Multi Channel Consumer Behaviour Ronjacobs

How Direct Marketing Applies in a Multichannel Marketing World
A Presentation for
Ron Jacobs
ronjacobs@jacobsclevenger.com
Copyright 2010 Jacobs & Clevenger
Ron Jacobs
President, Jacobs & Clevenger Co-Author, Successful Direct Marketing Methods Sponsor, Ron Jacobs & Bob Stone Multichannel Marketing Communications Certificate Program, DePaul University
Agenda
How multichannel marketing is affecting marketers, media, agencies and communications around the globe What market transformation means to marketers, agencies, consumers and customers How digital & social media tools can produce behaviors of decision makers, influencers and buyers that can be exploited for lead generation, nurturing, CRM and brand marketing How channels are rapidly changing and what that means for organizations trying to integrate them online and offline channels into their marketing communications campaigns
How airline food is like advertising
The food must be for everyone, you see. And so, it is for no one.
An Airline Chef based in Dallas
It s the Chaos Scenario for marketing communications

The quid pro quo among marketers, channels & consumers is gone
Marketers are resistant to support broad media & channels Consumers unwilling to pay for information from media
Single channel marketing is no longer effective

Broadcast, print, direct mail, email, web None stand alone
Purchase decisions are collaborative, not linear

Be with customers on their journeys, nurturing them along the way
Brand marketing is no longer about changing perceptions, it s about changing behavior

Moved from exposure to involvement Brand & response are interwoven
All marketing has become direct marketing Direct marketing has become multichannel marketing
Use data for targeting
Segmentation & microsegmentation
Addressable media
Personalize & Customize communications
Target geographically
Local & hyperlocal
Measurement & Accountability

Bridges marketing & finance
Communications objective is conversions

It s not just about image & awareness It s about behavior
Improve Return on Marketing Investment

Invest based on Customer Lifetime Value
Add calls to action in copy

This is how you get consumers to convert
Frequency, timing & testing

Learn when to engage
Multichannel customer behavior is the new normal
Today, prospects take countless nontraditional, non linear journeys to become customers Why so many marketers taking the same journeys that they always have?
Multichannel marketing communications requires a new strategy framework

Behavioral Hourglass
Problem Recognition Information Search Evaluate Attributes Purchase/ Conversion Post Purchase Triggers, Activation Engagement and Customer Service Affinity, Loyalty and Lifetime Value Re-engagement, Winback
Define the Multichannel Goal

How will multichannel: Create Customers Make money Save money Satisfy clients Grow Customer Lifetime Value Increase brand Equity
Develop the Multichannel Strategy

How will each channel fulfill the goal: Identify targets Which channels apply Prioritize channels What is the message strategy Decide on 3-5 KPIs
Test, Measure and Improve Return On Marketing Investment

Where does the organization: Profit Grow Invest Short term Long term
Marketing communications agencies are transforming as well: The new agency organization chart
Channel planning
Account planning
Account management Copy writing Technologist
Design
CRM
Social marketing SEO/SEM
Analytics
Project management
Marketing communications agencies are transforming as well: The new agency idea team
Channel planning
Account planning
Account management Copy writing Technologist
The new agency idea team combines account, creative & technology
Design
CRM
Social marketing SEO/SEM
Analytics
Project management
Key Performance Indicators (KPIs) can help measure everything

1. Business contribution: Channel reach, revenue contribution (direct and indirect), Return On Investment (or ROMI), category penetration, costs and profitability. Marketing outcomes: Customers, leads, sales, service contacts, conversion, retention, winback and response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value. Customer satisfaction: Usability, performance/availability, recommendation behavior. Opinions, attitudes, reasons for defection, brand impact and churn. Customer behavior : Profiles, customer orientation (segmentation), usability, clickstream and site actions. Bounce rates, conversions, page views, depth, page & site duration, RFM and transaction behavior. Channel promotion: Attraction efficiency. Referrer efficiency, cost of acquisition and reach. CPC Vs CPM. Search engine visibility and link building. Unique visitors, frequency, e-mail marketing results. Channel integration. Social marketing: Engagement (e.g. # of comments); involvement (e.g. time spent); bounce rate; # of reads, comments, & posts; brand affection/aversion; conversions; mention of brand name; advocacy; viral activity; referrals; recommendations; multiple moving averages; etc. 1. Business contribution KPIs distill analytical data into relevant information Exclusive to each business Specific 4. Customer behavior Valuable Actionable 5. Channel promotion Focus on the 3 5 most significant metrics
2.
2. Marketing outcomes
3.
3. Customer satisfaction
4.
5.
6.
6. Social Marketing
Social Marketing Extending your brand and business through social engagement
Social commentary on Social Marketing Future Man goes back to the 1960s
SO YOURE SAYING PEOPLE WILL TWEET WHAT THEY EAT FOR BREAKFAST? AND UPLOAD PICTURES OF THEIR BREAKFASTS TO A FACEBOOK AND OTHER PEOPLE WILL LOOK AT THE BREAKFASTS AND MAKE COMMENTS
SORRY TO BURST YOUR BUBBLE, DUDES. BUT YOU ASKED. YES, THATS THE FUTURE!
FUTURE MAN, I CANT BELIEVE PEOPLE WILL FIND THAT MORE INTERESTING THAN READING NEWSPAPERS OR WATCHING NETWORK TV!!
Social marketing is still in a nascent stage

Agencies and marketers are addicted to ad campaigns
Not continuous customer dialogues, cooperative communications, etc.
Traditional agencies aren t staffed for social marketing Marketers aren t sure what they are buying/getting Marketers have lost control of their message Marketers don t understand how their audience engages Marketers don t know where it fits within their organizations Marketers aren t sure why they should care about social marketing
Businesses are Taking Social Marketing Seriously

The amount of video uploaded to YouTube every minute
24 hours
The amount of time it would take to view every video on YouTube

1,750 Years
The number of YouTube videos viewed per day

2 Billion
The average number of tweets on Twitter.com every day

65 Million
Businesses are Taking Social Marketing Seriously

The number of photos archived on Flikr.com as of June 2009
13.6 Billion
The amount of content (Links, news, posts, notes, photos, etc. shared on FaceBook weekly
3.5 Billion
The number of minutes spent on FaceBook daily

16 Billon
If FaceBook were a country

It would be the 3rd most populated in the world, behind China & India
The number of Articles on Wikipedia

16 Million
Argentine Social Media Usage

Number or Register Facebook users
6 million in Argentina
Number of Registered Fotolog users

4.5 million in Argentina
Number of registered Snico users

2.3 million in Argentina
Number of registered Twitter users

3 million in Argentina
Sources: Ecco Communications Network/ComScore
Conversations are taking place around your category, your brand, and the entire buying process
Where are conversations taking place? Who are the influencers driving them? What is being talked about? (e.g. Keywords) Is the Sentiment positive or negative? Can keywords be turned into dialogues, multichannel copy?
Social Channels work together, but play their own roles
Paid Media
Crispin Porter + Bogusky s Social Home Page
Owned Media
A Brand Channel
Kogi BBQ
Twitter for traffic building and CRM
Kogi BBQ
Twitter for traffic building and CRM
Earned Media
Angie s List
Earned Media
Angie s List
Multichannel conversion, testing & attribution
Remarketing increases conversions by targeting users that have already visited your website
A.
A line of code is placed on your website.
B.
A user is tagged and added to your user population when they visit your site.
C.
When visiting an affiliated website, the user is served with a targeted ad.
D.
The user is brought back to your site for conversion.
Remarketing (AKA Retargeting) example
Remarketing (AKA Retargeting) example
Testing is central to multichannel marketing efforts

Products & Services Attributes Headlines Sub-headlines Body copy Offers (Price, Incentives, etc.) Calls to action Images Colors Keywords Landing pages Bounce rate Lead Forms Order pages Bonus offers Guarantees Video Audio Fonts
Two useful methods of testing

A/B testing (Split Testing)
Common offline direct marketing testing Compares the performance of one variable against another Online this can be used when moving sections around or changing the overall look of web pages
Multivariate Testing
Compares the performance of different content variations in multiple locations within a communication E.g. Can help optimize multiple content changes in different parts of multiple web pages simultaneously Can also be used in direct mail
In 2007 Capital One constructed 28,000 direct mail tests using this method
A/B Split Testing

Test one variable at a time
Test A Test B
Headline
Headline
Image
Image
Body Copy Offer Call to Action
Body Copy Offer Call to Action
Multivariate Testing
Test multiple variables at a time
Test A Test B Test C
Headline 1
Headline 2
Head line 3
Image A
Image B
Image C
Body Copy a Offer 1 Call to Action I
Body Copy b Offer 2 Call to Action II
Body Copy c Offer 2 Call to Action III
36 Variables (3x3x3x3x3x3) = 729 Tests
Barriers to better attribution models include technology, resource, and process challenges
Most current attribution models are flawed
The last touch standard or current session models Causes over-invest in near-term conversion drivers
The consumption and impact of media is interrelated with other media

Traditional media is interrelated with Digital media The relationship between display and search changes depending on products, brands, time of day, season, company, geography, etc.
The multichannel effect is important in high-consideration situations

e.g. Expensive, complex or involved offerings Financial services offerings, family vacation or a choice of college
Last ad standard
Atlas Solutions, Microsoft Advertising

Engagement Mapping across channels
Atlas Solutions, Microsoft Advertising

Multichannel Marketing Best Practices
Multichannel marketing best practices

Different marketing channels work best for different organizations
There is no One Size Fits All approach Facebook has become the de facto home page of CPG organizations LinkedIn makes more sense for B2B organizations Blogs and Wikis are among the best social media channels to promote an enterprise, but don t work as well for consumer brands YouTube has worked for many B2B and B2C brands. It is especially suited to businesses catering to the multimedia and entertainment industry
Reevaluate the top and bottom tactics within your mix

This will force change where organizational inertia often prevents it

Show you know and listen to your customers
Let them tell you what channels to market to them with Let them tell you the frequency of contact Let them tell you the kinds of messages that they will accept Let them tell you of you can lend their name to other marketers
Add some emotion to marketing communications

In B2C marketing use an emotional play on risk and reward In B2B a buyer's goal is to avoid exposure to risk, not to make the best decision
Use Trigger Programs to automate some marketing operations

Anniversary, birthday, after sales service/warranty programs, upgrades, abandoned cart programs, etc.

Be spontaneous. It makes deeper and better connections with prospects and customers
Don t use jargon in marketing literature or create blogs that simply republish press releases, then tweet them as links Natural voices and conversations are important to decision makers
Identify top SEM Keywords, and use them in outbound communications B2B and B2C buyers think differently
In B2C consumers buy based on features, benefits or personal taste In B2B sales are based on demonstrating product or service expertise
Don t only look for best practices within your own niche
A B2B Ecommerce organization can learn from a B2C leader like Amazon.com

Find ways to combine social media tools with offline engagement
Input social media profiles into your CRM system to help your sales executives learn more about client s day to day life for the next sales contact cycle
Move beyond outbound marketing

Don t just broadcast marketing messages via Twitter, LinkedIn, blogs, Facebook, podcasts, etc. Engage prospects and customers in continuous dialogue.
Create and distribute a set of Social Marketing Guidelines to staff

Employee engagement is an important as customer engagement You want staff to manage social marketing in a thought out, transparent and positive spirit
Conclusions
Niche Marketing is Direct marketing, Direct Marketing is Multichannel Marketing
DM is now the foundation of future marketing
The goal of all marketing communications is to shift behavior Conversations (And, communications) need to be authentic, relevant, valuable, and accountable Customer engagement is attributable to customer experience
Relevancy is both earned and bought It s not Push or Pull It s Push and Pull!!!
Transformation is ongoing
To remain competitive your organization needs to keep up!!
Questions & Answers
Questions?

Multi Channel Consumer Behaviour Ronjacobs

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Multi Channel Consumer Behaviour Ronjacobs

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How Direct Marketing Applies in a Multichannel Marketing World

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

How airline food is like advertising

It s the Chaos Scenario for marketing communications

Single channel marketing is no longer effective

Purchase decisions are collaborative, not linear

Brand marketing is no longer about changing perceptions, it s about changing behavior

Copyright 2010 Jacobs & Clevenger

Measurement & Accountability

Communications objective is conversions

Improve Return on Marketing Investment

Add calls to action in copy

Frequency, timing & testing

Multichannel customer behavior is the new normal

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Multichannel marketing communications requires a new strategy framework

Define the Multichannel Goal

Develop the Multichannel Strategy

Test, Measure and Improve Return On Marketing Investment

Account management Copy writing Technologist

Social marketing SEO/SEM

Copyright 2010 Jacobs & Clevenger

Account management Copy writing Technologist

Social marketing SEO/SEM

Copyright 2010 Jacobs & Clevenger

Key Performance Indicators (KPIs) can help measure everything

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Social marketing is still in a nascent stage

Copyright 2010 Jacobs & Clevenger

Businesses are Taking Social Marketing Seriously

The amount of time it would take to view every video on YouTube

The number of YouTube videos viewed per day

The average number of tweets on Twitter.com every day

Copyright 2010 Jacobs & Clevenger

Businesses are Taking Social Marketing Seriously

The number of minutes spent on FaceBook daily

If FaceBook were a country

The number of Articles on Wikipedia

Argentine Social Media Usage

Number of Registered Fotolog users

Number of registered Snico users

Number of registered Twitter users

Copyright 2010 Jacobs & Clevenger

Social Channels work together, but play their own roles

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Crispin Porter + Bogusky s Social Home Page

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Twitter for traffic building and CRM

Copyright 2010 Jacobs & Clevenger

Twitter for traffic building and CRM

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Copyright 2010 Jacobs & Clevenger

Multichannel conversion, testing & attribution

Copyright 2010 Jacobs & Clevenger

The user is brought back to your site for conversion.

Copyright 2010 Jacobs & Clevenger