Stop Marketing Blind : How Behavioral Marketing Will Change Your World

John Watton
John WattonDirector, Digital Marketing EMEA at Adobe
Stop
marketing blind.
How Behavioral Marketing
will change your world and
make you a lot more like Bob.
Marketing practice
is ten years behind
marketing vision.
Let’s face it….
Here’s a little story
that shows what
I mean.
This is me,
A fortysomething
Marketing Manager.
I live in West London
I like my wine*.
* In a kind of a cool,
metrosexual way not
in a ‘problem’ way…*
(* I hope)
This is Bob,
He owns Bob’s Wines,
my local wine shop.
Here’s the thing
about me and Bob…
1
I spend 5x more
at Bob’s than I do
in my supermarket
(which is famous
for its wine
department).
Bob Waitrose
1 2
I spend 5x more
at Bob’s than I do
in my supermarket
(which is famous
for its wine
department).
Every time I go in,
I tend to spend 30-
200% more than
I planned.
Here’s the thing
about me and Bob…
Bob Waitrose
Bob Waitrose
1 2
I spend 5x more
at Bob’s than I do
in my supermarket
(which is famous
for its wine
department).
Every time I go in,
I tend to spend 30-
200% more than
I planned.
3
And I love it.
Here’s the thing
about me and Bob…
Bob Waitrose
Bob Waitrose
Bob Waitrose
Why?
Because Bob
knows everything
about me.
Because Bob
knows everything
about me.
I eat a lot of meat.
I hate oaky Chardonnay
My five favorite Spanish reds
I secretly covet a certain Super-Tuscan
I love Rioja
My birthday is coming up
I tend to spend £15 per bottle
My wife loved that Rosé from last week
I love cooking Spanish food
Pinot Noir bores me witless
Marketing needs to
get more like Bob.
P R O F I T
S I M I L A R I T Y TO B O B
Every step closer to Bob-
ness increases every
metric that matters.
Traffic, conversion rates,
email opens, click-
throughs, loyalty, repeat
purchase, lifetime value…
The more Bob-like
your marketing gets
the more you will sell.
But today,
marketing is painfully
un-Bobular.
If Bob were a typical marketer
instead of the world’s best
wine salesman…
He wouldn’t say,
“Hey John, how’d you get
on with that Riesling?”
He’d say,
“Hello potential customer.
This is a wine shop.
White or red?”
The good news:
we’re on the way
B R OA D C A S T TA R G E T I N G S E G M E N T I N G P E R S O N A L I S I N G
The good news:
we’re on the way
B R OA D C A S T TA R G E T I N G S E G M E N T I N G P E R S O N A L I S I N G
We’re all marketing in a far
more sophisticated way than
just a few years ago…
Most of us are segmenting
our audiences. That’s good.
College
Educated
With Kids
College
Educated
With Kids
College
Educated
With Kids
Female
Homeowner
Male
30-40
Male
30-40
Male
30-40
Female
Homeowner
Female
Homeowner
But mostly, we’re
segmenting into
big buckets.
We need to make these
segments smaller
and smallerand smaller and smaller and smaller and smaller.
The goal:
segments of
1
Then you’re really talking
to each person as an individual.
And using the things you know
about that individual to have
a MUCH more intelligent, relevant
interaction.
Like Bob
would.
That’s made
possible by
Behavioral Marketing.
And it’s the most exciting
leap in marketing
since email…
Behavioral Marketing just means:
using what
you know about
customers to better
meet their needs.
Today, marketers tend to target
messages using two things:
How do you
like your Email?
Text
HTML
1 2
Profile Preference
But there’s a much,
much bigger win:
targeting by behavior.
Your customers are telling
you all about themselves
and their needs and their
interests every time they
interact with you.
And the insight you can
derive from this data is
by far the best guide for
personalizing the customer
experience.
If you do that, your messages
have a shot at getting heard
above all the…
Noise
We’re all exposed to about
30,000 messages a day.
Insight = Gold
In short:
Apply rulesYou apply
rules
Capture
behavior
from any
channel
Combine
with existing
knowledge
from profiles,
preferences
and past
actions
across all
channels
Generate the
best, most
personalised
interaction
And most
relevant track
across all
channels
Measure
and store
learning to
inform rules
It’s a really simple idea
You
capture
action
You generate
the best,
interaction
Apply rulesCapture
behavior
from any
channel
Combine
with existing
knowledge
from profiles,
preferences
and past
actions
across all
channels
Generate the
best, most
personalised
interaction
And most
relevant track
across all
channels
Measure
and store
learning to
inform rules
And you can refine that
really simple idea:
Capture
behavior
Combine
with existing
knowledge
Generate the
best, most
personalised
interaction
Measure
And then turbo-charge it.
Capture
behavior
from any
channel
Combine
with existing
knowledge
from profiles,
preferences
and past
actions
across all
channels
Apply rules Generate the
best, most
personalised
interaction
And most
relevant track
across all
channels
Measure
and store
learning to
inform rules
?
That’s what
Bob does.
The problem:
•	Bob has a few hundred customers.
You might have a few million.
•	So how do you apply Bob-style
Behavioral Marketing in your world?
You’ve got to answer
five big questions:
1 2 3 4 5
Which
behaviors
matter
most?
How do
you capture
and learn
from them?
How do
you turn
this insight
into action?
How do
you do it
at scale?
How do you
do it across
all channels?
Which
behaviors
matter most?
1
Only you can decide what’s best,
but pick from this kind of data:
Demographics Email behavior Relational data Web behavior Off-line behavior
•	Age
•	Gender
•	Nearest store
•	Product preferences
•	Buy for self/as a gift
•	etc
•	Opened email
•	Did not open email
•	Clicked on link in
email
•	Bounced
•	No mailing activity
•	 Purchase history
•	 Survey results
•	 Loyalty points
•	 Product searches
•	 Abandoned carts
•	 etc
•	 Cart abandoned
•	 Product searched
•	 Form completed
•	 File downloaded
•	 Video viewed
•	 Custom event
•	 Voucher
redemption
•	 Store purchase
•	 Event attendance
•	 Call center
activity
•	 Catalogue request
•	 etc
How do
you capture
and learn?
2
With a central database
of customer behaviors
B E H AV I O R A L DATA B A S E
LO C AT I O NE M A I L
C R MS O C I A L
B R I C K S 
M O R TA R P O SW E B S I T E
Fed by all these
channels and
touch-points.
How do you turn
insight into
action?
3
Rules Analysis Scoring Triggers
With four techniques:
Simple, “If/Then” logic By someone who
understands the business
To make strong purchase
signals leap out
And generate the best
next action
All you need is a simple way to
capture those rules and triggers
and scores in a logical flow…
Ooh.
Here’s one.
How do you
do it at scale?
4
Hint
Don’t attack this
B2C-scale problem
with a B2B-scale
platform…
!
You need a platform
that handles this kind of scale:
150 million Messages delivered per day
213 billion Records under management
70,000 Active Message Automations
200 million CRM records sync’d per month
346 million Individualized Automated Messages per month
4.7 Billion Behaviors processed per month
How do you
do it across
all channels?
5
Warning:
techie-looking
architecture diagram
coming up…
!
B-2-1
Automation
Engage Behavioral
Database
‘The Segment of One’
Web site
Call
Direct Mail
Email
SMS
Social
Action
Channels
Output Channels –
Communications
Silverpop Input Channels
External Input Channels
Web site
Location
Email
Social
SMS
Store EPOS
Web store
Call center
Mail order
Input channels –
Interactions
• Web store
• Mail order
• Call center
• Event
Like this…
That’s
Behavioral Marketing
and it looks a lot
like Bob.
YOU
How do you get
there from here?
You just need
to think like Bob.
likes red
has 3
kids
likesmeat
hates oaky
Chardonnay
loves Rioja
birthdaysoon
And find the right
marketing platform
Email
High volume sends
Rapid throughput
Deliverability services
Best of both
Marketing
Automation
Web tracking
Contact scoring
Contact nurture programmes
Automated behavioral routing
Alerts
And start doing
simple things…
Like cart abandonment emails
Triggered 1, 3 and 5 days
after, with the relevant
product featured…
Or re-engagement campaigns
that drip three emails to get
those dormant prospects back
into the flow…
Or welcome programs
that use send-time
optimization to reach people
when they’re most likely
to respond…
The point is,
it all starts with
simple things.
Better targeted interactions
that reflect the things each
customer does…
And gets more and
more powerful
As you get better and better at it.
And add new channels.
And refine what works.
Until one day…
Your marketing
is like Bob.
And people love you.
And come back
for more.
That’s what it’s
all about.
Start with one
step on the road to
Behavioral Marketing.
But start.
Next steps.
Here’s some further reading on
Behavioral Marketing that you
might like:
The Silverpop Book Club
Our way of sharing our favourite marketing books with fellow
marketers. Meet the authors and hear the stories behind the
books we love.
Behavioral Marketing Blog
From the latest trends and techniques to best practice examples
and customer cases. Tune in.
Leveraging buyer behaviors in a multichannel world
A short whitepaper on how you can use all the new digital
channels to your advantage.
Stay in touch.
Connect with us via social media:
Twitter
LinkedIn
Facebook
YouTube
Slideshare
Google+
Or visit us at: silverpop.com
1 of 64

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Stop Marketing Blind : How Behavioral Marketing Will Change Your World

  • 1. Stop marketing blind. How Behavioral Marketing will change your world and make you a lot more like Bob.
  • 2. Marketing practice is ten years behind marketing vision. Let’s face it….
  • 3. Here’s a little story that shows what I mean.
  • 4. This is me, A fortysomething Marketing Manager. I live in West London I like my wine*. * In a kind of a cool, metrosexual way not in a ‘problem’ way…* (* I hope)
  • 5. This is Bob, He owns Bob’s Wines, my local wine shop.
  • 6. Here’s the thing about me and Bob… 1 I spend 5x more at Bob’s than I do in my supermarket (which is famous for its wine department). Bob Waitrose
  • 7. 1 2 I spend 5x more at Bob’s than I do in my supermarket (which is famous for its wine department). Every time I go in, I tend to spend 30- 200% more than I planned. Here’s the thing about me and Bob… Bob Waitrose Bob Waitrose
  • 8. 1 2 I spend 5x more at Bob’s than I do in my supermarket (which is famous for its wine department). Every time I go in, I tend to spend 30- 200% more than I planned. 3 And I love it. Here’s the thing about me and Bob… Bob Waitrose Bob Waitrose Bob Waitrose
  • 10. Because Bob knows everything about me. I eat a lot of meat. I hate oaky Chardonnay My five favorite Spanish reds I secretly covet a certain Super-Tuscan I love Rioja My birthday is coming up I tend to spend £15 per bottle My wife loved that Rosé from last week I love cooking Spanish food Pinot Noir bores me witless
  • 11. Marketing needs to get more like Bob. P R O F I T S I M I L A R I T Y TO B O B
  • 12. Every step closer to Bob- ness increases every metric that matters. Traffic, conversion rates, email opens, click- throughs, loyalty, repeat purchase, lifetime value… The more Bob-like your marketing gets the more you will sell.
  • 13. But today, marketing is painfully un-Bobular.
  • 14. If Bob were a typical marketer instead of the world’s best wine salesman… He wouldn’t say, “Hey John, how’d you get on with that Riesling?” He’d say, “Hello potential customer. This is a wine shop. White or red?”
  • 15. The good news: we’re on the way B R OA D C A S T TA R G E T I N G S E G M E N T I N G P E R S O N A L I S I N G
  • 16. The good news: we’re on the way B R OA D C A S T TA R G E T I N G S E G M E N T I N G P E R S O N A L I S I N G We’re all marketing in a far more sophisticated way than just a few years ago…
  • 17. Most of us are segmenting our audiences. That’s good. College Educated With Kids College Educated With Kids College Educated With Kids Female Homeowner Male 30-40 Male 30-40 Male 30-40 Female Homeowner Female Homeowner
  • 18. But mostly, we’re segmenting into big buckets. We need to make these segments smaller and smallerand smaller and smaller and smaller and smaller.
  • 20. Then you’re really talking to each person as an individual. And using the things you know about that individual to have a MUCH more intelligent, relevant interaction. Like Bob would.
  • 21. That’s made possible by Behavioral Marketing. And it’s the most exciting leap in marketing since email…
  • 22. Behavioral Marketing just means: using what you know about customers to better meet their needs.
  • 23. Today, marketers tend to target messages using two things: How do you like your Email? Text HTML 1 2 Profile Preference
  • 24. But there’s a much, much bigger win: targeting by behavior.
  • 25. Your customers are telling you all about themselves and their needs and their interests every time they interact with you.
  • 26. And the insight you can derive from this data is by far the best guide for personalizing the customer experience.
  • 27. If you do that, your messages have a shot at getting heard above all the…
  • 28. Noise We’re all exposed to about 30,000 messages a day.
  • 30. Apply rulesYou apply rules Capture behavior from any channel Combine with existing knowledge from profiles, preferences and past actions across all channels Generate the best, most personalised interaction And most relevant track across all channels Measure and store learning to inform rules It’s a really simple idea You capture action You generate the best, interaction
  • 31. Apply rulesCapture behavior from any channel Combine with existing knowledge from profiles, preferences and past actions across all channels Generate the best, most personalised interaction And most relevant track across all channels Measure and store learning to inform rules And you can refine that really simple idea: Capture behavior Combine with existing knowledge Generate the best, most personalised interaction Measure
  • 32. And then turbo-charge it. Capture behavior from any channel Combine with existing knowledge from profiles, preferences and past actions across all channels Apply rules Generate the best, most personalised interaction And most relevant track across all channels Measure and store learning to inform rules
  • 34. The problem: • Bob has a few hundred customers. You might have a few million. • So how do you apply Bob-style Behavioral Marketing in your world?
  • 35. You’ve got to answer five big questions: 1 2 3 4 5 Which behaviors matter most? How do you capture and learn from them? How do you turn this insight into action? How do you do it at scale? How do you do it across all channels?
  • 37. Only you can decide what’s best, but pick from this kind of data: Demographics Email behavior Relational data Web behavior Off-line behavior • Age • Gender • Nearest store • Product preferences • Buy for self/as a gift • etc • Opened email • Did not open email • Clicked on link in email • Bounced • No mailing activity • Purchase history • Survey results • Loyalty points • Product searches • Abandoned carts • etc • Cart abandoned • Product searched • Form completed • File downloaded • Video viewed • Custom event • Voucher redemption • Store purchase • Event attendance • Call center activity • Catalogue request • etc
  • 39. With a central database of customer behaviors B E H AV I O R A L DATA B A S E LO C AT I O NE M A I L C R MS O C I A L B R I C K S M O R TA R P O SW E B S I T E Fed by all these channels and touch-points.
  • 40. How do you turn insight into action? 3
  • 41. Rules Analysis Scoring Triggers With four techniques: Simple, “If/Then” logic By someone who understands the business To make strong purchase signals leap out And generate the best next action
  • 42. All you need is a simple way to capture those rules and triggers and scores in a logical flow… Ooh. Here’s one.
  • 43. How do you do it at scale? 4
  • 44. Hint Don’t attack this B2C-scale problem with a B2B-scale platform… !
  • 45. You need a platform that handles this kind of scale: 150 million Messages delivered per day 213 billion Records under management 70,000 Active Message Automations 200 million CRM records sync’d per month 346 million Individualized Automated Messages per month 4.7 Billion Behaviors processed per month
  • 46. How do you do it across all channels? 5
  • 48. B-2-1 Automation Engage Behavioral Database ‘The Segment of One’ Web site Call Direct Mail Email SMS Social Action Channels Output Channels – Communications Silverpop Input Channels External Input Channels Web site Location Email Social SMS Store EPOS Web store Call center Mail order Input channels – Interactions • Web store • Mail order • Call center • Event Like this…
  • 49. That’s Behavioral Marketing and it looks a lot like Bob.
  • 50. YOU How do you get there from here?
  • 51. You just need to think like Bob. likes red has 3 kids likesmeat hates oaky Chardonnay loves Rioja birthdaysoon
  • 52. And find the right marketing platform Email High volume sends Rapid throughput Deliverability services Best of both Marketing Automation Web tracking Contact scoring Contact nurture programmes Automated behavioral routing Alerts
  • 54. Like cart abandonment emails Triggered 1, 3 and 5 days after, with the relevant product featured…
  • 55. Or re-engagement campaigns that drip three emails to get those dormant prospects back into the flow…
  • 56. Or welcome programs that use send-time optimization to reach people when they’re most likely to respond…
  • 57. The point is, it all starts with simple things. Better targeted interactions that reflect the things each customer does…
  • 58. And gets more and more powerful As you get better and better at it. And add new channels. And refine what works. Until one day…
  • 60. And people love you. And come back for more.
  • 62. Start with one step on the road to Behavioral Marketing. But start.
  • 63. Next steps. Here’s some further reading on Behavioral Marketing that you might like: The Silverpop Book Club Our way of sharing our favourite marketing books with fellow marketers. Meet the authors and hear the stories behind the books we love. Behavioral Marketing Blog From the latest trends and techniques to best practice examples and customer cases. Tune in. Leveraging buyer behaviors in a multichannel world A short whitepaper on how you can use all the new digital channels to your advantage.
  • 64. Stay in touch. Connect with us via social media: Twitter LinkedIn Facebook YouTube Slideshare Google+ Or visit us at: silverpop.com