the big questions of 2013
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The Big Questions of 2013
Ernan RomanPresident
Ernan RomanDirect Marketing
Reggie BradyPresident
Reggie BradyMarketing Solutionsreggie@
reggiebrady.com
Lois BrayfieldPresidentJ. Schmid
Carolyn GoodmanPresident /
Creative DirectorGoodman Marketing
Partners, Inc.carolyn@goodman
marketing.com
Ken LaneSenior Consultant
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The Big Questions1. Multichannel: How do you really make
multichannel work?2. Acquisition: Has the acquisition model changed?
What is working?3. Mobile: What can mobile really do for me?4. Budgets / Attribution: Allocation. Where and how
do I allocate my marketing dollars and resources?5. Social: How much of my budget / time / energy
should be dedicated to social media initiatives?
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Multichannel(Ernan Roman)
Per VoC Research: Today’s shopper is uniquely multi-dimensional;
¨ multi-channel¨ multi-purposeMany reported using multiple media, often at the same time.
Mobile has only added to this complexity. Media preferences and aversions are becoming more
pronounced.Therefore gathering individual customer’s media preference and aversion data is now essential.
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Multichannel(Ernan Roman)
Spending based on the number of channels:¨ Multichannel customers spend 2 to 3x more than
single-channel shoppers¨ Consumers who engage across three or more channels spend
6 to 10x more
Multichannel spending results in incremental spending… not revenue cannibalism!
Note: The channel used for the purchase is often not indicative of shopping habits.¨ Most use multiple media to shop, and often, to purchase.
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Multichannel(Ken Lane)
Too many marketers are simply “chasing” these various channels in a silo-ed approach¨ Marketing spend goes up¨ ROI goes down
More and more, these silos turn out to be related¨ Sequential¨ Synergistic
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Acquisition(Reggie Brady)
Acquisition is tough! Response rates and ROI are declining across all media channels Direct mail prospecting/lead generation response
¨ 2003 – 2.14%¨ 2010 – 1.38%¨ 2012 – 1.28%
Cost per order for prospecting/lead generation:¨ Newspaper – $36¨ Direct mail, postcards, email & paid search – between $55 & $55¨ Telemarketing – $190
DMA Response Rate Report 2012Image source: LazyPatch.com/blog
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Acquisition(Reggie Brady)
Bright spots Lead nurturing for B2B via automated emails in combination
with lead scoring
Content marketing ‒ information you create to help solve the problems your audience cares about
Omni-channel marketing ‒ customers and move from channel to channel on a regular basis - often to perform the same task
Image source: TheRenegadeWriter.com
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Acquisition(Lois Brayfield)
If prospects have already engaged at a meaningful level, they are 68% more likely to purchase in the future. (McKinsey & Co.)
Boldly test a new twist on an old model¨ Don’t think of prospect lists as “one and done”¨ Explore new ways to get prospects to raise their hand (print and
digital) ¨ Develop a plan to convert later
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Mobile(Carolyn Goodman)
Options: SMS, MMS, Push Notifications, Mobile Gaming, Mobile Web Marketing, QR codes & Location-Based Services
Most popular option: SMS¨ 100 million sent every day¨ Read in 4 minutes
4/5 consumers use a smartphone to shop¨ 74% wait only 5 seconds for a
page to load Most popular app: FourSquare
¨ 25MM users¨ 2.5+ billion check-ins¨ 1+ million merchants
By 2014, mobile internet usage will overtake desktop
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Mobile(Carolyn Goodman)
36% of all emails opened on a mobile device: Need to rethink email and web page design:¨ 320 – 550 px wide¨ Minimum 14 px for body text, 16 px for headlines¨ 35 character limit on headlines¨ Single or double column design¨ Don’t put clickable images or links side by side¨ Fingertip elements: 44 x 44 points¨ Higher contrast between content is ideal¨ Test before blasting on different mobile devices
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Mobile(Ernan Roman)
Per VoC Research: Mobile drives increased multichannel shopping…and spending. Also, more informed purchase decisions:
¨ Mobile devices facilitate comparison shopping and making informed decisions.
Result:¨ More empowered customers.¨ More competition for marketers.
Takeaway:¨ Only way to achieve long term, multichannel engagement and
differentiation is to understand individual customer preferences for messaging, offers and media mix.
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Budgets / Attribution(Ken Lane)
It used to be that you mailed and the phone rang, blasted then your orders increased
That was then, this is now¨ Mobile – sales sourced from mobile devices are the fastest
growing channel of significance¨ Google reports that 45% of all searches are from a mobile
device and this figure will hit 70% by year end 2013¨ Social – Facebook, Twitter & Pinterest
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Budgets / Attribution(Ken Lane)
You cannot manage what you do not measure¨ Now, more than ever, a Measure & Manage approach to your
business is tantamount to success¨ Software packages are available¨ Programmers in big data using Hadoop
Proper sales attribution is critical¨ Last channel - flawed¨ First channel – “fair” but can lead to false positives ¨ Weighted attribution¨ For your consideration…
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Budgets / Attribution(Reggie Brady)
Ways to determine attribution¨ First touch (not great! – but it did stimulate interest)¨ Last touch (not great! – it did stimulate response, but
undervalues the early stages of the purchasing funnel)¨ Fractional attribution – gives varying percentages to
each touch-point leading up to conversion (difficult to do ... but more accurate)
Consider doing “hold out tests” to determine the effectiveness of individual channels (more often done in BtoC, more difficult with BtoB)
Awareness
Interest
Evaluation
Commitment
Buy
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Content is repetitive and boring
“60-65% of business leaders believe that consumers follow their brands on social
media sites because they want to be a part of a community.
Only 25-30% of consumers agree.”
- IBM Institute for Business Value
Social(Lois Brayfield)
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Social(Lois Brayfield)
Customers do not always give “permission” to engage¨ RESEARCH - Know what your customer cares about¨ Edit tactics they don’t care about
Don’t treat social efforts as a tactic; build a strategy
Content is repetitive and boring
Too many tweets; must edit
Company posts too frequently
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The Call-To-Action is critical to success¨ Must be customer-focused, not brand-focused¨ What can your brand do for them?¨ ICEE – What is Informational, Compelling,
Entertaining or Educational to your customer? Create a Customer-Focused engagement
funnel that allows for a future “trigger” TIP: Use social platforms to “crowd-source”
marketing questions
Secondary call-to-action
Social(Lois Brayfield)
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Social(Carolyn Goodman)
More than 75 millions Americans accessed a social networking site/blog via mobile in one month
3 in 5 mobile users pay attention to mobile ads while visiting social media sites (Prosper Mobile Insights 2012)
1 in 3 Facebook updates are through a mobile device 40% of tweets are from mobile Mobile and social = Simple is sexy:
¨ Clear call-to-action¨ Limit options¨ Don’t make target jump through hoops¨ Deliver value