Online Offline Fusion Marketing Recipes

Based on the Affinium NetInsightTM Web Analytics Solution &the rest of the Affinium® Enterprise Marketing Management Suite

Online-OfflineFusion Marketing

Recipes

No doubt, your organization is conducting marketing activities and customer communications over multiple channels including online and offline media. Yet, it is one thing for you to buy advertising on multiple channels; it is quite another to fuse those marketing activities together in an intelligent way so to maximize your response and conversion rates.

To the least, marketers want to measure the aggregated results from online and offline marketing across all channels so that they can understand what investments work well and which can be improved. Taking measurements beyond the aggregated level down to the level of the individual customer, marketers gain a competitive advantage through the ability to target timely and relevant communications to individual customers. For either of these goals, this simple guide summarizes many recipes for online-offline fusion marketing that make heavy use of analytics for turning insight into results.

Online Offline

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Part 1: Online-Offline Fusion Metrics For Response AttributionRecipes for measuring the responses to your marketing initiatives across a mix of online and offline channels. You can take measurements at an aggregated level or at a 1:1 customer level depending on how you wish to apply the insight for taking action.

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Coming Soon:

Part 2: Online-Offline Customer Acquisition Recipes for optimizing acquisition-marketing efforts across a mix of online and offline channels with the help of fusion metrics

Part 3: Online-Offline Conversion OptimizationRecipes for optimizing the process of converting prospects to customers across a mix of online and offline channels with the help of fusion metrics

Part 4: Online-Offline Customer Service OptimizationRecipes for optimizing the delivery of customer services across a mix of online and offline channels with the help of fusion metrics

Part 5: Online-Offline Loyalty & Relationship BuildingRecipes for building customer loyalty and relationships across a mix of online and offline channels with the help of fusion metrics

Unica Corporation, Internet Marketing Solutions Group Phone: 401-295-4809 Web: www.unica.comE-mail: [email protected] Toll Free: 1-800-407-3570 Copyright © 2007

Online-Offline Fusion Metrics & Response Attribution

Online Lift

Offline Lift

1:1 Online Conversions

1:1 Offline Conversions, b2c

1:1 Offline Conversions, b2b

1:1 ActionableMarketing Profile

Online LiftMeasure the amount of lift in total online activity as a result of your mass advertising initiatives across multiple channels

Your Business GoalSo, your company just branded the local football stadium in your name and covered it with your advertising posters and logos. Was the investment worthwhile? Mass advertising whether outdoors or in broadcast media, while on the decline, is still commanding the largest portion of worldwide advertising spend. True, mass advertising is suffering as consumers are increasingly in charge of what they listen to and when. But simultaneously, new media have sprung up including online video inserts, in-game advertising, and product placements.

A significant portion of the response to these marketing initiatives is occurring online via your web site. However, there is no clickthrough event that traditional web analytics could rely on. Measuring the online lift with smarter web analytics helps not just with estimating ROI but more importantly optimizing it over time through a continuous cycle of test and improvement. Moreover, you can observe how consumers are interacting with your messaging online and apply your insights back to your future marketing messages across all channels.

Advertisement Types That You Can MeasureOffline Advertising

o Ads on TV, radio, print, billboardo Product placement, in-game advertising

Online Advertisingo Advertising banners and rich media ads even

if there is no clickthrough (not even a cookie)o Online game advertising, video inserts, WOM,

blogs and wikis even if there is no clickthrough

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Lift?Trigger site visits

Example: In-Train Advertising

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Offline Lift




Online Lift (cont’d)

Response Types That You Can MeasureOnline Responses

o Engagement: Web site visits with anonymous but at least some attributable activityo Conversions: Web site conversions, e.g. registrations, subscriptions, purchases, and

permissions granted for further marketing communications

How Can You Measure?This recipe is for measuring online lift using aggregate information rather than taking the deeper level approach of 1:1 visitor level data integration. For 1:1 approaches, see the other recipes. With this recipe, your approach to measuring will be to design your ads or WOM such that they trigger unique behavior the lift of which can be measured.

1. The most typical example is to point your audience to unique URLs, web or WAP sites that they will hopefully type into their browsers. For example, as of the writing of this recipe, United Technologies is running broadcast adds driving traffic to utc.com/curious. Earlier, Smirnoff ran a multi-channel campaign driving traffic to unique micro site halfdayoff.co.nz. Anyone visiting these URLs can be attributed back to the ads.

2. Another common approach is to trend your web site activity before your advertising starts and then watch for any sudden lift when your ad campaign hits the airwaves. This approach can be satisfactory only until you have multiple campaigns running in parallel.

Online Lift

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3. Think about wording your ads such that they use unique buzzwords or product names the increased use of which across both search and blogs can be measured via services such as Yahoo! Buzz index, Google Trends, or blog search. For example, Honda is using the fairly unique term “environmentology” in their multi-channel ads. When you type environmentology into Google or Yahoo! search, guess whose web site appears first at the top of all organic search results? Yes, it is Honda’s. As a result, any increased use of the term in blogs and search can be attributed to Honda’s advertisements with some degree of confidence.



Google Trends for a sample keyword

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Offline Lift





Key Metrics & Reportso Lift in Reach, i.e. the percent

increase attributable to the campaign in the number of unique visitors going to the web site

o Lift in Conversions, Sales or Profits, i.e. the percent increase attributable to the campaign in the number of online conversions or volume of sales and profits

o Trend of Campaign related online activity in terms of visits, visitor engagement, conversions or sales.

o True returns attributable to offline advertising

Online Lift

Total visits

Offline Campaign visits,

Offline Campaign visits, length > 2 min.

Offline Campaign visits with conversions

Visits that are not campaign related

Offline Campaign visits

Visits & Conversions Triggered Offline

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How Can You Measure? (cont’d)

4. Consider providing discount codes in your ads that can be redeemed online. Anyone entering the codes can be attributed back to the specific location where they viewed the ad.

5. You may also be able to hold back your offline ads in a particular geographic region that will act as your control group. Geographic web analytics reporting can now reveal how online visitations from all other geographic areas was lifted vs. your control group.



Online response to offline campaign by geo location

Example: In-Train advertising with discount code

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Offline Lift




Challenges & LimitationsThis recipe promises high ROI despite the following limitations

o A portion of respondent that go online in response to your offline advertisement will ignore your unique destination URL or discount codes, etc. thereby appearing seemingly unrelated

o Marketing calendars are often not maintained in suitable accuracy due to the large manual effort involved unless the calendar can be generated automatically from a marketing resource management (MRM) application

Online Lift

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Example of measuring % Lift for a selected Campaign

Will Measurement Be Worth Your Effort?Absolutely, but decide for yourself by weighing your investments vs. expected returns:

Your Investmentso To build unique landing pages or, better yet, unique micro web sites o To come up with unique buzz words for your ads o To grant discounts for specific promotion codeso To maintain a marketing calendar of ongoing campaigns and their attributes

Your Expected Returnso Without increasing your marketing budget you can increase campaign responses and

the resulting business through a continuous cycle of testing, measuring, and keeping ads that work best while experimenting with others. If you improve online conversion rates from 1 to 2 percent your online business doubles. How much additional business would that translate into for your company?



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Offline Lift





Related Unica Productso Affinium NetInsight for web analyticso Affinium Plan for marketing operations

including advertising planning, design, budgeting, automated marketing calendar generation, and much more

Further Readingo The Fairchild Semiconductor

case study shows an example of using Unica’s web analytics solution for attributing online activity to offline advertising

Online Lift

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Example of adding up campaign results from online and offline channels

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Online Lift

Offline LiftMeasure the aggregated lift in offline activity that is attributable to customers’ preceding activity on your web site

Your Business GoalMass advertising, while on the decline, is still commanding the largest portion of world wide advertising spend. True, broadcast advertising via TV, radio, print, catalogs and billboards is suffering as consumers are increasingly in charge of what they listen to and when. But simultaneously, new opportunities have sprung up including online video inserts, in-game advertising, product placements, and word of mouth marketing.

Depending on your industry, a significant portion of the response to all your marketing initiatives is occurring online via your web site even if there is no clickthrough event that traditional web analytics would rely on. Measuring the online lift with more

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Offline Lift

Your Business GoalWhy measure the offline effect of web site activity? Multiple studies have found that, depending on the industry, 60% or more of conversions following online search may happen offline rather than online. Conversely, 22% of offline retail sales are influenced by the web according to the report “The 2006 State of Retailing Online” published by Shop.org and conducted by Forrester Research. Finally, in their book, “Waiting for Your Cat to Bark?” the Eisenberg brothers site the anecdote of a client cutting their paid search program for lack of online conversions, only to find in shock that offline activity went down as a result.

Strategies for measuring your offline returns attributable to visitors’ web activities will rarely capture 100% accurate results. However, the better you can assess your ROI from web site and internet marketing efforts, the better you can manage those efforts. Most importantly, depending on your industry, it may be the only real way in which you can assess for example whether the bid amount on individual pay-per-click keywords is justified. In fact, pay-per-click bid management without taking into account offline returns will most likely lead you to misalign your bids.

Lift?Triggers offline

actionClickthroughs



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Offline Lift

Offline Lift (cont’d)

Response Types That You Can MeasureOffline Responses

o Engagement, partially measurable: After visiting online, visitors may visit your store or browse your catalog without interacting with your employees. This response level can be attributed by comparing online and offline trends similar to the chart below or by conducting tests of shutting down online ads maybe in certain geographic areas .

o Engagement, measurable: After visiting online, visitors browse your store or call in toyour call center interacting with your personnel and revealing clues to them.

o Conversions: After visiting online, visitors complete purchases offline or via call center. .

Advertisement Types That You Can MeasureOnline Advertising

o Visitors may type in the name of your site directly or click through from search (paid and organic) or any kind of online advertising. Visitors may also be referred from affiliates, blogs or social networks. However, in order to collect clues for measuring offline lift, the online sessions need to include at least a certain minimum amount of interaction with your site and offerings.



Example: Historical correlation chart for online-offline activity

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Online Lift

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Offline Lift


How Can You Measure?This recipe is for measuring offline lift without customer data integration for 1:1 attribution. For 1:1 approaches, see the next recipes. The first three strategies below entice offline customers to reveal that they visited online first while the fourth does not depend on this.

o Measure store visits and purchases:o Offer the option to buy online and pick up in your stores. o Offer the option to print (or electronically save) a wish list with the promise that it will

make it faster for customers to receive assistance in the store or via the phone. Think of gift registries as a typical example.

o In both cases, include a code representing the referring source (e.g. the paid keyword) of the online session so that you can collect these codes from the stores later and credit the source with the sales results..

o Measure call call center calls and purchases: o Display unique, toll free telephone numbers in order to attribute all callers to the ad

source. One established variant is pay-per-call advertising offered for example by online yellow pages. Another sophisticated variant available today is the idea of dynamically injecting unique phone numbers into your web site for visitors reaching it from different marketing sources, e.g. groups of paid keywords.

o Offer promotional codeso You can render all of the previously mentioned strategies more reliable by also

offering online visitors a promotional coupon. The coupon could also dynamically encode the referring source for the online session. Small and medium sized businesses such as ski rental shops often make online coupons a permanent offer. In contrast, larger enterprises may offer such coupons temporarily just for the duration of a project for measuring the offline lift attributable to the web site.

o Measure correlation between online and offline visitation volumeso Many manufacturers compare the historical volume of their site activity in one time

period to the volume of offline sales in the following period. Car manufacturers for example find a strong correlation and use it to forecast next periods’ sales based on the current period’s volume of site activity. The approach even works at the product level, e.g. at the level of car models and accessories. See the chart on the previous page as an example for a photocopier manufacturer. This method could however not reveal details such as which paid keyword best fosters offline sales.



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Offline Lift



o Not all customers can be convinced to use the “pick up in store” option, or to take printouts to the store, or to remember to use promotional offers.

o A customer may have multiple sessions online before transitioning the sales cycle offline. The referring source during the initial online session should be credited with the offline lift. Yet, unfortunately, anonymous sessions can only be traced back to the initial visit as long as the visitor does not delete cookies nor switch computers. Based on how frequently cookies are deleted on average, the window of opportunity for accurate results is typically a couple of weeks.

Key Metrics & Reportso Lift in Reach and conversions, i.e. the percent increase in store visits and sales or call

center activity attributable to preceding online sessions.o True returns attributable to online advertisingo Online to offline conversion rates and conversion funnel reports




Your Investmentso Developing a web site that has something of such value to say about your products

that prospects will be inclined to make a printout for taking to the store.o An ability at the stores or in the call center to scan or collect referral source codes from

online printouts. o If discount coupons are offered, they can be regarded as part of your investment.

Your Expected Returnso Increased results from optimizing investments into your web site and internet

advertising by measuring their results and fine tuning ad spend accordingly.o As a highly desirable side effect you may increase your conversion rates from online to

offline by making it easier for customers to transition between channels. The Eisenberg brothers from FutureNow Inc. would refer to this as the idea of “removing friction” in their book “Waiting for your cat to bark”.

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Online Lift

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Offline Lift


Related Unica Productso Affinium NetInsight for web analytics

capturing history of web site sessions including referrals leading up to offline action

o Affinium Plan for offer planning, design, marketing resource management (MRM)

o Affinium Interact for site personalization with unique telephone numbers

Further Readingo The Search Engine Strategies

conference series frequently have a presentation session on the agenda with recommendations for measuring offline lift from online search



Example: Measure the offline results from a coupon that you offer online

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Online Lift

1:1 Online ConversionsAttribute individual customers’ online conversions to preceding offline, direct marketing touch points



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Offline Lift

Your Business GoalNowadays, when you receive an offer via direct mail where do you go for further information? More likely than not, your next step is to go online. As outlined in the recipe “Online Lift”, you can measure your overall online lift from your direct mail effort to help you maximize your conversion rates through continuous testing and improvement of your offers. But when you go the extra mile to take note of responses at the level of each individual direct mail recipient and online customer, you will learn a great deal about each individual’s preferences and behavior. In a web 2.0 Marketing world, only your customer decides when you can reach her and what she will listen to. Unless you only have a single product to offer or you feel that all your customers’ behavior, preferences and tastes are the exact same you will benefit from learning how to address each individual the way that is relevant to them. Otherwise, when you fail to be relevant you lose your permission to market to your customer. In result, your direct mail envelopes most likely land in the trash unopened, while your e-mails go straight to the junk folder, completely unnoticed.

Advertisement Types That You Can MeasureOffline Advertising

o Direct mail or catalogso A sales process started at a call center or in a storeo SMS based campaigns for example via outdoors or in-store offers. An example from

past years are posters at McDonald’s restaurants offering customers a chance to win a discount by way of sending an SMS message and receiving an instant reply.

Online Advertisingo Direct e-mail offers without any hyperlinks in the e-mail, for example popular in the

Finance industry in order to avoid resemblance to Phishing scams,


Customer• visited?• converted?

Personal identifiablesite visits



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Offline Lift


1:1 Online Conversions (cont’d)

Response Types That You Can MeasureOnline Responses

o Engagement, not measurable: Visitor visits the web site but remains anonymous. You can measure the online lift but not identify the individual unless the visitor is already a registered online customer with a unique cookie or login name that is available during the web site visit.

o Engagement, measurable: Visitor visits the web site, is not converted to make a purchase, but reveals their identity by retrieving personal offers through entering personal offer codes on the web site.

o Conversions: Visitor visits the web site, and is converted to make a purchase or complete an information form, thereby volunteering their identity

SMS Responseso A respondent sends an SMS message and thereby reveals their cell phone number

which may allow the marketer to determine their identity if the cell phone number is registered.

How Can You Measure?This recipe is for measuring online conversions of individual direct marketing recipients through 1:1 data integration.

Online Responses



o In your direct mail, e-mail, or sales conversation provide personal discount codes unique to each customer. This is for example common practice with direct mail in the credit card industry. With retailers and travel businesses the same idea is achieved by promoting loyalty card accounts.

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How Can You Measure? (cont’d)o Unica’s campaign analytics offer an incredible amount of flexibility for attributing online

responses back to preceding offers.

Measure both direct and inferred responsesA response where the prospect enters their personal offer code online is called a direct response. If however the buyer makes an online purchase without using their personal offer code, Unica’s campaign analytics will still attribute the action back to the preceding direct mail offer as an inferred response by reconciling recipient and buyer contact information.

Match multiple preceding touch points to the online response and reconcile individuals vs. their households

Flag any level of response



Direct Response

Inferred Responseby matching up contacts

Thank you!

Householdreconciliation

?No!

Opt-out

Thank you!

Thank you!

Best MatchE.g., credit only the first or the most recent offer

Fractional MatchE.g., credit an equal share to multiple preceding offers

Multiple Match Credit all preceding offers 100%

Custom Match Client specific algorithm

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How Can You Measure? (cont’d)SMS Responses

o If the cell phone numbers of your direct marketing recipients are known to you, you can attribute any SMS response within the campaign management system through a simple match against the offer history

o The recipient’s location may also be revealed, for example if the recipient makes an in-store purchase following the SMS message or if the offer includes a geo code that is to be sent via SMS, or (more futuristically) if the cell phone carrier permits geo location.


Your Investmentso A campaign management system that manages personal offer codeso A direct mail, e-mail personalization solution that can insert personal offer codeso A web analytics solution that is capable of capturing behavior at the level of individual

visitors and opening up complete visitor history for access by the campaign management system

o Sophisticated, configurable response attribution mechanisms that can match up offer history to response history at the level of individual customers

o Finally, you need to invest thoughts on how specifically to leverage 1:1 learnings to benefit your customers and business in order to justify the relatively greater investment vs. non 1:1 marketing efforts.

Your Expected Returnso A continuously better understanding of individuals’ behavior and preferences allowing

you to fine tune your communications and offers to be relevant. With your most frequent customers about whom you learn the most you may even reach the level of a dialog instead of the typical one-way marketing broadcast.

o Increasingly, a timely and relevant dialog will become the only way of marketing to consumers who are in command of their own agenda.



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Offline Lift


o Unless the customer perceives a promise of value from making use of the, typically lengthy, individualized discount codes, they will ignore or forget them.

Key Metrics & ReportsData and flags describing each individual customer’s preferences, for example:

• Their preferred channels to which they respond

• Recency, frequency, and monetary characteristics of the individual’s behavior (RFM)

• Thresholds for contact fatigue after which the individual starts ignoring offers

• Products or services of interest

• Price levels of interest


Related Unica Productso Affinium NetInsight for 1:1 web analytics to capture the history of

web site sessions including personal offer codeso Affinium Plan for offer planning, design, and efficient marketing

operationso Affinium Campaign for offer management, customer decisioning,

campaign execution & cross-channel response attribution

Further Readingo Refer to the

available customer case studies on www.Unica.com




Filter Applied: Browsed personal offer but did not convert

Sample Affinium NetInsight report for individual visitor actions

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Online Lift

1:1 Offline Conversions, B2CAttribute individual customers’ offline conversions to their web site visits and preceding click-throughs from online advertising



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Offline Lift

Your Business GoalLike it or not, your sales cycles start online today. You pay a hefty advertising fee for attracting visitors to your web site. Is your company making the most out of the opportunity to convert the prospect into a customer? You want to enhance your 1:1 communications so to shorten sales cycles, increase conversion rates and drive up average order values. For that purpose, measure beyond just the aggregated level and make note of individuals’ online site activity vs. subsequent offline behavior. For example, as presented by a speaker from Volkswagen at one of the e-metrics summit events produced by Jim Sterne of Target Marketing of Santa Barbara in 2006, web site behavior data can be mined in order to pinpoint where in the buying cycle individual prospects are at any time. Based on the individuals’ progress, timely and relevant communications can be mailed. Likewise, a speaker from Ford Motor Company explained how individuals’ web site behavior can be scored to predict the likely purchases of each prospect. Based on the score, each prospect can be prioritized for the appropriate level of focus through sales force and marketing.

Advertisement Types That You Can MeasureOnline Advertising and web site activity

o Web site sessions that include a certain minimum amount of interaction with your products and brand.

o The key is that visitors identify themselves over the course of their repeat interactions on the web site such as by completing an online form, registering an account, or entering an offer code.

o The visitors in these sessions may type in the name of your site directly or click through from search (paid and organic) or any kind of online advertising or referral to which the offline conversion can then be attributed.


Clickthroughs

Customer• called or

visited store?• purchased?

Personal identifiable

action



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Offline Lift


1:1 Offline Conversions, B2C (cont’d)

Response Types That You Can MeasureOffline Responses

o Engagement, not measurable: Visitor may browse your store or your catalog without interacting with your employees. This response is not measurable at a 1:1 level

o Engagement that is measurable: Visitor browses your store or calls in to your call center interacting with your personnel providing you with an opportunity to learn about their identity and note it in the Customer Relationship Management (CRM) system.

o Conversions: Visitor completes a purchase offline or via call center thereby revealing their identity (and potentially their loyalty card account) which can be matched up against online history

How Can You Measure?This recipe is for measuring offline conversions of individual web site visitors through 1:1 data integration.

Step 1: Entice online visitors to registero Follow web analytics best practices to attribute each site visit to preceding ad clicks. o Offer visitors valuable information on your site and promise increased personalization in

return for registering. A registration may not happen during the initial visit, therefore cookie your visitors during their initial visit so that you can attribute delayed registrations back to the original referring ad.

o Offer visitors value for providing accurate e-mail and contact information when they register:

o For financial institutions, it is natural to link the online registration to the corresponding customer account.

o Travel and transportation businesses link up to the frequent traveler cards, o Retailers can offer linking to customer’s loyalty card account in return for online

savings o News sites may link to customers’ print subscriptions when available or may reserve

parts of their sites for paid access similar to the New York Times and Wall Street Journal. As a benefit, readers tend to remain authenticated all the time!



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How Can You Measure? (cont’d)

Step 2: Feed the online registrations into your CRM system o If it is applicable to your business, feed information on your current registered prospects

from the web site into your front-office CRM system so that offline employees can retrieve prospects’ records when they come to the store or call into the call center. Unica’stechnology allows you to keep individual contacts’ records up to date with subsequent online as well as offline sessions.

o Mine historical web behavior events vs. offline outcomes in order to extrapolate results to current prospects. Once you have learned which online behavior patterns correlate with valuable offline behavior you can flag future online visitors that exhibit these patterns and prioritize them for receiving more close attention offline in the CRM solution.

Step 3: Build out your “Store of the Future”o Entice your customers to identify themselves when they interact with you in the store or

your call center even if they are not ready to purchase yet. o Sounds difficult? But this is already a given when you visit your bank today. o The retail store of the future permits shoppers to scan their loyalty card at the

entrance to retrieve personal discounts. Many stores, for example Target, already contain scanners throughout the store so shoppers can check the price of an item. Retailers can build on this infrastructure.

o Call centers can link the calling phone number up to their records. Voice technology already exists to personalize even the automated voice menu based on this information. The technology is waiting for you to leverage it carefully.

o Personnel in car dealerships or furniture stores could offer visitors to download their saved online searches in order to quickly show them the models on the lot

o If applicable to your businesses, have your sales personnel pull up individual prospects’accounts in the CRM system just like your call center staff does. Have the CRM system log this activity in order to count it as engagement.

o After customers purchase, feed the transaction record including the customer name and loyalty card information back into your CRM, or campaign management systems so that it will be matched up against the online visitation and response history.



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How Can You Measure? (cont’d)Step 4: Bring it all together nowUnica’s campaign analytics offer an incredible amount of flexibility for attributing offline responses back to preceding online activity.

Measure both direct and inferred responsesA call center or store interaction where the prospect’s identity is identified through their loyalty card, their account number, or when their account is pulled up in the CRM system is called a direct response. If however the buyer makes a purchase by credit card or check offline without using any of the above, Unica’s campaign analytics will still attribute the action back to the preceding online offers as an inferred response by reconciling offer recipient and buyer contact information.

Match multiple preceding online offers with the offline response and reconcile individuals vs. their households

Flag any level of response

Direct Response

Inferred Responseby matching up contacts

Best MatchE.g., credit only the first or the most recent offer

Fractional MatchE.g., credit an equal share to multiple preceding offers

Multiple Match Credit all preceding offers 100%

Custom Match Client specific algorithm

Householdreconciliation

SiteVisits

Thank you!

Contact ID: #366282

E-mail

Personal realtime offers

Thank you!

Inquiries vs.Purchases

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Will Measurement Be Worth Your Effort?Your opportunity is huge, but significant thought and investment is required:

Your Investmentso A registration web site that provides high value dialogs to prospective customers.o A web analytics system that at the level of individual visitors that facilitates free access

to the web analytics information for mining in conjunction with other customer datao Optionally, a tool for predictive data mining of customer behavioro Call center logging and processes for collecting data on store interactions by help of

your CRM systemso A backend system for reconciling online and offline customer data streams at the level

of the individual customer

Your Expected Returnso You will maximize revenues by turning your web site from a mere information tool into

a sales machine that works in conjunction with your offline sales force for converting prospects into buyers.

o If a car manufacturer increases their conversion rate of online visitors to customers by just 1%, at 10 million visitors per year that would be 100,000 extra cars sold. What would the same calculation yield for your business?



View web session

Web Analytics

A sample CRM screen including a contact’s recent web site activity with the ability to click and view session details.

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Key Metrics & Reports• Flags and scores describing each

individual customer’s online activities preceding their offline interactions.

• Conversion rates from online activity to offline activity

• Lift in conversion rates, average order values and revenues vs. customers receiving generic treatment

Related Unica Productso Affinium NetInsight for 1:1 web analyticso Affinium Model for web behavior mining and scoringo Affinium Leads for prioritizing offline reach out to contactso Affinium Campaign for offer management, customer decisioning,

cross-channel campaign execution & cross-channel response attribution

o Affinium Plan for offer planning, design, and efficient marketing operations

Further Readingo Sign up for the

next e-metrics summit conference by Jim Sterne’s Target Marketing of Santa Barbara



Challenges & LimitationsThere are challenges. But many businesses have proven that none are show stoppers:

o Even registered or loyal customers won’t login on every online session or will eventually delete their cookies or may use multiple computers to go online. Therefore, it is not always possible to gain a complete picture of the online visitation history.

o When customers complete a purchase in the store where they pay with cash they remain anonymous

o People don’t want to feel as if they are being tracked by a “big brother”. Therefore, attempts to register identity are met with suspicion and only accepted if they promise sufficient value in return.

Example: Online-to-offline conversion funnel

E-mails sentE-mails openedClick-through to siteStarted registrationSupplied e-mail addressCalls into call centerCall center trial conversions

Online to OfflineConversion Steps

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Online Lift

1:1 Offline Conversions, B2BAttribute individual offline B2B sales cycles to the preceding web site activity of contacts within the account



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Your Business GoalIf you are a B2B play, your web site and internet advertising are key components of your prospecting efforts. They also play a significant role during the sales cycle for building buyers’confidence in your company enough for agreeing to close the purchase. Yet the majority of your sales cycle and its culmination occur offline. Moreover, one contact at an account may browse your web site and talk to a colleague who continues the sales cycle. Therefore, tying results back to the original online marketing initiative requires not just bridging the gap between online and offline, but also bridging the gap between the various contacts of an account. Doing so is vital so you will know how to allocate internet advertising and web site spend optimally for maximizing your offline returns.

Finally, during the sales cycle as well as post sales, your account managers take significant interest into their accounts’ collective interactions with your products displayed on your web site. Account managers can pinpoint your prospects’ interests helping them shorten sales cycles. They can also detect interest in cross-sales opportunities generating additional revenue for your business.

Advertisement Types That You Can MeasureOnline Advertising and web site activity

o Any online advertising types with a clickthrough to the web site including e-mail, Search, banners, Rich media, etc.

o Activity by contacts on the web site across subsequent sessions o Ideally, contacts will register online in return for valuable information about your services

and products that you provide. However, even without registrations, activity by your prospective accounts can be detected due to the fact that visitors’ IP addresses can be translated back to the name of the organization from which they are browsing the Internet.


Clickthroughs Account• purchased?• cross-sale?

Leads(contacts)

Multiple contacts browse online



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1:1 Offline Conversions, B2B (cont’d)

Response Types That You Can MeasureOnline portion of Responses

o A contact within the account visits the web site either going directly to the site or clicking through from online search or other forms of internet advertising.

Offline portion of responseso A sales cycle for one or multiple products continues offline hopefully culminating in a

sale and subsequent follow-on sales

How Can You Measure?This recipe is for attributing offline sales to online activity through 1:1 data integration across the contacts related to an account.

What you can do online:o Apply standard web analytics best practices to capture the initial referring source (e.g. ad

click through) that brought a contact to your web siteo Cookie visitors with a persistent, unique identifier in order to correctly identify their return

visits and delayed conversionso Offer downloads or communications of value from your web site to persuade contacts to

complete online lead forms early and accurately. o Feed the data entered into these online forms into your Sales Force Automation (SFA)

system and most importantly, include each contacts’ unique cookie or registration ID in their SFA record. This way you can correctly attribute future sessions to each contact.

o Every day, or in real time, enrich the contact’s SFA record with subsequent visit behavior flagging significant online events that your sales force should be aware of.

Enable your “Sales Force of the Future”:o As the sales cycle progresses, your sales force will add additional contacts to the

account’s record in the SFA, and your marketing team will ensure that marketing touch points such as e-mails are recorded in the SFA as well.

o When the sales cycle culminates, the accounts’ record in the SFA should be completed with any selected products and revenues

o As a consequence, the accounts’ record in the SFA will contain both the original online ad source as well as the sales result. Results can be reported either through the SFA system, Affinium NetInsight or through Affinium’s cross channel analytics



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Key Metrics & Reports• Flags and scores describing

each contact’s online activities and original source of acquisition preceding their offline interactions with your sales force.

• Conversion rates from online activity to offline activity

• Offline conversion rates and returns for internet advertising efforts



Sample SFA screen including a contact’s web site activity and original source of acquisition, in this case a Google keyword for executive leather chairs

Set up rules for automatically prioritizing leads based on online and offline behavior information

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Challenges & LimitationsBe forewarned that some manual data hygiene will still be needed in order to link up contacts.

o Multiple contacts from the same account may spell their company name differently.o Many times contacts will also initially enter private e-mail addresses in order to avoid being

spammed by your marketing team. o When contacts browse the Internet from the road using hotel, WiFi, or mobile internet

connections their IP addresses will not be those belonging to their organizations unless they are connected to their VPN.



Will Measurement Be Worth Your Effort?Acquiring new prospects is expensive. Sales and marketing efficiency can make or break your profits. It is surprising then that so few B2Bs have tapped into the opportunity from fusing their online and offline touch points to maximize their win rates and shorten their sales cycles.

Your Investmentso A web site that offers value for B2B prospects in return for completing calls-to-action

and providing accurate contact informationo A web analytics solution that tracks at the individual visitor level and is open so that

information can be fed to your SFA system.o An SFA system fed by your web analytics and also maintained by the sales forceo Optionally, also a solution for automatically prioritizing leads for follow-up based on

their behavior

Your Expected Returnso Increased revenues from optimally aligning your internet marketing spend and web site

development efforts for maximizing offline sales.o Increased revenues from increasing win rates and shortening sales cycles due to a

better informed sales forceo Increased revenues from cross-sales to existing customers due to a better informed

sales force

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Related Unica Productso Affinium NetInsight for 1:1 web analyticso Affinium Leads, for prioritizing leads within

the SFA systems based on their web site behavior and other available information.

Further Readingo Refer to the customer case

studies on Unica.como Contact Unica for more

information



Example: Offline revenues attributable to search keywords that initially acquired b2b leads online

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Online Lift

1:1 Actionable Marketing ProfileCombine all previous 1:1 recipes to build actionable, cross-channel, marketing profiles of your individual customers and prospects



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Your Business GoalRegardless of which particular industry you are in, your customers expect to interact with you through multiple channels today. As a consequence, you cannot hope to succeed in relationship marketing unless you accept that your relationships span multiple channels. The information base about your customers from which you derive your next best offer or service that you will propose to each customer must be complete with data about your interactions across all channels. Otherwise, your next best offer is likely to be flawed and can hurt your relationship instead of building trust. For example, you may offer a 20% discount coupon for a TV to an online customer who just comes home from having bought the same item in your store for full price after exploring it on your web site.

Advertisement and Response Types That You Can MeasureThis recipe applies to all online and offline advertising types as well as all response types for which measurement was proposed in the preceding recipes. There will still remain a portion of ads that are simply not designed to be measurable, for example outdoors brand advertising that is not designed to trigger unique behavior so that the recipe for “Online Lift” cannot be applied. Likewise, there will still remain a portion of customer responses that cannot be attributed, for example anonymous browsing of web sites or stores.



Online Offline



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How Can You Build Actionable Marketing Profiles?The front-office solution for this business problem is well known and established to be a CRM system. Most CRM systems today track transaction history or account status of customers. Yet, with the proliferation of electronic interactions between companies and their customers through web site, e-mail, direct mail, etc., 9 out of 10 touch points may not involve any monetary transaction. Thus, the CRM system needs to be fed with information on these softer touch points in order to reflect a correct picture of each customer.

The back office solution commonly proposed for building actionable marketing profiles in the late 1990s used to be a centralized data warehouse collecting all of your data into a central location to provide a 360 degree view of your customers. However, modern approaches eliminate this need for a big central data warehouse. For example, the Universal Data InterconnectTM (UDI) technology underlying Unica’s Affinium Suite of marketing software modules can connect to disparate enterprise applications to read and write information on customer behavior. Thus, for each of your customers, UDI can access the various components of their marketing profile right in each of the enterprise applications for each of your channels where the data lives. Instead of a physical data warehouse that needs to centralize all data, you can think of this as a virtual data warehouse that can still provide complete information about each customer. Furthermore, UDI can update all systems on everything that each system needs to know about each customer. The actionable marketing profile of each customer that is built and maintained in this way forms the basis for driving customer decisioning and action through Unica’s Affinium Suite.

1:1 Actionable Marketing Profile (cont’d)



CustomerDB

360 degree data warehouse

Application

Option 1: The old, slow, expensive, & inflexible way of building actionable profilesrequired building a central customer data warehouse by extracting, transforming and loading all data from all systems

Time to Market:

Flexibility:

Total Cost of Ownership:

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Will a Marketing Profile Be Worth Your Effort?Customers are increasingly in control of their relationship with you. While that does not mean that relationship marketing is the only effective method of marketing that remains, it does suggest that its importance is ever increasing. No wonder there are so many names and methodologies for relationship marketing, e.g. permission marketing, 1:1 marketing, customer-centric marketing, direct marketing, and database marketing. You owe it to yourself to carefully review when and how relationship marketing will make sense for you.

Your Investmentso Relationship marketing is not the lowest hanging fruit. To get it right, you should add

up all the investments outlined in the previous 1:1 recipes.Your Expected Returns

o In a world where untargeted advertising increasingly goes to waste, and switching costs are shrinking to zero, 1:1 relationship marketing provides one of the few mechanisms through which you can build loyalty for increasing life time value of your greatest assets, namely your customers.

o If you could encourage each of your customers today to make one additional follow up purchase within a year, what would that mean for your top line?




How Can You Build Actionable Marketing Profiles? (cont’d)

For all this to be possible however, you still need to conduct your marketing in such a way that it is addressable, i.e. so that you can attribute behavior on any channel back to the related customer profile and the preceding marketing touch points. Therefore, all the cross-channel data fusion and response attribution techniques for 1:1 data integration that were outlined in the preceding recipes remain the key requirement.

Time to Market:

Flexibility:

Total Cost of Ownership:

CustomerDB

Unica’sAffinium Suite

Option 2: The Unica way eliminates the need for building a central data warehouse instead enabling wizard-driven universal data interconnectivity.

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Related Unica Productso Affinium Universal Data

Interconnect (UDI) technology for building actionable marketing profiles from customer information distributed across enterprise applications.

o Affinium NetInsight for 1:1 web analytics

o Affinium Campaign for 1:1 cross-channel response attribution

Further Readingo Refer to the case studies

on Unica.com




A Sample ProfileOffline Profile

Challenges & LimitationsNot all interactions between companies and their customers will be captured, so the customer profiles will never be 100% complete.

Not all businesses have enough interactions with the majority of their customers to build a sufficiently actionable marketing profile. First of all, not all businesses rely on repeat transactions. Secondly, it takes a while before you have interacted often enough to build a relationship. The stereotypical counterexample is an online bookstore that may make futile book recommendations to you based on your last purchase which happened to be a gift to your mother. Don’t let that stereotype discourage you however! If you are like most businesses, the majority of your income is derived from a minority of high-value, high frequency customers. Those customers are your target group for relationship marketing. If you double your revenue with just that segment of customers, what would that mean for your bottom line?

Online Profile

CookiesUser name

Web 2.0 participation

ReferrersKeywords used

Content & Products browsed

SubscriptionsRFMSession history

Call center history

Preferred stores

SubscriptionsRFMPurchases/Inquiries

Marketing History

Contact fatigueContact permissionsRecent CampaignsInitial Campaigns

Personal Information

Life eventsLife time valueSegmentation flagsPayment information Contact information

Service History

Satisfaction scoreClosed casesOpen cases

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Request a free trial of Affinium NetInsight

at www.unica.com or order your copy

at 1-800-407-3570.

Unica Corporation, Web Analytics GroupPhone: 1-401-295-4809 Toll Free: 1-800-407-3570 E-mail: [email protected]: www.unica.comCopyright © 2007

About Affinium NetInsightAffinium NetInsight, a core component of the market leading Affinium Enterprise Marketing Management (EMM) software suite, is a robust web analytics solution that empowers marketers with the actionable information they need, when they need it. With AffiniumNetInsight, you can analyze web traffic, online customer behavior, and internet marketing initiatives to make fact-based marketing decisions that deliver success.

About the Affinium EMM Suite Unica's Enterprise Marketing Management (EMM) software suite, Affinium, is the only complete solution that allows organizations to have the power and flexibility needed to provide customers with what they expect today - a consistent brand experience. The Affinium Suite provides robust customer analytics, event-detection, campaign management, lead management, and marketing resource management capabilities.

Affinium has helped marketers around the world achieve the common goal of driving a more customer-centric business by helping manage the pressures of increasing marketing complexity and delivering improved revenue and measurable results.

Online Offline Fusion Marketing Recipes

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