The Big Questions of 2013


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The Big Questions of 2013

  1. 1. The Big Questions of 2013
  2. 2. Ernan Roman Reggie Brady Lois Brayfield Carolyn Goodman Ken Lane President President President President / Senior Consultant Ernan Roman Reggie Brady J. Schmid Creative Director J. SchmidDirect Marketing Marketing Goodman Corp. Solutions reggie@ Partners, Inc. carolyn@goodman 2
  3. 3. The Big Questions1. Multichannel: How do you really make multichannel work?2. Acquisition: Has the acquisition model changed? What is working?3. Mobile: What can mobile really do for me?4. Budgets / Attribution: Allocation. Where and how do I allocate my marketing dollars and resources?5. Social: How much of my budget / time / energy should be dedicated to social media initiatives? 3
  4. 4. Multichannel (Ernan Roman)Per VoC Research: Today’s shopper is uniquely multi-dimensional; multi-channel multi-purpose Many reported using multiple media, often at the same time. Mobile has only added to this complexity. Media preferences and aversions are becoming more pronounced. Therefore gathering individual customer’s media preference and aversion data is now essential. 4
  5. 5. Multichannel (Ernan Roman) Spending based on the number of channels: Multichannel customers spend 2 to 3x more than single-channel shoppers Consumers who engage across three or more channels spend 6 to 10x more Multichannel spending results in incremental spending… not revenue cannibalism! Note: The channel used for the purchase is often not indicative of shopping habits. Most use multiple media to shop, and often, to purchase. 5
  6. 6. Multichannel (Ken Lane) Too many marketers are simply “chasing” these various channels in a silo-ed approach Marketing spend goes up ROI goes down More and more, these silos turn out to be related Sequential Synergistic 6
  7. 7. Acquisition (Reggie Brady)Acquisition is tough! Response rates and ROI aredeclining across all media channels Direct mail prospecting/lead generation response 2003 – 2.14% 2010 – 1.38% 2012 – 1.28% Cost per order for prospecting/lead generation: Newspaper – $36 Direct mail, postcards, email & paid search – between $55 & $55 Telemarketing – $190 DMA Response Rate Report 2012 Image source: 7
  8. 8. Acquisition (Reggie Brady)Bright spots Lead nurturing for B2B via automated emails in combination with lead scoring Content marketing ‒ information you create to help solve the problems your audience cares about Omni-channel marketing ‒ customers and move from channel to channel on a regular basis - often to perform the same task Image source: 8
  9. 9. Acquisition (Lois Brayfield) If prospects have already engaged at a meaningful level, they are 68% more likely to purchase in the future. (McKinsey & Co.) Boldly test a new twist on an old model Don’t think of prospect lists as “one and done” Explore new ways to get prospects to raise their hand (print and digital) Develop a plan to convert later 9
  10. 10. Mobile (Carolyn Goodman) Options: SMS, MMS, Push Notifications, Mobile Gaming, Mobile Web Marketing, QR codes & Location-Based Services Most popular option: SMS 100 million sent every day Read in 4 minutes 4/5 consumers use a smartphone to shop 74% wait only 5 seconds for a page to load Most popular app: FourSquare 25MM users  By 2014, mobile internet 2.5+ billion check-ins usage will overtake 1+ million merchants desktop 10
  11. 11. Mobile (Carolyn Goodman) 36% of all emails opened on a mobile device: Need to rethink email and web page design: 320 – 550 px wide Minimum 14 px for body text, 16 px for headlines 35 character limit on headlines Single or double column design Don’t put clickable images or links side by side Fingertip elements: 44 x 44 points Higher contrast between content is ideal Test before blasting on different mobile devices 11
  12. 12. Mobile (Ernan Roman)Per VoC Research: Mobile drives increased multichannel shopping…and spending. Also, more informed purchase decisions: Mobile devices facilitate comparison shopping and making informed decisions. Result: More empowered customers. More competition for marketers. Takeaway: Only way to achieve long term, multichannel engagement and differentiation is to understand individual customer preferences for messaging, offers and media mix. 12
  13. 13. Budgets / Attribution (Ken Lane) It used to be that you mailed and the phone rang, blasted then your orders increased That was then, this is now Mobile – sales sourced from mobile devices are the fastest growing channel of significance Google reports that 45% of all searches are from a mobile device and this figure will hit 70% by year end 2013 Social – Facebook, Twitter & Pinterest 13
  14. 14. Budgets / Attribution (Ken Lane) You cannot manage what you do not measure Now, more than ever, a Measure & Manage approach to your business is tantamount to success Software packages are available Programmers in big data using Hadoop Proper sales attribution is critical Last channel - flawed First channel – “fair” but can lead to false positives Weighted attribution For your consideration… 14
  15. 15. Awareness Budgets / Attribution Interest (Reggie Brady) Ways to determine attribution Evaluation First touch (not great! – but it did stimulate interest) Commitment Last touch (not great! – it did stimulate response, but undervalues the early stages of the purchasing funnel) Buy Fractional attribution – gives varying percentages to each touch-point leading up to conversion (difficult to do ... but more accurate) Consider doing “hold out tests” to determine the effectiveness of individual channels (more often done in BtoC, more difficult with BtoB) 15
  16. 16. Social (Lois Brayfield) “60-65% of business leaders believe that consumers follow their brands on socialmedia sites because they want to be a part of a community. Content is repetitive and boring Only 25-30% of consumers agree.” - IBM Institute for Business Value 16
  17. 17. Social (Lois Brayfield) Customers do not always give “permission” to engage RESEARCH - Know what your customer cares about Edit tactics they don’t care about Don’t treat social efforts as a tactic; build a strategy Content is repetitive and boring Too many tweets; must edit Company posts too frequently 17
  18. 18. Social (Lois Brayfield) The Call-To-Action is critical to success Must be customer-focused, not brand-focused What can your brand do for them? ICEE – What is Informational, Compelling, Entertaining or Educational to your customer? Create a Customer-Focused engagement funnel that allows for a future “trigger” TIP: Use social platforms to “crowd-source” marketing questions Secondary call-to-action 18
  19. 19. Social (Carolyn Goodman) More than 75 millions Americans accessed a social networking site/blog via mobile in one month 3 in 5 mobile users pay attention to mobile ads while visiting social media sites (Prosper Mobile Insights 2012) 1 in 3 Facebook updates are through a mobile device 40% of tweets are from mobile Mobile and social = Simple is sexy: Clear call-to-action Limit options Don’t make target jump through hoops Deliver value 19