email marketing workshop part 2: the holy grail - database management
TRANSCRIPT
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Parts II & III: The Holy Grail
Database management strategies for higher email marketing ROI
Advanced segmentation & targeting
Stephanie Miller, VP, Email & Digital Services, @stephanieSAM
Nicholas Einstein, VP, Strategic & Deliverability Services, Datran Media
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RightMessagePersonTime
Every time.
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Takeaways
• How effective data management can improve email marketing response and revenue
• Simple strategies you can test to improve relevancy and response
• Five factors that help ensure cross channel marketing success
Data management for Digital Marketers =
– Email address +
– Sourcing
– Storing / Accessing / Utilizing
– Maintaining Hygiene
– Understanding / Reporting
– Integrating
– Analyzing / Optimizing
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Why Data Management
Matters
SocialMedia
Category/Brand
Interest
ProductInformation
Incentives
More Efficient & Effective Marketing• Creates relationships• Drives loyalty & satisfaction• Saves on agency costs• Lets the marketer focus on creative,
messaging, offers• Increases average purchase price• Store/product/brand recommendations
Better Customer Experience
• Channel preference/convenience
• Ability to easily find Product/brand information
• Relevant & timely promotional incentives
• Highly personalized communications delivered more frequently
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Modern MarketersKey Business Questions
• What are the Most Profitable Online behaviors? How Do I Clone Them?
• Which message types drive more profitable conversion?
• How can I rapidly capitalize on Multivariate Testing results?
• How do I leverage Marketing Attribution to Optimize Marketing Spend
•How do I reach consumers in the channel best suited to engage?
Key Business Questions
• What are the Most Profitable Online behaviors? How Do I Clone Them?
• Which message types drive more profitable conversion?
• How can I rapidly capitalize on Multivariate Testing results?
• How do I leverage Marketing Attribution to Optimize Marketing Spend
•How do I reach consumers in the channel best suited to engage?
Brand Manager Creative
Quant CMO
CHANNELS
Opportunities
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• Reduce inefficiencies working with agencies• Improve processes and interactions with internal teams• Manage the campaign execution processes
• Reach customers through a multi-channel approach• Segment to provide more relevant online content• Engage in a conversation based on response
• Gain visibility to marketing campaigns being executed• Adjust marketing spend based on performance• Streamline marketing spend• Measure & optimize ROI
COLLABORATION
PERFORMANCE
Improve Agency and Internal
Collaboration
Improving Marketing Performance & Accountability
Proliferation of New Engagement
Channels
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The Evolving World of Email & Digital
Marketing
Email ROI Puts Stars In Our Eyes
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Email Is Still the Highest ROI
• 72% - “Email ROI is excellent or good”(eConsultancy 2011)
• $42.08 earned per $1 spent (DMA-US 2010)
• Promotional emails influence retail website visits (ForeSee 2011)
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All Digital Marketing is Social
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Marketers Must Be Change
Agents!
http://www.aprimo.com/revolution/
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The Inbox is Fragmenting.
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Engagement is the new black.
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Integrating Digital Marketing
The Email Marketing Evolution from“Batch & Blast” to “Engage & Customize” is powered by automation and data integration.
Broadcast
Segment
Dialogue
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Relevancy
Engagement
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Choice
Subscriber Covenant26
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The Truth.
Typical Email Marketing Stream
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Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?Hi, are you ready to buy?
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Lifecyle Email Marketing
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Welcome! We like you.Hi, are you ready to buy?Thanks for buying!You might also like….Hi, are you ready to buy?Here’s what others like!Please tell us what you like.Hi, are you ready to buy?Cool content you might like.Hi, are you ready to buy?Something special for youAny of your friends like this?
Cross Channel Marketing
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Welcome Email. We like you.It’s Free Taco Tuesday. Pls RTHi, are you ready to buy?Thanks for buying!Text in to join our party!Dear Pamela, you might also like….Hi, are you ready to buy?Visit Facebook: What do others like?!Sale 4 U 2Day!Cool content you might like.Mobile coupon! Hurry in!Something special for you!Any of your friends like this?
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Connections Require Segmentation
Executive Buy In
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What Executives Understand.
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Earn What You Need
• Demonstrate not just revenue, but also costs, lost opportunity
• Never go alone
• Recruit a champion brand
• Get your vendors on board early
• Prove the value (POC)
• Communicate early and often
Getting The Data
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Connections Require Segmentation
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Promote Email on Facebook
Page
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Wherefore Art Thou, Data?
Customer Email Responses
Call Center
Sales Team Database Online
Nirvana
Activity on Website
EmailSocial Media
Subscriber Forms
Everything you ever wanted to know about your customer...And can use to increase their engagement.
Transactions
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Reality
Activity on Website
EmailSocial Media
Subscriber Forms Transactions
Prioritize.
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Set Your Best Starting Point
Have data to back up your assumptions
Stick with customers
Zig if competitors zag
Sometimes Medium is better than BIG
Find (or create) a Shared Goal
Ensure you can measure the key success factors
A Few Words About Permission
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Five Rules of Permission
• Get it.
• Confirm it.
• Don’t share it.
• Keep it current.
• Requires across channels.
Remember: It’s not about you.
Data Hygiene
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Hygiene = Health!
If your data is dirty…..
…you get a reputation.
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What is good hygiene?
• Excellent data collection
• Proper bounce management
• Source management & tracking
• Scrubbing/Purging
• Behavioral targeting
• Solid acquisition program
• Discipline! (esp. during the holidays)
Protecting Privacy
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Notice Choice
Guiding Principles
Privacy Checklist Up to date privacy policy
Clarity of permission grant Do not share permission
Keep permission current
Ensure easy opt out
Consider minors and other protected groups
Educate internally
Follow the spirit, not just the letter, of the law
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Please, follow the law(s).
• CAN SPAM, COPPA– Utah, Maine, Colorado, California
• Canadian Privacy Law(s)
• EMEA Permission
• Japan “Proper Transmission” Law
• EU Cookie Directive
• Chinese Access Rights
• SMS/Mobile Carrier Restrictions
Ignorance is Not a Defense.
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Authentication
http://www.dmaresponsibility.org/emailauthentication/howevaluate.shtml
LUNCH!
We start again at 2 p.m.
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Takeaways (2)
• Email is not dead – but let’s not kill it.
• Maintaining list hygiene is critical.
• Email marketing generates reams of data, focus on those that tie directly to core business objectives.
• 6 Steps to Relevancy
Using the Data:Starting Small
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Treat different customers differently
This is difficult if you also insist on treating every customer the same. Or treating every customer the best, which is a better way to describe a similar idea.
No, the only way you can treat different customers differently is if you understand that their values (and their value to you) vary.
It's easier than ever to discern and test these values, and you do everyone a service when you differentiate.
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The Basics
• Email Address/Domain
• Opt-in Date/Time
• Website Behavior
• Response History & RFM
• Zip Code/Geography
• Sex
• Contact Preferences - channel, timing, format, etc.
• Birthday
• Unsubscribe/SPAM Complaints
Ground-up Messaging Strategy
One-off Programs
• Above and beyond standard messaging• For example, targeting past holiday purchasers
Triggered Programs
• Ultra targeted based on actions• Highly customized
Base Programs
• Promotions• Newsletters• Standard streams
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Show Me the Money….
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71
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Digital Conversation Management
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Prospect Nurturing
Email Conversations• Purchase
• Upgrade
• Download
• 90 day anniversary
• Chose competitor
• Renewal
• Event attendance
• Event no show
• Service call
• Start/End Free Trial
• Long website visit
• Non-activity
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Using the Data:Add Sophistication
Winning Philosophy
• Invest in AUTOMATION (but realize its’ limitations)
• Develop a tiered-messaging strategy
• When it comes to segmentation: KISS (Keep It Simple)
– 6 is too many segments… and 5 is pushing your luck
– Different Segments get different BASELINE communications
– Everything else is personalization
• Why?
1. Each segment requires TIME & RESOURCES to target properly
2. Content creation/curation is not automatable
3. Segmentation efforts deteriorates into an impractical, academic exercise
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Possible Segmentation Criteria• Behavioral (Email):
– Engagement based on open and click data
– Registration source
– Registration date
– Buyers vs. non-buyers
– Advocates (social sharing or FTAF)
• Behavioral (Other):– Purchase data (Recency,
Frequency, Value, Product Categories, Location)
– Brand/Product Loyalty
• Geographic:– Country, Region, Climate,
Drive-Time, etc.
• Demographic:– Age, Gender, Income,
Lifestage, Presence of Children, etc.
– Profession
– Language
– Lifestyle
• Attitudinal:– Interests
– Preference data
– Brand affinity
Any Segmentation Can Work
Per
cent
age
ofE
-mai
l Mar
kete
rs
Question: Average unique conversion rate (i.e., total number of unique orders/transactions divided by number of net e-mail delivered for all campaigns in the past 12 months), compared with question, “Which of the following customer data attributes has your company used to segment audiences for e-mail marketing campaigns in the past six months?”
Source: JupiterResearch Executive Survey (11/04), n = 649 (US only)
Conversion Rate:
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Base Segments - Example
Onl
ine
Buy
ers • Online purchase
past XX months• Open or Click
Activity in past XX months
In-S
tore
Buy
ers • History of tracked
in-store purchase• No history of
online purchase• Open or Click
Activity in past XX months
Eng
aged • No purchase
history• Open or Click
Activity in past XX months
Une
ngag
ed • No email activity in past XX months
New
Sub
scrib
ers • First 30 Days in
program• Can be bumped
into buyer segments prior to 30 days
A Note About Preference Centers
Good:
• Simple path to segmentation
• Provide interest data at the time of registration
Bad:
• Preferences change/evolve
• Subscribers rarely update
• Establish commitment to only send on established topics (regardless of relevance)
Net: Invest in figuring out what will be relevant!
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Message Types• Bulk Mailings
– Promotions
– Newsletters
– Statements
• Lifecycle Messages– Welcome streams
– Lifestage streams (e.g., pregnancy, wedding)
– Reactivation streams
• Triggered Messages– Up-sell messages
– Cross-sell messages
– Confirmations
– Ratings and reviews
– Watch lists
– Out-of-stock
– News alerts
– Local events
– Anniversary, Birthday
– More…
Not just segmentation….
1. SEGMENTATION: identify logical groups to which the same basic messages are likely to resonate.
1. TARGETING: align messaging to the engagement patterns of each segment.
1. PERSONALIZATION: add the finishing touches that make the communication feel personal.
Buyers vs. non-buyers
New vs. old customers
Kids vs. no kids
Deal vs. information-based
Lifecycle programs
Best time to send
Local store
Products of interest
Gender
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Personalization
Members of a segment all get an email based on the same template
Personalization attributes can change all of the content, but not the structure of the email
The next step is populating that template with content that shows you know the customer
The BEST personalization is based on activities tracked at
the INDIVIDUAL level!
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Email metrics(opens, clicks)
Site activity(visits, shopping cart)
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Purchases
Coupon redemptions
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Targeting Browse Behavior
• Amazon* Based on recent browsing behavior (past month)
• Featured products and time-based offer x% off until XX/XX
• Directly calls out that email was triggered by browsing the site
Personalized content must be value-driven
– Where they live?
– What they do?
– What they like?
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Do this…
Not This…
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Personalization That Works
Email doesn’t work without a good content strategy.
Content Inventory
Web resources– Content site– Blogs– Videos– Online Coupons
Traditional resources– Print Advertising– Coupons– Circulars– Press Releases– Events
User Generated Content– Ratings & Reviews– Social Media Mentions
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Plan Ahead…
Move from content creation to curation
– Adapting existing content is easier than creating new content!
The right email template will save time
– What formats will you regularly support?
– What content blocks can you regularly populate?
Which takes more time?
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6 Steps to Scalable, Relevant Email
1. Identify your key segments2. Identify core messaging products3. Develop messaging grid that aligns segments with
target messaging objectives4. Identify activity-based personalization attributes5. Develop flexible templates and automate the
automatable6. Devote a percentage of resources to develop
triggered programs (“set it and forget it”)
Using the Data:Personas
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Personas: What & Why?
How?
• Real People
• Compelling Narrative
• Key Attributes
• Enable Action
• Usable Format
• Focused on Differentiators
• Not Prescriptive
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Using the Data:Integration
Devices Drive Behavior
Banking? Buying? Reading? Creating?
Interacting? Socializing?
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Social Data Value Scale
Listening
Activity
Aggregate
Membership
Interest
Affinity
Influence
Behavior
Community
Copyright © 2011 by Teradata Corporation
Five Factors in Your Integrated & Cross Channel Opportunity
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Making Synergy Work For You
1. Never assume permission.
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Cross Channel Opportunity
2. Audience profile
3. Brand Affinity
4. Sales Channel Preference
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Cross Channel Opportunity
5. Nurture at customer life stage.
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Pre-Event
• Email• SMS• Twitter
Monitor
• Influencers• Channel
preference• Non
responders
Engage
• Thank influencers
• Update preferences
Day of Event
• Celebrate influencers
• Monitor multi-channel impact
Post Event
• Triggered emails
• Profile responders
Optimize
• Segment-ation
• Testing• Learning• Update
preferences
Integrating Digital & Social Data
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Blueprint for Integrated Marketing Readiness Assessment
1. Talent & Knowledge Marketing Ops Technical/DBA Creative
2. Systems Database structure
Location of data
3. Strategy for Actionable Data Which data?
Why data?
How data?
Who owns what data?
Sharing the Data
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Why?
Essential Reports
• Response data (opens/renders, clicks, conversions) – How much did we make?
• Bounces – How clean is our list?
• Spam complaints/Unsubscribes – Was our message welcome?
• Inbox placement – What’s our sender reptuation?
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Dashboards
• 50,000 foot view
• Trends/Benchmarks
• Metrics tied directly to business objectives
• Produced & syndicated regularly
• Bonus: Cross-channel
Analyzing the Data: Response Analysis
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Reports that Matter
• Tied to business goals– Are we making money?
– Is the sales team happy?
• Enable decision making– What can I change to improve results?
– What products should I lead with this week?
– Am I seeing a shift in customer preference or behavior?
• Timed to business need
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Are Opens & Clicks Valuable?
Allow Customers to tell you…
Self Reported Demographic
1.0%
0.1%
Conversion Based on Targeting
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Mining for Behavioral Data
Test1 Test2 Test3
0.36%
2.40%
0.54%
0.08%
0.35%
0.05%
Response RatesBehavioral Targeting Demographic
Analyzing the Data: Deliverability Analysis
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Deliverability?
• Rendering reports?
• Bounces? Codes?
• Low response?
• SPAM Traps?
• Blacklists, etc.?
• Seeded inbox rates?
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Deliverability Insights
• Are our subscribers fatigued?– Which subscribers are engaged?
– The impact of frequency.
• Are certain sources spammy?
• This message type is less welcome.
• Formatting takes a toll.
• Risk assessment: Active subscribers are most active complainers.
Analyzing the Data: Lead Scoring
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Models for Lead Scoring
Lead Scoring Starting Point: Explicit & Implicit Data
Activity Score
Job Title 1
Company Size 1
Industry 1
Whitepaper Download 1
Web page visit 1
Call with Inside Sales 1
Live Event Reg 1
Live Event Attend 1
Webinar 1
Email Subscription 1
Email Opens/Clicks 1
Email Conversion 1
Explicit = Provided by Prospect
Implicit = Behavior
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Simple Lead Scoring
Activity Numeric Score
Whitepaper 5
Webcast 10
Live Event 20
Contact downloads 2 whitepapers, attends 1 webcast and goes to a Live Event.
Lead Scoring = 5+5+10+20 = 40
Advanced Lead Scoring
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Who’s Doing Lead Scoring
Keys to Successful Lead Scoring
Goals Actions Processes
Increaseconversion by segment
Increase footprint and market development
Align Sales &Marketing Teams
Improve quality of leads passed to sales team or to ecommerce site
Prioritize leads based on propensity
Ensure all leads are followed up in a timely and appropriate manner
Marketing is accountable
Sales is accountable
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Setting Priorities
Before You Jump….
• Customer benefit?• Email vs. SMS & Social• Goal: Reach, synergy or
real time optimization• Single database?• Self reported vs.
behavioral?• Team skills and talents?
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10-15%
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Query customers, not data.
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Readily Available Opportunities
Data Source Connect Purpose Measure
Customer Purchase data
Transaction engine
To web content engine and email program
Increase revenue
Sales
Web Session Length
Web tracking (Google Analytics, Omniture)
To lead nurturing campaigns
Improve relevancy and timing
Response rates by segment
Visitor Tracking Advanced Web Tracking (Omniture)
To web content engine and email program
Improve relevancy
Conversion to the next step
Social Influence - Counts
Services (Twitter, Facebook, Linked IN)
To email program
Attribution and Impact of email
Rise in social activity
Social Influence – Affinity
Social listening tools (Radian6, Flowtown)
To all outbound communi-cations
Speak the language of a community
Response rates by content type
Lessons Learned
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Data is Your Friend
Just get started!
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Focus on the Business
Lather, Rinse & Repeat
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Don’t try to Boil the Ocean
Questions?
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Data Driven Digital Dialog Checklist
Just get started!
Establish a baseline for results
Identify 2-3 key data attributes that speak to customer experience
Start with a small test
Forecast the success across all efforts
Make a business case for improving relevancy
Recruit internal champions (& external support)
Set your own milestones & measurements
Embark on Proof of Concept stage
Celebrate results
Expand to other business units/message types
Reset expectations and baselines
Land & expand
Keep testing for higher ROI
[email protected] or @StephanieSAM
Thank you!
• [email protected] or @OtherEinstein
• [email protected] or @stephanieSAM