Monday, November 15, 2010

How marketers are using digital media to create a 24/7 conversation with their customers.

At a recent PSAMA Executive Luncheon, I was able to get an inside look at how some marketers are leveraging customer insight and marketing technology to grow their business.

The presentation by Joel Book, Principal of the Marketing Research and Education Group at Exact Target, was titled “Fueling the Conversation: How Smart Marketers Use Digital Media to Attract, Convert and Retain Customers”. In addition to facts and figures on the growing power of email, social media and mobile marketing to attract customers and drive sales, it featured real world case studies to demonstrate how email is being integrated with social media and mobile marketing to dramatically improve response rates.

His discussion was based on what Mr. Book calls “The Triangle Offense of Direct Marketing” – email, social and mobile. Citing a 2010 study by Fair Isaac Corporation which concluded that consumer offers that are personalized, timely and relevant significantly outperform generic offers, he shared real world examples to show us how national and local marketers are using digital technology to deliver personalized offers to customers with dramatic results.

Email is the backbone of customer engagement.
Email is being used as an effective tool to reach customers at every stage of the life cycle. Whether your marketing goal is to attract, engage, convert, serve, renew or reward your customers, email has proven to offer tremendous value. A recent study found that 50% of consumers have made a purchase due to email.

Mr. Book shared eleven case study examples from national and local marketers demonstrating how email is being used to deliver timely relevant messages and offers. Some highlights of these studies included:
  • How Scott’s Lawn Care is using email and mobile apps to teach consumers how to use their products by delivering personalized targeted soil and grass treatment recommendations based on the geographic region of the customer.
  • How Best Buy uses a pre-planned series of three emails to build customer loyalty and purchase. Email #1 at the time of purchase provides education and help on how to set-up and use the item(s) you just purchased; Email #2 at 7-14 days provides special offers on accessories and services to complement or enhance the enjoyment of the item(s) you purchased; Email #3 at 21-28 days invites you to share your opinions to help other shoppers through reviews and ratings.
  • How Volvo Construction Equipment uses a monthly email newsletter to nurture leads, aid decision-making and support their dealer network.
Marketers are discovering new ways to integrate email + social media to fuel the conversation with their customers.
With 500 million active users on Facebook, 190 million active users on Twitter and 70 million active users on LinkedIn, social media offers a great potential to build relationships with current and potential customers. Case studies in this section of the presentation included a look at how Papa John’s Pizza uses email in combination with Facebook fans and special event sponsorships like NCAA March Madness to drive brand loyalty and sales. Other case studies showed how user-generated content is being used by an outdoor recreation service to build excitement for their river rafting trips, and how Whole Foods is using email and Twitter to deliver daily special offers by store managers for their local store and customer base.

Email + mobile can drive instant awareness and instant sales.
One of the more interesting case studies presented by Mr. Book was a test promotion at three Major League Baseball parks for Scott’s Lawn Care. Scott’s used direct response text messaging to drive subscriptions to their Lawn Care newsletter through an in-game announcement offering a free Groundskeepers Guide to anyone who wanted their home lawn to look as good as the outfield grass in the park. Fans were asked to text a special number to have the Groundskeepers Guide and newsletter waiting in their inbox when they got home that evening. Not only was that promotion successful in attracting new subscribers, Scott’s was contacted by a national home improvement chain to develop customized versions of their grass seed – Fenway Blend in Boston, Riverfront Blend in Cincinnati, etc.

Behavioral modeling allows email to deliver personalized messaging to drive retail sales.
In this section of his presentation, Mr. Book shared case studies from Best Buy, The Home Depot, Johnston and Murphy and others to demonstrate how analytics are being used to personalize offers relevant to consumer profiles and past purchases. He also made a strong case for using analytics to re-market to online customers who had abandoned their shopping cart without completing a purchase. He cited a January, 2010 study which concluded that 69% of e-commerce purchase transactions are abandoned before checkout completion and then showed findings from an MIT study which found that “real time re-marketing to website abandoners yields up to 50% conversion of those who had abandoned”.

Mr. Book concluded his presentation with a re-statement of his introductory premise –smart marketing today requires a 24/7 conversation with your customers. We are living in a new era of direct marketing where “serving has become the new selling”. As noted in a 2010 report from Booz Allen Hamilton, “The mix of media channels has shifted from a one-way broadcast model to a set of dynamic two-way media forums”.

Tomorrow’s most successful marketers will be those who recognize and respond to the need to market to a segment of one, with messaging and offers that are personal, relevant and timely.

Email, social media and mobile marketing offer a variety of ways to begin and carry on that conversation. Are you encouraging your clients to talk with and listen to their customers 24/7?