3 Customer Acquisition Choices Profitable Multi Channel Marketing March 2010

Customer Acquisition Choices

www.sterlingmarketing.co.ukwww.ivantage.co.uk

Choices

• Online– Organic/natural search– Paid search– Product feeds– Comparison sites– Display advertising – Social media networking– Affiliate marketing– Email campaigns:

• In house• Rented

– Viral marketing– Online PR

• Off line– Referrals– PR– Lists – swaps, rentals, pooled

databases– Media:

• Inserts• Adverts• Advertorials• Band ons

– Inserts – parcels, mailings– Door drops– Store sign ups– Joint ventures - mailings, emails,

events– TV/ Radio– Events - fairs– Out door advertising – buses, posters


Choices

WebsiteAdvertising

Catalogue

Retail

Social Networking

Mobile

Inserts

SEO


Affiliates

Paid Search

Door-drops

TV / Radio

PR

What do you want you marketing investment to achieve?

• Drive traffic > sales across all channels• Drive traffic >sales to website• Drive traffic > sales to retail• Profit centre to sell products• Build brand awareness• Build enquirer base / email base• Increase distribution of your catalogue• All of the above

Let’s examine the options and how they interrelate………


Online Customer Acquisition Choices

• Online Customer Acquisition Choices– Organic/natural search– Paid search– Product feeds– Comparison sites– Social media networking– Email campaigns– Affiliate marketing


Online Customer Acquisition Choices

• So, you have a website, but how do customers find it?• Print your web address on all materials• Customers can visit you directly• What about customers who don’t know about you?

is the key


Search is key to reaching consumers

81%of internet users enter websitesvia a search engine

2.6 billionsearches worldwide per day

29%Look to Search engines as first source of information

Source: Forrester Research Inc., “UK Internet User Monitor” , Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents.


8

How does Online Search work?

Search query

Organic/Natural Search ResultsEditorial – Influenced by SEO

Paid Search ResultsAdvertising – PPC, CPC, PfP

Paid Search Results

Organic search traffic

• Influenced by search engine optimisation (SEO)– This is really optimisation of your web site

• Need to be on the top 3 pages to see any results• Organic results are becoming more personalised• Organic results are blended with other sources of

information


Organic search traffic

• On-Page SEO– Good descriptive content is key

• Unique, informative, fresh– Technical considerations

• Page titles, meta tags etc.

• Off-Page SEO– Links from other quality sites

• Avoid paid links and link farms– A compelling message influences behaviour

• Social media• Blogs

• Good organic rankings and results take time



Paid search marketing

• Google is the dominant search engine (80%+ of all searches)– Adwords

• Yahoo search marketing and MSN adcenter– Alliance - Microsoft’s Bing will power the Yahoo Search and Ad

network

• Pay-Per-Click advertising service• Advertisers specify

– the words that should trigger their ads (keywords)– the maximum they are willing to pay per click

• Search engines then display the ads as sponsored links• The sequence or ranking depends on

– other advertisers bids– the “quality score” of the keywords and adverts

Paid adverts on the search results pages


Paid adverts on the content network


Image adverts on the content network


You Tube Advertising

You Tube is now the second largest search engine


What can paid search do for you?

• Quick and easy way to attract relevant traffic• Your adverts have the potential to reach a vast audience• You can target your audience in many ways

– Geographically– Using keywords relevant to your product/service– Selecting relevant sites where your ads can appear– Demographically– Through the wording of your adverts

• You only pay when someone clicks on your advert• You are in control of the budget

– Activation fee– No minimum spend


Paid search is continuously evolving

• Remarketing – allows you to target visitors by their actions– Target visitors who added an item to their shopping basket but

did not complete their purchase– Target visitors who purchased products A with ads for product B– Target visitors who purchased 30 days ago– Works best with image ads that reinforce the association with

the brand

• Integration with other online sources– Products feeds and search adverts


Google Product Feed



Adwords Product Plus


Comparison websites

• Comparison shopping sites compare prices from many online retailers

• Multi category sites and niche sites• These sites source prices from online retailers and direct

visitors to the retailers site for the sale

• Kelkoo, pricerunner, ciao, my deco, shopzilla

• Comparison sites generally require a product feed• Competitively priced products work best

Social Media Marketing

YourYourWebsiteWebsite

ArticlesArticles

NNEETTWWOORRKK

OOFF

FFRRIIEENNDDSS

Effective ForEffective For

Paid CampaignsPaid Campaigns

OnlineOnlineNews News SitesSites

You You TubeTube FacebookFacebook

PRPRWebWeb

StumbleuponStumbleupon

TwitterTwitter

MySpaceMySpace

FlickrFlickr

BeboBebo

DIGGDIGGDeliciouDeliciouss



Email Marketing Campaigns

• Email campaigns are a highly effective way of generating sales• Helps you develop a relationship with your customers• Your email need to serve a purpose otherwise customers will

unsubscribe– New products– Offer such as Free P&P, % discount

• Unless you purchase email lists this will generate few new customers• Forward to a friend features• Obtain email addresses whenever you can

– Instore– Telephone orders

• Action triggered emails– Customer added to basket but did not purchase– Reminders about re-ordering a product


• Pay for performance advertising model– Revenue sharing – Cost per sale

• Overlaps with other forms of advertising– Paid search, email, display advertising

• Loyalty websites that provide a reward system to the consumer (or a charity) for purchases

• Coupon websites

• Keyword rich domains

Affiliate Marketing


• Question how many are new incremental visitors• Much affiliate traffic is second hand traffic• If a customer has found your product through paid

search and then looks for a coupon, who wins/loses?• Historically many affiliates have ‘stolen’ traffic heading

for a retailer– Google implemented one advert per display url rule– Amazon associates program no longer allows paid search

bidding

• If you have your own good online marketing program you don’t really need affiliate marketing

Affiliate Marketing

Off Line Acquisition Choices

• Off line– Referrals– PR– Lists – swaps, rentals, pooled

databases– Media:

• Inserts• Adverts• Advertorials• Band ons

– Inserts – parcels, mailings– Door drops– Store sign ups– Joint ventures - mailings, emails,

events– TV/ Radio– Events - fairs– Out door advertising – buses,

posters

• What are the objectives? – Drive traffic > sales across

all channels– Drive traffic >sales to

website– Drive traffic > sales to retail– Profit centre to sell products– Build brand awareness– Build enquirer base / email

base– Increase distribution of your

catalogue– All of the above


Off Line - Web Traffic Drivers

• Media – inserts, page advertising. Builds brand awareness, drives response, drives sales

• TV – Moon Pig hugely effective in growing the business, not relevant to all market sectors

• PR – in house, outsourced, builds brand awareness, difficult to track

• Inserts – parcels, mailings• Door drops• Radio – event lead > sales• Mailings – catalogues / cards to enquirers, external lists Always test, evaluate and roll out


• PR – brand awareness, promote specific events, specific products• Media – advertising, inserts, offer driven • Door drops – socio demographic targeted areas, offer driven• TV – event driven• Radio – event driven• Out door advertising – buses, posters. Builds brand awareness in

relevant geographic areas• Shop sign ups – ensures you can stay in touch• Joint ventures – in store promotion, exchange of data• Mailings – catalogues / cards buyers, retail enquirers

Always test, evaluate and roll out

Off Line – Shop Traffic Drivers


Offline - Selling Products

• Off the page advertising – product lead, cost per advert key (use of distressed space)

• Magazine band on’s - • Readers offers- product lead, who has access to the

names?• Events – point to points, fairs (Joules)

Always test, evaluate and roll out


Increase catalogue distribution – run on costs

• Lists – benefit > proven, new customers only, strong lifetime value, not relevant to certain target customers

• Inserts – higher risk, mix of existing and new customers, reaches new customers not currently shopping directly, magazine endorsement, drives traffic across all channels

• Band–ons – magazine endorsement, mix existing and new customers, drives traffic across all channels

• Door drops – dependent on targeting effectively and market sector


Most cost effective and most valuable

• Referrals ‘Can you help us grow? We need to find more customers

like you and me. It’s not easy. So we thought the people who would be most like you would be your friends.’

• Use the key relevant opportunities:– receipt of their goods– Insert with mailings– Promoted on your website

• Promote to encourage – prize draw, sum of money on their account to spend, voucher


•

Selling plus recruiting

new enquirers

New format insert in You > drive new customers online

Endorsed insert > effective in Boden’s growth

Donald Russell’s Extremely effective insert

Telegraph Ad that drivesnewcustomers

2 Stage insert

Joules mailing to drive customers online /

instore

How to evaluate effectiveness?

• Tracking:– Different telephone number– Different product codes– Different url’s– Offer codes– Online surveys– Exit surveys

• Understanding overlap – new and existing customers– Affiliates > up to 80%– Insert / Band on > 45% to 55% existing– Door drop > up to 75% existing– PPC > 50%– Off the page advert >35% - 45% existing

• Track cross channel sales

Developing and understanding the data……..to be discussed this afternoon


How do you determine what will work for you and how much to spend on each

activity?

• Key issues:

– Market sector– Target customer and shopping behaviour– What are your competitors doing– Ensure your proposition is strong– Ensure your creative supports the brand, sells the

proposition and stands out from the crowd– Buy media effectively– Prioritise linked to your available budget – test,

evaluate, roll out – Always include a small budget to continue testing


3 Customer Acquisition Choices Profitable Multi Channel Marketing March 2010

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Transcript of 3 Customer Acquisition Choices Profitable Multi Channel Marketing March 2010