MARK2038 Data Base Marketing Strategies II

Week 6

Instructor: Santo Ligotti Email: sligotti@gbrownc.on.ca

Housekeeping

Assignment #1 is due todaySelf Study Assignments 1 and 2 are due todayAssignment #2 was handed in on May 30th Assignment #3 completed in class last weekGroup Projects Handed out todayAssignment #4 handed out this week as well (1 week ahead of schedule)

This week

Telemarketing Inbound applicationsOutbound applicationsCustomer ServiceMobile Messaging/Text MessagingText Messaging In Class ExerciseVideo Messaging

Telemarketing

Telemarketing: the use of telephones to communicate with customers in a systematic and targeted manner, to generate a measurable response.

Telemarketing

What is it?

• Selling or service conducted by phone via call centre» Inbound – generated from customer

communications (e.g. calls generated from an infomercial, catalogue, print ad, direct mail)

» Outbound – Telemarketing programs designed to generate sales, service

What are the advantages of telemarketing?

Advantages of Telemarketing

• Humanizes the interaction: builds bond with customers

• Improves response rates when used in conjunction with other channels (e.g. DM, e-mail)

• Immediate feedback• Flexibility - can modify interaction based on

feedback• Cost efficiency - complete a sale for less cost than

face-to-face selling• Guilt – keeps some customers on the phone

What are the disadvantages of telemarketing?

Disadvantages of Telemarketing

• Negative perceptions associated with telemarketing unwelcome, intrusivetoo many calls: 50% of people simply hang up

• Consistency of data capture• Can ignore with call display• Limited Reach (Usually only 55% of customers

are reached)• High cost: LD telephone charges, call centre, rep

salaries etc.

4 Basic Elements of an Outbound Program• List or target audience• Offer being communicated• Telephone sales representative: attributes & training

Verbal communication skills Ability to read a script with enthusiasm Willingness to overcome objections

• Quality of script/message communicated

Which element is the most important? Why?

Scripts

Scripts provide:StructureConsistent messagesComplete messagesA means for effective campaign

measurement

Typical Outbound Script

Elements of a typical script may include: Introduction Qualify/probe Paraphrase features and benefits Trial close Handling objections The close Reassurance Up-sell and cross-sell

2 Types of Telemarketing

Inbound Telemarketing: a capability enabling companies to receive calls from customers (inbound) to:Purchase products/servicesGet more information about a

product/serviceOrder literatureLocate a dealerRespond to survey research

2 Types of Telemarketing

Outbound Telemarketing: a capability enabling a company to call customers (outbound) to:Qualify leads and prospects Customer serviceConduct survey researchUpdate customer database recordsCollections

Inbound vs. Outbound

INBOUND OUTBOUND

Strategy Reactive Proactive

Availability 24 x 7Day/evening

only

Markets B2B + B2CDirect sales

organization

Example: The Processing System within a Telemarketing Center (1 of 2)

Telemarketing specialist

Telemarketing specialist

Mail responses

Mail responses

Telephone responses

Telephone responses

RadioTelevisionMagazinesNewspapersDirect mail

RadioTelevisionMagazinesNewspapersDirect mail

© 2001 McGraw-Hill Ryerson Ltd.

Example: The Processing System within a Telemarketing Center (2 of 2)

TelesellingTeleselling

FulfillmentFulfillment

Outside sales forceOutside sales force

Telemarketing specialist

Telemarketing specialist

© 2001 McGraw-Hill Ryerson Ltd.

Computer Database

Computer Database

NordicTrack vs. DuPont Canada

How might telemarketing activities be different in these two companies?

Outbound Campaign Planning

Set objectives Design campaignDevelop customer service proceduresCompile listWrite scriptTrain staffPre-test Analyze results, modify as requiredLaunchAnalyze results

Staged Campaigns (1)

Direct Mail:Send offer Respond?

Telemarketing:Follow-up

offer

MORE INFO

NO

NO

Sale

PURCHASE

Sale?

Staged Campaigns (2)

Telemarketing:Initiatecontact

Direct Mail:Send offer Respond?

Sale?Telemarketing:

Follow-up

YES

SaleYES

NO

NO

Do's and Don'ts

Dont's expect immediate

paybacks take shortcuts 'wing it' without a

script forget to TEST

Do's Plan TEST, TEST, TEST involve ALL the

appropriate departments

train service reps develop report

templates in advance

What is Customer Service?

• Customer service is the ability of an organization to constantly and consistently give the customer what they want and need.

• Excellent customer service is the ability of an organization to constantly and consistently exceed the customers’ expectations.

Direct Marketing can be a key tool in improving customer service.

Achieving Excellent Customer Service

Customer-friendly processes senior management support

Employee commitment to customer service training recognition and reward (compensation) for

exceeding customer expectations empowered to “do what it takes” to make

customers happyCustomer dialogue

Achieving excellent customer service requires strength in 3 areas.

The Golden Rules of Excellent Customer Service

Make sure you know what your customers want and expect.Be flexible in meeting customer demands.Treat customers like partners rather then adversaries or end-users.Make it easy for the customer to do business with you.Have a positive attitude toward customers.Encourage customer feedback.Respond to customer problems.Develop repeat relationships.Seek to exceed customer expectations

Mobile Phones & Text Messaging

SMS as a direct marketing mediumPotential for true 1:1 marketingReach young marketMore relevant for “fun” products & services Opportunity for narrow targeting with relevant messagesPermission is keyText Messaging is becoming its own language, with many sites devoted to providing dictionary type definitions. Check out

http://www.netlingo.com/emailsh.cfm

TEXT MESSAGING LINGO

What do the following mean:BBFNCSLGTGBLOOLSBTA

TEXT MESSAGING LINGO-In class exercise

Recall the Gillette Fusion Creative Brief you didWorking in groups of 5-6, create a text messaging campaign using the provided dictionariesYour message should be a maximum of 2 screens long, or about 30 words/phrasesYou will then present to the classMake sure you determine first, who your sub target audience isAssume you have permission to use this medium, and have negotiated use with a provider, say ROGERS WIRELESSYou will have 45 minutes to do this exerciseThis will count towards 10% of your final gradeI will use this as a bonus assignment and replace it with any lower one you may have during the rest of the courseOh yes,,,, KEEP IT CLEAN

VIDEO MESSAGING

Video messaging is another aspect of video technology in cell phones. Many cell phones have built in video capabilities allowing the cell phone to take a quick video capture. The user can store these videos, upload them to their computer or send a video message to someone instead of a text message.

VIDEO MESSAGING-GREAT EXAMPLE

New Zealand Telecom wanted to encourage increased usage of its VIDEO PHONE CAPABILITIESThe Rubbish Film Festival was unique in that it was the first online mobile film festival and over 900 competitors were attracted to the ease and accessibility of entering. They simply had to shoot their own 20 second movies using mobile phones and then upload the films to http://www.rff.co.nz/, where the public could view and vote for films, just for fun. A panel of experts then judged the category prize winners and best overall entry. The competition was split into five categories: Cinematography, Sound, Screenplay/Acting, Technical Production and Overall Impression. Each of the category winners won a Sanyo 76cm Flat Stereo Widescreen TV and a DVD Home Theatre system worth $1500 each while the overall winner also scored a trip for 2 to the home of movie making – Hollywood. The trip includes 5 nights accommodation, VIP passes to Universal Studios and a tour of movie star homes with a total value of $12,000.This competition has illustrated how customers have fully embraced the new technology and taken it to the next level. Their mobile phone is now as much a portable video camera as it is a phone. It provides the freedom to shoot really creative stuffCreates anoter sense of communityIllustrates the issue of MEDIA FRAGMENTATION (we will talk more about this in the coming weeks)

The Big Challenge: Media Fragmentation

Fragmentation = More TV channels, more sources of news, the Internet, more devices

Consumers and advertisers have more choices

But fragmented markets are not new! Once upon a time…

Retail: The Hudson’s Bay Outpost storeTransportation: The Canadian Pacific RailwayAutomotive: Henry Ford’s Model TBroadcast: The CBC

What did we do?

Like most fragmenting markets, we…First, ignored itSecond, panicked!Third, tried to control itFourth, learned to understand it

Finally, we began to adapt our business to the consumers’ desire for choice, and our clients’ need for effectiveness

NEXT WEEK

Digital Marketing Part 1The use of the internet as a creative mediumHow to develop a web briefAssignment #4