Web mrktngprsntn

1. All Credit for this presentation and the data that is shown goes to the following Conference Speakers: Geoff Ramsey of www.eMarketer.com Nick Usborne of www.forkinthehead.com Shannon Kinnard of www.ideastation.com Web Marketing Trends Update National e-Marketing Conference; March, 2000

2. Web Marketing Conference 2000 There was a common theme within the presentations of all 15 speakers at the conference: Lifetime Value of a customer will drive the development of Internet Marketing. Traditional marketing models are not valid for the Internet because of declining margins. The Internet belongs to the consumer, who will use it to encourage competition, reduce costs and drive profit margins down. Marketing Strategies of successful companies will graduate from seeking First Time sales to establishing and maintaining long-term relationships with their customers. Delivery of Customer Service will move increasingly on-line as Customer Relationship Management capabilities improve and companies become more focused on long-term customer retention. Following the new model of Permission Marketing and CRM integration, sales and service will no longer be able to operate as separate entities. A seamless and consistent delivery of both products and after-sale service will be required to meet ever increasing customer expectations. Permission Marketing companies such as: MoneyforMail.com, CyberGold.com, WinWin.com and LifeMinders.com are scaled nationally to make their cost affordable on a per customer basis. Auto Dealers must develop their own locally based Permission Marketing strategies and operations. The March 20, 2000 San Jose Mercury News reported: Eventually, every business in America will be able to reach its target customer. Conference speakers indicated that Search Engine Optimization (moving up on the list) may require more resources than the results justify. Go to: www.searchenginewatch.com for more information. Response time to customer inquiries and emails dramatically effects sales to leads received ratios . Several web sites are using live chat technology that allows dealers to push information, such as details on a particular vehicle, through to the prospect in real time.

3. Web Marketing Conference 2000

The most effective hyperlinks are text links using 7-12 words describing what the user will get by clicking on the link shown. Use trigger words to capture customer attention.

Secure more URLs with names that lead buyers to your web site. Use up to 67 characters, such as: Words in a URL are search engine prioritized FIRST.

Design a Point of Purchase survey: Do you use email? Do you use the Internet? have you been to our site? Did you use the Internet for research? What would you like to see on our web site that would encourage you to use it? Etc.

Business-to-Business is a Hot Internet function. Dealers should develop web relationships with local ly based credit unions, banks, insurance companies, malls, newspapers, factories, etc.

During the next 2 years, integration of Internet Functions into the entire Dealership will determine operating efficiency and results for sales, service, customer relations, business office, etc.

Integrating a dealerships customer database into their Internet Marketing Strategy and operating plan is very effective and something all dealers should be doing.

Customer Relationships are created by listening. Use the web to initiate more customer contact. Web site functions such as: Ask a technician, Tell us about your purchase experience?, Send a message to the Owner, Suggestions From Customers, Etc. Go to www.zoomerang. com for more ideas.

Dealership CRMs (Customer Relationship Managers) must develop effective Internet skills.

Consider using www .GoTo.com which is a search engine which charges for clickthroughs. Companies are listed in order of highest bid. Web sites are allowed free use of GoTos search engine function to attract customers. Dealers who use it can track results through their Web Trends reports function.

4. Demographic profile comparison for average: Source: eMarketer, 2000 Age 33.0 Women 51% American Net User 35.5 49% Income $37K $58K College 22% 43% e MARKETER

5. Demographic profile comparison for average: Source: eMarketer, 2000 Age 33.0 35.0 Women 51% 41% American Net User Net Buyer 35.5 49% Income $37K $62K $58K College 22% 53% 43% e MARKETER

6. There is a fundamental shift in power, and it is shifting to the consumer . George Ferguson, WebVan e MARKETER

7. How to turn online shoppers into buyers: CROSS the divide! Shopper Buyer C.R.0.S.S. e MARKETER

8.

C onvenience

R eassurance

O ptions

S ervice & Support

S avings

C.R.0.S.S. e MARKETER

9. Customer Service Facts

67% of consumers defect to another (competitive) dealer due to poor service

63% of online shoppers say they wont buy from a dealer without human interaction

47% of people are more likely to buy from a dealer online with the addition of real-time customer service response

e MARKETER

10. MARKETER e 39% of e-consumers are more likely to buy from Internet Dealers with whom theyve already had an offline experience Source: Jupiter Communications, 2000

11. MARKETER e Balance Nurture versus Capture

It costs $22 - $42 to get one customer to make an inquiry online (BCG)

Do the math... calculate your average lifetime value of a customer

12. Use of the internet as a marketing tool among medium to large companies Source: eMarketer, 2000 MARKETER e

13. Average click-through rates for generating web site traffic Source: eMarketer, 1999 MARKETER e

14. eMail is the best bang for the buck in generating dealership web site traffic $1 - 3 Direct Mail $0.75 - 2.00 Average Cost Per Message Telemarketing $ $0.25 Banner ad $0.05 eMail Source: eMarketer, 1999 MARKETER e

15. eMail excels as a tool used for customer service, retention and relationship building MARKETER e

16. The Big Shift

By the end of 2001 the most successful businesses will be those that compete on the basis of customer relationships and personalized marketing approaches

Promotional Strategies and budgets will shift towards highly targeted relationship marketing programs

Successful dealers will be those with a continued and intensified focus on direct marketing tools and tactics

MARKETER e

17. E-mails success could be its demise Time T Effectiveness Volume MARKETER e

18. Selling products and services using the web is about creating and sustaining relationships. (Beware - its their network of relationships, not yours! ) Marketing the Web Way: The Best of What You Cant Do Elsewhere

19.

Next step:

Build the potential for relationships into your site

Build in the capacity to listen.

Make your site interactive.

Reward interaction.

Be trustworthy

A great resource for building relationships one-on-one:

Peppers & Rogers Group

http://www.1to1.com

Get them back for more By creating relationships.

20. Figure out what your web site users want by listening to them. How to do it...

21. Build interactivity With customer permission!

Why bother?

Every customer relationship grows step by step.

Every new step requires customer permission.

Using Permission builds trust - trust builds sales.

22. Build interactivity With permission. Opt-in Opt-out From workz.com

23. Build interactivity With customer permission. Getting it right From whirlpool.com

24. Keep in touch with email. Why bother?

Creating relationships requires dialogue a conversation.

email achieves an intimacy of communication that is personalized and cant be achieved with a web site alone.

email will draw people back to your web site, leading them to your dealership when they are ready to buy.

email is cheap...

25. Keep in touch with email. Use email for housekeeping... From amazon.com

Take full advantage of each email opportunity

Even housekeeping emails can have a promotional component

Your one chance to promote - without permission

26. Keep in touch with email. Use email to sell From: Download Warehouse Reply-To: DownloadWarehouse Special Offers Newsletter Date: Tue, Jul 27, 1999, 9:48 PM To: [email protected] Subject: The Hottest Prices on the Coolest Deals! You can beat the heat, but you can't beat these prices! Our thanks to you for being a continued downloadwarehouse.com customer!

Make every email one-on-one

Use the voice of a person - not of a salesperson

Test, test, test

27. Keep in touch with email. Use email to serve your customers... From art.com

Every complaint provides a new opportunity

Always keep it personal...

28. Keep in touch with email.

Use email to touch people one-on-one...

Not too much

Not too often

Keep it one-on-one

29. Building Customer Relationships Customer Relationship Marketing - some services to help manage your online relationships: http://www.epiphany.com http://www.responsys.com http://www.guesttrack.com http://www.kana.com http://www.personify.com http://www.postcommunications.com http://www.brightware.com http://www.netperceptions.com http://www.vignette.com http://www.accucast.com Start making sense of it at: http://www.accelerating.com

30. Reward interaction...

If you want to sustain a dialogue - make it worth their while...

Through improved service.

Through internal reward programs.

Through external reward programs.

http://mypoints.com http://cybergold.com http://beenz.com http://ecentives.com http://netcentives.com http://webstakes.com http://prio.net

31. Protect your relationships with honesty, privacy and trust.

Why bother?

Long-term relationships are built on trust, integrity and honesty.

Honesty and trust are key elements in any permission-based model of relationship marketing.

Protect your relationships with honesty, privacy and trust.

Why bother?

Long-term relationships are built on trust, integrity and honesty.

Honesty and trust are key elements in any permission-based model of relationship marketing.

Examples of honesty and trust selling Our pledge to you is that living.com will never willfully sell, trade, rent, disclose, or make available personally identifiable information about you to any third party without first receiving your permission, except when we believe in good faith that the law requires it, or to protect the rights or property of living.com. From living.com

32. Protect your relationships with honesty, privacy and trust. Get third party verification... http ://www. truste .org http://www. verisign .com http ://www. bbbonline .com

33. Concluding points.

Build in the capacity to listen

Remember the math and get people back a second time...

Communicate with permission.

Be honest and trustworthy.

Never forget - its about the people, not the technology.

(And remember - its their network of relationships, not yours! )

34. Overview of E-mail Marketing Copyright, 2000 Shannon Kinnard

35. Pieces of the Pie...

Planning Set goals and surpass them. This takes strategic planning to fill databases with the right pieces of information for use in customization, personalization.

Promotion Fill that database as quickly as you can!

Technology Building, buying, outsourcing

Creative Execution Using the right message

Measurement Budget, results and ROI

E-Care Loyalty in relationships is a two-way process.

Copyright, 2000 Shannon Kinnard

36. Database Marketing

Junk mail

Quantity

Easy to ignore

Slow

Costly

Opt-In E-Mail

Quality

Easy to Respond

Quick

Inexpensive


37. What is E-Mail Marketing? E-mail communications sent to a self-selected audience for the purpose of building a long-term vendor/customer relationship over time. Ideas: Contests E-mail Newsletters Member-Only Information Online Networking Discussion Lists Discount Offers Copyright, 2000 Shannon Kinnard

38. Mass Customization 1. Define your purpose in phases. 2. Collect robust data. 3. Make customization meaningful. 4. Set up systems to cultivate, grow and refine your database. Copyright, 2000 Shannon Kinnard

39.

Goal: To build strong relationships with best customers.

Vendor Needs: Platform-independent, unlimited scalability, customization & personalization, trackable results.

Tactic: Web Fares & Fan Fares

Customers Specify their Departure Cities

Sending one million messages per month

Average click-thru: 10%; Sales up 400%; Opt-in rate of growth up 900%

* Source :http://accucast.com , for a complete description of this case study

Case Study: Delta Airlines Copyright, 2000 Shannon Kinnard

40. Building Relationships

Ethics: Deliver on your promise

http://www.the-dma.org

Offer ongoing, valuable, consistent and dependable communications

Provide a mechanism for feedback


41. Building Your Database

Trade and paid advertising, both on and offline

Directory of Ezines at: http://www.lifestylespub.com

Opt-in list brokers

Networking and signature files


42. Building an In-House List continued...

Welcome subscribers with pertinent information about the email program. For example:

You are now subscribed to The Balance from Kinnard's Pharmacy. Thank you for joining us! Our mission: your total wellness. We produce The Balance so that when you make health choices, you are armed with knowledge. We respect your privacy. Your email address and personal information will remain private, and will only be used for a once-monthly mailing. To unsubscribe, send the message unsubscribe to [email_address] . If you'd like to contact someone at the pharmacy, email [email_address] . If you have any problems with subscribing or unsubscribing to this free monthly email program, please contact the list administrator, [email_address] . Thanks and welcome! Copyright, 2000 Shannon Kinnard

43. Technology Investment

What should you expect to pay?

Free services: host e-mail names, distribute e-mails, insert their ads (Topica, eGroups, Onelist)

Distribution programs: Load it on your PC (Mailking ($99) or Broadc@st ($99 - $2,495))

Service Bureau: Slingshot Media ($250 setup, $1/1000 messages delivered)

Server Programs: Accucast Enterprise ($25,000+)

Opt-In Brokers: $.25-$.50 per message (Postmaster Direct, Yesmail)


44. How to Measure ROI (Sample Scenario) Send campaign to (A) 100,000 recipients for (B) $40 product (C) Cost Per Piece, to send = $.04 (www.accucast.com) (D) Expected Response Rate = 7.5% (industry average) (E) Expected Conversion Rate = 10.0% (industry average) (F) Total Program Cost is A x C = $4000 (G) Number responding is A x D = 7500 (H) Cost per response is F / G = $.53 (I) Number converting is G x E = 750 (J) Cost per conversion is F / I = $5.33 ROI = ( (I) Conversion x (B) Sale ) (F) Program Cost) ROI = (750 x $40) - $4000 = $26000 One-shot scenario doesnt consider the Lifetime Value of a Customer Copyright, 2000 Shannon Kinnard

45. Sample Vendor List Netcreations Postmaster Direct Socketware YesMail! L-Soft International MyPoints.com Digital Impact Sling Shot Media Revnet MarketHome For a monthly updated autoresponder of vendors in this field and descriptions of their services, send an e-mail to: [email_address] Copyright, 2000 Shannon Kinnard

46. Poor Service is News

Most companies continue to treat customer email as second-class communications

73 % of wired consumers prefer email to other on-line service options (including telephone). Only 8% reported it met their needs

49% of wired consumers say that regardless of outreach and attempts to receive on-line service, their problems go unresolved

To compete on the Internet, providing instant service 24/7 is not just important, its mandatory

87 % of on-line shoppers that spent $2K or more on the web within the past six months will click to a competitor if they experience bad customer service

Wall Street Journal July 6, 1998 Real Market November 9, 1999 PC Week Online July 19, 1999

47. Training Training Training Research by J.D. Powers and Associates shows that there is a direct relationship between dealers who are having success selling cars on the Internet and the amount of training that is provided. More training means higher closing ratios. The study showed that dealerships that dont provide any training for their personnel average 4.3 Inernet sales per month. Dealerships that provided at least 8 hours of training averaged 9.7 sales per month, more than twice that of the untrained sales force.

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