Date post: | 13-May-2015 |
Category: |
Business |
Upload: | datranmike |
View: | 3,076 times |
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Michael BloomGeneral ManagerDatran Direct
Dan ParzychVP Analytics
Presented by:
MULTI-CHANNEL CONVERGENCE:MULTI-CHANNEL CONVERGENCE: THE CONSUMER BATTLE BETWEENTHE CONSUMER BATTLE BETWEEN
ONLINE AND OFFLINEONLINE AND OFFLINE
Introductions…
• Leading email inbox marketer in the industry • Multi-channel and offline division of Datran Media• 175 million unique and permissioned email addresses
• 50 million multi-channel records with validated postals• 30 million multi-channel records with phones numbers
• Direct response email behaviors on every record
• Industry leading cooperative database serving the direct mail publishing and continuity industries
• 120 million unique direct mail consumers with validated postals• Direct response purchase and payment behavior on every record
Agenda…Agenda…Agenda…Agenda…
• Current status of the direct mail channel
• Value of multi-channel marketing
• 10 laws of multi-channel marketing
• 10 actions to grow YOUR business through multi-channel marketing
What You Will Learn Today…
$$ $$ $$
Postal Costs Postal Costs UPUP Paper Costs Paper Costs UPUP Acquisition Costs Acquisition Costs UPUP
Response Rates, Lifetime Values, and Profits Response Rates, Lifetime Values, and Profits ALL ALL DOWNDOWN
Direct Mail Industry
at a Crossroadsat a Crossroads
Mailable Universes Shrinking and the
Direct Mail Industry is In CrisisDirect Mail Industry is In Crisis
ACTIVESACTIVES
EXPIRESEXPIRES
Multi-Channel Success in Traditional Direct Mail VerticalsMulti-Channel Success in Traditional Direct Mail Verticals
PublishingPublishing Telecommunications Telecommunications & Cable& Cable
Credit CardsCredit Cards
CatalogsCatalogs
Non-ProfitNon-Profit InsuranceInsurance
Direct Mailers Cutting Volume and Shifting Budgets to Online
Into Multi-Channel PlatformsInto Multi-Channel Platforms
What is Multi-Channel Marketing?What is Multi-Channel Marketing?
INTEGRATED…..OUTBOUND…..DIRECT MARKETING…..VIA MULTIPLE CHANNELSINTEGRATED…..OUTBOUND…..DIRECT MARKETING…..VIA MULTIPLE CHANNELS
Direct MailDirect Mail
Mobile MarketingEmail MarketingEmail Marketing
Telemarketing
Focus today on DM and Email Search engine marketing and TV
Infomercials are not outbound direct marketing channels
Multi-Channel Marketing is Critical Because
Consumers Today have MORE…Consumers Today have MORE…
• Channel Choice
• Decision Power
• Product Options
• Product Knowledge
• Price Sensitivity
• Hectic Lifestyle
• Mailbox Clutter
• Demand for Convenience
The NEW Age-Old Adage of Direct MarketingThe NEW Age-Old Adage of Direct Marketing
REACH THE…………RIGHT CONSUMERRIGHT CONSUMER
WITH THE…..RIGHT OFFERRIGHT OFFER
AT THE…..RIGHT TIMERIGHT TIME
VIA THE….…….…..RIGHT CHANNELRIGHT CHANNEL
The 10 Laws of Multi-Channel Marketing
MYTH or FACT???MYTH or FACT???
Introducing the ……
##11
DIRECT MAIL AND EMAIL RESPONDERS ARE DIRECT MAIL AND EMAIL RESPONDERS ARE DIFFERENT CONSUMER SEGMENTSDIFFERENT CONSUMER SEGMENTS
MYTMYTH!H!
Datran Media & Alliant Data Joint Research StudyDatran Media & Alliant Data Joint Research Study
Direct Mail ConsumersDirect Mail ConsumersEmail ConsumersEmail Consumers
52%52% Match Match RateRate
The Same Customers Transacting via Direct Mail
Are Also Transacting via EmailAre Also Transacting via Email
New Insights in
Consumer Multi-Channel PreferencesConsumer Multi-Channel Preferences
The SAME consumers are buying from BOTH
direct mail AND email channels
• 44% have bought Family-Oriented products from BOTH channels
• 40% have bought Beauty and Diet products from BOTH channels
Demographic Profiles are MUCH More Alike than Different
Direct Mail vs. EmailDirect Mail vs. Email
AgeAge
IncomeIncome
GenderGender
20-30 7% 13% 186186
31-40 18% 22% 122122
41-50 24% 27% 113113
51-60 22% 24% 109109
61-70 15% 9% 6060
70+ 14% 5% 3636
HHI < $25K 18% 20% 111111
$26 - 50K 23% 26% 113113
$51 - 75K 21% 24% 114114
$75 - 100K 15% 14% 9393
$100K+ 23% 16% 7070
MALE 32% 44% 138138
FEMALE 68% 56% 8282
Direct MailDirect Mail Email Email Email INDEXEmail INDEX
##22
INTERNET SOURCED LIST RENTALS DO NOT PERFORM WELL IN DIRECT
MYTMYTH!H!
• 85%85% Continuation Rate on Postal Tests
• 60%60% Continuation Rate on Telemarketing Tests
Datran Direct delivers internet sourced postal and phone direct response hotline list rentals monthlyonthly, weeklyeekly, and EVEN dailyaily
Winning Winning Categories:Categories:
Merch Merch BuyersBuyers
Auto Auto InsuranceInsurance
Credit Card Credit Card Applicants Applicants & Rejects& Rejects
Debt Debt ConsolidationConsolidation
Case Study with Leading Multi-Channel Agency Red Clay Media
Compiled Lists vs. Internet Sourced ListsCompiled Lists vs. Internet Sourced Lists
• PRODUCT: Elective Medical Procedures with $3K price point per procedure
• MARKETS: Chicago Kansas City St. Louis
• COMPILED LIST: Target core demographic segments (Age 23-50, HHI > $75K)
• INTERNET LIST: Target 0-30 day active direct response email consumers
• BUYING PROCESS: Direct Mail Inbound Telemarketing Doctor Appointment
• KEY PERFORMANCE INDICATOR: Cost Per Appointment
Direct Mailer in the Health Care Industry
Internet Sourced List Outperformed Compiled Lists in EVERY Market
$0
$100
$200
$300
$400
$500
$600
$700
CO
ST
PE
R A
PP
OIN
TM
EN
T
CHICAGO KC ST. LOUIS
DATRAN ONLINE-SOURCED LIST DELIVERS 40% LOWER CPA IN DIRECT MAIL
COMPILED LIST DATRAN ONLINE LIST
46% LOWER
CPA
30% LOWER
CPA
42% LOWER
CPA
##33
INTERNET SOURCED SELF REPORTED CONSUMER DATA IS NOT
ACCURATE
MYTMYTH!H!
Internet Sourced Self Reported Postal Data
Is Very Accurate Is Very Accurate
• Consumers want to get something from online registrations – Mortgage, Credit Card, Life Insurance Policy, etc.
• Many websites validate consumer Registrations at point of entry
• Datran Direct validates all postals nightly – Delivery Point Validation, CASS Validation
• 78% of self reported postals PASS Delivery Point and CASS Validation
• Dates of Birth are confirmed accurate (except January 1st spike)
• High match rates with national consumer databases (Alliant, Acxiom, Experian, IBehavior)
##44
TARGETING RECENT RESPONDERS IS MORE IMPORTANT FOR EMAIL THAN FOR DIRECT MAIL
FACFACT!T!
Recency is
More Important for Email than for Direct MailMore Important for Email than for Direct Mail• Direct mail consumers have a much longer “shelf life” than email consumers
• Direct mail recency measured in months and quarters (response 95% complete in 60 days)• Email recency measured in hours and weeks (response 95% complete in 5 days)
• Email recency is predictive of DM response BUT DM recency is NOT predictive of email response
• DM buyers did not perform any better in email than random consumer selects
• Email inboxes are MUCH harder to reach than postal mailboxes
• Only 1 mailbox but consumers have multiple email inboxes (1.4 per person on average) • Expired and undeliverable email addresses MUST be removed from lists
• Delivery to the email inbox is NOT guaranteed like delivery to the postal mailbox • Consumers use email inboxes for different purposes (transactional vs “disposable” emails)
##55
SENDING RELEVANT MESSAGES IS CRITICAL FOR DIRECT MAIL BUT LESS IMPORTANT FOR
MYTMYTH!H!
Relevant Messages are as Important
For Email as for Direct Mail For Email as for Direct Mail
• Irrelevant messages in direct mail are costly and wasteful at $.50/unit
• Irrelevant or inappropriate email messages are risky because they lead to high spam reports and complaints
• Internet Service Providers (ISPs) monitor consumer spam and complaint ratios very carefully
• Excessive complaints and high undeliverable bounce rates cause BAD things to happen• Loss of whitelisted bandwidth• Blacklisting• Complete shutdown of delivery channel
##66CONSUMERS USE EMAIL FOR SHOPPING BUT RELY ON DIRECT MAIL FOR BUYING
MYTMYTH!H!
Consumers Use Email and Direct Mail for both Shopping AND Buying
Consumers Do Not Have a Preferred Contact StrategyConsumers Do Not Have a Preferred Contact Strategy
SUCCESSFUL MULTI-CHANNEL CONTACT STRATEGIES LEVERAGE THE STRENGTH OF EACH SUCCESSFUL MULTI-CHANNEL CONTACT STRATEGIES LEVERAGE THE STRENGTH OF EACH CHANNEL TO DELIVER SPEED AND CONVENIENCE AND ENABLE MULTIPLE BUYING PATHSCHANNEL TO DELIVER SPEED AND CONVENIENCE AND ENABLE MULTIPLE BUYING PATHS
• Email Direct Mail Website Order
• Email Website or Inbound Telemarketing Order
• Email Website Order
• Direct Mail + Email Website Order
• Direct Mail + Email Outbound Telemarketing Order
• Email Direct Mail Email Outbound Telemarketing Order
Successful Multi-Channel Contact Strategies
Enable MULTIPLE Buying PathsEnable MULTIPLE Buying Paths
Email Direct Mail
Website TelemarketingORDERS
##77
MULTI-CHANNEL CONSUMERS ARE MORE VALUABLE THAN SINGLE-CHANNEL CONSUMERS
FACFACT!T!
Multi-Channel Marketing Delivers
Higher Response Rates & Higher Order Size Higher Response Rates & Higher Order Size
SEGMENT BSEGMENT B
EMAIL ONLYEMAIL ONLY
SEGMENT ASEGMENT A
DIRECT MAIL ONLYDIRECT MAIL ONLYSEGMENT CSEGMENT C
DM + EMAILDM + EMAIL
15-25%15-25% Higher Order Higher Order
SizeSize
15-25%15-25% Higher Higher
ResponseResponse
##88OFFERS THAT WORK IN DIRECT MAIL
WILL ALSO WORK IN EMAIL
FACFACT!T!
• Direct mail creatives can be repurposed for email
• Core principles of winning DM creative also apply for email• Precise and Credible Subject Line• Content Personalization • Engaging Short Copy• Visual Interest• Prominent Call to Action
• Increase response with consistent messaging across channels
• Email is the PERFECT platform for testing direct mail offers and creatives• Less expensive• Fast results
Will Also Work in Email Will Also Work in Email The Same Offers That Perform in Direct Mail
##99
LEADING DIRECT MARKETERS ARE ALREADY SUCCESSFUL AT MULTI-CHANNEL MARKETING
MYTMYTH!H!
Few Direct Marketers are Fully Leveraging
Integrated Multi-Channel Marketing StrategiesIntegrated Multi-Channel Marketing Strategies
•CHANNEL SILOS• Direct mail and email channels managed by different business units• Database systems do not integrate channels into a single platform
•COMPETING METRICS• Performance measured at channel rather than at overall customer level• Channels compete for revenues, profits, and share of customer wallet
•COVERAGE GAPS • Less than 15% email coverage on direct mail records• High percentage of emails are undeliverable or unresponsive
#1#100
MULTI-CHANNEL MARKETING REQUIRES HEAVY DEVELOPMENT AND
INVESTMENT
MYTMYTH!H!
10 Opportunities to
Grow YOUR Business Through Multi-Channel MarketingGrow YOUR Business Through Multi-Channel Marketing
I. VISION. Begin with a multi-channel vision and test plan. Vision is free and testing is cheap.
II. MISSION. Expand your Mission Statement. You sell TRANSPORTATION, not horse and buggy rides.
III. EMAILS. Incent consumers to provide multi-channel information. Ask for emails with every contact.
IV. EAPPENDS. Use eAppends and phone appends to enhance direct mail records. Benefits far outweigh costs.
V. BUDGET. Allocate 10% of your marketing budget to multi-channel testing. NOT testing will cost MUCH more.
VI. LISTS. Consider new internet sourced lists for direct mail testing. Online behavioral lists perform in DM!
VII. STRATEGIES. Create multi-channel contact strategies that enable multiple buying paths. Simplify buying.
VIII. TESTING. Use email channel to test new offers and creatives for direct mail. It’s cheaper and faster.
IX. CREATIVES. Repurpose direct mail creatives for email. Consistent messaging boosts response.
X. METRICS. Track campaign performance at an enterprise/consumer level rather than a channel level. Win-win!
Thank You!Thank You!
Q & AQ & A