Email marketing is awesome. It’s one of those things that has relied on a confluence of circumstances, shifts in attitudes, and technology to flower, but now it has. Just in time, in fact, for brands like Ben & Jerry’s to declare it dead and hop on to social media.
Some years ago a few people in the digital marketing world decided to see if by applying brand marketing principles to email, we might have the medium for proving that online had real, measurable commercial value. Spammers clearly thought the same, and could demonstrate it worked. But around ten years ago spam started being effectively controlled by technology solutions built into our email applications. Brands that wanted to send email to their customers had to get emails white-listed. Branded emails became credible.
At the same time consumer use of email became pretty much universal. As an elective medium it genuinely had power – it’s only there when you open your email programme. But if you’d given your favourite brands, or simply the place you bought your stuff from, permission to say hello, it had legitimacy. The email newsletter suddenly had currency.
In 2003 a few people decided to see if there was room to apply Direct Marketing principles to email. I was so keen I went on a three month hunt for an email bureau that could run segmented campaigns. Finding none (or at least none I could afford) my agency built its own system. To be honest, it was great in theory, but we could never quite get it to work properly. Live re-segmentation based on recipient behaviour was laudable as an aim, but every time we fixed a bug in the technology we tickled another and everything fell over.
Slowly along came fantastic, robust technology providers - the kind that love to fix broadcast problems at two o’clock in the morning - and we were saved. Email marketing became eCRM, everything got segmented, and we started to play with behaviour-based targeting. Fantastic. So fantastic in fact that last year The Sun’s Dream Team Fantasy Football saw a 93% rise in revenues from digital - in three months!
What we’ve learned from all this emailing is that you can track people from start to finish. You can find out how their attitudes change over time, both through inference based on observing their behaviour, and through outbound validation using email and online surveys. We can, as we did with FMCG giant McCain Foods, cross-validate against the real world, benchmarking brand consideration and watching how it changed over six months of precision emailing (up 11% as it happens).
Then a brand like Ben & Jerry’s (whose product I love but at my age can no longer scoff until it’s empty) goes and abandons email for social. I’m sure social is another link in the customer tracking that needs to be incorporated into the strategy. And in fact until recently that was the one thing you couldn’t do. Yes, buzz tracking posited sentiment, but you couldn’t keep your eye on a person, or a segment.
Well, technology is changing. Now there’s the desire to complete the journey outside of email and into social, following people around their digital lifestyle as it were, we finally have the technological capability to do so. We’re incorporating social into eCRM strategies, and we can audit the journey from first contact to sales revenue. It’s a hit. ECRM is no longer confined to email, SMS and landing pages. Technology has set us free.
Thursday, 5 August 2010
Thursday, 29 July 2010
Ad:tech seminars in September
7JCVSZFA8YCZ
I’m going to be speaking at Ad:tech again this year. The first session is at 10.30–11am on Tuesday 21st September:
How to create a profitable eCRM programme
With brand consideration up 11%, eCRM has revolutionised marketing for FMCG giant McCain Foods. As a result, sales to customers within the brand's database went up 38%. This talk will show you clearly and concisely how an eCRM programme to sharply increase brand engagement, brand consideration and sales revenues.
The second will be at 11.50–12.20 in the IDM Academy:
ECRM strategy made simple
I’m going to be speaking at Ad:tech again this year. The first session is at 10.30–11am on Tuesday 21st September:
How to create a profitable eCRM programme
With brand consideration up 11%, eCRM has revolutionised marketing for FMCG giant McCain Foods. As a result, sales to customers within the brand's database went up 38%. This talk will show you clearly and concisely how an eCRM programme to sharply increase brand engagement, brand consideration and sales revenues.
The second will be at 11.50–12.20 in the IDM Academy:
ECRM strategy made simple
- Using FMCG and retail case studies to show the practical steps to a successful eCRM campaign
- Ten Top Tips for successful revenue generation
Tuesday, 20 July 2010
Why my love of Ben & Jerry's isn't over just yet
Over the past couple of weeks there's been quite a bit of buzz about Ben & Jerry's dropping email in favour of social media. It stemmed from an email sent by their UK people to email subscribers, letting them know the monthly moosletter was being canned and asking recipients to fan them on Facebook. It's not quite switching off email (they'll use it still for special promotions) but it's pretty close. According to the quite rightly other-side-of-the-story article, Ben & Jerry's in Vermont isn't following this particular herd, and will carry on regardless.
I commented on the story as originally reported when it broke. My view is that a move to drop an entire marketing channel seems insane for a brand that appeals to people who like ice cream - kids, hippies, adults, old folk, squares alike. We all love Ben & Jerry's. Almost everyone out of their teens uses email. Indeed some kids and teens still use it (though the XML channels r00l increasingly). For instantaneous interaction between a brand and an audience there's nothing quite like social media. For longer-term, planned engagement based on deep understanding of behaviour/demographic/motivation-based segmentation, there's nothing (yet) quite like email.
Where email, and its grown-up cousin eCRM, comes in at its best is in shifting brand perception. A well-paced, well-segmented eCRM campaign over eight months can be persuasive in a way that an ad campaign cannot. You can make a case through demonstrating an experience and involving people in a journey that you cannot do by being interactive or sociable. I think social media channels are brilliant for maintaining and reinforcing a brand's positioning, adding a layer of openness for instance. And I think eCRM is exceptional for changing behaviours through understanding motivation and basing communications on that understanding. Email, SMS and the web can be segmented in a way that is invisible to users. The same cannot yet be said of the Facebook experience.
I am sad that ben & Jerry's has decided to focus entirely on the ephemeral in the UK, at the cost of a long-term brand engagement strategy. It's all gone a bit tactical. And when Facebook fades they'll have to jump on the next big thing. I think it's shortsighted. Customers are, or at least should be, forever. I'll be a Ben & Jerry's customer for as long as I remember its well-meaning roots. But as I'll never be a fan on Facebook it's going to be tricky for them to keep reminding me why I love their brand.
I commented on the story as originally reported when it broke. My view is that a move to drop an entire marketing channel seems insane for a brand that appeals to people who like ice cream - kids, hippies, adults, old folk, squares alike. We all love Ben & Jerry's. Almost everyone out of their teens uses email. Indeed some kids and teens still use it (though the XML channels r00l increasingly). For instantaneous interaction between a brand and an audience there's nothing quite like social media. For longer-term, planned engagement based on deep understanding of behaviour/demographic/motivation-based segmentation, there's nothing (yet) quite like email.
Where email, and its grown-up cousin eCRM, comes in at its best is in shifting brand perception. A well-paced, well-segmented eCRM campaign over eight months can be persuasive in a way that an ad campaign cannot. You can make a case through demonstrating an experience and involving people in a journey that you cannot do by being interactive or sociable. I think social media channels are brilliant for maintaining and reinforcing a brand's positioning, adding a layer of openness for instance. And I think eCRM is exceptional for changing behaviours through understanding motivation and basing communications on that understanding. Email, SMS and the web can be segmented in a way that is invisible to users. The same cannot yet be said of the Facebook experience.
I am sad that ben & Jerry's has decided to focus entirely on the ephemeral in the UK, at the cost of a long-term brand engagement strategy. It's all gone a bit tactical. And when Facebook fades they'll have to jump on the next big thing. I think it's shortsighted. Customers are, or at least should be, forever. I'll be a Ben & Jerry's customer for as long as I remember its well-meaning roots. But as I'll never be a fan on Facebook it's going to be tricky for them to keep reminding me why I love their brand.
Wednesday, 12 May 2010
Email unbound
Everyone thinks of email as being more or less a broadcast medium. Email agencies and bureaux send millions of emails as newsletters every month to addresses lodged in databases. Some send them daily. Noone expects a reply.
But email has a richer use. With apologies for the reminder, but email was the way you had a conversation without picking up the phone. You send a message to your mate, and when they’re ready to answer they do. You can have conversations in real time, or with a delay for timezones, research or holidays. Email involves your counterpart in the decisions about how the conversation is paced, where it leads to, when it changes venue, when you meet up.
We appear to have lost sight of the dialogue. It’s easy to do so: if you’ve got 20,000 address on your database or 800,000, managing dialogue can be a daunting prospect. And notice I said addresses, not customers. More often than not the email broadcasts marketers manage go blind to everyone they can reach. So email gets a bad reputation, and newsletters have dwindling response rates. Where once it thrashed Direct Mail, now response rates are in the lowest single figures.
We all know what the solution is though. Segmentation makes response rates leap.
Imagine you’re sending an email to ten thousand people with three unbeatable holiday offers in it, one for families at the top, one for retired people in the middle, and one for singles at the bottom. And let’s assume that everyone reads the first offer, two thirds read down to the second and a third scroll down to the third. If the audience is equally split between the three target groups, the maximum possible response rate is 6,666.
If we could divide the audience into three segments, and send one email with one offer to each, the maximum possible response rate is ten thousand. That’s a huge difference in effectiveness. If you started with this three-part email, and it really is an unbeatable offer, just by segmenting it you increase your sales by 50%.
So that’s segmentation. Segmentation is a science – one which we practice and improve all the time. It can be really simple like the example above, or it can get very complex. We can segment by, for example, behaviour (what media they consume, do they request a brochure before making a decision, which wines do they prefer), or by demographics (where they live, how many there are in the family, what they earn), or by motivation (whether they are interested in their kids’ health, or the environment, or what their neighbours think). When we start working with a client this is what we address first, by looking at what data is available either in the client’s hands or commercially, because this will give us insights into what messaging might work to drive increased response.
Segmented email marketing is incredibly powerful, but it’s nothing to do with technology, and the technology vendors will always work with specialist eCRM partners with long experience in segmentation strategy to devise the campaigns they deliver for you.
ECRM adds something really special to all this. ECRM is channel-agnostic, in other words it’s concerned with reaching the customer wherever they are - email, SMS, social media or websites. A great eCRM strategy uses every touchpoint available to deliver the right messages for the right moment in the decision-making cycle to the right person. ECRM leverages segmentation through email, but creates a relationship through observing how customers behave and what they find most motivating by tracking across every digital venue, mobile to landing pages to social media, and that’s when email marketing becomes something different, something which transforms businesses through radical changes in revenue.
But email has a richer use. With apologies for the reminder, but email was the way you had a conversation without picking up the phone. You send a message to your mate, and when they’re ready to answer they do. You can have conversations in real time, or with a delay for timezones, research or holidays. Email involves your counterpart in the decisions about how the conversation is paced, where it leads to, when it changes venue, when you meet up.
We appear to have lost sight of the dialogue. It’s easy to do so: if you’ve got 20,000 address on your database or 800,000, managing dialogue can be a daunting prospect. And notice I said addresses, not customers. More often than not the email broadcasts marketers manage go blind to everyone they can reach. So email gets a bad reputation, and newsletters have dwindling response rates. Where once it thrashed Direct Mail, now response rates are in the lowest single figures.
We all know what the solution is though. Segmentation makes response rates leap.
Imagine you’re sending an email to ten thousand people with three unbeatable holiday offers in it, one for families at the top, one for retired people in the middle, and one for singles at the bottom. And let’s assume that everyone reads the first offer, two thirds read down to the second and a third scroll down to the third. If the audience is equally split between the three target groups, the maximum possible response rate is 6,666.
If we could divide the audience into three segments, and send one email with one offer to each, the maximum possible response rate is ten thousand. That’s a huge difference in effectiveness. If you started with this three-part email, and it really is an unbeatable offer, just by segmenting it you increase your sales by 50%.
So that’s segmentation. Segmentation is a science – one which we practice and improve all the time. It can be really simple like the example above, or it can get very complex. We can segment by, for example, behaviour (what media they consume, do they request a brochure before making a decision, which wines do they prefer), or by demographics (where they live, how many there are in the family, what they earn), or by motivation (whether they are interested in their kids’ health, or the environment, or what their neighbours think). When we start working with a client this is what we address first, by looking at what data is available either in the client’s hands or commercially, because this will give us insights into what messaging might work to drive increased response.
Segmented email marketing is incredibly powerful, but it’s nothing to do with technology, and the technology vendors will always work with specialist eCRM partners with long experience in segmentation strategy to devise the campaigns they deliver for you.
ECRM adds something really special to all this. ECRM is channel-agnostic, in other words it’s concerned with reaching the customer wherever they are - email, SMS, social media or websites. A great eCRM strategy uses every touchpoint available to deliver the right messages for the right moment in the decision-making cycle to the right person. ECRM leverages segmentation through email, but creates a relationship through observing how customers behave and what they find most motivating by tracking across every digital venue, mobile to landing pages to social media, and that’s when email marketing becomes something different, something which transforms businesses through radical changes in revenue.
Tuesday, 20 April 2010
Acronymtastic – SCRM, ECRM, CRM and the death of DM
I work for an agency that’s made some sort of name for itself in eCRM. That’s Electronic Customer Relationship Marketing. It’s not CRM, which is Customer Relationship Management if you’re into sales management software, or ...Marketing if you’re a DM agency. If you’re a DM agency (that’s Direct Marketing), thanks for all the principles, but your industry’s buggered.
Why? Because the principles of segmentation, so beautifully applied to awesome effect in eCRM, which now generates millions through digital channels, are starting to reach social. And social media is about engagement in real time. Which is what the digital agency world has been practising for its entire history – I started an interactive agency in 1994, which makes me positively historical. Without digital provenance, when Social channels (gaggle shopping, live feedback and peer advice) meet eCRM and forms SCRM (yes I know), the DM world that gave us so much in discipline finds itself detached from usefulness.
Which is a shame. There are some amazing people and minds working in the industry. And while brands continue to send out three million mailing packs, it will survive. But slowly, those mailing packs that cost £1 each are being replaced by digital nudges, creating continuous contact even with the thinnest segments in the long tail. One day mail will be used for that special something. And SCRM and eCRM will have truly blossomed.
Wednesday, 7 April 2010
What’s our story?
We’ve been doing a brand vision exercise within the wider plc my company belongs to. Someone asked me if I could contribute something that would tell the Underwired story. This, I think, illustrates what we do quite well.
McCain Foods asked us to tell them if digital can engage customers with a brand as well as TV can. We told them we’d prove it one way or the other.
McCain Foods asked us to tell them if digital can engage customers with a brand as well as TV can. We told them we’d prove it one way or the other.
We took over their eCRM programme. We optimised their segmentation, and created a comms strategy to engage brand resistors and deepen the relationship with brand engagers. We devised creative for a monthly, segmented email campaign. Finally, we created a regular survey to match the brand tracking being done by Hall & Partners on TV audiences.
In the first ten months, engagement with brand resistors went from 14% to 63%.
Brand consideration rose 11% compared with the Hall & Partners benchmark.
In six months, average transaction value went up 3%. The core segment grew 29% in volume. And sales revenue went up by a whopping 38%.
Focus has switched from proof to growth. Underwired’s now building a web-based eCRM hub to replace the brand’s website. We’re running highly targeted acquisition campaigns to build the most valuable segments. And our client, too, is thoroughly engaged.
This is what we do. I just thought I’d share it with you.
Tuesday, 16 March 2010
The DMA and overcapacity of Direct Mail
Not often I take issue with something someone has written about direct marketing (you, stop laughing at the back!), but the Direct Marketing Association’s outgoing Robert Keitch, in responding to an observation by a colleague, has set me off.
Charles Grant-Salmon, the chair of 4DM Group observed (in this article) that financial firms may be easing off on using direct mail, and that this may have been a factor in the demise of the (very) short-lived Blackburns DMS. Keitch, until today chief of membership and brand for the DMA, added that he felt that overcapacity wasn’t limited to the direct mail industry – indeed in a tweet by the DMA earlier today they implied that the web had a worse overcapacity problem.
What they ignore, in their entirely sunny, happy way, is that while overcapacity may well be a feature of each, one does not equate to the other. Overcapacity in the direct mail market is down to production cost, waste, time-to-market, and broadcast cost, not to mention inability to reach outlying segments for the same reasons.
Overcapacity in digital is down to exactly the opposite – its abundance is down to its miraculously low cost (imagine sending a million mailing packs, call it £500,000. That’s £1,000 in emails). It’s down to its demonstrable and comprehensively auditable effectiveness, and the number of players diving in with innovative ideas to service the rapidly growing market. It is categorically not down to a lack of marketers desperate to get to grips with it.
Direct mail’s in decline (though it has its brilliant uses – Mercedes has used DM beautifully). The dodos are dying - yet there’s an abundance of bue sky. Don’t fall into the trap of relating the two.
Charles Grant-Salmon, the chair of 4DM Group observed (in this article) that financial firms may be easing off on using direct mail, and that this may have been a factor in the demise of the (very) short-lived Blackburns DMS. Keitch, until today chief of membership and brand for the DMA, added that he felt that overcapacity wasn’t limited to the direct mail industry – indeed in a tweet by the DMA earlier today they implied that the web had a worse overcapacity problem.
What they ignore, in their entirely sunny, happy way, is that while overcapacity may well be a feature of each, one does not equate to the other. Overcapacity in the direct mail market is down to production cost, waste, time-to-market, and broadcast cost, not to mention inability to reach outlying segments for the same reasons.
Overcapacity in digital is down to exactly the opposite – its abundance is down to its miraculously low cost (imagine sending a million mailing packs, call it £500,000. That’s £1,000 in emails). It’s down to its demonstrable and comprehensively auditable effectiveness, and the number of players diving in with innovative ideas to service the rapidly growing market. It is categorically not down to a lack of marketers desperate to get to grips with it.
Direct mail’s in decline (though it has its brilliant uses – Mercedes has used DM beautifully). The dodos are dying - yet there’s an abundance of bue sky. Don’t fall into the trap of relating the two.
Subscribe to:
Posts
(
Atom
)