1. 10/2/2011
Parts II & III: The Holy Grail
 Database management strategies for
higher email marketing ROI
 Advanced segmentation & targeting
Stephanie Miller, VP, Email & Digital Services, @stephanieSAM
Nicholas Einstein, VP, Strategic & Deliverability Services, Datran Media
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2. 10/2/2011
Message
Right Person
Time
Every time.
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3. 10/2/2011
Takeaways
• How effective data management can
improve email marketing response and
revenue
• Simple strategies you can test to improve
relevancy and response
• Five factors that help ensure cross
channel marketing success
Data management for Digital
Marketers =
– Email address +
– Sourcing
– Storing / Accessing / Utilizing
– Maintaining Hygiene
– Understanding / Reporting
– Integrating
– Analyzing / Optimizing
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Why
Data Management
Matters
Category/
Social Product
Brand Incentives
Media Interest Information
Better Customer Experience More Efficient & Effective Marketing
• Channel preference/convenience • Creates relationships
• Drives loyalty & satisfaction
• Ability to easily find Product/brand information • Saves on agency costs
• Relevant & timely promotional incentives • Lets the marketer focus on creative,
• Highly personalized communications delivered messaging, offers
more frequently • Increases average purchase price
• Store/product/brand recommendations
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5. 10/2/2011
Modern Marketers
Key Business Questions Brand Manager Creative
• What are the Most Profitable Online
behaviors? How Do I Clone Them?
• Which message types drive more
profitable conversion?
• How can I rapidly capitalize on
Multivariate Testing results?
• How do I leverage Marketing
Attribution to Optimize Marketing
Spend
•How do I reach consumers in the
channel best suited to engage?
Quant CMO
Opportunities
CHANNELS
Proliferation of • Reach customers through a multi-channel approach
New Engagement • Segment to provide more relevant online content
Channels • Engage in a conversation based on response
COLLABORATION
Improve • Reduce inefficiencies working with agencies
Agency and Internal • Improve processes and interactions with internal teams
Collaboration • Manage the campaign execution processes
PERFORMANCE
• Gain visibility to marketing campaigns being executed
Improving Marketing
• Adjust marketing spend based on performance
Performance &
Accountability • Streamline marketing spend
• Measure & optimize ROI
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6. 10/2/2011
The Evolving World of
Email & Digital
Marketing
Email ROI
Puts
Stars
In Our
Eyes
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7. 10/2/2011
Email Is Still the Highest ROI
• 72% - “Email ROI is
excellent or good”
(eConsultancy 2011)
• $42.08 earned per $1
spent (DMA-US 2010)
• Promotional emails
influence retail website
visits (ForeSee 2011)
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All Digital Marketing is Social
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9. 10/2/2011
Marketers Must
Be Change
Agents!
http://www.aprimo.com/revolution/
The Inbox is Fragmenting.
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Engagement is the new black.
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Integrating Digital Marketing
Dialogue
Segment
Broadcast
The Email Marketing Evolution from
“Batch & Blast” to “Engage & Customize” is
powered by automation and data integration.
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Relevancy
Engagement
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Choice
Subscriber Covenant
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The Truth.
Typical Email Marketing Stream
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
Hi, are you ready to buy?
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Lifecyle Email Marketing
Welcome! We like you.
Hi, are you ready to buy?
Thanks for buying!
You might also like….
Hi, are you ready to buy?
Here’s what others like!
Please tell us what you like.
Hi, are you ready to buy?
Cool content you might like.
Hi, are you ready to buy?
Something special for you
Any of your friends like this?
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Cross Channel Marketing
Welcome Email. We like you.
It’s Free Taco Tuesday. Pls RT
Hi, are you ready to buy?
Thanks for buying!
Text in to join our party!
Dear Pamela, you might also like….
Hi, are you ready to buy?
Visit Facebook: What do others like?!
Sale 4 U 2Day!
Cool content you might like.
Mobile coupon! Hurry in!
Something special for you!
Any of your friends like this?
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Connections Require Segmentation
Executive Buy In
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17. 10/2/2011
What Executives Understand.
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Earn What You Need
• Demonstrate not just revenue, but also
costs, lost opportunity
• Never go alone
• Recruit a champion brand
• Get your vendors on board early
• Prove the value (POC)
• Communicate early and often
Getting The Data
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Connections Require Segmentation
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20. 10/2/2011
Promote
Email on
Facebook
Page
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21. 10/2/2011
Wherefore Art Thou, Data?
Customer Email Call Center
Responses
Sales Team Database Online
Nirvana
Social Subscriber Activity on
Email Transactions
Media Forms Website
Everything you ever wanted to know about your customer...
And can use to increase their engagement.
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Reality
Social Subscriber Activity on
Email Transactions
Media Forms Website
Prioritize.
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Set Your Best Starting Point
 Have data to back up your
assumptions
 Stick with customers
 Zig if competitors zag
 Sometimes Medium is better
than BIG
 Find (or create) a Shared
Goal
 Ensure you can measure the
key success factors
A Few Words About
Permission
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24. 10/2/2011
Five Rules of Permission
• Get it.
• Confirm it.
• Don’t share it.
• Keep it current.
• Requires across channels.
Remember: It’s not about you.
Data Hygiene
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Hygiene = Health!
If your data is dirty…..
…you get a reputation.
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What is good hygiene?
• Excellent data collection
• Proper bounce management
• Source management & tracking
• Scrubbing/Purging
• Behavioral targeting
• Solid acquisition program
• Discipline! (esp. during the holidays)
Protecting Privacy
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Guiding Principles
Notice Choice
Privacy Checklist
 Up to date privacy policy
 Clarity of permission grant
 Do not share permission
 Keep permission current
 Ensure easy opt out
 Consider minors and other
protected groups
 Educate internally
 Follow the spirit, not just the
letter, of the law
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Please, follow the law(s).
• CAN SPAM, COPPA
– Utah, Maine, Colorado, California
• Canadian Privacy Law(s)
• EMEA Permission
• Japan “Proper Transmission” Law
• EU Cookie Directive
• Chinese Access Rights
• SMS/Mobile Carrier Restrictions
Ignorance is Not a Defense.
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Authentication
http://www.dmaresponsibility.org/emailauthentication/howevaluate.shtml
LUNCH!
We start again at 2 p.m.
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Takeaways (2)
• Email is not dead – but let’s not kill it.
• Maintaining list hygiene is critical.
• Email marketing generates reams of data,
focus on those that tie directly to core
business objectives.
• 6 Steps to Relevancy
Using the Data:
Starting Small
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Treat different customers differently
This is difficult if you also insist on
treating every customer the same. Or
treating every customer the best, which
is a better way to describe a similar idea.
No, the only way you can treat different
customers differently is if you understand
that their values (and their value to you)
vary.
It's easier than ever to discern and test
these values, and you do everyone a
service when you differentiate.
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The Basics
• Email Address/Domain
• Opt-in Date/Time
• Website Behavior
• Response History & RFM
• Zip Code/Geography
• Sex
• Contact Preferences - channel, timing, format, etc.
• Birthday
• Unsubscribe/SPAM Complaints
Ground-up Messaging Strategy
One-off Programs
• Above and beyond standard messaging
• For example, targeting past holiday purchasers
Triggered Programs
• Ultra targeted based on actions
• Highly customized
Base Programs
• Promotions
• Newsletters
• Standard streams
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Show Me the Money….
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missHinterland =
mhntlnd233@aol.com
Append record>> YES
SHOES
Automation Has Power
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Digital Conversation
Management
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Prospect Nurturing
Email Conversations
• Purchase
• Upgrade
• Download
• 90 day anniversary
• Chose competitor
• Renewal
• Event attendance
• Event no show
• Service call
• Start/End Free Trial
• Long website visit
• Non-activity
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Using the Data:
Add Sophistication
Winning Philosophy
• Invest in AUTOMATION (but realize its’ limitations)
• Develop a tiered-messaging strategy
• When it comes to segmentation: KISS (Keep It Simple)
– 6 is too many segments… and 5 is pushing your luck
– Different Segments get different BASELINE communications
– Everything else is personalization
• Why?
1. Each segment requires TIME & RESOURCES to target properly
2. Content creation/curation is not automatable
3. Segmentation efforts deteriorates into an impractical, academic
exercise
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42. 10/2/2011
Possible Segmentation Criteria
• Behavioral (Email): • Geographic:
– Engagement based on open – Country, Region, Climate,
and click data Drive-Time, etc.
– Registration source • Demographic:
– Registration date – Age, Gender, Income,
– Buyers vs. non-buyers Lifestage, Presence of
– Advocates (social sharing or Children, etc.
FTAF) – Profession
• Behavioral (Other): – Language
– Purchase data (Recency, – Lifestyle
Frequency, Value, Product • Attitudinal:
Categories, Location)
– Interests
– Brand/Product Loyalty
– Preference data
– Brand affinity
Any Segmentation Can Work
E-mail Marketers
Percentage of
Conversion Rate:
Question: Average unique conversion rate (i.e., total number of unique orders/transactions divided by number of net e-mail delivered for all
campaigns in the past 12 months), compared with question, “Which of the following customer data attributes has your company used to segment
audiences for e-mail marketing campaigns in the past six months?”
Source: JupiterResearch Executive Survey (11/04), n = 649 (US only)
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Base Segments - Example
• Online purchase • History of tracked
Online Buyers
In-Store Buyers
past XX months in-store purchase
• Open or Click • No history of
Activity in past XX online purchase
months • Open or Click
Activity in past XX
months
• First 30 Days in
New Subscribers
program
• Can be bumped
into buyer
segments prior to
30 days
• No purchase • No email activity in
Engaged
Unengaged
history past XX months
• Open or Click
Activity in past XX
months
A Note About Preference
Centers
Good:
• Simple path to segmentation
• Provide interest data at the time of
registration
Bad:
• Preferences change/evolve
• Subscribers rarely update
• Establish commitment to only send
on established topics (regardless of
relevance)
Net: Invest in figuring out what
will be relevant!
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Message Types
• Bulk Mailings • Triggered Messages
– Promotions – Up-sell messages
– Newsletters – Cross-sell messages
– Statements – Confirmations
• Lifecycle Messages – Ratings and reviews
– Welcome streams – Watch lists
– Lifestage streams – Out-of-stock
(e.g., pregnancy, – News alerts
wedding) – Local events
– Reactivation streams – Anniversary, Birthday
– More…
Not just segmentation….
1. SEGMENTATION: identify logical  Buyers vs. non-buyers
groups to which the same basic  New vs. old customers
messages are likely to resonate.
 Kids vs. no kids
1. TARGETING: align messaging to  Deal vs. information-based
the engagement patterns of each  Lifecycle programs
segment.
 Best time to send
1. PERSONALIZATION: add the  Local store
finishing touches that make the  Products of interest
communication feel personal.
 Gender
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Personalization
 Members of a segment all
get an email based on the
same template
 Personalization attributes
can change all of the
content, but not the
structure of the email
 The next step is populating
that template with content
that shows you know the
customer
The BEST personalization is
based on activities tracked at
the INDIVIDUAL level!
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Email metrics
(opens, clicks)
Site activity
(visits, shopping cart)
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Purchases
Coupon redemptions
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Targeting Browse Behavior
• Amazon
* Based on recent
browsing behavior (past
month)
• Featured products and
time-based offer x% off
until XX/XX
• Directly calls out that email
was triggered by browsing
the site
Personalized content
must be value-driven
– Where they live?
– What they do?
– What they like?
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Do this…
Not This…
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Personalization That Works
Email doesn’t work without a
good content strategy.
Content Inventory
 Web resources
– Content site
– Blogs
– Videos
– Online Coupons
 Traditional resources
– Print Advertising
– Coupons
– Circulars
– Press Releases
– Events
 User Generated Content
– Ratings & Reviews
– Social Media Mentions
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Plan Ahead…
 Move from content creation to curation
– Adapting existing content is easier
than creating new content!
 The right email template will save time
– What formats will you regularly
support?
– What content blocks can you
regularly populate?
Which takes more time?
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6 Steps to Scalable, Relevant
Email
1. Identify your key segments
2. Identify core messaging products
3. Develop messaging grid that aligns segments with
target messaging objectives
4. Identify activity-based personalization attributes
5. Develop flexible templates and automate the
automatable
6. Devote a percentage of resources to develop
triggered programs (“set it and forget it”)
Using the Data:
Personas
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Personas: What & Why?
How?
• Real People
• Compelling Narrative
• Key Attributes
• Enable Action
• Usable Format
• Focused on Differentiators
• Not Prescriptive
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Using the Data:
Integration
Devices Drive Behavior
Banking? Buying?
Reading?
Creating?
Interacting?
Socializing?
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Social Data Value Scale
Listening
Activity
Aggregate
Membership
Interest
Affinity
Influence
Behavior
Community
Five Factors in Your Integrated &
Cross Channel Opportunity
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Copyright © 2011 by Teradata Corporation
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Making Synergy Work For You
1. Never assume
permission.
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Cross Channel Opportunity
2. Audience profile
3. Brand Affinity
4. Sales Channel
Preference
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Cross Channel Opportunity
5. Nurture at
customer life
stage.
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Integrating Digital & Social Data
Pre-Event Monitor Engage
• Email • Influencers • Thank
• SMS • Channel influencers
• Twitter preference • Update
• Non preferences
responders
Day of Event Post Event Optimize
• Celebrate • Triggered • Segment-
influencers emails ation
• Monitor multi- • Profile • Testing
channel responders • Learning
impact • Update
preferences
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Blueprint for Integrated Marketing
Readiness Assessment
1. Talent & Knowledge
 Marketing Ops
 Technical/DBA
 Creative
2. Systems
 Database structure
 Location of data
3. Strategy for Actionable Data
 Which data?
 Why data?
 How data?
 Who owns what data?
Sharing the Data
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Why?
Essential Reports
• Response data (opens/renders,
clicks, conversions) – How much
did we make?
• Bounces – How clean is our list?
• Spam complaints/Unsubscribes
– Was our message welcome?
• Inbox placement – What’s our
sender reptuation?
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Dashboards
• 50,000 foot view
• Trends/Benchmarks
• Metrics tied directly to
business objectives
• Produced & syndicated
regularly
• Bonus: Cross-channel
Analyzing the Data:
Response Analysis
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Reports that Matter
• Tied to business goals
– Are we making money?
– Is the sales team happy?
• Enable decision making
– What can I change to improve results?
– What products should I lead with this week?
– Am I seeing a shift in customer preference or
behavior?
• Timed to business need
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Are Opens &
Clicks Valuable?
Allow Customers to tell you…
Conversion Based on Targeting
1.0%
0.1%
Self Reported Demographic
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Mining for Behavioral Data
Response Rates
Behavioral Targeting Demographic
2.40%
0.54%
0.36% 0.35%
0.08% 0.05%
Test1 Test2 Test3
Analyzing the Data:
Deliverability Analysis
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Deliverability?
• Rendering reports?
• Bounces? Codes?
• Low response?
• SPAM Traps?
• Blacklists, etc.?
• Seeded inbox rates?
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Deliverability Insights
• Are our subscribers fatigued?
– Which subscribers are engaged?
– The impact of frequency.
• Are certain sources spammy?
• This message type is less welcome.
• Formatting takes a toll.
• Risk assessment: Active subscribers are
most active complainers.
Analyzing the Data:
Lead Scoring
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66. 10/2/2011
Models for Lead Scoring
Lead Scoring Starting Point:
Explicit & Implicit Data
Activity Score
Job Title 1
Explicit =
Company Size 1 Provided by
Industry 1 Prospect
Whitepaper Download 1
Web page visit 1
Call with Inside Sales 1
Live Event Reg 1
Live Event Attend 1
Webinar 1 Implicit =
Behavior
Email Subscription 1
Email Opens/Clicks 1
Email Conversion 1
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Simple Lead Scoring
Contact downloads 2 Activity Numeric Score
whitepapers, attends 1 Whitepaper 5
webcast and goes to a Live Webcast 10
Event. Live Event 20
Lead Scoring = 5+5+10+20
= 40
Advanced Lead Scoring
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Who’s Doing Lead Scoring
Keys to Successful Lead
Scoring
Goals Actions Processes
Increase Improve quality of Ensure all leads are
conversion by leads passed to followed up in a timely and
segment sales team or to appropriate manner
ecommerce site
Increase Marketing is accountable
footprint and Prioritize leads
market based on Sales is accountable
development propensity
Align Sales &
Marketing
Teams
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69. 10/2/2011
Setting Priorities
Before You Jump….
• Customer benefit?
• Email vs. SMS & Social
• Goal: Reach, synergy or
real time optimization
• Single database?
• Self reported vs.
behavioral?
• Team skills and talents?
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10-15%
139
Query customers, not data.
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Readily Available Opportunities
Data Source Connect Purpose Measure
Customer Transaction To web content Increase Sales
Purchase data engine engine and email revenue
program
Web Session Web tracking To lead nurturing Improve Response rates
Length (Google campaigns relevancy and by segment
Analytics, timing
Omniture)
Visitor Tracking Advanced Web To web content Improve Conversion to
Tracking engine and email relevancy the next step
(Omniture) program
Social Influence Services To email Attribution and Rise in social
- Counts (Twitter, program Impact of email activity
Facebook,
Linked IN)
Social Influence Social listening To all outbound Speak the Response rates
– Affinity tools (Radian6, communi-cations language of a by content type
Flowtown) community
Lessons Learned
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72. 10/2/2011
Data is Your Friend
Just get started!
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73. 10/2/2011
Focus on the Business
Lather, Rinse & Repeat
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74. 10/2/2011
Don’t try to Boil the Ocean
Questions?
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Data Driven Digital Dialog
Checklist
 Just get started!
 Establish a baseline for results
 Identify 2-3 key data attributes that speak to customer experience
 Start with a small test
 Forecast the success across all efforts
 Make a business case for improving relevancy
 Recruit internal champions (& external support)
 Set your own milestones & measurements
 Embark on Proof of Concept stage
 Celebrate results
 Expand to other business units/message types
 Reset expectations and baselines
 Land & expand
 Keep testing for higher ROI
Stephanie.Miller@Aprimo.com or @StephanieSAM
Thank you!
• Einstein@datranmedia.com or
@OtherEinstein
• Stephanie.miller@aprimo.com or
@stephanieSAM
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