Transcript Marketing Practices in U.S. Organizations

One-to-One Communication:
Promise vs. Perception
Denise Garcia
Principal Analyst, Media & Advertising
© 2004 Gartner, Inc.
Objectives
• Determine future trends regarding mass, targeted
and personalized marketing
— Competitive advantage or shallow threat?
• Phone survey of 212 marketing professionals
— iMedia, Wharton, Gartner
— Representative U.S. sample: co. size, # of employees,
B2B/B2C, marketing budget from <$1 Million to $50
Million +, split between brand or sales focused strategy
© 2004 Gartner, Inc.
Personalized Marketing Increasing Importance
“Personalized marketing initiatives will be important to our organization in the future.”
30%
25%
20%
15%
10%
5%
0%
Strongly
disagree
2
3
4
S1
5
6
Strongly
agree
© 2004 Gartner, Inc.
Advertising/Marketing
Revenue/Sales
Advertising/MarketingCritical
are Criticalto
to Meeting
Sales/Revenue Growth
Goals
“Advertising and marketing are critical to meeting our organizations sales and revenue goals.”
30%
25%
20%
15%
10%
5%
0%
Strongly
disagree
2
3
4
S1
5
6
Strongly
agree
© 2004 Gartner, Inc.
Complaints Aren't Limiting Customization
“Concerns about customer/prospect complaints have slowed our use of personalized marketing.”
25%
20%
15%
10%
5%
0%
Strongly
disagree
2
3
4
S1
5
6
Strongly © 2004 Gartner, Inc.
agree
Benefits
More efficient use of customer/prospect time
HIGH POTENTIAL
44%
Increased customer retention
43%
Overall increases in revenue
43%
Increase average time spent at site by prospects/clients
42%
More efficient use of employee time
38%
Increased number of web site visitors
37%
Shortened sales cycle
35%
Improved web site registration rate
34%
More efficient use of partner time
33%
Reduced costs
26%
Increased margin of average sale
25%
© 2004 Gartner, Inc.
Techniques in Use
Clickstream data to dynamically change web site content
NOT IN USE
73%
2004 PLANS
23%
Collaborative filtering to classify visitors and serve content
72%
25%
Keyword query to change content
67%
25%
Give web site visitors control over content from set preferences
62%
35%
Demographic personalization to tailor online messages
62%
31%
Geographic personalization to tailor online messages
60%
29%
Registration data to change web site content
59%
37%
Geographic personalization to tailor messages in traditional media
54%
34%
Demographic personalization to tailor messages in traditional media 51%
35%
Address customers/prospects by name in electronic communication
38%
49%
Address customers/prospects by name in print communication
32%
44%
© 2004 Gartner, Inc.
Denise:
Back and forth
Conclusions
• Most organizations realize the value of personalized
and targeted marketing going forward
• Most companies have yet to utilize true targeted and
or personalized marketing
• Privacy concerns are not a real issue for companies
that value personalized marketing
• The majority of organizations understand the strong
linkage between marketing and revenues
© 2004 Gartner, Inc.
Recommendations
Advertisers
• In the short to medium term focus on targeted
marketing rather than personalized marketing
• Initiate ROI measures to evaluate various marketing
strategies
• Use personalization and customization techniques to:
— gain competitive edge
— differentiate your brand
— strengthen customer relationships
© 2004 Gartner, Inc.
Recommendations
CRM and Personalized Marketing Vendors
• Realize the minimal understanding in business about
personalized and targeted marketing strategies
• Be prepared to educate potential customers prior to
evaluating sales potential of prospects
• Assume that early targeted and personalized
marketing efforts will target existing customers
© 2004 Gartner, Inc.
Questions
?
© 2004 Gartner, Inc.