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Ernan’s Insights on Marketing Best Practices

Monday, October 20, 2014

Disney Finds Magic In Reciprocity Marketing

A healthy change is taking place: Consumers are demanding that brands engage them in conversations versus one-way blasts.Disney Marketing
But for this to be effective, both consumers and marketers have to change previous behaviors.
» Consumers have to recognize that to receive more relevant and personalized communications, offers, and experiences, they need to provide deeper personal or business information.
» Marketers have to recognize that to competitively differentiate, they have to provide significantly more personalized communications, offers, and experiences. However, true personalization is based on much more than traditional transactional data. Marketers must earn the right to collect increasingly deeper levels of preference-based data.
How is this accomplished? With trust. According to the 2014 BrandSpark Most Trusted Awards, “Across categories when considering [a] purchase of a new product, shoppers consider it extremely or very important that it comes from a brand they trust.”
Trust is the basis for obtaining deeper engagement with customers. It is a cycle:
Trust makes customers receptive to a reciprocity-based exchange of data in order to receive enhanced experiences.
The improved customer experience reinforces trust.
That, in turn, enhances trust.
Now customers are more motivated to provide deeper additional information.
Marketers can now engage customers in a deeper level of reciprocity-based interaction.
And the cycle continues, based on ever-deepening personalization and value.
An exciting example of reciprocity-based marketing is Disney’s MagicBand bracelet app. In return for the collection of consumer data, Disney offers guests the ability to “enter the parks, unlock Disney Resort hotel room[s], and buy food and merchandise. Plus, [the] MagicBand gives FastPass+ access to all the experiences selected online.” Users of the band and app can receive an email or text message about availability of reservations or rides noted as being preferred experiences.
In terms of data collection, MagicBands link electronically to an encrypted database of visitor information. The bands contain a radio frequency identification (RFID) chip that allows for the collection of intelligence that is coupled with guest input into the My Disney Experience app and Web site (input is voluntary.) All of this data gives Disney valuable information about customer preferences, which are then used to provide high-value experiences.
The Disney value proposition is in sync with findings that have emerged from Relationship Research our firm has conducted regarding what customers expect in a reciprocity-based relationship:
Trust: The marketer can be trusted to deliver on a fundamental brand promise.
Listen: The brand will listen to customers’ needs, suggestions, and concerns.
Deliver: The brand will provide communications and experiences relevant to customers based on their individual preferences.
Key Takeaways
Following are four key takeaways for implementing reciprocity-based marketing strategies:
It is not customers’ responsibility tell marketers what they want. Marketers must ask--and then respond with reciprocity-based customer experiences based on feedback.
Competitive differentiation is rooted in the ability to deliver offers, communications, and experiences based on the exchange of deep customer data and preferences.
Multichannel reciprocity-based marketing addresses the customer experience across all touch points, departments, locations, and company levels.
A high value, reciprocity-based customer relationship needs to be maintained throughout the life cycle of the customer, not just during the points of initial sale or add-on sales.

Monday, September 29, 2014

Use Human Data to Provide True B2B Personalization

Game-Changing Marketing Trends Article by Ernan Roman
Featured on CMS Wire

An enormous shift is occurring in how B2B customers think about engagement and relationships. Customers expect marketers to achieve relevance by providing personalized communications based on their individual preferences, rather than continuing with irrelevant “spray and pray” marketing blasts. It’s this new way of thinking that’s unlocking the true potential of human data.B2B - Personalization

A Shift in Strategy

Gone are the days when B2B prospects and customers would sort through piles of spray and pray “stuff” to uncover the few relevant messages. They expect marketers to find them and provide relevant offers and communications based on their individual needs and preferences. This means that marketers must develop bold new strategies that achieve the delicate balance of requesting in-depth data in exchange for providing the value of significantly improved customer experiences.
That is why after careful research, The UPS Store repositioned itself as a small business peer to peer company which made it more relevant to its target audience. Its research showed that 90 percent of small-business owners would prefer to do business with other local business owners. The UPS Store targeted this small biz niche and carefully crafted its messaging to directly answer their specific requirements.
A marketing initiative was created to let UPS directly connect with this audience in order to provide personalized services, products and offers of real value. They launched a Small Business Solutions portal, offering resources for small-business owners and the Small Biz Buzz, an online community of more than 300 small-business owners.

An Exchange of Value  

Just like their B2C counterparts, B2B marketers are realizing that to be truly personalized, marketing must be based on more than transactional, overlay and inferential data. It has to be based on the individual customer’s stated needs and self-profiled preference information.
However, developing a program to gain progressively deeper levels of self-profiled data must start with a foundation of trust. Per findings from Voice of Customer research conducted by ERDM, B2B customers and prospects are willing to provide trusted brands with meaningful information in exchange for more personalized offers, communications and experiences. We call this exchange of value the “Reciprocity of Value.”
This Reciprocity of Value, built on trust, is the critical aspect of both B2B and B2C data-driven marketing. It is trust, and a perceived reciprocity, that will motivate customers to provide the preference-based information needed to drive truly relevant, engaging communication.
Keep in mind:
bullet Trust is the foundation and basis for obtaining deeper levels of personalized, preference-based data.
bullet Marketers must earn the right to obtain deeper levels of preference data by delivering on the promise of truly personalized communications.
bullet Marketers should strive to build sustainable relationships with customers based on trust, commitment and reciprocity, from the initial prospecting phase to every aspect of the customer lifecycle.

Microsoft's Move Beyond the Product

To better connect with B2B consumers and develop a relationship program that transcended product transactions, Microsoft sought to gain a deeper level of customer understanding. Through VoC research with Microsoft’s SMB business consumers, key factors for improvement in personalization were outlined:
bullet Understand my unique business needs.
bullet Create user levels based on business size, industry and product focus and then create targeted content based these levels.
bullet Develop a relationship program based on the user’s unique needs, not Microsoft’s.
bullet Request user feedback at every touch point. And use that feedback to evolve the customer experience and provide relevant content and communications.
After a comprehensive program of gaining data through a preference-based, easy-to-navigate opt-in process, Microsoft developed ways to deliver on the promise of an enhanced experience. Customers received a welcome email, monthly personalized e-newsletters, and ongoing personalized offers and training.
The results were powerful:
bullet Opt-in rates up to 95 percent.
bullet Open rates greater than 50 percent.
bullet Response rates performing in the double-digits.
bullet Revenue increase of 2 times.
This is what the Reciprocity of Value looked like:
Customer Benefits Microsoft Benefits
Deeper level of personalized experience
Customized communication, training, and services
Improved information relevant to business needs
Opt-in Profile information to drive personalized content and communications
Ability to analyze web and email interaction behaviors
Improved Cross sell/upsell opportunities
In summary, earning the in-depth “human” preference data that drives personalized marketing is an essential strategy for B2B marketers looking to go from transactions to a long-term, value based relationships with customers.

Monday, September 8, 2014

5 Emails Which Drive Value and Response

We all struggle to create emails that are worthy of being opened.
We have to overcome the instinctive “Delete” reflex by our customers and prospects.
Following are 5 opportunities for emails that provide value, engagement and drive response.
Emails
1) Triggered messaging
Triggered messages (meaning those that are personalized, real time, or event related such as confirmations that are sent to subscribers in response to a specific action,) outperform generic emails. One of the reasons these types of emails are so effective is because they are relevant and personalized.
Ideas for triggered emails include:
  • Cart abandonment reminders
  • Order confirmations or shipping confirmations that include a personal thank-you with a time frame based thank you discount on their next purchase.
Additionally, according to eMarketer, for retailers, triggered emails enjoy an open rate nearly 75% higher than nontriggered emails, while clickthroughs more than tripled.
2) Transactional Messaging
According to the Experian’s “The Transactional Email Report, transaction-related emails, [prompted by] customers’ buying behavior, can provide marketers with great opportunity for improving customer service, gaining repeat sales and deepening customer engagement compared with standard bulk mailings…the average revenue per email is two to five times greater and can be up to six times greater than the all-industry average of $0.13.”
But don’t send “off the shelf” impersonal sales-based emails. Today’s transactional messaging, according to the survey is “branded, relevant and engaging...to take full advantage of the high level of customer interest and brand engagement that naturally follows a purchase.” Ideas for incorporating personalized Transactional Messaging include:
  • Re-order reminders, accessory replenish reminders, or sales alerts on products or accessories that obviously relate to a previous purchase.
  • Win-back emails for lapsed customers with personalized incentives based on buying history and preference data.

3) Engaging Email Subject Lines
Being engaging is more than just using your recipient’s name. Be relevant. Be “to the point” and deliver on what was promised within the body of the email. These, according to Christopher Lester, VP of sales at Emma, an email marketing platform, are the keys to successful and engaging email marketing.
Ideas for engaging email subject lines:
Lester advises that, “The email subject line is probably one of the most important pieces of a campaign... It's the beginning statement of the story… The email subject line is just a…way of giving the user [a] quick analysis... what is the value of the email compared to the amount of time dedicated to opening and reading the message? ...You're building relationships and making full connections... If you deliver [on] the value consistently, you will never have to beg for an open.”
4) Mixed Media Emails
Mobile is changing many of the rules for email. Marketers must now create messaging that is delivery-friendly to traditional email inboxes as well as those on mobile devices.
Ideas for mixed media emails include:
  • Today’s consumer is multi-screen and multi-device. Make sure your email messaging provides a mobile device experience that is as good as your desktop experience.
  • Be sure your landing pages are also dynamic so that mobile or tablet users can view your messaging clearly, get to forms, or be able to click with ease.
5) Personalized Emails
There is nothing more engaging than a truly personalized email that is all about you, the individual customer.
Don’t reinvent the wheel. Learn from Amazon how they have taken personalized emails to a new level. The company has the ability to analyze and personalize both online and email content based on preferences, search history and previous purchases. Amazon sends its customers personalized product recommendations that entice a recipient to purchase a previously viewed item.
According to an in-depth white paper from Amazon, “The click-through and conversion rates - two important measures of Web-based and email advertising effectiveness - vastly exceed those of untargeted content.” Recommend that you read this report to gain thoughtful insights on sophisticated and effective personalization.