Why new buying habits require constant
adaptation from brands
Consumers’ shifting buying behaviours present a commerce landscape that’s constantly in flux, meaning brands regularly have to reassess their sales and promotional channels.
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Marketers have had to rethink their promotional strategies during the pandemic and adapt quickly to how, when and where consumers are now purchasing items.
This was clear from a recent roundtable at Econsultancy Live focusing primarily on the media and technology sectors, sponsored by eBay Ads and held under the Chatham House rule. Senior marketers discussed how brands will be left behind if their marketing teams are not flexible enough to adjust to what is happening and they fail to get their messaging right.
The marketing director for a sports and outdoor clothing brand said it was vital different internal teams had an integrated approach if they are now selling more products direct to the consumer. He said marketers must also not become overly protective about whether sales come through physical shops or ecommerce.
“During the pandemic we have put much more of our budget into direct-to-consumer because if you can engage and drive the consumer online through social media, they are more likely to want to buy from you when they are in retail,” he said. “As brands we are always looking to improve that direct relationship and we know how important it is to use tailored messaging in our communication. Today you have to get your brand’s tone of voice right.”
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Streaming shifts channel mix
The panel also discussed streaming media and how this has changed the marketing mix during the pandemic. The growth in gaming, for instance, had made marketers think differently.
Statistics from Ofcom claim 62% of adults are gamers across different platforms, although among boomers television is still the favourite media activity for 39%, compared to 10% among GenZ.
The founder of a business and marketing consultancy said there is sometimes a disconnect between marketing leaders and advertising spend. One reasons is marketing teams do not always consider that most of the time consumers are using more than one device.
“We might be on Zoom but checking our mobile; or watching TV and also checking our mobile,” he said. “This offers some rich times where brands can test and learn. There is still too much guessing around what might work. What I call spray-and-pray.” He said advertisers should try a blended approach of old and new media so they get a better understanding of what is actually working for them.
“Often they want to get the best return as quickly as possible, and everyone is trying to stuff the bottom of the funnel and not concentrating enough on retention and reducing churn.”
The panel discussed how many brands brought promotions forward this year ahead of flagship events such as Black Friday. This was certainly true in the tech sector, where companies looked to steal a march on their competitors as everyone crossed their fingers for a relatively normal final quarter of sales for 2021.
Harmony Murphy, eBay’s general manager for UK advertising, said marketers were reacting to changes they made to their promotional investment and strategy when the pandemic took hold.
“Tech and telco brands are now running promotions throughout the year,” she said. “Consumers are buying items based on sentiment around a brand and thinking more about sustainability and the recycling of electronic goods. Think about the success of brands such as [online buyer and seller] musicMagpie.” Murphy outlined how eBay helps brands to run effective campaigns based on the time of day and other factors boosted by granular reporting of online consumer behaviour.
Shabana Chowdhury, eBay Ads’ brand partnerships manager, said more electronic and media brands are now being advertised online. The challenge in such a competitive market is that each seller has different KPIs for what they want their advertising to achieve.
“Some want lead generation, while for others it is about gaining high-value long-term customers,” she said. “Whatever the aim, brands must get the supply side right. There is no point running advertising if the supply is not there, so we work with sellers to ensure they understand this. We then help them to run the right offers. This might be promoted listings, daily deals or exclusive events.”
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Added value for the customer
Bish said the financial services brands doing a good job are those that unearth the customer insight and then work hard to deliver a consistent and improving service based on that information.
“They remain focused on what they do well every single day, and they keep nudging the customer, who is getting added value,” he said. “It’s also about relevant upselling. In retail banking it could be helping people with a current account and then a mortgage. It is about exceeding someone’s expectations in everything a bank delivers to them.” With the huge amount of customer data that does exist, the panel discussed why so much online advertising appears to be so poorly targeted. A brand’s customers can feel they are being chased around the internet by ads that are no longer relevant.
Harrison commented that when it comes to personalisation and advertising strategies based on data, there has been a resurgence of context. Brands now want to advertise to people when they are in the market for different products and services; this could be fashion or items for the garden.
“We have seen an increase from advertisers who know eBay has first-party data, and that we know who our users are and what they are doing – which is usually making a transaction,” he said. “It’s useful for financial services brands to see what their clients are doing in different environments. Context has made a resurgence.”
The roundtable also discussed the positives and negatives of the demise of the cookie and how the financial services industry might benefit from an increased focus on first-party data. One participant said it could mean a return to old-school brand advertising to generate awareness, and less of an obsession with ROI and tracking.
The head of marketing for the large insurance group was adamant that the changes do provide an opportunity for marketers. “It will be better for marketing’s reputation. It goes back to building the brand, and the brand meaning something again, rather than taking a price-driven, cookie-led and spam-led approach.” When it comes to customer experience, the question was also asked whether too many advertisers are using technology for the sake of it and not being innovative enough with the data insights being generated.
The skill is combining data with the human element and a personal touch which resonates with customers. Ultimately, this will help financial services brands form longer, more mutually rewarding relationships with them.■
"when it comes to ecommerce a brand is only as good as its products and delivery. If a consumer has one bad experience they are unlikely to use you again."
"if you can engage and drive the consumer online through social media, they are more likely to want to buy from you when they are in retail"
Testing is crucial
So how are marketers testing their promotions to see what works? The panel questioned whether too many brands are simply looking at which media create an instant brand uplift, or testing different creatives on single channel.
The business and marketing consultant believed marketers fall into two camps when it comes to testing. The first comprises those who chase anything that proves return on investment, while those in the second camp tend to be brave enough to discover how different channels might be working for their brand in different ways. He reiterated the need for marketers to focus more on loyalty.
“In 2022, advertisers will need to hire retention specialists to work out what is missing for consumers and how to engage or re-engage with them,” he said. “Marketers are realising that when it comes to ecommerce a brand is only as good as its products and delivery. If a consumer has one bad experience they are unlikely to use you again.”
The founder and CMO of an affiliate marketing company agreed but said focusing on attribution in marketing is nothing new. “However, only in the past few years have affiliate networks embraced it more effectively,” he said. “Intelligent advertisers realise they need to work in an integrated way with the best affiliates, including the SEO and email marketing affiliates who are using the same model.”
One panel member said retailers and big brands are realising that a good influencer can sway the market, and the attribution model allows everyone in the process to get revenue.
These are just a couple of possible options, however. With the numerous channels and tactics today’s brands are using to target their communications and promotions, it is clear that there can be no universal strategy. Only by looking at them in the broader context of shifting consumer behaviour, and taking into account both the short- and long-term impacts of marketing decisions on sales and customer lifetime value, will marketers be able to forge the right path forwards.■
