Unlocking the Value of Your Online Relationships Bill Nussey, CEO Silverpop eMarketing Association Atlanta, October 23, 2007

2 Agenda A brief history of 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 Marketing

4 The Evolution of Marketing - Today Today’s marketing hasn’t changed much over the last 4-5 years  We build lists  We target & segment  We send messages Opt-in & Customer Database

5 The Next Step is Multi-Channel Multi-channel delivery  RSS  Mobile  Postal / direct  Transactional communications Your system can become your communications dashboard for every marketing touch point Opt-in & Customer Database

6 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 database gets more valuable Opt-in & Customer Database Msg Response Data

7 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  behavior can feed back into analytics tool Opt-in & Customer Database Msg Response Data Site Analytics Survey

8 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 & Customer Database Msg Response Data Site Analytics Survey Scoring

9 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 Landing Pages Opt-in & Customer Database Msg Response Data Site Analytics Survey Scoring

10 The Future: Any Business Data Can Drive Campaigns 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 database can now manage a variety of data  It can become the launching point for a new generation of marketing Landing Pages Opt-in E- Commerce Data CRM Data & Customer Database Msg Response Data Site Analytics Survey Scoring

11 This is Great News For Marketers is unique in the world of marketing  No other business system has proven as flexible and actionable as  The ROI of marketing is significantly higher than any other forms of marketing, offline or online The value of your program can grow well beyond the size of your list As tools mature and your programs evolve, your 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 list, grows as you add more information to each name & Customer Database & Customer Database

Why Isn’t Everyone Doing This Today? Three big reasons why marketers are not unlocking more value from their relationships today  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

16 Tactic #1: Surveys and Polls Marketers have spent decades learning to interpolate customer information for scarce data The easiest way to improve the value of your relationships is to just… ask the customer what they think In the world of online relationships, surveys fast, effective and cost almost nothing

17 Tactic #2: Lead Warming Marketers commonly fail to translate an anonymous visit into an attributable prospect relationship Ask for an 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 Website Lead Warming

18 Tactic #3: Tie in to Web Analytics Campaign TypeBroadcastTriggeredLifecycleWeb site click-stream Primary targeting tactic used None, no personalization or segmentation Shopping cart abandon Product replenishment message Click-stream based targeting Open rate20%27%26%33% Click rate9.5%9.3%14% Conversion rate1.1%2.3%2.8%3.9% Integrating web analytics and 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

19 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

20 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

21 Tactic #6: Map Sales (or other) Data Onto Your List Add some external data, like ecommerce sales, to your list Imagine the targeting possibilities with this simple, monthly update to your data  Target high spend customers  Promotions for customers who haven’t purchased in several months  The possibilities are endless Jan Sales Feb Sales Mar Sales… $12.72 $98.50$0.00 …

22 Wrap Up Your 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