DM Magazine November 2023

❱

7

❱

16

10 AI Terms Life Trends Everyone in 2024 Should Know PM 4 0 0 5 0 8 0 3

VOL. 36 • NO. 11 • NOVEMBER 2023

THE AUTHORITY FOR THE DATA-DRIVEN BUSINESS

THE UNIFIED EXPERIENCE

CUSTOMERS, CUSTOMERS, CUSTOMERS

Being data-driven is complicated.

We can help.

We’ll Help You Keep It Clean Dealing with bad data is a task no marketer needs on their checklist. Inaccurate, outdated, and duplicate records can build up in your database, affecting business decisions, the customer experience, and your bottom line. As the Address Experts, Melissa helps our customers improve their direct marketing efforts with the best Address Verification, Identity Verification and Data Enrichment solutions available. We validated 30 billion records last year alone, which is why thousands of businesses worldwide have trusted us with their data quality needs for 37+ years.

BAD DATA BUILDUP

DATA CLEANLINESS

Returned Mail & Packages

Real-time Address Verification

Missed Opportunities

Change of Address/NCOA Processing

Decreased Customer Insight

Geographic & Demographic Data Appends

Contact us for a Free Proof of Concept and ask about our 120-day ROI Guarantee.

Trust the Address Experts to deliver high-quality address verification, identity resolution, and data hygiene solutions.

Melissa.com

800.MELISSA (635-4772)

// 3

Vol. 36 | No. 11 | November 2023

PRESIDENT Publisher & Editor-in-Chief Steve Lloyd - steve@dmn.ca

talking points

❯4

Talking Points

DESIGN / PRODUCTION Jennifer O’Neill - jennifer@dmn.ca ADVERTISING SALES Steve Lloyd - steve@dmn.ca

ISTOCK/ PEOPLEIMAGES

TECHNOLOGY

CONTRIBUTING WRITERS Agneta Björnsjö Chandrashekar LSP Alex Naressi Katie Burke Gabrielle Poirier Mark Curtis Susanna Ray Nick de la Mare Stephen Shaw Jen Farr

❯ 20

LLOYDMEDIA INC. HEAD OFFICE / SUBSCRIPTIONS / PRODUCTION:

CRMs Remain Indispensable in Marketing

302-137 Main Street North

❯ 22

Markham ON L3P 1Y2 Phone: 905.201.6600

The Importance of Authenticity Over Performative Activism

Fax: 905.201.6601 • Toll-free: 800.668.1838 home@dmn.ca • www.dmn.ca EDITORIAL CONTACT: DM Magazine is published monthly by Lloydmedia Inc. DM Magazine may be obtained through paid subscription. Rates: Canada 1 year (12 issues $48) 2 years (24 issues $70) U.S. 1 year (12 issues $60) 2 years (24 issues $100)

❯8

10 AI Terms Everyone Should Know

MARKET RESEARCH

CUSTOMER EXPERIENCE

DM Magazine is an independently-produced publication not affiliated in any way with any association or organized group nor with any publication produced either in Canada or the United States. Unsolicited manuscripts are welcome. However unused manuscripts will not be returned unless accompanied by sufficient postage.

Occasionally DM Magazine provides its subscriber mailing list to other companies whose product or service may be of value to readers. If you do not want to receive information this way simply send your subscriber mailing label with this notice to: Lloydmedia Inc. 302-137 Main Street North Markham ON L3P 1Y2 Canada.

POSTMASTER: Please send all address changes and return all undeliverable copies to: Lloydmedia Inc. 302-137 Main Street North Markham ON L3P 1Y2 Canada

ISTOCK/JACOBLUND

@DMNewsCanada

NEXT ISSUE: The Future of Social Media Marketing

NOVEMBER 2023

❯9

The Unified Experience

ISTOCK/ DISOBEYART

Canada Post Canadian Publications Mail Sales Product Agreement No. 40050803

❯ 16

Accenture Life Trends 2024 Special Report DMN.CA ❰

// 4

talking points

The Winter 2023 LG Trends Report, powered by Pinterest Insights, reveals what Canadians are searching for in the lead up to the holiday season.

According to LG Electronics Canada’s (LG) latest Trend Report powered by Pinterest insights, Canadians have three Cs on their

mind as they get ready to embrace winter festivities and an action-packed holiday season: closets, cocktails and cleaning.

It’s no surprise that as Canadians pull out their winter sweaters and put away their summer shorts and t-shirts, they are turning their attention to storage. In fact, the Winter 2023 LG Trends Report reveals that searches for “building a closet” have increased by 43 per cent year-over-year. However, it’s possible that Canadians have more than storage on their minds as the seasonal switch also means having to refresh items that have been sitting in storage.

Closets are not the only thing Canadians are looking to renovate ahead of the holidays.

Pinterest has also seen searches for minimalist kitchen designs increase by 20 per cent since last year as Canadians look to simplify their kitchen spaces.

With all the hosting and time spent in the kitchen, Canadians are also looking to simplify the prep, which is why Pinterest is seeing searches for smart kitchens increasing by 11 per cent since this time last year.

Speaking of holiday beverages, alcoholfree is trending this year, with searches for holiday mocktails increasing by over 100 per cent year-over-year. Celebrity chef and LG brand partner Anna Olson is ready to take on winter hosting with delicious mocktail recipes, including her Gingered Apple Sparkler. This tasty, and versatile recipe can be served as either a mocktail or cocktail and combines a delectable mix of seasonal flavours. For a truly elevated mocktail or cocktail experience however, ice is a must.

With all the impending holiday hosting, it’s no surprise that cleaning is also topof-mind for Canadians. Whether it’s in preparation for a big holiday bash, or after the big event, Canadians will have their hands full with all the cleaning that comes with seasonal hosting. Therefore, it’s no surprise that searches for house cleaning tips have increased by 123 per cent since 2022.

From the closet to the kitchen to the laundry room, LG is delivering on its mission to provide Innovation for a Better Life this holiday season. LG worked with Pinterest to identify Pinterest search trends in Canada.

Each month, more than 482 million people around the world use Pinterest to plan the actions in their lives and come to the platform months in advance, which enables Pinterest to have an early look into what will soon be trending.

The Winter 2023 LG Trends Report can be accessed here. To learn more about the latest in LG’s home appliance innovation and to purchase, head to LG.ca ■■■■■■■■■■■■■■■■■■

BrandSpark International unveils the winners of the 2024 Most Trusted Awards, marking 11 years of recognizing the trust Canadians place in their chosen brands.

The awards are the result of an extensive national survey that garnered responses from over 25,161 Canadian shoppers, representing 181,000 individual brand evaluations across 262 diverse consumer product and service categories.

BrandSpark International, a leading research and consulting firm, continues its research of over a decade into understanding the role trust plays in which brands consumers choose. The 2024 winners, determined by the unaided citations of qualified Canadian shoppers, were revealed this morning at a prestigious event, held in collaboration with the Association of Canadian Advertisers at Corus Quay in Toronto, Ontario. Associate Vice-President of the BrandSpark Most Trusted Awards, Adam Bellisario, said, “We are honoured to celebrate the brands that have earned the highest consumer trust levels in the country”.

Since 2014, the BrandSpark Most Trusted Awards have recognized the brands that shoppers trust to deliver exceptional service and quality products, thereby establishing a strong bond with consumers. In a constantly evolving market impacted by economic disruption and shifting consumer behaviour, brand trust remains a beacon for consumers seeking reliability and consistency in their purchasing decisions.

In this edition, BrandSpark International broadened the scope of the BrandSpark Canadian Trust Study by expanding into new categories in segments including Automotive, Household Cleaning, Hospitality, and Petcare.

BrandSpark President Robert Levy said that “BrandSpark Most Trusted aspires to be the most extensive and credible list of brands trusted coast to coast in Canada”. BrandSpark issued an extensive list of Quebec-specific winners this year. This expansion ensures

// 6

talking points

Most Trusted Awards: The Interior Paint, Exterior Paint, and Exterior Stain categories were all won by Behr, sold exclusively in Home Depot, proving that national consumer trust can be won with exclusive distribution when you are providing a quality product that delivers value to consumers.

A Few Key Data-Driven Categories National / Regional Winner Airline Rewards Credit Card: Aeroplan Cashback Credit Card Provider: CIBC Direct Life Insurance Provider: Sun Life Loyalty Program: PC Optimum Parcel Delivery Service: Canada Post

a more detailed and diverse perspective on the brands that are resonating with the unique perspective of the Quebec market.

“Interestingly, out of a total of 262 categories, 44 categories had a different trust leader in Quebec”, said Levy.

BrandSpark has emerged as a definitive voice in understanding consumer trust, thanks to its extensive Study that annually collects over 100,000 open-text responses explaining why Canadians trust the specific brands they do. This database provides a unique window into the consumer psyche, revealing the drivers of trust in hundreds of categories.

This year, BrandSpark has taken a significant leap by developing AI-driven analytical tools to further explore this vast repository. This expanded analysis confirms that Canadian consumers continue to focus on fundamental aspects of trust, beginning with the value equation — a critical first step for any brand.

Achieving a deeper level of brand trust, beyond the tangible signifiers of value, involves a blend of recommendation, innovation, heritage, and value identification initiatives. The more elements a brand establishes, the stronger and more resilient the trust bond with its consumers becomes.

Navigating Inflation with Brand Trust. The BrandSpark Canadian Trust Study reveals that, despite the challenges posed by inflation, consumers prioritize product quality and are willing to pay a premium for brands that consistently deliver excellence. Brand names continue to dominate the list, demonstrating that established brands continue to deliver value to Canadians. BrandSpark Vice-President of Shopper Insights Phil Scrutton said that “new challengers are appearing in many categories, often online and at much lower price points, but the best brands are proving resilient with Canadian consumers when they focus on delivering and communicating the strengths that made them trusted names in the first place”. As consumer landscapes shift, brand trust emerges as a resilient force in maintaining consumer loyalty.

Notable Winners from the 2024 BrandSpark ❱ DMN.CA

Quebec Winner Airline Rewards Credit Card: Aeroplan Cashback Credit Card Provider: Desjardins Direct Life Insurance Provider: Industrial Allance Loyalty Program: PC Optimum Parcel Delivery Service: Amazon In the highly competitive telecom space, Bell was Most Trusted in all 5 communications categories studied: High Speed Internet Provider, High Speed Internet Provider for Wifi Connectivity, Home Phone Service Provider, TV Service Provider, Cellular Service Provider (Tie).

Sofina Foods won 4 newly studied categories including Prosciutto and Mortadella (San Daniele), Salami (Mastro), and Frozen Breaded Chicken Products (Janes).

Expansion into plant-based categories included studying Almond Plant-Based beverage and Plant-Based Yogurt, in addition to the repeating Oat Plant-based Beverage; Silk was the winner of all 3.

Loblaws Brands won a variety of grocery, loyalty, and financial categories, including President’s Choice (Private Label brand for value), PC Optimum (Loyalty Program), PC Financial (No Fee Credit Card), No Frills (Affordable Grocery Nationally and Ontario), Maxi (Affordable Grocery Store Quebec), Real Canadian Superstore (Affordable Grocery Western Canada).

Notable shifts included Fontaine Santé taking over top spot nationally in Hummus from Sabra, and Air Canada taking over Most Trusted Airline nationally from WestJet. Quebecers displayed different brand preferences from the rest of Canada in several categories such as Restaurant for Chicken (St-Hubert), Convenience Store (CoucheTard), Cat Litter (OdourLock), Plant-Based Meat Alternative (Yves), Retailer of Camping Gear (SAIL), Dog Shampoo & Conditioner (Hartz), Premium Ice Cream (Häagen-Dazs), Whole Grain Bread (St-Méthode), Face Primer (L’Oréal), Premium Ground Coffee (nonespresso) (Van Houtte), Online Retailer for Pet Supplies (Mondou), and Windshield Repair and Replacement (Lebeau).

The 2024 BrandSpark Most Trusted Awards winners are at www.BrandSparkMostTrusted.com ■■■■■■■■■■■■■■■■■■

McDonald’s launched its Season of Giving, a series of meaningful moments to thank the people and organizations that help drive impact in the communities they serve across Canada.

McDonald’s Canada and its independent franchisees are proud to feed and foster the communities they serve. This program includes a series of moments that spotlights and shows appreciation for the local organizations, guests and franchisees, who put in the effort to help make meaningful impact in their communities that goes beyond the restaurants.

McDonald’s Canada and its independent franchisees are helping host the Season of Giving from British Columbia, Yukon, Ontario and Quebec to Nova Scotia, building on the strong connections many restaurants have with local organizations that address specific community needs, like running local food drives to gather non-perishable supplies for local Food Banks Canada locations and bringing wellness supplies and lunches to Ronald McDonald House Charities (RMHC) across the country.

McDonald’s became part of Canada’s community since the first restaurant opened in 1967 and is committed to continue helping people in Canada with meaningful partnerships and programs. Through its partnership with Food Banks Canada, McDonald’s Canada and its independent franchisees will donate 500,000 meals to Canadians in need this holiday season.

“Over a million guests come through our doors every day, not just for the food, but because of shared community connections,” said Michele Boudria, President and CEO, McDonald’s Canada. “It’s about so much more than a burger to us. It’s about feeding and fostering community, and for us and our independent franchisees, that means supporting programs and initiatives that care for Canadian families in need, help reduce food insecurity and help in times of need.”

McDonald’s Canada is also the founding and forever partner of Ronald McDonald House Charities® Canada (RMHC®) and is committed to supporting families with sick children. Guests can support RMHC in their community at participating restaurants this holiday season (and every other day of the year too), by including donating at the kiosk or coin boxes, ‘Round up for RMHC’ on any order, and through the purchase of Happy Meals and RMHC Cookies.

“Whether through supporting the local NOVEMBER 2023

// 7

KICKER

Canadian kids are being invited to help make the world a better place by imagining and designing the car of the future.

Ronald McDonald House, seasonal food drives and donations, or any number of other programs, our independent franchisees are truly part of the fabric of the communities they serve 365 days a year,” said Gemma Hinksman, Senior Director, Canada Impact Team, McDonald’s Canada. “The Season of Giving shines a spotlight on this great work and every member of our communities who helps make it happen, with the hopes of inspiring even more impact.”

To learn more about McDonald’s Canada’s supports the communities where we operate from coast to coast to coast, visit the McDonald’s Canada Community Connection page or the Food Banks Canada website.

■■■■■■■■■■■■■■■■■■

Athlete Tech Group, a Canadian sports ed-tech leader, has forged a groundbreaking partnership with Seaford Pharmaceuticals.

This collaboration is claimed to herald a new era of athlete education and empowerment in the dynamic landscape of digital transformation and AI. Athlete Tech Group’s initiative extends beyond the scope of traditional sports marketing. It equips athletes with digital competencies critical in today’s AI-dominated job market, fostering personal brand development and professional growth.

This collaboration aims to set a new standard in Canadian sports marketing. It exemplifies how sports endorsements can evolve into educational platforms, transforming athletes into ambassadors of knowledge and digital proficiency, readying them for varied career paths in a fast-evolving global workforce.

Since the NIL (Name, Image, Likeness) rights were introduced, there’s been a significant shift in sports marketing. American athletes have already tapped into this potential, generating over $917 million in its first year.

Athlete Tech Group is now bringing this transformative model to Canada with its ‘learn-to-earn’ approach through the Training NOVEMBER 2023

Ground platform. This innovative strategy is more than a link between athletes and brands; it equips athletes with essential digital skills, preparing them for the AI-driven workforce. By leveraging athlete influence, which surpasses that of typical influencers, this model not only benefits marketing departments with impactful brand promotion but also aids HR departments in diversifying and enriching their talent pools, preparing for a future where skilled, versatile individuals are increasingly valuable.

The #IronDriveMyPerformance campaign, featuring Canadian athletes from schools such as McMaster, Ottawa, Humber, Waterloo, Mohawk, and Laurier, epitomizes this innovative approach. These athletes are more than influencers; they are educators and advocates, raising awareness of iron and anemia deficiency through personal experiences, and leveraging social media and virtual webinars to effect positive change.

Polyride Fe Ultra’s high iron content and unique formulation catering to diverse dietary needs is pivotal in this campaign. It serves as an educational tool, enabling athletes to spark conversations about health and wellness, making a significant contribution to public health education.

Paola Paves, the Marketing Manager at Seaford Pharmaceuticals, shares her insights: “Crafting an impactful iron deficiency awareness campaign was more than just a marketing initiative—it’s been a personal journey. As a health-focused marketer, I find this cause is close to my heart. It’s a testament to shedding light on an overlooked issue. Beyond products, it’s about making a difference in the lives of those like me, who understand firsthand the impact of this condition. Inspiring others to raise awareness is key to creating meaningful change in people’s lives.”

Athlete Tech Group is a visionary Canadian sports ed-tech company, dedicated to bridging the gap between athletes and the evolving workforce. Through Training Ground, it connects athletes with brands and equips them with essential digital skills for the future.

■■■■■■■■■■■■■■■■■■

The 2024 Toyota Dream Car Art Contest encourages kids to grab their pencils, crayons or paint brushes to put their innovative designs on paper. As the world continues to navigate through social and environmental challenges, we turn to the next generation — our children and youth — to bring forward their innovative ideas and inspire us to make some necessary changes.

Over the past few years, Toyota’s Dream Car Art Contest has evolved from a colourful visual arts talent competition to a global platform for the world’s most imaginative kids to bring forward their world-changing ideas. Children are encouraged to explain the innovative ideas they’ve expressed with their artwork. Does it help save our oceans or environment? Does it help people move from one place to another? Does it use a new renewable source of energy? Participants will need to tell the judges what they’ve drawn, what it does and why it matters.

Entries to this year’s contest can be submitted until January 12, 2024. Artwork submissions can be created using any type of hand-drawn medium — such as paint, markers, and crayons.

Three finalists will be chosen from each of the three age categories: ‘Under eight’, ‘eight to 11’, and ‘12 to 15’. The nine Canadian finalists will each win a $250 KiwiCo gift card.

Most importantly, finalists from Canada will be entered in the global contest hosted by Toyota Motor Corporation for one of three grand prizes valued at $5,000 USD. For more information about contest terms and conditions, including how to submit contest entries as well as examples of winning entries from previous years, visit https://www. toyota.ca/toyota/en/dream-car-art-contest DMN.CA ❰

// 8

TECHNOLOGY

10 AI Terms Everyone Should Know

BY SUSANNA RAY

T

he term “AI” has been used in computer science since the 1950s, but most people outside the industry didn’t start talking about it until the end of 2022. That’s because recent advances in machine learning led to big breakthroughs that are beginning to have a profound impact on nearly every aspect of our lives. We’re here to help break down some of the buzzwords so you can better understand AI terms and be part of the global conversation.

Artificial Intelligence Artificial intelligence is basically a super-smart computer system that can imitate humans in some ways, like comprehending what people say, making decisions, translating between languages, analyzing if something is negative or positive, and even learning from experience.

It’s artificial in that its intellect was created by humans using technology. Sometimes people say AI systems have digital brains, but they’re not physical machines or robots — they’re programs that run on computers. They work by putting a vast collection of data through algorithms, which are sets of instructions, to create models that can automate tasks that typically require human intelligence and time. Sometimes people specifically engage with an AI system — like asking Bing Chat for help with something — but more often the AI is happening in the background all around us, suggesting words as we type, recommending songs ❱ DMN.CA

in playlists and providing more relevant information based on our preferences.

Machine learning If artificial intelligence is the goal, machine learning is how we get there. It’s a field of computer science, under the umbrella of AI, where people teach a computer system how to do something by training it to identify patterns and make predictions based on them. Data is run through algorithms over and over, with different input and feedback each time to help the system learn and improve during the training process — like practicing piano scales 10 million times in order to sight-read music going forward. It’s especially helpful with problems that would otherwise be difficult or impossible to solve using traditional programming techniques, such as recognizing images and translating languages.

It takes a huge amount of data, and that’s something we’ve only been able to harness in recent years as more information has been digitized and as computer hardware has become faster, smaller, more powerful and better able to process all that information. That’s why large language models that use machine learning — such as Bing Chat and ChatGPT — have suddenly arrived on the scene.

Large language models Large language models, or LLMs, use machine learning techniques to help them process language so they can mimic the way humans

communicate. They’re based on neural networks, or NNs, which are computing systems inspired by the human brain — sort of like a bunch of nodes and connections that simulate neurons and synapses. They are trained on a massive amount of text to learn patterns and relationships in language that help them use human words. Their problemsolving capabilities can be used to translate languages, answer questions in the form of a chatbot, summarize text and even write stories, poems and computer code. They don’t have thoughts or feelings, but sometimes they sound like they do, because they’ve learned patterns that help them respond the way a human might. They’re often fine-tuned by developers using a process called reinforcement learning from human feedback (RLHF) to help them sound more conversational.

Generative AI Generative AI leverages the power of large language models to make new things, not just regurgitate or provide information about existing things.

It learns patterns and structures and then generates something that’s similar but new. It can make things like pictures, music, text, videos and code. It can be used to create art, write stories, design products and even help doctors with administrative tasks. But it can also be used by bad actors to create fake news or pictures that look like photographs but aren’t real, so tech companies are working on ways to clearly identify AI-generated content.

Hallucinations Generative AI systems can create stories, poems and songs, but sometimes we want results to be based in truth.

Since these systems can’t tell the difference between what’s real and fake, they can give inaccurate responses that developers refer to as hallucinations or confabulations — much like if someone saw what looked like the outlines of a face on the moon and began saying there was an actual man in the moon.

Developers try to resolve these issues through “grounding,” which is when they provide an AI system with additional information from a trusted source to improve accuracy about a specific topic. Sometimes a system’s predictions are wrong, too, if a model doesn’t have current information after it’s trained.

Responsible AI Responsible AI guides people as they try to design systems that are safe and fair — at every level, including the machine learning model, the software, the user interface and the rules and restrictions put in place to access an application. It’s a crucial element because these systems are often tasked with helping make important decisions about people, such as in education and healthcare, but since they’re created by humans and trained on data from an imperfect world, they can reflect any inherent biases. A big part of responsible AI involves understanding the data that was used to train the systems and finding ways to mitigate any CONTINUED ON page 21 NOVEMBER 2023

// 9

CUSTOMER EXPERIENCE

The UNIFIED

Experience

ISTOCK/JACOBLUND

If marketers hope to take complete charge of the customer experience, they must start out with one goal in mind: make a meaningful difference in the lives of customers. By knowing what truly matters to customers, they can lead the way in designing a signature experience that will create true brand loyalists.

BY STEPHEN SHAW

T

he billionaire grocery magnate Galen Weston only has himself to blame.

As head of Loblaw, the largest grocery chain in Canada, he made himself a celebrity pitchman for its various house brands, appearing on national TV commercials. It was a decision he came to regret.

When Canadians rose up in anger over runaway food prices this past year, they knew exactly who to blame: that preppy-looking guy they kept seeing on TV peddling Loblaw products — the scion of one of the wealthiest families in the world. A CEO who earns 431 times what an average grocery employee takes home in a year1, at a time when foodbanks have never been busier due to the soaring cost of groceries. Even more appalling is the fact that Galen Weston revoked the “hero pay” bump he gave his frontline workers during the height of the pandemic. And then to prove he is completely out of touch with the hostile public mood, he had the insensitivity to invite his 15 million PC Optimum loyalty club members to freely donate their own hard earned points to food banks.

So Galen Weston has deservedly become the most reviled business leader in Canada.

NOVEMBER 2023

The Loblaw Board, on the other hand, is absolutely delighted with him. In 2022 the company generated a total shareholder return of 17 percent. Under his watch profits have doubled, leading most people to suspect that Loblaw, along with the other two major grocers, Metro and Sobey’s, are hiking prices way above cost, while blaming suppliers for the price inflation. Yet according to an investigation by the Toronto Star, the top three supermarket chains, which control 60 percent of the grocery trade, are using their commanding market position to jack up prices more than necessary.2 But it is not just price gouging that has the public riled up.

Five years ago Loblaw confessed to being part of an industry-wide scheme to fix the price of bread over a 14-year period. They slipped out of the government’s noose by agreeing to give all of their customers a $25 gift card as atonement. That was when the public first got a sense that Loblaw was not on their side.

Despite their misgivings food shoppers have flocked to the discount store banners owned

by Loblaw in search of affordable prices. But the product prices between banners, and even between stores, can be strangely different for the very same

brands. Often in-store price signage is missing — or there are price discrepancies between the promoted price and what gets actually rung up. Heavy handed security measures to deter theft leave shoppers feeling like criminals. Stale dated food is left on shelves. And the company is forcing shoppers to use selfcheckout by reducing the number of cashiers, deliberately creating longer queues in the regular checkout lanes. Shoppers who do have questions or complaints struggle to find knowledgeable staff available to answer them, and those employees are so oppressed that they are mostly indifferent to customer concerns.

All of that adds up to a dispiriting and frustrating store experience which grocery shoppers have come to dread. Yet Loblaw and the other grocers can live with their rock bottom Net Promoter Score3 ratings (Loblaw’s is a negative 4) because profits have never been higher. And profitability, in most large public companies today, is what really matters. So even though Loblaw’s professed purpose is to help “Canadians Live Life Well”, claiming it makes “good food affordable”, their actions suggest otherwise.

It is exactly that kind of double speak — saying one thing, doing another — paying lip service

to customer care — willfully skirting the law while trying to come across as a good corporate citizen — mistreating employees while praising their virtues as pandemic heroes — that enrages people. And the fact is, customers have no choice but to shop at these corporate goliaths: the smaller independent grocers, which are usually more customer friendly, have either been squeezed out of the market, or been swallowed up by one of the major chains.

The growing public anger at being abused applies to many other industries as well: airlines, telcos, banks, insurers, and more. Think about those unconscionably high service charges by banks versus the miserly interest rates they offer.

Or the incentive deals used by telcos to ensnare new customers versus what loyal customers are forced to pay. Or the time it takes to hunt down sales associates in perpetually understaffed stores. Or the caste system that now exists on planes along with capricious flight cancellations and delays, surly flight attendants, cramped seats and larcenous extra fees.

How about everyone’s biggest gripe: finding an actual contact number to call in the event of a problem — and even if you find one, being subjected to a punishing hold time before you actually DMN.CA ❰

// 10

CUSTOMER EXPERIENCE connect with a live agent whose job depends on getting you off the line as fast as possible.

No wonder people are fuming.

And marketers can no longer shrug these problems off as someone else’s job, not as long as they aspire to take charge of the entire customer experience.

Radical Transformation According to the latest Customer Rage Survey, customers are experiencing a greater incidence of product and service problems than ever before, double what it was in 1972 when the survey first appeared4. What really upsets people is the effort they have to go through to get their complaints resolved. Mounting rage over poor service is spilling over into public displays of uncivility, as customers take out their repressed anger on store associates and other front line staff. And people are certainly more prepared than ever to voice their exasperation on social media.

Those findings are echoed by the American Customer Satisfaction Index (Figure 1) which analyzes the performance of 400 companies in 47 industries. Since 2019 there has been a sharp decline in customer satisfaction, with 80 percent of companies failing to increase their satisfaction score since 2010. In 2022 satisfaction fell to its lowest level in two decades, recovering only marginally in the second quarter of this year5.

Forrester’s Customer Experience Benchmark Survey also reports

a steep decline in CX quality. The Canadian version of the survey, which is based on 101 brands across nine industries, found that average CX quality among Canadian brands in 2023 fell for an unprecedented second year in a row (just as it did in the U.S.).

CX quality in Canada is now at its lowest point since 2016.6 How is it possible that with all of the attention paid over the past couple of decades to the importance of a great customer experience — all of the countless books and seminars on the subject, all of the proselytizing by the management consultants, all of the “we care” proclamations by companies, all of the “Please tell us how we did today” surveys, all of the studies showing the undeniable correlation between customer loyalty and market performance — that CX quality is actually getting worse and not better? Even more baffling is that according to a recent Dentsu study, 87 percent of CMOs worldwide agree that brands are now built through experiences.7 Part of the problem is that customer expectations keep rising faster than companies can keep up. Part of it is that companies are still organized vertically while customers interact with them horizontally. Part of it is related to a lack of systems integration and the glacial pace of digital transformation. But the main reason, at least according to Forrester, is that just three percent

of companies are truly “customer obsessed”. Which means that for almost all companies, it is business as usual. Instead of recognizing customers as an asset, whose value appreciates over time, they view them as interchangeable. Serving customers is thought of as a cost of doing business, instead of the reason those companies are in business.

To be truly “customer-obsessed” means rethinking from scratch how the company conducts business. Merely papering over the cracks just buys time. Solving complaints faster just soothes the already disgruntled. And while eliminating pain points is critical to stem customer attrition, it does nothing to address market differentiation and growth.

Any attempt to provide an exceptional experience — one that stands out from the competition — one that is memorable — one that earns rave reviews and not rage reviews — demands an enterprisewide effort to transform the culture of the company, its processes, its structure and its technology — all at the same time. That’s a tall order even for the most zealous proponents of change. The company has to be brave enough to pursue radical transformation. It has to funnel as much operational budget as it can afford into unifying the end-to-end experience, while fixing the most bothersome causes of dissatisfaction; at the same time it must come up with innovative ways to create new value for customers

Figure 1 - Since 2019 there has been a sharp decline in customer satisfaction. ❱ DMN.CA

that will leave them feeling excited about what comes next.

All of that starts by coming up with a compelling CX vision and transformation charter that spells out how life will be different for the customer: Easier, more convenient, more rewarding, all of that for sure, but even more audacious: serving as a difference maker. Helping people overcome the day-to-day problems they are grappling with. Making their lives more enjoyable. More fulfilling. More joyful even. That vision should be consistent with the purpose and values of the brand. And everyone should be eager to embrace the need for transformation because it will lend meaning to their work. “The fastest way to get customers to love your brand is to get employees to love their jobs,” says Salesforce’s top CX expert Tiffani Bova.8 The group best positioned to lead CX transformation is marketing. It is marketing’s job to make customers feel proud of their relationship with the brand.

The brand should be a joyful part of people’s lives — something they can’t live without — something they will go out of their way to buy — something they would miss if it ever disappeared. That is the true definition of loyalty.

As leading CX expert Jodi Picoult says, “Customer Experience is how people feel about their interactions with you”.9 A Signature Experience The feelings people have toward their interactions with airlines these days is anything but joyful.

Miserable might be a more apt description. And it is not just that airlines seem to go out of their way to treat economy class passengers as cargo — on top of exploiting regulatory loopholes to deny them flight refunds for the flimsiest reasons (e.g. “circumstances beyond our control”) — it is the insouciant attitude that goes with it. Consider the massive backlog of unresolved passenger complaints that have flooded the Canadian Transportation Agency over the past year, averaging more than 3,000 per month. Airlines also make it impossibly hard to reach a customer service agent, as though that is the last possible outcome they want, preferring to deflect NOVEMBER 2023

// 11

CUSTOMER EXPERIENCE calls to a disembodied and rarely helpful chatbot. But that just makes irate customers even more irate.

There was a time, of course, when airlines took care to fuss over all of their passengers, the so-called “golden age of flying”.

Everyone was treated with respect and dignity. Meals were even served on real china with cloth napkins. Flying felt exotic — something you looked forward to — a treat. Granted, it was more expensive to fly compared to today but that was due mainly to the smaller passenger capacity of planes and the nascent state of aviation at the time. Air fares were controlled by the regulatory authorities who viewed airlines as a public utility operating on behalf of the common good. The two major airlines at the time, government-run Air Canada and privately-owned CP Air, were granted exclusive routes and assured of a reasonable profit as long as they provided adequate regional service.

Deregulation caused all of that white-glove treatment to crash to the ground. Ticket prices nosedived as the skies filled with an emerging class of low-cost carriers, many operating on shoestring budgets, who were more like an airborne bus, wooing the “friends and family” segment of the population with cheap fares. The major carriers swung their attention to the more lucrative premium fliers, particularly the “road warriors” traveling on business. To keep them from chasing the best fare, they introduced frequent flyer programs, while stripping away perks from everyone else. They began to cram as many passengers on to planes as possible, shrinking the available seat space to make room, while cutting back on amenities and tacking on all kinds of extra fees. Now there were two classes of passengers: the type who could afford to travel in comfort, and everyone else.

That is, until Porter Airlines came along.

Porter began operating in 2006 as a short-haul carrier, offering a more “refined” flying experience at competitive fares. From the start, the goal was to make air travel more humane again. “The Porter experience was certainly NOVEMBER 2023

considered in great detail before we ever started flying,” Robert Deluce, the founder, has explained. “Our ‘Flying Refined’ tagline emphasizes the fact that we strive to restore a certain level of dignity to air travel for all of our passengers.”10 Passengers rave about their experience, every moment of it, from the time they step into the lounge area, to the spaciousness of the seats, to the complimentary flight snacks, to the throwback uniforms worn by the friendly flight attendants. Best of all, no middle seats! That’s why it has the fewest complaints per 100 flights of any airline in Canada (Figure 2).

So why did Air Canada and West Jet — whose NPS ratings are as low as you expect them to be, in the low teens — not jump at the same opportunity to satisfy the needs of the majority of fliers? For the same reason Loblaw does not: they are not “customer-obsessed”.

All they care about is maximizing the profit margin on an occupied seat, not making the flight experience less of an ordeal.

Porter has made the travel experience more joyful for passengers and now it is building on that reputation for refined service by expanding the number of routes it flies across North

is not much different. Customers are unlikely to defect just for the sake of switching unless they’re presented with a much better deal.

Parity can lull companies into a feeling of false security. It usually takes the arrival of a disrupter brand — like Porter — to shake them out of their complacency and create a sense of urgency. Even a sharp drop in the NPS score may be shrugged off as a temporary blip — until the other key indicators, like revenue growth and market share, start to fall as well. By then it might be too late to act: Customers may already be heading for the exit.

Figure 2 - Porter Airlines gets the fewest complaints of any airline, testament to its reputation for refined service.

“We are very much in the customer service business”, DeLuce says. No wonder Porter is only one of two airlines in North America to be awarded a four-star rating by Skytrax (the other being JetBlue). And recently it was chosen as the winner of the 2023 Passengers Choice Awards for Best Cabin Service in North America.

The gap in the market that Porter identified was ripe for harvesting: harried travelers fed up with the shabby treatment they were getting. “Why would you go after Air Canada on what they do best?”, says the current CEO Michael Deluce. “You go after them on what they do worse, which is economy, which is 90 percent of people”.11

America. If it succeeds in drawing away even more passengers from the other airlines, it will have proven that the best way to grow is by delivering a signature experience that transforms the expectations of customers.

True Brand Loyalty For a start-up company like Porter, the opportunity was clear: win over disaffected travelers by offering them a distinctive flying experience they could not get elsewhere. For incumbents, however, the business case is rarely as clearcut. For one thing, the potential payoff is not always apparent. A low NPS score, by itself, is not enough of a hazard signal if the industry benchmark

Most companies have no clue what a one-point increase in NPS is even worth — nor have they bothered to figure out the halo effect on the key revenue drivers.

So that makes it tough to make the argument for a substantive investment in transformational change, especially when the CFO is demanding to know the expected ROI. Presenting market studies proving that CX leaders perform better than laggards will never be enough to convince a skeptical CFO, not even if NPS’s originator Fred Reichheld showed up in person to plead the case.

Yet most people say, according to an oft-cited Salesforce study12, that the quality of the customer experience is just as important DMN.CA ❰

// 12

CUSTOMER EXPERIENCE

as the products and services a company offers. Improving that experience should logically translate into an across-the-board gain in all of the key customer measures that drive company revenue: share of wallet, average annual spending, retention, and cross-sell ratio. And since 80 percent or more of revenue can usually be attributed to existing customers, making them happier is the surest path to profits (Figure 3).

If the brand experience consistently pleases customers — makes them feel the company always acts in their interests — makes them feel treated fairly and honestly — makes them feel special — they will gladly buy more, pay more, more often.

They will forgive the occasional screwup. They will be more likely to recommend the brand. They will be proud members of the brand community. Their willingness to remain loyal, however, is directly related to whether they believe the brand cares more about them than making the next sale.

True brand loyalty lies at the intersection of three dimensions: the willingness to re-purchase the brand; trust in the brand always doing the right thing; and the degree of brand devotion and enthusiasm (Figure 4). Customers who are passionate enthusiasts have an emotional connection to the brand — will go out of their way to buy it. To earn that heartfelt loyalty, customers must feel their lives have been improved in some way. They expect exemplary service and support — prompt delivery of orders — immediate answers to questions ❱ DMN.CA

Figure 3 - A customer experience that exceeds customer expectations leads to greater brand commitment and buying which ultimately drives market success.

Figure 4 - True loyalty lies at the intersection of three dimensions.

— products that work as promised — “no questions asked” refunds — complaints speedily and amicably handled. Anything else is a broken promise — a letdown — a reason to look elsewhere.

One company that understands the connection between a superior experience and true loyalty is Ottawa-based Lee Valley Tools. The family-owned outfit started out as a niche mail order cataloguer for woodworking tools in 1978 and has grown into a thriving multichannel retail business offering a vast array of tools and gadgets. The devoted customer base loves the company for its brand ethos which makes fairness and integrity core values. The company has a policy not to pay any employee more than ten times the wage of the lowest paid person because, “It’s not about money; it’s about your life and what you enjoy doing” says the CEO Robin Lee13 (in stark contrast to the profit-obsessed Galen Weston). As a result, his extremely dedicated staff go the extra mile to offer the best service possible which is why customers adore the brand.

Another iconic Canadian brand revered for its customerobsessiveness and service excellence is Four Seasons Hotels.

As the founder Isadore Sharp once explained, “Customers value luxury, but that didn’t necessarily mean elegant surroundings or gourmet meals. When we looked closely, it became clear that the greatest luxury for our customers was time. And service could help them make the most of that.”

Often cited by Fortune magazine

Figure 5 - A CX (Loyalty) Score can help track the progress a company is making toward becoming more “customer-obsessed”.

NOVEMBER 2023

// 13

CUSTOMER EXPERIENCE as one of the best companies to work for, Four Seasons gives its front-line staff a sense of purpose and the authority to do whatever it will take to please guests, “turning mishaps into new service opportunities”, Sharp has said. “Then, what the customer remembers is not the complaint, but the outcome.”14 The CX Score Without knowing how enthusiastic customers are, it would be easy to mistake a habitual buyer — someone who buys out of reflex rather than conscious choice — a loyalist. The same goes for passive buyers just waiting for the next best offer to come along — or customers whose loyalties have been locked in through a rewards program of some kind. That is why NPS must be augmented with other complimentary measures to gauge the true loyalty of customers, not just whether they are willing to recommend the brand. Those measures should roll up to a standardized beacon metric that goes beyond NPS — a composite CX score made up of multiple indicators such as degree of commitment, trust, advocacy, and brand preference (Figure 5).

By displacing NPS as the go-to loyalty benchmark, the CX Score can help to track the progress of the company as it strives to become more “customer-obsessed”. And by figuring out the exact statistical correlation to actual purchase data, marketers can calculate the incremental value of a one-point gain in loyalty. So when the CFO asks that tricky ROI question, marketers have the answer.

To earn a top CX score marketers must understand what matters to customers. They must be able to identify the satisfaction and loyalty drivers and map them to customer expectations. This is usually visualized in the form of a 2 x 2 matrix (see Figure 6), with the vertical axis representing “Satisfaction” and the horizontal axis “Importance”. In the upper right quadrant are all of the key drivers that the company is satisfying; in the bottom right quadrant are all of the ones that customers rate as unsatisfactory and merit priority attention.

Beyond identifying the most urgent fixes, marketers also need NOVEMBER 2023

Figure 6 - By mapping customer satisfaction to expectations, marketers can quickly zero in on fixing the most serious pain points. to probe for new ways to create value for customers; otherwise brands will be seen as substitutable — a commodity — banished to the periphery of people’s lives.

However, value is a slippery word: it entirely depends on the criteria customers apply. Is it just the trifecta of product quality, on-time delivery and empathetic service? Or is it something more abstract, like status (Rolex), sustainability (Patagonia), peace of mind (FedEx), simplicity (Intuit), whimsy (Virgin), or opulence (Four Seasons)? Almost all of the top brands have a single recognizable quality they are known for — an emotive word that springs immediately to mind — which serves as a springboard for innovation.

To inspire value creation marketers need to first ask themselves: What do we want our brand to stand for in the minds of our customers? How can we embed the brand in their lives?

What combination of functional superiority and a distinctive experience is essential to being seen as a brand they can’t live without? The best loved companies have figured out how to wrap an experience around their products which is why Apple has become such a cult brand. It has created an enclosed ecosystem that fully integrates its own hardware and software, enriching the lives of customers in ways they could

never have imagined themselves.

Even the once neolithic car companies, long wedded to the “buy and drive” dealership model, are beginning to embrace the Apple formula for success. In the automotive sector, according to McKinsey, “The new battleground is customer experience”15. The car makers are trying to transform themselves from OEMs reliant on a dealer network to mobility services providers powered by digital technology. The car companies not only want to make vehicle shopping frictionless and haggle-free; they want to enrich the ownership experience just like Apple. Making money will no longer be limited to selling vehicles off the dealer lot; it will be supplemented through digital subscription services offered throughout the ownership period.

Moments of Truth The main mission of marketing must be to create a more unified and connected experience for customers that will enhance their lives. The process should start with an exploration of customer expectations — figuring out what people really value — which forms the foundational insight for experience design. Customers will certainly be quick to share what they absolutely loathe about the current experience — often in the bluntest terms, usually from the fiercest detractors — helping to

identify the most egregious sins.

Even a quick scroll through Reddit posts will expose how the public feels in general (e.g., “Almost time to get the pitchforks out and march on the Weston mansion”).

Harder to tease out of customers is what an ideal experience looks like from their perspective.

Customers are limited in their thinking to their own personal frame of reference. Their expectations are shaped by the recognized NPS leaders (e.g., Apple, Amazon, Netflix, USAA, and Tesla). Just by comparison to those companies, customers know where the brand experience is falling short. But it is much harder for them to come up with suggestions beyond what they already know to be possible. Asked to evaluate potential solutions, they can certainly provide valuable input — just not come up with unique ideas on their own.

Instead of asking customers “How can we improve your experience?”, marketers should probe for the definitive moments that matter most to them (like first-time use of product). This line of inquiry has nothing do with their experience using a specific channel — that questioning can be left to the standard NPS surveys which typically follow a service encounter of some kind — and more to do with how much effort is required to move from one stage of the customer journey to another (think about Amazon, a few clicks and the order is on your doorstep the next day).

Armed with an understanding of the make-or-break “moments of truth”, marketers can begin to reimagine the experience from the viewpoint of the customer, using storyboarding to bring to life various scenarios and possibilities.

At this point marketers should be less concerned with how quickly the phones get answered and more about ways to dramatically improve the CX score. How can they create as many “Wow!” moments as possible that will leave customers feeling they never want to buy from anyone else?

How can they turn “passives” into “promoters”? How can they minimize the loss of customers?

All of this reimagining should revolve around one goal: making a meaningful difference in the lives DMN.CA ❰

// 14

CUSTOMER EXPERIENCE

Figure 7 - The strategic framework for a Unified Customer Experience is the Customer Lifecycle. of customers.

The CX strategy emerges out of all of this ground work. That strategy should be fully aligned with a corporate vision that is a higher order declaration of what the brand stands for. Sometimes called a “Brand Spirit Book”, this artifact serves as a manifesto for change, with the customer as the hero of the story. The aim is to humanize the brand — explain in an emotionally compelling narrative why customers are better off with the brand in their lives.

It should inspire and animate all internal stakeholders — make the brand relatable — explaining that the brand is not simply different but one that makes a difference.

Above all, this vision statement must appeal to the heart, so that everyone in the organization feels part of a larger cause — gives their work meaning — puts the purpose of the company in a broader social context.

If the brand story is the “reason why”, the CX strategy explains how to operationalize that vision.

It should offer a holistic picture of a more Unified Experience, not ❱ DMN.CA

only describing what that means, but how the company will deliver on that objective. The strategy must show how the experience will be distinctive and superior to anything competitors may be offering, and why it will lead to faster revenue growth. And it must establish a set of guiding values and principles that will provide all managers, in every part of the company, a framework for decision-making (for example, giving front-line staff the latitude to make amends with unhappy customers). Finally, the strategy should be accompanied by a high-level roadmap that outlines the transformation priorities and initiatives based on their importance to the customer and the estimated degree of difficulty to achieve, accompanied by a projected timeline and milestones.

The Customer Lifecycle The strategic model for the design of a Unified Customer Experience is the Customer Lifecycle. There are four primary marketing goals wrapped around that lifecycle (see Figure 7): 1) Enhance the buying

journey; 2) Simplify the buying decision; 3) Enhance the postsale experience; and 4) Deliver relevant advice and help through continuous engagement.

In the initial stage (what Google famously coined the “Zero Moment of Truth”) buyers are trying to self-educate — reading reviews, scanning the discussion forums, digesting comparative facts, evaluating the pros and cons, comparing prices — their brand consideration set expanding or contracting based on what they learn. Marketers have to be mindful of how far along the path to purchase they are. The goal is to draw buyers into progressively deeper levels of discovery, being sure to pick up where the last interaction left off. Since first impressions are being formed on the fly, buyers must feel the brand is helping them make the best possible choice, which is why sharing is much more important than closing. Marketers need to ask themselves: How can we make potential customers better informed? How can we make them keen to learn more? How can we

be perceived as the brand best positioned to help them, now and in future?

In the next stage, after their preliminary research is done, buyers are ready to make a decision (the “First Moment of Truth”), having narrowed their options to a few brands that satisfy their checklist.

Marketers need to anticipate their objections and remove any lingering doubt, using explicit or implicit first-party data to personalize the messaging and provide whatever further proof is required.

Once buyers have converted into first-time customers, the marketing goal shifts from persuasion to relationship management. This is where marketers have traditionally struggled, since their budgets are often over committed to demand generation. First-time customers should be warmly onboarded and given all of the orientation instruction they need to make the best use of their product or service, including contact information so they can reach out to a real person if they run into trouble. That gets the relationship off to the right NOVEMBER 2023

// 15

CUSTOMER EXPERIENCE start, leaving customers feeling reassured they’ve made the right decision, and making their next purchase that much more likely.

Once repeat purchases have become a regular habit, active customers shift into the final lifecycle stage where marketers have an opportunity to secure a lifelong relationship. This is where quality of service is so important, ensuring that any time something goes offside (a delayed delivery, a faulty product, incorrect billing) the problem is resolved immediately. Then, as the relationship matures, customers will become more open to hearing about other products and services.

They will sign up to stay informed through personalized messaging and offers. They will subscribe to alerts and notifications. And they will become more willing to share their preferences, leading to a virtuous cycle of communications.

High value customers are made to feel pampered through special privileges and entitlements. And the most passionate enthusiasts are invited to join an advisory community where they can provide frank feedback and fraternize with other customers.

A Difference Maker The implementation details are left to the transformation phase, when a multi-disciplinary team (made up of designers, engineers, subject-matter-experts, amongst others) proceeds with the actual design work, using customer journey mapping to improve or redefine the customer experience.

Guided by the CX strategy, which has prioritized the high impact moments throughout the customer lifecycle, journey maps are diagnostic tools that are used in two ways: they visualize in detail what happens today as customers pursue a specific goal (like paying a bill online), while also providing thumbnail descriptions of their state of mind whenever they are thwarted by various roadblocks; they also serve as a template for mapping out an ideal experience along with how customers will benefit and the positive feelings that will evoke.

Ultimately, the job of the CX team is to make sure the end-toend experience is seamless across every touchpoint. That horizontal NOVEMBER 2023

Figure 8 - The CX Vision and Strategy lays out the conditions for success while prioritizing the major transformation initiatives to follow. design work, which usually crosses different departmental siloes, is divided into discrete but interdependent project tracks that have been prioritized according to customer desirability and feasibility. Often those initiatives can stretch into years of project work, especially if the experience gap between expectations and current state is closer to being a chasm, because it means tearing down legacy infrastructure and putting new technologies and processes in place (Figure 8).

Transformation on that scale — radical, enterprise-wide transformation that aims to change the culture and orientation of a company — can seem formidable — even unattainable.

It is not an overnight job. It takes a massive mindset shift and a steely resolve to overcome all of the obstacles: the inevitable pockets of resistance, funding shortfalls,

constrained resources, unforeseen landmines, management inertia, and sheer battle fatigue, just to name a few of the more common pitfalls. The risk is great that it will turn into a quagmire. Which is why most transformation initiatives of any ambition eventually lose momentum and fade into history.

That is why it is critical for the CEO to be the most enthusiastic champion of change — someone who won’t just mouth the words “We love our customers” at a town hall meeting, but who will mobilize the entire organization around the cause. A customer-obsessed CEO who will encourage change at every level of the organization.

A CEO who is not a profiteer but a humanitarian who wants the company to be a difference maker.

1. “No Shame in the C-suite”, The Toronto Star, April 5, 2023 2. “Supermarkets are hiking prices faster than necessary”, The Toronto Star, July 9, 2022 3. NPS is a customer experience rating system which asks customers “How likely are you to recommend us

to a friend or colleague?” and scores the answers on a zero-to-ten scale. The NPS Score is the percentage of customers who are promoters (9 or 10) minus the percentage who are detractors (0 to 6).

4. “As Customer Problems Hit a Record High, More People Seek ‘Revenge’”, Wall Street Journal, March 07, 2023 5. “The American Customer Satisfaction Index Experiences Largest Increase in 15 Years”, Yahoo Finance, August 8, 2023 6. “Forrester’s Canada 2023 Customer Experience Index: Brands’ CX Quality Reaches Its Lowest Point Since 2016”, Forrester Research, Forrester, June 20, 2023 7. CMO Navigator, Fall 2023, Dentsu 8. Tiffani Bova, “The Experience Mindset”, Penguin Random House, 2023, Pg.XXI 9. Jon Picoult, “From Impressed to Obsessed”, McGrawHill, 2022, Pg.8 10. “Customer Centricity Takes Flight at Porter Airlines”, Customer Strategist, Volume 3, Issue 1, 2011 11. “Why Porter Airlines CEO Michael Deluce sees clear skies ahead”, Report on Business Magazine, October 25th, 2023 12. Salesforce, State of the Connected Customer, 6th Edition, Pg.7 13. “The sharpest tool in the shed: How Lee Valley built a cultlike following”, Report on Business Magazine, May 25, 2023 14. “Isadore Sharp: We Hire for Attitude”, Insights by Stanford Business, February 01, 2010 15. “The new key to automotive success: Put customer experience in the driver’s seat”, McKinsey, November 2021

STEPHEN SHAW is the Chief Strategy Officer of Kenna, a marketing solutions provider specializing in delivering a more unified customer experience. He is also the host of the Customer First Thinking podcast. Stephen can be reached via e-mail at sshaw@kenna.ca DMN.CA ❰

// 16

MARKET RESEARCH

Special Report

T

he visible and invisible mediators between people and their world are changing. There are various layers that mediate between people and the way they live their lives, influencing what they think, how they interact, and how they feel within the world around them. Whether driving consumption, maintaining authority, progressing culture, or sharing information, organizations are part of a matrix of intermediaries on which economies are built. There’s undeniable fragility in the relationships between people and these influences because they’re changing. Some are emerging, some declining, some adapting — and all hold significance to people’s lives. This is putting society into a state of flux, where people are now deconstructing everything as they try to figure out who they are in the world. And that goes into the heart of Accenture’s Life Trends this year.

There’s always something sitting between people and the world around them. Whether it’s a tool, a story, a brand, or a person, external factors influence what they think, how they interact, and the way they feel as they move through life.

These trends explore the evolution of these factors — because it’s putting society into a state of flux. People are now deconstructing everything as they try to figure out who they are in the world.

New intelligence layers are emerging in digital interactions, while people are examining the consequences of past experiences. The harmony

between people, technology and business is showing tensions.

Accenture Life Trends identify and explore the various factors we expect will change the way people experience and interact with brands, organizations, governments and systems in the coming year and beyond. For this article and excerpt, we’re going to take a look at just one of the trends identified in the Report, which we recommend downloading and reading in full.

Where’s the love?

Necessary cuts across enterprises have shunted customer obsession down the priority list — and customers are noticing. For years, the correlation between customer experience and revenue growth inspired organizations to hold the customer at the center of every decision.

Now, economic considerations are forcing cuts throughout enterprises, driving friction between customers and brands across channels — in the form of price increases, quality cuts, illogical subscriptions, and poor customer service. Customers are noticing, and some feel hard done by.

The key question: How do brands keep their product in the basket in the long term? * Source: Accenture Life Trends survey, August 2023 ** Source: Accenture CxO Pulse survey, June 2023

What’s going on?

Businesses are scrambling to cut costs and protect profits against a strained economic backdrop. They’ve made tough decisions to

ISTOCK/ DISOBEYART

Accenture Life Trends 2024

survive, with one major consequence: the erosion of customer experiences. Like it or loathe it, consumerism is a socio-economic fact of life for billions of people, with much of their day-to-day experience influenced or mediated by consumer culture. The changes described in this trend are having a significant impact across multiple aspects of life, affecting how people feel every day.

Until recently, the direct link between profit and customer experience made the latter top priority, often at the expense of other factors.

Widespread digital adoption in the 1990s — particularly the internet and, later, smartphones — pushed focus onto experience, which hadn’t previously been emphasized by many businesses outside hospitality. Screen-driven interaction expanded design’s scope beyond physical and graphic design to include usability and desirability.

Decade of deconstruction of CXOs say they plan to raise prices to pass cost increases to customers. Forty percent of people worldwide think that many companies are prioritizing higher profits over better customer experience.

Pine and Gilmore’s seminal 1999 book, The Experience Economy, brilliantly captured this shift. Designers realized that a user-focused approach yielded the best results, and people began comparing everything to their best digital experiences, fueling liquid expectations.

Without profitability, organizations won’t survive long. As the economic climate sharpens investors’ focus, leaders are seeking

A Word from Accenture Song Accenture creates this trend analysis every year as a window into the interplay between people and their behaviors and attitudes to the world around them—be it business, technology, or other societal shifts. It’s now commonly accepted that customer-obsession is the best growth strategy. Superb customer experiences are expected. It takes meticulous orchestration to play a meaningful and relevant role in your customers’ lives.

However, customers are messy. They’re emotional and they’re changing faster than you can change your business, so keeping pace is a constant challenge. These trends examine these shifts and seek to help businesses define how to catalyze growth by staying relevant to customers—which is Accenture Song’s mission. ❱ DMN.CA

NOVEMBER 2023

// 17

MARKET RESEARCH ways to reduce expenses and increase operating margins across their business.

People feel the impact in multiple aspects of daily life, with many microdisappointments adding up to a big dent in their lived experience. It seems the promises of value, choice, ease and empowerment are being downgraded, and it stings.

For over a decade, brands seemed obsessed with their relationship with customers, flooding social media with relatable content in a tone of voice that drew people in. With unfathomably quick delivery, delightful personalization and customizable subscriptions, brands raised expectations to levels that were costly to maintain.

From there, customers came to expect brand relationships that far exceeded the transactional. That hasn’t changed, but the reality of what brands now offer is feeding a tension that shouldn’t be ignored and is manifesting in a few ways.

There’s evidence of brands deprioritizing customer experience, with some companies cutting quality or quantity but maintaining prices.

Some people understand—others find it dishonest.

Leading reasons why customers feel less valued: 47 percent poor customer service; 41 percent ignored feedback; 37 percent declining product quality; and 25 percent worsening packaging.

“Shrinkflation” describes a reduction in the quantity or size of a product, while retaining its price. An example is charging as much or more for a chocolate bar that looks the same but weighs less. This trade-off forces consumers to pay increasing prices for diminishing returns.

While this isn’t a new practice, the cost-of-living squeeze heightens consumers’ attention to value — and they can easily shout about it to alert others. Reddit community, r/shrinkflation, documents changes in sizing and quantity of products, and compares to the original.

A newer practice has been labeled “Skimpflation” by National Public Radio’s Planet Money in November 2021, describing a decline in the quality of service throughout the global economy, among travel companies, retailers and restaurateurs.8,9 It might mean swapping quality ingredients for cheaper alternatives, or compromising on quality-assuring manufacturing processes to save time and money.

As people’s wages aren’t rising in line with inflation, the drop in value for their purchase hits hard.

It’s not just sizing and quality — it’s also surge pricing in places like restaurants and bars, based on peak moments like major sporting or cultural events. Fixed pricing has evolved to dynamic models in places where people wouldn’t expect it.

Customer service is taking a hit, too. A third NOVEMBER 2023

The Five Trends:

People’s perception of purposeled initiatives in today’s context is becoming less favorable. While it may not be this simple, customers can find Where’s the love? Necessary cuts across it contradictory to see brands sinking enterprises have shunted customer money into surface-level support for obsession down the priority list—and a cause while shaving value off the customers are noticing. experience they’re buying. Further, many of these messages are transparently The great interface shift. Generative AI insincere attempts to co-opt a current, is upgrading people’s experience of the high-profile cause, which often doesn’t internet from transactional to personal, reflect the brand. enabling them to feel more digitally In extreme cases, these actions understood and relevant than ever. polarize and alienate customers. They perceive that brands use purpose Meh-diocrity. Creativity was once about the messaging to distract from measures to audience, but has become dependent on degrade their experience, helping to fuel playing the tech system. Is this what creative anger over such campaigns. stagnation feels like?

It’s particularly damaging brands with mass appeal, who risk millions of dollars Error 429: Human request limit reached. if they lose even a small percentage of Technology feels like it’s happening to customers. Whatever they do around people rather than for them—is a shift purpose, companies could attract beginning, where they regain agency over its criticism from somewhere. Solving this influence on daily life? is front of mind for CMOs, but is it too late to row back?

Decade of deconstruction. Traditional life Brands have long been on a customerpaths are being rerouted by new limitations, obsession bandwagon, earnestly lauding necessities and opportunities, significantly the importance of their customer shifting demographics. relationships. Now, people see them quietly reversing these promises and feel the impact on their finances and quality of life. Where’s the love that was such a of the respondents to Accenture’s global survey priority a short while ago? Brands will say it’s been difficult to get help from or even need new strategies to present their value, and a reach customer service agents in the past year, new way to define and develop their relationship and a National Customer Rage Survey revealed with their customers. that US citizens’ experience of dealing with The extent to which people feel these have companies over problems is getting worse. their best interest at heart: They’re unimpressed with lackluster resolutions This reveals a lack of trust across all sectors. and have become more aggressive.

The potential revenue loss for businesses What’s Next failing to manage complaints properly could At the center of this trend is a critical perception reach US$887 billion, up from US$494 billion problem: where companies see moves to ensure in 2020. brand survival, some customers see greed. Most When customer service falls short, the small brands do what they must to remain viable in stones most customers can afford to throw at a difficult economy, but customers who don’t big companies in a battle for justice will simply see behind the scenes often view those actions bounce off. Services are starting to emerge to differently. For customers, it doesn’t make sense support customers with their grievances, from when essential service providers publish record refunds for canceled flights to repairs under profits after hiking rates, and this heightens warranty. their suspicions that other price rises, or quality Once hailed as a source of recurring compromises, are intended to short-change them. revenue, subscriptions are becoming tedious Both brands and customers are having to customers, and uptake is slowing down to reduce costs. If brands continue to offer worldwide. People may become annoyed with customers less for more, resentment will quickly subscriptions for products or services that build and places like Reddit will become awash shouldn’t need regular renewal — in some with dissatisfaction, fueling a negative impact cases, the saving offered on subscription is on the brand’s long-term health, growth, and clear, making it galling to pay more for a logical viability. one-off purchase.

While consumer behaviors are complex, “Trying to leverage even more profit out of tweaking the dials on customer experience subscription services is a worrying trend and will impact brand desirability. Customers will I hope there is a consumer backlash against it,” always try to create their desired lifestyle. When says Jack McKeown, motoring editor at The finances are squeezed, their brand loyalty will Courier. become weaker, so price and value become the

1 2 3 4 5

DMN.CA ❰

MARKET RESEARCH

❱ DMN.CA

// 18

NOVEMBER 2023

MARKET RESEARCH

// 19 most influential levers. A major brand challenge becomes how to keep their product in people’s basket.

When pushed hard enough, more people might turn to illegal means to acquire what they want for a price they can justify.

IPTV services, an illegal form of content piracy, have grown in popularity across Europe in response to prohibitively expensive subscriptions for sports programming.

While users may be relatively few, these behaviors often prompt larger shifts to combat them, just as Napster, a workaround for music fans, inspired the worldwide streaming model in place today.

Customers will continue to budget (as they’ve always had to do) — it’s almost inevitable that they’ll cancel subscriptions, cut back, trade down if they don’t feel the value. As they do, a new risk arises: the flip side of the concept of liquid expectations, “liquid suspicions” describes the idea that when customers are let down by one brand, they’ll be wary of all others.

Meaningful, competent customer experience will probably become a critical factor that defines their relationships with brands. They will only be persuaded by initiatives that earn trust through tangible support and stability. Discrepancy here is most evident in the declining efficacy of cause-led marketing, where risk of backlash can outweigh possible gain. For some brands, what was once a differentiator is now a hazard.

We expect to see the essentials of great marketing returning to brand strategy. When effectively managed to serve the customer, the four Ps of marketing — price, product, promotion, place — are a winning formula for growth, and a reminder that growing a brand means balancing value with sales volumes. Marketers appear to have been so focused on promotion, that the other Ps have fallen through the cracks — particularly price. Revisiting pricing with a careful eye on perceived value and fairness is key, as making considered sacrifices in margin could translate to gains in trust and loyalty.

Building a strong, trustworthy brand while trying to convert sales is the job of every marketer. The motional value of a brand can be an effective tool in times of economic difficulty.

Companies like Airbnb and PepsiCo have found success by investing in brand, marketing, creativity, design, and storytelling, which has been attributed to a growth in sales.

Costco’s decision to keep prices steady yielded a 15 percent jump in sales in 2022’s third quarter. The retailer is maintaining loyalty and providing small moments of joy — just what’s needed in a recessionary climate.

Speaking to Canvas8 for the 2023 Expert Outlook, Karen Barnes, the editor of Delicious Magazine, said: “There is a need for security and comfort because people still want to have treats and small luxuries, even if they’re not the kind people would’ve had before.”

To rekindle customer loyalty, organizations must renew their focus on customer experience as a route to growth. Joint ownership of the experience should harness the best efforts of service, marketing, and design to deliver consistent value to customers. Successful collaborators will quickly discover the value of having an advocate for customer experience in efficiency discussions. The path forward means identifying and eliminating the breaking points that lead to resentment and returning to the four Ps of marketing to find new balance.

To rekindle customer loyalty, organizations must renew their focus on customer experience as a route to growth.

AUTHORS: Mark Curtis, Global Sustainability and Thought Leadership Lead - Accenture Song; Katie Burke, Global Thought Leadership Lead - Accenture Song; Agneta Björnsjö, Global Research Lead - Accenture Song; Nick de la Mare, North America Design Lead Accenture Song; and Alex Naressi, Managing Director, Global R&D Lead - Accenture Song.

To read or download the full report go to: https://www.accenture.com/ca-en/insights/ song/accenture-life-trends?

NOVEMBER 2023

DMN.CA ❰

// 20

ISTOCK/ PEOPLEIMAGES

CUSTOMER EXPERIENCE

CRMs Remain Indispensable in Marketing

BY CHANDRASHEKAR LSP

I

n the ever-evolving landscape of modern business, customer relationship management (CRM) systems have become indispensable tools for companies.

Traditionally seen as the purview of large businesses — CRMs seem to have been generally overlooked

by SMEs. So, are Canadian businesses fully embracing the power of CRM solutions? In this article, we explore the role of CRMs in the marketing efforts and why they should be considered a crucial asset, even for those who have not yet adopted them.

The Current Landscape Before delving into the world of CRM systems in Canada, let’s take a moment to reflect on the global perspective. Zoho’s 2023 State of Customer Operations for U.S. Small Businesses survey, in collaboration with the SMB Group, analyzed data from 1,500 U.S.-based small businesses with under 100 employees. The research revealed that the adoption of CRM systems among small businesses remains inconsistent.

Remarkably, 56 percent of the respondents admitted to not using a CRM solution for managing customer relationships. Instead, ❱ DMN.CA

they continue to rely on traditional methods of data management.

Among these non-CRM users, 39 percent rely on a combination of spreadsheets, email, and personal productivity tools, nine percent use various siloed applications, and eight percent still stick to manual methods involving pen and paper.

However, the above stats do not mean that small business owners do not see the value and potential of CRMs for their businesses, including marketing. In fact, even those small businesses abstaining from CRM usage acknowledge their potential benefits. More than two-thirds of respondents without CRMs express a belief that their businesses would gain significant advantages from implementing one.

How Businesses Can Leverage CRMs For Their Marketing Business owners may be wondering how exactly they can use their CRMs to power their marketing efforts. Often, small businesses do not have in-house marketing professionals to help them take advantage of the full suite of CRM features. Here are some ways that business marketers — or owners — can take advantage of their CRM’s extensive capabilities.

Customer Segmentation: Use your CRM to segment your customer database based on various criteria such as demographics, purchase history, and behavior. This segmentation allows you to tailor your marketing messages to specific customer groups, making your campaigns more relevant and effective. ❯ Personalized Email Marketing: With CRM data, you can do personalized email marketing campaigns. You can use customer information to address recipients by name, recommend products based on their purchase history, and send targeted offers. This personalization can significantly improve email open and conversion rates. ❯ Lead Nurturing: CRM systems help you track leads through the entire sales funnel. You can automate lead nurturing workflows, sending relevant content and messages to leads at various stages of the buying process. This keeps potential customers engaged and increases the likelihood of conversion. ❯ Social Media Integration: Integrate your CRM with social media platforms to track ❯

customer interactions and collect data. This allows you to monitor customer sentiment, respond to inquiries, and gain insights for more effective social media marketing. ❯ Customer Feedback Management: Use CRM to collect and manage customer feedback. Feedback can be used to improve products or services and identify areas for marketing campaigns. Responding to feedback promptly can also enhance customer satisfaction.

Dispelling Common Misconceptions In addition to concerns about cost, several common misconceptions often deter small businesses from adopting CRM systems. Such hesitation, however, puts them at risk of becoming uncompetitive.

Here are some common misconceptions that are keeping owners and teams from fully leveraging the benefits of CRMs, according to the survey’s respondents:

1

“Our company was too small to need one” - 48 percent of surveyed users It is essential to recognize that CRMs have evolved over the years NOVEMBER 2023

Resource Directory

Date:

July 4, 2013

AD:

Carter

Client:

Cleanlist.ca

AM:

Sinclair

Docket:

3540

Version:

F6

Application:

Print, 4x4.325", 4C

Media:

Direct Marketing Magazine

DATA ANALYTICS

// 21

PLEASE NOTE This file has been optimized for its intende application only. For uses other than inten please contact Seed for alternate formats.

LIST SERVICES

BETTER DATA

FRom CANADA’S LEADER iN CoNTACT DATA SoLuTioNS Data Cleaning • Address Correction • Mover Update • Deceased Identification Data Enhancement • Phone Append • Demographics

Ask for a FREE EvALuATioN and pricing!

1-800-454-0223 sales@cleanlist.ca

Custom Solutions

cleanlist.ca

)

Prospect Databases • ResponseCanada • Consumers, Movers and Businesses

an interact direct company

10-1634-DCM-Resource Directory-OL.pdf

2

2023-05-03

DIRECT MARKETING

9:06 AM

10 AI Terms Everyone Should Know CONTINUED FROM page 8

shortcomings to help better reflect society at large, not just certain groups of people.

M

CL_ResourceAd_4x4.325_v04.indd 1

Y

Multimodal models A multimodal model can work with different types, or modes, of data simultaneously. It can look at pictures, listen to sounds and read words.

It’s the ultimate multitasker! It can combine all of this information to do things like answer questions about images.

Prompts A prompt is an instruction entered into a system in language, images or code that tells the AI what task to perform. Engineers — and really all of us who interact with AI systems — must carefully design prompts to get the desired outcome from the large language models. It’s like placing your order at a deli counter: You don’t just ask for a sandwich, but you specify which bread you want and the type and amounts of condiments, vegetables, cheese and meat to get a lunch that you’ll find delicious and nutritious.

Y

Y

LIST SERVICES

Your Source For Premium Email & Phone Appending Grow & Enhance your Direct Mail Lists with: Email Appends: Grow your list by 40% Phone Appends: Boost telemarketing lists Free Match Test: See how many we can add Consumer & Business Records: U.S. & Canada Data Appending

MelissaDirect.com 1-800-MELISSA

Mailing Lists

NCOA

Sales Leads

Copilots A copilot is like a personal assistant that works alongside you in all sorts of digital applications, helping with things like writing, coding, summarizing and searching. It can also help you make decisions and understand lots of data. The recent development of large language models made copilots possible, allowing them to comprehend natural human language and provide answers, create content or take action as you work within different computer programs. Copilots are built with Responsible AI guardrails to make sure they’re safe and secure and are used in a good way. Just like a copilot in an airplane, it’s not in charge — you are — but it’s a tool that can help you be more productive and efficient.

Plugins Plugins are a bit like when you add apps to your smart phone: They step in to fill specific needs that might pop up, enabling AI applications to do more things without having to modify the underlying model. They are what allow copilots to interact with other software and services, for example. They can help AI systems access new information, do complicated math or talk to other programs. They make AI systems more powerful by connecting them to the rest of the digital world.

SUSANNA RAY is the principal of Prowess Consulting LLC and a features writer for Microsoft Source storytelling site.

// 22

CUSTOMER EXPERIENCE and now offer features tailored to businesses of all sizes. Even solopreneurs can benefit from a CRM customized to their needs.

These one-person outfits, in particular, often juggle numerous responsibilities and may lack the budget to hire additional staff.

CRMs can help automate tasks such as invoicing and updating customer records, thereby freeing up valuable time to focus on core business concerns. Additionally, CRMs provide a structured filing system that reduces time spent searching for information and facilitates more efficient decisionmaking. Thanks to low-code technology, even those with minimal coding experience can adapt and refine CRM processes as their businesses grow.

Small businesses can rarely predict their exact evolution, but a CRM can prove invaluable in maintaining seamless internal communication, which is critical for retaining and attracting customers. With a well-implemented CRM, all team members gain visibility into each other’s actions, fostering a collaborative and communicative team culture that lays the foundation for future growth.

2

“We were satisfied with how we do things today” - 35 percent of surveyed users While some businesses may find their existing methods convenient, these makeshift solutions can be risky. Relying on multiple applications from various vendors or even using traditional pen-and-paper approaches lacks the sustainability and security provided by a centralized CRM. These scattered methods may require minimal upfront costs and setup, but they are susceptible to disruption should one of the applications fail or introduce problematic updates. Training employees on multiple platforms can also increase the risk of errors.

In contrast, a CRM centralizes operations and monitors individual apps from a remote server via cloud computing.

Suspicious activity within the system, regardless of the affected app, triggers a consistent and timely response. Furthermore, software updates can be seamlessly distributed across all connected ❱ DMN.CA

programs, reducing the risk of security breaches. The cost of implementing a CRM pales in comparison to the potential financial and reputational costs of a data breach.

3

“People were too resistant to learning how to use new software” (17 percent of surveyed users) and “It would take too long for people to learn how to use” (17 percent of surveyed users) Adopting new software can be met with resistance, as some employees may lack technical expertise.

However, modern CRMs often include automation as a standard feature, allowing employees to delegate monotonous tasks to the system. This not only saves time but also reduces the need for extensive upskilling. Employees can customize their CRM experience by selecting fields and applying labels, making it user-friendly even for those initially hesitant.

Moreover, CRM integration into existing workflows can be seamless, allowing businesses to initiate automations immediately.

This ensures that even during unforeseen circumstances, such as an employee being absent, tasks can be assigned and monitored efficiently.

The Bottom Line for Businesses In conclusion, scalable and intuitive CRM systems have proven their worth to companies of all sizes, including small businesses. For those aiming to compete and market their organizations and stand their ground against larger industry players, adopting a CRM is not a luxury but a necessity.

The reluctance to embrace CRM systems should not deter businesses from reaping the benefits of these tools. After all, no one wants to risk falling behind competitors and having to catchup, even at the best of times.

CHANDRASHEKAR LSP is the managing director of Zoho Canada and is committed to creating and spreading awareness about the value of CRM for even small businesses. He cut his teeth in the software domain with the WebNMS division of Zoho and has journeyed with the company at its crucial pivot points. LSP is based out of Zoho Canada’s Cornwall, Ontario head office and holds a masters degree in information systems and applications.

The Importance of Authenticity Over Performative Activism

BY GABRIELLE POIRIER AND JEN FARR

I

n today’s era of heightened consumer awareness, the relationship between consumers and organizations has undergone a significant transformation. The evolution of social media and increased access to information have empowered consumers to closely examine and scrutinize organizations’ commitment to causes and CSR efforts, making authenticity more important than ever. This underscores the importance of sustained, sincere support to cultivate trust while driving lasting, positive change.

What is performative activism?

Performative activism is when an organization or individual publicly expresses support or concern for a movement, cause, or issue to boost their image or drive profits without taking real, actionable steps to drive meaningful change. We see this when organizations adopt timely socially-conscious messaging or imagery to appear progressive rather than genuinely wanting to do the right thing (e.g. green-washing, rainbow-washing, etc.).

Do people really notice?

Yes. As an organization, only observing or supporting a cause for a certain month or day of the year because you feel that you should — or because everyone else is doing it — is not authentic and consumers have learned to see right through it. They demand more than just empty gestures and opportunistic marketing tactics that exploit important issues, and this type of superficial support can lead to reputational damage and loss of brand loyalty.

On the other hand, ongoing support that comes from the heart effectively demonstrates an organization’s commitment to making a positive impact, extending beyond mere marketing opportunities. This conveys alignment between an organization’s actions and values which builds trust, credibility and positively impacts bottom lines.

What should organizations take away from this?

Above all else, it’s important to remember the following: The demand for authenticity and yearround commitment to meaningful causes is not a trend but an opportunity for impactful longterm engagement, among both internal and external audiences.

All organizations — big or small — have the potential to drive real change while staying true to their core value systems.

Consumers aren’t just watching, they want to be part of something greater and are actively associating themselves with brands that want to do the same. Rather than reacting opportunistically to timely movements or observances, developing a comprehensive and intentional corporate social responsibility strategy (and sticking to it!) is key to ensuring authenticity. Organizations that do this will find themselves at the forefront of positive change and consumer loyalty.

By remaining rooted in who we are, what we stand for and supporting causes that resonate with us year-round, we all have the opportunity to make this world a better place — both as organizations and consumers.

GABRIELLE POIRIER is senior account manager and JEN FARR is account director, corporate services lead, with Kaiser + Partners in Toronto.

NOVEMBER 2023

Being data-driven is complicated.

We can help.

Harnessing data across your organization to be truly data-driven is not easy.

Contact us to learn more about how our PRIZM™ segmentation system helps you connect our data to activation for campaigns that drive real results.

Ratio of Website Visitors to In-Store Visits s Augu

6.0

t ‘20

h Marc

‘21

h Marc

5.0

‘22

4.7

4.0

3.0

2.0 1.9

2.0

1.0 1.0

2019

Nigeria

Retailer A

Toronto CSD by Dissemination Area

2020

2021

March

January

February

October

December

November

July

September

May

June

August

April

March

January

February

December

November

July

August

October

September

May

June

April

March

January

February

December

November

July

August

October

May

June

September

India

April

March

January

China, People’s Republic of

February

0.0

Dominant Country of Origin

2022

Retailer B

Changing Demographics

Online & Offline Habits

With an aging population, increased immigration, relocation and changing commuter habits, our suite of demographic products help you stay on top of the changes – nationally, by neighbourhood, and everywhere in between.

EA’s ground-breaking mobile movement and web behaviour databases not only help you keep track of the “clicks versus bricks”, but know which Canadians are driving these trends nationally and locally as those behaviours change.

Deposits by Region: Penetration vs. Wallet Share

Vulnerability Index | Social Vulnerability Unemployment Rate

49.1% Index:188

124 SOCIAL VULNERABILITY INDEX*

Community Involvement

11.7% Index:117

Perceived mental health is fair or poor

People know well enough to ask favour (none)

51.5%

Index:197

Deepen and Maintain

Index

"You cannot be too careful in dealing with people"

14.9%

Strategy: Acquisition

91

Wallet Share

Household Size -1 Person

24.6%

Index:118

Index:235

Deepen Relationships

Develop New Strategies Close relatives (0-2)

Close relatives in same city (0-2)

34.7% Index:156

47.1% Index:110

Close friends (0-2)

33.4% Index:124

Close friends in same city (0-2)

29.9% Index:107

Product Penetration (HHs that Hold Product)

Attitudes, Mindsets, Social

Finances

Environmental concern, privacy, trust and social connectedness.

Psychographic indicators have shifted and Canadians’ social circumstances have changed. It’s never been more important to look at these indicators and map them to different populations.

Comprehensive, updated financial metrics on Canadians.

Understand who is most stretched to make ends meet, who is affected by property market conditions and who has money to donate to their favourite charities.

Desktop

Mobile

Out of Home Digital OOH

Media Activation

Social Media

Email

SMS

Linear & Connected TV

Direct

Radio

Print

EA’s ever-growing network of over 50 activation partners includes adtech platforms, media agencies, publishers, broadcasters, list providers and distribution companies to ensure you can use our data for analysis and then reach your target audience.

Looking to achieve the results that data promises? Ask EA. For your free PRIZM consultation, contact us at: https://www.environicsanalytics.com/dm-mag