine our first-party data with your valuable (second-party) data and apply third-party data from trusted sources to create a more holistic view of the customer decision journey, including offline and online behaviors. All of this happens in a privacy-compliant manner. When machine learning is applied, it can pinpoint audiences better based on their intent. Personalization and targeting that feels more like serendipity!
Values drive value
With the basics of privacy covered, you can now do even more to build trust that creates business value. Purposeful personalization starts with trust. Be sure you’re delivering on marketing and advertising promises. Always respect your customers’ privacy and proactively solve their issues. Then you can build more authentic, personal connections by making sure that what you’re selling (and the brand you’re representing) is just right for them — available, genuine, and aligned with their values.
videos, guidance, and stories on how to start Marketing with Purpose.