How Direct Marketing Applies in a Multichannel Marketing World

Copyright 2010 Jacobs & Clevenger

Ron [email protected]

How Direct Marketing Applies in a Multichannel Marketing World

How Direct Marketing Applies in a Multichannel Marketing World

A Presentation forA Presentation for

Ron JacobsPresident, Jacobs & ClevengerCo-Author, Successful Direct Marketing MethodsSponsor, Ron Jacobs & Bob Stone Multichannel Marketing

Communications Certificate Program, DePaul University


Agenda

• How multichannel marketing is affecting marketers, media, agencies and communications around the globe

• What market transformation means to marketers, agencies, consumers and customers

• How digital & social media tools can produce behaviors of decision makers, influencers and buyers that can be exploited for lead generation, nurturing, CRM and brand marketing

• How channels are rapidly changing and what that means for organizations trying to integrate them online and offline channels into their marketing communications campaigns


How airline food is like advertising

“The food must be for everyone, you see. And so, it is for no one.“An Airline “Chef” based in Dallas


It’s the Chaos Scenario for marketing communications

• The quid pro quo among marketers, channels & consumers is gone– Marketers are resistant to support broad media & channels– Consumers unwilling to pay for information from media

• Single channel marketing is no longer effective– Broadcast, print, direct mail, email, web… None stand alone

• Purchase decisions are collaborative, not linear– Be with customers on their journeys, nurturing them along the way

• Brand marketing is no longer about changing perceptions, it’s about changing behavior– Moved from exposure to involvement– Brand & response are interwoven


All marketing has become direct marketingDirect marketing has become multichannel marketing

• Use data for targeting– Segmentation & micro-

segmentation• Target geographically

– Local & hyperlocal• Communications’ objective

is conversions– It’s not just about image &

awareness– It’s about behavior

• Add calls to action in copy– This is how you get

consumers to convert

• Addressable media – Personalize & Customize

communications• Measurement &

Accountability– Bridges marketing & finance

• Improve Return on Marketing Investment– Invest based on Customer

Lifetime Value• Frequency, timing & testing

– Learn when to engage


Multichannel customer behavior is the new normal


Today, prospects take countless non-traditional, non linear journeys to

become customers

Why so many marketers taking the same journeys that they always have?


Multichannel marketing communications requires a new strategy framework

Define theMultichannelGoal

How will multichannel:

•Create Customers•Make money•Save money•Satisfy clients•Grow Customer Lifetime Value•Increase brand Equity

Define theMultichannelGoal

How will multichannel:

•Create Customers•Make money•Save money•Satisfy clients•Grow Customer Lifetime Value•Increase brand Equity

Develop the MultichannelStrategy

How will eachchannelfulfill the goal:

•Identify targets•Which channels apply•Prioritize channels•What is the message strategy •Decide on 3-5 KPIs

Develop the MultichannelStrategy

How will eachchannelfulfill the goal:

•Identify targets•Which channels apply•Prioritize channels•What is the message strategy •Decide on 3-5 KPIs

Test, Measure and Improve Return On MarketingInvestment

Where does theorganization:

•Profit•Grow•Invest•Short term•Long term

Test, Measure and Improve Return On MarketingInvestment

Where does theorganization:

•Profit•Grow•Invest•Short term•Long term

Problem Recognition

Re-engagement,Winback

Affinity, Loyalty and Lifetime Value

Engagement and Customer Service

Post Purchase Triggers, Activation

Purchase/ Conversion

EvaluateAttributes

InformationSearch

Behavioral Hourglass


Marketing communications agencies are transforming as well: The new agency organization chart

Project management


Marketing communications agencies are transforming as well: The new agency idea team

Project management

The new agency idea teamcombines

account, creative & technology

The new agency idea teamcombines

account, creative & technology

Technologist


Key Performance Indicators (KPIs) can help measure everything

1. Business contribution:Channel reach, revenue contribution (direct and indirect), Return On Investment (or ROMI), category penetration, costs and profitability.

2. Marketing outcomes: Customers, leads, sales, service contacts, conversion, retention, winback and response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value.

3. Customer satisfaction:Usability, performance/availability, recommendation behavior. Opinions, attitudes, reasons for defection, brand impact and churn.

4. Customer behavior :Profiles, customer orientation (segmentation), usability, clickstream and site actions. Bounce rates, conversions, page views, depth, page & site duration, RFM and transaction behavior.

5. Channel promotion:Attraction efficiency. Referrer efficiency, cost of acquisition and reach. CPC Vs CPM. Search engine visibility and link building. Unique visitors, frequency, e-mail marketing results. Channel integration.

6. Social marketing:Engagement (e.g. # of comments); involvement (e.g. time spent); bounce rate; # of reads, comments, & posts; brand affection/aversion; conversions; mention of brand name; advocacy; viral activity; referrals; recommendations; multiple moving averages; etc.

1. Business contribution1. Business contribution

2. Marketing outcomes

2. Marketing outcomes

3. Customer satisfaction

3. Customer satisfaction

4. Customer behavior

4. Customer behavior

5. Channel promotion

5. Channel promotion

6. Social Marketing

6. Social Marketing

•KPIs distill analytical data into relevant information

•Exclusive to each business

• Specific

•Valuable

•Actionable

•Focus on the 3 – 5 most significant metrics


Social MarketingExtending your brand and business through

social engagement


Social commentary on Social Marketing… Future Man goes back to the 1960s

AND “UPLOAD” PICTURES OF THEIRBREAKFASTS TO A

“FACEBOOK”

AND “UPLOAD” PICTURES OF THEIRBREAKFASTS TO A

“FACEBOOK”

AND OTHER PEOPLE WILL LOOKAT THE BREAKFASTS

AND MAKE COMMENTS

AND OTHER PEOPLE WILL LOOKAT THE BREAKFASTS

AND MAKE COMMENTS

SORRY TO BURST YOUR BUBBLE, DUDES.

BUT YOU ASKED. YES, THAT’STHE FUTURE!

SORRY TO BURST YOUR BUBBLE, DUDES.

BUT YOU ASKED. YES, THAT’STHE FUTURE!

FUTURE MAN, I CAN’T BELIEVE PEOPLE WILL FIND THAT MORE

INTERESTING THAN READING NEWSPAPERS OR WATCHING NETWORK TV!!

FUTURE MAN, I CAN’T BELIEVE PEOPLE WILL FIND THAT MORE

INTERESTING THAN READING NEWSPAPERS OR WATCHING NETWORK TV!!

SO YOU’RE SAYING PEOPLE WILL

“TWEET” WHAT THEY EAT” FOR

BREAKFAST?

SO YOU’RE SAYING PEOPLE WILL

“TWEET” WHAT THEY EAT” FOR

BREAKFAST?


Social marketing is still in a nascent stage

• Agencies and marketers are addicted to ad campaigns– Not continuous customer dialogues, cooperative communications, etc.

• Traditional agencies aren’t staffed for social marketing• Marketers aren’t sure what they are buying/getting• Marketers have lost control of their message• Marketers don’t understand how their audience engages• Marketers don’t know where it fits within their organizations• Marketers aren’t sure why they should care about social

marketing


Businesses are Taking Social Marketing Seriously

• The amount of video uploaded to YouTube every minute– 24 hours

• The amount of time it would take to view every video on YouTube– 1,750 Years

• The number of YouTube videos viewed per day– 2 Billion

• The average number of tweets on Twitter.com every day– 65 Million


Businesses are Taking Social Marketing Seriously

• The number of photos archived on Flikr.com as of June 2009

– 13.6 Billion• The amount of content (Links, news, posts, notes,

photos, etc. shared on FaceBook weekly – 3.5 Billion• The number of minutes spent on FaceBook daily– 16 Billon• If FaceBook were a country– It would be the 3rd most populated in the world, behind China

& India• The number of Articles on Wikipedia

– 16 Million


Argentine Social Media Usage

• Number or Register Facebook users– 6 million in Argentina

• Number of Registered Fotolog users– 4.5 million in Argentina

• Number of registered Sónico users– 2.3 million in Argentina

• Number of registered Twitter users– 3 million in Argentina

Sources: Ecco Communications Network/ComScore


Conversations are taking place around your category, your brand, and the entire buying process

• Where are conversations taking place?

• Who are the influencers driving them?

• What is being talked about? (e.g. Keywords)

• Is the Sentiment positive or negative?

• Can keywords be turned into dialogues, multichannel copy?


Social Channels work together, but play their own roles


Paid Media


Crispin Porter + Bogusky’s Social Home Page


Owned Media … A Brand Channel


Kogi BBQ… Twitter for traffic building and CRM


Earned Media… Angie’s List


Multichannel conversion, testing & attribution


A line of code is placed on your website.

A user is tagged and added to your user population when they visit your site.

When visiting an affiliated website, the user is served with a targeted ad.

The user is brought back to your site for conversion.

A.A. B.B.

C.C. D.D.

Remarketing increases conversions by targeting users that have already visited your website


Remarketing (AKA Retargeting) example


Testing is central to multichannel marketing efforts

• Products & Services• Attributes• Headlines• Sub-headlines• Body copy• Offers (Price, Incentives,

etc.)• Calls to action• Images• Colors

• Keywords• Landing pages• Bounce rate• Lead Forms• Order pages• Bonus offers• Guarantees• Video• Audio• Fonts


Two useful methods of testing

• A/B testing (Split Testing)– Common offline direct marketing testing– Compares the performance of one variable against another– Online this can be used when moving sections around or changing the

overall look of web pages• Multivariate Testing

– Compares the performance of different content variations in multiple locations within a communication

– E.g. Can help optimize multiple content changes in different parts of multiple web pages simultaneously

– Can also be used in direct mail• In 2007 Capital One constructed 28,000 direct mail tests using this

method


A/B Split Testing

Headline

Image

Offer

Body Copy

Test A Test B

Headline

Image

Offer

Body Copy

Call to Action Call to Action

Test one variable at a time


Multivariate Testing

Headline 1

Image A

Offer 1

Body Copy a

Test A Test B

Headline 2

Image B

Offer 2

Body Copy b

Call to Action I Call to Action II

Test C

Head line 3

Image C

Offer 2

Body Copy c

Call to Action III

Test multiple variables at a time

36 Variables (3x3x3x3x3x3) = 729 Tests


Barriers to better attribution models include technology, resource, and process challenges

• Most current attribution models are flawed– The last touch standard or current session models– Causes over-invest in near-term conversion drivers

• The consumption and impact of media is interrelated with other media– Traditional media is interrelated with Digital media– The relationship between display and search changes depending on

products, brands, time of day, season, company, geography, etc.• The multichannel effect is important in high-consideration

situations – e.g. Expensive, complex or involved offerings– Financial services offerings, family vacation or a choice of college


Last ad standard

Atlas Solutions, Microsoft Advertising


Engagement Mapping across channels

Atlas Solutions, Microsoft Advertising


Multichannel Marketing Best Practices


Multichannel marketing best practices

• Different marketing channels work best for different organizations– There is no “One Size Fits All” approach– Facebook has become the de facto home page of CPG organizations– LinkedIn makes more sense for B2B organizations– Blogs and Wikis are among the best social media channels to promote

an enterprise, but don’t work as well for consumer brands– YouTube has worked for many B2B and B2C brands. It is especially

suited to businesses catering to the multimedia and entertainment industry

• Reevaluate the top and bottom tactics within your mix– This will force change where organizational inertia often prevents it



• Show you know and listen to your customers– Let them tell you what channels to market to them with– Let them tell you the frequency of contact– Let them tell you the kinds of messages that they will accept– Let them tell you of you can lend their name to other marketers

• Add some emotion to marketing communications– In B2C marketing use an emotional play on risk and reward– In B2B a buyer's goal is to avoid exposure to risk, not to make the best

decision• Use Trigger Programs to automate some marketing

operations– Anniversary, birthday, after sales service/warranty programs,

upgrades, abandoned cart programs, etc.



• Be spontaneous. It makes deeper and better connections with prospects and customers– Don’t use jargon in marketing literature or create blogs that simply

republish press releases, then tweet them as links– Natural voices and conversations are important to decision makers

• Identify top SEM Keywords, and use them in outbound communications

• B2B and B2C buyers think differently – In B2C consumers buy based on features, benefits or personal taste– In B2B sales are based on demonstrating product or service expertise

• Don’t only look for best practices within your own niche– A B2B Ecommerce organization can learn from a B2C leader like

Amazon.com



• Find ways to combine social media tools with offline engagement– Input social media profiles into your CRM system to help your sales

executives learn more about client’s day to day life for the next sales contact cycle

• Move beyond outbound marketing– Don’t just broadcast marketing messages via Twitter, LinkedIn, blogs,

Facebook, podcasts, etc.– Engage prospects and customers in continuous dialogue.

• Create and distribute a set of Social Marketing Guidelines to staff– Employee engagement is an important as customer engagement– You want staff to manage social marketing in a thought out,

transparent and positive spirit


Conclusions

• Niche Marketing is Direct marketing, Direct Marketing is Multichannel Marketing– DM is now the foundation of future marketing

• The goal of all marketing communications is to shift behavior

• Conversations (And, communications) need to be authentic, relevant, valuable, and accountable

• Customer engagement is attributable to customer experience– Relevancy is both earned and bought– It’s not Push or Pull… It’s Push and Pull!!!

• Transformation is ongoing– To remain competitive your organization needs to keep up!!


Questions & Answers

Questions?Questions?

How Direct Marketing Applies in a Multichannel Marketing World

Business

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