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Electronic Marketing. NCDM Sunday December 5, 2004 8:30 a.m. - 11:15 a.m. Gaylord Palms Orlando. Arthur Middleton Hughes Vice President / Solutions Architect KnowledgeBase Marketing, Inc. What KnowledgeBase Marketing Does. Data Access And Analysis Software.
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Electronic Marketing NCDM Sunday December 5, 2004 8:30 a.m. - 11:15 a.m. Gaylord Palms Orlando Arthur Middleton Hughes Vice President / Solutions Architect KnowledgeBase Marketing, Inc.
Data Access And Analysis Software Marketing Staff -Access By Web Customer Transactions Marketing Database Inputs from Retail, Phone, Web How a modern database system works Appended Data Website
Electronic Marketing • No longer a novelty • Everyone must do it • It is mainstream marketing
Where is your web shop? • In should not be a separate department or in IT. • It should be part of marketing or customer service • Because it is the basis for electronic marketing
The web is the greatest direct marketing vehicle ever invented
Web sales are not great • By 2007, sales will be 2.9% of retail • Add travel and that is 4.4% • Growing by 26% per year, but it started from nothing.
Why is the web important? • Affluent people – Those with incomes of $100K or more access web daily • Purchasing research – all affluent buyers research the web before they buy anything major: houses, PCs, vacations, cars… • Reviews – Movies, restaurants, theatre Most of this does not show up as web sales.
An Information Medium • So the internet is not a sales medium • It is a research and info medium • It is not yet a great advertising medium like TV or Radio or Print • People who are on the internet already have in mind what they want. • They use Google to find it.
What do you need to have? • A search box
Most search boxes are inadequate • Keep track of what people enter in the box. • Update your database constantly to keep up with your customers • Make it easy to find what you have. • And, perhaps, add stuff that they want and you don’t now sell
What do you need to have? • A Search Engine Strategy
How Google Does it • The Spider – visits millions of web sites, follows links within the site, stores them • The Index – copy of all pages found by the Spider. • The Search Engine – sifts through the Index to find matches to your query, and ranks them.
Shopping Cart • You must have one, even if you do not sell on line. • Provide white papers • Provide catalogs • Provide articles • Goal: find out who people are, and communicate with them
On Line Etiquette • Screen: Thank you for your order • Email: Thank you for your order • Your order was shipped: Track # • Did your order arrive OK? Corner grocer used to do this Before the web, we could not afford it
Now, this is recognition! Welcome Back, Arthur!
Transaction Message Rules • Avoid being mistaken for SPAM • Be a customer service representative • Prevent customers from telephoning If you fail the first rule, you will fail the other two.
How do you know you need these messages? • Set up a control group of customers that do not get the messages. • Compare their retention and sales rate with customers that get the messages • Figure out the boost to Lifetime Value
Provide what the customers want • 2002: Hewlett Packard site did not have toner for their LaserJet 4 Printers. • Today HP site has supplies for all HP products. They have learned!
Let customers register without hassle • New York Times used to require you to register. It was a nuisance. They have wised up
Provide Live Help • Once a novelty. Now essential. • Live text. One agent handles 4 or more • Which company has life help? • Microsoft? • IBM? • HP? • Chrysler?
Newsletters are skimmed • Due to SPAM, few read any newsletters • Most are deleted. The others are only skimmed. • Newsletters must be: • Informative • Convenient • Timely
What people look for in newsletters • Prices and Sales • Personal Interests and Hobbies • Events, deadlines, dates. Relevance in the past is not enough.How relevant is your newsletter today?
How to use electronic marketing • Insist on capturing emails. • Build and maintain a database of customers, past customers, and prospects • Make the web very, very easy to use. • Use web communications to build loyalty and repeat sales
What Harrah’s Casino Did • For years, Harrah’s sent regular mail to woo customers with cheap hotel rooms • Then it linked the database to the web allowing customers to book hotel rooms at a discount, capturing emails. • Sept 11, 2001 occupancy fell by 25% • Massive emails with bargain offers raised it to 100% by Sept. 20.
What Bank of America Did • Was spending $100 million annually on paperwork for retirement program enrollment. Changes took months. • Moved all programs to the web. • Saving about $50 million annually. • Most processes now take only a few minutes instead of months.
What Ryder System Did • $5.3 Billion company, terrible web site • 10 clicks to track a shipment. No search mechanism. • Revised site. Now each shipment is only one click away. Super fast searches. • Result: many new customers who need to track their shipments every day.
Personalization • Link your database to your web site • Use it plus cookies to modify the content of your website and newsletters
Hewlett Packard Personalizes • 4.5 million HP e-newsletters sent out per month. • Each personalized by recipient’s profile • Choose from hundreds of white papers • And 87 different HP product lines • Four marketing teams: consumer, small business, public sector, enterprise
Does personalization pay off? • HP proved with control groups that they got 3 to 10 times higher response rates with personalization than their previous newsletter of the month
Emails for Cross Sales • Airways Communication ran a personalized email campaign for First Annuity to 400 Annuity Brokers using ExactTarget programs • Investment $8,000 • In 60 days the campaign produced $1,000,000 sales from nine new contracts • Program now used by Sun Life and National Western Life
Boosting Attendance • Churchill Downs increased attendance by 3% (over a control) by sending emails • Retention rates up 8% over control using dynamic emails
Contacting Agents • Kestler Financial Group contacts 5,500 independent insurance agents • New emails offer personalized help to agents in attracting business • Results: Open rates 50% click through up to 24% • Monthly sales increase $5.5 million
Viral Marketing Susan: If you want to have some friends come to Hawaii with you, list them here and if they decide to go, we will give each of you a 10% discount on your trips. Viral Email results in more emails and data capture Arthur Hughes ahughes@computersrategy.com Helena Errazuris micifuz2@aol.com Dudley Foulke dudleyf@hotmail.com Dear Helena: Rick and I are going to Hawaii on August 7th. We thought it would be great if you could come with Us. We are staying at the Maui Surfside which is a great deal. To find out about it Click here! Hope you can Join us! Susan Database
HP On Line Survey • Hewlett Packard tested an on line survey to promote their network printers. • Direct mail drove responders to a web site that contained the survey. Responders received $10 in Pizza Hut coupons. • The survey provided a special HP offer for network printing solutions, product links, and e-subscription information. Competitive Advantage Through Advanced Technology
Universal Music eMarketing Campaign • UMG tested an e-marketing strategy to increase record sales of a new album release for Lucinda Williams • The campaign delivered more than a 960% increase to the Lucinda Williams fan base • Reached nearly 200,000 fans and prospects with email communications • Won DMA Gold Echo Award in 2002
Get customers to join a club • A company sold sporting goods created a member club. • When DB was built they learned that: • Club members bought 11 times more than non club members. • In two years, 81% of club members became multi-buyers.
