Transcript Making Multi-Channel Marketing Pay

Making Multi-Channel Marketing Pay
Maximizing Cross Channel Programs
Vernon Tirey
Sr. Vice President, Solutions
For:
Note: the information in this presentation is considered
proprietary and does require written permission before it
can be reproduced for any purpose other than to act as
reference.
Agenda
1. What is Multi-Channel Marketing
2. Why is Multi-Channel Marketing Important
3. How Do I Implement Effective Multi-Channel Programs
4. What are the Multi-Channel Land Mines To Avoid
5. Q&A
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Tell Me …
What is Multi-Channel Marketing?
Does it include…
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TELEVISION
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MAGAZINES & NEWSPAPERS
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WEB
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SKY WRITING
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MAIL
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MOBILE MARKETING
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ENGLISH CHANNEL
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OUTDOOR ADVERTISING
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EMAIL
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CATALOGS
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RADIO
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SMOKE SIGNALS
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TELEPHONE
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DRTV
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POD CASTING
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Answer:
Sure - Multi-Channel Marketing can be all
that and more!
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Multi-Channel Marketing is Multi Touch
Where are you in the 5 levels of your marketing evolution?
Shared
Value Focus
Relationship
Optimization
Multi-Channel
Marketing
Participant
Focus
Relationship
Marketing
Company
Focus
Target
Marketing
Mass
Marketing
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Right Value Exchange
Right Offer,
Right Person,
Right Times,
Right Mix of Channels
Right Offer,
Right Person,
Right Time
Right Offer,
Right Person
Right Offer
For Some
Multi-Channel Marketing is Complex
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Multi-Channel Marketing Supports - the Buyer Life-Cycle &TCM
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What Will We Cover Today
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Why is Multi-Channel Marketing
Important?
Multi-Channel Marketing Works!


People Search before they buy:

70% shop for cars online

92% search before they buy electronics
People want buying options:


Your best customers are multi-channel:


55% of retail customers think it’s important to have the option
to complete orders in the store, and on the web, and through a
call center line, regardless of original contact channel
Typically 90% of top retail customers are multi-channel shoppers
Multi-Channel Marketing Delivers Better Results:

Improved Retention

Increase Revenue per Purchase

Increase in Products Sold per Customer
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What Makes it Work - Relevant Content is important
© Merkle, Inc.
Note: the impact estimation was based on qualitative and quantitative estimations across Merkle’s
numerous clients over years, actual results may vary by industries and clients
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What Makes it Work - Streaming & Triggers Are Important
Multi-Touch allows marketer’s to leverage a window of opportunity found in new
customer relationships.
Typical Results
Right Offer, Right
Person,
3x to 5x
Right Time
Right Offer,
Right Person
Right Offer
For Some
1.5x
1x
Triggered and Tailored Messages
Top Cable Provider: Customer Upsell Program
Before: 1 version of letter monthly
After:
45 Versions of letter triggered weekly (varies offer, copy, images, etc. by segment)
Results: 3x to 10x Improvement in response
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How Do I Implement
Effective Multi-Channel Programs?
• Customer Streams
• Multi-Channel Marketing
• Triggers
• Relevant Communications
Critical Guidelines – How Do I Start?
 Start Simple
 Measure Results
 Continually Test
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Typical Program Approach
The program approach delivers diminishing returns because no single program will
meet all customers needs and no successful program lasts for ever.
Diminishing
Returns
Program 1
Customers
Reached

Program P&L perspective

Focus is on finding more programs that generate better results

Each Program is a stand-alone effort
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Why Adopt Mail Streams?
Diminishing
Returns
Share of
Wallet
Program 5
Program 4
Program 3
Program 2
Program 1
Customer
Reached
Profitable
Growth
Customer Streams
Increasing
Returns
Customers
Needs
Satisfied

Establish a customer P&L perspective

Better align programs with customer needs & values to improve
business results

Improve synergies and efficiencies between programs
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Manage Streams
To effectively manage customer streams not only will establish customer and program
strategies by stream but also align the organization to manage those streams.
Day 1
Q1
Five Leverage Points
Q2
Q3
• Response Time
• Sequence
• Pacing
• Frequency
• Channel
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Q4
How Do We Create a Stream: 1, 2, 3
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1. Customer: Customer Segmentation to Drive Streaming
Three levels of sophistication for developing streams of communications
Best Practices
Basics
Level
Segment
Criteria
1
2
3
Profile/Firmographics or
Response Propensity
Purchase Behavior
or Value
Potential Value
or Need
• List
• Geography
• Customer Type (Consumer, SMB)
• Propensity Score
• Dollar– H, M, L
• Transactions – H, M, L
• Units – H, M, L
• Need – Usage Type
• Wallet Share
• Cost to Convert
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2. Channel: Multi-Channel Marketing Challenges
What inhibits you from doing multi-channel marketing?
Source:
Direct Magazine Webinar, June 2006
Survey of 162 participants
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Driving Multi-Channel Success
Identify the X-Channel Benefits
• What Channels are available?
• What are the Customer/Prospect Channel Preferences?
• What is the Cost/Value of:
– Channel (mail vs. email)
– Customer
– Program
– Channel, Customer, Program Combination
• What is the high level customer experience design (streams)?
• What is the detail design (content, timing)?
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Customer Contact Flow
Retention Starts before the Sale!
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Quote Request
New Quote
New Quote Request
Converts
On-Boarding
Day 0
Assumed X-date
Quote provided
Day 2
Day 5
Did prospect
convert?
Day 14
Non-Convert
Re-Quote
Quote
Request
via
Phone or
Web
Other Product
Cross-Sell
Product
Awareness
Message
Follow-Up
Recipient
variable
messaging
OBTM
OBTM
Direct Mail
Direct Mail
Email
Email
CURRENT
Applications per week
Est. Conversion Per week
Conversion per week
Additional accts per week
Value @ $400/account
Annual $ impact
11,000
33%
3,630
Low POTENTIAL
11,000
35%
3850
220
$ 88,000
$ 4,576,000
Target POTENTIAL
11,000
37%
4,070
440
$ 176,000
$ 9,152,000
Key Metrics
•Number of New Accounts
•Percent Conversion
•Cost per New Account
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On-Boarding
OnBoarding
On-Boarding
Day 1
Accepted Quote
Day 14
Welcome Kit
Prompting for any
unsubmitted docs
All Docs
received
Mail
Welcome
Kit
·
·
·
·
·
·
·
Email
Notification
Welcome
Kit in mail
Letter
Legal
Disclosure
Required
Docs
ID Cards
Bill
Welcome Kit
Contract
received within
Policy
7-10 days
Declarations
Day 28
Or
Thank You + 7
Day 21
Y
On-Boarding
Cont’d
Drive to
Eservices
“All Set”
Thank You
Direct Mail
OBTM
OBTM
Direct Mail
Email
Email
Direct Mail
Re-Quote
Cycle
Email
CURRENT
Key Metrics
•# using e-services
•Avg. # of policies/household
•# Referrals
•Retention rate
•Cost per policy
New accounts per week
Inc. % retention per week
# additional accounts
Value @ $400/account
Annual $ impact
Low
POTENTIAL
3,630
2%
72
28,800
$ 1,497,600
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Target
POTENTIAL
3,630
4%
145
$ 58,000
$ 3,016,000
Business Opportunity
Total Customer Experience
Conservative
Projections
Revenue
Cost
ROMI
%ROMI
Expected
Projections
23,259,794
42,590,037
8,001,744
5,357,030
$ 15,258,050 $ 37,233,007
190%
695%
* Cost includes printing, mail shop, postage, email, reporting and account management fees
Other Benefits
• Increased accounts per household
• Reduced cost per account
• Improved customer satisfaction
• Improved brand value
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Who’s Thinking about Triggers
What additional (or advanced) execution campaign
techniques that you are planning to apply in the future?
Select all tat apply
2006
Event-triggering based on lifecycle data
66%
Event-triggering based on webs analytics data
51%
Enhanced/greater campaign automation
44%
Multichannel capabilities
39%
Additional testing and optimization
38%
Other
8%
Source Responsys©
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3. Programs: 5 Types of Triggers
Enabling Triggered Events – CTI enables five types of marketing triggers:
Time-based
Elapsed Time or Calendar
Life Stage-based:
Driven by Life Events in the Household
e.g. moving, married, child born, college, retirement,
Event-based:
Driven External Events: merger/acquisition, change in
market conditions, regulatory actions, competitor actions
Behavioral:
Driven by Customer or Household Behaviors: open an
account, repeat purchase, cancel and order, call customer
service repeatedly, visit the web site, late payments…
Analytical-based:
Web Analytics or Mail Transactions, or Predictive/Propensity
Models
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Personalization Supported by Relevant Content
Examples of Online and offline communications content rendered dynamically
Print
With Granular
Dynamic Content
Personalized
to prospect
Dynamic call
to action
based on
strategy
tests, promo
codes, 800#
tracking
Email
Dynamic
copy and
images
based on
prospect
attributes,
strategy
tests, &
product
features
With Granular
Dynamic Content
Offer
Variations
based on
eligibilities,
propensities,
and history
Variable Legal Disclaimers
Based on Offers and States
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Dynamic
Table of
Contents
Dynamic
page links
based on
strategy
tests &
product
features
Personalization Supported by Relevant Content
Examples of Online and offline communications content rendered dynamically
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Leveraging Preference Centers
Helping the participant share their preferences
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Relevant E-mail
Statements
Dynamic Images
Based on Customer
Offer Specific
1-800#’s to Facilitate
Response Tracking
Copy Based On Customer
Behavior & Demographics
Individual Information and
Point Balances
Dynamic Table of Contents
Featured Products Vary By
Customer and Point Eligibility
Dynamic Offers Based on
Next Logical Product and
Customer Behavior
Dynamic Content
Based on Loyalty Levels
And Customer Information
Variable Legal Disclaimers
Based on Offers and States
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E-Newsletters with Dynamic Content
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Case Study
Banking on Timely & Relevant Marketing
Top 5 US Bank
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Design Hierarchy
Level 1: Solution
Solutions align marketing strategy with the buyer life-cycle. See the 5 generic solutions below.
Acquisition
Level 2: Program
Many Programs can
be found within a
Solutions. Here we
see a high level design
for an On-boarding
Program.
OnBoarding
X-Sell
Up Sell
Loyalty &
Service
Win Back
DAY
7
DAY
45
DAY
75
DAY
90
DAY
180
DAY
360
Welcome
Activate
Entrench
Grow
Celebrate
&
&
&
Engage
&
&
Level 3: Tactics
A Programs is
typically made up of
many Tactics. This is
a high level design for
the Entrench Tactic.
Level 4: Touch
Online Banking
Entrench Tactics:
• Direct Deposit
• Online Banking
• Bill Pay
• Steady Save
• Add-on Accounts
Day
60
Online Banking 1
&
Yes
Convert
No
Yes
Day
No
Convert
END
+15
Online Banking 2
or
Resp
+1
Thank You
END
or
A tactic can be made up of many touches and is a single communication (email, mail, phone,
web page). Touches can have many versions
For illustrative purposes only
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Onboarding Program For a New Checking Account Customer
 Retain New Customers
 Address X-sell challenges
Over 80% of All
Cross-Selling
Within First 6 Months
 Stream of Tailored Messages
 10,000 of versions
Initial
Trigger
New
Account
Opened
Day
2
Day
15
Day
45
Welcome
Message.
Validate
Everything OK
+ Q&A Info.
Online
Banking
Direct
Deposit
Day
75
Overdraft
Protection
Day
105
Day
135
Check
Card
Scheduled
Transfer
Each Customer Segment
Has A Unique Stream
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On Boarding – 5 parts: More than a Welcome Kit!
Most common Onboarding Program error: skipping steps.
OnBoarding
1. Welcome
 Welcome
2. Activate
 Assure
product/service
customer
adoption
 Make a
personal
connection
3. Entrench
 Reinforce the
relationship
with
4. Grow
5. Engage
 Cross-Sell
 Monitor
 Up Sell
 Dialog
 Earn & Burn
-repeat purchase
-peripherals and
 Complete
-education
the order
CASE STUDY: Bank Checking Account
 Welcome Kit
- starter checks
– bank card app
– drive to web
 Personal
Preference Page
 Complete
 Make a deposit
 Refer-A-Friend
 Write a check
 Over Draft
 Use Bankcard
 Drive to Web
Protection
 Online Banking
 Bill Pay
 Cross-Sell Bank
 Behavioral
 Up Sell Account
 Newsletters &
Products
Type
Triggers
Statements
 Loyalty
Program
the order
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Delivering Relevant Messages
Leveraging Templates & Dynamic Content
 Easy to use Templates with Content Blocks
 Personalization Variables in Text
 In-line Editing & Formatting
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Results

Typical results after 6 months of Onboarding Execution

Retention Rate: Increase 15%

Product Ownership Ratio: Increase 120%

Deposit Balances: Increase 33%
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Land Mines



Fear or Over confidence – (this is a requirement to compete):

Get top down and bottom up support

Don’t try this with out an experienced multi-channel marketer

Don’t forget your DM fundamentals
Innate Complexity makes it “Hard to Do”:

Start simple

Stay away from one shot programs until you become proficient
Multi-Touch Points Can Create Clutter:

Coordinate your communications

Prioritize efforts based on impact (don’t start with creative)
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Please Contact Us with Questions!
Vernon Tirey
Sr. Vice President, Solutions
Click Tactics
[email protected]
781-346-3838
Thanks!
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