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Last Mile Marketing Vol.1: Governance

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Governance is the first in the series of Last Mile Marketing white papers. This white paper series complements the Last Mile Marketing webinar by Performics.

Governance is the first in the series of Last Mile Marketing white papers. This white paper series complements the Last Mile Marketing webinar by Performics.

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  • 1. L AST MILE MARK E TI N G vo l. 1 Governance: The First Mile How to Create “Rules of the Road” to Dominate Digital Efficiently Does your business present a disconnected or, worse, conflicting brand offering to prospects and customers due GOVERNANCE ANALYTICS to diverse stakeholders and complex sales structures? If so, Last Mile Marketing can help you! Last Mile Marketing achieves a cost-effective, unified brand experience, across different devices and media. It requires examining every point where participants (consumers) interact with different levels of your business for various information needs during the purchase process. Today, brands have to be aggressive to stimulate and meet CONTENT PARTICIPATION the demand that is out there. Otherwise there is a big risk of your participants getting “detoured” by the competition. With lower barriers to entry online and ever changing Last Mile Marketing consists of four components: technologies, there is hyper competition for an empowered Governance, Analytics, Participation and Content. shopper who has many options. If a brand doesn’t go the The rest of this paper will focus on Governance. To last mile, it stands the risk of being disintermediated by new enhance your understanding of Last Mile Marketing, or more nimble players who will find the holes and disrupt we suggest you listen to our webinar series at http://www.slideshare.net/performics_us/videos the legacy brand’s business model.PERFORMICS LAST MILE MARKETING vol. 1 ©2013 Performics, Inc. Creative Commons Attribution Non-Commercial license granted. 1
  • 2. What is Last Mile Marketing? The “Last Mile” concept dates from the early days of How do you maximize your Last Mile Marketing expansion telecommunications. It refers to mapping the total possible opportunities for minimal cost? It is a four part answer universe of homes that could be connected to the network that begins with Governance. Last Mile Marketing’s rules with physical wires for telephones and other “hard wired” of the road. It establishes a consistent brand experience services. The price of getting a phone wire to a house in the for participants across an array of situations on various remote Ozark hill country might cost the phone company devices. With governed business processes in place, you are more than the customer (and future owners of the house) ensured that your brand presents the appropriate message could generate in revenue. As a result, the lifetime value based on the participant’s physical location, immediate would be negative. needs when seeking information, and his/her role in the purchase process. To expand their markets, telecom companies wired nearly every house in order to own every single “last What’s a Participant? ? mile” customer – despite the losses from some of them. Expansion was achieved by taking a portfolio view of the overall market and an increase in the customer’s value At Performics, we are changing both at the end of the last mile by using cross-sell tactics & marketing models and marketing expanded product offerings. Does this concept sound language to meet today’s evolving familiar? It should —smart marketers will utilize technology marketplace. We have replaced the word “consumer” and governance to eliminate redundancies and increase with “participant” to more accurately reflect the desired marketing efficiency. Using advanced analytics, marketers nature of the relationship between brands and people. will more accurately understand the lifetime value of a Marketing is no longer about “reach.” Today, marketing participant relationship. is about connecting with people and helping them to connect with each other. The only way companies can capture their full potential market, both online and offline, is by inspiring and activating Participation. 5 Reasons You Need Last Mile Marketing Now Today’s multi-touch, complex marketing ecosystem requires Last Mile Marketing because Marketers are expected to: 1. Manage their advertising budget effectively and 3. Adapt to the evolving digital landscape where 90% of consistently across the entire spectrum of biddable participant time is spent with digital media (including media to satisfy multiple stakeholders whose goals those using offline media). may diverge. Search, mobile, display and social media 4. Allocate appropriate human and financial resources to advertising are all bidded! their digital marketing teams. 2. Provide a consistent brand experience and related sales 5. Ensure all integrated marketing communications and process for participants regardless of where they are advertising are actionable and measurable. in the purchase process or what type of device they are using.PERFORMICS LAST MILE MARKETING vol. 1 ©2013 Performics, Inc. Creative Commons Attribution Non-Commercial license granted. 2
  • 3. Governance: Last Mile Marketing’s Implementing a governance program in your Last Mile Marketing initiative yields the following benefits and Rules of the Road opportunities organization-wide: In many organizations, internal and external silos are the •• Increases advertising coverage root cause of a fragmented “participant experience.” Internal silos exist due to different departments’ involvement, and •• Coordinates brand approach external silos occur as a result of various marketing partners •• R  educes overlapping advertising spend and and different sales and distribution channels. streamlines internal processes •• I mproves marketing performance by targeting Silos not only hinder a connected participant experience, advertising more efficiently but also increase total new customer acquisition costs. Consider search engine results: ad costs are variable based •• O  ffers faster, more effective crisis response on a competitive auction, and competing entities bid for when needed every keyword imaginable including your brand. When a Any organization can benefit from governance. Businesses participant types a technology brand’s name into a search containing multiple areas or organizational levels that box, the corporate parent may bid on its name to show an compete at different points in the purchase process derive ad for a special event; a software division may try to outbid the biggest benefit. The goal of governance is to convert them to show a specific product; and a hardware reseller participants efficiently without competing against other may bid to show a different, highly discounted product. areas within your organization. The approach is twofold: All parties may or may not represent the brand correctly or first, solve the media bidding conflicts in search and display; follow national ad campaign messaging guidelines. second, manage messaging and subsequent “experience” to offer the most relevant marketing throughout the purchase Sounds ineffective, right? These search results confuse journey. These coordinated efforts yield cost savings and participants and provide sub-optimal brand experiences. reduce the risk of losing prospects to competitors. From the organization’s perspective, these results represent increased acquisition costs because different departments At Performics, we help businesses design and manage bid against each other and potentially drive participants to flexible, accountable governance plans and strategies. In our experience, these types of business structures benefit most different databases. from governance: A governance program provides an overarching policy •• M  ulti-tier sales, various products and different framework and related strategy across multiple stakeholders. business units It ensures your organization’s digital marketing is deployed •• OEMs effectively with sufficient flexibility. It requires a consistent •• Retailers approach, including a united brand perspective that talks to •• Resellers and distributors participants with one voice and a data-centric method for prioritizing ads and marketing assets. •• Dealers and franchisees •• Affiliate programsPERFORMICS LAST MILE MARKETING vol. 1 ©2013 Performics, Inc. Creative Commons Attribution Non-Commercial license granted. 3
  • 4. Other factors influence the need for governance. 2. Extend to external gap and overlap analysis. They include the use of varied technologies within an For paid search, perform a detailed analysis of organization (ad serving, CRM, tracking, and/or business the top keywords. Where is the organization analytics), increased touchpoints, and multiple marketing- missing coverage, and who is best suited to related agencies. These elements typically necessitate “answer” the query? To maximize organization’s additional marketing, headcount or manual workarounds. visibility consider a quarterly analysis. [See: Fig. 1 - Keyword Governance Plan Example below] Drive Toward Successful Governance 3. Develop guidelines. Creating business-wide At its core, governance requires the gathering of relevant processes to support marketing initiatives information to create effective and efficient business will provide a consistent approach for processes that place the participant’s needs at the center participant engagement. of all marketing decisions. In digital marketing, participant 4. Test the process. Create a testing routine that needs are represented by data. To establish governance, includes variables and frequency. Then use the start with a neutral outsider, such as Performics, to review established framework in real time with real business documentation and data. This ensures an scenarios to improve process effectiveness. Learn unbiased, non-political arbitrator keeps order among various and apply the results. stakeholders and marketing resource owners. 5. Management process. Ensure there is a hierarchy of authority and marketing Follow these six steps to drive your governance on track in responsibility for business objectives associated your Last Mile Marketing program: with groups of keyword terms or data profiles. 1. Internal situation analysis. Collect and examine all 6. Engage Technology. Ensure consistent data internally relevant business documentation including treatment and reporting to reduce conflicts and detailed marketing plans and budgets. Specifically, confusion. Engage tech teams to develop an identify KPIs and metrics including search advertising integrated technology strategy that supports keyword lists and ROI thresholds for each. shared decisions. FIG. 1 - Keyword Governance Plan Example Instructions: Use this template for each major keyword (or phrase) to initiate your free governance plan. Reference Step 2 in “Drive Toward Successful Governance.” Download the Excel template at http://www.slideshare.net/ performics_us/performics-keyword-governance-plan-template. Participant Focused Needs/Context Decision Making Role Landing Page/ Info Expected Campaign Specifics [Word(s), Device Used, Location] [Maker, Influencer, End User] [Content] Needs new smartphone, Decision maker & end user Price, functionality, service providers Desktop search Brand Focused Campaign Specifics Keyword Business Owner Other Stakeholder(s) Keyword Type [Name/Business] [Name/Department] Regional & local stores, resellers, Core brand “Apple” Apple Corporate affiliates & servicers Regional & local stores, resellers, Product name “iPhone” Apple Corporate affiliates & servicers Regional & local stores, resellers, Brand + Generic “Apple Smartphone” Apple Corporate affiliates & servicers Brand + Geo-modified “Apple New York” Regional Manager Apple Corporate Geo-modified + “Manhattan Smartphone” Local Store Apple Corporate Generic Regional & local stores, resellers, Generic “Smartphone” Apple Corporate affiliates & servicersPERFORMICS LAST MILE MARKETING vol. 1 ©2013 Performics, Inc. Creative Commons Attribution Non-Commercial license granted. 4
  • 5. Develop Your Governance  Create an escalation procedure. Provide efficient  means for dealing with exceptions and/or conflicts. Strategy Now This is particularly important when you first implement While an outside partner such as Performics is critical changes, since there will undoubtedly be issues you to any Last Mile Marketing program, your organization didn’t anticipate. also needs these elements to maintain a successful governance program:  Build relevant metrics. As you gain knowledge and   Have a project champion. Choose an employee experience, track results to ensure you are monitoring with sufficient clout to require involved players and the important information accurately. Where necessary, stakeholders to take appropriate action when necessary. adapt your metrics to reflect gained knowledge of your participant’s total value. As you build “progressive  Streamline the process to make it predictable. profiles” of your participant base, you may want to Keep your process simple and focused. Last Mile change reporting metrics. Marketing isn’t a do-it-once-and-forget-about-it effort. Rather, it’s an ongoing process that’s integrated into  Prioritize goals. Determine the order of importance of  your digital marketing campaigns. Streamlining allows your objectives. They must be aligned with the rest of you to manage the process easily and review at least your business. quarterly to maximize results and savings.  Reassess the processes. Remember, “test and  learn” applies here, too! Once you implement your procedures, review them periodically to ensure your business remains on track and modify any parts of the processes that aren’t effective.PERFORMICS LAST MILE MARKETING vol. 1 ©2013 Performics, Inc. Creative Commons Attribution Non-Commercial license granted. 5
  • 6. National Brand Regional Group Local Local Dealer DealersGovernance Success:A Last Mile Marketing Case StudyA global auto manufacturer saved 33% on paid search search purchase. This process was tested on a group of 10media, plus saw a 14% increase in leads. priority search keywords, most of which had a high cost-per- click, across a test group of dealers. In addition, educationSituation: A large global automotive brand with programs were rolled out at national, regional, reseller,independent regional auto groups, as well as thousands of and dealer levels. Each program also included local-dealerlocal auto dealers, was spending millions of dollars on search campaign assistance.marketing branded and “generic” key terms such as “new car.” Result: Implementation of a governance strategy resultedAction: Performics collected information on the business’ in reduced costs and increased efficiency and volume.current processes, interviewed stakeholders, and analyzed Total clicks from paid search increased 14% and cost-per-the current paid search (PPC) buying strategy. Based click decreased 10% through coordinated bidding and theon this knowledge, we developed a governance model application of a cross-tier governance model. Even better,that included a new set of business rules to streamline since the pilot study, costs have remained at reduced levels.Do you want to increase cost effectiveness and reduce redundancy in yourmarketing bidding programs? Does your firm need an experienced neutraloutside perspective to help you get your governance program on track? If so,then contact Performics at 1-800-615-5126 or info@performics.comNot ready to commit but want to find out more about how Last Mile Marketingand governance can help you? Sign up for our email newsletter, follow us onTwitter (@Performics), or find us on Facebook! Creative Commons Attribution Non-Commercial license granted for use.