U.S. Consumers Souring on Marketing Outreach
U.S. consumers are reaching their breaking point when it comes to advertisements, with 40 percent of them unsubscribing from companies' marketing texts and emails at least once a week, significantly higher than the global average of 25 percent, according to new research from GetApp, providers of a software recommendations engine for small businesses.
The research also found that 56 percent of U.S. consumers will unsubscribe if they receive four or more marketing messages from the same company within 30 days. Meanwhile, 44 percent will opt out even sooner, showing a clear intolerance for high-frequency marketing.
U.S. consumers are also more likely to label messages as spam or take further actions to block unwanted communications. In fact, 94 percent of them have taken action against unwanted marketing communications, including marking content as spam or junk (72 percent), using anti-spam tools (53 percent), and reviewing website and app privacy settings (26 percent). And more than a third (36 percent) who unsubscribed claim they never subscribed or don't remember subscribing, raising concerns about deceptive practices in marketing.
"The volume of marketing content has reached a tipping point for many U.S. consumers," said David Jani, a marketing analyst at GetApp, in a statement. "Brands need to strike a better balance between driving campaign performance and respecting their customers. Consumers are making it clear that they won't hesitate to disengage when bombarded with irrelevant or excessive marketing."
Personal data concerns fuel disengagement
The research also found that consumers aren't just overwhelmed by the volume of ads; they’re growing increasingly protective of their personal data. More than half (52 percent) feel it's difficult to prevent marketers from using their personal information, and 60 percent are unwilling to share their data in exchange for targeted ads. This suggests a lack of trust in how companies handle data.
To address this, GetApp suggests that companies should streamline communications, ensuring they're not bombarding their audience across multiple channels. Tools such as email marketing, SMS management, or CRM systems can help track and manage the frequency of messages.
Respecting audience data is equally important, the firm said, urging marketers to use proper data management tools to safeguard and appropriately use this data. Then, they should collect only necessary information and offer incentives, such as loyalty schemes or exclusive offers, to encourage data sharing. Additionally, providing a transparent opt-out process empowers consumers and helps maintain trust, it said further.
Ethical advertising and data practices are essential, as deceptive tactics not only damage reputations but can also lead to legal issues, according to GetApp.
Most consumers see companies as the most responsible party for protecting customer data privacy. However, growing mistrust by consumers of companies not following regulations is leading to reduced brand loyalty and calls for punitive action, according to the GetApp data. It showed that 89 percent of U.S. consumers think deceptive marketing practices should receive substantial fines.
Additionally, the research found that nearly a third (30 percent) of U.S. consumers don't like companies tracking their online data for personalized ad experiences, compared to a global average of 19 percent.
Still, most (73 percent) consumers say they prefer ads that have been adjusted to their tastes rather than generic ones. This trend suggests there is a missed opportunity for marketers if the negative perceptions of personal data tracking persist, according to GetApp.
Misleading content and false promises about products from companies have led to consumers abandoning brands. Notably, 40 percent of U.S. consumers say they have previously stopped doing business with companies that use deceptive marketing tactics—higher than the global average of 33 percent. Inversely, 32 percent of global consumers would alert family, friends, or colleagues about deceptive marketing compared to 29 percent of Americans.
Most U.S. consumers believe businesses are not playing by the rules when it comes to marketing communications. Almost half (48 percent) don't trust that companies are following regulatory guidelines for marketing communications.
"There are signs that American consumers are becoming resistant to practices that have been taken for granted by digital marketers, such as personalized marketing or third-party data," Jani said. "Understanding what can prompt consumers to report a business can help avoid practices that can be detrimental."
But not all is lost. When trust is low, companies can turn consumer perceptions around immediately, according to GetApp. THey can do this by demonstrating data transparency and upholding good data practices, using CRM software and marketing analytics tools to manage user data retention and ensure regulatory compliance, and usuing social listening to monitor consumer sentiment and respond quickly if controversies arise.