Of course, that news hit the streets because of the hot-button issues of access to guns, the lack of ability to trace a firearm manufactured via 3D printing, plus concerns about avoiding detection in security screenings due to the composition of the pieces and parts (in this case, polymer materials).
But 3D printing should be receiving more press generally. It may well be the latest market disrupter because of its promise to fundamentally change the way parts and components are designed, sourced and made.
3D printing technologies – both polymer and metal – have been emerging for some time now, and unlike some other technologies, they have already found a highly receptive commercial audience. That’s because 3D printing technology can be used with great efficiency to manufacture production components for applications that are experiencing some of the hottest market demand – like medical instrumentation as well as aerospace, automation and defense products.
One the baseline benefits of 3D printing is that it can reduce lead times dramatically on custom-designed components. Importantly, 3D printing requires no upfront tooling investment, saving both time and dollars for purchasers. On top of that, there are no minimum order requirements, which is a great boon for companies that may be testing a new design and need only a few prototypes to start.
Considering all of these benefits, 3D printing offers customers the flexibility to innovate rapidly with virtually no limitations on design geometries or other parameters. Small minimum orders (even for regular production runs) enable keeping reduced inventories along with the ability to rely on just-in-time manufacturing.
The question is, which industry segments will be impacted most by the rise of 3D printing? I can see ripple effects that potentially go well-beyond the mortal danger faced by tool and die shops. How many suppliers are going to need to revisit their capabilities in order to support smaller production runs and über-short lead-times?
And on the plus side, what sort of growth will we see in companies that invest in 3D printing capabilities? Most likely we’ll be seeing startup operations that simply weren’t around before.
One thing’s for sure – it will be very interesting to look back on this segment five years hence to take stock of the evolution and how quickly it came about. Some market forecasts have the sector growing at more than 25% per year to exceed $30 billion in value by that time.
Like some other rosy predictions in other emerging markets that ultimately came up short, will those predictions turn out to be too bullish?
Maritz/Wise surveyed nearly 2,100 American adults age 18 and over via online questionnaires and consumer research panels. The respondents were filtered to include purchase decision-makers or key influencers within one or more of six major consumer categories:
Credit card services
The results of the research reveal that brand loyalty isn’t one monolithic mindset, but consumers tend to fall into one of four categories, as follows:
“Mercenaries” – Loyal to brands that pay them to be loyal: ~55% of respondents
“True loyalists” – Stay true to a brand because people connect with it above and beyond any explicit incentives to do so: ~30%
“Sloths” – Can’t be bothered to switch brands due to inertia: ~8%
“Cultists” – The brand represents their personal identity: ~7%
What the Maritz/Wise research also tells us is where people come down on brand loyalty attributes is based more on attitudinal characteristics than something that can be segmented easily based on conventional demographics.
In other words, brand loyalty characteristics aren’t driven by age, gender or income level; mercenaries and cultists are found in their expected proportions across the spectrum of loyalty.
In another finding, when it comes to the “transactional” nature of brand loyalty, the research discovered that the “art of the deal” is based on money.
Gift cards, cash-back and credits are overwhelmingly preferred forms of reward for brand loyalty – and these apply to everyone no matter where they may land on the brand loyalty spectrum.
So, the next time we hear the old saw that “money can’t buy love” … we all know that the truth is a bit more nuanced.
“Paid product endorsements are meaningless. I want to learn about the product from experts who are advocating for it – not just some random person who happens to have a job that makes them well-known.”
— Consumer panel participant, ExpertVoice, May 2018.
The next time you see a celebrity spokesperson speaking about a product or a service … don’t think much of it.
Chances are, the celebrity isn’t doing a whole lot to increase a company’s sales or enhance its brand image.
We have affirmation of this trend in a report issued in June 2018 by marketing firm ExpertVoice, which recently investigated a Census-weighted audience of ~500 U.S. consumers on the issue of who consumers trust for recommendations on what to buy.
The findings confirm that while celebrity endorsements do raise awareness, typically it fails to move the needle in terms of sales. In fact, just ~4% of the participants in the ExpertVoice research study reported that they trust celebrity endorsements. (And even that percentage is juiced by professional athletes who are more influential than other celebrities.)
As for the reason for the lack of trust, more than half of the respondents noted that their greatest concern is the monetary compensation given to the people from the brands they’re endorsing. Consumers are wise to the practice – and they reject the notion that the endorser has anything other than self-dealing in mind.
By way of comparison, here are how celebrities stack up against others when it comes to influencing consumer purchases:
Trust recommendations from friends/family members: ~83% of respondents
… from a professional expert (e.g., instructor or coach): ~54%
… from a co-worker: ~52%
… from a retail salesperson: ~42%
… from a professional athlete: ~6%
… from any other kind of celebrity: ~2%
A big takeaway from the ExpertVoice research is that more people are influenced by individuals who are making recommendations based on actual experiences with the products in question. Moreover, if it’s people they know they know personally, they’re even likelier to be swayed by their opinions.
In a crowded marketplace full of many purchase choices, consumers are looking for trusted recommendations. That means something a lot more authentic than a celebrity endorser. Considering the amount of money companies and brands have historically had to pony up for celebrity pitches, it seems an opportune time for marketers to be looking at alternative methods to influence their audiences.
Click here for more information regarding the ExpertVoice research findings.
And what are the prospects for GDPR-like privacy coming to the USA anytime soon?
First off, let’s review what’s covered by the GDPR initiative. The GDPR includes the following rights for individuals:
The right to be informed
The right of access
The right to rectification
The right to be forgotten
The right to restrict processing
The right to data portability
The right to object
Rights in relation to automated decision making and profiling
The “right to be forgotten” means data subjects can request their information to be erased. The right to “data portability” is also a new factor. Data subjects now have the right to have data transferred to a third-party service provider in machine-readable format. However, this right arises only when personal data is provided and processed on the basis of consent, or when necessary to perform a contract.
Privacy impact assessments and “privacy by design” are now legally required in certain circumstances under GDPR, too. Businesses are obliged to carry out data protection impact assessments for new technologies. “Privacy by design” involves accounting for privacy risk when designing a new product or service, rather than treating it as an afterthought.
Implications for Marketers
A recent study investigated how much customer data will still be usable after GDPR provisions are implemented. Research was done involving more than 30 companies that have already gone through the process of making their data completely GDPR-compliant.
The sobering finding: Nearly 45% of EU audience data is being lost due to GDPR provisions. One of the biggest changes is that cookie IDs disappear, which is the basis behind so much programmatic and other data-driven advertising both in Europe and in the United States.
Doug Stevenson, CEO of Vibrant Media, the contextual advertising agency that conducted the study, had this to say about the implications:
“Publishers will need to rapidly fill their inventory with ‘pro-privacy’ solutions that do not require consent, such as contextual advertising, native [advertising] opportunities and non-personalized ads.”
New platforms are emerging to help publishers manage customer consent for “privacy by design,” but the situation is sure to become more challenging in the ensuing months and years as compliance tracking the regulatory authorities ramps up.
It appears that some companies are being a little less proactive than is advisable. A recent study by compliance consulting firm CompliancePoint shows that a large contingent of companies, simply put, aren’t ready for GDPR.
As for why they aren’t, nearly half report that they’re taking a “wait and see” attitude to determine what sorts of enforcement actions ensue against scofflaws. Some marketers admit that their companies aren’t ready due to their own lack of understanding of GDPR issues, while quite a few others claim simply that they’re unconcerned.
I suspect we’re going to get a much better understanding of the implications of GDPR over the coming year or so. It’ll be good to check back on the status of implementation and enforcement measure by this time next year.
Longtime readers of the Nones Notes Blog have seen periodic articles about the evaluations done every year (since 1999) by the Harris Poll measuring the reputation of the 100 most visible U.S. corporations.
As perceived by the general public, in these annual rankings technology companies like Google, Facebook and Amazon have tended to outrank most other iconic brands across a variety of attributes.
It was almost as if the tech firms could do no wrong … whereas other famous corporate names were more susceptible to being hammered on a routine basis, depending on the “news of the day.”
The Harris Poll scores the 100 corporations on a variety of factors, including:
Products and services
Vision and leadership
The opinion research is conducted annually, beginning with consumer top-of-mind awareness of companies that have either excelled or faltered during the year. With the highest possible company rating being a 100, the Top 20 companies in the 2018 Harris Poll listing come in with reputation quotients ranging between 79 and 83:
#1. Amazon.com: 83.22 reputation quotient
#2. Wegmans: 82.75
#3. Tesla Motors: 81/96
#4. Chick-fil-A: 81.68
#5. Wald Disney Company: 81.53
#6. HEB Grocery: 81.14
#7. UPS: 81.12
#8. Publix Super Markets: 80.81
#9. Patagonia: 80.44
#10. Aldi: 80.43
#11: Microsoft: 80.42
#12. Nike: 80.24
#13. Kraft Heinz Company: 80.15
#14. Kellogg Company: 80.00
#15. L.L.Bean: 79.83
#16. Boeing Company: 79.80
#17. Costco: 79.78
#18. Kroger Company: 79.67
#19. Honda Motor Company: 79.60
#20. Proctor & Gamble: 79.32
It’s true that Amazon continues to be top-ranked (repeating its performance in 2017), but Google fell out of the Top 20 altogether, dropping from #8 position to #28.
Apple tumbled even more precipitously, falling from the #5 position to #29.
Facebook isn’t even in the Top 50 any longer; it languishes in the bottom half of the companies evaluated, now living in the neighborhood of companies like General Electric and YUM! Brands.
Of course, even the no-longer high-flying reputations of the tech firms can begin to compare with the bottom-dwellers – the companies who saw their reputations get hit with a ton of bricks over the past year and are now marooned at the very bottom of the Harris listing.
You know them: Equifax, Wells Fargo, and the Weinstein Company. How wonderful they are …
Lawmakers’ cringeworthy questioning of Facebook’s Mark Zuckerberg calls into question the government’s ability to regulate social media.
With the testimony on Capitol Hill last week by Facebook CEO Mark Zuckerberg, there’s heightened concern about the negative side effects of social media platforms. But in listening to lawmakers questioning Zuckerberg, it became painfully obvious that our Federal legislators have next to no understanding of the role of advertising in social media – or even how social media works in its most basic form.
Younger staff members may have written the questions for their legislative bosses, but it was clear that the lawmakers were ill-equipped to handle Zuckerberg’s alternatively pat, platitudinous and evasive responses and to come back with meaningful follow-up questions.
Even the younger senators and congresspeople didn’t acquit themselves well.
It made me think of something else, too. The questioners – and nearly everyone else, it seems – are missing this fundamental point about social media: Facebook and other social media platforms aren’t much different from old-fashioned print media, commercial radio and TV/cable in that that they all generate the vast bulk of their earnings from advertising.
It’s true that in addition to advertising revenues, print publications usually charge subscribers for paper copies of their publications. In the past, this was because 1) they could … but 2) also to help defray the cost of paper, ink, printing and physical distribution of their product to news outlets or directly to homes.
Commercial radio and TV haven’t had those costs, but neither did they have a practical way of charging their audiences for broadcasts – at least not until cable and satellite came along – and so they made their product available to their audiences at no charge.
The big difference between social media platforms and traditional media is that social platforms can do something that the marketers of old could only dream about: target their advertising based on personally identifiable demographics.
Think about it: Not so many years ago, the only demographics available to marketers came from census publications, which by law cannot reveal any personally identifiable information. Moreover, the U.S. census is taken only every ten years, so the data ages pretty quickly.
Beyond census information, advertisers using print media could rely on audit reports from ABC and BPA. If it was a business-to-business publication, some demographic data was available based on subscriber-provided information (freely provided in exchange for receiving those magazines free of charge). But in the case of consumer publications, the audit information wouldn’t give an advertiser anything beyond the number of copies printed and sold, and (sometimes) a geographic breakdown of where mail subscribers lived.
Advertisers using radio or TV media had to rely on researchers like Nielsen — but that research surveyed only a small sample of the audience.
What this meant was that the only way advertisers could “move the needle” in a market was to spend scads of cash on broadcasting their messages to the largest possible audience. As a connecting mechanism, this is hugely inefficient.
The value proposition that Zuckerberg’s Facebook and other social media platforms provide is the ability to connect advertisers with more people for less spend, due to these platforms’ abilities to use personally identifiable demographics for targeting the advertisements.
Want to find people who enjoy doing DIY projects but who live just in areas where your company has local distribution of your products? Through Facebook, you can narrow-cast your reach by targeting consumers involved with particular activities and interests in addition to geography, age, gender, or whatever other characteristics you might wish to use as filters.
That’s massively more efficient and effective than relying on something like median household income within a zip code or census tract. It also means that your message will be more targeted — and hence more relevant — to the people who see it.
All of this is immensely more efficient for advertisers, which is why social media advertising (in addition to search advertising on Google) has taken off while other forms of advertising have plateaued or declined.
But there’s a downside: Social media is being manipulated (“abused” might be the better term) by “black hats” – people who couldn’t do such things in the past using census information or Nielsen ratings or magazine audit statements.
Here’s another reality: Facebook and other social media platforms have been so fixated on their value proposition that they failed to conceive of — or plan for — the behavior inspired by the evil side of humanity or those who feel no guilt about taking advantage of security vulnerabilities for financial or political gain.
Now that that reality has begun to sink in, it’ll be interesting to see how Mark Zuckerberg and Sheryl Sandberg of Facebook — not to mention other social media business leaders — respond to the threat.
They’ll need to do something — and it’ll have to be something more compelling than CEO Zuckerberg’s constant refrain at the Capitol Hill hearings (“I’ll have my team look into that.”) or COO Sandberg’s litany (“I’m glad you asked that question, because it’s an important one.”) on her parade of TV/cable interviews. The share price of these companies’ stock will continue to pummeled until investors understand what changes are going to be made that will actually achieve concrete results.
Perhaps it’s the rash of daily reports about data breaches. Or the one-too-many compromises of protection of people’s passwords.
Whatever the cause, it appears that Americans are becoming increasingly interested in the use of biometrics to verify personal identity or to enable payments.
And the credit card industry has taken notice. Biometrics – the descriptive term for body measurements and calculations – is becoming more prevalent as a means to authenticate identity and enable proper access and control of accounts.
A recent survey of ~1,000 American adult consumers, conducted in Fall 2017 by AYTM Marketing Research for VISA, revealed that two-thirds of the respondents are now familiar with biometrics.
What’s more, for those who understand what biometrics entails, more than 85% of the survey’s respondents expressed interest in their use for identity authentication.
About half of the respondents think that adopting biometrics would be more secure than using PIN numbers or passwords. Even more significantly, ~70% think that biometrics would make authentication faster and easier – whether it be done via voice recognition or by fingerprint recognition.
Interestingly, the view that biometrics are “easier” than traditional methods appears to be the case despite the fact that fewer than one-third of the survey respondents use unique passwords for each of their accounts.
As a person who does use unique passwords for my various accounts – and who has the usual “challenges” managing so many different ones – I would have thought that people who use only a few passwords might find traditional methods of authentication relatively easy to manage. Despite this, the “new world” of biometrics seems like a good bet for many of these people.
That stated, it’s also true that people are understandably skittish about ID theft in general. To illustrate, about half of the respondents in the AYTM survey expressed concerns about the risk of a security breach of biometric data – in other words, that the very biometric information used to authenticate a person could be nabbed by others who could use it the data for nefarious purposes.
And lastly, a goodly percentage of “Doubting Thomases” question whether biometric authentication will work properly – or even if it does work, whether it might require multiple attempts to do so.
In other words, it may end up being “déjà vu all over again” with this topic …