The . Ecosystem. Index.

Transcription

1 The Ecosystem i Index

2 Index 1 Marketing: A Moving Target 3 Defining the Ecosystem 5 The Campaign is Born: Data s Origin Story 6 A Word on Append 7 Nurture Data From Addresses Into Revenue 11 Use Better-Than-Best Practices 14 Do More Than Simply Get There 15 Cycle Continues as is Sent, Data Multiplies 17 Put The New Data To Use 19 Cultivate Leads to Drive Sales and Strengthen Your Ecosystem s Future 20 Don t Neglect the Transactional Experience 22 The Optimized Ecosystem: Always Evolving 24 The Ecosystem Checklist i Index

3 Marketing: A Moving Target A smartphone-toting professional taps the refresh button to see three new messages pop into view. Two are from coworkers, and one is from a company she s never heard of, promising amazing savings on the latest tech gadgets. She effortlessly swipes to mark the message as spam, and moves on to the business of the moment. According to data from emarketer over 50% of internet users check multiple times per day. Each time that check happens, intricate systems converge behind the scenes to deliver new messages. And while users freely click and tap through a digital world of interconnected systems and complex processes, marketers yearn for a peek behind the curtain to better understand how software algorithms, ESPs and ISPs select where and when s are delivered to intended recipients. The professional in the previous example takes for granted the hundreds of processes it took to deliver an unwanted , as well as the hundreds she will initiate by sending the to her spam folder. Nor should she these processes must be invisible to users for the best user experience. But for marketers, deep knowledge about the information 1 Marketing: A Moving Target Back to Index

4 ecosystem surrounding an leads to a better understanding of the best tactics to employ for maximum deliverability rates, open rates, click through rates and, of course, sales. The path to implementing marketing practices that deliver better results starts with a better way to understand the big picture. 2 Marketing: A Moving Target

5 Defining the Ecosystem An ecosystem is, by definition, about balance. In any ecosystem many equally important elements interact with each other, creating a series of cycles running in perfect balance. In the natural world, this manifests in many organisms interacting in ways that keep the entire system balanced. For example, in an ocean s ecosystem, a common food chain depends on plankton to survive. Plankton feed krill, which in turn feed fish, which in turn feed seals, and whales eat many of those organisms, eventually giving back nutrients that organisms lower on the food chain will use to grow and multiply. However, when one link in the chain breaks, the rest of the chain is affected, and the ecosystem as a whole suffers, which is why each component must be carefully nurtured for survival. can be viewed as a similarly complex system of moving parts, finely and, more often than not, coarsely tuned to effortlessly send and receive messages. And like all ecosystems we interact with, one element out of balance can upset the entire process, causing each subsequent cycle to suffer. Failing to capture the attention of the professional in our opening example could be the result of an unbalanced part of the ecosystem. 3 Defining the Ecosystem Back to Index

6 It s a fitting analogy and one that modern marketers can take to heart. Like conservation and moderation help our natural world stay in balance, smart marketers are spending more time working with an ever expanding universe of data to tune, target and deliver messages that earn tangible results. Yet, if the ecosystem is as complex as asserted in this ebook, where should marketers begin? 4 Defining the Ecosystem

7 The Campaign is Born: Data s Origin Story The optimized campaign always begins with data. Data is to marketing much like plankton is to the ocean s wildlife it is a part of many larger processes, and bigger success stories take root and grow from a solid foundation of data. Most ecosystems have an abundance of data. Without marketers spinning it into actionable insights data can quickly overpopulate and overwhelm the ecosystem. Being data-driven isn t simply a good idea anymore. It s an absolute must to build strategy from hard metrics and deep, actionable data while keeping the ecosystem in balance. Though marketing isn t as easy as it was a decade ago, there are also now many more options for collecting the addresses of future or current customers. At this point, many businesses have large lists of their own, be it from transactional lists or point of sale offline collections. Opt-in web forms and social media provide further chances to establish a connection, and it s also a good idea to incorporate data from past campaigns it s impossible to adapt to the future without knowing what worked and what didn t in the past. 5 The Campaign is Born: Data s Origin Story Back to Index

8 A Word on Append append is still an efficient method for collecting high-value customer addresses. Though it s recently come under criticism, that s more about press opportunities and less about responsible marketing. append is still a great way for advertisers to expand their customer database, drive new business, and enhance marketing to a targeted audience. Those that understand append s high value and best practices are sticking with it, continuing to deliver results with proper use of the tactic. While that may seem like the logical conclusion, abuse of simple message relevancy and value has unfairly made appending a controversial subject. A conservative methodology to append-based marketing works. A multi-vendor approach from a wellmanicured database backed by data from carefully vetted partners is the best way to ensure list quality and message relevancy. Personalization is becoming the status quo in marketing, and indeed s with greater relevance to the recipient are less likely to be flagged as spam. A recent MarketingSherpa report found that 56 percent of respondents consider an spam if it s simply not interesting to me. Again, it s about being adaptable. With consumer attention spans decreasing and the likelihood of getting marked spam increasing, it s important to have the ability to customize to the modern recipient. 6 A Word on Append Back to Index

9 Nuture Data From Addresses Into Revenue Of course, simply capturing an address does not guarantee any future revenue. Instead, data must be nurtured an address must be developed into an ROI asset. Bad data costs organizations between 10%-20% of revenue. CIOZone In the digital age, the sheer amount of data necessitates choosing a partner that can take a large data load and turn it into actionable information. Knowing how to provide insights by properly analyzing and enhancing data is the key to boosting ROI and impacting sales. The data pile only increases as time goes on a recent IDC study states that digital information is doubling every two years, so there s never been a better time to start harnessing that data. Implementing an optimized data management system now will avoid major headaches down the road. 7 Nurture Data From Addresses Into Revenue Back to Index

10 Digital information is doubling every two years. IDC study This starts by ensuring clean data for the foundation of an campaign. Because one element functioning incorrectly can harm the entire ecosystem, data hygiene is incredibly important to future success bad data simply must die off to keep the ecosystem balanced and strong. In fact, dirty data kills an before it s sent. is a crowded space these days, which means new challenges arise all the time. Even messages that are completely CAN-SPAM compliant can trigger the spam filters of major ISPs, which is why the quality of the address list is so important. Duplicates and incorrect addresses will lead to low returns, and a shiny new CRM won t fix the problem if it s filled with bad data anyway. Solving that challenge requires a solution with commitment and discipline to apply a process consistently. There are many reasons that a database may contain bad data opt-outs, records of the deceased, contacts that have moved or switched companies and changed s. And often times these bad and duplicate records complicate a database. While there are many more variables in the dirty data scenario, they all add up to the same issues: inefficiency and extra costs. It may seem cheaper to let data hygiene remain a low priority and focus on flashy marketing campaigns and glitzy sales initiatives, but the cost of operating with poor data is potentially much higher in the end. In fact, dirty data is expensive for the entire organization. On average, 2 to 3 percent of data goes out of date every month. Over time, this adds up to very costly errors. CIOZone estimates that bad data costs organizations between 10 and 20 percent of revenue, which doesn t 8 Nurture Data From Addresses Into Revenue

11 include the cost of acquiring unused or wasted data, or the time spent analyzing bad data. Bad data can lead to extra pressure and high costs on other areas of the company as well. Errors in data that impact customers can quickly lead to a negative turn in company reputation, and in the digital era, unsatisfied consumers have more chances to publicly express their frustrations than ever, and no company wants to be viral in a negative way. The opportunity cost can be especially painful not only was marketing spend wasted on a low-value or nonexistent address, but the potential revenue is completely lost as well. Meanwhile, current customers that feel they aren t being catered to or are being handled inefficiently will find a company that can offer better services. On top of all this, bad data can give senders a negative ISP reputation that is very difficult to overcome, and any ability to personalize and tailor s effectively to recipients will be lost. To overcome the dirty data challenge, there are a host of tools available to verify lists, including update, using a global suppression table, verifying, and IP address processing. Building from scrubbed data is the first step toward a enhancing the customer experience, which leads to better conversion rates and a boost to the bottom line. Closing the loop between marketing and sales should always be the main goal of marketing initiatives, and efficient data hygiene ensures that marketing dollars aren t being wasted on dirty data. Marketers must commit to continuously maintain excellent hygiene for their own customer and prospect lists, as well as making sure that partner companies are applying the same best practices against their own databases and programs. Once lists are clear of dirty, harmful elements, the optimized campaign can be built but just like every cycle in the ecosystem, the must be built with care. Reaching inboxes is harder than ever. Insider s Global Deliverability Benchmark Report shows that inbox placement rates declined from 81 percent in the first half of 2011 to 76 percent in the second half of the year, and that stat gets worse. The study found a big gap between marketers using best practices and 9 Nurture Data From Addresses Into Revenue

12 average marketers when the study excluded vetted marketers who use above-average best practices, only 71 percent of opt-in s are seen making it to inboxes. The fact is that ISPs are more sophisticated than they once were. Reputation filters can now block s based on many factors, not solely content. At the same time, recipients are more readily marking s as spam, leading to a decline in sender reputation. 10 Nurture Data From Addresses Into Revenue

13 Use Better-Than-Best Practices To overcome challenges that can clog up efficiency in the ecosystem, marketers have to stick to the best practices, and then some and not simply the usual rules for avoiding ISP filters, but for customer engagement as well. The should be designed for visual appeal with logos featured prominently, yet without being overly noisy. Subject lines should be optimized based on extensive testing, and kept to 49 characters or less; any longer and it may get cut off when viewed in the user s mailbox. Subject lines should also include the call-to-action in order to entice recipients to open the . Messages should be kept short and direct, with the summary and a clear call-to-action above the fold to maximize click rates. Longer descriptions can be linked within the . Remember that bullets are a marketer s friend bullet points for selling points (or value points if it s a retention ) are a quick and clear way to get the point across. Always use universal fonts, and don t forget to include social media buttons to give subscribers plenty of options to get in touch. Offers should feel exclusive and be highlighted in the subject line, as well as include an offer end date to establish a sense of urgency. If a specific landing page is being used, make sure it mimics the offer highlighted in the . And of course, be prepared 11 Use Better-Than-Best Practices Back to Index

14 for mobile in 2011, 21st Century Marketer found that 32 percent of US mobile users 18 and older check personal 1 to 3 times daily on their phones. That stat is likely much higher a year later. Subject lines should be kept to 49 characters or less. To fully optimize an for its recipient, marketers have to listen to what the customer wants. Customers are constantly bombarded with communication in 2012, and if they aren t getting relevant information, marketers are going to see dismal returns. An April 2011 report from emarketer stated that 46 percent of respondents would buy more from those that personalize their buying experience across all channels, and 42 percent would value a brand more if it remembered their buying behavior from all channels that were previously used for purchase. Clearly targeting is key, but staying relevant to high-value targets is just as important. Make sure to know the demographic that s most valuable to the business what are the geographic and lifestyle characteristics of this demographic? This is where having a targeting specialist comes in especially useful. Once data has been thoroughly scrubbed, someone has to be able to make sense of it for it to be of real use. Infogroup Targeting Solutions uses 35 custom categories to segment lists, ensuring customization and relevance. To stay relevant, content and images should be matched to their audience. This helps avoid an increase in opt-outs, complaints and deletes, and maintains good sender reputation. Logically, many complaints and opt-outs come from recipients outside the ideal target audience, so it s important to stick to high-value targets. Even if the s subject line and content are well developed, the results will be unimpressive if the has no relevance to its audience. 12 Use Better-Than-Best Practices

15 Technical design plays a factor in engagement and deliverability issues as well. Certain technical specifications make s more likely to end up in spam folders. To combat spam flags, use HTML software, not Word, Publisher, or desktop graphic design software. Also avoid CSS, JavaScript, Submission Forms, Layers, and rich media like Flash movies or animation much of this won t render correctly upon delivery. Keeping it simple is a common theme here, to a point. Use basic HTML tags in coding, and minimize graphics and images. Generally, no more than a third of the design area should be images or graphics, and the rest should be formatted text. When it comes to the image-to-text ratio, the higher the ratio, the higher the spam score. No matter the goal of an marketing campaign, the focus must be on the correct areas from start to finish. MarketingSherpa s Marketing Benchmark Report emphasizes the need for pre-flight testing, stating that 54 percent of B2C and 53 percent of B2B marketers found improving deliverability to be a significant challenge for marketing effectiveness. Subject lines and from lines must be tested and optimized, and offer performance must be thoroughly analyzed to find the best recipe for success. Infogroup Targeting Solutions advocates paying attention to delivery timelines and pre-flight testing for as many potential issues as possible. It s also a good idea to check for any URL or Cloudmark blacklists. 13 Use Better-Than-Best Practices

16 Do More Than Simply Get There Simply hitting inboxes is a good start, but it means nothing if communications don t engage customers. Not only does it lead to more conversions, but it s also the new rule in ISP decisions more recipient interaction means more ability to continue high deliverability. Managing sender volume is important, but follow-up s can also be useful. If a recipient didn t open and , or opened an but didn t click through, dollars can be left on the table if a follow-up isn t sent. The still time can include a more aggressive offer to further entice reluctant recipients. Be sure to keep unique creative for each list source as well. Rename links and images or use different offers for each list vendor. This ensures that the reputation of one list doesn t affect others. 14 Do More Than Simply Get There Back to Index

17 Cycle Continues as is Sent Data Multiplies Once the is carefully constructed and optimized for user engagement, it s time for it to get out there and create even more actionable data. Plankton will eventually be returned to the ocean in the form of nutrients, and the data that is returned from each campaign is what provides nutrition for strong future campaigns. The most crucial period for success in an campaign is 30 to 60 days in, as senders typically ramp up the volume of s being sent. ISPs place new senders on a probationary status for 30 days or more, closely monitoring the activity and s being sent. Avoiding complaint rates is always the goal, but to stay in good graces with ISPs, s must not be marked spam more than 0.1 percent of the time per any 24-hour period. This equals 1 spam complaint per every 1,000 messages in a 24-hour period. Hard bounce rates, or s being sent to invalid addresses, will also land senders in hot water with ISPs. A sender must stay below 10 percent per 24 hours for hard bounces, meaning 1 invalid address in 10 s is allowed. Spam trap rates vary by ISP, but even one can lead to deliverability problems that 15 Cycle Continues as is Sent, Data Multiplies Back to Index

18 are tough to recover from. Engagement rates also need to be tracked. If complaint rates are over 0.1 percent and open rates are under 2.5 percent in a 24-hour period, bulking rates and reputation issues are possible. All these obstacles add up to a key need from an earlier cycle in the process good, trustworthy data. One way to build ISP trust is by staying consistent with volumes and sending frequency. ISPs reward consistency, so marketers should only increase their daily send volume by 20 to 30 percent per week. 16 Cycle Continues as is Sent, Data Multiplies

19 Put the New Data To Use One campaign breeds even more data, and performance tracking is what will separate future success from future failure. Marketers must also know what they want to measure. What are the goals of the campaign? Whether it s acquisition, cultivation or retention, setting up ways to measure success in relation to campaign goals is a must. It s also important to have many methods of measurement. Getting into inboxes ensures that a brand at least gets its names in front of subscribers. Web analytics used in conjunction with campaigns can help decipher whether branding in s was enough to increase web presence. Along the same lines, s should also include multiple call-to-action mechanisms. The optimized marketing campaign will be capable of multichannel performance tracking, delivering performance metrics from any call-to-action directive. For example, if a phone number is included, metrics must be available from the call center. Sales conversion tracking may seem like a no-brainer, but it s important to track the conversions of those in an campaign that may 17 Put The New Data To Use Back to Index

20 purchase through a different channel. If possible, include a coupon code that can be posted and used universally, and then track the use of the code. With more avenues for purchase than ever before, it s easier than ever for a customer to find what they want when they want it, using whichever purchase method they prefer. Great data paired with insightful analytics optimizes marketing efforts that can spill over into other channels as well, ensuring customers are found where they want to be reached. Multichannel calls to action and more ways of tracking those channels will give a great perspective on how the ecosystem is affecting the overall cycle of business revenue. 18 Put The New Data To Use

21 Cultivate Leads to Drive Sales and Strengthen Your Ecosystem s Future In between acquisition and retention efforts lies a crucial, often overlooked stage: cultivation. Turning leads into closed sales is always the goal, but many leads need more than a single to get there. Leads must be fed the appropriate amount of communication to cultivate into sales too few plankton and the whale population will suffer, yet too many plankton will result in an overabundance, devaluing their worth to the whale. Similarly, cultivating leads means hitting the sweet spot with just the right amount of offers, not so few that a lead never turns into a conversion and not so many that a lead is overwhelmed or uninterested. Once again, data is at the heart of this cycle. Leads are driven to sales by gathering insights from intelligent testing and analytics. The key is to isolate top-performing strategies and build on them for high-value targets. Analytics and intelligent modeling will find what makes certain segments respond more readily, and why. From there, the high-value segments can be targeted with an offer that piques their interest. Remember stay relevant. Offers for services and products should be timed intelligently, and make sure seasonal or holiday offers are sent at a period that maximizes their potential. 19 Cultivate Leads to Drive Sales and Strengthen Your Ecosystem s Future Back to Index

22 Don t Neglect the Transactional Experience A recent MarketingSherpa report found that 71 percent of those surveyed see retention as the top priority in Often, unleashing the unrealized value in existing programs can have a huge impact, and transactional messaging is an excellent tool for immediate customer retention efforts. It s a chance to do more than simply communicate shipping information or order confirmations. Sure, the sale has already been accomplished, but by delivering relevant marketing information at a point when the customer is already listening, there s a chance to enhance the customer experience and drive even more sales. Think about in biological terms just because a whale has just eaten a full meal doesn t mean it won t eat another right afterward if it s offered in an easy, intriguing way. 71% see retention as the top priority in MarketingSherpa 20 Don t Neglect the Transactional Experience Back to Index

23 Although more and more companies are increasing sales with engaging transactional s, many still see transactional s as a cheap solution already in place and thus a low priority, continuing to focus only on full promotional s. Marketers may perceive a difficulty in integrating transactional and marketing s. However, transactional messaging holds too much value to be overlooked. Ecommerce Benchmark Guide found that 57 percent of consumers surveyed have a positive view of marketing content in transactional s. Marketing Profs found that transactional s have 75 percent open rates, while Expert.org reports a 14 percent increase in click-through rates for transactional s versus commercial s. With the right solution, integration of marketing and transactional s is a seamless process, not a cause for headaches. Although transactional messages are not opt-in marketing messages, they must follow CAN-SPAM guidelines that require the primary message of the communication is the transaction itself the subject line as well as the body of the must be primarily in reference to the transaction. However, 20 percent of transactional content can and should be leveraged for promotional and educational material about the sender s brand and other products that the customer may find suitable. According to a study by Econsultancy, the use of transactional s for marketing rose 16 percent from 2009 to 2010, and a 2010 emarketer study found that 42 percent of B2C companies and 38 percent of B2B companies consider including marketing promotions in transactional s a tactic that works well. The growing emphasis of marketing content in transactional s is a direct reflection of optimizing customer engagement by taking advantage of a point in the sales cycle when customers are giving their full attention. By injecting relevant product content into transactional messages, customer communication becomes personalized, and they are able to see more value in the brand, in turn maximizing ROI. Because transactional messages go to all buyers rather than simply opt-in addresses, it s also the only opportunity to reach the non-opt-in buyer segment. 21 Don t Neglect the Transactional Experience

24 The Optimized Ecosystem: Always Evolving Ecologists and biologists have learned that any natural ecosystem is constantly changing as the organisms involved learn how to best survive and adapt to their surroundings. The marketing ecosystem is similarly in a constant state of flux, requiring adaptation for survival and success. ISP methods for determining sender reputation are always changing and becoming stricter, and recipient behavior continues to evolve with the changing digital landscape. However, past campaigns can provide new insights. An campaign that s unable to evolve with its environment will weaken the ecosystem until it breaks, and marketing is rendered completely ineffective without relevant information for customers and efficient deliverability. Marketers must find a solution that helps grow and adapt their marketing campaigns, changing with the fluctuating demands of the digital marketplace. It takes clean data at a campaign s foundation, and the ability to track performance across multiple channels to get a clear view of the campaign s impact on the entire marketing system. Actionable insights should be delivered from each cycle of the ecosystem. 22 The Optimized Ecosystem: Always Evolving Back to Index

25 The goal of any is to get a click, but it s what happens after that click that really counts. The ecosystem is strengthened and successful with a solution that can drive sales and boost ROI. Branding and exposure are nice byproducts, but the real goal for any marketing campaign should always be revenue. Choose an economical solution that can turn marketing into an increase on the bottom line, and grow addresses from leads to profit-producing assets. A smartphone-toting professional taps the refresh button to see three new messages pop into view. Two are from coworkers, and one is from a company she s never heard of, promising a special discount on a product she buys regularly with a subject line that speaks directly to her needs. She effortlessly taps to open the and find out more about the offer. 23 The Optimized Ecosystem: Always Evolving

26 The Ecosystem Checklist Ready to build a healthy ecosystem? Follow this checklist: Start with clean data that feeds the rest of the campaign, maximizing efficiency and impact. Ensure your own customer and prospect lists are scrubbed for inaccuracies and inefficiencies. Make sure that partner companies are applying good hygiene against their own databases or programs. Solid programs include multiple offerings, each vetted for quality. Our trusted partners have already been vetted out, giving you access to valuable, trustworthy data. Once data has been scrubbed for errors and low-value prospects, apply proper segmenting and targeting for optimum relevancy. Design the with the goal of engaging customers, and execute to satisfy ISP restrictions. 24 The Ecosystem Checklist Back to Index

27 Analyze return data after the is sent in detail so future s become more efficient and relevant to the end-user, ultimately increasing conversions and maximizing ROI. Track multiple channels for conversions as the campaign is underway to gauge the campaign s impact on the overall revenue cycle. After sales, send customers optimized transactional s to further boost ROI, offering relevant promotional content based on purchase history. Send high-value subscribers who did not open or did not click through relevant follow-up offers with greater urgency or a more aggressive offer. Send new and current customers retention s that demonstrate brand value and an understanding of their interests through purchase history. Help future campaigns adapt and evolve with data analysis from all steps of the previous campaigns, making sure to incorporate what worked and revamp what didn t. A successful campaign adapts and moves to the top of the food chain by shortening the sales cycle and maximizing ROI. Get in touch today to find out how Infogroup Targeting Solutions can help build and maintain an efficient ecosystem. Download a printable version of this checklist 25 The Ecosystem Checklist

28 Digital Acquisition Marketing of Infogroup Targeting Solutions develops strategies that leverage both online and offline data as well as our analytic capabilities to deliver on your multi-level marketing needs. We focus on building stronger relationships with customers and driving higher ROI through marketing and digital lead generation. Data Our files contain over 59 million unique consumer and 11 million business records with 100% Matching Postal. We provide an extensive array of both B2C and B2B targeting criteria for better segmentation to ensure we drive the most quality prospects. In addition, access to the full suite of Infogroup data assets gives us the ability to incorporate vital information to overall strategy that helps advertisers achieve their goals. Experience The digital space can be difficult to navigate and find trusted partners. The Digital Acquisition team of experts is made up of in-house strategists who work with both Infogroup Targeting Solutions technology and extensive partner relationships to deliver optimal results in a compliant manner. Technology We offer full service campaign management and a customized approach for each client thatprovides optimization, program analysis, and valuable insights to help manage growth initiatives andcustomer retention. Infogroup Targeting Solutions helps companies increase sales and customer loyalty through analytically driven consumer and business data and database marketing solutions. With exclusive access to the Data Axle TM, we build multichannel solutions using contextually relevant information on 230MM individuals and 24MM businesses. Lori Colantuono Lori.Colantuono@infogroup.com