JHU Marketing Information Systems Instructor: Bruce Gregoire Desktop Marketing Solutions Falls Church VA [email_address]

Course Overview This course explores the intersection of modern marketing methods with the technologies that support them. It describes the world of Database Marketing, including the principles of marketing analytics, RFM (Recency, Frequency, and Monetary Value) analysis, customer lifetime value analysis, and data mining. It then goes on to show how these fundamental approaches are now strategically being employed, in various forms, to the interactive world of marketing. In many ways, however, the economics of these strategies in the e-world have changed dramatically, requiring re-thinking of their proper application.

This course explores the intersection of modern marketing methods with the technologies that support them. It describes the world of Database Marketing, including the principles of marketing analytics, RFM (Recency, Frequency, and Monetary Value) analysis, customer lifetime value analysis, and data mining. It then goes on to show how these fundamental approaches are now strategically being employed, in various forms, to the interactive world of marketing. In many ways, however, the economics of these strategies in the e-world have changed dramatically, requiring re-thinking of their proper application.

Course Overview Finally, this course studies Customer Relationship Management (CRM), from three standpoints: strategic, operational, and analytical. This includes the supporting technologies that have allowed organizations to scale up relationship marketing, from the model of our great-grandfather’s corner grocery store to today’s global, integrated enterprise.

Finally, this course studies Customer Relationship Management (CRM), from three standpoints: strategic, operational, and analytical. This includes the supporting technologies that have allowed organizations to scale up relationship marketing, from the model of our great-grandfather’s corner grocery store to today’s global, integrated enterprise.

Session I: Direct Marketing Objectives: Review of syllabus Understand Direct Marketing fundamentals and approaches (including direct mail). Understand the Key Ideas of customer segmenting and profiling of customers, for business and consumer markets.

Objectives:

Review of syllabus

Understand Direct Marketing fundamentals and approaches (including direct mail).

Understand the Key Ideas of customer segmenting and profiling of customers, for business and consumer markets.

Intro to Direct Marketing Definition of Direct Marketing: Bob Stone, Martin Baier, and Henry Hoke together once described direct marketing as... “an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored in a database.” Targeted , measurable, repeatable

Definition of Direct Marketing: Bob Stone, Martin Baier, and Henry Hoke together once described direct marketing as... “an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored in a database.”

Targeted , measurable, repeatable

Database Marketing Yesterday

Database Marketing Yesterday Expensive, large, slow, unwieldy mainframe programs $1 - $25 million software investment 5 – 25 million records capacity Turnaround in days Mid 90’s-2002: evolution toward Customer Relationship Management (CRM)

Expensive, large, slow, unwieldy mainframe programs

$1 - $25 million software investment

5 – 25 million records capacity

Turnaround in days

Mid 90’s-2002: evolution toward Customer Relationship Management (CRM)

Database Marketing Today

Database Marketing Today Affordable, maintainable, flexible, scalable Emphasis on “connections” and integration, (multiple data sources, laptop synchronization), NOT “selections” of target audience

Affordable, maintainable, flexible, scalable

Emphasis on “connections” and integration, (multiple data sources, laptop synchronization), NOT “selections” of target audience

Database Marketing Tomorrow

Database Marketing Tomorrow Smaller, lightweight solutions Surgical Targeting (One-to-One marketing) Smart - Responsive to mid-course corrections (e.g. customer buying patterns) Emphasis on tools for “selections” of target audience (e.g. RFM)

Smaller, lightweight solutions

Surgical Targeting (One-to-One marketing)

Smart - Responsive to mid-course corrections (e.g. customer buying patterns)

Emphasis on tools for “selections” of target audience (e.g. RFM)

Intro to Direct Marketing For more definitions: All you need at http://www.knowthis.com Browse and bookmark this page!

For more definitions: All you need at http://www.knowthis.com

Browse and bookmark this page!

Direct Mail Direct Mail characteristics “ Direct response”, not necessarily sales (Permission marketing/Seth Godin) Antithesis of Super Bowl ads Consumer Direct Marketing driven by zip codes, demographics, & buying patterns Other DM characteristics (versus store sales) include high margins, low shipping charges, low returns.

Direct Mail characteristics

“ Direct response”, not necessarily sales (Permission marketing/Seth Godin)

Antithesis of Super Bowl ads

Consumer Direct Marketing driven by zip codes, demographics, & buying patterns

Other DM characteristics (versus store sales) include high margins, low shipping charges, low returns.

Direct Mail Direct Mail characteristics B-B DM driven by SIC, firmagraphics , buying patterns Response Analysis a Numbers game – but watch out for averages (e.g need segments) Response analysis by list, source code most common

Direct Mail characteristics

B-B DM driven by SIC, firmagraphics , buying patterns

Response Analysis

a Numbers game – but watch out for averages (e.g need segments)

Response analysis by list, source code most common

E-targeting e-Commerce, custom web pages facilitate “one-to-one” marketing (Lands End example) The economics of e-targeting are vastly different from the postal world.

e-Commerce, custom web pages facilitate “one-to-one” marketing (Lands End example)

The economics of e-targeting are vastly different from the postal world.

Customer Relationships, retention rates Cost of Acquisition 3x-9x retention. Thus, you need Loyalty Programs! Sell new products/services to existing customers Convenience stores, supermarkets Retention rates vary widely, by industry Health Insurance – high retention Telecom churn – low retention

Cost of Acquisition 3x-9x retention. Thus, you need Loyalty Programs!

Sell new products/services to existing customers

Convenience stores, supermarkets

Retention rates vary widely, by industry

Health Insurance – high retention

Telecom churn – low retention

Database Marketing Definition: Database Marketing is the fundamental approach for customer tracking, to drive loyalty programs. “ Customer Tracking” includes, in descending priority: Purchase history Demographics (Firmagraphics for orgs) Survey information.

Definition: Database Marketing is the fundamental approach for customer tracking, to drive loyalty programs.

“ Customer Tracking” includes, in descending priority:

Purchase history

Demographics (Firmagraphics for orgs)

Survey information.

Session I: Takeaways All about targeting: offer, message Focus on Retention, Retention, Retention Buying history trumps survey info and demographics Tracking w/Source code is key

All about targeting: offer, message

Focus on Retention, Retention, Retention

Buying history trumps survey info and demographics

Tracking w/Source code is key

Session II: Strategic DB Marketing Review of Session I Counter examples from readings Lifetime Value Analysis Customer segmenting/profiling RFM Analysis Data-driven marketing communications Lab – Begin Project #1: Analysis of RFM data

Review of Session I

Counter examples from readings

Lifetime Value Analysis

Customer segmenting/profiling

RFM Analysis

Data-driven marketing communications

Lab – Begin Project #1: Analysis of RFM data

Counter Examples Disloyal customers” Hughes P 15: “Freq. Flyer loyalty” P. 72: loyalty is not equal to popularity (NWA) “Recent buyers tend to place large orders, have higher response rates, buy more per order” P. 106 The Universal Caveat: “It Depends!”

Disloyal customers” Hughes P 15:

“Freq. Flyer loyalty” P. 72: loyalty is not equal to popularity (NWA)

“Recent buyers tend to place large orders, have higher response rates, buy more per order” P. 106

The Universal Caveat: “It Depends!”

Lifetime Value Analysis

Lifetime Value Analysis “The present value of the profit that you will realize on the average new customer during a given number of years” - A. Hughes More of an art than a science Risk factor: variables change, e.g. changes in product offerings, competition.

“The present value of the profit that you will realize on the average new customer during a given number of years” - A. Hughes

More of an art than a science

Risk factor: variables change, e.g. changes in product offerings, competition.

Lifetime Value Analysis Risk factor: variables change, e.g. changes in product offerings, competition. Life Cycle Example: Training classes, retention thru series of 7 classes Hughes P. 45 Lifetime Value table

Risk factor: variables change, e.g. changes in product offerings, competition.

Life Cycle Example: Training classes, retention thru series of 7 classes

Hughes P. 45 Lifetime Value table

Lifetime Value Analysis Direct marketing approaches (versus interactive) achieve higher Customer Lifetime Value – with a caveat! Higher LTV depends on 3 variables: - If Retention rate goes up, LTV goes up - If Variable costs goes down, LTV goes up - If Acquisition costs go down, LTV goes up

Direct marketing approaches (versus interactive) achieve higher Customer Lifetime Value – with a caveat!

Higher LTV depends on 3 variables:

- If Retention rate goes up, LTV goes up

- If Variable costs goes down, LTV goes up

- If Acquisition costs go down, LTV goes up

Lifetime Value Analysis Retention Rate: the single most important variable for marketers Think of Retention Rate as a measure of “Customer Loyalty” Once again, think “Repeat Customers” Most important marketing function: “Win back lapsed customers”

Retention Rate: the single most important variable for marketers

Think of Retention Rate as a measure of “Customer Loyalty”

Once again, think “Repeat Customers”

Most important marketing function: “Win back lapsed customers”

Lifetime Value Analysis Lifetime Value spreadsheet: substitute your own organization’s numbers Small Group discussion: How to provide addl. Products/services that will enhance customer loyalty in your organization.

Lifetime Value spreadsheet: substitute your own organization’s numbers

Small Group discussion: How to provide addl. Products/services that will enhance customer loyalty in your organization.

Customer Segmenting/Profiling Segment by spending: Bronze, Silver, Gold – A. Hughes Profile by demographics/zip code: “Birds of a feather flock together” Demo: www.Claritas.com Click “Free Stuff” – then “You are where you live” You don’t need to sell something! (advance to the next stage)

Segment by spending: Bronze, Silver, Gold – A. Hughes

Profile by demographics/zip code: “Birds of a feather flock together”

Demo: www.Claritas.com Click “Free Stuff” – then “You are where you live”

You don’t need to sell something! (advance to the next stage)

RFM Analysis: Overview Used to find “Likely Responders” All customers are not alike – score them! RFM based on human behavior The 80-20 rule: 80% of response comes from 20% of customers Demo of Mail Order Manager (MOM)

Used to find “Likely Responders”

All customers are not alike – score them!

RFM based on human behavior

The 80-20 rule: 80% of response comes from 20% of customers

Demo of Mail Order Manager (MOM)

Lab: RFM Analysis Begin Project #1: Analysis of RFM sample data

Begin Project #1: Analysis of RFM sample data

Session II Takeaways Lifetime Value Analysis is the single best measure of customer loyalty – and marketing effectiveness. All customers and prospects are not alike. Don’t treat them as such RFM helps to score your customers into segments

Lifetime Value Analysis is the single best measure of customer loyalty – and marketing effectiveness.

All customers and prospects are not alike. Don’t treat them as such

RFM helps to score your customers into segments

Session III: Strategic DB Marketing Review of Session II Counter examples from readings Apply RFM models to a set of data Use marketing data to drive customer communications. Understand the concept of relational databases Lab – Continue Project #1: Analysis of RFM data

Review of Session II

Counter examples from readings

Apply RFM models to a set of data

Use marketing data to drive customer communications.

Understand the concept of relational databases

Lab – Continue Project #1: Analysis of RFM data

Session III Review of Session II Lifetime Value Analysis: Used for? risk factors? Customer segmenting/profiling: why? RFM: Why R-F-M? Used for?

Review of Session II

Lifetime Value Analysis: Used for? risk factors?

Customer segmenting/profiling: why?

RFM: Why R-F-M? Used for?

Session III. Counter Examples “A good model takes a week or two to run”, thus RFM is better

“A good model takes a week or two to run”, thus RFM is better

RFM Approaches Definition: RFM (Recency, Frequency and Monetary value) – a customer scoring system A study of Human Behavior: “What have you done for me lately?” All customers are not alike – score them Used to find “Most Likely to Respond” (may overlap “best customers”)

Definition: RFM (Recency, Frequency and Monetary value) – a customer scoring system

A study of Human Behavior: “What have you done for me lately?”

All customers are not alike – score them

Used to find “Most Likely to Respond” (may overlap “best customers”)

RFM Approaches Hard coding versus exact quintiles – ease of use/understanding versus accuracy Recency Frequency Monetary Value

Hard coding versus exact quintiles – ease of use/understanding versus accuracy

Recency

Frequency

Monetary Value

RFM Approaches Can be done as “Site RFM” or “Household RFM”. Individual transactions are aggregated at a business/household site location (e.g. Dell). Must be calculated as a snapshot in time, before a campaign

Can be done as “Site RFM” or “Household RFM”. Individual transactions are aggregated at a business/household site location (e.g. Dell).

Must be calculated as a snapshot in time, before a campaign

RFM Approaches RFM Approach #1 - Hard coding Generally easier to implement Easier to understand enterprise-wide Mail Order Manager demo RFM scores displayed, justify discounts to insure continued loyalty

RFM Approach #1 - Hard coding

Generally easier to implement

Easier to understand enterprise-wide

Mail Order Manager demo

RFM scores displayed, justify discounts to insure continued loyalty

RFM Approaches RFM Approach #2: Exact Quintiles Preferred by Arthur Hughes Equal mail counts in each cell Harder to understand, but... Easier for statistical testing WiseGuys demo

RFM Approach #2: Exact Quintiles

Preferred by Arthur Hughes

Equal mail counts in each cell

Harder to understand, but...

Easier for statistical testing

WiseGuys demo

RFM Approaches RFM Approach #3: Raw values (not scores) Most commonly used Easiest to calculate Think “Buckets” for scoring, as in “0-3 mos, 4-6 mos” etc. Often results in uneven mail counts in certain segments. The risk is results not statistically valid

RFM Approach #3: Raw values (not scores)

Most commonly used

Easiest to calculate

Think “Buckets” for scoring, as in “0-3 mos, 4-6 mos” etc.

Often results in uneven mail counts in certain segments. The risk is results not statistically valid

Data Driven Marketing Communications Frequent Flyer programs Multi-step programs (e.g. Sales Force leads) – timing is everything One-to-one Marketing: Peppers & Rogers

Frequent Flyer programs

Multi-step programs (e.g. Sales Force leads) – timing is everything

One-to-one Marketing: Peppers & Rogers

Relational Database Concepts Relationships Parent-Child: One-to-one (e.g. Cust-to-state) One-to-many (Cust-to-orders) Data Dictionary: Field length (zip+4 = 10) Field type (character) Validation rules (nnnnn-nnnn)

Relationships

Parent-Child:

One-to-one (e.g. Cust-to-state)

One-to-many (Cust-to-orders)

Data Dictionary:

Field length (zip+4 = 10)

Field type (character)

Validation rules (nnnnn-nnnn)

Relational Database Benefits Access is relational. Excel is flat file. Minimizes redundant data (e.g. name, addr. changes) vs. flat file Faster access time Flexibility in data format Facilitates “Integrated DB”: One source (thus, one place to look for data – no “silos”)

Access is relational. Excel is flat file.

Minimizes redundant data (e.g. name, addr. changes) vs. flat file

Faster access time

Flexibility in data format

Facilitates “Integrated DB”: One source (thus, one place to look for data – no “silos”)

Lab: RFM Project #1 Continue Project #1: Analysis of RFM data Continue Cloned customer analysis Make a list of the 5-2-2 customers (in Excel) How do they differ from non 5-2-2 customers? Buying habits? Demographics/Firmagraphics? Geography? Job Titles? Develop a strategy on how to “clone” them

Continue Project #1: Analysis of RFM data

Continue Cloned customer analysis

Make a list of the 5-2-2 customers (in Excel)

How do they differ from non 5-2-2 customers?

Buying habits? Demographics/Firmagraphics?

Geography? Job Titles?

Develop a strategy on how to “clone” them

Lab: RFM Project #1 Continue customer segmenting analysis Make a list of the 5-1-1 customers (in Excel) Develop a strategy on how to elevate them from “silver” to “Gold” status Deliverables: All of the above

Continue customer segmenting analysis

Make a list of the 5-1-1 customers (in Excel)

Develop a strategy on how to elevate them from “silver” to “Gold” status

Deliverables: All of the above

Session III: Takeaways All customers and prospects are not alike. Don’t treat them as such RFM helps to score your customers into segments Relational marketing databases have distinct advantages over flat file approaches Lots of marketing database resources are available for further study

All customers and prospects are not alike. Don’t treat them as such

RFM helps to score your customers into segments

Relational marketing databases have distinct advantages over flat file approaches

Lots of marketing database resources are available for further study

Session IV Strategic Database Marketing Guest Speaker Essential components of a Marketing DB Know where to find marketing database resources Evaluate three alternative approaches Lab - Complete Project #1: Analysis of RFM data

Guest Speaker

Essential components of a Marketing DB

Know where to find marketing database resources

Evaluate three alternative approaches

Lab - Complete Project #1: Analysis of RFM data

Session IV Strategic Database Marketing Understand the essential components that qualify a marketing database to be used properly.

Understand the essential components that qualify a marketing database to be used properly.

Eight keys to an Authentic DB Marketing System 1. Matchback Response Reporting - by customer ID - by name/org, or Pass along within Org - Testing supported with “HoldBack” 2. Two Source codes supported. 3. Marketing Analytics supported Attrition/Retention reporting Customer LTV reporting

1. Matchback Response Reporting

- by customer ID

- by name/org, or Pass along within Org

- Testing supported with “HoldBack”

2. Two Source codes supported.

3. Marketing Analytics supported

Attrition/Retention reporting

Customer LTV reporting

Eight keys to an Authentic DB Marketing System 4. Ease of use Uses point and click queries. Used by marketers & execs, not techies. Installs in days, not months/years 5. Proper relational structure - Do not use consumer application for B-B environment

4. Ease of use

Uses point and click queries. Used by marketers & execs, not techies.

Installs in days, not months/years

5. Proper relational structure

- Do not use consumer application for B-B environment

Eight keys to an Authentic DB Marketing System 6. Prospect import supported - Usually lacking in Acctg systems. 7. Ease of Integration - e.g. Web shopping cart for orders - Outlook for contacts 8. All basic marketing fields in place - Job title - No email flag

6. Prospect import supported

- Usually lacking in Acctg systems.

7. Ease of Integration

- e.g. Web shopping cart for orders

- Outlook for contacts

8. All basic marketing fields in place

- Job title

- No email flag

Marketing Database Resources Data Resources List Brokers (B-B and consumer) Compiled lists (e.g. trade show attendees) Response lists (e.g. buyers) B-B: InfoUSA, Dun & Bradstreet Online sources (e.g. Zapdata.com) Co-op databases (Abacus)

Data Resources

List Brokers (B-B and consumer)

Compiled lists (e.g. trade show attendees)

Response lists (e.g. buyers)

B-B: InfoUSA, Dun & Bradstreet

Online sources (e.g. Zapdata.com)

Co-op databases (Abacus)

Marketing Database Resources Software Resources Service Bureaus (outsourcing) Pros – lots of tech support avail. Cons – may be more costly, slower to respond Varied Sources – Axciom to Merkle

Software Resources

Service Bureaus (outsourcing)

Pros – lots of tech support avail.

Cons – may be more costly, slower to respond

Varied Sources – Axciom to Merkle

Marketing Database Resources Software Resources continued In-house Software Package Pros – customized to your specific needs, more control, more timely Cons – requires dedicated tech support Hybrid approaches (Salesforce.com, etc) should be considered.

Software Resources continued

In-house Software Package

Pros – customized to your specific needs, more control, more timely

Cons – requires dedicated tech support

Hybrid approaches (Salesforce.com, etc) should be considered.

Marketing Database Resources Guru: David Raab – publishes software reviews on DM Database packages http:// customerexperiencematrix.blogspot.com / Guru: Rich Baan – publishes reviews on Sales & Mark. Systems www.sellmorenow.com Guru:Kevin Hillstrom – Data mining. www.MineThatData.com Guru: Liz Murphy – non-profit Interactive Marketing LizMurphy@RedEngine.com

Guru: David Raab – publishes software reviews on DM Database packages http:// customerexperiencematrix.blogspot.com /

Guru: Rich Baan – publishes reviews on Sales & Mark. Systems

www.sellmorenow.com

Guru:Kevin Hillstrom – Data mining. www.MineThatData.com

Guru: Liz Murphy – non-profit Interactive Marketing LizMurphy@RedEngine.com

Marketing Database Resources Organizations: DMA, DMAW Conferences: NCDM twice/year Publications: DM News/Database Mark., MultiChannel Merchant magazine

Organizations: DMA, DMAW

Conferences: NCDM twice/year

Publications: DM News/Database Mark., MultiChannel Merchant magazine

Marketing Database Resources Blogging guru: Debbie Weil – WordBiz [email_address] Marketing ROI: Steiner Marketing - www.steinermarketing.com/calc_roi.htm

Blogging guru: Debbie Weil – WordBiz

[email_address]

Marketing ROI: Steiner Marketing - www.steinermarketing.com/calc_roi.htm

Lab – RFM Analysis Complete Project #1: Analysis of RFM data

Complete Project #1: Analysis of RFM data

Session IV Takeaways Not all software applications truly qualify as a “Marketing Database”. Study the contenders from the pretenders. Lots of marketing database resources are available for further study

Not all software applications truly qualify as a “Marketing Database”. Study the contenders from the pretenders.

Lots of marketing database resources are available for further study

Session V Internet Marketing Evolution Trends 2001-2005 Trends 2006+ Search Engine Marketing (SEM) Search Engine Optimization (SEO) Web-based communication tools Small Group discussion: What are the pros and cons of using e-communications in your organization?

Evolution

Trends 2001-2005

Trends 2006+

Search Engine Marketing (SEM)

Search Engine Optimization (SEO)

Web-based communication tools

Small Group discussion: What are the pros and cons of using e-communications in your organization?

Session V Internet Marketing Internet Marketing evolution Began as “new kid on the block” Discussion of the dot com era Eyeballs, first movers, no ROI Evolved by using principles of Direct Marketing Review definition of Direct Marketing Present an offer, track responses Call to action/urgency Targeting still evolving

Internet Marketing evolution

Began as “new kid on the block”

Discussion of the dot com era

Eyeballs, first movers, no ROI

Evolved by using principles of Direct Marketing

Review definition of Direct Marketing

Present an offer, track responses

Call to action/urgency

Targeting still evolving

Internet Marketing Strategic Drivers of the Internet Economy Which are accelerating? Which are decelerating? Speed Bumps of the Internet Economy SPAM Privacy issues Trust

Strategic Drivers of the Internet Economy

Which are accelerating?

Which are decelerating?

Speed Bumps of the Internet Economy

SPAM

Privacy issues

Trust

Internet Marketing: Trends 2001-2005 Search engines wisely used as “problem solver”, not just “finder” Case Study of PhD chemists More partnering of "clicks" with "bricks" organizations eBags.com

Search engines wisely used as “problem solver”, not just “finder”

Case Study of PhD chemists

More partnering of "clicks" with "bricks" organizations

eBags.com

Internet Marketing: Trends 2006+ Web 2.0: Social Networking + Linked-In Facebook P&G: Branding in a “Let Go” world - consumers want to be more involved (self expression, YouTube) “ Consumers own our brands”

Web 2.0: Social Networking +

Linked-In

Facebook

P&G: Branding in a “Let Go” world - consumers want to be more involved (self expression, YouTube)

“ Consumers own our brands”

Internet Marketing: Trends 2006+ Perception: Company brand is not what the Company says it is – it’s what Google says it is. The Long Tail (80-20 rule): Amazon- "We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday”. Translation: “what have you bought from me lately?”

Perception: Company brand is not what the Company says it is – it’s what Google says it is.

The Long Tail (80-20 rule): Amazon- "We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday”.

Translation: “what have you bought from me lately?”

The Long Tail (80-20 rule) source: Wikipedia

Internet Marketing: Trends 2006+ “Neo-tribes”: aggregating folks by who they want to belong to (e.g. Harley riders), not who they are. Web: telling a story is increasingly more powerful than making a statement Best Buy: reversal of fortune

“Neo-tribes”: aggregating folks by who they want to belong to (e.g. Harley riders), not who they are.

Web: telling a story is increasingly more powerful than making a statement

Best Buy: reversal of fortune

Internet Marketing: Trends 2006+ Next generation likes pictures more than words. Customer Reviews – drive traffic to your web site Review need both pros and cons to stay credible

Next generation likes pictures more than words.

Customer Reviews – drive traffic to your web site

Review need both pros and cons to stay credible

Internet Marketing: Surveys show... Men: respond if you show product comparisons (e.g. autos) Women: respond to building communities (e.g. MADD) Youth: respond if you make a game out of communication For B-B: Senior staff now routinely read their own email!

Men: respond if you show product comparisons (e.g. autos)

Women: respond to building communities (e.g. MADD)

Youth: respond if you make a game out of communication

For B-B: Senior staff now routinely read their own email!

Internet Marketing: Multi-Channel complexity "Half the money I spend on advertising is wasted; the trouble is, I don't know which half" John Wannamaker, 20 th Century Dept. Store magnate ROI on marketing dollars – very difficult Response Reporting: which promotion gets credit for the response? Direct mail and e-marketing work together Yahoo, Google use DM to drive traffic

"Half the money I spend on advertising is wasted; the trouble is, I don't know which half" John Wannamaker, 20 th Century Dept. Store magnate

ROI on marketing dollars – very difficult

Response Reporting: which promotion gets credit for the response?

Direct mail and e-marketing work together

Yahoo, Google use DM to drive traffic

Internet Marketing: Communications Email: When building relationships, “Don’t over water your plant”. Value diminishes as popularity increases: “It’s so crowded no one goes there anymore” Y. Berra Demo of Constant Contact

Email: When building relationships, “Don’t over water your plant”.

Value diminishes as popularity increases: “It’s so crowded no one goes there anymore”

Y. Berra

Demo of Constant Contact

Internet Marketing: Search Engines Search Engine Optimization (SEO) Natural (or “organic”) search algorithms All about outguessing the Google algorithm Position originally determined by links to your site. Search Engine Marketing (SEM) Pay per click advertising Google Adwords Example

Search Engine Optimization (SEO)

Natural (or “organic”) search algorithms

All about outguessing the Google algorithm

Position originally determined by links to your site.

Search Engine Marketing (SEM)

Pay per click advertising

Google Adwords Example

Internet Marketing: Search Engines Search Engine Resources: Online: www.SearchEngineWatch Consultant: Alan Rimm-Kaufman: www.RimmKaufman.com

Search Engine Resources:

Online: www.SearchEngineWatch

Consultant: Alan Rimm-Kaufman: www.RimmKaufman.com

Internet Marketing: Group Discussion Small Group discussion: What are the pros and cons of using e-communications in your organization? Shelf life: will your message stay “top of mind”? Timeliness: how quickly does your message change? ROI: how can you measure impact? Clutter: are you breaking through?

Small Group discussion: What are the pros and cons of using e-communications in your organization?

Shelf life: will your message stay “top of mind”?

Timeliness: how quickly does your message change?

ROI: how can you measure impact?

Clutter: are you breaking through?

Internet Marketing: Exec level Resources Internet Retail mag, conference, and online: [email_address] Multi Channel Merchant http://multichannelmerchant.com/

Internet Retail mag, conference, and online: [email_address]

Multi Channel Merchant http://multichannelmerchant.com/

Session V Takeaways Trust is the biggest issue facing e-marketers Multi-channel marketing with e-marketing: Greater potential for success Greater challenges (especially ROI) Search engine optimization (SEO) can be critical to your success. e-communication can be timely, inexpensive, and targeted, with measurable response.

Trust is the biggest issue facing e-marketers

Multi-channel marketing with e-marketing:

Greater potential for success

Greater challenges (especially ROI)

Search engine optimization (SEO) can be critical to your success.

e-communication can be timely, inexpensive, and targeted, with measurable response.

Session VI Internet Marketing Review of Session V Discussion/presentation of e-communication strategies SEM continued: Google Adwords Special topics: extra credit Small Group exercise: Search engine keywords. Preview of mid-term exam

Review of Session V

Discussion/presentation of e-communication strategies

SEM continued: Google Adwords

Special topics: extra credit

Small Group exercise: Search engine keywords.

Preview of mid-term exam

Internet Marketing e-communications Small Group discussion: What are the pros and cons of using e-communications in your organization? Find your business model (Roberts Chapter 3) What e-communication works for your model?

Small Group discussion: What are the pros and cons of using e-communications in your organization?

Find your business model (Roberts Chapter 3)

What e-communication works for your model?

Search Engine Marketing (SEM) Google adwords demo Pay-per-Click (SEM) advantages Pay only for 5% click thrus, not 99% throw-aways Fake it 'til you make it: no expensive storefront needed Timing is everything: buyers search when they are ready to buy (not when you are ready to sell to them). Measurable response The world is your oyster

Google adwords demo

Pay-per-Click (SEM) advantages

Pay only for 5% click thrus, not 99% throw-aways

Fake it 'til you make it: no expensive storefront needed

Timing is everything: buyers search when they are ready to buy (not when you are ready to sell to them).

Measurable response

The world is your oyster

Internet Marketing: Search Engines Pay per click strategies Ad copy is important Bid to find the “Sweet Spot” in positioning (usually 3 rd )

Pay per click strategies

Ad copy is important

Bid to find the “Sweet Spot” in positioning (usually 3 rd )

Internet Marketing Special Topics Student Reports on… Best Buy HTTPs/Secure Site Google Analytics Google Android Webinars

Student Reports on…

Best Buy

HTTPs/Secure Site

Google Analytics

Google Android

Webinars

Internet Marketing Special Topics Future topics… New business models enabled? Green marketing: how to measure e-marketing tradeoffs with postal? Yahoo: will it survive? By changing how? Ethics of differentiating offers: See “The Numerati” Other topics???

Future topics…

New business models enabled?

Green marketing: how to measure e-marketing tradeoffs with postal?

Yahoo: will it survive? By changing how?

Ethics of differentiating offers:

See “The Numerati”

Other topics???

Search Engine Marketing Small Group exercise: What search engine keywords best represent your products/services? Use “Google keyword tool”. Alias’ Slang (“junk mail”)

Small Group exercise: What search engine keywords best represent your products/services?

Use “Google keyword tool”.

Alias’

Slang (“junk mail”)

Session VI Preview of mid-term exam Database structure Fields, Records, etc. Lifetime value Variables RFM Why do it?, methods, Source codes Database marketing: in-house vs. outsourcing

Preview of mid-term exam

Database structure

Fields, Records, etc.

Lifetime value

Variables

RFM

Why do it?, methods,

Source codes

Database marketing: in-house vs. outsourcing

Session VII Interactive Marketing Mid Term Exam Review of Exam Special topics: extra credit Webinars Google Android Ethics of discounts Others…

Mid Term Exam

Review of Exam

Special topics: extra credit

Webinars

Google Android

Ethics of discounts

Others…

Session VII Interactive Marketing Discussion of Final Project and Presentation - - ROI calculation Review of Interactive Marketing text Mid term course evaluation

Discussion of Final Project and Presentation - - ROI calculation

Review of Interactive Marketing text

Mid term course evaluation

Session VII Interactive Marketing Outline for Final Project Research Paper Recommendations for Operational Improvements Acquisition strategies Retention strategies ROI: very important (prefer 12 month payback) Pre and Post Lifetime Value calculations Schedule for implementation (prefer Q1 2009) Resources required Budget, Tech staff requirement, etc. Training required

Outline for Final Project Research Paper

Recommendations for Operational Improvements

Acquisition strategies

Retention strategies

ROI: very important (prefer 12 month payback)

Pre and Post Lifetime Value calculations

Schedule for implementation (prefer Q1 2009)

Resources required

Budget, Tech staff requirement, etc.

Training required

Session VIII Guest Speaker

Guest Speaker

Session IX Introduction to CRM Guest Speaker: Jeffrey Hellman Special topics: extra credit Google Checkout Green marketing Catalog Choice CRM topics CRM video – Martha Rogers

Guest Speaker: Jeffrey Hellman

Special topics: extra credit

Google Checkout

Green marketing

Catalog Choice

CRM topics

CRM video – Martha Rogers

Session IX Introduction to CRM Model is your grandfather’s corner grocery Contrast with DB Marketing: Connections, not Selections Where does “Marketing” fit?

Model is your grandfather’s corner grocery

Contrast with DB Marketing: Connections, not Selections

Where does “Marketing” fit?

Session IX Introduction to CRM CRM video: Differentiating your customers – Martha Rogers - One-to-One Marketing

CRM video: Differentiating your customers – Martha Rogers

- One-to-One Marketing

CRM Session X Review of Session IX: Intro to CRM Special topics: extra credit Green marketing Catalog Choice Case studies: Market Basket Analysis CRM video – Martha Rogers Lab – Final project outline

Review of Session IX: Intro to CRM

Special topics: extra credit

Green marketing

Catalog Choice

Case studies: Market Basket Analysis

CRM video – Martha Rogers

Lab – Final project outline

CRM Session X Special topics: extra credit Green marketing/Catalog Choice Case study: Market Basket Analysis Amazon model: do it yourself data mining Permutation and combinations: endless Eyeball data mining: Beatles versus Led Zeppelin Step 1: Correlation analysis Step 2: One-to-One eMarketing

Special topics: extra credit

Green marketing/Catalog Choice

Case study: Market Basket Analysis

Amazon model: do it yourself data mining

Permutation and combinations: endless

Eyeball data mining: Beatles versus Led Zeppelin

Step 1: Correlation analysis

Step 2: One-to-One eMarketing

CRM Session X Market Basket Analysis (continued) PURL site: “Personal URL” Create web and print campaign. Static versus dynamic recommendations. http://www.suppliesguys.com/DianaLee-08840 Follow-up with Response Analysis: 30% response One-to-One web marketing

Market Basket Analysis (continued)

PURL site: “Personal URL”

Create web and print campaign.

Static versus dynamic recommendations.

http://www.suppliesguys.com/DianaLee-08840

Follow-up with Response Analysis: 30% response

One-to-One web marketing

CRM Session X CRM Video 2: Differentiating your Customers Lab: Final Project outline Outline in syllabus Don’t forget ROI Expand on topics from other classes Customer Portfolio matrix p. 109 Activity-based costing (ABC) p. 93 SWOT analysis p.121

CRM Video 2: Differentiating your Customers

Lab: Final Project outline

Outline in syllabus

Don’t forget ROI

Expand on topics from other classes

Customer Portfolio matrix p. 109

Activity-based costing (ABC) p. 93

SWOT analysis p.121