Crossing the Line: Unlocking the Value of Online Relationships

Crossing the Line:Unlocking the Value of Online Relationships

Michael Weston

Managing Director, Silverpop (EMEA)

Internet World – 1st May 2008

(Stand E555)

2 Internet World 2008 – Stand E555

What’s this talk about?

Lines above / below / through / across ... redefine the line

Crunch what’s happening to your marketing budget?

Habit break the re-acquisition cycle

The Seven Steps tactics to recession-proof your marketing

Image: Addiction by Trond Elling Haveland, Norway


Drawing the line – 20th Century model

Advertising

Direct Marketing

TV

Posters

Print

Radio

Direct Mail

Sales Promotion

Broadcast

Coupons

Exhibitions

Telesales Personalised

Cinema


The 21st Century model: crossing the line

Advertising

Direct Marketing

Acquisition Conversion Retention

Search

Affiliate Programme

Banners

Email

RSS

Mobile marketing

Broadcast Personalised

Loyalty schemesSponsorship

5

CrunchCrunch


What’s happening to your marketing budget?


HabitHabit


Breaking the habit

“We can no longer rely on ‘newbies’ – i.e. market growth – to grow our business. We’ve got to make sure the people we already know come back for more.”

a leading UK internet retailer, July 2007

“I’m fed up with paying Coupon Sites to bring back people who are already customers, at a discount... and then claim 30% of the sale!”

Another leading UK internet retailer, April 2008


7 Steps7 Steps


The Seven Step Programme – Step One

1. ROI: Identify which measurements matter

Total sales revenue generated by marketing

Incremental sales revenue from existingcustomers generated by marketing

Conversion rates

Time to conversion

Advocacy (i.e. Customer-get-Customer etc)

Digital budgets are forecast to stay the same or grow for 60% of European

marketers in the current year thanks to trackable ROI, immediacy of return

and the ability to test (and implement) quickly.

Digital budgets are forecast to stay the same or grow for 60% of European

marketers in the current year thanks to trackable ROI, immediacy of return

and the ability to test (and implement) quickly.


The Seven Step Programme – Step Two

2. Put your customer first

• Establish (two-way) communicationwith your customers

• listen to their feedback

• communicate on their timetable

• segment and target

The US DMA shows an ROI of $57.25 for every $1 spent on

email marketing... more than double the ROI more than double the ROI of other digital

marketing channels.

The US DMA shows an ROI of $57.25 for every $1 spent on

email marketing... more than double the ROI more than double the ROI of other digital

marketing channels.


The Seven Step Programme – Step Three

3. Gather actionable data... and use it!

Emails that include Web analytics data can generate nine times more revenue nine times more revenue

than one-size-fits-all broadcast messages. Better still, much of the work

required to do this can be automated.

Emails that include Web analytics data can generate nine times more revenue nine times more revenue

than one-size-fits-all broadcast messages. Better still, much of the work

required to do this can be automated.

Behaviour / Data Targeted Offer

Last product purchased Promotion on complementary item

Amount purchased in last 90 days Target moderate purchasers to buy more

Amount purchased last year Offer % discount for increasing this year’s spend

Amount purchased to date Loyalty incentive to best customers

Date of last web visit Update of new items when available

Date of last customer support visit Query quality of service, offer more help/incentive to buy

Page most visited Encourage purchase of specific items on that page

Last time arrived from email click through Improve relevance by repeating similar call to action

Demographics Targeted offers such as store openings, anniversary offers

Customer satisfaction Enable forwarding of offers to friends & family; compensation


The Seven Step Programme – Step Four

4. Co-ordinate messaging across channels

Your customers will not view your TV, press or direct mail activity in isolation from your online activity. Numerous case studies reinforce the power of cross-media messaging• e.g. DABS show heightened purchase from customers

who receive both email and direct mailed catalogues

Tying data together from attributable offline activity with all your online channels will deliver a clearer, more targetable picture of your customers

Forrester March 2007: email customers spend more online than

non-email customers. They buy on impulse from email promotions.

They forward offers to friends and family.

Forrester March 2007: email customers spend more online than

non-email customers. They buy on impulse from email promotions.

They forward offers to friends and family.


The Seven Step Programme – Step Five

5. Prioritise email as your marketing hub

Three quarters of marketers who integrate email with other direct activity show improved campaign results

85% of marketers who combine Web analytics data to power targeted life cycle emails show a heightened return on investment


The Seven Step Programme – Step

6. Use quick test-and-implement across all your marketing

Test your assumptions

• does a visit to Support necessarilymean a dissatisfied customer?

• which offers particularly resonatewell with which types of customer?

• does time of day/day of week matter?

• can you improve results by following upcustomers who opened but didn’t purchase?


The Seven Step Programme – Step Seven

7. Feedback is a fact of life: embrace it

Your customers don’t see your emails or Web site in isolation...

... so don’t isolate their responses in silos!• Track everything and build a 360o picture

email clicks and opens, post-click analysis,Web analytics, call centre feedback, purchase history...

• Forward to a friend make it easy and measure it

• Blogs, Social network sites

• Customer reviews on your website or in emails

* - Source: Bazaarvoice case study, August 2007

A Bazaarvoice case study in August 2007 showed an increase in increase in

conversion rates of 35.7% conversion rates of 35.7% for the same products after introducing

customer reviews on the Web site*

A Bazaarvoice case study in August 2007 showed an increase in increase in

conversion rates of 35.7% conversion rates of 35.7% for the same products after introducing

customer reviews on the Web site*


When the going gets tough...

When marketing budgets come under close examination, focus shifts to what can be shown to work

Digital marketing is fast, measurable, effective and improvable via testing

Improving conversions to sale will counter high cost of acquisition

Keeping the customers you have – and selling them more things more often – will make your budgets deliver more value

If you do better holding on to your customers it’s harder – and more expensive – for your competitors to prise them away from you


Silverpop serves market leaders across all sectors

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Any questions?

BLOG: http://www.e-consultancy.com/news-blog/author_44081/michael-weston.html

WHITE PAPERS AND STUDIES: http://www.silverpop.com/practices/index.html

Thank you

Crossing the Line: Unlocking the Value of Online Relationships

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