Permission Marketing, Riga November 2008


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Michael Leander presentation "Permission based email marketing" from the Baltic Direct Marketing Conference in Riga on 26th. November 2008

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Permission Marketing, Riga November 2008

  1. 1. How to setup and successfullyexecute a permission based emailmarketing program• Michael Leander Nielsen• CEO, Fokus Integrated• Michael Leander Nielsen, 2008 1
  2. 2. Presented by Michael Leander at the BalticDirect Marketing Conference in Riga, Latviaon 26th. November 2008(c) Michael Leander Nielsen, 2008 2
  3. 3. Michael Leander• 10 years on the business side - CEO, midsize companies, IT software - VP sales/marketing, 2 * public companies - VP sales/marketing, 1* midsize 10 years on the agency/consulting side - Advertising agency, consultant - CEO, marketing consulting + ESP Contact details: Email: Newsletter: Michael Leander Nielsen, 2008 3
  4. 4. The agenda Why permission based email marketing? The email marketing evolution unCase studies How to get started with an email marketing program Deciding on a program that brings value to you and your audience Acquiring email permissions Tips to improve your email marketing efforts (get all tips at free web-seminar in January 2009) Email marketing trends, articles & insights. Free newsletter Michael Leander Nielsen, 2008 4
  5. 5. 1. Why permission based email marketing?What is it and why is it important?Permission and why permission based emailmarketingVarious stages of permission marketingMastering permission marketing as one steptowards engaging integrated marketingLegislation you must not ignore(c) Michael Leander Nielsen, 2008 5
  6. 6. What is permission based email marketing? Email newsletters Transactional emails Customer, product surveys E-mail marketing can be used for any purpose, targeted at anybody, anytime(c) Michael Leander Nielsen, 2008 6
  7. 7. CMO Trends 2009 – ongoing survey(c) Michael Leander Nielsen, 2008 7
  8. 8. CMO Trends 2009 – ongoing survey(c) Michael Leander Nielsen, 2008 8
  9. 9. Why e-mail marketing? Cost savings Why not? Demand vs EVP? (Email Value Proposition) Retention Quick response Critical mass? cycles Revenue Popular media Alternatives? Why? Resources? Reach Measurable Systems? Builds relationships Commitment? Targetable(c) Michael Leander Nielsen, 2008 9
  10. 10. E-mail seems the logical choice Faster Cheaper Targeted Response time Pr. contact/reach Reel time 1-4 weeks USD 10 Behavioral data New messages/activities based on.. • Opened • Click-response • Transactions • Opened – no USD 1,50 transaction 0 - 3 days • Click-response to pre-defined website URLs Direct Mail Email Direct Mail Email (c) Michael Leander Nielsen, 2008 10 Sources: Forrester, DMA, Gartner Group
  11. 11. Media channel effectiveness, simplifiedDIRECT & Cost per Cost per Convert to Actions Cost perOUTBOUND contact thousand action (sale) actionCanvas call by 1.400,- 1.400.000,- 20% 200 8.325,-sales rep.Telemarketing 100,- 100.000,- 5% 50 2.000,-Direct mail 50,- 50.000,- 2% 20 2.500,-E-mail 10,- 10.000,- 0,75% 7,5 1.333,-SMS/MMS 7,- 7.000,- 0,15% 1,5 4.667,-• Test to find your optimal mix• Decide: sender control or recipient control• Combinations are often most effective in terms of ROMI
  12. 12. 2. The email marketing evolution(c) Michael Leander Nielsen, 2008 12
  13. 13. e-mail marketing Generations Where are you? 3rd. generationValue Precision Marketing: • Highly relevant • Customized • “Mail Worth Opening” 2nd.generation • “Mail Worth Acting On” Permission Marketing: • Develop relationship • Responsible communication. • Loads of referrals 1st. generation • Poor segmentation • Great ROMI Broadcast, “SPAM”: • Minimal personalization • Trigger based initiated • high volume, low cost • Not yet fully committed • Integrated with surveys • “Send and forget” • Referrals start coming • Life cycle automation • Often irrelevant to receiver • ROMI improving • Interactive 80%(c) Michael Leander Nielsen, 2008 19% 1% Time/ Commitment 13
  14. 14. 3 Generations. From email marketing tocustomer lifecycle marketing automation • Attract G1: • Connect Email Permission • Engage marketing • Convert Attract • Retain Engage, G2: Automate/ • • • Connect Engage Convert Convert, Integrate Dialogue • • • Retain Interact Grow Retain & G3: • • Connect Engage Grow Customer lifecycle marketing • • Convert Retain automation • Interact • Grow(c) Michael Leander Nielsen, 2008
  15. 15. The goal for any marketer in 1997, 2009? Relevant offer A B C D Target Effective channel Right timing Nov 26(c) Michael Leander Nielsen, 2008 15
  16. 16. 3rd. Generation prospect/customer WheelDifferentiated approach addresses different needs SMS/Email 6 Travel & experience Excursions Car rental 7 Comming 5 Arrival 1. home Recommend destination to friends Transactional 8 Evaluation Example 4 Departure Behavioral & Reliving Travel Targeted 3 Past Sale Insurance Pre Departure Car rental 1 2 Pre Sale Sale 9 Next Pre Sale Profiling and knowledge of where the customer is in the ”wheel” opens up for a coordinated and relevant dialogue before sale, during and after
  17. 17. 2. Uncase studiesLearn from the mistakes of others• 95% of all email marketing programs are unsuccessful- 98% of them are managed without any clear objective- Very few email marketers care about the needs of the individualcustomers• The successful ones does(c) Michael Leander Nielsen, 2008 17
  18. 18. An abundance of ignorance Don’t send me Dubai offers, when I am already in Dubai .. Don’t offer me savings if you do not deliver outside United Kingdom.(c) Michael Leander Nielsen, 2008 18
  19. 19. Attention-Deficit Hyperactivity Disorder(ADHD) Someone please help Bob Poolefrom FastPitch (c) Michael Leander Nielsen, 2008 19
  20. 20. Offline instrumentation – no exception unCase study1. Unaddressed letter with 8 different items at min. cost of € 102. They have my permission to email3. I am a customer already4. Complex sale – lots of prerequisites5. Sender name not personal6. Not a word on their website (c) Michael Leander Nielsen, 2008 20
  21. 21. 3. How to get started with an email marketingprogramRules that apply to everyoneAsk five economists and youll get five different answers - six if one went to Harvard. Edgar R. Fiedler(c) Michael Leander Nielsen, 2008 21
  22. 22. ROMIReturn on Marketing Investment Also known as MROI – Marketing ROI. PS: Feel free to call it ”commonsense”
  23. 23. Your strategic objectives for email permission marketing • Build relationship Success defined by • Sell more stuff (cross-sell/upsell) • Profile customers RepeatCustomers Sales • Expand touchpoints with customers Business • Initiate and build relationship Success defined by • Customer acquisition • Profile prospects Convert to Prospects • Survey prospects customer CTR • Create referral mechanisms • Re-activate lost customers (win- Success defined by back activities) ? # referrals Win-back(c) Michael Leander Nielsen, 2008 23
  24. 24. Why – what is it all for?(c) Michael Leander Nielsen, 2008 24
  25. 25. What is your value proposition? What areyou offering that might interest me? • Outside in • ”Subscribe to our newsletter” isn’t a very strong USP (Unique Selling Proposition) • Be the first to learn more about new Pîrâgi recipes made with Kimmel beer – not milk or water (c) Michael Leander Nielsen, 2008 25
  26. 26. 3. Acquiring (email) permissionsLegislationWhen people sign-up to receive news from you,they buy into the promise you’ve made.Your obligation is to keep your promise.(c) Michael Leander Nielsen, 2008 26
  27. 27. The EU permission legislation• Opt-in legislation • You must receive permission to send e-mails/SMS/MMS containing sales/marketing related content • You must respect the opt-out/”no thank you”• The penalty for not being in compliance is severe • Large fines imposed on any company in breach • Largest fine in Denmark so far was in excess of USD 800.000• Lot’s of grey areas • Remember that consumers/business buyers define spammers – many marketers are perceived as spammers – even if they are in legal compliance • It is outrageously easy for consumers to blacklist a marketer (ask your email marketing service provider about this)(c) Michael Leander Nielsen, 2008 27
  28. 28. Prioritize: Whom are your Most WantedPermissions Fan / Partner Advocate Customer Trial Buyer Prospect Suspect Loyalty Dissatisfied Terrorist(c) Michael Leander Nielsen, 2008 28
  29. 29. Acquiring permission across all points ofinteractionIntegrated permission acquisition in all channels• Website• Campaign websites• Emails (signature)• Point of sale• Direct mail• Telemarketing• Customer service (inbound)• TV/Radio etc• Print advertising• Which channel is most effective for you?• Which channel deliver the most dedicated subscribers?• Be careful what you ask for !(c) Michael Leander Nielsen, 2008 29
  30. 30. Acquisition – mind setsGeneration 1 Advantages - More sign-ups - Better conversion Disadvantages rate - More work - Irrelevant / not personal messages(c) Michael Leander Nielsen, 2008 30
  31. 31. Disadvantages - Less sign-ups - More content, more work Acquistion mindsets Advantages - Qualifying Information - Relevant MessagingGeneration 2 - 3 -” Geo-tagging” - Lead ownership - Targeted content (c) Michael Leander Nielsen, 2008 31
  32. 32. Example – Denmarks largest furnitureretailer chain • First implemented in 2005 • Outperforms all other signup forms • 99% of all profiles are complete - The text Sex Birth year Win 1.000 each month Children at Tell us about yourself and home get a chance to win the Type of housing prize. You participate for as long as you are a subscriber.(c) Michael Leander Nielsen, 2008 32
  33. 33. 4. Tips to improve your email marketingeffortsLet’s see how many we can doMore tips at free web-seminar in January 2009(c) Michael Leander Nielsen, 2008 33
  34. 34. Let me explain…. or not?(c) Michael Leander Nielsen, 2008 34
  35. 35. The ”motor people” approach• Relentless focus on the target groupand the need of the individual• Focus on content – relevant content• Sales process aligned with thebuying process• Experimental mind – test, test, test •Offer/message first, then creativity• Return on Marketing Investment • Differentiated communication• Flowcharts to document activities • Creative to support the end-result, not creative for the sake of creativity• Combine on/offline activity formaximum effect • The Managing Director is not an influencer To make the motor run smoooth and with great effect, nothing is left to chance
  36. 36. Tip : Your MWRs Most Wanted Responses What are you trying to accomplish? What is your most important MWR? MOST WANTED RESPONSES?
  37. 37. Tip #3: Getting the attention you deserve From – never Subject – oh,change the sender very important address/name Preview pane: Be sure that your compelling reason to open is at the very top
  38. 38. Tip : Test test test• Test and measure• Measure and test• Constantly check how you are doing and ask yourself how you can improve your results.
  39. 39. Tip # 4: Differentiate your messages(content) with profiling 39
  40. 40. Tangible increase in your results What is profiling? A process of meeting customers needs by collecting information about them. This information can be obtained with volunteered/declared information from the customer or collected passively (observing the customer’s behavior patterns). Marketers actively applying profiling get better results • Open rate by 10 – 30% • Click-through rate by 20-40% • Conversion to buy ratio by as much as 80-90% • Lifetime of a subscriber increases dramatically • Decrease of opt-out rate(c) Michael Leander Nielsen, 2008 40
  41. 41. First + last NameMy B2B profile Email My B2C profile Position? Mobile # Influence? Male 39-45 yrs. Old Married (wife) Size of company Kids (#, sex, age) Budget for X Annual use of Y Income (no) Assets Bying process Property When, how CFO’s Lifestyle Soft data Preferences Preferential Status of X information Basic Demographics Basic A press photo conceptualized by Affluent demographics a German creative who spent too much neighbourhood? time in Berlin…. (c) Michael Leander Nielsen, 2008 41
  42. 42. Targeted content – example B2B Decision Influencer Technical Other parties maker dude Finance offer X X New competitor X X benchmark Company news X X X X and stuff IfExecutive White If clicked X or clicked No If clicked Y Paper Y XProduct news with X a techie angle Do not underestimate the power of good content, nor the work involved in creating good content 42 (c) Michael Leander Nielsen, 2008
  43. 43. These 10 tips will get you offto a good start1. Start with the development of your permission marketing strategy2. Ensure that you are offering a compelling reason for people to opt-in3. Create a certain amount of relevant and unique content4. Calculate your expected ROMI5. Build your permission database by utilizing all possible channels6. Ensure that you have systems in place to handle opt-in, opt-out, measurement, individualizing and preferably integrated with your CRM/ERP system7. Combine media-channels for optimal effect and performance8. Work with your content, timing and creative9. Expect quick results quick - and improved results over time10. Consult an expert if in doubt(c) Michael Leander Nielsen, 2008 43
  44. 44. No more miracles? Advice: Successful permission marketing doesn’t happen over night. Planning and a long term perspective is required(c) Michael Leander Nielsen, 2008 44
  45. 45. Thank you for being theperfect listener• Good luck with permission based e-mailmarketing in the future• Questions or comments – drop me a line• Sign-up to the Meemoo2 MarketingbossNewsletter here: Michael Leander Nielsen, 2008 45