How Email is Revolutionising Performance Marketing - Mark Ash, Teradata
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Email has long been accepted as one of the most powerful and cost effective digital channels available. However, the emergence of disruptive technologies and programmatic buying as well as the increased drive towards an omni-channel marketing strategy has massively enhanced the role that email plays in the marketing ecosystem. Mark Ash discusses why email is the key to a data-driven marketing strategy that is revolutionising performance marketing.
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How Email is Revolutionising Performance Marketing - Mark Ash, Teradata
- 1. How Email is Revolutionising Performance Marketing Mark Ash Director, Teradata Interactive UK&I @TeradataMark October 2014
- 2. 2 About Teradata Interactive •Global email network and ESP delivering over 10 billion emails/quarter •Specialists in multi-channel marketing, email marketing and lead generation •Pioneers of big data marketing and marketing automation technology Vision To enable our customers to collect and use data to improve their customer experience and create a competitive advantage
- 3. 3 Email: a turbulent history First email sent ‘email’ first mentioned The word ‘spam added to OED MS Outlook released Hotmail – 1st webmail service Launch of the first IPhone First multimedia email SPF and AOL feedback loop established Gmail launched in beta Data Protection Act. Can-Spam follows in 2003
- 4. 4 How effective really is email?
- 5. 5 ROI PER DOLLAR SPENT, BY CHANNEL (2011) Email $40.56 Search $22.24 Display Ads $19.72 Mobile $10.51 Catalogs $7.30 Source: Magill Report, 2011 ROI Per £ SPENT (2014) Email £24.93 (+16% vs. 2013) Source: DMA, National Client Email Report, 2014 “Marketers still rate email as the best channel for return on investment after SEO” (econsultancy.com, email marketing census, 2013) “Email is the workhorse of digital marketing” – Gartner “There’s a reason your inbox always seems jam-packed: e-mail marketing works” - McKinsey, Jan 2014 MarketingSherpa, 2013
- 6. 6 Email is dead, long live social media? •Total no. of email accounts expected to increase from 3.9 billion (2013) to over 4.9 billion by 2017 (The Radicati Group "Email Statistics Report 2013-2017“) •91% of all consumers still reporting daily email use (McKinsey iConsumer survey“)
- 7. 7 •78% of consumers check email on their mobile phone. “Always Connected”, IDC and Facebook - (2013) •Email is the most popular activity on a smartphone. 79% uses their smartphone more for reading email than for making calls. “2013 Digital Publishing Report, econsultancy.com” •Mobile purchasing decisions are most influenced by commercial emails (71%) only surpassed by the influence of friends (87%). “2013 Digital Publishing Report: Retail, econsultancy.com” Email is mobile
- 8. 8 “E-mail remains a significantly more effective way to acquire customers than social media—nearly 40 times that of Facebook and Twitter combined..” McKinsey, Jan 2014, ‘Why marketers should keep sending you emails”
- 9. 9 •95 percent of teens who fan companies on Facebook also subscribe to the firm’s email list •Gen Y would be more reluctant to give up email than social media (PMN/Pace University Oct 2009“) Gen Y still use email
- 10. 10 Why email is perfect for influencing purchase decision Unique format capabilities The largest digital ad format Always on unfettered attention of the user Multiple calls to action Easily shared Time-sensitive delivery Localised and highly targeted 1-2-1 personalisation capability A long-lasting impact •38% of respondents keep emails for at least a week •45% of consumers bear the info in mind for later use •53% save the email to refer to at a later date •56% go to the company’s website but do not click “DMA national client email report, 2012”
- 11. 11 Email is an essential tool for CRM but vastly under-used for acquisition… Why?
- 12. 12 Siloed marketing practice & technology •Email undervalued by last click wins. Over 50% of it’s value is not tracked. •It’s impact across customer journey is misunderstood •Email is perceived as ‘easy’ – the value of targeting and creativity is overlooked leading to poor results. •Lack of expertise in acquisition teams, usually managed by CRM teams •Siloed org structures limited it’s integration across other channels
- 13. 13 What does the future hold for email…
- 14. 14 Teradata Confidential 14 Digital disruption is creating a marketing revolution CRM & Advertising worlds collide
- 15. 15 •Number of digital touch points increasing •Disruption of customer loyalty from new competitors •Marketing being driven by contextual personalisation •Customers still expect synchronicity and relevance Internet of Things is changing how we market to our customers
- 16. 16 Business transformation is a certainty 16 •The rejection of ‘Silo-ism’. •Re-organisation around customer experiences •Sales attribution centralised •Replacement of channel KPIs with omni-channel success metrics
- 17. 17 Programmatic & email: a meeting of minds
- 18. 18 So how will email revolutionise performance marketing…
- 19. 19 Email becomes the driver of ‘demand creation’ 1.Programmatic driven by lead generation profiling and prospect identification 2.Guaranteed driver of incremental sales 3.Nurture – lead generation creates a continuous dialogue with prospects throughout the buying process 4.Email delivers contextual personalisation and channel synchronisation 5.Once registered you no longer have to advertise “One way to sell a consumer something in the future is to get their attention in advance” Seth Godin
- 20. 20 •Email is the ‘omni-channel passport’ •Single connector between digital touchpoints. •Enable event-driven communication across all channels Email will be the catalyst for an omni-channel reality
- 21. 21 5 Examples of customer-centric multi-channel email E-receipts Email-to-display retargeting Data on-boarding Social lead generation Display PPC Social RTIM: Real-timed dynamic media planning & channel synchronisation Email DM Call Centre In-store Browsing Mobile Live email
- 22. 22 The threat from data leakage 22 Safeguard your commercial advantage
- 23. 23 Mark Ash Director UK&I, Teradata Interactive mark.ash@teradata.com @TeradataMark Stand 16 Thanks for listening
- 24. 24 24
Editor's Notes
- Good afternoon everyone. My name’s Mark Ash and I represent Teradata Interactive which is the digital marketing services division within Teradata. For those of you who don’t know, Teradata is a global leader in data warehousing, integrated marketing management and real-time marketing automation technology. We operate in 77 countries globally and help over 3,000 clients achieve a more integrated data-driven marketing strategy. As a business unit, our primary objective is to help our clients grow their business by using data to create a commercial advantage; to use it to acquire new customers and help them communicate more effectively. As a company specialising in marketing automation and multi-channel campaign management, everything we do is geared towards achieving a data-driven omni-channel customer experience, since we believe that what you know about your customers and prospects is the only differentiator a company has from its competitors. Today, I’d like to talk about email and why it is set to become the key driver of performance in digital marketing….
- Ever since the first email was sent in 1971 by Ray Tomlinson., it’s fair to say that email has revolutionised our modern society in liberating open communication and increasing the freedom of speech. However as with many modern inventions, it’s ability to reach into our hearts and minds has been exploited by spammers which has plagued the best intentions of commercial marketers ever since. Despite the efforts of ISPs and lawmakers to differentiate legitimate commercial mail from the malicious, the channel continues to fall pray to some negative perceptions, and many question its ability within a performance marketing perspective to drive According to "2014 Internet Security Threat Report, Volume 19" published by Symantec Corporation, Spam volume dropped to 66% of all email traffic Less than 1 person in 2000 reports email as Spam (AlchemyWorx, 2013“) Billed as the ‘Father of Spam’ Gary Thuerk, a Marketing Manager at Digital Equipment Corp started the ball rolling for commercial email by sending the first mass emailing. (Ok, it was only a few hundred but in those days that was mass mailing!). In 1978, Thuerk sent an email promoting DEC machines to 400 users via Arpanet. What would have then been a complete novelty for recipients (receiving a sales/marketing message direct to their computer’s inbox) resulted in $13 million worth of sales for DEC machines (and a few complaints!). From the start, email launched itself as an effective channel for direct marketing.
- So what are the negative perceptions of email
- Industry experts are totally agreed that email delivers perhaps the best performance of all channels.
- Despite years of commentators bemoaning the death of email by social media, email is actually growing, and ironically – due in part to social media There is most definitely some cannablisation of traffic but rather than become it’s killer, social networking has developed a symbiotic relationship with email which it uses to deliver relevant digests of information, deliver alerts, create demand for and sustain interest in the channel.
- What’s more as device digression continues across mobile, tablet, smartphone and smartwatches – email continues to be supported.
- …who said email would be killed by social!
- Again, it seems that Generation Y and more commonly Gen Z understand the relevance of email and rely on it as much as any other channel.
- The reason why email has become so successful is the impact of its format. It’s ability to deliver complex messages that hold a far longer impact than any other ad format mean that email generates significant influence comaraed to other ad formats. Unlike some search and banner ads that provide a purely navigational function or re-iterative brand recall, email has the power to transform mindsets, be forwarded on and become viral. As such it’s value as a branding mechanism is just as valuable as it is a direct response channel. Even when the email isn’t opened.
- 81% of US online shoppers are more likely to make additional purchases, either online or in a store, as a result of emails... - Harris Interactive It’s true that a distinction is created between the essential nature of email for CRM and it’s value for outbound advertising and marketing formats, namely email solus, sponsorship is massively under-utilised.
- When it comes to performance marketing, one of the biggest victims of the stupidity that is last click wins has been email. Marketers can be disappointed when it comes to the performance of email acquisition activity when tracked through this methodology largely because of its position in the customer journey. LCW simply doesn’t reflect the nature of human buying process and the sooner it is disposed of, the more quickly marketers can scale their acquisition marketing activities in the most cost effective manner possible. We already see the impact that email has outside of clickstream. For a fashion retailer we tracked that for every £1 in direct sales, we see it assist £6 of sales in other channels. 97% overlap with other channels. From our sales attribution studies, email is most prominent in new customer acquisition at the start and middle of the customer buying decision making process. It’s power is in transforming mindsets, delivering complex messages, creating influence and nurturing prospect relationships. This is a critical factor if you are using email to sell products & services which have a long-term buying cycle. Therefore it’s value to raise brand awareness and nurture prospects is far more valuable even if consumers then convert through another channel. It’s comparison with incentivised CPA is on a LCW basis unbalanced. As such, lead generation and email advertising should be compared to display advertising. People think email is easy to send and it is. Especially given the range of technologies out there. As such a lot of marketers invest in email only to discard the functionality to deliver personalisation and leave creative to the last minute. Lead generation does not take into account the unique characteristics of a user – they are usually sent the same tired newsletter – and their particular interest in your business is ignored. To do it properly requires time effort and skill – but the results more than justify the investment. Personalisation can deliver conversion improvements from 60% of up to 350%. This is largely because of a lack of expertise in acquisition teams who have traditionally focused on immediate broad brand reach messaging and not considered the more long-term approach to lead generation and prospect pool building. As far as lead generation is concerned, you are building a data asset that will generate sales typically over a 2 to 3 year period. Perhaps the most effective types of email acquisition messages are those that are integrated with other channels, notably social media – but internal barriers (agency partners or internal silos) serve to limit integration.
- We are seeing advertising and CRM worlds collide. Advertisers see the benefit of using data – the increases in performance are 10x – and in doing so are changing people’s mindsets as to the possibility of omni-channel integration.
- More devices mean more competition for share of voice – it means your existing customer loyalty will come under attack unless you digitise your customer relationships and create those digital touch points. 8.7billion in 2012 growing to 16 billion in 2014 connected devices according to ABI.
- Throw real-time bidding into the mix and for the first time, data has a real value. It’s no longer about impressions on websites – but who is reaching them. The ability to target an individual based on their purchasing affinity has become the currency of tomorrow. Publisher display inventory is therefore commoditised. Targeting users, their future intention, buying considerations Our clients are beginning to see the value that email prospect data can play in enhancing. Email data and lead generation profiling is playing an important part of this since it can inform the bidding process. If you have lots of accurately profiled user data – you are sitting on a goldmine. The likes of Bluekai and exelate have built up big businesses on the strength of email data. This is only going to increase because of the changes in data protection which could outlaw soft opt-out of offline mailing data and cookie data – and the stringent opt-in process of email leaves it in high demand.
- It’s no surprise that lead generation is the fastest growing part of performance marketing – it’s predicted to grow 4-fold by 2017 according to the IAB and generates an ROI of 9 to 1. - why – because it allows you to understand your customers and use it to personalise their offering, massively increase personalisation and reduce advertising wastage. Media planning and buying for acquisition will be entirely driven by what you know about your prospects. Re-targeters have already made that clear However, it’s not just about end of funnel – the earlier you can identify a prospect, the quicker you can nurture them into becoming a buyer. If you don’t, you risk losing share of voice – since your prospects will be cherry picked What’s more you will have to pay the highest premium to reach your audience at the key points of the year. Through our lead generation and nurture programme – we identify consumers future buying plans, their considerations, their emotional attachment to your brand and use this to craft messages that sell your business in the right way to convert them into buyers. Hinge research institute – companies that operate online lead generation have a higher growth rate with a direct link between the number of leads generated and profitability. http://www.marketingprofs.com/charts/2011/6341/online-lead-generation-drives-higher-growth-profitability http://get.leadintelligence.co.uk/updates/deloitte-ranks-magnetise-group-20th-2013-uk-technology-fast-50-initiative/ http://www.iabuk.net/research/library/the-value-of-uk-online-performance-marketing-january-2013 This is well established in B2B but for some reasons consumer marketers aren’t so concerned with delivering a 1-2-1 service and as such are missing a trick.
- TDW Case study of joining all the dots. Going into the call center. Email address the single easiest way for users to identify themselves across all channels. We build SCV not for the sake of getting a single customer view but by acting upon the data. Marketers need to create apps that have a registration event – and in doing so allow you to connect devices and channels to a single user via email address.
- Data onboarding – connecting the dots to enable true omni-channel campaign planning. When a user goes into a store. Also if people browse online but purchase offline – we can stop re-targeting. We then use our RTIM, our real-time decisioning algorithm to decide on the next best offer and the next appropriate marketing channel to serve the ad. Email to display re-targeting – we use 1st party data and behavioural data from email interactions to launch display or social media re-targeting. We build in a recency frequency Social lead generation allows us to connect social media profile data to a known user record. In doing so we are able to dynamically personalise messages or responses based on how somebody feels about a brand or their ability to react depending on their social sentiment on twitter. Live email allows us to use live pricing or react to other data-driven events to increase the relevance. We use this across several verticals to deliver 1-2-1 personalised interest rates in banking for instance based on the very latest market information. E-receipts is a tactic we employ with retailers to allow us to connect offline activity with online and correlate the contributory impact of both environments. All show you how email is the lynchpin to driving omni-channel customer experiences and help break down silo’d campaign planning.
- We integrate with hundreds of technology partners and see how advertisers and publishers are using their data. Eat 24 – case study – use email to manage relationships – rather than someone else. A lot of companies speaking to us about how they safeguard their data. This is particularly important in RTB where simply tagging your website identifies potential buyers to third parties – and this may be indirectly used by competitors. Third party onboarding and re-targeting can potentially be used to enhance a third party databases that may be inadvertently be used by a competitor. To do this we help clients build their own DMP, safeguarding their cookie data and identification of prospects and lessen reliance on third parties who effectively own their cookie pool. Showing ads across your website – isn’t about your inventory – the value to networks is about profiling your users. You need to consider where it sits.