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A U G U S T 2 3, 2 0 1 2




                           Consumer Digital
                           Touchpoints—Email
                           and Beyond



                                          Sponsored by:

 David Hallerman
 Principal Analyst
                                              ©2011 eMarketer Inc.
There are four prime consumer digital
  touchpoints

    Marketing emails: contact
    Brand websites: content
    Social media: community
    Mobile devices: connections




Twitter – #eMwebinar
                                          ©2012 eMarketer Inc.
The primary
question:
What makes
a marketing
channel a
touchpoint?




              ©2012 eMarketer Inc.
Touchpoints attract—they are pull
marketing (ads are push marketing)




                                     ©2012 eMarketer Inc.
Creating customer loyalty is an ongoing
process, not an event
What we’ll look at today…


    Loyalty matters: retention
    Permission matters: consent
    Mutuality matters: two-way street
    Money matters: and other values




Twitter – #eMwebinar
                                         ©2012 eMarketer Inc.
Email’s Example
(elements that translate to all
touchpoints)




                           ©2012 eMarketer Inc.
Email offers lessons that marketers can
use to make other touchpoints effective

 Permission is prime.
 Reciprocal value is the engine for permission.
 Personalization is a channel for relevance.
 Frequency control is a type of respect.




                                            ©2012 eMarketer Inc.
Consumers
trust opt-in
email and
brand
websites
more than
any type of
digital ad




               ©2012 eMarketer Inc.
Four Touchpoint
Channels
(integrating connections)




                            ©2012 eMarketer Inc.
Execs greatly value touchpoints for
building customer loyalty and retention




                                      ©2012 eMarketer Inc.
Gail Goodman, CEO, Constant Contact




                         “Multichannel actually
                         works better than single
                        channel. So while having
                       someone engaging with you
                        on Facebook is great, the
                        best way to kick off that
                        engagement is to send an
                       email that pulls them back to
                                Facebook.”



Twitter – #eMwebinar
                                                       ©2012 eMarketer Inc.
Mor e touchpoints, mor e usage, as
mar keter s look to br eak thr ough clutter




                                              ©2012 eMarketer Inc.
Social
touchpoints
work best
when
integrated
with other
touchpoints,
such as
email or
company
websites


               ©2012 eMarketer Inc.
Gary Wohlfeill, Creative Director,
Moosejaw


                “Down the line, we’d love to
                    be able to better use
                 everybody’s profile. When
                we want to award somebody
                  points on Facebook right
                now, we have to get them to
                 email us so we can pull up
                  their account and award
                           them.”



                                               ©2012 eMarketer Inc.
Mobile touchpoints link up with email and
social for mobile-onl y user s




                                       ©2012 eMarketer Inc.
Apps are a
prime mobile
touchpoint
that
influence
consumer
brand
choices




               ©2012 eMarketer Inc.
Yon Feldman, Vice President, Gilt
  Groupe


                           “Our most engaged
                         customers are actually
                        people who use both app
                       and desktop.…Those who
                           have used both are
                       extremely more loyal and
                       engaged than either of the
                           two other groups.”


Twitter – #eMwebinar
                                                    ©2012 eMarketer Inc.
Loyalty Matters
(less costly, more value)




                            ©2012 eMarketer Inc.
Customer
retention
(aka loyalty)
is a top
priority for
marketing
executives




                ©2012 eMarketer Inc.
Loyal customers offer companies
  several varieties of value

   Current customers are often the best
   customers.
   Costs less to keep old customers than to find new
   ones
   More likely to sell more often to them
   More likely to upsell them, too
   The most-loyal customers tell others about your
   offerings
   Loyal customers reveal more about themselves


Twitter – #eMwebinar
                                                      ©2012 eMarketer Inc.
Customers
behavior is
much like
two classic
dog names:
Fido and
Rover.
But will they
remain loyal?




                ©2012 eMarketer Inc.
Marketers
spend more
on customer
acquistion,
partially
because
retention
costs less




              ©2012 eMarketer Inc.
Word-of-mouth is the most valuable form
of marketing companies can’t buy




                                     ©2012 eMarketer Inc.
Loyal customers become brand
ambassadors—and spend more too




                                 ©2012 eMarketer Inc.
Positive
experiences
extend
social
consumer
touchpoints,
but negative
experiences
a bit more so


                 Negative:
                67% & 59%
                             ©2012 eMarketer Inc.
Dave Godwin, Managing Partner,
  Restaurant Management Group



                        “Eight out of every 10
                       referrals to our business
                        are through word-of-
                          mouth. That’s the
                        reason why Facebook
                          and businesses go
                          together so well.”


Twitter – #eMwebinar
                                                   ©2012 eMarketer Inc.
Email is the
word-of-
mouth tool
that brand
advocates
use the most
to endorse
products or
services




               ©2012 eMarketer Inc.
Permission Matters
(it’s all about control)




                           ©2012 eMarketer Inc.
Opt-in agreement is the fir st step that
can lead to more engaged touchpoints
Email is the
permission-
based
marketing
channel that
most
consumers
prefer




               ©2012 eMarketer Inc.
Mike Hogan, Chief Marketing Officer,
GameStop



                  “One of the reasons
                  why we’re moving
                with deliberate speed
                 is we want to do this
                in a high-permission
                    environment.”

                                         ©2012 eMarketer Inc.
Consumers who can give or withhold
permission are better customers




                                     ©2012 eMarketer Inc.
Mutuality Matters
(two-way communication)




                          ©2012 eMarketer Inc.
Effective digital touchpoints need to
  be two-way streets to create loyalty

   Customer loyalty is about more than
   making a sale.
   Time. Loyalty develops over time.
   Attract. Loyalty touchpoints require marketers to cultivate
   customers with pull, not push, tactics.
   Slower. Many touchpoint efforts cannot be automated.
   Staff. Touchpoints often require real humans on the other side of
   the screen, notably for customer service.
   Costs. The extra costs involved for such efforts cause some
   companies to hesitate.
   Touch. But companies that humanize the digital space will often
   gain an advantage over their competition.

Twitter – #eMwebinar
                                                                  ©2012 eMarketer Inc.
Tracy Keim, Vice President, Bonobos




                 “It’s important for a
               company and for brands
                  to understand that
                [loyalty] is not a one-
                way push strategy. It’s
                    also a listening
                       strategy.”


                                          ©2012 eMarketer Inc.
Email, social and company websites are
all prime two-way loyalty channels




                                    ©2012 eMarketer Inc.
Email is excellent for the two-way street
that defines a real touchpoint




                                      ©2012 eMarketer Inc.
Customer
service is a
major
element that
can reach
across all
digital
touchpoints
It’s a relationship: Customer
ser vice drives brand loyalty




                                ©2012 eMarketer Inc.
Loyalty and
improved
customer
service are
linked—and
are two top
objectives of
social brand
strategies




                ©2012 eMarketer Inc.
Consumers
also say that
customer
service is
important on
social sites




                ©2012 eMarketer Inc.
Jim Wright, Senior Vice President,
  Express


                        “You have to listen and
                        respond to disappointed
                       customers. Even if it’s not
                         always the answer they
                           want to hear, they
                         appreciate the fact that
                         you took the time to at
                             least respond.”


Twitter – #eMwebinar
                                                     ©2012 eMarketer Inc.
Even angry
customers
might remain
loyal
customers if
companies
communicate
clearly and
offer fair
solutions
Money Matters
(more so, value matters)




                           ©2012 eMarketer Inc.
How the loyalty process often works…




                                       ©2012 eMarketer Inc.
Brands stand out w hen their touchpoints
of fer value to those w ho opt in…
Effective
touchpoints
demand
data, and
consumers
want
something
back for
their data




              ©2012 eMarketer Inc.
Personal data
helps build
strong
relationships,
often through
touchpoints




                 ©2012 eMarketer Inc.
Sometimes
value is
simply
money in the
form of
deals,
discounts,
promotions
and free stuff
Brands
attract
consumers
by giving
them
something in
return,
typically a
promotion or
prizes



               ©2012 eMarketer Inc.
If a user’s
“like” leads
to a brand
touchpoint,
then special
deals and
inside info
help make
consumers
lean toward
a “like”


               ©2012 eMarketer Inc.
Nearly one-half of Twitter users want
deals from brands they follow




                                        ©2012 eMarketer Inc.
Value is subjective, and good touchpoints
offer a range of possible values
The main
reason
Facebook
users “like”
brands is
because
they are
already
loyal, but
what do the
brands offer
in return?

               ©2012 eMarketer Inc.
Bob Soukup, Senior Director for Loyalty,
Best Buy


                   “Loyalty is about
                financial rewards where
                you earn points and use
                 points, and that’s great
                  and valuable, but we
                    want to capture
                 customers’ hearts and
                         minds.”


                                            ©2012 eMarketer Inc.
Money is one type of value. Content
  is another. That mix can include:
        Case studies
        Webinars and webcasts
        Videos
        Games
        White papers
        Research reports
        Articles
        Peer-created content
        Podcasts
        Mobile apps
Twitter – #eMwebinar
                                        ©2012 eMarketer Inc.
Brand websites are among the most
trusted—great for valued content




                                    ©2012 eMarketer Inc.
Companies
often use
branded
content to
increase
customer
retention
and brand
loyalty




             ©2012 eMarketer Inc.
Anthony Batt, President, Katalyst




                 “If we’re entertaining
                   you, we’re sort of
                    bypassing your
                immediate rejection of
                  an advertisement.”



                                          ©2012 eMarketer Inc.
Marketers
look to
spend more
on content
in 2012




             ©2012 eMarketer Inc.
Chief Takeaways




                  ©2012 eMarketer Inc.
The top
reason users
don’t “like” a
company on
Facebook
points to
how
marketers
can create
better digital
touchpoints



                 ©2012 eMarketer Inc.
Look at the reasons why people
  don’t become brand fans, and then…

  Do the opposite. That is…
  Frequency: don’t bombard them with marketing
  messages
  Reticence: don’t ask for too much personal information
  Trust: do indicate how their privacy will be honored
  Humility: don’t assume that just because one person
  likes your brand, his or her friends will, too
  Communicate: do make the benefit of becoming a fan
  clear and immediate


Twitter – #eMwebinar
                                                          ©2012 eMarketer Inc.
Justin Yoshimura, CEO and Co-founder,
500Friends


                  “The future of social
               loyalty is when marketers
                stop measuring success
                by the number of ‘likes’
                or followers, and start to
                   see this as a way to
                  increase the value of
                 existing relationships.”



                                             ©2012 eMarketer Inc.
Conclusions: Engagement is basic to
making marketing into a touchpoint

The four digital channels best for developing
customer loyalty share several elements: cash,
content, communication, care, and control.
Email. Works well for money matters and evergreen info.
Brand websites. Product details and support are the
main reasons most customers go to company sites.
Social media. Involving customers through content,
entertainment, contests or service is often key.
Mobile. Can meld the three other digital touchpoints, and
adds location-based connections and immediacy.
                                                      © 2012 eMarketer Inc.
© 2012 Lyris
The Growth of Digital Activity…

          >1B active users on Twitter           >1B people search Google everyday
                                                    people search Google everyday
              active users on Twitter
          and Facebook
          and Facebook




 200M tweets on Twitter per day
      tweets on Twitter per day           1M social check-ins per day on Foursquare
                                             social check-ins per day on Foursquare




   60M status posts on Facebook per day
       status posts on Facebook per day
                                               107trillion emails sent in 2011
                                                           emails sent in 2011




             …Has Generated 98% of all Data within the Past 2 years
  © 2012 Lyris
Customer experience story
   Kayak?




© 2012 Lyris       | 69 |
© 2012 Lyris
© 2012 Lyris
Q&A Session                 Learn more about digital advertising with
                              an eMarketer corporate subscription
 Consumer Digital
Touchpoints—Email            Over 120 reports are published each year.
   and Beyond                Following are a few recent ones you may
                             be interested in:

                              The Lessons of Email: Using Digital Touchpoints
                               for Customer Loyalty
                              Social Loyalty: From Rewards to a Rewarding
                               Customer Experience
                              Email Marketing Benchmarks: Key Data, Trends
David Hallerman                and Metrics
                              Adapting to a Showrooming World: How
You will receive an email      Retailers Are Earning Customer Loyalty
 tomorrow with a link to
   view the deck and          The Changing Digital Landscape: Key Trends
   webinar recording.          Marketers Need to Know

      Sponsored by:           To learn more: www.emarketer.com/products
         Lyris                  800-405-0844 or webinars@emarketer.com

                                                                        ©2012 eMarketer Inc.

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eMarketer Webinar: Consumer Digital Touchpoints—Email and Beyond

  • 1. A U G U S T 2 3, 2 0 1 2 Consumer Digital Touchpoints—Email and Beyond Sponsored by: David Hallerman Principal Analyst ©2011 eMarketer Inc.
  • 2. There are four prime consumer digital touchpoints  Marketing emails: contact  Brand websites: content  Social media: community  Mobile devices: connections Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 3. The primary question: What makes a marketing channel a touchpoint? ©2012 eMarketer Inc.
  • 4. Touchpoints attract—they are pull marketing (ads are push marketing) ©2012 eMarketer Inc.
  • 5. Creating customer loyalty is an ongoing process, not an event
  • 6. What we’ll look at today…  Loyalty matters: retention  Permission matters: consent  Mutuality matters: two-way street  Money matters: and other values Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 7. Email’s Example (elements that translate to all touchpoints) ©2012 eMarketer Inc.
  • 8. Email offers lessons that marketers can use to make other touchpoints effective  Permission is prime.  Reciprocal value is the engine for permission.  Personalization is a channel for relevance.  Frequency control is a type of respect. ©2012 eMarketer Inc.
  • 9. Consumers trust opt-in email and brand websites more than any type of digital ad ©2012 eMarketer Inc.
  • 11. Execs greatly value touchpoints for building customer loyalty and retention ©2012 eMarketer Inc.
  • 12. Gail Goodman, CEO, Constant Contact “Multichannel actually works better than single channel. So while having someone engaging with you on Facebook is great, the best way to kick off that engagement is to send an email that pulls them back to Facebook.” Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 13. Mor e touchpoints, mor e usage, as mar keter s look to br eak thr ough clutter ©2012 eMarketer Inc.
  • 14. Social touchpoints work best when integrated with other touchpoints, such as email or company websites ©2012 eMarketer Inc.
  • 15. Gary Wohlfeill, Creative Director, Moosejaw “Down the line, we’d love to be able to better use everybody’s profile. When we want to award somebody points on Facebook right now, we have to get them to email us so we can pull up their account and award them.” ©2012 eMarketer Inc.
  • 16. Mobile touchpoints link up with email and social for mobile-onl y user s ©2012 eMarketer Inc.
  • 17. Apps are a prime mobile touchpoint that influence consumer brand choices ©2012 eMarketer Inc.
  • 18. Yon Feldman, Vice President, Gilt Groupe “Our most engaged customers are actually people who use both app and desktop.…Those who have used both are extremely more loyal and engaged than either of the two other groups.” Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 19. Loyalty Matters (less costly, more value) ©2012 eMarketer Inc.
  • 20. Customer retention (aka loyalty) is a top priority for marketing executives ©2012 eMarketer Inc.
  • 21. Loyal customers offer companies several varieties of value Current customers are often the best customers. Costs less to keep old customers than to find new ones More likely to sell more often to them More likely to upsell them, too The most-loyal customers tell others about your offerings Loyal customers reveal more about themselves Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 22. Customers behavior is much like two classic dog names: Fido and Rover. But will they remain loyal? ©2012 eMarketer Inc.
  • 24. Word-of-mouth is the most valuable form of marketing companies can’t buy ©2012 eMarketer Inc.
  • 25. Loyal customers become brand ambassadors—and spend more too ©2012 eMarketer Inc.
  • 27. Dave Godwin, Managing Partner, Restaurant Management Group “Eight out of every 10 referrals to our business are through word-of- mouth. That’s the reason why Facebook and businesses go together so well.” Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 28. Email is the word-of- mouth tool that brand advocates use the most to endorse products or services ©2012 eMarketer Inc.
  • 29. Permission Matters (it’s all about control) ©2012 eMarketer Inc.
  • 30. Opt-in agreement is the fir st step that can lead to more engaged touchpoints
  • 31. Email is the permission- based marketing channel that most consumers prefer ©2012 eMarketer Inc.
  • 32. Mike Hogan, Chief Marketing Officer, GameStop “One of the reasons why we’re moving with deliberate speed is we want to do this in a high-permission environment.” ©2012 eMarketer Inc.
  • 33. Consumers who can give or withhold permission are better customers ©2012 eMarketer Inc.
  • 35. Effective digital touchpoints need to be two-way streets to create loyalty Customer loyalty is about more than making a sale. Time. Loyalty develops over time. Attract. Loyalty touchpoints require marketers to cultivate customers with pull, not push, tactics. Slower. Many touchpoint efforts cannot be automated. Staff. Touchpoints often require real humans on the other side of the screen, notably for customer service. Costs. The extra costs involved for such efforts cause some companies to hesitate. Touch. But companies that humanize the digital space will often gain an advantage over their competition. Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 36. Tracy Keim, Vice President, Bonobos “It’s important for a company and for brands to understand that [loyalty] is not a one- way push strategy. It’s also a listening strategy.” ©2012 eMarketer Inc.
  • 37. Email, social and company websites are all prime two-way loyalty channels ©2012 eMarketer Inc.
  • 38. Email is excellent for the two-way street that defines a real touchpoint ©2012 eMarketer Inc.
  • 39. Customer service is a major element that can reach across all digital touchpoints
  • 40. It’s a relationship: Customer ser vice drives brand loyalty ©2012 eMarketer Inc.
  • 41. Loyalty and improved customer service are linked—and are two top objectives of social brand strategies ©2012 eMarketer Inc.
  • 42. Consumers also say that customer service is important on social sites ©2012 eMarketer Inc.
  • 43. Jim Wright, Senior Vice President, Express “You have to listen and respond to disappointed customers. Even if it’s not always the answer they want to hear, they appreciate the fact that you took the time to at least respond.” Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 44. Even angry customers might remain loyal customers if companies communicate clearly and offer fair solutions
  • 45. Money Matters (more so, value matters) ©2012 eMarketer Inc.
  • 46. How the loyalty process often works… ©2012 eMarketer Inc.
  • 47. Brands stand out w hen their touchpoints of fer value to those w ho opt in…
  • 49. Personal data helps build strong relationships, often through touchpoints ©2012 eMarketer Inc.
  • 50. Sometimes value is simply money in the form of deals, discounts, promotions and free stuff
  • 51. Brands attract consumers by giving them something in return, typically a promotion or prizes ©2012 eMarketer Inc.
  • 52. If a user’s “like” leads to a brand touchpoint, then special deals and inside info help make consumers lean toward a “like” ©2012 eMarketer Inc.
  • 53. Nearly one-half of Twitter users want deals from brands they follow ©2012 eMarketer Inc.
  • 54. Value is subjective, and good touchpoints offer a range of possible values
  • 55. The main reason Facebook users “like” brands is because they are already loyal, but what do the brands offer in return? ©2012 eMarketer Inc.
  • 56. Bob Soukup, Senior Director for Loyalty, Best Buy “Loyalty is about financial rewards where you earn points and use points, and that’s great and valuable, but we want to capture customers’ hearts and minds.” ©2012 eMarketer Inc.
  • 57. Money is one type of value. Content is another. That mix can include:  Case studies  Webinars and webcasts  Videos  Games  White papers  Research reports  Articles  Peer-created content  Podcasts  Mobile apps Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 58. Brand websites are among the most trusted—great for valued content ©2012 eMarketer Inc.
  • 60. Anthony Batt, President, Katalyst “If we’re entertaining you, we’re sort of bypassing your immediate rejection of an advertisement.” ©2012 eMarketer Inc.
  • 61. Marketers look to spend more on content in 2012 ©2012 eMarketer Inc.
  • 62. Chief Takeaways ©2012 eMarketer Inc.
  • 63. The top reason users don’t “like” a company on Facebook points to how marketers can create better digital touchpoints ©2012 eMarketer Inc.
  • 64. Look at the reasons why people don’t become brand fans, and then… Do the opposite. That is… Frequency: don’t bombard them with marketing messages Reticence: don’t ask for too much personal information Trust: do indicate how their privacy will be honored Humility: don’t assume that just because one person likes your brand, his or her friends will, too Communicate: do make the benefit of becoming a fan clear and immediate Twitter – #eMwebinar ©2012 eMarketer Inc.
  • 65. Justin Yoshimura, CEO and Co-founder, 500Friends “The future of social loyalty is when marketers stop measuring success by the number of ‘likes’ or followers, and start to see this as a way to increase the value of existing relationships.” ©2012 eMarketer Inc.
  • 66. Conclusions: Engagement is basic to making marketing into a touchpoint The four digital channels best for developing customer loyalty share several elements: cash, content, communication, care, and control. Email. Works well for money matters and evergreen info. Brand websites. Product details and support are the main reasons most customers go to company sites. Social media. Involving customers through content, entertainment, contests or service is often key. Mobile. Can meld the three other digital touchpoints, and adds location-based connections and immediacy. © 2012 eMarketer Inc.
  • 68. The Growth of Digital Activity… >1B active users on Twitter >1B people search Google everyday people search Google everyday active users on Twitter and Facebook and Facebook 200M tweets on Twitter per day tweets on Twitter per day 1M social check-ins per day on Foursquare social check-ins per day on Foursquare 60M status posts on Facebook per day status posts on Facebook per day 107trillion emails sent in 2011 emails sent in 2011 …Has Generated 98% of all Data within the Past 2 years © 2012 Lyris
  • 69. Customer experience story  Kayak? © 2012 Lyris | 69 |
  • 72. Q&A Session Learn more about digital advertising with an eMarketer corporate subscription Consumer Digital Touchpoints—Email Over 120 reports are published each year. and Beyond Following are a few recent ones you may be interested in:  The Lessons of Email: Using Digital Touchpoints for Customer Loyalty  Social Loyalty: From Rewards to a Rewarding Customer Experience  Email Marketing Benchmarks: Key Data, Trends David Hallerman and Metrics  Adapting to a Showrooming World: How You will receive an email Retailers Are Earning Customer Loyalty tomorrow with a link to view the deck and  The Changing Digital Landscape: Key Trends webinar recording. Marketers Need to Know Sponsored by: To learn more: www.emarketer.com/products Lyris 800-405-0844 or webinars@emarketer.com ©2012 eMarketer Inc.