eMarketer Webinar: Consumer Digital Touchpoints—Email and Beyond

A U G U S T 2 3, 2 0 1 2

Consumer Digital
Touchpoints—Email
and Beyond

Sponsored by:

David Hallerman
Principal Analyst
©2011 eMarketer Inc.

There are four prime consumer digital
touchpoints

 Marketing emails: contact
 Brand websites: content
 Social media: community
 Mobile devices: connections

Twitter – #eMwebinar

The primary
question:
What makes
a marketing
channel a
touchpoint?


Touchpoints attract—they are pull
marketing (ads are push marketing)


Creating customer loyalty is an ongoing
process, not an event

What we’ll look at today…

 Loyalty matters: retention
 Permission matters: consent
 Mutuality matters: two-way street
 Money matters: and other values


Email’s Example
(elements that translate to all
touchpoints)


Email offers lessons that marketers can
use to make other touchpoints effective

 Permission is prime.
 Reciprocal value is the engine for permission.
 Personalization is a channel for relevance.
 Frequency control is a type of respect.


Consumers
trust opt-in
email and
brand
websites
more than
any type of
digital ad


Four Touchpoint
Channels
(integrating connections)


Execs greatly value touchpoints for
building customer loyalty and retention


Gail Goodman, CEO, Constant Contact

“Multichannel actually
works better than single
channel. So while having
someone engaging with you
on Facebook is great, the
best way to kick off that
engagement is to send an
email that pulls them back to
Facebook.”


Mor e touchpoints, mor e usage, as
mar keter s look to br eak thr ough clutter


Social
touchpoints
work best
when
integrated
with other
touchpoints,
such as
email or
company
websites


Gary Wohlfeill, Creative Director,
Moosejaw

“Down the line, we’d love to
be able to better use
everybody’s profile. When
we want to award somebody
points on Facebook right
now, we have to get them to
email us so we can pull up
their account and award
them.”


Mobile touchpoints link up with email and
social for mobile-onl y user s


Apps are a
prime mobile
touchpoint
that
influence
consumer
brand
choices


Yon Feldman, Vice President, Gilt
Groupe

“Our most engaged
customers are actually
people who use both app
and desktop.…Those who
have used both are
extremely more loyal and
engaged than either of the
two other groups.”


Loyalty Matters
(less costly, more value)


Customer
retention
(aka loyalty)
is a top
priority for
marketing
executives


Loyal customers offer companies
several varieties of value

Current customers are often the best
customers.
Costs less to keep old customers than to find new
ones
More likely to sell more often to them
More likely to upsell them, too
The most-loyal customers tell others about your
offerings
Loyal customers reveal more about themselves


Customers
behavior is
much like
two classic
dog names:
Fido and
Rover.
But will they
remain loyal?


Marketers
spend more
on customer
acquistion,
partially
because
retention
costs less


Word-of-mouth is the most valuable form
of marketing companies can’t buy


Loyal customers become brand
ambassadors—and spend more too


Positive
experiences
extend
social
consumer
touchpoints,
but negative
experiences
a bit more so

Negative:
67% & 59%

Dave Godwin, Managing Partner,
Restaurant Management Group

“Eight out of every 10
referrals to our business
are through word-of-
mouth. That’s the
reason why Facebook
and businesses go
together so well.”


Email is the
word-of-
mouth tool
that brand
advocates
use the most
to endorse
products or
services


Permission Matters
(it’s all about control)


Opt-in agreement is the fir st step that
can lead to more engaged touchpoints

Email is the
permission-
based
marketing
channel that
most
consumers
prefer


Mike Hogan, Chief Marketing Officer,
GameStop

“One of the reasons
why we’re moving
with deliberate speed
is we want to do this
in a high-permission
environment.”


Consumers who can give or withhold
permission are better customers


Mutuality Matters
(two-way communication)


Effective digital touchpoints need to
be two-way streets to create loyalty

Customer loyalty is about more than
making a sale.
Time. Loyalty develops over time.
Attract. Loyalty touchpoints require marketers to cultivate
customers with pull, not push, tactics.
Slower. Many touchpoint efforts cannot be automated.
Staff. Touchpoints often require real humans on the other side of
the screen, notably for customer service.
Costs. The extra costs involved for such efforts cause some
companies to hesitate.
Touch. But companies that humanize the digital space will often
gain an advantage over their competition.


Tracy Keim, Vice President, Bonobos

“It’s important for a
company and for brands
to understand that
[loyalty] is not a one-
way push strategy. It’s
also a listening
strategy.”


Email, social and company websites are
all prime two-way loyalty channels


Email is excellent for the two-way street
that defines a real touchpoint


Customer
service is a
major
element that
can reach
across all
digital
touchpoints

It’s a relationship: Customer
ser vice drives brand loyalty


Loyalty and
improved
customer
service are
linked—and
are two top
objectives of
social brand
strategies


Consumers
also say that
customer
service is
important on
social sites


Jim Wright, Senior Vice President,
Express

“You have to listen and
respond to disappointed
customers. Even if it’s not
always the answer they
want to hear, they
appreciate the fact that
you took the time to at
least respond.”


Even angry
customers
might remain
loyal
customers if
companies
communicate
clearly and
offer fair
solutions

Money Matters
(more so, value matters)


How the loyalty process often works…


Brands stand out w hen their touchpoints
of fer value to those w ho opt in…

Effective
touchpoints
demand
data, and
consumers
want
something
back for
their data


Personal data
helps build
strong
relationships,
often through
touchpoints


Sometimes
value is
simply
money in the
form of
deals,
discounts,
promotions
and free stuff

Brands
attract
consumers
by giving
them
something in
return,
typically a
promotion or
prizes


If a user’s
“like” leads
to a brand
touchpoint,
then special
deals and
inside info
help make
consumers
lean toward
a “like”


Nearly one-half of Twitter users want
deals from brands they follow


Value is subjective, and good touchpoints
offer a range of possible values

The main
reason
Facebook
users “like”
brands is
because
they are
already
loyal, but
what do the
brands offer
in return?


Bob Soukup, Senior Director for Loyalty,
Best Buy

“Loyalty is about
financial rewards where
you earn points and use
points, and that’s great
and valuable, but we
want to capture
customers’ hearts and
minds.”


Money is one type of value. Content
is another. That mix can include:
 Case studies
 Webinars and webcasts
 Videos
 Games
 White papers
 Research reports
 Articles
 Peer-created content
 Podcasts
 Mobile apps

Brand websites are among the most
trusted—great for valued content


Companies
often use
branded
content to
increase
customer
retention
and brand
loyalty


Anthony Batt, President, Katalyst

“If we’re entertaining
you, we’re sort of
bypassing your
immediate rejection of
an advertisement.”


Marketers
look to
spend more
on content
in 2012


Chief Takeaways


The top
reason users
don’t “like” a
company on
Facebook
points to
how
marketers
can create
better digital
touchpoints


Look at the reasons why people
don’t become brand fans, and then…

Do the opposite. That is…
Frequency: don’t bombard them with marketing
messages
Reticence: don’t ask for too much personal information
Trust: do indicate how their privacy will be honored
Humility: don’t assume that just because one person
likes your brand, his or her friends will, too
Communicate: do make the benefit of becoming a fan
clear and immediate


Justin Yoshimura, CEO and Co-founder,
500Friends

“The future of social
loyalty is when marketers
stop measuring success
by the number of ‘likes’
or followers, and start to
see this as a way to
increase the value of
existing relationships.”


Conclusions: Engagement is basic to
making marketing into a touchpoint

The four digital channels best for developing
customer loyalty share several elements: cash,
content, communication, care, and control.
Email. Works well for money matters and evergreen info.
Brand websites. Product details and support are the
main reasons most customers go to company sites.
Social media. Involving customers through content,
entertainment, contests or service is often key.
Mobile. Can meld the three other digital touchpoints, and
adds location-based connections and immediacy.
© 2012 eMarketer Inc.

The Growth of Digital Activity…

>1B active users on Twitter >1B people search Google everyday
people search Google everyday
active users on Twitter
and Facebook
and Facebook

200M tweets on Twitter per day
tweets on Twitter per day 1M social check-ins per day on Foursquare
social check-ins per day on Foursquare

60M status posts on Facebook per day
status posts on Facebook per day
107trillion emails sent in 2011
emails sent in 2011

…Has Generated 98% of all Data within the Past 2 years
© 2012 Lyris

Q&A Session Learn more about digital advertising with
an eMarketer corporate subscription
Consumer Digital
Touchpoints—Email Over 120 reports are published each year.
and Beyond Following are a few recent ones you may
be interested in:

 The Lessons of Email: Using Digital Touchpoints
for Customer Loyalty
 Social Loyalty: From Rewards to a Rewarding
Customer Experience
 Email Marketing Benchmarks: Key Data, Trends
David Hallerman and Metrics
 Adapting to a Showrooming World: How
You will receive an email Retailers Are Earning Customer Loyalty
tomorrow with a link to
view the deck and  The Changing Digital Landscape: Key Trends
webinar recording. Marketers Need to Know

Sponsored by: To learn more: www.emarketer.com/products
Lyris 800-405-0844 or webinars@emarketer.com


eMarketer Webinar: Consumer Digital Touchpoints—Email and Beyond

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