How Smart Marketers are Using Digital Media to Attract, Engage, & Serve Customers

Presented by Joel Book, ExactTargetJune 16, 2011

LIVE / Chicago

I’m at #3sixtyLiveinChi. @JoelBookof @ExactTargetis sharing examples of smart interactive marketing.

Joel BookExactTarget

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Event: #3SixtyLiveinChiJoel Book: @joelbookExactTarget: @ExactTarget

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Joel BookMarketing Services Manager

May 17, 1976

I wonder how marketing will be different in 2011?

<1990 1990s

FaxDirect MailTelephone

1999 2000s 2011TVRadioPrintDisplay

IMEmailFaxDirect MailTelephone

TVRadioPrintDisplayWebsiteSearchOnline Display

IMEmailFaxDirect MailTelephone

TVRadioPrintDisplayWebsiteSearchOnline DisplayPaid SearchLanding PagesMicrositesOnline VideoWebinarsAffiliate Marketing

Mobile EmailSMSIMEmailFaxDirect MailTelephone

TVRadioPrintDisplayWebsiteSearchOnline DisplayPaid SearchLanding PagesMicrositesOnline VideoAffiliate MarketingWebinarsBlogsRSSPodcastsWikisSocial NetworksMobile Web

Mobile EmailSMS + MMSIM EmailFaxDirect MailTelephone

TVRadioPrintDisplayWebsiteSearchOnline DisplayPaid SearchLanding PagesMicrositesOnline VideoAffiliate MarketingWebinarsBlogsRSSPodcastsWikisSocial NetworksMobile WebBehavioralSocial Media AdsVirtual WorldsAppsQR Codes

Media [R]evolution

In 2011, 72% of marketers and agencies will increase spending on digital marketing.

More Budget for Digital Marketing

Source: The DMA“Digital Marketing Practices in the U.S. and Canada: Navigating the Digital Labyrinth”Research conducted by Ipsos Reid Marketing, and the Canadian Marketing Association (CMA)February, 2011

• Aids the Buying Process• Improves Service• Maximizes Retention

ENOUGH!!

How Online Consumers Begin Their Day

58% of Online Consumers Begin the Day With Email.

Full report available at www.exacttarget.com/sff

Source: ExactTargetSUBSCRIBERS, FANS, & FOLLOWERS Report #1, Digital Morning

“Those who buy products marketed through email spend 138% more than non-readers of email.” Source: Forrester Research“E-Mail Marketing Comes of Age.”

93% of internet users turn to email to share content.Source: “Content is the Fuel of the Social Web”AOL and Nielsen Online, April 2011

The Customer Life Cycle

Product Awareness

Product Evaluation

Product Purchase

Product Usage

Brand Loyalty

Repurchase/Renewal

Once a person gives you permission . . . • Email aids the buying process.• Email drives repeat usage.• Email keeps customers connected to your company.

Business Getting Business Keeping

Email Enables Brands to Optimize Customer LTV

• Amplifies Your Message• Fuels the Conversation• Attracts New Customers

Social Media UsersFacebook: 620M Worldwide(1) / 116.8M U.S.(2)

Twitter: 190M Worldwide(1) / 16.4M U.S.(2)

LinkedIn: 100M Worldwide(3) / 49.0M U.S.(3)

YouTube: 2B Views/Day; Avg. View: 15 Min.(4)

Sources: (1) eConsultancy, (2) eMarketer, (3) LinkedIn, (4) YouTube

Social Media has Revolutionized the Way Brands are Defined

Social Networks Pack Plenty of Influence

US marketers will spend $3.08 billion to advertise on social networking sites in 2011.Source: eMarketer, Jan. 2011

75% of social media users say email is the best way for companies to communicate with them.

MarketingSherpa, 2010

• Delivers Exclusive Offers• Drives Traffic• Extends Customer Service

Smartphones Accelerate Mobile Marketing

Source: The Huffington Post(Based on IDC Report) February 8, 2011

Smartphones such as the iPhone from Apple are now outselling personal computers!

65.8 million people in the U.S. now own smartphones. Of these, 35.3% use apps.Source: comScore MobiLens2011 U.S. Mobile Subscriber Market ShareMarch , 2011

EMAIL DOMINATES SMARTPHONE USE

WILL TABLETS BE A BtoBMARKETING GAME-CHANGER?

The New iPad 2 from Apple

24 million tablet computers will be sold in the U.S. in 2011.Source: eMarketer, Dec., 2010

"[The iPad] enables our sales employees to do a much better job of engaging in a really different way than we've done before."

Michael Hedges, CIO, Medtronic Wall Street Journal, Dec. 8, 2010

Best Use of Digital Media for Consumer Packaged

Goods Marketing

At Scotts, it’s all about You!• All website content -

articles, forums, videos, and product information -is regionalized

• Online preference center drives email content (soon text)

• One CMS is used to personalize web and email content

Scotts.com Home Page

Content is Personalized based on:• Consumer’s Grass Type• Consumer’s Zip Code (Climate Zone)• Weed and Insect Problems

Scotts Uses Lawn Care Update. . .• To Educate Consumers • To Drive Traffic to Channel Partners• To Create Brand Advocates

Lawn Care Update• Started in Spring 2000• Subscribers: 1,500,000+• 355 total unique geo-demographic versions

WHAT MAKES LAWN CARE UPDATE SO EFFECTIVE?

• Relevant Information• Exclusive offers• Links to Product Usage Tutorials• Personalized Recommendations• Social Sharing (Forward to a Friend)

• It works! Lawn Care Update subscribers apply 1.1 more applications per year than non-subscribers

SCOTTS INVITES CONSUMERS TO OPT-IN FOR

PRODUCT APPLICATION TEXT ALERTS

SCOTTS SALUTES MLB GROUNDSKEEPERS; INVITES FANS TO BECOME EMAIL SUBSCRIBERS

Thx 4 ur interest in Scotts Lawn Care monthly email. Reply LAWN [space] email address (ex:LAWNmlb@mlb.com) 2 complete signup. H help Std rates apply

SCOTTS INVITES FACEBOOK FANS TO

BECOME SUBSCRIBERS.( And 50% Convert! )

• Introduced in June, 2004• Only great tasting low

carbohydrate pasta on market

• Appeals to diabetics, low carb dieters, and people seeking higher fiber

• Costs about double the retail of regular pasta

DREAMFIELD’S USES EMAIL+ SOCIAL TO FUEL

WORD OF MOUTH MARKETING

Dreamfields Email Subscribers• Consumers: 600,000+• Healthcare Professionals: 25,000+

DREAMFIELD’S IS THE FASTEST GROWING PASTA

BRAND IN THE COUNTRY

Dreamfields Provides Tools for Talking to Patients

Technical product materials To address skepticism and invite

questions

Product sample to taste, share, use box for demoPatient Education Pamphlets

Explain “how it works” in patient’s language

Recipe Flyer with coupon Provide tangible purchase incentive

and reminder for patient

Healthcare Professionals are Key Influencers

Best Use of Digital Media for Retail Marketing

JOHNSTON & MURPHY PERSONALIZES OFFERS FOR

INDIVIDUAL CUSTOMERS

Objective: Increase Response Using Gender-Based Content & Segmentation

Success Factors

Increased Open Rates:

18%• Sent only to first time

purchasers• Customers that have

purchased previously skip to next stage of lifecycle

Lifecycle Series – Welcome Email for 1st Time Buyers

Objective: Cross-sell products using predictive modeling

Success Factors

Increased Sales by:

33%• Offers based on

behavioral modeling• Relevant to customer age

and gender

Lifecycle Series – Repurchase Email

Predictive Modeling email targets customers who’s behavior is predicted, based on all customer analysis.This email has 2 targeted offers:

• Primary – high-end, expensive hand made shoe.

• Secondary – product accessories, such as shirts and colon.

Predictive Modeling Example

Objective: Reengage customer with time sensitive offer

Success Factors

Increased CTR by:

44%• Short redemption period to

create urgency• Promo code changes daily to

reduce possible internet fraud

Lifecycle Series – Reactivation Email

EMAIL IS THE BACKBONE OF MIKE’S DIRECT MARKETING

STRATEGY

WELCOME TO MIKE’S EXPRESS CARWASH Founded 1948 in Fort Wayne, IN and

headquartered in Indianapolis 37 locations in Indiana and Ohio; Breaking ground

for the 38th location in March Mike’s Carwash is the 4th largest carwash chain in

the country and employs 600 people Mike’s uses the most technologically advanced,

state-of-the-art equipment available -- 65% of which is manufactured by Mike’s

Family-owned for more than 60 years

2009 “TALK TO MIKE’S” CAMPAIGN NETTED

38,000 EMAIL SUBSCRIBERS

Mike’s 2010 “Social Commerce” Campaign Attracted 10,000+ New Customers!• Enabled Mike’s to add new email subscribers• Enabled Mike’s to promote its online retailing website

+

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+How the program worked

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62% of consumers who redeemed Grouponsat MikesCarwash.com have become Mike’s Carwash email subscribers!

+

6,000 new subscribers!

MIKE’S USES EMAIL TO DRIVE ONLINE

SALES

Mike’s Christmas Holiday Email Promotion to Drive

Online Sales

150%Increase in

Online Sales Using Email!2008 vs. 2010

Best Use of Digital Media to Support Franchisees

and Dealers

Carmel12524 N. Gray RoadCarmel ,Indiana 46033(317) 574-9626carmelin@gymboreeclasses.com

Map and Driving Directions

GYMBOREE USES EMAIL TO STAY CONNECTED WITH

MOMS & DADS

Elisabeth Rohm reads for Jumpstart’s Read for the Record at Gymboree Play & Music in Los Angeles

Gymboree Monthly Email Gymboree Blog: “Gymbo Buzz”

“We use our email newsletter to encourage Moms and Dads to visit our blog, “Gymbo Buzz.”

Our blog provides direct access to information about Gymboree Play & Music classes, including videos and comments from parents. This enables Moms and Dads to see the benefits of our classes on child development.”

Kathleen McFerrinGymboree Play & MusicRegional Field Consultant

WHOLE FOODS FUELS THE CONVERSATION

USING EMAIL & TWITTER

Whole Foods Leverages Twitter• 1,942,499 Followers • Versions for wine, cheese, organic products• Tweets respond to customer questions, and invite customers to opt-in to Whole Foods’ email newsletter

Whole Foods Chicago Uses Twitter to:• Highlight in-store events• Promote special offers• Answer customer questions

Regarding Twitter . . . • 66% of Fortune 100 companies engage customers via Twitter• Twitter users are 3X more likely to engage with brands than users of other social networks

Best Use of Digital Media for Business to Business

Marketing

Volvo Construction Equipment’s e-marketing strategy has helps dealers sell millions of dollars of new and used equipment each year.

VOLVO USES EMAIL TO HELP DEALERS SELL NEW EQUIPMENT

VOLVO USES EMAIL TO HELP DEALERS SELL USED EQUIPMENT

VIDEO IS VERY EFFECTIVE FOR LEAD

GENERATION

CTA #1

CTA #2

Lead Management Workflow

Data cleansing

Auto-generated email for customer

Auto-generated report for Volvo

sales rep

Microsoft Dynamics CRM enables Volvo sales reps to manage leads

Information Request

Milwaukee Tools created its own social network, the “Heavy Duty Club,” to provide members access to product information, videos, tips from users, rebates and promotions.

Heavy Duty News keeps Milwaukee Electric Tool connected with its customers

“Heavy Duty Club” members are

passionate about Milwaukee Tools .

The Power of VideoSince Milwaukee Tools began including

links to video showing its tools in action, website traffic has increased 36%!

Connecting buyers with local retailers is a major objective of Milwaukee Tool’s online marketing strategy.

Marketing has shifted from a one-way broadcast to a real-time digital dialogue.

One Size Fits All

Digital Dialogue has Replaced Mass Messaging

Multi-Channel Synergy is a Must

Managing the Customer Conversation Requires Integration of Outbound & Inbound Channels

Optimal Model for Managing Customer Engagement

Source: Forrester Research - April 2009 “Campaign Management Needs A Reboot”

A Single Platform for Interactive Marketing

Don’t Miss Our Family Reunion!

• 3 Days of Interactive Marketing Insight and Inspiration• 55+ breakout sessions• 10 educational tracks• Pre-Conference Industry Certification Courses• World-renowned keynote speakers including Jimmy Wales, Founder of Wikipedia• And a special concert by Katy Perry!

Thank You!Joel BookExactTarget, Inc.

jbook@exacttarget.comEmailMarketingbytheBook.com@JoelBookhttp://www.linkedin.com/in/joelbook