Business Link Northwest Demand-Pull MarketingContextually Relevant Marketing Activity and Stakeholder Engagement Is targeting a Science or an Art form? A presentation by Neil Geoghegan, Corporate Resources Director, Business Link Northwest Ged Mirfin, Chief Data Officer, Business Link Northwest
Truism No. 1: You Have to Know What You’re Talking About Before People Take You Seriously Experience- Intelligence influenced based Relevant Experience Aim: Move away from Anecdotal & Judgmental to Evidence-based Decision Making Opinion- Evidence- based influenced Relevant Evidence Experience + Evidence = Intelligence
Informing the Choice Architects……… ……. or Con Trick of the century?There is a level of Risk for Marketing Professionals:•Option 1: Listen to the Customer and Do Exactly What TheySays! – Risk being an also ran that adds little to the mix• Option 2: Pretend to Know More Than the Customer andRisk Him Finding You To Be A Fraud. – Add something to themix that is highly speculative.•Option 3: Tell The Customer Something He Doesn’t KnowThat He Should Know and Needs To Know To Be Successful.– Create a compelling need to move the proposition forward
Push-Marketing – Historical Problem Public Sector - delivery methods take precedence over customer demand. Concept of Market Failure. Build It and They Will Come! End-users lack understanding of Public Sector Service Offerings. Some Public Sector Brands carry Baggage Difference between Public Sector Brand Awareness and Understanding. The Business Link Brand has historically had poor customer intelligence. The absence of sufficient Quality Data meant: No holistic overview Marketing efforts were Supply-Push Generic Marketing Campaigns Nationally Driven Campaigns lacked Impact and affected Brand Awareness Operational Efficiency Suffered It is difficult “Pushing” a Proposition that Nobody Understands and is perceived to be of Poor quality!
Truism No. 1 – “Understanding Your Customers Improves Customer Engagement.” Your Customers Understand Your Customers Understand Promoting You You Customer EngagementThink Not What You Can Do For Your Customer But What Your Customer Can Do For You! – Brand Advocates
How Balanced is Your Customer Engagement?Customer engagement - Def.: Marketing practices that aim to create, stimulate or influence customer behaviour
Balanced Interaction – Cognitive Where Supplier and customer are both actively seeking to complete the transaction Supplier Customer•Will Work to •Will Work toSupply Source•Will Respond to •Will discussChange requests Requirements•Will develop •Will helpproduct The development•Will value Proposition •Will value Suppliercustomer & Brand
Dissonant Interaction –Supplier Advantage “Where the Supplier does very little to complete the transaction” Supplier Customer•Will Do Very •Will Go to GreatLittle Lengths to Source•Impose Change •Few Supply Options•Restrict Supply •Suppliers are Often•Charge a perceived as lazy &Premium inefficient•Brand The •Will Search hard forNarcissism Proposition alternatives Characteristic: Price Elastic Demand
Dissonant Interaction – Customer Apathy “Where the Customer has many supplier options” Supplier Customer •Will be “Lazy•Will Work Very Shoppers”Hard •Impulsive•Be Constantly Require InstantAware of the GratificationCompetition •Have very little•Focus on Brand LoyaltyCustomer The •Expect ProductSatisfaction Proposition Development•Invest in ProductDevelopment &Design Characteristic: inelastic Supply
Erratic Interaction – Disconnect“Where the Customer has many supplier options” Supplier Customer•Will have No •Will Not KnowClear Marketing Where to GoStrategy ? •Will Do Extensive•Will rely on ? Research •Will be DissatisfiedGeneric Demand - ?Push •Brand will be•Will Experience The Affected Proposition ? •ConfusedWaste•Further Devalue PropositioningBrand Equity ? ? •Erratic Buyer Pattern The Worst Part of the Disconnect is that people will fill the unknowns with assumptions
Erratic Interaction – Disconnect“How do we plug the gaps….without guessing?” Issue Focussed Brand Brand Identity Association Affinity Marketing Product with Expert Differentiation Brands Plug the gaps with Market facts, take away the Thought Leadership Reputation Campaigns via the uncertainty & Media Customer Market without Awareness & caveats Targeted Direct Marketing Activity Understanding Customer Viral Marketing Builds Advocacy Stakeholder Advocacy Customer
Contextual Relevance• Relevance and Engagement are delivered via Intelligent MarketingContent to suit what we know about end users.
Contextual Relevance Customer Need Contextually Relevant Marketing is highly Localised and Personal This style of marketing is not possible without Exceptional Levels of Customer Insight. Ultimately this is about understanding your audience & then delivering Messages that are Current and RelevantRecognise Needs Product Appeal
Demand-Pull Marketing – the Solution 1 • Historically public sector organisations have concentrated on service delivery rather than the end user. • DPM is ultimately about adapting to local demand • DPM involves identifying the latent demand for a product or service rather than delivering a generic marketing message
DPM Example – Latent Demand• Anne Example Ltd - Poultry Farmers• Problem: Erratic Payment Patterns from Primary Customer• Symptoms: Fluctuating Overdraft Levels – Breach of banking Covenant• How Do We Reach This Customer?• Generic Thematic Marketing from a Brand that is Poorly Understood?• Or, Specific DPM Activity highlighting Root Causes and Commonality!• Marketing Content: Sector-Wide Issues with Payment Problems. Best Practice Solutions within Industry Sector. Specific Solutions available from BLNW to Help Solve Problem.• Outcome: Proprietor Entered into Contract Negotiations with Buyer included Strengthened Contract Clauses re: Payment Terms. Joined Pressure Group to Ensure Business Segment Voices Heard.• Result: Improved Cash-Flow.
Demand-Pull Marketing – the Solution 2 • The marketing message is written in a way that “pulls” customers towards your proposition. • Pull marketing strategies target customers and create awareness, interest and the motivation to respond. • Pull marketing encourages consumer involvement. Viral distribution and supplier evangelism – this depends entirely on how good you are! • Pull Strategies generate strong positive opinions of the supplier and their proposition enhancing Brand Awareness and Understanding • It is essential to energise your chosen market. The Viral nature of this type of Marketing Activity can generate huge expectation levels. • “Demand-Pull” has three Key Benefits: 1. Low Cost Lead Generation. 2. Responsive, Relevant, Current and On-Message Marketing. 3. Customer Retention & Brand Evangelism.
Truism No. 2: Good Decisions Are Impossible To Make Without Intelligent Data
How Did We Acquire the Data to Engage with Our Customers
We integrated the Business Link universe andExperian’s National Business Database
We integrated the Business Link universe andExperian’s National Business Database Section of database unique to Business Link – Lifestyle and Consolidates North Grey economy West Business businesses Universe 19k 111k 406k
We integrated the Business Link universe and Experian’s National Business Database Consolidates North West Business Universe 19k 111k BLNW Prospect Universe 406kOf 150,000 Customer Interactions in the last 18 Months - 120,000 (80%) came from Experian Records Why?
Truism No. 3: If Segmentation and Context = Relevance then by definition Relevance = Engagement Customer Interaction occurred because wedelivered Contextual Relevance for the Businesses we contacted
Context: Delivering Support to Businesses in the Current Economic Climate• Problem 1: Identifying Struggling Businesses• Problem 2: Finding them early enough. There are No Second Chances in a Recession!• Problem 3: Economic Impact on Key Business Segments. How badly have they been and what is the likelihood of Commercial Failure? Can Business Support can make a difference?• Problem 4: Policy Makers don’t have context to Make or Measure the Impact of Policy• The Answer: Commercial Risk Data is available that offers up-to-the-minute, granular information on the Risk of Commercial Failure – Experian’s Commercial Risk Profiling System offers this service.• The Outcome: The ability to Trend this Data means we can flag companies that are in decline as well as those experiencing growth. We can also highlight which of these companies have received business support and are now experiencing recovery.
Commercial Delphi Risk Categories Risk Category Description Failed/serious Administrator or receiver appointed, bankrupt proprietor, dissolved business adverse info High value of unsatisfied CCJs, accounts overdue, start-up business with adverse data, Maximum risk proprietor with adverse data or maiden accounts show loss Large company with weak balance sheet, medium sized firm with very weak balance sheet, High risk combination of above average risk features, start-up with adverse trading Large company with very weak balance sheet, medium to small firms with (high levels of credit Above average search, payment difficulty, weak balance sheets), start-up firm without adverse information Large business with weaker balance sheet/modest loss, SMEs with steady trading, small firms Below average with directors with good record, no adverse data Well established, accounts filed, mid to large firms with £1m of assets and £5m of turnover, Low risk good record, directors with strong records Minimum risk Large well established firms, strong balance sheets, low value of public information
The Commercial Risk Profile of the North West Below Average Above Average Dissolved/Seri Very Low Risk Low Risk High Risk Maximum Risk Risk Risk ous Adverse InfoNorth West 7.76% 11.62% 23.37% 22.88% 11.31% 20.16% 2.91%Merseyside 7.50% 9.50% 20.03% 24.32% 12.11% 24.01% 2.53%Warrington & Cheshire 7.17% 10.62% 23.82% 20.80% 15.32% 20.79% 1.48% Cumbria 11.67% 16.65% 29.24% 24.19% 6.80% 10.28% 1.18%Lancashire 8.45% 14.20% 27.70% 24.77% 8.31% 14.24% 2.34%Manchester 7.07% 10.74% 21.31% 21.94% 11.57% 23.06% 4.31% This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.
Further Segmentation Increases RelevanceNorth West Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 7.76% 11.62% 23.37% 22.88% 11.31% 20.16% 2.91%Merseyside Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 7.50% 9.50% 20.03% 24.32% 12.11% 24.01% 2.53%Sefton Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 11.4% 11.0% 18.6% 8.9% 13.7% 27.0% 1.0% This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
Analysis of the Sefton Segment increases relevancefurtherSefton Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75% This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
Analysis of the Sefton Segment increases relevancefurtherSefton Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%Sefton – Maximum Risk Businesses Number of Risk Micro Band Percentage Companies 1 1,147 40.6% 2 329 11.6% 3 399 14.1% 4 576 20.4% 5 375 13.3% This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
Analysis of the Sefton Segment increases relevancefurtherSefton Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%Sefton – Maximum Risk Businesses Number of Risk Micro Band Percentage Companies 1 1,147 40.6% 2 329 11.6% Drill into the highest of the high risk 3 399 14.1% Businesses in Sefton 4 576 20.4% 5 375 13.3% This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.
The granular view of Sefton allows us to put forwardMarketing messages which have real resonanceSefton Dissolved / Serious Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Adverse Information 7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%Sefton – Maximum Risk Businesses Number of Risk Micro Band Percentage Companies 1 1,147 40.6% 2 329 11.6% 3 399 14.1% 4 576 20.4% 5 375 13.3% This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.
So What Did We Do Next?• So we decided to Contact all the Finance and Professional Companies• Highlighted the 3 Current Issues in the Financial Markets that were causing concern: • Liquidity • Trade Credit Insurance • Payment Terms from Primes• What did we offer: Specific Advice, Access to Finance, Cash Flow Management, Business Performance Benchmarking, Loan Guarantee Scheme• Key Point: These Products already existed. The Delivery of the Message unlocked latent demand
Plugging the gaps 1 Direct MarketingNeed: To Achieve High Levels of Solution: Maximising the Take-Up Awareness and Developed of Product & Increasing Service Understanding Consumption through Optimising Lead Generation and Improved Customer Targeting Plug the gaps without guessing Targeted Direct Marketing Customer Awareness & Activity Understanding Customer
Crunch Time For Bolton Businesses• Jointly branded campaign with Business Bolton• Key Messaging delivered to businesses within the Bolton area, about the kind of help and support available to them during the economic downturn.• Campaign delivered via a combination of Direct Mail and eComms Channels
Plugging the gaps 2 Brand Building & EnhancementNeed: To Associate BLNW Solution: Evolving a Strong Local Brand Locally Accessible Brand Identity focussed on Service Offering which is Issues and Themes specific to Focussed on Local Need North West Businesses Supplier Brand Aware Focussed Brand Identity Plug the gaps without guessing Customer
The BLNW Brand: Guiding You On Your Journey• Email Marketing Campaign designed to drive Traffic to New BLNW Web-Site and Knowledge Portals• Tailored Advice on Cash- flow Management and Late Payment.• Campaign delivered via Highly Targeted Email Broadcast and Inserts in Subscription-Based Electronic News Letter. Key element of “the Journey” Marketing Campaign
Plugging the gaps 3 Events MarketingNeed: To Differentiate Product Solution: Expert CoachingOffering from Other Players in through Educational Seminars at the Marketplace Co-Branded Events. Delivered by Acknowledged Specialists from Supplier Market Leading Blue Chips Associating Service Offering with Plug the gaps without Other High Visibility Premium Affinity with Market Leading Product Differentiation guessing Brands Brands Customer
Survive and ThriveObjective to engage with SMEcommunity demonstrating that BLNWis in a good position to supportbusiness through the ‘credit crunch ”.Series of 11 events in Sub Regions toinspire and motivate Businesses totake action and encourage them toposition themselves to survive &improve!Held in partnership with Key RegionalBusiness Support StakeholderOrganisations.Aim to strongly affirm KeyDifferentiator of BLNW Quality ServiceOffering by associating BLNW Brandwith recognised and respectedBusiness Support Agencies.
Plugging the gaps 4 PR & CommunicationsNeed: to Enhance BLNW Market Solution: Thought Leadership Reputation Campaigns Delivered through PR & Communication Supplier Plug the gaps without guessing Thought Leadership Market Reputation Campaigns Customer
United We StandObjective to Underpin BLNW’spositioning as leader in BusinessIntelligence across the regionDemonstrate the expertise of BLNWProvide unique insights into theeconomic health of the regionBLNW and Lancashire Telegraphcampaign offers editorial, events,workshops and podcasts/webchats
Graphic provided Courtesy of Lancashire Telegraph – part of the Newsquest Media Group
Lancashire Telegraph launches campaign to support businesses • “TODAY the Lancashire Telegraph launches a major campaign to help businesses fight back against the recession” – BRAND ASSOCIATION • “New figures reveal that almost 4,000 East Lancashire businesses are staring into the financial abyss at a time of unprecedented economic hardship”. – TRUSTING OUR MESSAGE • “The campaign comes as figures from Business Link Northwest show that 14per cent of East Lancashire companies – 3,977 – are at maximum risk of failure”. – POSITIONING OURSELVES AS THE AUTHORITY ON THE SUBJECT • With more than 28,000 firms across East Lancashire, The Lancashire Telegraph and Business Link Northwest are looking to give them the help they need to ride out the recession. – THE HOOK • “Business Link research shows that…….” BRAND ASSOCIATION AND AWARENESS Blackburn with Darwen has the highest number of businesses at maximum risk – 15 per cent (1,198) of its 7,950 businesses. - GRANULAR DATA CONTEXT AND ENGAGEMENT • “The figures have been compiled by global credit management company Experian and have been built into an innovative Business Performance Index developed by the Business Link data analysis team” – BRAND ASSOCIATION.
Feedback – BrandAwareness? “It’s a great idea. We all have a responsibility to the community at a time of recession and newspapers have a great responsibility, which you are showing, to try and help businesses get all the help they need.” David Cameron, Tory Leader
Feedback – BrandAwareness? “Small and medium size businesses are important because of the number of people they employ. The Lancashire Telegraph’s campaign is immensely important too because unless people work together at a local and national level to do the best for East Lancashire businesses, we will not get through this recession.” Nick Clegg, Liberal Democrat Leader
Feedback – BrandAwareness? “The Lancashire Telegraph campaign is vitally important. It remains a truth that too many business people freeze when faced with difficulties and getting them to ask for help early is a must.” Jack Straw, Blackburn MP
Plugging the gaps 5 Viral Marketing, Advocacy & Reference ManagementNeed: Build Customer Advocacy Solution: Building Stakeholder Advocacy Networks through Viral Marketing Supplier Plug the gaps without guessing Viral Marketing builds Customer Advocacy stakeholder advocacy Customer
Selling the Vision• Searching for Evangelists• Delighting Stakeholders and Customers with Insight• Become the Primary Source of Business Intelligence in the Region• One Version of the Truth and One Author of Widely Circulated Data Assets• Use of Self Replicating Viral Marketing via Effective Working Groups and Representation at Critical Policy Forums• Nudge the Change Architects (Thaler & Sunnstein) and Be Confident in the expansive capabilities of B2B Mood ContagionFulfillment of Key BLNW Strategic Data Objectives:1. BLNW Recognized as the leader on regional business intelligence andplaying a vital role in informing business support policy making2. Enhancement both Reputation and Policy Influencing Role of BLNW withinBusiness Support Community
The Advocacy ModelBuild Data Coalition: Communicate the Benefits Internally Value Chain for the North West Business Data Universe Creation of Database – customers – internally focussed BL Management and internal data First Phase - Create consumers
Viral Marketing Advocacy & Reference Management Data becomes more relevant for decision making bodiesInternal Sector specialists and cluster management teams First interaction Second Phase – Sell with third party data consumers Benefits and political oganisations
Viral Marketing Advocacy & Reference Management Data becomes more relevant for decision making bodiesInternal Sector Geographically dispersed bodies require data to confirm Business support activities or to quantify the impact of future plans and policies Third Phase – Build Dependency
Viral Marketing Advocacy & Reference Management Data becomes more relevant for decision making bodiesInternal Sector Geography Local hierarchy of business support functions demand input to decision making and assessment of economic impact. Fourth Phase – Widen User Base
Viral Marketing Advocacy & Reference Management Data becomes more relevant for decision making bodiesInternal Sector Geography Local Demand for joined up information sources and “one version of the truth” among all business support organisations. Tie together regional strategy and delivery with a system of quantifiable evidence based results Fifth Phase – Consolidate Business Intelligence
Viral Marketing Advocacy & Reference Management Data becomes more relevant for decision making bodiesInternal Sector Geography Local Regional Regional Data can be used to challenge and improve National directives. Involve regionalSixth Phase – Influence factual data inNational Agenda National extrapolation.
If In the Land of the Blind A One Eyed Man Could Be King What Would Become Of A Man Who Was Perfectly Sighted, Had Binoculars, A Network Of Spies and Extensive CCTV Coverage Demand Pull Re-package Out-dated Data Driven Marketing to OutModed Products as Better Fit Product and New Pull Demand Relevant Experience Product Push Aim: Move away from Anecdotal &Judgmental to Evidence-based Decision Making Mis-Sell Inappropriate Cover-Up Products Failure Relevant Evidence Experience + Evidence = Intelligence