Direct Marketing Project on Multichannel Marketing World

Description
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

Copyright 2010 Jacobs & Clevenger

How Direct Marketing Applies in a
Multichannel Marketing World
Ron Jacobs
President, Jacobs & Clevenger
Co-Author, Successful Direct Marketing Methods
Sponsor, Ron Jacobs & Bob Stone Multichannel Marketing
Communications Certificate Program, DePaul University

Copyright 2010 Jacobs & Clevenger
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

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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

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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

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All marketing has become direct marketing
Direct 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

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Multichannel customer behavior is the new normal
Copyright 2010 Jacobs & Clevenger
Today, prospects take countless non-
traditional, non linear journeys to
become customers

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

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Multichannel marketing communications requires a
new strategy framework

Define the
Multichannel
Goal

How will
multichannel:

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

Develop the
Multichannel
Strategy

How will each
channel
fulfill 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 Marketing
Investment

Where does the
organization:

•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
Evaluate
Attributes
Information
Search
Behavioral Hourglass
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Social
marketing
Account
planning
Technologist
CRM
Design
Copy
writing
Channel
planning
SEO/SEM
Account
management
Analytics
Marketing communications agencies are transforming
as well: The new agency organization chart
Project
management

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Social
marketing
Account
planning
CRM
Design
Copy
writing
Channel
planning
SEO/SEM
Account
management
Analytics
Marketing communications agencies are transforming
as well: The new agency idea team
Project
management

The new agency
idea team
combines
account, creative
& technology
Technologist
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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
contribution
2. Marketing
outcomes
3. Customer
satisfaction
4. Customer
behavior
5. Channel
promotion
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

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Social Marketing
Extending your brand and business through
social engagement

Copyright 2010 Jacobs & Clevenger
Social commentary on Social Marketing…
Future Man goes back to the 1960s
AND “UPLOAD”
PICTURES OF THEIR
BREAKFASTS TO A
“FACEBOOK”
AND OTHER
PEOPLE WILL LOOK
AT THE BREAKFASTS
AND MAKE
COMMENTS
SORRY TO BURST
YOUR BUBBLE, DUDES.
BUT YOU ASKED.
YES, THAT’S
THE FUTURE!
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?
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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
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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

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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 3
rd
most populated in the world,
behind China & India
• The number of Articles on Wikipedia
– 16 Million

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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
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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?
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Social Channels work together, but play their own
roles
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Paid Media
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Crispin Porter + Bogusky’s Social Home Page
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Owned Media … A Brand Channel
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Kogi BBQ… Twitter for traffic building and CRM

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Kogi BBQ… Twitter for traffic building and CRM
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Earned Media… Angie’s List
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Earned Media… Angie’s List
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Multichannel conversion, testing &
attribution

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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. B.
C.
D.
Remarketing increases conversions by targeting
users that have already visited your website
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Remarketing (AKA Retargeting) example

Copyright 2010 Jacobs & Clevenger
Remarketing (AKA Retargeting) example

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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
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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
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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
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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
3
6
Variables (3x3x3x3x3x3) = 729 Tests

Copyright 2010 Jacobs & Clevenger
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
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Last ad standard
Atlas Solutions, Microsoft Advertising
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Engagement Mapping across channels
Atlas Solutions, Microsoft Advertising
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Multichannel Marketing Best Practices

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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

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Multichannel marketing best practices
• 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.
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Multichannel marketing best practices
• 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

Copyright 2010 Jacobs & Clevenger
Multichannel marketing best practices
• 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

Copyright 2010 Jacobs & Clevenger
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!!
Copyright 2010 Jacobs & Clevenger
Copyright 2010 Jacobs & Clevenger
Questions & Answers

Questions?

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