Crossing the Line: Unlocking the Value of Online Relationships

1. Crossing the Line:Unlocking the Value of Online Relationships Michael Weston Managing Director, Silverpop (EMEA) Internet World – 1st May 2008 (Stand E555)

2. What’s this talk about? • Lines • above / below / through / across ... • redefine the line • Crunch • what’s happening to your marketing budget? • Habit • break the re-acquisition cycle • The Seven Steps • tactics to recession-proof your marketing Image: Addiction by Trond Elling Haveland, Norway

3. Drawing the line – 20th Century model Cinema Broadcast TV Advertising Posters Print Radio Direct Mail Sales Promotion Coupons Direct Marketing Exhibitions Telesales Personalised

4. The 21st Century model: crossing the line Acquisition Conversion Retention Search Email Advertising Affiliate Programme RSS Banners Mobile marketing Sponsorship Loyalty schemes Direct Marketing Broadcast Personalised

5. Crunch

6. What’s happening to your marketing budget?

7. Habit

8. Breaking the habit “We can no longer rely on ‘newbies’ – i.e. market growth – to grow our business. We’ve got to make sure the people we already know come back for more.” a leading UK internet retailer, July 2007 “I’m fed up with paying Coupon Sites to bring back people who are already customers, at a discount... and then claim 30% of the sale!” Another leading UK internet retailer, April 2008

9. 7 Steps

10. The Seven Step Programme – Step One • ROI: Identify which measurements matter • Total sales revenue generated by marketing • Incremental sales revenue from existingcustomers generated by marketing • Conversion rates • Time to conversion • Advocacy (i.e. Customer-get-Customer etc) Digital budgets are forecast to stay the same or grow for 60% of European marketers in the current year thanks to trackable ROI, immediacy of return and the ability to test (and implement) quickly.

11. The Seven Step Programme – Step Two • Put your customer first • Establish (two-way) communicationwith your customers • listen to their feedback • communicate on their timetable • segment and target The US DMA shows an ROI of $57.25 for every $1 spent on email marketing... more than double the ROI of other digital marketing channels.

12. The Seven Step Programme – Step Three • Gather actionable data... and use it! Emails that include Web analytics data can generate nine times more revenue than one-size-fits-all broadcast messages. Better still, much of the work required to do this can be automated.

13. The Seven Step Programme – Step Four • Co-ordinate messaging across channels • Your customers will not view your TV, press or direct mail activity in isolation from your online activity. Numerous case studies reinforce the power of cross-media messaging • e.g. DABS show heightened purchase from customerswho receive both email and direct mailed catalogues • Tying data together from attributable offline activity with all your online channels will deliver a clearer, more targetable picture of your customers Forrester March 2007: email customers spend more online than non-email customers. They buy on impulse from email promotions. They forward offers to friends and family.

14. The Seven Step Programme – Step Five • Prioritise email as your marketing hub • Three quarters of marketers who integrate email with other direct activity show improved campaign results • 85% of marketers who combine Web analytics data to power targeted life cycle emails show a heightened return on investment

15. The Seven Step Programme – Step • Use quick test-and-implement across all your marketing • Test your assumptions • does a visit to Support necessarilymean a dissatisfied customer? • which offers particularly resonatewell with which types of customer? • does time of day/day of week matter? • can you improve results by following upcustomers who opened but didn’t purchase?

16. The Seven Step Programme – Step Seven • Feedback is a fact of life: embrace it • Your customers don’t see your emails or Web site in isolation... ... so don’t isolate their responses in silos! • Track everything and build a 360o picture • email clicks and opens, post-click analysis,Web analytics, call centre feedback, purchase history... • Forward to a friend • make it easy and measure it • Blogs, Social network sites • Customer reviews on your website or in emails A Bazaarvoice case study in August 2007 showed an increase in conversion rates of 35.7% for the same products after introducing customer reviews on the Web site* * - Source: Bazaarvoice case study, August 2007

17. When the going gets tough... • When marketing budgets come under close examination, focus shifts to what can be shown to work • Digital marketing is fast, measurable, effective and improvable via testing • Improving conversions to sale will counter high cost of acquisition • Keeping the customers you have – and selling them more things more often – will make your budgets deliver more value • If you do better holding on to your customers it’s harder – and more expensive – for your competitors to prise them away from you

18. Silverpop serves market leaders across all sectors

19. Any questions? BLOG: http://www.e-consultancy.com/news-blog/author_44081/michael-weston.html WHITE PAPERS AND STUDIES: http://www.silverpop.com/practices/index.html Thank you