What Do Customers Want? - Daniel Burstein presentation for Integrated Marketing Virtual Conference

What Do Customers Want, and are Marketers Giving It To Them?Insights from research with 2,021 consumers and 455 marketers

Daniel BursteinDirector of Editorial ContentMarketingSherpa

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We compared the responses of 2,021 U.S. consumers and 455 marketers on preferred

marketing approaches to determine how well marketers are serving consumers.

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Source: http://www.wsj.com/articles/the-marketing-virtues-of-good-ol-snail-mail-1446491452

Source:http://www.adweek.com/news/advertising-branding/infographic-consumers-know-exactly-how-they-want-be-marketed-167840

http://www.wsj.com/articles/the-marketing-virtues-of-good-ol-snail-mail-1446491452




http://www.adweek.com/news/advertising-branding/infographic-consumers-know-exactly-how-they-want-be-marketed-167840






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IN SOCIAL …

Prominently display social61%Marketers

Consumers

Source: https://www.marketingsherpa.com/article/chart/marketer-survey-attracting-customers-to-use-brands-social-media

https://www.marketingsherpa.com/article/chart/marketer-survey-attracting-customers-to-use-brands-social-media



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IN SOCIAL …


16%Consumers

I see their social media icon

Source: https://www.marketingsherpa.com/article/chart/marketer-survey-attracting-customers-to-use-brands-social-mediaSource: https://www.marketingsherpa.com/article/chart/why-customers-follow-brands-social-accounts




https://www.marketingsherpa.com/article/chart/why-customers-follow-brands-social-accounts


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Speakers

Daniel BursteinDirector of Editorial Content, MarketingSherpa @DanielBurstein

https://twitter.com/danielburstein


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About MarketingSherpa

Based in Jacksonville, Florida, MarketingSherpa — a subsidiary of MECLABS Institute — is a publication specializing in reporting on what works in all aspects of marketing (and what does not). These interviews, case studies and data analyses are published for the entire marketing industry to benefit from. MarketingSherpa, currently in its 17th year, has published more than 7,000 articles on MarketingSherpa.com and hosts MarketingSherpa Summit.

We’re sharing on Twitter!#IMV16

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IN SHOPPING EXPERIENCE …

Tailor email to buying preferences 25%Marketers

17%Consumers

Source: http://www.marketingsherpa.com/article/chart/tactics-marketers-use-to-improve-customer-experienceSource: https://www.marketingsherpa.com/article/chart/improve-customers-shopping-experiences

Tailor promo emails to my preferences

http://www.marketingsherpa.com/article/chart/tactics-marketers-use-to-improve-customer-experience


https://www.marketingsherpa.com/article/chart/improve-customers-shopping-experiences


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Take customer preference data with a

grain of salt

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Original emailFrom This

No headline

Source: http://www.marketingsherpa.com/article/case-study/email-personalization-ctr-ecommerce-site

http://www.marketingsherpa.com/article/case-study/email-personalization-ctr-ecommerce-site




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Tailored email To This

Headline

Product names based on segmentation

information






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Results To This

410%In Click Rate

13%In Daily Total Rev.






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Tailor email to buying preferences25%Marketers

17%Consumers

Tailor promo emails to my prefs


Customers don’t always know what they

want





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Tailor email to buying preferences25%Marketers

17%Consumers

Tailor promo emails to my prefs


Test to understand how customer preference

affects customer behavior





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Online Split TestingDetermine how customer behavior affects customer preference:

Create customer

hypothesis

Make a treatment(s)

based on that

hypothesis

Randomly send traffic to each to compare

performance

Gain customer wisdom

Improve company,

product and other value messages

1 2 3 4 5

More info about online testing: http://www.meclabs.com/training/online-course/online-testing/overview

http://www.meclabs.com/training/online-course/online-testing/overview



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Online Split TestingDetermine how customer behavior affects customer preference:

Create customer

hypothesis

Make a treatment(s)

based on that

hypothesis

Randomly send traffic to each to compare

performance

Gain customer wisdom

Improve company,

product and other value messages

1 2 3 4 5

More info about online testing: http://www.meclabs.com/training/online-course/online-testing/overview

Customer preference

Customer behavior




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Using email click data to

deliver relevant content

Source: http://www.marketingsherpa.com/article/case-study/home-advisor-content-marketing-and-testing

http://www.marketingsherpa.com/article/case-study/home-advisor-content-marketing-and-testing


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2 Days

S/L: Bathroom Remodeling Designs: What’s Your Style?

S/L: 3 Simple Projects to Get Your Home Resale Ready

A

B

S/L: How Much Should a Bathroom Remodel Cost?

Source: http://www.marketingsherpa.com/article/case-study/home-advisor-content-marketing-and-testing



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2 Days

S/L: Bathroom Remodeling Designs: What’s Your Style?

S/L: 3 Simple Projects to Get Your Home Resale Ready

A

B

S/L: How Much Should a Bathroom Remodel Cost?

Results: Relevant content won• +15% lift in open rate• +16% lift in clickthrough

rate• +94% lift in conversion

rateSource: http://www.marketingsherpa.com/article/case-study/home-advisor-content-marketing-and-testing



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IN SOCIAL …


16%Consumers

I see their social media iconSource: https://

www.marketingsherpa.com/article/chart/marketer-survey-attracting-customers-to-use-brands-social-mediaSource: https://www.marketingsherpa.com/article/chart/why-customers-follow-brands-social-accounts






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IN SOCIAL …


16%Consumers

I see their social media icon


Easy for marketer, but

unclear value for

customers






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Before•Great content-specific CTAs• Link directly to site•No specific Social CTAs

More than 24 million email sends

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More than 24 million email sends0%

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More than 24 million email sends

+19 Million +3 Million +.75 Million

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After•Our audience is already using Pinterest for collecting and sharing wedding inspiration and advice• Fuel an organic behavior/reduced friction•Distribute our content beyond our subscriber base

Same CTA concept in top section

Additional CTA to “Pin now, read later” in bottom section

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Newsletter-social integration test results

Understanding User Behavior Is the Key to Social: We chose Pinterest because it natively facilitates the gathering, saving and sharing of wedding inspiration and advice. Our audience is already on Pinterest and this is what they’re using it for.

X Pinterest Follower Growth Re-Pins

Control – Newsletter with Pinterest icon in template 0 0Treatment – Integrated newsletter Pinterest articles +27% +31%

!

31%* Increase in Re-Pins

*Has reached as high as 180%

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Provide free shipping18%Marketers

74%Consumers

Prioritize free shippingSource: http://www.marketingsherpa.com/article/chart/tactics-marketers-use-to-improve-customer-experienceSource: https://www.marketingsherpa.com/article/chart/improve-customers-shopping-experiences





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Provide free shipping18%Marketers

74%Consumers

Prioritize free shippingSource: http://www.marketingsherpa.com/article/chart/tactics-marketers-use-to-improve-customer-experienceSource: https://www.marketingsherpa.com/article/chart/improve-customers-shopping-experiences

Opportunity





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Free Shipping’s appeal shouldn’t be newsFrom the MarketingSherpa library, published in 2005

CONTROL

Source: https://www.marketingsherpa.com/article/case-study/ecommerce-site-tests-how-much

https://www.marketingsherpa.com/article/case-study/ecommerce-site-tests-how-much



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Free Shipping’s appeal shouldn’t be newsFrom the MarketingSherpa library, published in 2005

Source: https://www.marketingsherpa.com/article/case-study/ecommerce-site-tests-how-much

Free Shipping

messaging

$2MIncreased Revenue

TREATMENT




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IN SOCIAL …

Share regular coupons/promos 19%Marketers

56%Consumers

Get regular coupons/promotions







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IN SOCIAL …

Share regular coupons/promos 19%Marketers

56%Consumers

Get regular coupons/promotions


Marketer misunderstanding of customer






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Social media promotions“All of the [garden center] employees and owners I interviewed said they were very hesitant to talk about sales, prices or direct advertising on their Facebook pages. In fact, they attributed this to ‘consultants’ telling them to never sell on Facebook.” – Scott Stebner, Managing Director, Center for Rural Engagement

“While they [customers] did not want to be inundated with advertisements, they did want to be ‘in the know.’ One of the respondents even mentioned that she had talked to a friend who purchased an item on sale during an event and expressed frustration that the business didn’t advertise that event on Facebook. She missed the event and sale. For her, liking Facebook pages meant that she’d be kept ‘in the know.’” – Scott Stebner

From – Green growth: An exploratory study of metro and non-metro garden centers use of new-media marketing

Source: http://www.marketingexperiments.com/blog/analytics-testing/transparent-marketing-research.html

http://www.marketingexperiments.com/blog/analytics-testing/transparent-marketing-research.html

http://www.marketingexperiments.com/blog/analytics-testing/transparent-marketing-research.html

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IN PRODUCT DISCOVERY …

Use online ads60%Marketers

27%Consumers

Use online adsSource: http://www.marketingsherpa.com/article/chart/marketing-tactics-for-new-productsSource: http://www.marketingsherpa.com/article/chart/the-most-popular-ways-consumers-discover-products

http://www.marketingsherpa.com/article/chart/marketing-tactics-for-new-products


http://www.marketingsherpa.com/article/chart/the-most-popular-ways-consumers-discover-products


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IN PRODUCT DISCOVERY …

Use online ads60%Marketers

27%Consumers

Use online adsSource: http://www.marketingsherpa.com/article/chart/marketing-tactics-for-new-productsSource: http://www.marketingsherpa.com/article/chart/the-most-popular-ways-consumers-discover-products

Less expensive for marketers





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IN DIRECT MAIL …

Send physical mail updates 19%Marketers

54%Consumers

Desire physical mail updates

Source: https://www.marketingsherpa.com/article/chart/how-consumers-prefer-to-receive-promotions

https://www.marketingsherpa.com/article/chart/how-consumers-prefer-to-receive-promotions


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IN DIRECT MAIL …

Send physical mail updates 19%Marketers

54%Consumers

Desire physical mail updates

Source: https://www.marketingsherpa.com/article/chart/how-consumers-prefer-to-receive-promotions

More expensive for marketers



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Intronis “Retro-cool” Campaign

Source: http://www.marketingsherpa.com/article/case-study/direct-mail-marketing-multi-channel-approach

http://www.marketingsherpa.com/article/case-study/direct-mail-marketing-multi-channel-approach


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Director of Marketing in the “Atari closet”

Sample Atari

package

Sales opps from the Atari campaign

Intronis “Retro-cool” Campaign




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Dear RecipientFirstName,

Open up this package and enjoy some office fun – courtesy of Intronis. Sadly, however, not all old technology is this “retro cool.”

It’s time to upgrade your data backup and storage. Intronis is delivering the industry’s first, complete, data protection platform designed to help you meet the needs of your clients and manage your backup; all from a single pane of glass.

A current Intronis partner reports BCDR-related labor savings of 2 days/month and 20% overall revenue growth upon adopting Intronis. It’s time to take a fresh look at our product offering so you can start to generate these kids of results for your business.

I’d like to make you a very special offer:

Spend 30 minutes with me to learn what’s new from Intronis and I’ll upgrade your gaming experience by sending you one of the latest gaming consoles. Choose from a Wii, X-Box or PlayStation – no purchase required.

Call me at RSDPhoneNumber or visit www.intronis.com/gotgame to set up your meeting and choose the console you’d like – yours as a ‘thank you’ for your time.

I look forward to speaking with you in the coming days.Sincerely, RDSFirstName RSDLastNameRSDPhoneNumberSchedule a meeting and upgrade your gaming experience: www.intronis.com/gotgame

Sample Letter


http://www.intronis.com/gotgame

http://www.intronis.com/gotgame



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CONVERSATION RATE35%

HIGHER AVERAGE DEAL SIZE 66%

RETURN ON INVESTMENT650%

The Results




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Offer an easy returns process 19%Marketers

53%Consumers

Offer an easy return process






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Offer an easy returns process 19%Marketers

53%Consumers

Offer an easy return process


Concern over costs of returns





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Return policy affect on purchases and expenses• A lenient return policy did correlate with more returns, but…• A lenient return policy even more strongly correlated with an increase in

purchases• More leniency on time limits (e.g. 90 days vs. 14 days) is associated with a

reduction – not an increase – in returns

According to a meta-analysis of 21 research studies with 11,662 subjects by Ryan Freling, Narayan Janakiraman, and Holly Syrdal of the University of Texas-Dallas

Source: https://www.washingtonpost.com/news/business/wp/2016/01/22/the-surprising-psychology-of-shoppers-and-return-policies/

https://www.washingtonpost.com/news/business/wp/2016/01/22/the-surprising-psychology-of-shoppers-and-return-policies/



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IN EMAIL…

Send email90%Marketers

60%Consumers

Subscribe to receive emailSource: https://www.marketingsherpa.com/article/chart/how-consumers-prefer-to-receive-promotions

A majority of consumers and almost all marketers



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Subject Line:Welcome to CNET! Let’s get started

Welcome Email — Control

Product reviews

Tech news

More newsletters

ForumsSource: http://www.marketingsherpa.com/article/case-study/cnet-email-marketing-clickthrough

http://www.marketingsherpa.com/article/case-study/cnet-email-marketing-clickthrough


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Experiment: Welcome email

Test Design — A/B split including:

• Content• Subject lines • Advertisements

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Subject Line: Welcome to CNET! Let’s get started

Welcome v2: Simplified content, picture of editor

Source: http://www.marketingsherpa.com/article/case-study/cnet-email-marketing-clickthrough



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Subject Line: Welcome to CNET! Let’s get startedWelcome v3: Simplified content, no picture & ad




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Subject Line: Thanks for joining! Let’s get startedWelcome v4: Simplified content, ad & new S/L




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Subject Line: Thanks for joining! Let’s get startedWelcome v5: Simplified content, big picture, no ad





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Subject Line: Thanks for joining! Let’s get startedWelcome v6: Simplified content, big picture & ad





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Welcome Email: Results

Email Version Open Rate CTR

Control — Lots of content 32.66% 12.18%V2 — Simplified content, picture of editor 45.46% 20.25%V3 — Simplified content, no picture and ad 43.20% 16.08%V4 — Simplified content, ad and new subject line 44.74% 19.91%

V5 — Simplified content, big picture and no ad 46.63% 20.64%V6 — Simplified content, big picture and ad 46.70% 21.23%

Increases in Opens and CTR in Each TestEach version of the Welcome email outperformed the Control.

Our hypothesis was wrong: For our brand, less is better.!Source: http://www.marketingsherpa.com/article/case-study/cnet-email-marketing-clickthrough




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Welcome Email: Results

Email Version Open Rate CTR

Control — Lots of content 32.66% 12.18%V2 — Simplified content, picture of editor 45.46% 20.25%V3 — Simplified content, no picture and ad 43.20% 16.08%V4 — Simplified content, ad and new subject line 44.74% 19.91%

V5 — Simplified content, big picture and no ad 46.63% 20.64%V6 — Simplified content, big picture and ad 46.70% 21.23%

Increases in Opens and CTR in Each TestEach version of the Welcome email outperformed the Control.

Our hypothesis was wrong: For our brand, less is better.!Source: http://www.marketingsherpa.com/article/case-study/cnet-email-marketing-clickthrough

Simple worked best




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From: Marriott RewardsSubject: We made this video just for you

Source: http://www.marketingsherpa.com/article/case-study/marriott-send-increases-revenue

http://www.marketingsherpa.com/article/case-study/marriott-send-increases-revenue



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Historical View of December Mailings






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Top Takeaways

1

2

3

Use this customer preference data to form hypotheses about your audience

Test those hypotheses against customer behavior

Use this information to better serve the customer

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Thank you

Daniel BursteinDirector of Editorial Content, MarketingSherpa @DanielBurstein

