The changing landscape of data privacy in NZ

The noise over the EU’s introduction of GDPR (General Data Protection Regulation) in April massively raised awareness of the fact that companies increasingly have to deal with complex data sets that they have to treat with enormous care and respect. Many European organisations were late to the party, not to mention many global players who latterly discovered how they were caught up in the regulatory changes.

This was of course compounded by revelations in The Guardian in March regarding Cambridge Analytica ‘stealing’ 87m Facebook customer records.  The shockwaves around this were significant with an enormous drop in measured consumer confidence in Facebook, as well as an initial sharp stockmarket drop.

An example of some of the consumer impact of the Cambridge Analytica revelations are evidenced by these example polls:

  • Fewer than half of Americans trust Facebook to obey U.S. privacy laws.
(Reuters/Ipsos poll)
  • 60 percent of Germans fear that Facebook 
and other social networks are having a negative impact on democracy. 
Bild am Sonntag (Germany’s largest-selling Sunday paper)
  • Trust in Facebook being committed to protecting personal information fell from 79% to 27% at news of the scandal and remained at 28% even after Zuckerberg’s testimony. (Ponemon Institute, April 2018)

With GDPR and Cambridge Analytica, it’s no surprise that privacy has become a hot topic for many consumers, and therefore there’s a real impact for business:

  • 76% of UK internet users aged 16-64 describe GDPR as being extremely or very important to them in relation to their digital lives (GlobalWebIndex, May 2018)
  • In the US, only 25% of consumers say they believe most companies handle sensitive personal data responsibly (PwC’s 2017 US Consumer Intelligence Series survey).
  • 69% of Australians believe that trust in the brand is most important when making a decision about sharing personal information (Deloitte Privacy Index, 2018, n.1000)

 

So what’s happening in New Zealand?

The Minister of Justice introduced a Bill amending the current Act in March 2018. It’s scheduled to be signed into law in July 2019.  The current draft Act was created in 2011; the Privacy Commissioner has submitted a substantial set of recommendations for improvement, recognising the massive change in the use of data since then, especially around the use of ‘big data’.

The Privacy Commissioner recently stated “I’m pleased the Government has moved so promptly to address the immediate need for stronger privacy protections and enforcement powers. Better privacy and data protection regulation is a growing trend in OECD countries like New Zealand.” (John Edwards, NZ Privacy Commissioner, March 2018).

These include the privacy risks of both de-identification and re-identification when consumer data is anonymized and subsequentially re-connected to identifying information; a right to request, correct and transfer personal information; right to erasure; fair use of personal information; algorithmic transparency meaning openness about the purpose, structure and underlying actions of algorithms used to manipulate data; mandatory breach notifications; and penalties for serious non compliance.

 

What should you know?

We recommend you should be building a data environment for the next generation, not for what’s here right now.  If you don’t, you will be doing it again soon.  And it’s an opportunity to take a leadership leap as a brand, especially in consumer services, and be consumer centric.  The research indicates consumers will thank you for it and rate your brand more highly.

Rather than wait to be legislated against, we should imagine the most stringent possible requirements and build to this:

  • Data portability – how easy we make it for you to extract your data
  • Data transparency – how you can see what we hold about you, and correct it
  • Granular opt in – how you can control what we do and don’t tell you about
  • Data policy which is easy to understand
  • Ensure we have consent for the data we have (through the lens of future laws)
  • Ensure all staff members understand the importance
  • Verify our data security – any breach will massively erode trust
  • Have an appointed privacy officer and manage data privacy proactively

 

Learn from those who have missed the mark

“It’s clear now that we didn’t do enough. We didn’t focus enough on preventing abuse. We didn’t take a broad enough view of what our responsibility is, and that was a huge mistake.”

Mark Zuckerberg, April 2018


justONE comes out on top – again.

Our determination and passion have once again paid off, with our showing in the latest edition of NZ Marketing magazine.

The trend of marketers choosing to work with specialist agencies that suit their specific needs and projects was discussed and investigated. The Specialist Agency Perceptions Study, conducted by Tangible Media and TRA, questioned 75 marketers and 93 people agency-side about the performance of different agencies.

Respondents were asked to name agencies they heard good things about, with justOne coming out on top as the direct marketing agency respondents heard good things about when unprompted. The agency was also perceived as being on the way up when respondents were explicitly asked about it.

Marketing magazine commented "The results sit alongside findings that marketers are looking for experience, expertise, understanding of business needs and creativity in direct marketing partners.

justOne’s success can be put down to teamwork and recognition of the importance of specialist talent. It’s hard to find and essential to nurture. They work hard to maintain a consistent team of experts across all disciplines (planning, account management, creative, data, production) and have focused on being experts and being very distinct from a generalist agency.

Their secret sauce is that extra bit of understanding of how to make the most of whatever, be it systems or communications channels in that one-to-one space".

 


Don’t call me a goldfish!

People have been lamenting over the last few years, that attention spans have shrunk. But we may have been a little premature.

Litmus (the online email testing platform) have analysed billions of emails sent through its platform from 2011 to 2016. Expecting the complete opposite result, they found that the percentage of emails read for more than 18 seconds grew to 44.4% in 2016 from 38.4% in 2011. That is an increase of nearly 7%!

Their supposed hypothesis was that mobile phones were the culprit to shrinking attention spans. Why the significant increase in mobile email engagement times? Read their theories and check out the infographic of the results:

https://litmus.com/blog/email-attention-spans-increasing-infographic


Govt needs to protect Kiwis from Facebook's power

So, I left Facebook last week. Or more precisely, I deactivated my account while I consider whether I want to rejoin.

It means I "disappear" from the Facebook universe. And, obviously, I don't know where people have eaten tonight,

Brands like Facebook have traded on trust. Share. Be open. Allow us to access your computers and phones. You can trust us. Terms of service updates – no worries, simply accept. We are the good guys.

As part of deconstructing my Facebook engagement, I downloaded my Facebook "file". You can too.

It packages up the stuff you know you shared – photos, videos, messages, posts, even time-stamped events.

Sure, you expect that. What I wasn't expecting was to see a record of every contact on my phone. where they've been for the weekend, or what cute pug video they reposted. Unless, like, I actually talk to them.

Why did I leave Facebook? I had mixed feelings about oversharing, and an underlying unease about where that data went.

But much more significantly, the exposé by The Guardian of the role of Cambridge Analytica in duping hundreds of thousands of American Facebook users into sharing the details of millions of fellow Americans apparently leading to a smart targeted campaign during the US election, and another around Brexit in the UK, places a stark white light on the risks of big data in our world.

Today, the US Senate put it starkly to Mark Zuckerberg "If you social media companies don't get your act together, none of us will have any privacy anymore", and they said what we are all thinking – "these events have ignited a larger discussion on consumers' expectations of data in society."

Why? I don't recall ticking that box. It's not something they needed so I could post a picture of me walking the dog. And it was bang up to date, which means they must be constantly updating.

If they can grab my phone book – presumably by being connected through the app on the phone – what else might they – or others - decide would be useful?

Via many apps, and my smartphone, I've already accepted that my location is tracked, along with what I might be doing and who with. I've been cool with that, as most people seem to be, which is ironic as growing up in 70s Britain, the idea of ID cards was massively resisted. It's Orwellian, but okay in a benign society.

Does it matter? This is an interesting question. Do we want third parties sitting in other parts of the world with unfettered access to the behavioural data of New Zealanders?

In 2007, what became known as the "Anti Spam" Act was passed in New Zealand. This was designed to stop our email inboxes being filled with rubbish.

It was different, but similar in intent, to the UK's Data Protection Act of 1998, which is about to be superseded by a European Act, the GDPR, in May, which is heavily focused on data privacy and the rights of the individual.

The result of the Anti Spam Act meant many New Zealand firms had to recollect email permission as they hadn't been collecting email "ethically".

But as it was focused only on who they could stop in New Zealand, it didn't prevent overseas spam, just local, which generally wasn't the problem in the first place.

I've been working with data in New Zealand for nearly 20 years, predominantly through customer database marketing and loyalty programmes. Here, there is trust. There is corporate social responsibility.

Your supermarket is interested in what you buy, and might want to buy, not who you are going to vote for.

Ditto your credit card company, your sandwich shop, your department store, your pet shop, your petrol station. The New Zealand commercial data play is generally about being useful, helpful, and closing the loop on needs and wants.

But in the big bad world, it's clearly different and organisations who have projected a benign image, however wholesome in their core (Zuckerberg today described Facebook as "an idealistic company"), are clearly at risk of losing their way or allowing malicious third parties to take advantage of them, and their users.

Zuckerberg in front of US Senators today accepted that regulation was probably necessary and Facebook would play its part.

So, we need our governments to take protecting data seriously. We need a plan to protect our citizens (sometimes from themselves) from sharing their data in dangerous places.

But fundamentally, we need to have a voice with these overseas organisations who are increasingly playing such an important role in the daily life of New Zealanders.

We seem to be very concerned about foreigners buying property even when it's only a small fraction of property ownership, but apparently little around the potential abuse of the data of millions of Kiwis.

The Government's reported update of New Zealand data and privacy laws really can't come soon enough. Let's hope they consult well on them so they don't punitively disadvantage New Zealand businesses though.

In the meantime, what can you do as an individual? Think about the faceless overseas sites you share data with.

Think about the stupid quizzes that scrape your data. Make your own mind up about whether organisations like Facebook deserve your trust any more – I'd like to think they will earn back my trust.

But trust local retailers and organisations who have no agenda apart from being useful and understanding you.

- Ben Goodale is the managing director of justONE

This article was posted in the New Zealand Herald. Click here to read more


ANZ chooses justOne as a data-driven partner

justOne has been appointed by ANZ Bank to lead relationship marketing strategic projects across digital and direct channels.

It follows ANZ initiating a process to find a partner focused on data-driven marketing, with a strong focus on digital as well as traditional direct marketing, to work alongside incumbent agencies TBWA and PHD.

Head of marketing Astrud Burgess says it wanted to work with an agency that specialised in data-driven marketing and justOne’s team are as passionate about one-to-one communication as the bank is.

“…they are already starting to make a difference.”

“It’s great to have the justOne team on board as we expand our data-driven capabilities and take advantage of emerging technology to better communicate with our customers and the wider New Zealand market.”

Commenting on the win, justOne managing director Ben Goodale says ANZ has an exciting vision for transforming its relationships with customers, and this aligns with what the agency loves to do.

“We are quickly forging a great working relationship with the ANZ team and excited about what we can do together, not least as we maximise the emerging opportunities in digital tech.”

Burgess adds the bank is ambitious for the future and expect that its agencies will be part of some significant marketing initiatives over the coming months.

 

StopPress article here.


Bridging marketing to the new age of advertising

It’s been a season of conferences, and one of the topics of rumination seems to be the role of agencies.  I was fortunate enough to attend the Media and Marketing Summit in Melbourne recently, and of course Auckland saw the Direct Marketing Conference last month.

Both included some quite strident opinion, which is always good to get the blood flowing.  For example, in Melbourne, we saw panel debates about the evolution of agencies to meet the digital age, but also harking back to one of the fundamental offerings of agencies which of course is great creative work, and increasingly important in an age where there is so much fragmentation and where creative cut through will elevate brands from the sea of sameness.

This was a fascinating counterpoint to the DM Conference in Auckland where one speaker claimed (possibly to gasps of horror in the audience) that maybe agencies wouldn’t be needed soon as they could do everything in-house. Clearly, this speaker hadn’t got the memo about the value of creative excellence or was under the impression that the great creatives of the age want to work for them in-house.

What was amusing was that (to adopt an old Glasgow phrase) this latter point was the ‘talk o’ the steamie’ during the lunch break.  Most opinion  seemed to think the speaker was hopelessly naïve, and whilst doubtless some were eagerly rubbing their hands thinking how much they could save on agency fees in the future

But cut to Melbourne and the conversation was very different.  The really interesting (and interlinked) theme of the Summit was the changing face of the agency model, or more specifically, the now popular notion that ‘specialist agencies are back’. Whilst this concept isn’t new (as the best agencies are usually consultancies too), various CMOs and agency heads discussed how new ways of thinking are forcing the traditional agency to evolve, and how that’s a good and exciting thing.

For example, nowadays, the role of a media agency is no longer just buying media, a creative agency can somehow easily morph into a media agency, and a media agency can become a digital shop.  The list goes on (and on).

So, is this the new agency model as we know it? Do communications and advertising businesses need to become more specialised, in order to compete on an expertise level? Are we entering an age of consultancy ‘fiefdoms’? And lets face it, does this feel like groundhog day?

We’re seeing some significant client shifts in the media, advertising, and marketing landscape here in New Zealand, but none showing a clear pattern.  One minute a major financial services organisation opts for an agency specialist model, the next, a telco for a solo agency relationship.

What isn’t happening is opting for no agency. Clearly, New Zealand’s leading marketers deeply value the expertise that the right agency (or agencies) can bring to their business.

One area where agencies can help, other than creative, is with the complicated stuff.  For instance, the growth in digital channels and big data (another big buzzword bandied around at the Summit), is starting to disrupt the way businesses deliver marketing messages, with technology allowing engagement at a much greater scale.

That said, marketers’ excitement about this tends to massively overeach the capability for their systems and internal teams to deliver on this; it’s one area where agencies can be useful to plug those gaps and deliver ‘instant’ solutions while organisations build internal capability.

With data analysis and insight being the next frontier for most businesses, agencies and organisations across all industries will no doubt be looking to  beef up their data-driven strategic capabilities, investing in talent to better service this skillset. Reinforcing the fact that as we push forward into the digital realm, specific expertise in technical and analytical knowledge will continue to alter the nature of marketing agencies for years to come.

We find this exciting because this new age of advertising allows us to fundamentally deliver CRM at scale – if not immediately for everyone, then certainly over the next wee while.   So for us, we welcome the future and see the value of agencies having a significant lifespan - helping bridge New Zealand organisations to the new age.

Managing Director, Ben Goodale

See more here


Mastercard offers first checkout options for VR with Swarovski

As the debate about the future of retail rages, this is an interesting experiment with VR by Swarovski, even including ecommerce capability.  These sort of idea were explored in a slightly more rudimentary form when the online VR game Second Life was  new and interesting.  Now, a decade on, with technology far advanced to create lifelike visuals, it shows how far we have come for a brand like Swarovski to be prepared to play in the space.

 

Does this set an environment where online shopping evolves to VR?  Quite possibly, you can see the potency of it rather than looking at catalogues turned into pixel.  However, for fast moving items, the cost is probably prohibitive for now....

Managing Director, Ben Goodale

 

See the original article here


JB HI-FI plans new strategy as sales slump

JB Hi-Fi electronic goods retailer is finalising its new performance strategy after reporting both a sales and profit drop in the latest financial year.

The New Zealand division of the Melbourne-based company posted a $2.7 million loss on EBIT, and has taken a 17.1 million non-cash impairment on the business, “following poor performance in the year.”

Gross margins dropped 26 basis points to 18.15 per cent, while the cost of doing business increased 156 basis points to 17.89 per cent.

The drop-in profit margins were only seen for the New Zealand store, for which there are 16, meaning the new performance strategy will be exclusive to our stores.

Ben Goodale, managing director of JustOne, highlights that the loss in margin could be attributed to consumers switch to electronic shopping.

“It’s been a challenging time for retailers in this category, margins have long been tight on electronics… JB Hi-Fi have seen their business repositioned by technology changes. Where once they would have made reasonable margins on music and games, these categories have been massively hit by downloads.”

Goodale confirms suspicions that although online can be considered a culprit for a slump in sales, it cannot be wholly to blame.

“They have to think about their own online strategy, which is currently not a great experience.”

JB Hi Fi also deals with major electronic devices, an offering which Goodale says may keep consumers coming back into the store if customer experience improves.

“People still want to see and touch major electronics goods… I don’t think we're going to see a massive shift to buying electronics online as people like to talk about it, poke at things, generally browse and discuss; however, there will be a degree of loss of sales for more day to day items that are less emotional purchases so it’s going to have some sort of effect which they will need to replace.”

The performance strategy that is being updated will relate directly to New Zealand store, a changing market which Goodale hopes they will take advantage of.

“I’d like to think they might refresh their marketing strategy, which has never wavered but if I was them I would be really challenging.  It’s harder for them to change the product strategy as they are reliant on what the world of technology brings us – but they can affect people’s view of them as the place to buy it.”

The next financial year is scheduled to end June 30 2018, to which Goodale claims the company would need several improvements of their strategy to raise dropped share prices.

“[JB HI-FI] Needs to be sure they understand what customers want from them and communicate their offering as clearly as possible…Carry on evolving ranging to reflect the market – and maintaining stock levels and ensure staff remain accessible and friendly.”

The New Zealand arm has 16 stores, making it a small part for the wider group's network of 302 stores. Net profit for the group rose 13 per cent to A$172.4m on a 42 per cent increase in sales to A$5.63 billion, ahead of its forecast of $5.58b.

See more here 


justONE breaks six-year hiatus for ITM

1-1/digital agency justONE has launched a new campaign for building supplies specialist ITM, breaking a six-year drought for ITM brand campaigns.

The Live to Build campaign is built around authentic stories from builders.

“As this was the first brand campaign from ITM in six years, it was important that we stayed true to what ITM stood for,” said justONE managing director Ben Goodale.

“Not only were they there for the trade, for real builders, but they worked with builders to make things easy. In short, ITM lives to support those who ‘Live to Build.’”

CD Stuart Hinds said: “Builders really do have entertaining stories to tell, so in a twist on traditional brand campaigns, rather than talk about ITM’s product offering specifically, we focussed on making ITM’s customers the hero, by sharing their candid anecdotes.”


“justONE did a fantastic job in exploring this creative territory.”


ITM marketing manager Chris Boyle said: “First and foremost we’re about our customers – from apprentices, right through to the old hands. justONE did a fantastic job in exploring this creative territory further to produce a TVC and campaign that was not only genuine, but could resonate with builders from all walks of life.”

The Live to Build TVC went to air on Saturday, coinciding with The British and Irish Lions rugby tour.

“Builders love sport and we know that rugby followed closely by fishing, is a favourite sport amongst our target market,” Boyle said. “The Lions Tour was the perfect opportunity to launch our TVC and drive builders online for more content to engage them deeper.”

The campaign is led by video storytelling on TV and digital platforms, with a strong below-the-line and retail activation programme designed to connect with ITM’s customers and the wider builder audience.

Builders also have an opportunity to share their building story and win a week-long, fully catered self-drive 4WD journey in the South Island high country.

 

See more here 


Retail death fears wildly inflated

The news about Amazon's entry into the Australian market sparked a lot of media commentary and debate about the alleged "death of retail" and for some, the "death of brands," thanks to Amazon.

That’s right, apparently, we’re all going to start buying Amazon-branded toothpaste, washing powder and TVs because they will be conveniently and cost-effectively shipped to us by the benign retailer and because going to the shops is apparently such a dreadful chore.

This, of course, is utter nonsense, for a number of reasons. Firstly, shopping is well established by retail psychological experts as not simply about the act of shopping. In Why We Buy, retail guru Paco Underhill wrote: “We use shopping as therapy, reward, bribery, a pastime, as an excuse to get out of the house, as a way to troll for potential loved ones, as entertainment, as a form of education or even worship, as a way to kill time."

And make no mistake – we Kiwis love to shop. It’s easy to get out to the shops, with good roads and relatively convenient parking.

Secondly, it assumes brands will just lamely sit still and allow their market share to be massively eroded by commoditisation. It hasn’t really happened with own brands in major grocery and general retail, and there is no real evidence to suggest Amazon can achieve what so many others haven’t. As the leader of an agency plugged into the views and strategies of several major corporates, I can say with confidence and conviction big brand owners just won’t sit still.

Thirdly, it assumes Amazon possesses the key cards and that somehow you can only buy directly from them. The whole omnichannel buzz of the last few years has made it abundantly clear savvy retailers must offer several ways to serve, and deliver, to the customer. Engagement online, in-store, click and collect, delivery and via online help tools – all of these critical elements are pushing an evolution (it’s frankly too slow in New Zealand to call it a revolution) in how you can buy.

I would argue, however, that one of the most crucial requirements is the in-store experience (which, in most cases, is getting better and better) to help differentiate from the convenience of an online experience. In my view, and as all the prevailing research indicates, the majority of people still want to touch and try before they buy.

Finally, there are no set rules about who is going to win the future of retailing. What we are seeing in New Zealand is retailers are taking proactive steps to protect their customer base, and therefore develop a much greater insight into what motivates people to buy the things they need and want.

The recent loyalty wars are an example of this. With the tussle of Fly Buys, Air New Zealand and Smartfuel, as well as several major retailer schemes such as New World Clubcard and Farmers Club, we’re seeing evidence of a play to develop much stronger relationships with, and understanding of, shoppers. This, in turn, means that the retailers involved are now able to serve their customers’ needs, irrespective of how they want to shop.

On a personal level, until Amazon can work out how to properly segment and target me with recommendations on the sort of relevant books and music I want to buy, there remains a reasonable window of opportunity for Kiwi brand owners and retailers to prepare themselves properly for the new zeitgeist.

After shopping with Amazon for more than 20-years it still seems to have a rudimentary insight into my buying preferences. And frankly, I’m a lot less complicated than delivering a toaster by drone to an address in the Wairarapa.

Ben Goodale is managing director of justONE
Published in the NBR