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Event Driven Marketing
“Always start from your customer”: How many times have you heard or used this slogan in
the last ye...
With EDM you select one specific customer for whom you capture a need. Afterwards, you
find the best product in your portf...
What is in it for me?

Competition becomes harder. We are not telling anything new with that. EDM has some
advantages over...
Pitfalls / Points of attention during EDM implementation

   a. Make sure your organisation is able to support EDM.
      ...
This results in a series of events (which can be Socio-demographic, transaction, product-
lifetime, contact,… based).

Def...
Copryright Information

This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike
2.0 Belgium...
References

JOINED! internal research.
Event Driven Marketing, Ed Sander, Failsafe Database Marketing.
Event-Based Marketi...
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Event Driven Marketing White Paper

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White paper on Event Driven Marketing: If you need a fast paced but thorough introduction, here you are! Please post your comments here, especially if you download it ;-)

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Event Driven Marketing White Paper

  1. 1. Event Driven Marketing “Always start from your customer”: How many times have you heard or used this slogan in the last year? It is one of those catchphrases that are used without really using them. Even in Direct Marketing (DM) campaigns, where the customer stands more centric by nature, a lot of below the line activities are not customer centric. If you talk about Direct Marketing, starting from the client, you talk about Event Driven Marketing (EDM). Need a crash course? Here you are: What is Event Driven Marketing? Egbert Jan van Bel1 describes Event Driven Marketing (EDM) as “a discipline within marketing where commercial and communication activities are based on relevant and noticeable changes in the individual needs of a client”. What makes EDM different from more ‘traditional’ DM is that you start from the needs of your client that he/she has at a given moment in time. So, instead of starting from your offers and finding a group of people who are likely to be interested in one offer (Product push), you start from one person with one specific need and try to find an offer that best answers his need. An example: you are marketer in a bank: In your database you see that a client could not withdraw money from a cash machine because he passed his limit. This might be the moment to propose him a flexible credit. Customer centric with a targeted approach for an individual need. A client action (which can also be doing nothing) triggers a commercial action. For the client, his need is very personal. It is a concrete need he has at this moment in his life. On the other hand, for you as a company, you have different customers (and prospects) that have the same need (but on different times). This means you can develop generic programs that cover a need. When you are able to start this program for one client at the time he has the need, for him, this feels like a very welcome and personal offer. “The right offer” instead of “The right client”. Traditional direct marketing campaigns start from a certain offer. Eg.: in a financial environment, you want to launch a campaign to sell or upgrade credit cards. 1 Autor of “Event Driven Marketing, Op het juiste moment , met het juiste aanbod, bij de juiste klant.”, Kluwer – 2006.
  2. 2. With EDM you select one specific customer for whom you capture a need. Afterwards, you find the best product in your portfolio to answer that need. “The right timing for the customer” instead of “The right time for the organisation”. The right time for the customer can be… any day for your company. This means that you will have to identify daily which customer has which specific need. When a client benefits of a heritage, he need a good advice and a relevant way to do something with the extra money now and not four months later when it happens to be your yearly investment campaign. “The preferred channel” instead of “The chosen channel”. “At the right time” is closely linked with “Trough the right channel”, because getting the message in time with the best impact to your client means using the right channel. To fully benefit of your channels, you need to have identified the ‘preferred channel’ for every client (or even better: for every client-offering type combination). Requirements for implementation. In order to be able to implement an EDM program, you need certain conditions to be fulfilled: a. Accessible client-interaction database. To propose an offer to a client at a suitable moment in time, you need to be able to capture this moment. This means that you need to have access to as many client interactions as possible. Access can be both in a more technical way (where can I find certain information?) as in a legal way (can I use this information for commercial actions?). b. Automation of event capturing and initiation of commercial action. When it is your mother’s birthday, you do not send her an anniversary card 20 days after her birthday. The same goes for an offering targeted at a specific client need. If a debt payment for a car ends at the first of April, the ‘extra available money’ may long be gone on the first of May. Also for more generic needs (eg. Need of a flexible credit solution), the success rate goes down quickly as time goes by. This requires you to have an automated process that - ideally - starts every day various programs triggered by client actions. c. Contact management. When you define various scenarios, the risk of over-targeting one particular client becomes imminent. Before going live with a wide span of scenarios, make sure that you develop and implement a contact grid. d. An organisation that is ready for EDM. People in your organisation (be it marketing, sales, communication,…) have to adopt to the EDM way of working. Going from managing one huge nation-wide campaign aimed at all customers at once towards a group of volatile, small day-by-day and customer-by-customer campaigns is not that easy.
  3. 3. What is in it for me? Competition becomes harder. We are not telling anything new with that. EDM has some advantages over traditional direct marketing campaigns: a. Higher response rate. EDM typically has higher response rates than traditional DM campaigns. Not only is the client more perceptive for your offer because you target him at the appropriate time and trough the channel of choice of the client, you also gain by sending out less communication. b. Higher impact. Not only do you leverage the response rate, you also have more impact on the client, resulting in higher profit. c. Possibility of testing. In contrast to traditional campaigns where testing is either very expensive or nearly close to a real campaign run, EDM lets you test new ideas for scenarios rather quickly because, once the scenario is ready, you can select a limited number of clients daily for testing. d. Ongoing adjustments. Because you select a target group every day and send out messages every day, you can monitor and adjust both selection criteria, scenario and message content daily. Compare this to a traditional campaign where you can adjust these variables lets say once every year… e. Homogenous load. With EDM, you level out the work load (both financial as in terms of human resources). You divert the peaks of load in the start-up-phase of a new traditional campaign to daily operations. Limitations of EDM There is no such thing as the Holy Marketing Grail. Also EDM has it limitations: a. Type of organisation – sector. You need to be able to design relevant, profitable and sustainable scenarios. For this you need to be able to capture actions of clients and you need sufficient clients with enough personal data. This makes EDM more suitable for some sectors than others. Banks, Insurance companies,… can typically benefit more or faster from EDM than FMCG companies. b. Client driven – no prospecting. EDM actions (except from some more socio-demographic triggered actions, with are more loyalty based) only work for existing clients. Since you have no or limited information on prospects and their actions, these potential customers are out of scope for EDM. c. Need of client action database. Having a client interaction every day is one thing, capturing these interactions is another. Being able to use this information in a standardized and automated way is more then one step further. The most appealing EDM scenarios are nothing if you have no accessible triggers to start them.
  4. 4. Pitfalls / Points of attention during EDM implementation a. Make sure your organisation is able to support EDM. If you need to send out daily mails to clients, make sure all departments involved can handle this daily feed. Working 1 month toward one gigantic campaign is not the same as sending the same load of mails evenly divided over the days of that same month. b. Make sure your channels are ready for EDM. Also here, make sure that your channels (from e-channels to sales force) are ready to work with a day to day feed of different offerings instead of one offering for a certain period in time. The JOINED! EDM approach The JOINED! EDM approach starts with an inventarisation of possibilities and limitations in various domains:  Databases  CRM  Channels  Organisation A second phase is the creative, strategic phase, where events are defined and programs elaborated.
  5. 5. This results in a series of events (which can be Socio-demographic, transaction, product- lifetime, contact,… based). Defined events are allocated to clients when a client triggers an event. Before executing the program, all events pass trough a filter, were you check the number of events with the contact grid, calculate a prioritization, take a look at the event history, consider the clients preferences and characteristics and various limitations of your organization. In a final phase, a ROI model and dashboard are being build. The EDM approach enables you not only to take a look at the ROI of one specific program, but also at the ROI of one customer (or a group of customers). Happy EDM-ing! Contact information Contact me at fillip.modderie@gmail.com. Follow my professional Twitter profile http://twitter.com/Young_Marketeer For my professional details, feel free to visit http://www.linkedin.com/in/modderie
  6. 6. Copryright Information This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 2.0 Belgium License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/2.0/be/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Aka: You may use this content for non-commercial purposes, as long as you give the right credit. I know I tried. If despite the effort I took, you think your work is in this document without the proper credit, please contact me.
  7. 7. References JOINED! internal research. Event Driven Marketing, Ed Sander, Failsafe Database Marketing. Event-Based Marketing Metrics, Bob Brady – April 2005 The Perfect Message at the perfect moment, Kirthi Kalyanam & Monte Zweben, Harvard Business Review, October 2005 Event Based Marketing for Financial Services, Vipin Mayar & Nathan Uffenheimer, May 2005 Enterprise Event Management in Banks, Umporn Tantipech & Simon Doherty, 2005

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