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BizReport : Advertising archives : April 03, 2017

Reports: Communication, Emotion key for engagement

Two new reports highlight the effort - or lack thereof - that brands are putting into properly communicating with shoppers.

by Kristina Knight

First, ICLP found that more than half of shoppers (53%) they surveyed would have more store loyalty if retailers communicated more effectively with them. Researchers also found that most (59%) would purchase more if retailers had a better understanding of their wants/interests. For example, nearly two-thirds (63%) say Amazon offers 'relevant recommendations' to them, but only one-third (33%) say Walmart offers relevant recommendations. Fewer than one-third reported that Big-Box stores including Target, Macy's, and Kohl's offered relevant recommendations.

"What we're seeing is that big-box retailers are still not putting sufficient resources behind personalizing the customer experience, and as a result, are losing out on valuable opportunities to generate more repeat customers - a key aspect of a strong bottom line," said Phil Seward, Regional Director, Americas at ICLP. "By failing to excel at the three tenets of customer loyalty - communication, customer understanding and rewards - even the largest and most powerful brands are at risk of losing business to smaller competitors that make their customers feel valued."

Meanwhile, Yahoo's new study indicates that campaigns could improve as much as 40% if brands put the right emotional undertone to the ads. Researchers found that reaching consumers when they're feeling upbeat resulted in 24% higher engagement.

"Digital marketers all appreciate the importance of reaching the right person, on the right device, at the right time. But the 'right time' should be about more than the webpage they're viewing at that moment. We should be striving to take a consumer's emotions into account as well. The idea of aiming to engage with consumers when they are feeling upbeat may seem obvious at first, but never before have we been able to appreciate the extent of the impact it can have on a campaign's success. Nor have we had concrete insight into when during the day this emotional state is most likely, and what types of marketing will benefit most. These new insights reinforce the importance of context in marketing, and take it to a whole new level," said Nigel Clarkson, Managing Director, Yahoo UK.

Other interesting findings from the Yahoo report include:

• 40% of US and UK consumers are usually upbeat
• US and UK consumers are the most upbeat between 11am and 2pm
• 71% say they are more likely to click on ads that are relevant to what they're doing

Tags: advertising, advertising trends, ICLP, loyalty marketing, Yahoo

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