MARKETING STRATEGY

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MARK2038 Data Base Marketing Strategies II
Week 9 Instructor Santo Ligotti Email
sligotti_at_gbrownc.on.ca
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Digital Marketing-Part II
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This week

• Assignment 4 due
• Effective Internet Advertising
• Effective E-mail marketing in DM
• Viral Marketing and Wireless applications

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Internet Advertising

• Facts we know
• Canada is one of the most wired countries in the
  world
• Canadian Internet penetration is growing overall,
  which means marketers have more opportunities to
  touch consumers than ever before
• Home Internet penetration is steadily on the rise
• The Internet continues to attract more tightly
  focused interest groups to niche site categories
• High speed connectivity continues to grow and
  with it the opportunity to reach Canadians
  faster, and with more technologically
  sophisticated messages
• On-line ad spending will surge to 18.9 Billion
  by 2010-up 59 from an estimated 11.9 Billion in
  2005. Growth will remain steady, rather than
  filled with spikes or valleys. This reflects the
  stability of the industry, both in terms of the
  players involved and their business practices
• Source The Internet Advertising Handbook

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Internet Advertising

• Integrating online advertising seamlessly into
  the overall media plan means keeping an open mind
  about the various ways that the Internet can
  generate consumer impact
• There are key questions you should ask yourself
  in considering when to integrate online media
  into an overall media plan
• Does the message reach Internet users at
  important touch points?
• In a mass media campaign, is there a compelling
  reason for consumers to visit online, or will you
  simply be duplicating offline messages?
• Does you want to create a cool factor?
• How will response be generated and measured?
• Do you want to sustain a long echo?

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Five ways to achieve Great Online Creative

• Keep it Simple
• Never compromise the brand
• Mix it up
• If you don see it, ask
• Define your key metric before you conceive
  creative

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Fifteen Reasons to Advertise Online

• Generate trial of product or service for first
  time buyers
• Increase brand awareness
• Increase use of the brand
• Cross-sell other brands from the same company
• Encourage brand loyalty
• Provide in-depth information about the brand and
  related products
• Develop a database of customers, collect sales
  leads
• Provide or improve customer service
• Test different copy concepts and pricing models
• Generate online revenues
• Reach a target audience missed by other media
• Drive traffic to a retail location
• Recruit employees
• Target by speed
• Drive traffic to a marketers web site

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Popular On-Line Ad Sizes

• Strategically positioned squares and rectangles

• A variety of banners and buttons from the size of
  a business card to a postage stamp

• Tall, vertical banner ad

Source Internet Advertising Handbook
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Negotiating the On-line AD BUY

• Questions for you to ask your media buyer
• Where does the demographic information come from?
• What are the behaviour patterns of the users?
• What are the other on-line advertising
  opportunities, like content solutions
  (co-brands), sponsorship, and e-mail?
• Is the host web site able to accommodate rich
  media?
• How ill you measure your campaign and who will do
  the tracking?

Source Internet Advertising Handbook
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Common ON-line Pricing Models

• The most common pricing scheme for on-line ads
  remains the CPM, or cost per 1,000 impressions.
• Most widely recognized pricing system
• Seen in over 90 of on-line publishing rate cards
• CPM
• COST PER THOUSAND With cost per thousand models,
  the publisher sets the boundary for pricing
• CPA
• COST PER ACTION The advertiser only pays when
  someone actually registers or purchases something
  right then and there. Low risk for the
  advertiser. Site publisher takes a commission on
  all sales generated. Usually a formal audit
  procedure exists between the advertiser and the
  publisher to track sales or registrations to
  determine payments
• CPC
• COST PER CLICK A payment model in which an
  advertiser pays only for the number of
  click-throughs it derives from an ad rather than
  paying a flat rate to run an ad on site
• CPL
• COST PER LEAD An on line advertising payment
  model in which an advertiser pays based solely on
  the number of qualifying leads
• FLAT RATE
• An advertiser rents a space on line and pays a
  lump sum for that piece of real estate.
  Sponsorship is a good example. The sponsorship
  runs in a content area that is a relevant fit
  with the ad message, locking out the competition
  from advertising in that space

Source Internet Advertising Handbook
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Web Measurement Success Factors-A FEW WORDS

• Customers continue to move from traditional media
  to on line media, with many emerging as INTERNET
  ONLY consumers
• A growing number are accessing content from
  mobile devices anywhere, anytime, adding yet
  another variable to the e-content consumer
  demographic mix
• Successful determination of web analytics and key
  performance indicators is paramount
• Our lecture on measurement in WEEK 11 will
  discuss the importance of overall measurement,
  but also channel specific measurement (WEB
  MEASUREMENT WILL BE KEY
• STAY TUNED

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Common Tactics

• E-mail
• Viral marketing
• Wireless applications
• Typically, responses are directed to a Web site
  where the user can get more information and/or
  purchase.

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Why use email to communicate with customers? And
what drives the success of this communication
vehicle?

• Why email?
• Smart email marketing maintains trust-based
  customer relationships
• Fast, cost-efficient communication vehicle
• Can provide rich, dynamic information
• Efficiency to market, timeliness
• Fulfills customer expectations for channel of
  choice

• The 4 Ps help to ensure successful email
  marketing
• Obtain permission from the best customers
• Maintain strict privacy with the information
• Profile the whole customer
• Send personalized content

Source The Canadian Inter_at_active Reid Report.
Email Marketing 2005 The Resurgence of the
Medium Winter 2004 Ipsos/Reid
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Best Practices for Email communication

• Sell the value of receiving email to customers
• - Explain how the customer will benefit from
  receiving email communication (e.g., receive
  time-limited product offers, updates on product
  features)
• Make email registration easy for the customer
• - Provide email address via multiple channels
• Immediate confirmation of receipt of email
  address
• - Immediate acknowledgement should be sent out
  that email addresses have been registered
• Advise the customer about what kinds of messages
  they should expect to receive
• - e.g. special offers and incentives, product
  and service solutions, and channel enhancements
• Ask the customer about their preferences to
  ascertain what is relevant to them
• - This enables us to respond to their needs with
  appropriate product and service solutions
• Ask questions to determine customer types beyond
  demographics
• - e.g. Determine various life stages that may
  not be apparent from customer data age may be
  independent of when a customer becomes a first
  time homebuyer or new parent
• Time the emails to match the customer purchase
  process

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Best Practices for Email communication

• Unsubscribe and email address change options are
  always available
• - The customer should be able to opt out of
  email communication or change their email address
  through various channels this option will also
  be available at the bottom of every email

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How does CIBC collect and verify email addresses?

• Email address collection and verification can be
  bundled with existing direct marketing programs
  (TB,DM,INTERNET) or email collection can be done
  as a stand alone program (INTERNET)
• Verification should include confirmation that
  company can use the email address, and specify
  what it will be used for email must only be
  employed for those purposes identified (CMA
  Standard)
• The companys Privacy Policy will be provided
  wherever email collection is being sourced, as
  well as the companys web site (CMA Standard)
• Promote the benefits of providing an email
  address (receive time-sensitive offers, product
  feature updates, privacy ensured)

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What is emailed?

• The following are some guidlelines as to what
  should appear on all outgoing email marketing
  communication
• From address should be clientsponsor_at_cibc.com
• A clear subject line and body text in the
  communication that accurately reflects the
  content, origin and purpose of the communication.
  (CMA standard)
• Note that titles such as Free offers or
  Winning prizes should be avoided as many spam
  filters use these key words as a signal that the
  email is spam. Please refer to the appendix for
  a detailed list of examples of other spam
  filters.
• Acknowledgement of the customers name.
• Examples Dear Joe, or Dear Joe Smith
• The email marketing message may acknowledge a
  customers product ownership but will not contain
  any account, password, credit limit or balance
  information.
• Please do not reply to this email text which
  advises customers not to reply to the email.
• Email replies are sent to the clientsponsor_at_cibc.c
  om mailbox which is monitored by a designated
  group. They are able to answer questions
  relating to the email, but will not fulfill
  requests for customer or account information,
  unsubscribing to future marketing or transaction
  requests.
• The email should contain a phone number for the
  company
• The email should be available in English and
  French (The language that the email is sent in
  will be based on the customers language
  preference)

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What is emailed? (contd)

• The email is required to be be created in two
  versions (HTML and text), although only one
  version of the email will be sent.
• The email must be mapped to a static HTML page on
  a website in the event that the targeted email is
  not viewable
• All email images are required to map back to the
  companys main web site
• There should be no direct hyperlinks to the main
  web site. Phishing emails often contain links
  to phony sites that collect IDs, account
  information and passwords.
• Customers are asked to type in www.cibc.com in
  their browser. Hyperlinks to content splash
  pages, tools and information pages and
  unsubscribe pages are permitted. (Note that
  these pages do not collect personally identifying
  information)
• Company Privacy Policy (Accessible via hyperlink)
• Opt-out information allowing a customer to
  unsubscribe to email marketing (CMA standard).
• The instructions that a customer should follow to
  update their email address (to continue to
  receive further email communication). Changes to
  customer email address information can be made
  through Online Banking, at the branch or through
  Telephone Banking.

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Opting out and email replies

• CIBC will always provide unsubscribe capability
  to all outgoing emails
• Customers can also change their opt-out
  preferences through Telephone Banking or the
  Branch
• An unsubscribe request for email marketing
  applies to all product communication through the
  email marketing channel
• Need consistent opt-out language and an estimated
  timeframe of how long it takes to have the email
  address removed.
• Example
• In the past you have provided us with your email
  address. As a result, CIBC Credit Card Services
  may occasionally send you relevant information
  about new or existing products and services. If
  you no longer wish to receive future
  communication, you can unsubscribe by clicking
  here. Please note that your request to change
  your Do Not Solicit Email preference may take up
  to 90 days to process.
• The Clientsponsor_at_cibc.com mailbox will be
  monitored by Internet Channel Correspondence Team
  (ICCT). ICCT can answer customer questions and
  direct customers to the appropriate channels for
  opt out requests, however ICCT will not be
  involved in actual opt-out request fulfillment.

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How to send an email?-CIBC EXAMPLE

• ICCT (Internet channel correspondence team) is
  briefed on all upcoming email marketing campaign
  programs, including timing, content and
  projected volumes
• Marketing pulls the list of names based on
  campaign criteria and business rules
• List is sent from Marketing to Agency
• Agency to have an email deployment tool (such as
  Maestro), of which CIBC purchases a one-time use
  nb creative, copy, and visuals are hosted at
  CIBC (HTML and text)
• The tool uses the list of names and sources the
  creative through the CIBC host so that the email
  is sent from CIBC the From address should be
  clientsponsor_at_cibc.com e.g. PersonalDeposits_at_cibc
  .com would be the appropriate address for a GIC
  and Deposits sponsored campaign
• After the data file is received by the agency,
  the agency sends data dumps to Marketing and
  there is a test run of the email deployment to
  the email seed list to ensure correct formatting
  (3 days after data file receipt by the agency)
• The email is sent to customers 2 days after the
  email test run by the agency
• The tool automatically tracks raw clicks, open
  rates, unsubscribes, bouncebacks (invalid email
  address or email box is full) as well as
  click-throughs, and web-tracking.
• (Splash pages must map back to a cibc.com
  address).

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• How to send an email?-CIBC EXAMPLE
• If a customer hits reply, the response goes back
  to clientsponsor_at_cibc.com for updating or
  response. The Internet channel correspondence
  team will answer questions that come through by
  email. E.g. Is this an authentic email from
  CIBC?
• ICCT is not able to fulfill any customer
  requests via email. E.g. ICCT cannot take GIC
  renewal instructions via email, change email
  addresses or take DNS change requests.
• Using the unsubscribe and email bounceback
  results, CIF is updated with the most accurate
  email address information using an automated
  batch process. CIBC Visa flags invalid email
  addresses and unsubscribes from the CIBC Visa
  database. CIRM and Visa are developing a process
  to enable Visa unsubscribe email requests and
  invalid email addresses to be captured in CIF.
• Example
• Solicitation preference for all products email
  marketing will be changed to N for all
  unsubscribe email requests
• Invalid email addresses will be removed from CIF
  (there will be no corresponding change to the
  customers email solicitation preference)

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Best Practice Summary Table
Best practice criteria Expedia Wells Fargo Kraft Motley Fool
Permission Opt-in Characteristics set by client Opt-in Characteristics set by client Opt-in Characteristics set by client Frequency determined by client (daily, weekly, bi-weekly) Opt-in Characteristics set by client
Value Relevant as content is determined by client preferences Relevant as content is determined by client preferences Relevant as content is determined by client preferences Relevant as content is determined by client preferences
Brevity Determined according to customer preferences (travel types, airline routes) Determined according to customer preferences (product types, rates) Determined according to customer preferences (type of recipes, cooking for singles, couples, families, occasions) Determined according to customer profile (serious investor, conservative, novice investor)
Interaction Unknown Unknown Links embedded in the email Unknown
Source Forrester Forrester Relationship Marketing Forrester
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Best practices Sell the value of receiving email
to customers
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Best practices Make email registration easy for
the customer
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Best practices Immediate confirmation of receipt
of email address

• JC Penney confirms receipt of registration
  immediately

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Best practices Advise the customer about what
kind of message that they should expect to receive
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Best practices Ask the customer about their
preferences to ascertain what is relevant to them
Expedia customers classify the offers and
vacation types that motivate them to travel to
their favorite destinations
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The Motley Fool uses personas to fuel email
content
Best practices The Motley Fool asks questions
to determine customer types beyond demographics
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Wells Fargo times emails to match customer
purchase processes
Best practices - Time the emails to match the
customer purchase process
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Best practices - Unsubscribe and email address
change options are always available
TheStreet.com gives users a chance to change
their registration in every email
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Avoiding spam filter what to avoid

• Subject Line Characteristics to Avoid
• Subject contains a unique ID
• Subject contains a UCE tag (Unsolicited
  Commercial EMAIL)
• Subject contains G.a.p.p.y-T.e.x.t
• Subject contains lots of white space
• Subject contains too many raw illegal characters
• Subject has exclamation mark and question mark
• Subject has many exclamations
• Subject is all capitals
• Subject is missing
• Subject starts with dollar amount

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Avoiding spam filter what to avoid
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Criteria for success for direct marketing and
email marketing campaigns

• Existing direct marketing programs at CIBC use
  some of the following measurement criteria
• Response rate lift (Contact vs. Control)
• Total and incremental number of responders from
  contact
• Total and incremental product balances from
  contact
• Responders usage of product or service
• Change in customers total funds managed
• Reduction in product attrition and customer
  attrition
• Additional factors to be included that can
  determine the success of an email marketing
  campaign
• Number of successfully delivered emails,
  hardbounce, softbounce (undeliverable emails) and
  Email unsubscribes
• Raw clicks
• Open rates (including the number of times that an
  email was opened)
• View time rates
• Forward rates (forwarding the email to another
  email address)

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Phishing and online fraud

• What is phishing?
• Also known as brand spoofing
• Using fraudulent email and web pages to gather
  personal, financial and sensitive
• Information for the purposes of identity theft
• How is phishing carried out?
• Customers receive spam email (mass non
  permissioned email messaging) or
• pop up windows that appear to come from
  legitimate businesses
• Customers are asked to personal or financial
  confidential information such as
• passwords, account or social insurance numbers
• The message may contain a link that leads to a
  fraudulent website or pop up
• window
• Messages usually have an urgent tone and
  suggestions that failure to respond may
• result in risk to accounts or credit cards at
  CIBC
• Phishing emails may even contain credible
  information in the subject title such as
• the customers name and last four digits of their
  bank account number (information
• which may have been stolen from a legitimate FI
  email)

Source CIBC website
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Phishing and online fraud (contd)
Signs that your message may be a phishing
email Spelling mistakes and poor grammar e.g.
Atention, Update your CIBc records, Tecnhical
issues (2) The address of the sender (From)
may be _at_cibc, however, the actual e-mail address
itself is not from CIBC. E.g. the email may be
From CIBC Service, but the actual email address
is 123_at_123.com. (The actual email address sender
can be determined by clicking on the address and
selecting Properties. (3) Poor branding (4)
The email does not contain a valid URL (5)
Communication uses words such as mandatory,
reactivate, unexplained funds depletion
Source CIBC wesbite
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Advantages of E-mail over postal direct mail

• No postage or printing charges average cost
  e-mail message lt 0.01, direct mail .50 to
  2.00.
• Offers an immediate and convenient avenue for
  direct response (hyperlinks to Web sites using).
• Can be automatically individualized to meet the
  needs of specific users.

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Solution Permission Marketing

• Ask people what they are interested in.
• Ask permission to send them information
• Target meaningful offers to the individual.
• Do it in an entertaining, educational, or
  interesting manner
• Track results and gain knowledge.
• Gather information about customer needs,
  interests, and backgrounds to deepen relationships

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Timely E-mail Delights Customers

• Screen Thank you for your order!
• E-mail Thank you for your order!
• E-mail Your order will shipped on
• E-mail Your order is in transit!
• E-mail Was everything to your satisfaction?
• Cost to send of all of the above

0.
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Building an E-mail List

• E-mail lists are hard to obtain and maintain.
  There are three ways to build a list
• House list (generated through Web site
  registrations, subscription registrations, or
  purchase records)
• Harvest e-mail addresses from relevant discussion
  groups or bulletin boards
• Rent from a list broker (i.e., CORNERSTONE)
• With individuals having more than 1 e-mail
  address it is very difficult to match them with
  individual customers and prospects in a firms
  database.

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Viral Marketing

• Viral marketing a combination of e-mail
  marketing and word of mouth.
• Uses the power of referrals
• Encourages prospects to forward e-mail to
  friends, co-workers, family, and others
• Marketers must be careful not to invade or
  exploit customers e-mail

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Example Hotmail

• Hotmail started with only a 50,000 promotion
  budget
• Every message tagged with a promotional signature
  file
• 6 months later, 1 million subscribers
• 18 months later, 12 million subscribers
• Microsoft acquired the firm for 400 million in
  stock.

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Examples
http//www.zzzzzzzzz.com.br/ http//www.comeclean
.com/ http//www.oooooouch.com/ http//www.hangi
ngtestdummy.com/ http//www.entertainmentanytime.
com/
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Wireless Internet Applications

• E-marketing applied to mobile devices.
• SMS (Short-text messages)
• Instant Messaging
• 600 billion short text messages a month were
  flying between mobile phones worldwide by the end
  of 2006.

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SMS Marketing Examples

• VOTING
• Voting is an exciting way to engage your audience
  and let them have their say. Newspapers, magazine
  and television are prime examples. Big Brother 3
  claimed 3 million votes. Think not only of the
  revenue generated by voting alone, but the
  opportunity to offer other mobile services such
  as text alerts, ring tones, logos etc
• Instant Win
• We can deliver exciting instant win prizes where
  customers can find out if they have won a prize
  straight away. We use a very clever random winner
  selection process. There is no need to fear that
  there will be too many instant winners as Dragon
  will no longer select winners once all prizes
  have been claimed. You can have multiple prizes
  i.e. 20 games consoles, 100 console games, 1,000
  ring tones as instant prizes. Dragon can also
  deliver mobile content such as ring tones, logos,
  java games etc as instant runner-up prizes.
• Location Based Services (PROXIMITY MARKETING)
• To drive footfalls into your nearest store, bar,
  club, theatre, cinema, gas station etc, you may
  wish to consider using location based campaigns.
  You simply request the user to text in permission
  for us to track them down via the mobile phone.
  Accuracy can be as good as 100 metres in the
  cities

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SMS Example Heineken

• Heineken, used an SMS sales promotion to
  capitalize on the British pub tradition of quiz
  nights
• P.O.P. signs in pubs inviting customers to call a
  phone number from cell phones and type in the
  word play as a text message.
• The customer received a series of 3 multiple
  choice questions to answer.
• Correctly answering all the questions scored a
  food or beverage prize (special verifiable number
  to the bartender) and 20 of all players won.
• Feedback a great promotion...consumers found it
  fun sellers found it to be a hook.

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Location-Based (Proximity) Marketing

• Location-based marketing Promotional offers that
  are pushed to mobile devices and customized based
  on the users physical location.
• A global positioning system (GPS) in a handheld
  device or automobile
• Plus user address information stored in a
  database.

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Location-Based Marketing

• From a marketers perspective the advent of
  location-based marketing can include many
  benefits
• A captured target. The consumer is already in or
  near your place of business. Remember, this is
  location-based marketing. A customer is much more
  likely to come through your door if a competitors
  store is a twenty minute drive away, but your
  store happens to be right around the corner from
  where they are standing.
• Increased Impulse buying. Real time delivery of
  advertising prompting benefits of immediate
  response. Example Come in within the next 30
  minutes and receive 20 off your meal.
• Development of one-to-one relationship marketing.
  Consumer purchasing history can be examined,
  thereby enhancing future marketing messages.
• Direct marketing spending effectiveness. True
  targeting of promotional materials. Materials are
  delivered electronically and on demand, as
  required. No hard copy waste or excess printing
  inventory.
• Psychological Nurturing. The consumer 'feels like
  a somebody,' building brand recognition and
  loyalty.
• Increased return on investment (ROI) Repeat or
  additional consumer purchases during a visit.

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BLUE TOOTH TECHNOLOGY

• Definition BlueTooth is a specification for the
  use of low-power radio communications to
  wirelessly link phones, computers and other
  network devices over short distances. The name
  "Bluetooth" is borrowed from Harald Bluetooth, a
  king in Denmark more than 1,000 years ago.

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Media Comparison Chart