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Highlights from the Direct Marketing to Business Conference. HSR.edu May 25, 2006. Greg Holliday Jennifer Zieverink. Agenda. Conference overview and key takeaways Seminar Content Building a BtoB Direct Marketing Database BtoB Creative Secrets to Lift Response

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highlights from the direct marketing to business conference

Highlights from theDirect Marketing to Business Conference

HSR.edu

May 25, 2006

Greg Holliday

Jennifer Zieverink

slide2

Agenda

  • Conference overview and key takeaways
  • Seminar Content
    • Building a BtoB Direct Marketing Database
    • BtoB Creative Secrets to Lift Response
    • Turning Every Contact into a 1-to-1 Sales Opportunity
  • DMA Membership Details
  • Q & A
slide3

Conference Overview

  • Attendees
    • BtoB marketers who seek to make more effective use of direct/interactive marketing
  • Content organized around three areas
    • Prospecting and Lead Generation
    • Lead Qualification and Conversion
    • Customer Retention & Growth
  • Sponsors
  • Exhibitors
slide4

Key Takeaways

  • BtoB direct marketing is unique
  • Many types of valuable data is now available
  • Analytics is important, but most are using very basic statistical techniques
  • Average DB marketing technologists less tech savvy than HSR
  • Lots of great marketing communications opportunities, AFTER you build a good database
building a btob direct marketing database

Building a BtoB Direct Marketing Database

Greg Holliday

Jennifer Zieverink

what s a marketing database
What’s a Marketing Database?

An organized collection of data about individual customers, prospects or suspects that is accessible and actionable for marketing to support both strategic and tactical decisions across all marketing channels

MDB

slide7

Database Marketing

  • Uses a MARKETING DATABASE as the vehicle for predicting behavior, measuring media performance, and for storing the transaction data so that list selection, segmentation, and analysis can be conducted.
  • Is data-driven - one step informs the next in a logical, testable, observable and accountable way.
the three r s of relationships
The Three R’s Of Relationships

TRIERS

1 time member

BUYERS

Transactor

CUSTOMERS

Loyalist

slide9

Ultimate Objective of A MDB

To serve as the single repository for all data identified as relevant to meet the goals ofmarketing that are actionable and accessible for:

  • Capturing data from all channels
  • Segmentation and query
  • Modeling and predicting behavior
  • Measuring media performance
  • New product simulation & testing
  • Multi-channel marketing
the three c s of database marketing
The Three C’s Of Database Marketing
  • DEMOGRAPHICS
    • Who they are and where they live
  • PSYCHOGRAPHICS
    • What they buy and what they like
  • INFOGRAPHICS
    • What they read and how they communicate
customer vs prospect databases
Customer Vs. Prospect Databases
  • Customer datatells you about the past
  • Prospect data tell you about the business opportunity
  • What else do they buy?
  • Where are they going to get it?
  • What’s important to them?
  • If you marketed differently, would it
  • make a difference?
  • New products and markets
data helps you solve the puzzle
Data helps you solve the puzzle

Good

New Products to New Customers

New Products to

Existing

Members

New Products to New Members

  • How will you grow?
  • More volume of same
  • members
  • More to new Members
  • New offerings to new
  • markets

Typical

Same products to New

Members

Current State

Status

Quo

Typical

Good

with an mdb marketers can
With An MDB, Marketers Can

Use a set of tactics to “speak” - with a single voice - throughout the enterprise - by having a complete picture of how the customer interacts with their company

The Tactical

Tool Set

slide14

Magazines

Customer Data Touch Points

Mail& Catalog

A

complete

picture of

the customer’s

interactions with

the enterprise

transactions

The MDB

Website

Marketing

FAX

Direct

Sales

Customer

Service (transactions)

&Out Bound

Telemarketing

transactions

Radio

DR TV

the marketer
The Marketer
  • Should have access to integrated information
  • MDB solution tools help the marketer to be “intelligent” to develop profitable marketing tactics
use your mdb to
Use Your MDB to:
  • Have complete & current info on customer activities
  • Measure program impact and provide a baseline for improvement
  • Prioritize expenditures on high potential prospects
use your mdb to1
Use Your MDB to:

CAPTURE / CODE THOSE WHO:

Tell you they’re not …………

Don’t match the profile or model

Outside the legal parameters of the offer

Fall below the acceptable cut off

slide18

Market To The Segments

THE BEST

80% OF REV.

GOLD

FOCUS ON

RETENTION

SPEND YOUR $$ HERE

MOVE UP

CAN GO EITHER

WAY

THE NEXT BEST HOPE

DEPENDS ON

MKTG. EXPERTISE

REACTIVATE OR

ARCHIVE

LOSERS

slide19

Develop Event-Triggered Campaigns

MDB

SELECT PROSPECTS FOR LEAD GEN. MAILING

GET RESPONSES

UPDATE TO MDB

H

W

C

C

MDB

EVENTS ARE

TRIGGERED

###

Use an

Algorithm or use

Birth date, etc.

shifting from product service to customer centric
Shifting From Product / Service to Customer Centric

Service Address

Invoice Address

vs.

Buyer / User of Product / Services

what kinds of customer information are companies maintaining
What kinds of customer information are companies maintaining?

ACTIVITY % Companies Using

2000 2002

Individual $ Amount of Purchase 68% 86%

# of Annual Purchases 45% 75%

$ Value of Annual Purchases 51% 81%

Recency 49% 84%

Frequency 51% 77%

Source of Original Lead/Contact 66% 80%

Competitive Products Used 25% 45%

SIC Code 36% 41%

Promotional History 36% 56%

Demographic Overlay 25% 37%

Prospects 72% 76%

Source: Richard Levy, DIRECT magazine

the cast of possible characters we want to contact
The cast of possible characters we want to contact
  • Specifiers
  • Influencers
  • Users
  • Decision makers
  • Mailroom supervisors
  • Gatekeepers
  • Purchasing agents
btob internal data sources
Types of data sourced

Accounts receivable records

Shipping and order information

Credit files

Sales leads, sales contacts

Inquiries/referrals

Channel marketers end user data

Web data

Customer service systems

Where it can come from

Legacy systems

Operating systems

Sales managers desktops or notebooks

Resellers shipping systems

External rented and purchased data providers

…yes, it can be a bit of a nightmare

BtoB internal data sources
typical btob data fields
Contact information

Title, function

Enterprise v. site

Parent company

SIC or NAICS

Year started

Public v. private

Revenue/sales

Employee size

Credit score

Size of Yellow Pages ad

Purchase history

Purchase preferences

Fiscal year

Budgets, purchase plans

Survey questions

Qualification questions

Promotion history

Service history

Source code

Unique identifier, DUNS #

Typical BtoB data fields

Note: Italic items come from internal sources.

key business data suppliers
Key business data suppliers
  • Experian
    • 14 million US businesses
  • Dun & Bradstreet
    • 14 million US businesses
  • InfoUSA/Donnelley Marketing
    • 12.5 million US businesses
business compilation sources
Business compilation sources
  • Yellow Page Directories (5200)
  • Business White Page Directories (4000)
  • Chamber Industry Directories
  • Secretary of State Files
  • Courthouse new business listings
  • Annual Reports and 10-K’s
  • SEC Filings
  • Business Journals and Periodicals
  • Internet Research
  • National Change of Address (NCOA)
  • Zip Code Changes
  • Area Code Changes and many more…
building a channel partner database additional fields needed
Sales rep assigned

Territory covered

Products covered

Type of channel partner (top tier, second tier, reseller, distributor, etc.)

Years as channel partner

Industries served

If channel data can link to the end user, bring over the company DUNS/ABI or company ID# for end user

Building a channel partner database: Additional fields needed
how to purchase overlay data
How to purchase overlay data
  • Most popular overlay data fields:
    • sales volume
    • number of employees
    • SIC/NAICS
  • Method:
    • Only append after exhausting all internal sources
    • Clean your database
    • Carefully select a data source
    • Pre-test the match rate
    • Test appended data for validity and response
    • Based on results, calculate the value of the overlay
  • Consider compiling custom data
demographic and credit appends
Demographic fields to append

Carrier route: identifies the individual mail carrier, for maximum postal discounts

Years in business code: indicates stability and purchasing needs

Life cycle predictor: determines whether a growth, static or declining business

Employee size: indicates buying needs/process

Annual sales: indicates buying needs/process Source: Experian

Credit fields to append

Derogatory legal indicator: tax liens, bankruptcy, collection problems

Legal liability amount: dollars of legal liability

UCC data indicator: indicates company has secured a line of credit by collateral

Recent inquiry date: indicates that company is seeking credit

DBT of combined trade totals: average number of days of late payments

Demographic and credit appends
prizm like cluster profiles for btob
PRIZM-like cluster profiles for BtoB
  • D&B offers 22 distinct, mutually exclusive profiles created from combining firmographics and trade variables
  • Branches of a parent company are assigned their own cluster, for site level marketing. Also aggregated at parent company level.
  • Example: Cluster 21: Solid & Sons (554,000 businesses)
    • This group of businesses is marked by its superb financial ratings and above average trade activity. A majority of them are corporations (but at a single location) with an average of 20 employees on site, and about 15 years business experience. Their above average trade activities are typically with creditors, wholesalers and trucking/warehousing. Among the top 10% of this very stable and active cluster are plumbing/heating services, doctor’s offices, construction companies, wholesalers, and other business services. About 40% of them can be found in Southern US.
  • Ruf Strategic Solutions offers 114 B-to-B clusters
  • Claritas also offers their Prizm Cluster Codes for B-to-B
business information is volatile
Business information is volatile

During the next two hours (based on D&B’s database):

706 firms will move

578 businesses will change their phone numbers

514 suits, liens or judgments will be filed against companies

250 business phone numbers will be disconnected

120 new businesses will open

120 D&B credit ratings will change

120 corporate CFOs will change

60 companies will change their names

60 businesses will shut down

10 firms will file a bankruptcy petition

1 company will change ownership

slide32

Data decay by element

  • Decay rates of key business data elements over a one year period.
  • --From an internal study conducted by D&B.
data hygiene techniques
Data hygiene techniques
  • Train and motivate customer-facing personnel to update the data
  • Use data-cleansing software, internally or externally
  • Standardize data and train on the rules
    • IBM versus International Business Machines
  • Eyeball the data regularly
  • Allow customers access to their records on your web site, so they can make changes
benefits of good hygiene
Benefits of good hygiene
  • Improve response by reaching more people
  • Lower costs with less waste
  • Improve customer satisfaction and company perception

A 2003 report from the Data Warehouse Institute said that bad customer data costs U.S. businesses more than $600 billion a year in postage, printing and staff overhead—not to mention lost opportunities.

slide35

Requesting corporate mail room to notify mailer of personnel changes via mail or phone response to “bundle letter” accompanying the catalogs.

--Courtesy of Paragon Direct

graphic rendition of the duplicate company name distribution
Graphic rendition of the duplicate company name distribution

Here is the same data, in graphic form. Nearly 20,000 unique companies were only listed once, which is good. But 78% of the records represented duplicate companies!

slide40

Current State of BtoB Database Marketing

  • General consensus: technological tools are available to mine, retrieve, integrate and use marketing information
  • Few companies have achieved the ideal of integrating customer data into a marketing system to be able to do database marketing
  • Most are still preoccupied with the challenges of basic data management!
  • So, now is the time for marketers and their IT colleagues to learn how to use this technology
btob creative secrets to lift response

BtoB Creative Secrets to Lift Response

Greg Holliday

Jennifer Zieverink

slide42

BtoB Creative Secrets to Lift Response

  • Mythbusters on BtoB creative techniques
  • Critical elements of direct mail creative
  • The 7 Rules of Creation

Nancy Harhut, SVP/ECD, Hill Holliday

turn every contact into a one to one sales opportunity xerox

Turn Every Contact Into a One-to-One Sales Opportunity, Xerox

Greg Holliday

Jennifer Zieverink

slide44

Turn Every Contact Into a One-to-One Sales Opportunity, Xerox

  • Generic equipment renewal contract becomes personalized offer wrapped in segment relevant creative
  • 42 combinations, infinitely scalable
    • Customer segment – creative
    • Offer based on product and usage
    • Time of need
slide45

Turn Every Contact Into a One-to-One Sales Opportunity, Xerox

  • Technology
    • ASP.NET and SQL Server
      • Message matrix
      • Content
    • XMPie to convert and transmit data into publishing software
    • Adobe In Design to publish data in creative layout
  • Results
    • Positive customer feedback
    • Lead submissions and revenue doubled
dma membership details

DMA Membership Details

Greg Holliday

Jennifer Zieverink

slide47

Direct Marketing Association

  • Founded in 1917
  • Leading global trade association of business and nonprofit organizations using and supporting direct marketing tools and techniques.
  • More than 4,800 corporate, affiliate, and chapter members from the US and 46 other nations
slide48

DMA Membership Details

  • Education
    • Seminars
    • Webinars
    • Newsletters and publications
  • Research
    • Direct Link (www.the-dma.org/directlink)
    • White papers (www.the-dma.org/whitepapers)
    • Research and Statistics (www.the-dma.org/research)
questions

Questions?

Greg Holliday

Jennifer Zieverink