the mergence of marketing and emarketing - dan rose

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Prepared by:

Dan Rose

Is this good Direct Marketing?

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We’ll build an ecommerce site!

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Direct Marketing….effective?

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Straight to the point

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Prepared by:

Dan Rose

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Who are we?

Precision Dialogue is a leading online direct marketing company in the region.

We develop and help manage our client’s e-channels- Build community- Cross sell product- Retain client base- Attract profitable new customers or members

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Clients

http://www.kopf.net/

http://www.key.com/;$sessionid$Z5F3BUNY3FKFDHCNII2SFFA

https://cose.org/index.asp

http://www.kaiserpermanente.org/kpweb/splashpage.do

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What is Direct Marketing?

Direct Marketing Strategy- Any marketing communication intended to drive a

response and/or behavior on the part of the intended, and specifically targeted individual

Database Marketing- The organization of data that can be analyzed,

sorted and used to drive relevant messages to specific targets

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Why Direct Marketing?

Communication clutter is at an all time high

Breaking through the clutter is job 1

Impact and relevancy are the two proven methods to break through and drive behavior

Target marketing is the primary method used to deliver impactful and relevant messages that achieve these twin goals

It costs less per sale than advertising and PR plus is measurable and controllable by you

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Mass Targeted

Competitive Attention Selective Attention

Breadth Depth

Remember Respond

Impression Decision

Pay for Everyone Pay for Targets

General Advertising and Direct Marketing A Simple Comparison

Advertising Direct Marketing

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Emarketing done right

Campaigns that results in dialogue between two parties.Both parties have granted permission to each other and thus the content is precisely focused and of value to both.User behavior is tracked and future communication is refined.

Yesterday: Today:

Marketer Customer

Customer Marketer

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Fundamental Marketing shift

From…“I have a mass of customers.”

To…“I have a personal relationship.”

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Direct Marketing – What has the biggest impact on lift?

1. Targeting, Segmentation and List – “who”- 50-75%

2. Offer or “the deal?”- 20-40%

3. Sequence & Frequency of Contact – “how”- 20-40%

4. Creative – “what and how you say it”- 10-20%

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List/Target Selection Factors

Consumer Lists- Age- Income- Gender- Marital Status- Homeowner- Dwelling Type (home or

apartment)- Mail order buying (by

product type)- Interests- Presence of children- Geographical (zip, SCF,

county, state, carrier route)

Business Lists- SIC (Standard Industrial

Classification)- Employee Size- Annual Sales/Revenue- Title- Any other information

captured on subscription form (publications)

- Corporate linkage information

- # of years in business- Geographical (zip, SCF,

county, state)- Credit information

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Behind the Scenes of E-Direct Marketing

Intelligence/ Research Marketing

Database/AnalyticalMarketing

Strategic/Creative

Marketing

Response/Relationship

Marketing

Campaign Objectives

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Market Competitive Analysis - ‘the right benefits”Market Competitive Analysis - ‘the right benefits”

True Capabilities Analysis - ‘the right context”True Capabilities Analysis - ‘the right context”

Customer Analysis - ‘the right behavior”Customer Analysis - ‘the right behavior”

Positioning & Differentiating - ‘the right strategy”Positioning & Differentiating - ‘the right strategy”

Unique Selling Proposition - ‘the right offer”Unique Selling Proposition - ‘the right offer”

Creative Marketing Communications -‘the right message”Creative Marketing Communications -‘the right message”

Direct Marketing Channels –The Key LinkDirect Marketing Channels –The Key Link

Fulfillment & Service - ‘the right satisfaction”Fulfillment & Service - ‘the right satisfaction”

Measurement & Assessment - ‘the right performance”Measurement & Assessment - ‘the right performance”

Adaptation and Innovation - ‘the right change”Adaptation and Innovation - ‘the right change”

Segmenting & Targeting - ‘the right market”Segmenting & Targeting - ‘the right market”

Datamining & Profiling - ‘the right information”Datamining & Profiling - ‘the right information”

Intelligence/ResearchMarketing


Strategic/Creative

Marketing


Marketing

Direct M

arketing

Pro

cess

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Do we know what our intended customer wants or needs?

What benefits do they seek? What is their pain?

There are no average customers

The best way to find out? ASK!

Implicit vs. Explicit information

Customer Analysis - “the right behavior”Customer Analysis - “the right behavior”

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Internal vs. external analysis- What is the market doing- What are you good at doing yourself?

Reactive vs. Proactive- From Good to Great/Fox and Hedgehog

Ask and audit…what do you truly do best? And, what are you most profitable doing?

What you think you do best vs. what your customer/prospect thinks may be two different things entirely.

True Capabilities Analysis - ‘the right context”

True Capabilities Analysis - ‘the right context”

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Traditional SWOT? Yes…as a place to start

Ask the questions:- Who are our competitors? Beyond the obvious? - What are they doing and can we do it better than

them? Or, less expensively than them?

Most of us will never recognize an opportunity until it goes to work in our competitor’s business

Competitors are harder to recognize now…in part, because of direct marketing.

Market Competitive Analysis - ‘the right benefits”

Market Competitive Analysis - ‘the right benefits”

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Strategic/Creative

Marketing


Marketing

Direct M

arketing

Pro

cess

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Know your audience takes on a new meaning

Buying 3rd party data to overlay

Mounds of data…are just mounds of data. Convert it to useful information

Analyze and interpret to make is actionable and useful to you

Datamining & Profiling - ‘the right information”

Datamining & Profiling - ‘the right information”

List development is tricky

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Mom was right…not everybody will like you no matter what you do

Ideal of 1:1 is not fully realized just yet....Segmentation is the place to start

Continue sub segments until you have clear and distinguishable differences in your audience.

Segments allow you to make different offers, provide different content, test, etc

Segmenting & Targeting - ‘the right market”

Segmenting & Targeting - ‘the right market”

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Segmentation > Relevant Content

Dependant

Customer segment

Age? Household breadwinner?

Employed? Children at home?

Independent adult

New family

Established family

Mature family

No

Yes

<34

>35

No

Yes

No

Yes

No

YesNo

Yes

No

Yes

No

YesNo

Yes

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Wikipedia: “A product's position is how potential buyers see the product relative to the market“

Niche thyself. Everyone here can narrow their focus. Specialize and reduce your competition

Employ the ABC’s of positioning. - Attributes- Benefits- Claims

Positioning & Differentiating - ‘the right strategy”

Positioning & Differentiating - ‘the right strategy”

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Strategic/Creative

Marketing


Marketing

Direct M

arketing

Pro

cess

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What is your value equation? - The unique delivery of a particular value

that the targeted audience in fact needs.- Value is always defined by the customer or

recipient of the message.

Take the position of your customer or prospect and ask the question: “What’s in it for me?” and “Why do I care?”

Unique Selling Proposition - ‘the right offer”

Unique Selling Proposition - ‘the right offer”

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Segmentation and targeting strategies mean we have more than “one” right message.

Consider the single salient benefit or selling point and lead with this concise point to each segment.

Because you can, doesn’t mean you should. Beware of too much “flash” in using technology or a channel.

Specific tactical suggestions available on our website.

Creative Marketing Communications -‘the right message”

Creative Marketing Communications -‘the right message”

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The premise: Remove all barriers between the customer and the provider….control moving from provider to customer.

The Traditional: - Direct Mail- Telephone- Direct Sales

The New- Email- Targeted Web/blogging/podcasts/etc. - SEM- Mobile


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Strategic/Creative

Marketing


Marketing

Direct M

arketing

Pro

cess

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Fulfillment and service models built to follow your segmentation and customer targeting strategies

Converting valued customers into loyal/repeat customers

Building brand loyalty and reducing defection

Cross selling and up-selling

Referral programs and incenting both parties

This is a relentless ongoing process

Fulfillment & Service - ‘the right satisfaction”

Fulfillment & Service - ‘the right satisfaction”

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“Half of my advertising is wasted; I just don’t know which half.”

-- John Wanamaker, retail pioneer in the late 1800’s

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A key value in online direct marketing…immediate and ongoing feedback

What are you measuring? Why?

Timely review of data and a tracking process

Update metrics of measurement

A/B testing and optimize

Periodic surveying of your customer and prospect base is relatively easy and affordable

Measurement & Assessment - ‘the right performance”

Measurement & Assessment - ‘the right performance”

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Launch a campaign

Monitor in real-time

React to results in real-time

Real-time Reporting and AdaptationReal-time Reporting and Adaptation

Test and adjust….don’t give up

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Emarketing allows us to see results quickly and adjust future campaigns easily

Act upon the ongoing results

Change offers, content, graphics, headers, signatures, etc to continually optimize the ongoing campaigns

Challenge your staff and yourself to “fix” declining results by tweaking the efforts before overhauling the entire campaign

Adaptation and Innovation - ‘the right change”

Adaptation and Innovation - ‘the right change”

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Bonus Slides – Tactical Suggestions

Available for download at

Precisiondialogue.com

The true Oracle

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Interact and Customize: Walk

B: Non Health

A: 1-9 employee

C: Renewal up

Sample Customer Segments Sample Content Categories

Non Health :B

1-9 employee :A

Renewal up :C

Custom Communication•Best guess reasoning

•Limited variations

•Pre-defined matching

Wrong content files

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Interact and Customize: Run

Single Customer

Mass Customization•Fact based reasoning

•Unlimited variations

•Smart matching

Content Categories

Predictive Interest

Customer Profile

Dynamic Assembly

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Interact and Customize: RunOne-to-one

Mass Personalization•Fact based reasoning

•Unlimited variations

•Smart matching

…by the thousands

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Step 1Link to

One Form

Step 1Link to

One Form

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Step 2Manage

Campaign

Step 2Manage

Campaign

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Step 3Launch

Campaign

Step 3Launch

Campaign

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Full CircleTrack Results

Full CircleTrack Results

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Dynamic Email content

•Variable Data•More relevant•Higher open rates•Higher Click troughs

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• Web Management Tool

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ATOM

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Questions?

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A Fail Safe Campaign“Take a brownie break”

Call first to confirm the contact and title Send a “package” with 4 brownies The enclosed letter starts with

“Take a brownie break on us, and while you’re doing so, you might like to read my letter”

Call within 3 days of receipt Cash the check

the mergence of marketing and emarketing - dan rose

Economy & Finance

direct marketing strategy

good direct marketing

right campaigns

fundamental marketing

right performance adaptation

market competitive analysis

external analysis

intended customer