View
3.417
Download
1
Category
Preview:
DESCRIPTION
Citation preview
Creating Relationships:
Recognizing the Value of
Database MarketingMichael Stich,
Group Director, Strategic Planning
Currently provides interactive planning to clients. Focus
areas: e-commerce, digital retail, analytics/measurement,
mobile, social media, and relationship marketing.
Published author and featured speaker: E-commerce, the
Digital Home, Home Networking, the Future of Broadband,
The Asian Internet
Technology and Telecom Strategy / Marketing background
(Dell, McKinsey, TI)
B.S. in Computer Engineering from Tufts University and an
M.B.A. with Marketing focus from the MIT Sloan School of
Management.
Michael Stich – Group Director, Strategic Planning,
Bridge Worldwide
Bridge Worldwide - Key Facts
Staff 290 Digital Professionals
Founded 1979
Awards
Services Strategic Planning, User Experience Planning, Visual Design, Technical Development, Social Marketing, SEO, CRM, Emerging Platforms, Account/Project Management
Culture Top 25 Small Companies to work 4 years running2006, 2007, 2008 & 2009
Cincinnati (HQ)302 West Third StreetSuite 900Cincinnati, OH 45202Main: 513.381.1380
New York498 Seventh AvenueNew York, NY 10018Main: 917.224.9573
Bridge Worldwide – Our Difference
Database Marketing:
Why Bother?
Consumers have unprecedented choice and control
What I want,
When I want it,
Where I want it,
In the forms I want,
As much or as little,
Filtered by my peers,
Backed by expert opinion,
Without unwanted interruption,
And then I’ll share it with my “friends,”
But don’t you dare tell a soul you know me.
Result: Marketers expected to respond –
using data and personalization
• Clients increasing their analytics
resources across marketing and IT
• Data quality control growing more
important
• Resulting Winners: those who know
and focus on data reliability
• Resulting Losers: those who fail in-
market measurement validation
Database Marketing:
The Basics
What Is Database Marketing?
Database marketing is a form of direct marketing using databases of consumers or potential consumers to generate personalized communications to promote a product or service for marketing purposes. Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select consumers for communications.
But the opportunity is much greater…
Create an ongoing, 1:1 relationship with a
large, diverse population
Single ChannelMultichannel
Number of
Communication
Channels
Mass Awareness
Trial, Loyalty, Consumer Care,
Increased Usage, Cross-Sell,
Line Extensions
Marketing
Objectives
LowHighPotential for Brand
Engagement
Single Brand PromotionMultibrand/Scale PromotionExample
LowHigh% Online
Small, HomogeneousLarge, Heterogeneous
Consumer
Segment Size
and Diversity
When Not to
Build a Database
When to Build
a Database
Database
Marketing
is a way to create
a personalized,
ongoing
relationship with
a large, diverse
population.
Why Do It? To Create a Relationship
Best Practices
Database Quality (Over Quantity)
• 80 For 20 Rule Applies
• Budweiser: 1.2% of
buyers = $170/year
• Iams: 1% of buyers =
$93/year
Source: Catalina/CMO Council study of
1,300 brands
Brand Collaboration (1+1=3)
Segmentation and Targeting: Potential Ways to Personalize
Behavioral• New/returning user
• Clicks
• Category affinity
• Purchases
• Visits
Time-based• Time of day
• Day of week
• Season
• Recency
• Frequency
Traffic source• Organic search
• PPC
• Direct
• Display / iMedia
• Affiliate
Environment• IP address
• Country / population
• OS / browser
• Screen resolution
Existing data• Analytics
• CRM
• Demographics
• Psychographics
Personalization Through Increased Segmentation
One Voice Across Touchpoints (By Segment)
Watch-Outs
Respect Consumer Privacy
Who’s Doing It Well?
Some Case Studies
Email Personalized by:
• Demographics
• Product codes
entered
• Rewards received
• Sweepstakes entered
• Website activity
• Time in program
As many as 7,000 unique
monthly email layouts
Research proves that
personalization drives
engagement.
And, engagement drives
sales.
Personalized Offers Drive Results
• +100k users in first month, +600k today
• Email open rate of 40%
- vs. 16% industry average
• 34% incremental volume
- People who did not use newspaper coupons
• Targeted emails result in 2x redemption
• Further builds the P&G Everyday Solutions
database
• Kroger enjoys higher share on new P&G items
Nike Is Shifting Its Entire Marketing Model
“We’re not in the business of keeping the media companies alive.
We’re in the business of connecting with consumers.”- Trevor Edwards, VP Global Brand Management
“If we can do something to benefit our consumers and
serve the needs of athletes to perform better, they will
return to our brand.”- Stefan Olander, Global Director for Brand Connections
“Nike+ has become an indispensible service, giving runners a
continued deep connection to our brand.”- Michael Tchao, General Manager for Nike Techlab
And Experiencing Strong Results
Successfully defending against Adidas/Reebok and Under Armour.
In its first six months, Nike+ helped drive an 8% increase in profit.
CEO Mark Parker promised to grow sales 50% in the next five years.
But it’s turning “mass” and “scale” on its head…But it’s turning “mass” and
“scale” on its head…
Emerging Trends in
Database Marketing
Consolidation Underway:
Islands Giving Way to Unified Views of the Customer
• Google + AdMob
• Omniture + Adobe
• Nielsen + facebook + Catalina
• comScore + Omniture
• New media-planning tools from
audience measurement firms
• Google measuring across
platforms…
Rebate
Sampling
Activity
Demographics,
Life Stage
Attitudes &
Interests
Syndicated
Data
Transactional
Data
Predictive
Models
Media
Habits
Promotional
History
Web Site
Activity
SOURCE: TARGETBASE
Benefits of a Unified View
Centralized, all-media view of the consumer
More robust consumer data, the trusted source for targeting
Action-driven system to enable 1:1 communications with consumer
Flexible, real-time, targeted offers/messages delivered at moment
of consideration
Easy access to data and reporting to help marketers make
informed decisions
Scalability without significant increases in cost or resources
Centralized data/list management for maximum cost-efficiency
Analytic “playground” to support testing, scale opportunity
identification, modeling & measurement
So Where Is This
Headed?
Unified Customer Intelligence Raises the Role of Analytics in Marketing
SOURCE: FORRESTER
Brand management will shift focus
TODAY TOMORROW
Hub and spoke Connected nodes
Command and control Listen and respond
Militaristic Cooperative
Mass messaging Two way dialog
Sales in the channel Sales everywhere and integrated
Regional Truly global
Trial and awareness Connection and retention
The value equation for database marketing
MEANING RELEVANCY VALUE
Connect with
consumers where
they are
When, where and
how they want to
connect with you
To move them
beyond consideration
to purchase and
advocacy
Database Marketing in 2020
• Simplified, natural, universal
access to unified data
• Data structures: from developer-
defined to user-defined
• Data values: from dynamic to
real-time
BUT:
• Increased automation =
increased volatility!
Summary
• Consumers Demanding Personalization, Marketers Have The Tools
• Data Can Be Used For Help OR Spam – Be Careful!
• Great Examples: Coke Rewards, P&G eSAVER, Nike +
• The future: More meaningful and relevant experiences, delivered by
more integrated, dynamic and automated database marketing
Thank You!
Michael StichGroup Director of Strategic Planning
Bridge Worldwide, a WPP interactive and relationship marketing agency, was named one of the Top 25 Places to Work in America
in 2006, 2007, 2008 & 2009 by the Great Place to Work Institute.
Bridge Worldwide
Address and Map
ph 513.618.6788
cell 513.545.2627
fx 513.381.0248
Email | LinkedIn | Twitter | Facebook | SlideShare | Bridge Worldwide Home Page | Marketing With Meaning Blog
Recommended