Webcast: Closed Loop Marketing

In this Aquent webcast you will learn:

•The definition of closed loop marketing

•The value of implementing a closed loop marketing process

•How to develop your own closed loop process

•How to overcome common challenges

Aquent is the global marketing and design staffing company.

We’re subject matter specialists, tuned-in to our global community of marketing and design experts.

We help individuals and organizations increase their marketing potential through flexible staffing solutions and customized consulting services.

Our agents are focused on a single marketing or design discipline ensuring both talent and clients a dedicated resource that speaks their language.

We’re agents without borders – reaching all corners of the earth through technology, local touch points, and international presence.

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Closed Loop Marketing Tracking success for better results

December 17, 2009

Page 4

agenda

•situation, need & solution

•what is closed loop marketing?

•why use it?

•examples

•getting started & moving forward

•challenges & tips

•summary

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situation & need

• increased expectations around results

• budget & resource cuts

• tougher competition

• stressful, fast work environment

• need for an efficient way to understand– how we are doing?– what is working?– what is not working?

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solution

Use Closed Loop Marketing:

a consistent process to track & improve marketing spend

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scientific method

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closed loop marketing: our simple model

design

developmeasure

execute

communication ● documentation

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Step1: design

• gather insight & research

• identify campaign objectives

• define campaign specifics

• develop plan to build campaign

• create measurement plan• what will be measured?• what is our success criteria (relative and/or absolute)?• is it aligned with campaign & business objectives?• who is measuring it?• how and when will it be measured?• can we access the & resources we need?• what is the communication process?

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Step 2: develop

• creative/collateral

• sign-offs

• identify target

• ensure measurement plan compliance– tracking mechanism (e.g. recording when user clicks on URL in email)– matching logic (e.g. house holding logic)– target & segment documentation– other items in the measurement plan

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Step 3: execute

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step 4: measure

• execute measurement plan

• communicate findings

champion challenger controltarget 100,000 10,000 10,000 takers 3,168 289 264take rate 3.2% 2.9% 2.6%

total sales 321,108$ 38,980$ 25,484$ sales/taker 101.36$ 134.88$ 96.53$

sales/target 3.21$ 3.90$ 2.55$ camp cost/target $0.53 $0.78 $0.00net/target $2.68 $3.12 $2.55

response over time

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champion challenger control

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Why do it?

• set method brings focus

• knowing what needs done by whom and when enables efficiency

• documented process facilitates effective communication

• driving business results with insight & facts

• role model of rigor & process can be applied to other areas like strategic planning, sales staff development, & hiring

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Example: fictional account of actual B&N email campaign

* Actual B&N email creative but fictional account of the campaign. I have not worked with B&N nor do I have access to actual campaign results.

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Step1: design

Measurement Plan•Segments: treat @ 450,000

ctrl @ 25,000•Success criteria: treat net sales/target must exceed ctrl by 15% by the end of the sale•Id buyers with membership number•Paula does analysis & emails insight by 12/9•Kim reports results at 12/10 meeting•Additional insight requested:

•buy & sales rates by target by:•day•segment•region•state•tenure•RFM segment

•Other details like data sources & metric calculations are on the intranet at…..

Campaign Design•Objective: increase sales to reward members by driving them to BN online or retail stores with email creative communicating our 12/3-6 sale

•Campaign team includes…

•Agency team includes….

•Creative details….

•Project plan ….

•Sign off comes from…

•Other details….

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Step 2: develop

•management of…•developing creative/collateral•sign-offs•identifying target and pulling lists•other items

•ensure measurement plan compliance•Paula is on vacation so Joe will take her spot•Sales information is available by membership id on a daily basis from the xyz database. All data that we need will be available by 12/7

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Step 3: execute

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step 4: measure

• execute measurement plan

• communicate findings

response over time

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Treat Control

Treat Control Variancetarget 450,000 25,000 425,000 takers 2,845 96 2,749 take rate 0.6% 0.4% 64.6%

total sales 183,275$ 4,213$ 179,061$ sales/taker 64.42$ 43.89$ 46.8%

sales/target 0.41$ 0.17$ 141.7%camp cost/target 0.21$ -$ net/target $0.20 $0.17 18.2%

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getting started

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top challenges: data

• poor quality, timeliness, or access

• examples: bad matching logic and slow access

• impacts analysis and perception of the quality and value

• usually no short cuts – grab a shovel and start digging

• seek allies, work smart to resolve (e.g. prioritize)

• work with what you have (e.g. use it ‘directionally’)

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top challenges: lack of acceptance

• understand what is not being accepted– value of the loop? show benefits– method or quality? pull back the covers– not enough time or resources to complete it? show it in action– not sure but it involves ego make them look like all-stars

• set plan to build acceptance– find allies or sponsors. Do they influence?– alleviate people’s pain points – stress? poor performance?– communicate and be transparent– do you have enough acceptance?

• no acceptance but you believe: do it for yourself

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Tips

• first thing: do you understand & believe?

• start small & simple. Evolve from there

• focus on the basics no matter what level (e.g. sound measurement plan)

• beat the drum: communicate and be transparent to start & grow

• build acceptance with tools likes sponsors, business cases, and rigor

• have routine ‘learning loop’ communications and meetings

• it’s all about people