Permission Marketing, Riga November 2008

How to setup and successfully

execute a permission based email

marketing program

• Michael Leander Nielsen

• CEO, Fokus Integrated

• [email protected]

1(c) Michael Leander Nielsen, 2008

Presented by Michael Leander at the Baltic

Direct Marketing Conference in Riga, Latvia

on 26th. November 2008

(c) Michael Leander Nielsen, 2008 2

Michael Leander

• 10 years on the business side- CEO, midsize companies, IT software- VP sales/marketing, 2 * public companies- VP sales/marketing, 1* midsize

10 years on the agency/consulting side- Advertising agency, consultant- CEO, marketing consulting + ESP


Contact details:

Email: [email protected]

Newsletter:

http://www.fokusintegrated.com/meemoo2/

mailto:[email protected]



The agenda

Why permission based email marketing?

The email marketing evolution

unCase studies

How to get started with an email marketing program

Deciding on a program that brings value to you and your audience

Acquiring email permissions

Tips to improve your email marketing efforts (get all tips at free web-seminar in January 2009)

Email marketing trends, articles & insights. Free newsletter




1. Why permission based email marketing?

What is it and why is it important?

Permission and why permission based email marketing

Various stages of permission marketing

Mastering permission marketing as one step towards engaging integrated marketing

Legislation you must not ignore


What is permission based email

marketing?

Email newsletters


Transactional emails Customer, product surveys

E-mail marketing can be used for any

purpose, targeted at anybody, anytime

CMO Trends 2009 – ongoing survey


Why e-mail marketing?


Why?

Cost

savings

Quick response

cycles

Popularmedia

Measurable

Targetable

Buildsrelationships

Reach

Revenue

Retention

Demand vs EVP?

(Email Value Proposition)

Critical mass?

Alternatives?

Resources?

Systems?

Commitment?

Why not?

10Sources: Forrester, DMA, Gartner Group

USD 1,50

USD 10

CheaperPr. contact/reach

EmailDirect Mail

E-mail seems the logical choice

0 - 3 days

1-4 weeks

EmailDirect Mail

FasterResponse time

TargetedReel time

Behavioral data

New messages/activities based on..

• Opened

• Click-response

• Transactions

• Opened – no transaction

• Click-response to pre-defined website URLs

(c) Michael Leander Nielsen, 2008

Media channel effectiveness, simplified

DIRECT & OUTBOUND

Cost per contact

Cost per thousand

Convert to

action

Actions(sale)

Cost per action

Canvas call by sales rep.

1.400,- 1.400.000,- 20% 200 8.325,-

Telemarketing 100,- 100.000,- 5% 50 2.000,-

Direct mail 50,- 50.000,- 2% 20 2.500,-

E-mail 10,- 10.000,- 0,75% 7,5 1.333,-

SMS/MMS 7,- 7.000,- 0,15% 1,5 4.667,-

• Test to find your optimal mix

• Decide: sender control or recipient control

• Combinations are often most effective in terms of ROMI

2. The email marketing evolution


Where are you?

e-mail marketing Generations

1st. generation

Broadcast, “SPAM”:

• high volume, low cost

• “Send and forget”

• Often irrelevant to receiver

2nd.generation

Permission Marketing:

• Responsible communication.

• Poor segmentation

• Minimal personalization

• Not yet fully committed

• Referrals start coming

• ROMI improving

3rd. generation

Precision Marketing:

• Highly relevant

• Customized

• “Mail Worth Opening”

• “Mail Worth Acting On”

• Develop relationship

• Loads of referrals

• Great ROMI

• Trigger based initiated

• Integrated with surveys

• Life cycle automation

• Interactive

19% 1%80%

Value


Time/

Commitment

3 Generations. From email marketing to

customer lifecycle marketing automation

G1:Email

Permission marketing

• Attract

• Connect

• Engage

• Convert

• Retain

G2:

Automate/ IntegrateDialogue

• Connect

• Engage

• Convert

• Retain

• Interact

• Grow

G3:Customerlifecycle

marketing automation

• Connect

• Engage

• Convert

• Retain

• Interact

• Grow


Attract

Engage,

Convert,

Retain &

Grow

The goal for any marketer in 1997, 2009?

ARelevant offer

Right timing

Effective channel

Target

B C D

Nov

26


3rd. Generation prospect/customer WheelDifferentiated approach addresses different needs

1Pre Sale

2Sale

3 Past Sale

Pre Departure

4Departure

5 Arrival 1.

destination

6 Travel &

experience

7 Comming

home

8 Evaluation

& Reliving

9 Next

Pre Sale

Profiling and knowledge of where the customer is in the ”wheel”

opens up for a coordinated and relevant dialogue before sale,

during and after

Transactional

Behavioral

Targeted

Example

Travel

SMS/Email

Insurance

Car rental

Excursions

Car rental

Recommend

to friends

2. Uncase studies

Learn from the mistakes of others

• 95% of all email marketing programs are unsuccessful

- 98% of them are managed without any clear objective

- Very few email marketers care about the needs of the individual customers

• The successful ones does


An abundance of ignorance


Don’t send me Dubai offers,

when I am already in Dubai ..

Don’t offer me savings

if you do not deliver outside

United Kingdom.

Attention-Deficit Hyperactivity Disorder

(ADHD) Someone please help Bob Poole

from FastPitch



Offline instrumentation – no exception

unCase study

1. Unaddressed letter

with 8 different items

at min. cost of € 10

2. They have my

permission to email

3. I am a customer

already

4. Complex sale – lots

of prerequisites

5. Sender name not

personal

6. Not a word on their

website

3. How to get started with an email marketing

program

Rules that apply to everyone


Ask five economists and

you'll get five different

answers - six if one

went to Harvard.

Edgar R. Fiedler

ROMIReturn on Marketing Investment

Also known as MROI – Marketing ROI.

PS: Feel free to call it ”commonsense”

Your strategic objectives for email

permission marketing

Customers

• Build relationship

• Sell more stuff (cross-sell/upsell)

• Profile customers

• Expand touchpoints with customers

Prospects

• Initiate and build relationship

• Customer acquisition

• Profile prospects

• Survey prospects

?

• Create referral mechanisms

• Re-activate lost customers (win-back activities)


Success defined by

# referrals Win-back

Success defined by

Convert to customer

CTR

Success defined by

SalesRepeat

Business

Why – what is it all for?


http://www.youtube.com/watch?v=wVQPY4LlbJ4

What is your value proposition? What are

you offering that might interest me?

• Outside in

• ”Subscribe to our newsletter” isn’t a very strong USP

(Unique Selling Proposition)

• Be the first to learn more about

new Pîrâgi recipes made with

Kimmel beer – not milk or water


3. Acquiring (email) permissions

Legislation

When people sign-up to receive news from you,

they buy into the promise you’ve made.

Your obligation is to keep your promise.


The EU permission legislation

• Opt-in legislation

• You must receive permission to send e-mails/SMS/MMS containing sales/marketing related content

• You must respect the opt-out/”no thank you”

• The penalty for not being in compliance is severe

• Large fines imposed on any company in breach

• Largest fine in Denmark so far was in excess of USD 800.000

• Lot’s of grey areas

• Remember that consumers/business buyers define spammers – many marketers are perceived as spammers – even if they are in legal compliance

• It is outrageously easy for consumers to blacklist a marketer (ask your email marketing service provider about this)


Prioritize: Whom are your Most Wanted

Permissions

Loyalty

Terrorist

Dissatisfied

Suspect

Prospect

Trial Buyer

Customer

Advocate

Fan / Partner


http://www.manutd.com/default.sps

Acquiring permission across all points of

interactionIntegrated permission acquisition in all channels

• Website

• Campaign websites

• Emails (signature)

• Point of sale

• Direct mail

• Telemarketing

• Customer service (inbound)

• TV/Radio etc

• Print advertising

• Which channel is most effective for you?

• Which channel deliver the most dedicated

subscribers?• Be careful what you ask for !


Acquisition – mind sets

Generation 1


Advantages

- More sign-ups

- Better conversion

rateDisadvantages

- More work

- Irrelevant /

not personal messages


Disadvantages- Less sign-ups

- More content, more work

Advantages- Qualifying Information

- Relevant Messaging

-” Geo-tagging”

- Lead ownership

- Targeted content

Acq

uis

tio

n m

ind

sets

Gen

era

tio

n 2

-3

Example – Denmarks largest furniture

retailer chain


• First implemented in 2005

• Outperforms all other

signup forms

• 99% of all profiles are

complete

- The text

Win 1.000 each month

Tell us about yourself and

get a chance to win the

prize.

You participate for as long

as you are a subscriber.

Sex

Birth year

Children at

home

Type of housing

4. Tips to improve your email marketing

efforts

Let’s see how many we can do

More tips at free web-seminar in January 2009


Let me explain…. or not?


The ”motor people” approach

• Relentless focus on the target group

and the need of the individual

• Focus on content – relevant content

• Sales process aligned with the

buying process

• Experimental mind – test, test, test

• Return on Marketing Investment

• Flowcharts to document activities

• Combine on/offline activity for

maximum effect

•Offer/message first, then creativity

• Differentiated communication

• Creative to support the end-result, not

creative for the sake of creativity

• The Managing Director is not an influencer

To make the motor run

smoooth and with great effect,

nothing is left to chance

Tip : Your MWRs Most Wanted Responses

What are you

trying to

accomplish?

What is your most

important MWR?

MOST WANTED

RESPONSES?

Tip #3: Getting the attention you deserve

From – never

change the sender

address/name

Subject – oh,

very important

Preview pane: Be sure that

your compelling reason to open is at

the very top

Tip : Test test test

• Test and measure

• Measure and test• Constantly check

how you are doing and ask

yourself how you can improve

your results.

Tip # 4: Differentiate your messages

(content) with profiling

39

Tangible increase in your results

Marketers actively applying profiling get better results

• Open rate by 10 – 30%

• Click-through rate by 20-40%

• Conversion to buy ratio by as much as 80-90%

• Lifetime of a subscriber increases dramatically

• Decrease of opt-out rate


What is profiling?

A process of meeting customers needs by collecting

information about them. This information can be obtained

with volunteered/declared information from the customer

or collected passively (observing the customer’s

behavior patterns).

My B2B profile My B2C profile


First + last Name

Email

Mobile #

A press photo conceptualized by

a German creative who spent too much

time in Berlin….

Position?

Influence?

Size of company

Budget for X

Annual use of Y

Soft data

Preferential

information

Basic

demographics

Bying process

When, how

CFO’s

Male

39-45 yrs. Old

Married (wife)

Kids (#, sex, age)

Lifestyle

Preferences

Status of X

Income (no)

Assets

Property

Basic

Demographics

Affluent

neighbourhood?

Targeted content – example B2B

Decision

maker

Influencer Technical

dude

Other parties

Finance offer X X

New competitor

benchmarkX X

Company news

and stuffX X X X

Executive White

Paper

If clicked

X

If clicked X orY

No If clicked Y

Product news with

a techie angleX

42


Do not underestimate the power of good content, nor the

work involved in creating good content

These 10 tips will get you off

to a good start1. Start with the development of your permission marketing strategy

2. Ensure that you are offering a compelling reason for people to opt-in

3. Create a certain amount of relevant and unique content

4. Calculate your expected ROMI

5. Build your permission database by utilizing all possible channels

6. Ensure that you have systems in place to handle opt-in, opt-out,

measurement, individualizing and preferably integrated with your

CRM/ERP system

7. Combine media-channels for optimal effect and performance

8. Work with your content, timing and creative

9. Expect quick results quick - and improved results over time

10. Consult an expert if in doubt


No more miracles?


Advice:

Successful permission marketing

doesn’t happen over night. Planning

and a long term perspective is required

Thank you for being the

perfect listener• Good luck with permission based e-mail

marketing in the future

• Questions or comments – drop me a line at

[email protected]

• Sign-up to the Meemoo2 Marketingboss

Newsletter here: http://tinyurl.com/63gjd7


mailto:[email protected]

http://tinyurl.com/63gjd7

Permission Marketing, Riga November 2008

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Transcript of Permission Marketing, Riga November 2008