The mergence of Marketing and eMarketing - Dan Rose

Slide 1: Prepared by: Dan Rose 1

Slide 2: Is this good Direct Marketing? 2

Slide 3: We’ll build an ecommerce site! 3

Slide 4: Direct Marketing….effective? 4

Slide 5: Straight to the point 5

Slide 6: Prepared by: Dan Rose 6

Slide 7: Who are we?  Precision Dialogue is a leading online direct marketing company in the region.  We develop and help manage our client’s e-channels - Build community - Cross sell product - Retain client base - Attract profitable new customers or members 7

Slide 8: Clients 8

Slide 9: 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 9

Slide 10: 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 10

Slide 11: General Advertising and Direct Marketing A Simple Comparison Advertising Direct Marketing Mass Targeted Competitive Attention Selective Attention Breadth Depth Remember Respond Impression Decision Pay for Everyone Pay for Targets 11

Slide 12: Emarketing done right Today: Yesterday: 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. 12

Slide 13: Fundamental Marketing shift From… “I have a mass of customers.” To… “I have a personal relationship.” 13

Slide 14: Direct Marketing – What has the biggest impact on lift? 1. Targeting, Segmentation and List – “who” - 50-75% 2. Offer or “the deal?” - 20-40% 3. Sequence & Frequency of Contact – “how” - 20-40% 4. Creative – “what and how you say it” - 10-20% 14

Slide 15: List/Target Selection Factors  Consumer Lists  Business Lists - SIC (Standard - Age Industrial Classification) - Income - Employee Size - Gender - Annual Sales/Revenue - - Title Marital Status - Any other information - Homeowner captured on - Dwelling Type (home or subscription form (publications) apartment) - Corporate linkage - Mail order buying (by information product type) - # of years in business - Interests - Geographical (zip, SCF, county, state) - Presence of children - Credit information - Geographical (zip, SCF, county, state, carrier route) 15

Slide 16: Behind the Scenes of E-Direct Marketing Intelligence/  Research  Marketing  Database/ Response/ Campaign Analytical Relationship Objectives Marketing Marketing Strategic/ Creative Marketing 16

Slide 17: Customer Analysis - ‘the right behavior” Intelligence/ Research True Capabilities Analysis - ‘the right context” Marketing Direct Marketing Process Market Competitive Analysis - ‘the right benefits” Datamining & Profiling - ‘the right information” Database/ Analytical Segmenting & Targeting - ‘the right market” Marketing Positioning & Differentiating - ‘the right strategy” Unique Selling Proposition - ‘the right offer” Strategic/ Creative Creative Marketing Communications -‘the right message” Marketing Direct Marketing Channels –The Key Link Fulfillment & Service - ‘the right satisfaction” Response/ Relationship Measurement & Assessment - ‘the right performance” Marketing 17 Adaptation and Innovation - ‘the right change”

Slide 18: 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 18

Slide 19: 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. 19

Slide 20: 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. 20

Slide 22: Datamining & Profiling - ‘the right information”  Know your audience takes on a new meaning  Buying 3rd 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 22

Slide 23: List development is tricky 23

Slide 24: 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 24

Slide 25: Segmentation > Relevant Content Children at Customer Age? Household Employed? home? segment breadwinner? No Dependant No Yes No No Independent Yes adult <34 Yes No New family Yes Yes No Established No family Yes >35 No Mature Yes family 25 Yes

Slide 26: 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 26

Slide 28: 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?” 28

Slide 29: 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. 29

Slide 30: 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 30

Slide 32: 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 32

Slide 33: “Half of my advertising is wasted; I just don’t know which half.” -- John Wanamaker, retail pioneer in the late 1800’s 33

Slide 34: 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 34

Slide 35: Real-time Reporting and Adaptation  Launch a campaign  Monitor in real-time  React to results in real-time 35

Slide 36: Test and adjust….don’t give up 36

Slide 37: 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 37

Slide 38: Bonus Slides – Tactical Suggestions Available for download at Precisiondialogue.com 38

Slide 39: The true Oracle 39

Slide 40: Interact and Customize: Walk Sample Content Categories Sample Customer Segments A: 1-9 employee 1-9 employee :A B: Non Health Non Health :B C: Renewal up Renewal up :C Custom Communication •Best guess reasoning •Limited variations •Pre-defined matching 40

Slide 41: Wrong content files 41

Slide 42: Interact and Customize: Run Single Customer Dynamic Assembly Customer Profile Predictive Interest Content Categories Mass Customization •Fact based reasoning •Unlimited variations •Smart matching 42

Slide 43: Interact and Customize: Run One-to-one …by the thousands Mass Personalization •Fact based reasoning •Unlimited variations •Smart matching 43

Slide 44: Step 1 Link to One Form 44

Slide 45: Step 2 Manage Campaign 45

Slide 46: Step 3 Launch Campaign 46

Slide 47: Full Circle Track Results 47

Slide 48: Dynamic Email content •Variable Data •More relevant •Higher open rates •Higher Click troughs 48

Slide 49: • Web Management Tool 49

Slide 50: ATOM 50

Slide 51: Questions? 51

Slide 52: A Fail Safe Campaign “Take a brownie break”  Call first to confirm the contact and title  Send a “package” with 4 brownies  The enclosed letter starts with “Take a brownie break on us, and while you’re doing so, you might like to read my letter”  Call within 3 days of receipt  Cash the check 52

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