Permission Marketing
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Coined and popularized by Seth Godin, permission marketing is the opposite of traditional interruption marketing. Permission marketing is about building an ongoing relationship of increasing depth with customers. In the words of Seth Godin, “turning strangers into friends, and friends into customers.” Permission marketing has been hailed as a way for marketers to succeed in a world increasingly cluttered with marketing messages.
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Permission Marketing
- 1. Permission Marketing Turning Strangers into friends, and friends into customers. Prepared By Ashri Del Rio Digital Strategist, ABS-CBN Twitter @iamashri
- 2. Permission Marketing Turning Strangers into friends, and friends into customers. What you will see • Who is Seth Godin? • What is Interruption Marketing? • What is Permission Marketing? • Interruption Vs Permission Marketer • How to get new customers through Permission? • Five levels of Permission • What to do when marketing on the web? • Permission Marketing in the context of web • Four keys to setting up your Permission- Based Web Site • Case Studies • What are the first steps to get started with Permission Marketing?
- 3. SETH GODIN Best Selling Author • Born on July 10, 1960 (age 54) in Mount Vernon, New York. • Writes about the post-industrial revolution, the way ideas spread, marketing, quitting, leadership and most of all, changing everything. • Founder of squidoo.com, a fast growing, easy to use website. • Before his work as a writer and blogger, Godin was Vice President of Direct Marketing at Yahoo! A job he got after selling them his pioneering 1990s online startup, Yoyodyne. • In 2013, Godin was inducted into the Direct Marketing Hall of Fame, one of three chosen for this honor. • Recently, Godin launched a series of four books via Kickstarter. The campaign reached its goal after three hours and ended up becoming the most successful book project ever done this way. • His latest, The Icarus Deception, argues that we've been brainwashed by industrial propaganda, and pushes us to stand out, not to fit in.
- 4. SETH GODIN Best Selling Author • Author of 17 books that have been bestsellers around the world and have been translated into more than 35 languages.
- 5. So, How many marketing messages have you seen today?
- 6. Interruption Marketing The traditional approach to getting consumer attention.
- 7. Interruption Marketing • Also known as Outbound, Traditional, or Old-fashioned Marketing. The traditional approach to getting consumer attention.
- 8. • Refers to promoting a product through continued advertising, promotions, public relations and sales. • It is considered to be an annoying version of the traditional way of doing marketing whereby companies focus on finding customers through advertising. • This can take various forms such as: • Telemarketing • Print advertising • Direct mail • E mail spam • Television Ads • Radio advertisements. Interruption Marketing The traditional approach to getting consumer attention.
- 9. What if you could turn clutter into an asset?
- 10. Permission Marketing The way to make advertising work again.
- 11. Permission Marketing The way to make advertising work again. • Permission marketing is the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them. • It recognizes the new power of the best consumers to ignore marketing. It realizes that treating people with respect is the best way to earn their attention.
- 12. Permission Marketing The way to make advertising work again. • Anticipated - people look forward to hearing from you • Personal - the messages are directly related to the individual • Relevant - the marketing is about something the prospect is interested in
- 13. Did you know that there are two ways to get married? Interruption Marketer vs. Permission Marketer
- 14. The Interruption Marketer Walks into a singles bar, marches up to the nearest person and proposes marriage.
- 15. The Permission Marketer The other way to get married is a lot more fun, a lot more rational, and a lot more successful. It’s called dating.
- 16. The Permission Marketer 5 Steps to dating your customer 1. Offer the prospect an incentive to volunteer. 2. Using the attention offered by the prospect, offer a curriculum over time, teaching the consumer about your product or service. 3. Reinforce the incentive to guarantee that the prospect maintains the permission. 4. Offer additional incentives to get even more permission from the consumer. 5. Over time, leverage the permission to change the consumer behaviour toward profits.
- 17. “Pay attention” is a key phrase here. Please remember:
- 18. 1. Consumers physically have a finite amount of attention. 2. The percentage of marketing messages consumers get decreases as the amount of noise increases. 3. Permission Marketers are aware of the fact that consumers pay attention only if they are actually interested in the product. 4. It is too difficult to get their attention back if they change their mind. Because…
- 19. How interruption marketing creates permission opportunities?
- 20. Once the corporate world caught a glimpse of mass brand advertising, mass marketers were hooked on Interruption Marketing….
- 21. The reasons were simple: Interruption Marketing… • Easy • Scalable • Predictable • Controlled
- 22. Focus on Share of Customer, Not market share.
- 23. Focus on four things when selling to customers… 1. Increase your share of wallet. 2. Increase the durability of customer relationships. 3. Increase your product offerings to customers. 4. Create an interactive relationship that leads to meeting more customer needs.
- 24. The Process of getting new customers 1 2 3 4 STRANGERS 5 FRIENDS CUSTOMERS LOYAL CUSTOMERS FORMER CUSTOMERS
- 25. How do we do this now?
- 26. Through Permission Marketing… You can now choose WHOM you reach & WHEN you reach them.
- 27. The natural synergy of permission and one-to-one marketing The one-to-one marketer works to change his focus from finding as many new customers as he can to extracting the maximum value from each customer. The Permission marketer works to change his focus from finding as many prospects as he can to converting the largest number of prospects into customers, Then he leverage the permission on an ongoing basis.
- 28. Marketing one to one A glimpse on Amazon's strategy
- 29. How Frequency builds trust and Permission facilitates frequency
- 30. So how to turn awareness into familiarity? FREQUENCY
- 31. By applying frequency to the poor opponent’s head, Ali was able to bring his message home.
- 32. The frequency you bring to an advertising campaign does two things: It causes the consumer to focus on the message you’re trying to get across. It cuts through the clutter with the sheer law of averages.
- 33. Remember the first few times you heard Taylor Swift’s Blank Space? “Got a _______________ lovers.” ✓ Long list of Ex- x Lonely Starbucks
- 34. Permission empowers frequency Frequency led to awareness, awareness to familiarity, and familiarity to trust.
- 35. And trust, almost without exception leads to profit.
- 36. But what if you are a challenger brand? or what if your product isn’t a piece of our culture? And you need to build that trust?
- 37. Today: It’s no longer “Run an Ad on Tuesday, watch sales go up on Wednesday.”
- 38. There should be an interactive process, an approach that takes time and persistence, and continual adjustment.
- 39. The Five levels of permission In order of importance* 1. Intravenous (and purchase-on-approval level) 2. Points (liability model and chance model) 3. Personal Relationships 4. Brand Trust 5. Situation
- 40. Automatic Replenishment Intravenous (and purchase-on-approval level)
- 41. Automatic Replenishment Intravenous (and purchase-on-approval level) Why would anyone do this? Why give up so much control and allow someone else to profit from this level of trust?
- 42. Points (liability model and chance model) Formalized, scalable approach to attracting and keeping the prospect’s attention.
- 43. Points (liability model and chance model) Formalized, scalable approach to attracting and keeping the prospect’s attention.
- 44. Personal Relationships The corner dry cleaner enjoys implicit permission to act in your best interest. A favourite retailer can "upscale" you (recommend something more expensive) without offending you.
- 45. Brand Trust Given a choice between the known and the unknown, most people choose the known.
- 46. Situation "You know, an Ariana Grande," I said. "You make me whatever you want. What, you've never heard of it?"
- 47. Spam Where most marketers live most of the time: calling a stranger - at home, during dinner, without permission. You wouldn't do it in your personal life. Why do it to potential customers?
- 48. Once you have learned permission, you must keep it and attempt to expand it. Working with permission as commodity.
- 49. Four Rules to help marketers understand permission 1. Permission is non transferrable. 2. Permission is selfish. 3. Permission is a process, not a moment. 4. Permission can be canceled at any time. Please Remember:
- 50. What to do when Marketing on the web?
- 51. To have a coherent strategy when facing the web, you need to answer these questions: 1. What are we trying to accomplish? 2. Can it be measured? 3. What is the cost of bringing one consumer, one time, to our website? 4. What is the cost of having that consumer return? 5. If this works, can we scale it?
- 52. Permission Marketing in the context of the Web - The Web changes everything.
- 53. Four keys to setting up your Permission- Based Web Site 1. Test and Optimize your site 2. Make the permission overt and clear 3. Use computers. Not people, to send and receive information 4. Focus on Mastery - Online Consumers need to feel smart
- 54. CASE STUDIES
- 55. The challenge was to create an impact with Globe’s new commitment to its subscribers: to provide quality network strength, super-value offers, rewards for usage, and superior international service, to demonstrates that indeed the customer is king, “Ang lakas mo sa Globe.” Sa Piling mo
- 56. Sa Piling mo Globe fulfilled the consumers’ unrealised desire for uninterrupted viewing by airing Sa Piling Mo, a top-rating primetime soap opera, with no commercial breaks - a first in Philippine Television - transforming the execution into message itself. “Gusto ko lang naman walang patid ang kilig.”
- 58. LEMON LOVIN’ DIGITAL CAMPAIGN Savanna wanted to do something quirky to celebrate Valentine's Day. They created an integrated campaign that got people involved and kept them talking through the dry humour they'd come to know and love from Savanna.
- 59. Volkswagen decided to sponsor the Planeta Terra Festival (big music fest in São Paulo) as it was a great opportunity to bring their trendy car, the Fox, closer to city's youth. Then came our challenge: spread the Fox message beyond the event walls, reaching every youngster in São Paulo. Volkswagen - Fox at Planeta Terra
- 60. Honda's Double-Sided Story To introduce the new Honda Civic Type R, a souped-up version of the car maker’s Civic hatchback, they created The Other Side, a “double-sided” film that tells two different stories about the same man driving the the regular Civic versus the Type R in two very different scenarios…at the same time.
- 61. What are the first steps to get started with Permission Marketing?
- 62. 1. Figure out the lifetime value of new customer. Without this data it will be extremely difficult to compute what its worth to acquire a new permission. 2. Invent and build a series of communication suites that you will use to turn strangers into friends. This can be a series of e-mails, a series of letters, a number of scripts to use in phones conversations, a series of web pages, and so on. Essential to each suite are four elements: • They must take place over time. • They must offer the consumer a selfish reason to respond. • The response should alter the communications moving forward (change the message as you learn more about the consumer) • They should have a final call to action so you can measure the results. 3. Change all of your advertising to include a call to action. Never run an Ad of any kind that doesn’t give consumers a chance to respond. Once they respond, initiate once of the communication suites.
- 63. 4. Measure the result of each suite. Throw out the bottom 60 percent and replace them with new suites. Continue testing different approaches forever. 5. Measure how many permissions you achieve. Measure how much permission changes buying behaviour. Reward all parties on the permission team for exceeding metrics. 6. Assign one person to guard the permission base. Have that person focus on increasing the level of permission gained from each individual and reward her for resisting short-term profiteering. 7. Work to decrease your cost of frequency by automating responses and moving to e- mail and the Internet.
- 64. 8. Rebuild your Web site to turn it from brochureware to a focused permission acquisition medium. 9. Regularly audit your permission base to determine how deep your permission really is. 10. Leverage your permission by offering additional products or services by co- marketing with partners.
- 65. In summary, Permission Marketing… The entire focus should be to get the consumers to do two things: 1. Tell you what he/she wants to know, what problems need to be solved;and 2. give you permission to follow up in any way possible. And then, use interactivity to gain information about your prospect in dialogue. you can deliver messages that are anticipated, personal and relevant.
- 66. “OK, YOU can keep in touch with ME.” “But just about this.”
- 67. THANK YOU. Permission Marketing Turning Strangers into friends, and friends into customers. Prepared By Ashri Del Rio Digital Strategist, ABS-CBN Twitter @iamashri
Editor's Notes
- Marketers tend to forget the Empathy towards the consumer.
- The interruption marketer buys an extremely expensive clothes and fashionable accessories. Then, working with the best database and marketing strategists, selects the demographically ideal bar. Walks into a singles bar, marches up to the nearest person and proposes marriage. - If turned down, the interruption marketer repeats this process on every person in the bar. If he comes up empty handed after spending the entire evening proposing, the blame should be placed in the clothes, the strategy expert who picked the bar and they should be fired. And the interruption marketer tries again at a different singles bar. Its the way most large marketers look at the world. They hire an agency. build fancy ads. “RESEARCH” the ideal place to run the ads/ Interrupts people and hope that one in a hundred will go ahead and buy something. Then when they fail, they fire their agency!
- Permission is like dating. You don't start by asking for the sale at first impression. You earn the right, over time, bit by bit. A permission marketer goes on a date. If it goes well, the two of them go on another date. And then another. Until, after ten or twelve dates, both sides can really communicate with each other about their needs and desires. After twenty dates, they meet each others families. Finally, after three or four month of dating, the permission marketer proposes marriage. Permission marketing is just like dating. It turns strangers into friends and friends into lifetime customers. Many of the rules of dating apply, and so do many of the benefits.
- your key message, awareness, what is it for the consumer, engagement, rewards, loyalty… (think of the marketing funnel)
- because permission marketers understand that when someone chooses to pay attention they are actually paying you with something precious. And there's no way they can get their attention back if they change their mind. Attention becomes an important asset, something to be valued, not wasted.
- So Permission Marketers use this scarce resource efficiently by sending offers only to consumers who are interested in the product.
- Once the corporate world caught a glimpse of mass brand advertising, mass marketers were hooked on Interruption Marketing….
- Interruption Marketing… was easy. Build a few ads, run them everywhere. was scalable. If you need more sales,buy more ads. was predictable. With experience, a mass marketer could tell how many dollars in revenue one more dollar in ad spending would generate. (example: money, then get no. of impressions) fit the command and control bias of big companies. It was totally controlled by the advertiser, with no weird side effects.
- Instead of focusing on how to maximize the number of new customers, the focus should be on keeping customers longer and getting far more money from each of them over time. Customers as brand Ambassadors (advocacy part in funnel) Remember we are in the perspective of PERMISSION MARKETER.
- Increase you share of wallet. Figure out which needs you can satisfy, then use the knowledge you have, and the trust you’ve built to make that additional sale. Increase the durability of customer relationships. invest money in customer retention, because its the small fraction of the cost of customer acquisition. Increase your product offerings to customers.By being customer-focused instead of retail-focused, or factory focused, manufacturer or merchant can widely increase its offerings thus increasing share of wallet. Create an interactive relationship that leads to meeting more customer needs. It’s a cycle. By constantly encouraging the customer to give more information, the marketer can offer more products.
- The goal is to teach, cajole (persuade someone by flattery) , and encourage this stranger to become a friend. And once she becomes a friend, to apply enough focused on marketing to create a customer.
- The order of messages. The benefits offered.You can create dozens or even hundreds of paths for an individual to follow from the first contact until the highest level of permission is granted. (comm plan) If the marketing messages sent are anticipated, relevant, and personal, they will cut through the clutter and increase the prospect’s knowledge of the benefits you offer.
- https://www.youtube.com/watch?v=m2sMsyUN7FY
- Before a marketer can build trust, it must breed familiarity. But there’s no familiarity without awareness. And awareness—the science of letting people know you exist and getting them to understand your message cannot happen without advertising.
- Muhammad Ali did not become heavyweight champion of the world by punching twenty people one time each. No, he became a champ by punching one guy twenty times. By applying frequency to the poor opponent’s head, ali was able to bring his message home. Advertising works the same way. Advertisers know that the single best way to make an advertising campaign work is to run the ads lot. By all means, be sure to reach every possible consumer. But it’s far more important to deliver advertising with frequency. DRILL IT HOME AGAIN AND AGAIN.
- It cuts through the clutter with the sheer law of averages. If only 10 percent of the people remember your ad tomorrow, but your ads run for 30days in a row, sooner or later virtually everyone will remember it. It causes the consumer to focus on the message you’re trying to get across. Just as repeating to a 4 year old makes it more likely that he’ll get the idea you’re trying to communicate.
- You probably had a little trouble remembering the lyrics. It sure sounded as though Taylor was singing “got a lonely Starbucks lovers” Then, over time, as you heard the pop song over and over again, the message became clearer.
- In fact, in virtually every industry the most trusted brand is the most profitable.
- Example ABS-CBN Mobile
- Advertisers don’t have the power to interrupt enough consumers to make it pay the way they used to. In a world of mass customisation, of high-speed products and higher-speed messaging (like viber, whats app and FB messenger) consumers don’t want an off the shelf batch approach. Consumers are now demanding more PERSONALIZATION. (They are most likely to respond to advertising that is frequent,focused and personal.
- Creating a value through interaction is far more important than solving a consumer’s problem in thirty seconds. So if you can get the right to communicate with permission,you’ve just obtained the right to use frequency. (And that, as we’ve seen is the holy grail of marketing.) Permission marketing is not ready,aim, fire approach to marketing. At its core, it flies in the face of traditional thinking about advertising. Permission marketing allows the same effectiveness. It encourages the commitment and frequency that made mass marketing work years ago. But it replaces continuing interruption with ongoing interaction.
- The goal of permission marketer is to move consumers up to the permission ladder, moving them from strangers to friends, to customers. and from customers to loyal customers. At every step up the ladder, trust grows, responsibility grows, profits grow. ***There’s a sixth level called spam (unsolicited advertising) but it’s so low that Seth won’t refer to it as a level anymore.
- What industries do this well? Gym memberships! Charging you X amount of money/month. they make money! You are charged even you don’t use it, right? (you allowed them! Without stopping them! they made it very affordable, you like their promise that you don’t even want to stop them. Brilliant!)
- To save time 2. To save money 3. Basically because, you don’t like to make a choice. 4.To avoid stuck- outs. This is where you basically hand over your life to somebody else and it is the highest from of permission you can give. For example if you were in a car accident and you needed to go to hospital for an emergency operation, you will be handing over complete control to the doctor. He then has the permission to do whatever he wants. The idea of automatic replenishment can be extended in more ways as technology makes it easier to execute these systems. Virtually every product! therefore, can be sold by subscription.
- Based on What’s in it for me? Rebates, Rewards, Points! One of the best permission bases a business can implement is a points based system. This is where you bring your customers back to buy again from you by offering them some kind of points incentive for doing so. Supermarkets and airlines are very good at this and it is a great way to keep a customer for life and build more permission.
- Surprisingly, these rank behind points in the permission hierarchy. Why? because they don’t scale. Personal relationships in the business world are slow and difficult to make deeper. It might take years of golf and excellent products and focused selling and Word of mouth to make a relationship more profitable. This is where you are the brand. People get to know you and buy from you as the business. Also known as personal branding, this is effective because people get to know, like and trust you so it becomes easy to build up trust and customer loyalty. Using this relationship you have with an individual is an extremely effective way to temporarily refocus his attention or modify his behaviour, but this approach is completely dependent on individuals.
- Further down on the scale is brand trust. It is similar to personal relationships, however the business or product is the brand. It is further down on the scale because it is very expensive to build a brand and can take a long time. (Based on Credibility.) Brand trust is dramatically overrated. It’s extraordinarily expensive to create, takes a very long time to develop, is hard to measure, and its harder still to manipulate. Brand trusts leads to brand extensions.
- Situational permission is where you ask for a very small amount of permission. It may be that someone stops you in the street and asks for the time. They are asking a very small amount of permission from you. From that point of contact it is then easier to ask for a bigger commitment. Buzz feed: Can you give me an Ariana Grande Coffee? http://www.popsugar.com/food/Starbucks-Ariana-Grande-Drink-36951629
- Basically i just want you to understand that Permission is a continues process… And you need to work hard for it. You cannot earn it overnight.
- just imagine holding PB’s from your AM’s today. I’m sure that you have questions in your mind.
- As you could see, from the previous chapter, it’s not what the experts believe. But now, i guess we can all agree that the internet is the greatest direct marketing medium ever invented and not the TV.
- We are on the right direction people! <3
- Philippine television is one of the most commercially cluttered media environments, with 18 minutes of commercials per television hour. It is also the most consumed medium, specifically for the middle- to- lower socioeconomic groups who turn to it for various reasons- information, entertainment - even family time.
- The marathon was exhibited in the first few weeks’ episodes and the finale. Despite limited brand exposure (just a differently produced OBB/CBB and five exposures of a downstream message that says “You are enjoying a no commercial airing of this program because you are important to Globe”), consumers overwhelmingly understood Globe’s message, creating positive image for the brand.
- TEAZZ positioned itself as a direct competitor of Coke They wanted to amplify their message “the good cola” Summer time! Coke and TEAZZ in the same Boracay event. TEAZZ knew that people tend to forget to bring beach slippers. They give away slippers. In the end, people went to coke event wearing TEAZZ slippers. EMPATHY.
- https://www.youtube.com/watch?v=hbXSVKiTALs
- Volkswagen decided to sponsor the Planeta Terra Festival (big music fest in São Paulo) as it was a great opportunity to bring their trendy car, the Fox, closer to city's youth. Then came our challenge: spread the Fox message beyond the event walls, reaching every youngster in São Paulo. SOLUTION First, we spread a series of tickets in different places within' São Paulo. Then, we launched an online platform where visitors could see the Google Maps of the entire city. The mechanic was simple: the more tweets #foxatplanetaterra, the closer the zoom on the map. The first one to get to the ticket, won it. This went on for four days straight. RESULTS The tweet #foxatplanetaterra became a TrendTopic in São Paulo in less than 2 hours, where it remained for the entire length of the competition.
- https://www.youtube.com/user/HondaVideo/OtherSide And therein lies the work’s beauty. The viewer gets to experience, virtually, what happens, in reality, when one drives the new Type R. Isn’t that where the brilliance of all advertising lies? Transporting the consumer in a way that allows them to truly experience the benefits of owning the advertised product?
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