Business Development 2010 Accelerating Success Through Marketing Webinar Series: 4.0 Presented by Don Neal February 16, 2010

Inspiration

Inspire Leadership Be clear on your vision and principles Provide the resources and training Reward the soul and the wallet Communicate

Survey Results: The #1 Most Important Idea From This Series How to better segment our database Measuring results and the ROI of our marketing Research question – would you recommend us; why / why not? Cross-sell and up-sell to current customers Differentiate from our competitors USP Keep marketing fresh

The Service Profit Chain Source HBR, 1994 Operating Strategy and Service Delivery System Leadership Internal Service Value Employee Satisfaction Vision Values Energy Openness Concern Discipline Workplace design Job design & latitude Selection and development Reward and recognition Communication and information Tools for servicing customers

The Service Profit Chain Source HBR, 1994 Operating Strategy and Service Delivery System Leadership Internal Service Value Employee Satisfaction Vision Values Energy Openness Concern Discipline Workplace design Job design & latitude Selection and development Reward and recognition Communication and information Tools for servicing customers Service Concept: Results for Customer Employee Retention Employee Productivity External Service Value Customer Satisfaction Values + Service quality Cost to customer

The Service Profit Chain Source HBR, 1994 Operating Strategy and Service Delivery System Leadership Internal Service Value Employee Satisfaction Vision Values Energy Openness Concern Discipline Workplace design Job design & latitude Selection and development Reward and recognition Communication and information Tools for servicing customers Service Concept: Results for Customer Employee Retention Employee Productivity External Service Value Customer Satisfaction Values + Service quality Cost to customer Customer Loyalty Revenue Growth Profitability Regency Frequency Amount Referrals

Our Objectives This Afternoon Inspiration and marketing leadership Your USP The 3 bonds in a customer relationship – what are yours? An introduction to SEO Keep the momentum

Australia on Globe

– from film to digital imaging – from copying to document management – from Walkman to digital music – from late fees to none – DVD’s by mail vs. retail – cell phones and computers to tell time When Is It Time to Act/Change?

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” Charles Darwin

Survey Results 90% of respondents haven’t calculated the acquisition cost of a new customer 75% have not calculated the LTV (lifetime value) for the top 10 customers 67% don’t use SEO (search engine optimization) to build awareness and generate leads 78% said innovation is a key driver of our company’s growth 89% customize marketing communications based on unique market segments

You can’t change someone’s mind! You can give them information so they can change their own mind!

Don’t be Boring

Dutch Boy Packaging Innovation

Dutch Boy Packaging Innovation

The Three Bonds of a Customer Relationship 1.Financial 2.Relationship 3.Structural

Customers Buy For Three Basic Reasons 1.Financial (Save $; Make $) 2.Relationships (Buy from people they like) 3.Avoid Risk (regulatory, legal, etc.)

You Said… 1.Relationships 64% 2.Financial 32% 3.Regulatory 4%

So… What is a structural bond?

So… What is your structural bond?

Service agreements Environmental monitoring Information

32 You Competition Marketplace What do they value? Marketplace does not value this (waste ) What do you do better? What do they do better?

Your next best customer is the one you already have!

0% 20% 40% 60% 80% 100% 120% 140% Auto Service Chain Business Banking Credit Card Credit Insurance Insurance Brokerage Retail Impact of a 5% Increase in Retention

Embrace your customers 35

Customer Information

What do lists cost? CategoryBase $/M Business$100 - $250/M Catalogs$80-$100/M Children$90/M Education$80-$90/M Fund Raising$50-$75/M Financial$125-$195/M Health$100-$125/M High Tech$100/$125/M Lifestyle$75/M Publishing$65-$100/M $150-$250/M

RFM Recency Frequency Monetary Value 1 – 5 Score

39 Differential Treatment Strategies Lead to Actionable Insight Retain 2-4-4Protect 4-3-3Pamper & Reward Maintain 1-3-4Sustain 4-4-2Cross-Sell Innovate or Abandon Incent and Expand Invest Prospects: Acquire & Convert Selectively “We want to reward you, stay in one of our suites” “We appreciate your business” “We’ve upgraded your status, come check us out”

Let’s Change Gears SEO

Social Media

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It’s Hard to Resist Free The Model  Search  Gmail The world’s information warehouse Relevance + Convenience + Free = POWER

Top Searches Sex God Jobs Professional Wrestling

What do your customers learn about you when they type in a key-word? What do prospects learn? Where do you rank? Do you use Google Analytics? Pay for performance Accountability - ROI

Q1 Marketing Objectives 1.Identify the best business opportunities within the top 20% of current customers 2.Develop key account development plans 3.Produce a measureable ROI; target 10:1

Next Steps 1.Your role as champion - inspire and innovate 2.Dedicated notebook – begin the journey 3.Segment your database – a must-do 4.Determine acquisition costs – less than an hour to do 5.Determine your marketing and sales ROI – shoot for 10:1 6.Assign a full time staff to marketing - consider a focus on SEO 7.Allocate 3+% of sales to 2010 marketing investment 8.Identify current marketing activities that drive awareness, leads, referrals, cross-sell and up-sell – build on what’s working 9.Begin to implement your 2010 marketing plan – start now!

Thank You!