Multi-Channel Convergence - Bridging Offline & Online
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Multi-Channel Convergence - Bridging Offline & Online

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Multi-Channel Convergence - Bridging Offline & Online Multi-Channel Convergence - Bridging Offline & Online Presentation Transcript

  •  
  • Dan Parzych VP Analytics Presented by: MULTI-CHANNEL CONVERGENCE: THE CONSUMER BATTLE BETWEEN ONLINE AND OFFLINE Michael Bloom General Manager Datran Direct
  • Introductions…
    • Industry leading cooperative database serving the direct mail publishing and continuity industries
    • 120 million unique direct mail consumers with validated postals
    • Direct response purchase and payment behavior on every record
    • Leading email inbox marketer in the industry
    • Multi-channel and offline division of Datran Media
    • 175 million unique and permissioned email addresses
      • 50 million multi-channel records with validated postals
      • 30 million multi-channel records with phones numbers
    • Direct response email behaviors on every record
    View slide
  • Agenda…
    • Current status of the direct mail channel
    • Value of multi-channel marketing
    • 10 laws of multi-channel marketing
    • 10 actions to grow YOUR business through multi-channel marketing
    What You Will Learn Today… View slide
  • $ $ $ Postal Costs UP Paper Costs UP Acquisition Costs UP Response Rates, Lifetime Values, and Profits ALL DOWN Direct Mail Industry at a Crossroads
  • Mailable Universes Shrinking and the Direct Mail Industry is In Crisis ACTIVES EXPIRES
  • Multi-Channel Success in Traditional Direct Mail Verticals Publishing Telecommunications & Cable Credit Cards Catalogs Non-Profit Insurance Direct Mailers Cutting Volume and Shifting Budgets to Online Into Multi-Channel Platforms
  • What is Multi-Channel Marketing? INTEGRATED…..OUTBOUND…..DIRECT MARKETING…..VIA MULTIPLE CHANNELS Direct Mail Email Marketing Telemarketing Focus today on DM and Email Search engine marketing and TV Infomercials are not outbound direct marketing channels Mobile Marketing
  • Multi-Channel Marketing is Critical Because Consumers Today have MORE…
    • Channel Choice
    • Decision Power
    • Product Options
    • Product Knowledge
    • Price Sensitivity
    • Hectic Lifestyle
    • Mailbox Clutter
    • Demand for Convenience
  • The NEW Age-Old Adage of Direct Marketing REACH THE………… RIGHT CONSUMER WITH THE….. RIGHT OFFER AT THE….. RIGHT TIME VIA THE….…….….. RIGHT CHANNEL
  • The 10 Laws of Multi-Channel Marketing MYTH or FACT??? Introducing the …… Michael Dan
  • DIRECT MAIL AND EMAIL RESPONDERS ARE DIFFERENT CONSUMER SEGMENTS #1 MYTH!
  • Datran Media & Alliant Data Joint Research Study Direct Mail Consumers Email Consumers 52% Match Rate The Same Customers Transacting via Direct Mail Are Also Transacting via Email
  • New Insights in Consumer Multi-Channel Preferences The SAME consumers are buying from BOTH direct mail AND email channels
    • 44% have bought Family-Oriented products from BOTH channels
    • 40% have bought Beauty and Diet products from BOTH channels
  • Demographic Profiles are MUCH More Alike than Different Direct Mail vs. Email Age Income Direct Mail Email Email INDEX Gender 36 5% 14% 70+ 60 9% 15% 61-70 109 24% 22% 51-60 113 27% 24% 41-50 122 22% 18% 31-40 186 13% 7% 20-30 70 16% 23% $100K+ 93 14% 15% $75 - 100K 114 24% 21% $51 - 75K 113 26% 23% $26 - 50K 111 20% 18% HHI < $25K 82 56% 68% FEMALE 138 44% 32% MALE
  • INTERNET SOURCED LIST RENTALS DO NOT PERFORM WELL IN DIRECT MAIL #2 MYTH!
    • 85% Continuation Rate on Postal Tests
    • 60% Continuation Rate on Telemarketing Tests
    Datran Direct delivers internet sourced postal and phone direct response hotline list rentals m onthly , w eekly , and EVEN d aily Winning Categories: Merch Buyers Auto Insurance Credit Card Applicants & Rejects Debt Consolidation
  • Case Study with Leading Multi-Channel Agency Red Clay Media Compiled Lists vs. Internet Sourced Lists
      • PRODUCT: Elective Medical Procedures with $3K price point per procedure
      • MARKETS: Chicago Kansas City St. Louis
      • COMPILED LIST: Target core demographic segments (Age 23-50, HHI > $75K)
      • INTERNET LIST: Target 0-30 day active direct response email consumers
      • BUYING PROCESS: Direct Mail  Inbound Telemarketing  Doctor Appointment
      • KEY PERFORMANCE INDICATOR: Cost Per Appointment
    Direct Mailer in the Health Care Industry
  • Internet Sourced List Outperformed Compiled Lists in EVERY Market 46% LOWER CPA 30% LOWER CPA 42% LOWER CPA
  • INTERNET SOURCED SELF REPORTED CONSUMER DATA IS NOT ACCURATE #3 MYTH!
  • Internet Sourced Self Reported Postal Data Is Very Accurate
    • Consumers want to get something from online registrations – Mortgage, Credit Card, Life Insurance Policy, etc.
    • Many websites validate consumer Registrations at point of entry
    • Datran Direct validates all postals nightly – Delivery Point Validation, CASS Validation
      • 78% of self reported postals PASS Delivery Point and CASS Validation
      • Dates of Birth are confirmed accurate (except January 1 st spike)
    • High match rates with national consumer databases ( Alliant, Acxiom, Experian, IBehavior )
  • TARGETING RECENT RESPONDERS IS MORE IMPORTANT FOR EMAIL THAN FOR DIRECT MAIL #4 FACT!
  • Recency is More Important for Email than for Direct Mail
    • Direct mail consumers have a much longer “shelf life” than email consumers
      • Direct mail recency measured in months and quarters (response 95% complete in 60 days)
      • Email recency measured in hours and weeks (response 95% complete in 5 days)
    • Email recency is predictive of DM response BUT DM recency is NOT predictive of email response
      • DM buyers did not perform any better in email than random consumer selects
    • Email inboxes are MUCH harder to reach than postal mailboxes
      • Only 1 mailbox but consumers have multiple email inboxes (1.4 per person on average)
        • Expired and undeliverable email addresses MUST be removed from lists
      • Delivery to the email inbox is NOT guaranteed like delivery to the postal mailbox
      • Consumers use email inboxes for different purposes (transactional vs “disposable” emails)
  • SENDING RELEVANT MESSAGES IS CRITICAL FOR DIRECT MAIL BUT LESS IMPORTANT FOR EMAIL #5 MYTH!
  • Relevant Messages are as Important For Email as for Direct Mail
    • Irrelevant messages in direct mail are costly and wasteful at $.50/unit
    • Irrelevant or inappropriate email messages are risky because they lead to high spam reports and complaints
    • Internet Service Providers (ISPs) monitor consumer spam and complaint ratios very carefully
    • Excessive complaints and high undeliverable bounce rates cause BAD things to happen
      • Loss of whitelisted bandwidth
      • Blacklisting
      • Complete shutdown of delivery channel
  • CONSUMERS USE EMAIL FOR SHOPPING BUT RELY ON DIRECT MAIL FOR BUYING #6 MYTH!
  • Consumers Use Email and Direct Mail for both Shopping AND Buying Consumers Do Not Have a Preferred Contact Strategy SUCCESSFUL MULTI-CHANNEL CONTACT STRATEGIES LEVERAGE THE STRENGTH OF EACH CHANNEL TO DELIVER SPEED AND CONVENIENCE AND ENABLE MULTIPLE BUYING PATHS
    • Email  Direct Mail  Website  Order
    • Email  Website or Inbound Telemarketing  Order
    • Email  Website  Order
    • Direct Mail + Email  Website  Order
    • Direct Mail + Email  Outbound Telemarketing  Order
    • Email  Direct Mail  Email  Outbound Telemarketing  Order
  • Successful Multi-Channel Contact Strategies Enable MULTIPLE Buying Paths Email Direct Mail Website Telemarketing ORDERS
  • MULTI-CHANNEL CONSUMERS ARE MORE VALUABLE THAN SINGLE-CHANNEL CONSUMERS #7 FACT!
  • Multi-Channel Marketing Delivers Higher Response Rates & Higher Order Size SEGMENT B EMAIL ONLY SEGMENT A DIRECT MAIL ONLY SEGMENT C DM + EMAIL 15-25% Higher Order Size 15-25% Higher Response
  • OFFERS THAT WORK IN DIRECT MAIL WILL ALSO WORK IN EMAIL #8 FACT!
    • Direct mail creatives can be repurposed for email
    • Core principles of winning DM creative also apply for email
      • Precise and Credible Subject Line
      • Content Personalization
      • Engaging Short Copy
      • Visual Interest
      • Prominent Call to Action
    • Increase response with consistent messaging across channels
    • Email is the PERFECT platform for testing direct mail offers and creatives
      • Less expensive
      • Fast results
    Will Also Work in Email The Same Offers That Perform in Direct Mail
  • LEADING DIRECT MARKETERS ARE ALREADY SUCCESSFUL AT MULTI-CHANNEL MARKETING #9 MYTH!
  • Few Direct Marketers are Fully Leveraging Integrated Multi-Channel Marketing Strategies
    • CHANNEL SILOS
      • Direct mail and email channels managed by different business units
      • Database systems do not integrate channels into a single platform
    • COMPETING METRICS
      • Performance measured at channel rather than at overall customer level
      • Channels compete for revenues, profits, and share of customer wallet
    • COVERAGE GAPS
      • Less than 15% email coverage on direct mail records
      • High percentage of emails are undeliverable or unresponsive
  • #10 MULTI-CHANNEL MARKETING REQUIRES HEAVY DEVELOPMENT AND INVESTMENT MYTH!
  • 10 Opportunities to Grow YOUR Business Through Multi-Channel Marketing
    • VISION . Begin with a multi-channel vision and test plan. Vision is free and testing is cheap.
    • MISSION . Expand your Mission Statement. You sell TRANSPORTATION, not horse and buggy rides.
    • EMAILS . Incent consumers to provide multi-channel information. Ask for emails with every contact.
    • EAPPENDS . Use eAppends and phone appends to enhance direct mail records. Benefits far outweigh costs.
    • BUDGET . Allocate 10% of your marketing budget to multi-channel testing. NOT testing will cost MUCH more.
    • LISTS . Consider new internet sourced lists for direct mail testing. Online behavioral lists perform in DM!
    • STRATEGIES . Create multi-channel contact strategies that enable multiple buying paths. Simplify buying.
    • TESTING . Use email channel to test new offers and creatives for direct mail. It’s cheaper and faster.
    • CREATIVES . Repurpose direct mail creatives for email. Consistent messaging boosts response.
    • METRICS . Track campaign performance at an enterprise/consumer level rather than a channel level. Win-win!
  • Thank You! Q & A