Direct Marketing Presented by: Amber Darroch & Julie Powell 06/05/09

Who are we? Metrics Marketing is a leading analytics database marketing firm in the region delivering measurable marketing results. We develop and help manage our client’s online and offline marketing channels Build community Cross sell product Retain client base Attract profitable new customers or members

Metrics Marketing is a leading analytics database marketing firm in the region delivering measurable marketing results.

We develop and help manage our client’s online and offline marketing channels

Build community

Cross sell product

Retain client base

Attract profitable new customers or members

Partial Client List Financial Services KeyBank

Partial Client List Retail, Interactive, Gaming, Travel & Tourism

What is Direct Marketing? Direct Marketing Strategy Any marketing communication intended to drive a response and/or behavior on the part of the intended, and specifically targeted individual Database Marketing The organization of data that can be analyzed, sorted and used to drive relevant messages to specific targets

Direct Marketing Strategy

Any marketing communication intended to drive a response and/or behavior on the part of the intended, and specifically targeted individual

Database Marketing

The organization of data that can be analyzed, sorted and used to drive relevant messages to specific targets

Why Direct Marketing? Communication clutter is at an all time high Breaking through the clutter is job 1 Impact and relevancy are the two proven methods to break through and drive behavior Target marketing is the primary method used to deliver impactful and relevant messages that achieve these twin goals It costs less per sale than advertising and PR plus is measurable and controllable by you

Communication clutter is at an all time high

Breaking through the clutter is job 1

Impact and relevancy are the two proven methods to break through and drive behavior

Target marketing is the primary method used to deliver impactful and relevant messages that achieve these twin goals

It costs less per sale than advertising and PR plus is measurable and controllable by you

General Advertising and Direct Marketing A Simple Comparison Mass Targeted Competitive Attention Selective Attention Breadth Depth Remember Respond Impression Decision Pay for Everyone Pay for Targets Advertising Direct Marketing

Mass

Targeted

Competitive Attention

Selective Attention

Breadth

Depth

Remember

Respond

Impression

Decision

Pay for Everyone

Pay for Targets

Emarketing done right Campaigns that results in dialogue between two parties. Both parties have granted permission to each other and thus the content is precisely focused and of value to both. User behavior is tracked and future communication is refined. Yesterday: Today: Marketer Customer Customer Marketer

Campaigns that results in dialogue between two parties.

Both parties have granted permission to each other and thus the content is precisely focused and of value to both.

User behavior is tracked and future communication is refined.

Fundamental Marketing shift From… “I have a mass of customers.” To… “I have a personal relationship.”

From… “I have a mass of customers.”

To… “I have a personal relationship.”

Direct Marketing – What has the biggest impact on lift? 1. Targeting, Segmentation and List – “who” 50% 2. Offer or “the deal?” 20% 3. Sequence & Frequency of Contact – “how” 20% 4. Creative – “what and how you say it” 10%

1. Targeting, Segmentation and List – “who”

50%

2. Offer or “the deal?”

20%

3. Sequence & Frequency of Contact – “how”

20%

4. Creative – “what and how you say it”

10%

List/Target Selection Factors Consumer Lists Age Income Gender Marital Status Homeowner Dwelling Type (home or apartment) Mail order buying (by product type) Interests Presence of children Geographical (zip, SCF, county, state, carrier route) Business Lists SIC (Standard Industrial Classification) Employee Size Annual Sales/Revenue Title Any other information captured on subscription form (publications) Corporate linkage information # of years in business Geographical (zip, SCF, county, state) Credit informatio n

Consumer Lists

Age

Income

Gender

Marital Status

Homeowner

Dwelling Type (home or apartment)

Mail order buying (by product type)

Interests

Presence of children

Geographical (zip, SCF, county, state, carrier route)

Business Lists

SIC (Standard Industrial Classification)

Employee Size

Annual Sales/Revenue

Title

Any other information captured on subscription form (publications)

Corporate linkage information

# of years in business

Geographical (zip, SCF, county, state)

Credit informatio n

Behind the Scenes of E-Direct Marketing Intelligence/ Research Marketing Database/ Analytical Marketing Strategic/ Creative Marketing Response/ Relationship Marketing Campaign Objectives

Intelligence/

Research

Marketing

Intelligence/ Research Marketing Database/ Analytical Marketing Strategic/ Creative Marketing Response/ Relationship Marketing Direct Marketing Process Market Competitive Analysis - ‘the right benefits ” True Capabilities Analysis - ‘the right context” Customer Analysis - ‘the right behavior” Positioning & Differentiating - ‘the right strategy” Unique Selling Proposition - ‘the right offer” Creative Marketing Communications -‘the right message” Direct Marketing Channels –The Key Link Fulfillment & Service - ‘the right satisfaction” Measurement & Assessment - ‘the right performance” Adaptation and Innovation - ‘the right change” Segmenting & Targeting - ‘the right market” Datamining & Profiling - ‘the right information ”

Do we know what our intended customer wants or needs? What benefits do they seek? What is their pain? There are no average customers The best way to find out? ASK! Implicit vs. Explicit information Customer Analysis - “the right behavior”

Do we know what our intended customer wants or needs?

What benefits do they seek? What is their pain?

There are no average customers

The best way to find out? ASK!

Implicit vs. Explicit information

Internal vs. external analysis What is the market doing What are you good at doing yourself? Reactive vs. Proactive From Good to Great/Fox and Hedgehog Ask and audit…what do you truly do best? And, what are you most profitable doing? What you think you do best vs. what your customer/prospect thinks may be two different things entirely. True Capabilities Analysis - ‘the right context”

Internal vs. external analysis

What is the market doing

What are you good at doing yourself?

Reactive vs. Proactive

From Good to Great/Fox and Hedgehog

Ask and audit…what do you truly do best? And, what are you most profitable doing?

What you think you do best vs. what your customer/prospect thinks may be two different things entirely.

Traditional SWOT? Yes…as a place to start Ask the questions: Who are our competitors? Beyond the obvious? What are they doing and can we do it better than them? Or, less expensively than them? Most of us will never recognize an opportunity until it goes to work in our competitor’s business Competitors are harder to recognize now…in part, because of direct marketing. Market Competitive Analysis - ‘the right benefits”

Traditional SWOT? Yes…as a place to start

Ask the questions:

Who are our competitors? Beyond the obvious?

What are they doing and can we do it better than them? Or, less expensively than them?

Most of us will never recognize an opportunity until it goes to work in our competitor’s business

Competitors are harder to recognize now…in part, because of direct marketing.

Sample: Lone Star

SWOT Review Actionable items are derived from analysis with clear online opportunities defined For Lonestar: Kids Zone area of site to become more user friendly Natural optimization of the site Clear call to action (menu or find a location) to be placed in an easy to access area Prioritization of navigational elements Better food photography to be implemented

Actionable items are derived from analysis with clear online opportunities defined

For Lonestar:

Kids Zone area of site to become more user friendly

Natural optimization of the site

Clear call to action (menu or find a location) to be placed in an easy to access area

Prioritization of navigational elements

Better food photography to be implemented

SWOT Review Existing online threats are revealed in relation to what your competitors are doing For Lonestar: Lack Spanish version of web site Personalized Gift card promotions do not meet competitors offers Menu listing is much harder to access Private party information is unique to Lone Star, but not easily accessible Lack of optimization on search engines compared to competitors

Existing online threats are revealed in relation to what your competitors are doing

For Lonestar:

Lack Spanish version of web site

Personalized Gift card promotions do not meet competitors offers

Menu listing is much harder to access

Private party information is unique to Lone Star, but not easily accessible

Lack of optimization on search engines compared to competitors

Market Competitive Analysis - ‘the right benefits ” True Capabilities Analysis - ‘the right context” Customer Analysis - ‘the right behavior” Positioning & Differentiating - ‘the right strategy” Unique Selling Proposition - ‘the right offer” Creative Marketing Communications -‘the right message” Direct Marketing Channels –The Key Link Fulfillment & Service - ‘the right satisfaction” Measurement & Assessment - ‘the right performance” Adaptation and Innovation - ‘the right change” Segmenting & Targeting - ‘the right market” Datamining & Profiling - ‘the right information ” Intelligence/ Research Marketing Database/ Analytical Marketing Strategic/ Creative Marketing Response/ Relationship Marketing Direct Marketing Process

Know your audience takes on a new meaning Buying 3 rd party data to overlay Mounds of data…are just mounds of data. Convert it to useful information Analyze and interpret to make is actionable and useful to you Datamining & Profiling - ‘the right information”

Know your audience takes on a new meaning

Buying 3 rd party data to overlay

Mounds of data…are just mounds of data. Convert it to useful information

Analyze and interpret to make is actionable and useful to you

Mom was right…not everybody will like you no matter what you do Ideal of 1:1 is not fully realized just yet....Segmentation is the place to start Continue sub segments until you have clear and distinguishable differences in your audience. Segments allow you to make different offers, provide different content, test, etc Segmenting & Targeting - ‘the right market”

Mom was right…not everybody will like you no matter what you do

Ideal of 1:1 is not fully realized just yet....Segmentation is the place to start

Continue sub segments until you have clear and distinguishable differences in your audience.

Segments allow you to make different offers, provide different content, test, etc

Segmentation > Relevant Content Dependant Customer segment Age? Household breadwinner? Employed? Children at home? Independent adult New family Established family Mature family No Yes <34 >35 No Yes No Yes No Yes No Yes No Yes No Yes No Yes

Wikipedia: “A product's position is how potential buyers see the product relative to the market“ Niche thyself. Everyone here can narrow their focus. Specialize and reduce your competition Employ the ABC’s of positioning. Attributes Benefits Claims Positioning & Differentiating - ‘the right strategy”

Wikipedia: “A product's position is how potential buyers see the product relative to the market“

Niche thyself. Everyone here can narrow their focus. Specialize and reduce your competition

Employ the ABC’s of positioning.

Attributes

Benefits

Claims

Intelligence/ Research Marketing Database/ Analytical Marketing Strategic/ Creative Marketing Response/ Relationship Marketing Direct Marketing Process Market Competitive Analysis - ‘the right benefits ” True Capabilities Analysis - ‘the right context” Customer Analysis - ‘the right behavior” Positioning & Differentiating - ‘the right strategy” Unique Selling Proposition - ‘the right offer” Creative Marketing Communications -‘the right message” Direct Marketing Channels –The Key Link Fulfillment & Service - ‘the right satisfaction” Measurement & Assessment - ‘the right performance” Adaptation and Innovation - ‘the right change” Segmenting & Targeting - ‘the right market” Datamining & Profiling - ‘the right information ”

What is your value equation? The unique delivery of a particular value that the targeted audience in fact needs. Value is always defined by the customer or recipient of the message. Take the position of your customer or prospect and ask the question: “What’s in it for me?” and “Why do I care?” Unique Selling Proposition - ‘the right offer”

What is your value equation?

The unique delivery of a particular value that the targeted audience in fact needs.

Value is always defined by the customer or recipient of the message.

Take the position of your customer or prospect and ask the question: “What’s in it for me?” and “Why do I care?”

Segmentation and targeting strategies mean we have more than “one” right message. Consider the single salient benefit or selling point and lead with this concise point to each segment. Because you can, doesn’t mean you should. Beware of too much “flash” in using technology or a channel. Specific tactical suggestions available on our website. Creative Marketing Communications -‘the right message”

Segmentation and targeting strategies mean we have more than “one” right message.

Consider the single salient benefit or selling point and lead with this concise point to each segment.

Because you can, doesn’t mean you should. Beware of too much “flash” in using technology or a channel.

Specific tactical suggestions available on our website.

The premise: Remove all barriers between the customer and the provider….control moving from provider to customer. The Traditional: Direct Mail Telephone Direct Sales The New Email Targeted Web/blogging/podcasts/etc. SEM Mobile Direct Marketing Channels –The Key Link

The premise: Remove all barriers between the customer and the provider….control moving from provider to customer.

The Traditional:

Direct Mail

Telephone

Direct Sales

The New

Email

Targeted Web/blogging/podcasts/etc.

SEM

Mobile

Intelligence/ Research Marketing Database/ Analytical Marketing Strategic/ Creative Marketing Response/ Relationship Marketing Direct Marketing Process Market Competitive Analysis - ‘the right benefits ” True Capabilities Analysis - ‘the right context” Customer Analysis - ‘the right behavior” Positioning & Differentiating - ‘the right strategy” Unique Selling Proposition - ‘the right offer” Creative Marketing Communications -‘the right message” Direct Marketing Channels –The Key Link Fulfillment & Service - ‘the right satisfaction” Measurement & Assessment - ‘the right performance” Adaptation and Innovation - ‘the right change” Segmenting & Targeting - ‘the right market” Datamining & Profiling - ‘the right information ”

Fulfillment and service models built to follow your segmentation and customer targeting strategies Converting valued customers into loyal/repeat customers Building brand loyalty and reducing defection Cross selling and up-selling Referral programs and incenting both parties This is a relentless ongoing process Fulfillment & Service - ‘the right satisfaction”

Fulfillment and service models built to follow your segmentation and customer targeting strategies

Converting valued customers into loyal/repeat customers

Building brand loyalty and reducing defection

Cross selling and up-selling

Referral programs and incenting both parties

This is a relentless ongoing process

A key value in online direct marketing…immediate and ongoing feedback What are you measuring? Why? Timely review of data and a tracking process Update metrics of measurement A/B testing and optimize Periodic surveying of your customer and prospect base is relatively easy and affordable Measurement & Assessment - ‘the right performance”

A key value in online direct marketing…immediate and ongoing feedback

What are you measuring? Why?

Timely review of data and a tracking process

Update metrics of measurement

A/B testing and optimize

Periodic surveying of your customer and prospect base is relatively easy and affordable

Launch a campaign Monitor in real-time React to results in real-time Real-time Reporting and Adaptation

Launch a campaign

Monitor in real-time

React to results in real-time

Emarketing allows us to see results quickly and adjust future campaigns easily Act upon the ongoing results Change offers, content, graphics, headers, signatures, etc to continually optimize the ongoing campaigns Challenge your staff and yourself to “fix” declining results by tweaking the efforts before overhauling the entire campaign Adaptation and Innovation - ‘the right change”

Emarketing allows us to see results quickly and adjust future campaigns easily

Act upon the ongoing results

Change offers, content, graphics, headers, signatures, etc to continually optimize the ongoing campaigns

Challenge your staff and yourself to “fix” declining results by tweaking the efforts before overhauling the entire campaign

Direct Marketing Resources The DMA (Direct Marketing Association): www.the-dma.org The AMA (American Marketing Association): www.marketingpower.com Marketing Sherpa: www.marketingsherpa.com The eec (Email Experience Council): http://emailexperience.org/ Local Organizations SME Cleveland (Sales & Marketing Executives): www.smecleveland.com The Web Association: http://webassociation.org/ The 20 30 Club (social networking group): www.cleveland2030.org 06/05/09

The DMA (Direct Marketing Association): www.the-dma.org

The AMA (American Marketing Association): www.marketingpower.com

Marketing Sherpa: www.marketingsherpa.com

The eec (Email Experience Council): http://emailexperience.org/

Local Organizations

SME Cleveland (Sales & Marketing Executives): www.smecleveland.com

The Web Association: http://webassociation.org/

The 20 30 Club (social networking group): www.cleveland2030.org

Questions?

Questions?