Unlocking the Value of Your Online RelationshipsBill Nussey, CEO SilverpopeMarketing AssociationAtlanta, October 23, 2007

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Agenda

A brief history of email marketing

Where is the value?

Six Tactics To Unlock the Value of your Customer Relationships and Data Why isn’t everyone doing this today

The Evolution (and Future) of Email Marketing

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The Evolution of Email Marketing - Today

Today’s email marketing hasn’t changed much over the last 4-5 years

We build lists

We target & segment

We send messages

Opt-in

Email &CustomerDatabase

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The Next Step is Multi-Channel

Multi-channel delivery

RSS

Mobile

Postal / direct

Transactional communications

Your email system can become your communications dashboard for every marketing touch point

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Email &CustomerDatabase

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Then Comes Behavioral Targeting

Behavior based targeting

Increased response & conversion rates

Higher relevance

A hidden benefit The data you

collect is attributable – it may be the most insightful customer data you have

Your email database gets more valuable

Opt-in

Email &CustomerDatabase

MsgResponse

Data

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Integration Improves Your Customer Data

Surveys enhance your customer records

Integrated surveys can also be driven from the customer data

Web analytics integration

Best way to improve targeting

Custom triggered mailings

Email behavior can feed back into analytics tool

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Email &CustomerDatabase

MsgResponse

Data

SiteAnalytics

Survey

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Abundant Customer Data Enables Scoring

A critical mass of customer data allows your system to rank and score customers

Which customers are likely to buy immediately?

Which are likely to defect?

Which customers qualify for premium service?

The value of your customer data continues to grow

Opt-in

Email &CustomerDatabase

MsgResponse

Data

SiteAnalytics

Survey

Scoring

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Rich Data Enables New Kinds of Tools

Micro-sites are the most underutilized drivers of improved response rates

Step 1: Data-driven landing pages

Personalization

Dynamic content

Step 2: Optimization Landing page

response data feeds back into the master database and the system optimizes the content

LandingPages

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Email &CustomerDatabase

MsgResponse

Data

SiteAnalytics

Survey

Scoring

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The Future: Any Business Data Can Drive Campaigns

Email marketing solutions are taking the next step – they can store and act on any kind of business data

True relational data schemas

Supported in dynamic content, queries, reporting

The email database can now manage a variety of data

It can become the launching point for a new generation of marketing

LandingPages

Opt-in

E-Commerce

Data

CRMData

Email &CustomerDatabase

MsgResponse

Data

SiteAnalytics

Survey

Scoring

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This is Great News For Email Marketers

Email is unique in the world of marketing No other business system has proven as flexible and actionable as email The ROI of email marketing is significantly higher than any other forms of

marketing, offline or online

The value of your email program can grow well beyond the size of your list

As email tools mature and your programs evolve, your email database may be your new secret weapon – a low cost marketing data-mart that’s designed for executing campaigns

Where is the Value?

Did Anyone Notice How the Circle Grew?

Marketers need to think two dimensionally – list size is just one dimension – also focus on how much data you have for each customer

The value of any list, but particularly your email list, grows as you add more information to each name

Email &CustomerDatabase

Email &CustomerDatabase

Why Isn’t Everyone Doing This Today?

Three big reasons why marketers are not unlocking more value from their relationships today

Email has a huge ROI even if you just stick to the basics Many of the tools available today make it hard or impossible Some of this stuff looks straight out of the IT department

The good news The work required is often much less than marketers think There are a number of easy tactics available today that can prove out the

ROI well before you make the big investments in full integration

Six Tactics To Unlock the Value of your Customer Relationships and Data

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Tactic #1: Surveys and Polls

Marketers have spentdecades learning tointerpolate customerinformation for scarcedata

The easiest way toimprove the value ofyour relationships isto just… ask the customer what theythink

In the world of online relationships, surveys fast, effective and cost almost nothing

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Tactic #2: Lead Warming

Marketers commonly fail to translate an anonymous visit into an attributable prospect relationship

Ask for an email and explain how you’ll use it – for prospects who don’t want to commit, offer RSS

Automate the follow up with information and promotions

Leads

Web

site

LeadWarming

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Tactic #3: Tie in to Web Analytics

Campaign Type Broadcast Triggered Lifecycle Web site click-stream

Primary targeting tactic

used

None, no personalization or

segmentation

Shopping cart

abandon

Product replenishment

message

Click-stream based

targeting

Open rate 20% 27% 26% 33%

Click rate 9.5% 9.3% 14% 14%

Conversion rate 1.1% 2.3% 2.8% 3.9%

Integrating web analytics and email is increasingly straightforward

The power of multi-channel integration can double and even quadruple the value of the same customer relationships

Start by simply exporting data and seeing if it can drive better conversions

Data from JupiterResearch

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Tactic #4: Optimization

Optimization uses technology to help improve response rates to web pages (examples above are from Google’ website optimizer)

Automatically test combinations of text, images and calls to action to see which peform the best

Increase the value of your advertising and lead generation by simply converting more anonymous visits into attributable data and conversions

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Tactic #5: Score Your Database

Use the data you already have and make it more valuable

Rank customers into categories

1, 2, and 3 Bronze, gold or platinum

Simple demographic and survey data is an easy way to start and can be done manually

Behavioral data is even better

Simplifies targeting and analytics tremendously

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Tactic #6: Map Sales (or other) Data Onto Your List

Add some external data, like ecommerce sales, to your email list

Imagine the targeting possibilities with this simple, monthly update to your email data

Target high spend customers Promotions for customers who haven’t purchased in several months The possibilities are endless

JanSales

FebSales

MarSales …

cust1@url.com $27.13 $0.00 $0.00 $12.72

cust2@url.com $0.00 $0.00 $98.50 $0.00

cust3@url.com $10.00 $10.00 $10.00 $10.00

…

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Wrap Up

Your email marketing database is probably a more valuable than you realize

Many of the “cutting edge best practices” are easier than they look – especially if you just want to test how well they work

Unlocking the value of the relationships already in place is probably the highest ROI available to marketers today

Thank You