Move From Campaigns to Customers
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Move From Campaigns to Customers

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  • Commerce started with that local vendor – deep relationships! Like Sam & Alice from the brady bunch!  <br />
  • Then came the big box stores – scale but relationships suffered! Consumers feel like just a number. <br />
  • When you combine these is when you see the magic happen with your marketing efforts! <br /> Consumers are MORE likely to buy = higher conversions on marketing efforts! <br /> Builds loyalty! <br /> People spend more money! <br />
  • So as marketers, we focus on the campaign!! Think about right now – most retailers are FOCUSED on holiday campaigns..Black Friday/Cyber Monday/etc! <br /> Forrester reports 80% of budgets are still spent on mass acquisition. While customer acquisition is necessary, we need to figure out how to optimize that spend. <br />
  • Let’s look at how we do acquisition today… <br /> 3% converted on that email send …that’s pretty good right? I think so!! <br /> So 97% ignored, that’s ok – weren’t in market for my product, but I have them in my list so I’ll just send them another message…and the cycle goes on and on. <br />
  • Bad news – Melissa here has moved on. <br />
  • While that might feel like I have good performance, over time things are dwindling. When we are held to those Year over Year increases - we’ve got some ground to make up. <br />
  • So I start sending more volume – right? <br /> WRONG - volume is not a strategy…When you just batch and blast – there’s a point of dimensioning returns. Leading you into campaign crisis because your “campaign” isn’t performing like it once was… <br />
  • So let’s start with the customer!! Know who they are, engage them in a unique experience and then lead them to deeper engagement with your brand! <br />
  • First step…put the customer in the middle of your marketing strategy. Find out who “Melissa” is and what she likes and how she behaves! <br /> Second, send her an individualized messaging…(but not creepy)!!! <br />
  • Let’s look at how that would look – individualized messaging is not personalization – but a series of campaigns triggered automatically off her behaviors. <br /> When you build your marketing around the customer with these individualize experiences, your marketing “cycle” is going to look more like this – than our earlier blast then blast again model. This is what we call marketing orchestration – you’re orchestrating an experience for that consumer. <br />
  • To determine what experiences you need to build on - Let’s start by looking at the customer journey. <br />
  • Knowing me – building profiles, learning what consumers are doing, putting them into segments. <br /> Engage me – give me relevant messages (aka experiences) at the right time. <br /> Lead me – get me involved with your brand! <br /> Just like behavioral interview questions – past behaviors usually predict how one will behave in the future! <br />
  • Here’s the path that Melissa took – how do we get her from that low value store purchase to engaging with us on multiple channels?? <br />
  • The risk is what happens when she decides to leave our path??? We need to figure out a way to get her engaged again…because – we should “know her” right? <br />
  • This is where you need to start digging in with analytics. I turn to analytics to help question… <br /> Reporting – reporting is just how campaign x performed…just metrics on a page. Analytics is looking at those reports and starting to ask questions. <br /> But then you don’t have to have that multi-million dollar CRM project installed…yeah, it helps – but you have the customer data you need and can start asking it questions…then use it to find answers. <br /> You can have an analytics team or you can do this yourself…. <br /> Chris Nickel from Epson will be talking a little about how he got to the point with his data – he had to have a little help with IT/IS department and how they worked together but then <br /> Pulled it back a bit to his group and how it’s been changing his marketing strategy. <br />
  • So this is where I’d start with analytics. Look at your campaign – what can you tell from that – what questions can you ask? You CAN be curious…and you should be! <br /> Then start building out blocks – do it in chunks. What did that segment of women under 35 do with that campaign..what did they not do – where did they click, where did they not click. <br /> What if you tested something with this group? <br /> You get the picture. <br /> You don’t have to do it all at once – it’s builds upon itself and leads to more and more questions. <br />
  • Take the activity they do and see what type of behaviors you can associate. If you want to just start somewhere – start with activity…then move into offline/or behavioral information…then if you want to get fancy, add in the attitudinal data…but the main bulk of your benefit is going to come together when you add activity PLUS behavioral to measure and optimize your marketing efforts – CROSS CHANNEL. <br /> So example…Are those women under 35 engaging in email? Do they do better with the display campaign (can be same creative)- what about mobile or social??? Where have their past purchases come from? How can you get creative and get them to behave like they did in one channel in another? How does the sequence of what they see (email, display, social content) play into the buying decision – looking at that over a course of 30 days before purchase?? Start from the event and go back…like when you’re playing degrees of kevin bacon with an actor – show of hands..how many people START with kevin bacon and work their way back to another actor??? <br />
  • So that it looks like this – now we’re ENGAGING the customer… <br /> We know what they want and when they respond…we just have to deliver. But start with sending an email…then add a display component…then add in a mobile message. Measure each event on it’s own and separate from it’s base….measure 1 thing at a time or you won’t know what is really contributing to the success….AND THIS IS HARD TO DO!! You get excited…or just admit it and do it all at one time, but don’t be surprised when you can’t determine what the specific success item really was! <br />
  • How can we develop case studies for this kind of thing? <br />
  • Then when you start putting it all together it maps out like this…You know your customer, the segments of your business and have the programs in place to individualize the marketing. <br /> Then you can customize the content to be more RELEVANT to that consumer…in whatever channel they want to use. AND you still use the same team you had before!! <br /> Then you can start leading and making decisions – you know what’s performing and where…then you move to the SCIENCE!!! Predictive analytics…. <br /> Remember we talked about behaviors now usually predict future behaviors. <br />
  • By leading you move to proactive marketing…not just reacting all the time. <br /> Next Action Marketing Programs: leverage data to predict a customer’s next most likely action <br /> Unsub / Churn Predictors: stay ahead of customer attrition with predictive models <br /> Optimized Customer Acquisition: implement integrated, best customer look-a-like models to target customer acquisition opportunities <br /> I’ve been there- reactive marketing is tiring and you’re never good enough!! It gets old…what’s fun is proactive…trust me – it’s so much more PEACEFUL for your life…and you are so much more confident because YOU KNOW what’s going to impact revenue and be like “I’ve got this…” now…what can we do? <br /> Let’s get into some examples… <br />
  • Optimization based on calendar, occasion and past behavior as well as “potential” (a historical customer and a look-a-like) – right products, right category, right price, right offer to the right customer <br /> Dynamic content <br /> Website APIs? <br /> Social integration? <br />
  • Profile Data <br /> Demographic Data <br /> Real-Time Data <br /> Preference Data <br />
  • Understand the brand and find the path those customers wanted to go down…INDIVIDUALIZED Experience… <br /> The wanted to know the customer and engage the customer! <br />
  • Started with building profiles! <br />
  • Then they started dynamically serving content BASED on those segments/profiles. <br />
  • Then the way you interact (engage) is starting to change based on what we know about you. <br />
  • Then applying to different channels – well, that’s just the next step!! Once you have the formula down – it’s easy to start adding in channels. <br /> Chris with Epson is going to tell you that each channel has nuance&apos;s, but you have to have the key elements in place --- then it’s easy to just start adding the channels. <br />
  • Epson America, Inc., a global technology company at the forefront of technological revolutions in imaging, robotics, precision machinery and electronics. Epson offers an extensive array of award-winning image capture and image output products for the consumer, photographic, business and graphic arts markets. The company is also a leading supplier of value-added point-of-sale (POS) printers and transaction terminals for the retail market. <br />
  • Questions: <br /> You took a look at your email list & saw that 90% of subscribers hadn’t opened an email in the last year…obviously that didn’t match customer buying cycles…why did you dig deeper? <br /> In the case study, you stated that email is a strong mktg tactic – How did you decide to build off that foundation to help with engagement issues? <br /> What made you explore more automated email campaigns? Where did you even start? <br /> What challenges did you face building out automated campaigns? Executives like it?? What about technical challenges? <br /> What has changed in your marketing strategy for your team now that you have gone through this process? (move towards relationship & what they know about the customer) <br /> I understand you’re getting into adding display to your orchestration – why? How did you justify adding that to the mix? <br />
  • Opportunity: <br /> - Heavily manual and untargeted process to build and execute campaigns <br /> - 90% of audience inactive <br /> Millions of subscribers had not clicked in over 12 months <br /> - No personalization <br /> Solution: <br /> - Launch automated welcome and thank you campaigns <br /> Free up resources for additional campaigns <br /> - Execute win-back and repermission campaigns <br /> Offer new calls-to-action to reengage inactive audience <br /> - Utilize cross-channel data to drive relevancy within targeted campaigns <br /> Results: <br /> - Automated welcome and thank you campaigns free up resources <br /> Hands-off approach allows team to focus on maintaining a clean <br /> - Win-back and repermission campaigns create active customer base <br /> Database now a powerful asset <br /> Overall increase in conversion rates <br /> - Segmentation and target messaging helps establish long-lasting relationships <br /> More relevant and timely messaging to customers <br /> Increase in overall revenue <br />
  • And a great example of a company driving success with Relationship Retargeting is Dollar Thrifty. <br />
  • Dollar Thrifty’s main goal has always been to increase rentals. And for the last few years they placed most of the focus on the top of their funnel…bookings. What they realized, however, is that between booking and pickup, there was a significant opportunity for improvement. And by orienting their efforts towards relationship marketing, instead of acquisition marketing, they would drive significantly better ROI. <br />
  • The initial approach to improve pickup rate was to optimize their booking reminder program. They call the program “Eminder”. It consist of a single email reminding the booker of their upcoming reservation. In 2010 Dollar optimized the program by improving the messaging and creative of the email and by testing the most effective timing, which was determined to be 2 days prior to pickup date. Both provided improvement, but Dollar believed they could be doing more. The issue was that they didn’t want to reach the bookers through additional email touches. <br />
  • What they did, in the 2011 update to the program, was to introduce targeted, coordinated display ads 7 days prior to a pickup date. This allowed for an additional 35 potential touches with near-term renters. And it would work regardless of the booking source – website, 1-800 number, aggregator, agent, etc. <br />
  • And the results have been great. They have seen significant increase in the revenue driven by programs that include coordinated messages across both email and display ads…to the tune of a 22% increase, with a 47x ROI. And they have also seen an almost tripling of site revisit rate for individuals reach with a coordinated contact strategy. <br />
  • And beyond their initial triggered eMinder program, DTAG is now implement display as part of targeted programs based on email behavior. <br />

Move From Campaigns to Customers Presentation Transcript

  • 1. Move from campaigns to customers: marketing to today’s digitally savvy consumer Sandy Martin Sr. Strategy Consultant,
  • 2. Welcome to the next era of marketing.
  • 3. Strong individual relationships… But no scale.
  • 4. Great scale… But at the expense of the relationship
  • 5. How do we deliver amazing individual experiences, only at massive scale?
  • 6. Those who individualize experiences & build relationships are rewarded. Deliver individualized experiences: Sources: Responsys consumer survey, 2013 Adobe Digital Index, 2012 Build lasting relationships:
  • 7. But marketing today is still driven by the campaign, not the individual consumer. Campaign dictates the message. Campaign dictates the channel. Campaign dictates the timing. Campaign dictates the audience. “Retailers spend almost 80% of their interactive marketing budgets on mass acquisition vehicles.”
  • 8. Old Mindset: How do I maximize campaign conversion? 97% Ignored …or Annoyed 3% Converted The Mass Market $ Back to the start for re-conversion. The Transaction
  • 9. The consumer has moved on.
  • 10. Marketers get stuck in a “Campaign Crisis”
  • 11. It’s time to flip the model.
  • 12. New Mindset: How do I deliver amazing individual experiences? Build profiles & capture permissions Individually targeted messages deliver $ 3x Higher Conversion Mass Market Relationship Transaction
  • 13. New Approach: Focus on the individual relationship. Orchestrated experiences deliver 5x higher conversion $ Mass Market Relationship Transaction
  • 14. It Starts With a Customer Journey.
  • 15. Today’s consumers are cross-channel Know me. Engage me. Lead me. Consumers expect you to know them across all digital channels Consumers demand a relevant, engaging consumer experience Consumers want you to anticipate future needs to maintain engagement and loyalty Your marketing strategy needs to align with consumer behavior. 21
  • 16. CUSTOMER JOURNEY Using Marketing to Move From Low to High Value Customer Value Social Share In-store Purchase, Opt-in Targeted Cross-Channel Messages Cross-Sell Message Low Customer Activity Customer Activity Customer Purchase October 30, 2013 22 Mobile Message High
  • 17. CUSTOMER JOURNEY What Happens When Customers Leave the Optimal Path? Customer Value ? ? ? Customer Activity Customer Activity Customer Purchase 24
  • 18. USE ANALYTICS: Actionable analytics drive results Benefit: Enterprise level customer insights Analytics Complexity Benefit: Customer-led analytics, focused on “actionability” Benefit: Channel specific insights Opportunity: Leverages all the customer data that matters Insights and recommendations integrated with technology Challenges: Complexity of analysis often makes it difficult to act on Often difficult to get analytics team to focus on digital media Insights and recommendations are made independent of technology / execution Challenge: informative but not deep enough to drive change Traditional Reporting / Insights (campaign focus). Actionable Analytics (results focus) Enterprise Analytics (CRM focus)
  • 19. ANALYTICS FRAMEWORK: Core Building Blocks Segmentation Measurement Marketing ROI • Campaign • Channel ROI • Attribution Targeting Lifecycle Marketing ROI • • • Velocity Cross-channel Loyalty • Activity • Behavioral / Value • Attitudinal Optimization Proactive • • • Predictive Next Action Test & Learn
  • 20. Customer Segmentation Approach 3 Attitudinal • Psychographic • Customer Modeling • Brand Integration • Drives audience profiling • Integrates brand and direct to consumer Behavioral • Past Purchase • Content Consumed • Customer Value • Drives message content • Refines customer targeting, offer optimization 2 1 Activity + • Engagement by Channel • Recency • Frequency • Drives channel preference • Foundational layer for additional segmentation attributes
  • 21. ENGAGE ME: Integrated Lifecycle Display Program This is individualization, automation and orchestration in action!
  • 22. Putting It Together: Driving Scalable Customer-Led Marketing 1 Customer Segments NSM Programs Know me: Integrate & analyze customer data Build action-oriented segments Content 2 Channel web Engage me: email Go from campaigns to customers by matching message & channel. social dynamic Target content by customer segment Attribution Revenue Trends 4,000 Email Purchase Propensity 3,000 2,000 0 RPE Determine marketing ROI and customer value 100 90 60% 80 70 50% 1 0 2 g u A 1 0 2 t p e S 1 0 2 t c O 1 0 2 v o N 1 0 2 c e D 1 0 2 n a J 1 0 2 b e F 1 0 2 r a M 1 0 2 r p A 1 0 2 y a M 1 0 2 n u J 1 0 2 l u 1 0 2 g u A 1 0 2 tJ p e S 1 0 2 t c O 1 0 2 v o N 1 0 2 c e D 1 0 2 n a J 1 0 2 b e F 1 0 2 r a M 1 0 2 r p A 1 0 2 y a M 1 0 2 n u J 1 0 2 l u J 1,000 70% e r c s b u S l i a m E o % f 5,000 Revenue (Hundreds) Predictive Channel Attribution $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 Delivered (thousands) display Select best channel based on consumer engagement ROI 6,000 Drive ongoing results with customer-led models and insights. mobile static 3 Lead me: Develop scalable lifecycle programs 60 50 40% 30% 40 30 x d I y t i n p o e s a h c r u P Put customers first by turning consumer data into actionable marketing asset. 20% 20 10 0 10% Email Mobile Social Display Search Adjust marketing spend with smart attribution 0% Dormant Lapsed Loyalists Actives Move to proactive marketing programs
  • 23. Moving From Reactive to Proactive Marketing Segmented message ROI Predictive message ROI Behavior segments drive smarter content, relevant messaging Proactive Marketing ROI Reactive Leverage past behavior to predict future behavior, proactive messaging
  • 24. “Our approach is to give customers a chance to understand our brand and find the path they are interested in. Then we target messaging based on what they love.”
  • 25. Build Profiles & Permission Start by capturing permission and building profiles across email, social, and the web.
  • 26. Build Profiles & Permission Deliver Individualiz ed Messages Deliver personalized interactions with dynamic content, targeted to each individual.
  • 27. Build Profiles & Permission Deliver Individualiz ed Messages Orchestrate Lifecycle Interactions Orchestrate interactions based on profiles and behavior throughout the customer lifecycle.
  • 28. Build Profiles & Permission Apply the same customer centric approach across multiple channels, like email and display. Orchestrate Lifecycle Interactions Communicate Across Channels display email Deliver Individualized Messages
  • 29. Q&A with Chris Nickel Senior Manager, CRM & Direct Response Marketing, Epson
  • 30. It All Comes Down to Four Objectives… 1. Drive Revenue – Leverage the low cost interactive marketing channels to drive significant revenue with a high ROI 1. Deepen Customer Engagement – Utilize various data sources to ensure relevant and timely communication 1. Improve Efficiency – Quickly set up top performing programs/campaigns by integrating with technology 1. Cross-channel Coordination – Integrate your marketing communications across multiple channels based on customer preference and behavior
  • 31. Thank You.
  • 32. Sandy Martin Sr. Strategy Consultant, SandyM@responsys.com @sandylmartin Responsys, Inc.