Crossing the Line: Unlocking the Value of Online Relationships Michael Weston Managing Director, Silverpop (EMEA) Internet World – 1 st May 2008 (Stand E555)

2 Internet World 2008 – Stand E555 What’s this talk about? Lines aabove / below / through / across... rredefine the line Crunch wwhat’s happening to your marketing budget? Habit bbreak the re-acquisition cycle The Seven Steps ttactics to recession-proof your marketing Image: Addiction by Trond Elling Haveland, Norway

3 Internet World 2008 – Stand E555 Drawing the line – 20 th Century model Advertising Direct Marketing TV Posters Print Radio Direct Mail Sales Promotion Broadcast Coupons Exhibitions TelesalesPersonalised Cinema

4 Internet World 2008 – Stand E555 The 21 st Century model: crossing the line Advertising Direct Marketing AcquisitionConversionRetention Search Affiliate Programme Banners RSS Mobile marketing BroadcastPersonalised Loyalty schemes Sponsorship

5 Crunch

6 Internet World 2008 – Stand E555 What’s happening to your marketing budget?

7 Internet World 2008 – Stand E555 Habit

8 Breaking the habit “We can no longer rely on ‘newbies’ – i.e. market growth – to grow our business. We’ve got to make sure the people we already know come back for more.” a leading UK internet retailer, July 2007 “I’m fed up with paying Coupon Sites to bring back people who are already customers, at a discount... and then claim 30% of the sale!” Another leading UK internet retailer, April 2008

9 Internet World 2008 – Stand E555 7 Steps

10 Internet World 2008 – Stand E555 The Seven Step Programme – Step One 1.ROI: Identify which measurements matter  Total sales revenue generated by marketing  Incremental sales revenue from existing customers generated by marketing  Conversion rates  Time to conversion  Advocacy (i.e. Customer-get-Customer etc) Digital budgets are forecast to stay the same or grow for 60% of European marketers in the current year thanks to trackable ROI, immediacy of return and the ability to test (and implement) quickly.

11 Internet World 2008 – Stand E555 The Seven Step Programme – Step Two 2.Put your customer first Establish (two-way) communication with your customers listen to their feedback communicate on their timetable segment and target more than double the ROI The US DMA shows an ROI of $57.25 for every $1 spent on marketing... more than double the ROI of other digital marketing channels.

12 Internet World 2008 – Stand E555 The Seven Step Programme – Step Three 3.Gather actionable data... and use it! nine times more revenue s that include Web analytics data can generate nine times more revenue than one-size-fits-all broadcast messages. Better still, much of the work required to do this can be automated. Behaviour / DataTargeted Offer Last product purchasedPromotion on complementary item Amount purchased in last 90 daysTarget moderate purchasers to buy more Amount purchased last yearOffer % discount for increasing this year’s spend Amount purchased to dateLoyalty incentive to best customers Date of last web visitUpdate of new items when available Date of last customer support visitQuery quality of service, offer more help/incentive to buy Page most visitedEncourage purchase of specific items on that page Last time arrived from click throughImprove relevance by repeating similar call to action DemographicsTargeted offers such as store openings, anniversary offers Customer satisfactionEnable forwarding of offers to friends & family; compensation

13 Internet World 2008 – Stand E555 The Seven Step Programme – Step Four 4.Co-ordinate messaging across channels  Your customers will not view your TV, press or direct mail activity in isolation from your online activity. Numerous case studies reinforce the power of cross-media messaging e.g. DABS show heightened purchase from customers who receive both and direct mailed catalogues  Tying data together from attributable offline activity with all your online channels will deliver a clearer, more targetable picture of your customers Forrester March 2007: customers spend more online than non- customers. They buy on impulse from promotions. They forward offers to friends and family.

14 Internet World 2008 – Stand E555 The Seven Step Programme – Step Five 5.Prioritise as your marketing hub  Three quarters of marketers who integrate with other direct activity show improved campaign results  85% of marketers who combine Web analytics data to power targeted life cycle s show a heightened return on investment

15 Internet World 2008 – Stand E555 The Seven Step Programme – Step 6.Use quick test-and-implement across all your marketing  Test your assumptions does a visit to Support necessarily mean a dissatisfied customer? which offers particularly resonate well with which types of customer? does time of day/day of week matter? can you improve results by following up customers who opened but didn’t purchase?

16 Internet World 2008 – Stand E555 The Seven Step Programme – Step Seven 7.Feedback is a fact of life: embrace it  Your customers don’t see your s or Web site in isolation so don’t isolate their responses in silos! Track everything and build a 360 o picture  clicks and opens, post-click analysis, Web analytics, call centre feedback, purchase history... Forward to a friend  make it easy and measure it Blogs, Social network sites Customer reviews on your website or in s * - Source: Bazaarvoice case study, August 2007 increase in conversion rates of 35.7% A Bazaarvoice case study in August 2007 showed an increase in conversion rates of 35.7% for the same products after introducing customer reviews on the Web site*

17 Internet World 2008 – Stand E555 When the going gets tough... When marketing budgets come under close examination, focus shifts to what can be shown to work  Digital marketing is fast, measurable, effective and improvable via testing Improving conversions to sale will counter high cost of acquisition Keeping the customers you have – and selling them more things more often – will make your budgets deliver more value If you do better holding on to your customers it’s harder – and more expensive – for your competitors to prise them away from you

18 Internet World 2008 – Stand E555 Silverpop serves market leaders across all sectors

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