E-Commerce Marketing Dr Klemushin Week #5 Wednesday October 17

• Team#4 presents their dotcom brief

• PerfectPlan Case study questions & exercises

• see next slide for “looking ahead—weeks 5,6,7,8

• Homework -see last slide – excellent articles for Monday class on Big Retail’s experiments going online + Read Ch 9 ..Online Retail in Laudon/Traver -especially pages 597-603

• Homework-Case Study on the PerfectPlan see eres for docs to read/review

Looking Ahead: weeks 5 – 6 – 7 – 8 Note: Monday Nov 5 is Exam

week 4: Oct 8: GoogleAdwords –search mktg: Michael Reeves Team #3 presented dotcom brief …& email mktg fundamentalsWeek 5: Oct 15 : Social Media Mktg: Maya GrinBerg, Wildfire/Google Oct 17: Team# 4 presents their dotcom brief and ..highlights of PerfectPlan Case StudyWeek#6: Oct 22: Team#5 presents; & lecture on Big Retail gets ec religion Oct 24: Linkedin guest speakerWeek#7: Oct 29: Bookrenter.com –Integrated mktg campaigns Oct 31: Exam study guide & more Week#8: Monday Nov 5: EXAM

Team Project--- put into high gear

• …engage your small biz owner & team members to plan & execute the Mktg campaigns:

-Website improvements to meet new e-commerce goals!-facebook page - any improvements/actions needed-Email Mktg, facebook page, fb-ads, google adwords, perhaps

linkedin and other social marketing (Youtube, Twtiter)-what should small biz Internet mktg plan be for next 3 months?

-Every team member should have ‘ action activities.’

• Connect with ConstantContact to start planning your team’s mktg campaigns

Social Media Marketing…..

• Maya Grinberg showed us Forrester’s New SMM model—not the traditional sales funnel, and some different metrics…

Companies are still struggling with how to measure social media and its resulting ROI.

• read—”Social Media ROI Metrics You Can Use Right Now!”

- May 22, 2012- http://www.clickz.com/clickz/column/2178428/14-social-media-

roi-metrics

Case study: PerfectPlan using different sales & marketing methods to reach & influence a target market.

The Situation Analysis…the date is Sept 15. A Financial Services firm in California has IRS approval for a new Retirement Plan for Small Business Owners -their annual fee for administering the new plan is $1500 per year -The goal is to sell 2000 new plans by Dec 31st

.. only 14 weeks to plan and execute.-the Mktg budget is $100,000-Does the firm have any chance to meet this difficult goal?------------------------------------------------------------------------Visit :Onepersonplus.com to see the details behind this retirement plan offering. see alternative retirement plans: IRA, 401k, sepIRA,..Read the PerfectPlan case study; the customer referenceDo the homework assignment

Research, planning, testing & executing testing different mktg campaigns

The Mktg choices that Meta Management considered: Direct Mail Telemarketing--Outbound telephone approach Direct Sales Reps in 10 big cities Seminars Email/Web Campaign PR-Public relations Effort-----

Homework: come up with ‘assumptions’ for :1. a seminar mktg campaign vs 2. an email marketing campaign

Discussion of Alternative Mktg & Sales Approaches to Reach target customers. The need to Make Assumptions& Estimates

Campaign / Considerations

Basic Needs?-customer info?-materials?

Skills?-experts needed?

OwnerFor this campaign

Time to createTime to testTime to execute

Cost elements-Total cost

ResultsExpected# of ‘hot leads’

Direct Mail -letter-brochure-mailing lists

-experience-design the piece

Telemarketing -outbound sales-training-phone #s

-how many callers can we afford

Direct Sales -availability?-hiring-training

-how many cities to we have a sales rep?

Seminars -presentation-logistics

Travel,

Email/web campaign

-web expert-experience-email lists

Use $0.20 per email

PR efforts -Agencies to contact

$18,000.

First Steps: Some research & some assumptions before execution of any mktg campaign!

• Who are the targets for the emails? 1.small business owners with high income and 1-5 employees plus 2. their trusted advisors: ______________ & _______________

• What is a small business owners current options? and what is Perfect plan’s value proposition over them? - interview the current current Perfect Plan: what were their questions?

What were key reasons for signing up for PerfectPlan? How long did take them to make the decision?

• Can we give them a ‘taste’ of PerfectPlan benefits?

Review of Homework to perform the email mktg campaign..

#2- What can we afford?—Calculate the CPA—the average cost for 1 acquired customer (or ‘hot lead’ for B2B mktg)

CPA = $100,000 / 2000 hot leads for new customers = $50

Having an estimate of what we can afford in mktg/sales to get one new customer is very helpful to guide our testing of mktg options.

#3 Make some assumptions to do Seminar Mktg_ #4 Calculate what the total costs might be #5. Make some assumptions for email mktg campaigns#6. What total costs for email/web mktg

Seminar Assumptions & Seminar Marketing Costs to see if this mktg method meet the ‘PerfectPlan’goals

• Key constraints: 1. the time to carry out the logistics to build & execute a seminar campaign2. The cost - given we have a tight constraint of $100,000

Key assumptions: • What is a good estimate of the cost for 1 seminar? How many people can we get to one seminar location? • What estimates for the costs to invite target prospects to the seminars? Can we estimate the conversion rate(% that sign up from 1 seminar)? Can we then calculate the estimated CPA=the cost to get one hot

lead from one seminar

Email Mktg/ Microsite method-the key steps

#1—Need email addresses. Investigate the sources & costs --how many times can we send an email to same email address? --ex: 10,000 emails @.$20 /email = $2000 #2- Need to create & test subject lines for each email “blast” #3. Need to create (write) the email contents

#4. Create the microsite—the landing page-the first thing the prospect sees when they click thru …email to microsite.

#5. Do the email blast..Follow-up…Measure daily …Tune messages …Do it 2x per week 10 weeks x2 = 20 email mktg campaigns

To Create the Microsite--the landing pagefor a click thru from the email …and more.

See oneperson[plus.com

• the microsite a special purpose website will give the target customer more information..& a chance to understand this new plan

Landing Page--including a call to action..a tease to know more -An online calculator to see the tax benefit--but must give

something to get something -Explain what Perfect Plan is ! Who is eligible? -Testimonials of small biz owners who signed up - a Contact us page (Toll free Numbers and more) - who is the company(About us)

‘Microsites’ for online MarketingSpecial purpose websites for online marketing campaigns

• Microsites are specialized websites that are used to market a specific product or service.

• Microsites have a different look & feel from the company site . They are great for presenting focused information about a product or

service in an engaging, user friendly manner. Use as a landing page for SEM or for email mktg campaigns.

• Microsites allow the mktg team to step outside of normal website approval channels, to publish and update content quicker and easier

Examples: PerfectPlan, Burger King, Target, Car Companies/

.

Assumptions for email mktg campiagn How many emails needed?Microsite Costs ; execute & report costs

Turn the sales funnel upside down & start with goal of 2000 orders --assume 33% conversion from “hot leads” --therefore..need 6,000 hot leads to convince to sign-up #2 Assume 10% of the visitors to website try the online calculator, email or phone with

questions: Need 60,000 interested prospects

#3. Assume 5% click-thru to the microsite from emails Need to send 1,200,000 emails #4. But---we can re-use email addresses (assume use each list 3 times) : Need 400,000 unique email addresses #5. Estimate of cost : $.2 X 400,000 = $80,000 for emails Estimate for people costs: $20,000 Total $100,000

Yes--email marketing can meet the requirements!

Takeaways from the actual PerfectPlan email mktg campaigns….What worked well; what we learned:We were able to meet the goals for # of hot leads Very important: Daily metrics on what was happening from 20 different email campaigns

25,000 visitors clicked to the microsite, 6500 tested the calculators or used the online proposals!! Collected contact information on over 2500 FAs, CPAs, small business owners--

Email lists from Magazines were high quality-but limited in numbers Magazines provided tens of thousands, but not hundreds of thousands. List vendors provided volume but headaches with quality of execution.

The calculators used as “active spaces” streamlined the capture of user information. Follow-up on leads was a big challenge! There were organizational issues on who owned the leads for follow-up: the outside sales force vs in-house sales team.

 

The other Campaigns-What worked well; what we learnedTelemarketing was abandoned after 2 week of trials

Training a challenge & Cold-calling was too difficult with this complex offering Difficult to get the cost effectiveness desired The CEO was assigned this task and was too busy-I guess. Negative: logistics, costs, experts required, and time obstacles

PR campaign produced an excellent Forbes article But--approvals took too much time! A bit late for effective use

Direct Mail-small & large brochures were created and distributed but Still waiting for responses! Direct Sales Force impact on sales

Found it more convenient to focus on what they knew to make their sales quotas.

 

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Homework and looking ahead to Monday’s lecture…

Next Monday • Team#5 presents their dotcom brief

• Monday’s Presentation: “Big Retail finds E-C religion”

•read: Williams-Sonoma plans to expand online retail to 75 nations…www.sfgate.com/business/article/Williams-Sonoma-to-open-online-sales-to-75-nations-2372897.php • Read this article online:@Walmartlabs‘Wal-Mart throws weight behind online entrepreneurs’ http://in.reuters.com/article/2011/12/21/walmart-ecommerce-idINDEE7BK0ES20111221

• Read Ch 9 ..Online Retail in Laudon/Traver -especially pages 597-603

• Homework-Case Study on the PerfectPlan see eres for docs to read/review