3 Customer Acquisition Choices Profitable Multi Channel Marketing March 2010

Customer Acquisition Choices www.sterlingmarketing.co.uk www.ivantage.co.uk

Choices
Online
Organic/natural search
Paid search
Product feeds
Comparison sites
Display advertising
Social media networking
Affiliate marketing
Email campaigns:
In house
Rented
Viral marketing
Online PR
Off line
Referrals
PR
Lists – swaps, rentals, pooled databases
Media:
Inserts
Adverts
Advertorials
Band ons
Inserts – parcels, mailings
Door drops
Store sign ups
Joint ventures - mailings, emails, events
TV/ Radio
Events - fairs
Out door advertising – buses, posters
www.sterlingmarketing.co.uk www.ivantage.co.uk

Choices Website Advertising Catalogue Retail Social Networking Mobile Inserts SEO www.sterlingmarketing.co.uk www.ivantage.co.uk Affiliates Paid Search Door-drops TV / Radio PR

What do you want you marketing investment to achieve?
Drive traffic > sales across all channels
Drive traffic >sales to website
Drive traffic > sales to retail
Profit centre to sell products
Build brand awareness
Build enquirer base / email base
Increase distribution of your catalogue
All of the above
Let’s examine the options and how they interrelate………

Online Customer Acquisition Choices
Organic/natural search
Paid search
Product feeds
Comparison sites
Social media networking
Email campaigns
Affiliate marketing

So, you have a website, but how do customers find it?
Print your web address on all materials
Customers can visit you directly
What about customers who don’t know about you?
www.sterlingmarketing.co.uk www.ivantage.co.uk is the key

Search is key to reaching consumers 81% of internet users enter websites via a search engine 2.6 billion searches worldwide per day 29% Look to Search engines as first source of information Source: Forrester Research Inc., “UK Internet User Monitor” , Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents. www.sterlingmarketing.co.uk www.ivantage.co.uk

How does Online Search work? Search query Paid Search Results Organic/Natural Search Results Editorial – Influenced by SEO Paid Search Results Advertising – PPC, CPC, PfP

Organic search traffic
Influenced by search engine optimisation (SEO)
This is really optimisation of your web site
Need to be on the top 3 pages to see any results
Organic results are becoming more personalised
Organic results are blended with other sources of information

Organic search traffic
On-Page SEO
Good descriptive content is key
Unique, informative, fresh
Technical considerations
Page titles, meta tags etc.
Off-Page SEO
Links from other quality sites
Avoid paid links and link farms
A compelling message influences behaviour
Social media
Blogs
Good organic rankings and results take time

Paid search marketing
Google is the dominant search engine (80%+ of all searches)
Adwords
Yahoo search marketing and MSN adcenter
Alliance - Microsoft’s Bing will power the Yahoo Search and Ad network
Pay-Per-Click advertising service
Advertisers specify
the words that should trigger their ads (keywords)
the maximum they are willing to pay per click
Search engines then display the ads as sponsored links
The sequence or ranking depends on
other advertisers bids
the “quality score” of the keywords and adverts

Paid adverts on the search results pages www.sterlingmarketing.co.uk www.ivantage.co.uk

Paid adverts on the content network www.sterlingmarketing.co.uk www.ivantage.co.uk

Image adverts on the content network www.sterlingmarketing.co.uk www.ivantage.co.uk

You Tube Advertising
You Tube is now the second largest search engine

What can paid search do for you?
Quick and easy way to attract relevant traffic
Your adverts have the potential to reach a vast audience
You can target your audience in many ways
Geographically
Using keywords relevant to your product/service
Selecting relevant sites where your ads can appear
Demographically
Through the wording of your adverts
You only pay when someone clicks on your advert
You are in control of the budget
Activation fee
No minimum spend

Paid search is continuously evolving
Remarketing – allows you to target visitors by their actions
Target visitors who added an item to their shopping basket but did not complete their purchase
Target visitors who purchased products A with ads for product B
Target visitors who purchased 30 days ago
Works best with image ads that reinforce the association with the brand
Integration with other online sources
Products feeds and search adverts

Google Product Feed www.sterlingmarketing.co.uk www.ivantage.co.uk

Adwords Product Plus www.sterlingmarketing.co.uk www.ivantage.co.uk

Comparison websites
Comparison shopping sites compare prices from many online retailers
Multi category sites and niche sites
These sites source prices from online retailers and direct visitors to the retailers site for the sale
Kelkoo, pricerunner, ciao, my deco, shopzilla
Comparison sites generally require a product feed
Competitively priced products work best

Social Media Marketing Your Website Articles N E T W O R K O F F R I E N D S Effective For Paid Campaigns Online News Sites You Tube Facebook PR Web Stumbleupon Twitter MySpace Flickr Bebo DIGG Delicious www.sterlingmarketing.co.uk www.ivantage.co.uk

Email Marketing Campaigns
Email campaigns are a highly effective way of generating sales
Helps you develop a relationship with your customers
Your email need to serve a purpose otherwise customers will unsubscribe
New products
Offer such as Free P&P, % discount
Unless you purchase email lists this will generate few new customers
Forward to a friend features
Obtain email addresses whenever you can
Instore
Telephone orders
Action triggered emails
Customer added to basket but did not purchase
Reminders about re-ordering a product

Pay for performance advertising model
Revenue sharing
Cost per sale
Overlaps with other forms of advertising
Paid search, email, display advertising
Loyalty websites that provide a reward system to the consumer (or a charity) for purchases
Coupon websites
Keyword rich domains
www.sterlingmarketing.co.uk www.ivantage.co.uk Affiliate Marketing

Question how many are new incremental visitors
Much affiliate traffic is second hand traffic
If a customer has found your product through paid search and then looks for a coupon, who wins/loses?
Historically many affiliates have ‘stolen’ traffic heading for a retailer
Google implemented one advert per display url rule
Amazon associates program no longer allows paid search bidding
If you have your own good online marketing program you don’t really need affiliate marketing
www.sterlingmarketing.co.uk www.ivantage.co.uk Affiliate Marketing

Off Line Acquisition Choices
Off line
Referrals
PR
Lists – swaps, rentals, pooled databases
Media:
Inserts
Adverts
Advertorials
Band ons
Door drops
Store sign ups
Joint ventures - mailings, emails, events
TV/ Radio
Events - fairs
Out door advertising – buses, posters
What are the objectives?
Drive traffic > sales across all channels
Drive traffic >sales to website
Drive traffic > sales to retail
Profit centre to sell products
Build brand awareness
Build enquirer base / email base
Increase distribution of your catalogue
All of the above

Off Line - Web Traffic Drivers
Media – inserts, page advertising. Builds brand awareness, drives response, drives sales
TV – Moon Pig hugely effective in growing the business, not relevant to all market sectors
PR – in house, outsourced, builds brand awareness, difficult to track
Door drops
Radio – event lead > sales
Mailings – catalogues / cards to enquirers, external lists
Always test, evaluate and roll out

PR – brand awareness, promote specific events, specific products
Media – advertising, inserts, offer driven
Door drops – socio demographic targeted areas, offer driven
TV – event driven
Radio – event driven
Out door advertising – buses, posters. Builds brand awareness in relevant geographic areas
Shop sign ups – ensures you can stay in touch
Joint ventures – in store promotion, exchange of data
Mailings – catalogues / cards buyers, retail enquirers
Off Line – Shop Traffic Drivers www.sterlingmarketing.co.uk www.ivantage.co.uk

Offline - Selling Products
Off the page advertising – product lead, cost per advert key (use of distressed space)
Magazine band on’s -
Readers offers- product lead, who has access to the names?
Events – point to points, fairs (Joules)

Increase catalogue distribution – run on costs
Lists – benefit > proven, new customers only, strong lifetime value, not relevant to certain target customers
Inserts – higher risk, mix of existing and new customers, reaches new customers not currently shopping directly, magazine endorsement, drives traffic across all channels
Band–ons – magazine endorsement, mix existing and new customers, drives traffic across all channels
Door drops – dependent on targeting effectively and market sector

Most cost effective and most valuable
Referrals
‘ Can you help us grow? We need to find more customers like you and me. It’s not easy. So we thought the people who would be most like you would be your friends.’
Use the key relevant opportunities:
receipt of their goods
Insert with mailings
Promoted on your website
Promote to encourage – prize draw, sum of money on their account to spend, voucher

Selling plus recruiting new enquirers

New format insert in You > drive new customers online

Endorsed insert > effective in Boden’s growth

Donald Russell’s Extremely effective insert Telegraph Ad that drives new customers

2 Stage insert

Joules mailing to drive customers online / instore

How to evaluate effectiveness?
Tracking:
Different telephone number
Different product codes
Different url’s
Offer codes
Online surveys
Exit surveys
Understanding overlap – new and existing customers
Affiliates > up to 80%
Insert / Band on > 45% to 55% existing
Door drop > up to 75% existing
PPC > 50%
Off the page advert >35% - 45% existing
Track cross channel sales
Developing and understanding the data……..to be discussed this afternoon

How do you determine what will work for you and how much to spend on each activity?
Key issues:
Market sector
Target customer and shopping behaviour
What are your competitors doing
Ensure your proposition is strong
Ensure your creative supports the brand, sells the proposition and stands out from the crowd
Buy media effectively
Prioritise linked to your available budget – test, evaluate, roll out
Always include a small budget to continue testing

3 Customer Acquisition Choices Profitable Multi Channel Marketing March 2010

by ivantage

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