Essential insights from Progressive Impressions International

2 0 1 5 V o l u m e T w o

Brian's

Survival Guide

Effective media testingDemographics ARE DYING

Selling IDEAs to leadershipGamiFIcation grows up

SEE BACK COVER.

It used to be the hottest marketing trend the world had ever seen. But mention gamification to a colleague today and you might hear, “Oh, that’s so 2013” — as if two years ago was the Dark Ages.

In a way, 2013 was the Dark Ages. Because never before have marketing professionals experienced such a constant need to shake up, innovate and move forward. It’s not about getting the next big thing anymore. You’re expected to be ahead of the next big thing … maybe even the thing after that.

In this issue of , we are focused firmly on the future. We look ahead at an industry rapidly progressing beyond the traditional market segmentation model, and we also explain how to secure buy-in from leadership for your next big thing.

Plus, you’ll learn about the bright new future of gamification. That’s right: gamification is growing up, and you’ll be surprised at some of the ways it’s being used.

Imagine how pii can help you put the latest marketing strategies into action. Let’s talk. Call or email me anytime.

Sincerely,

Let’s discuss what we can do for you.

Marketing requires more than product knowledge. It requires insight. It’s essential that you understand exactly where in the market your opportunities are and utilize the most effective communications to keep your company “top of mind” for customers and prospects alike.

Our purpose is to make you a better marketer

Let us show you how our targeted customer marketing programs achieve maximum results through:

■ Strategy & Analytics■ Marketing Technology ■ Production & Execution

Brian,

Ron Drenning Senior Vice President, Sales 800.883.1156 rdrenning@whateverittakes.com

800.883.1156

Table of Contents

Small Changes, Big Impacts5 key tips for more effective media testing

The ABC’s of

Your Primer on the Tests You Need to Improve Media Performance

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6

8

10

12

We’ll Have Fun, Fun, Fun

Industry Insights

Gamification grows up

News with impact for marketers today

Demographics DemolitionWhat the end of traditional market segmentation means for you

You and Your Bright Ideas7 steps for selling strategies to leadership

© 2015 Progressive Impressions International. All Rights Reserved.

About the PublisherSince 1992, Progressive Impressions International (pii) has worked with corporate marketers to develop programs with personalization to support sales representatives working from local offices and stores. We have the resources to design, implement and update complete marketing solutions to keep pace with your changing needs. We specialize in maximizing customer relationships through education, cross-sell/upsell and channel marketing solutions to capture the full lifetime value of your customers.

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Conductor Version 4

C O N D U C T O RT E C H N O L O G Y

ProspectingPROSPECTING MARKETING CAMPAIGNS

DIGITAL ASSET MANAGEMENT

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Ask any writer and he’ll tell you: Composing cool copy for a new ad campaign is only part of the job; getting approval

from an editor is the hard part. Ask any app developer and she’ll tell you: Creating the app is a snap; getting people to download it is a different story.

Ask yourself a similar question as it relates to your job, and you’ll hear the same refrain echoing in your brain. Developing an innovative social media campaign, designing snazzier product packaging, or rolling out a new national franchisee education program is challenging enough — let alone getting buy-in from corporate leaders who can turn your great idea into real success.

So, next time you have a billion-dollar idea, use these steps to increase the chances that leadership will sit up, pay attention and give it the consideration you deserve:

1 Do your homework. Even if you were never a Boy Scout or a Girl Scout, you know that being prepared is essential. Getting ready to pitch your idea will take time, but it’s a necessary investment. During the discovery process, you may find ways to enhance your idea; conversely, you may realize it’s not as original or promising as you thought. Better to know that ahead of time.

2 Explore the boots-on-the-ground reality. You might have a great idea for a direct mail campaign. But what if your creative team doesn’t have time to execute it? Be proactive in getting buy-in and feedback from the people who will, once your idea is approved, actually implement it. And if one of your stakeholders is also one of your decision-makers, all the better!

3 Raise the stakes. What makes your idea not only a good one but a positively great one? Maybe you anticipate that it will increase sales 15 percent in the first year. Maybe it will position your company in a higher tier of competition or raise your profile in the marketplace. Whatever the stakes, make sure they are big, clearly stated and in line with your company’s overall objectives.

4 Practice, practice, practice. Imagine that you’re about to appear on the TV show “Shark Tank.” Like those contestants, you’re asking people to invest their valuable resources in your idea. You want the content of your pitch to be as polished as possible. And break yourself of the “uhhh” habit. Your tone and gestures should convey unflagging confidence and enthusiasm.

5 Create a conversation. This really isn’t about you, so don’t make it about you and your undeniable brilliance. Make it about your listeners by involving them every step of the way. Ask them questions, elicit their perspectives and call on their individual areas of expertise. This will turn the meeting from just another bullet-pointed monologue into a free-flowing conversation.

6 Give concrete details. If you’ve explored the reality of your idea, you will be able to explain the resources and timelines required to implement it. How much will this cost, in dollars and man-hours? How long will the project take to launch? Can staff handle the work as part of their current assignments, or will it require hiring additional temporary or permanent employees?

7 Follow up. You’re probably not going to walk out of the meeting with carte blanche to implement your idea. So in the days afterward, check in briefly. Find out what each person likes and doesn’t like about your idea. Have they come up with any additional questions or concerns? What, in their opinion, are the next steps? Are they even thinking about it?

Great idea, great execution, great follow-up: None of these can ensure that your concept will ever get off the ground. If that is the case, think about the constructive feedback you received and decide if your idea still has a future. Maybe the timing wasn’t right. Maybe, with some tweaks, it can still come to fruition.

If the idea is absolutely a no-go, on the other hand, don’t be discouraged. Maybe you can incorporate parts of your idea into another project. At the very least, the learning experience will help fine-tune your next billion-dollar idea and its perfect pitch.

7 crucial steps To successfully sell your ideas

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Consumerism is the belief that personal well-being and happiness depend to a large extent on the level of one’s consumption — particularly the purchase of material goods. In a consumerist society, people devote a great deal of time, energy, resources and thought to “consuming.” Consumption is good; more consumption is better. The United States is an example of a consumerist society — many would say a hyper-consumerist society — we are bombarded with marketing and advertisements to buy, replace, upgrade, extend and enhance our possessions.

And the walls come tumbling downFor many years, demographics have been the lynchpin of marketing — dividing people into groups that theoretically make it easier to understand society. If large groups can be segmented based on established categories such as age, race, religion, gender, family size, ethnicity, income and education, marketers can better anticipate behaviors and more accurately tailor messages to the selected audience. The goal: a greater probability of achieving the desired result.

But what happens when people don’t behave the way they’re “supposed to?” What happens when people start to construct their own identities and express

their individual uniqueness through lifestyles of their own choosing? Well, things get crazy. Boundaries start to fall. Consumption patterns are no longer accurately defined by traditional group characteristics, and demographics begin to lose their predictive powers.

The evidence of deep change is astounding — from 16 to 60, from Manhattan to Mumbai

Video games can no longer be considered child’s play. In 2012, 37 percent of American gamers were older than 36 and only 32 percent were younger than 18. (Statista, 2014)

In the UK, women are now the majority of video gamers and, get this — there are more players over age 44 than under 18. (Internet Advertising Bureau, 2014)

Twitter’s fastest growing demographic between 2012-2013 were 55-64 year olds, growing 79 percent. (Buffer, 2013)

There is a 40 percent overlap in the 1,000 favorite artists of 60-year-olds and 13-year-olds. (BBC Radio, May 2014)

Consumers across the board — in all demographics and all markets — increasingly buy and use products and services from the same mega-brands, such as Apple®, Facebook®, Amazon®,

IKEA®, McDonald’s® and Nike®. The reach of consumer information, along with the global reach of and collective familiarity with these brands, has achieved an astonishing new level of shared experience for consumers.

Cross-demo, post-demoSome marketers call it “cross-demographic fertilization,” while others deem it “post-demographic consumerism.” Call it what you will, one thing seems certain: Any compelling trend that moves into the collective awareness quickly reshapes the expectations of any and all demographics.

Why is this happening now? According to Trendwatching.com, a confluence of factors is driving the phenomenon. First, widespread global information and brand familiarity create an increasingly universal experience. At the same time, increased freedom and choice is fueling the formation of individual and unique identities irrespective of one’s specific demographic. Even in countries where personal freedoms, including access to the Internet, are discouraged, the changes occurring globally cannot help but influence behaviors locally.

The ability to experiment and identify with a wider variety of brands and products prompts consumers to express

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themselves and personalize more than ever before. Meanwhile, the diminishing connection between financial resources and social status elicits a more egalitarian status equalizing the balance of power between generations.

What should marketers do now? New trends mean innovation opportunities: Embrace and celebrate social and cultural diversity. Coca-Cola’s 2014 Super Bowl ad featured “America the Beautiful” sung in a wide variety of languages (including Spanish, Tagalog, Hindi and Hebrew) and by people from various races, ethnicities, religions and families. It generated a lot of headlines and tweets and got people talking about the brand’s innovative approach.

Be prepared to re-examine or even overturn your brand heritage to attract tomorrow’s “younger-yet-experienced” and “wealthy-yet-irreverent” consumers. July 2014 saw high-end auction house Sotheby’s partner with auction house eBay to allow consumers to bid on and purchase artwork online. From its New York HQ via their website, the international auctioneer streams live auctions, and bids can be placed in real-time. Product categories are featured on the site, including watches, art, antiques, jewelry and fine wine.

Take advantage of cross-demographic fertilization. Seemingly foreign demos — shared taste and desire present great opportunities to transfer innovations from one core demographic to another.

Hyper-demography: Focus on and cater to ever smaller and more accurate, interest-based niches instead of the over-general traditional demographics. Launched in November 2013, Lean Machine Ale is a low-calorie, post-workout beer from Canada-based beverage company VAMPT Brands International. Gluten-free, made from natural ingredients and vitamin-enriched, the 5 percent ABV light ale is designed to aid muscle recovery, boost the immune system and rehydrate the body.

In the end is the beginning Successful products, services and brands will transcend their initial/traditional demographics almost instantaneously. As a result, executives and marketers who continue to navigate using maps and charts with borders defined by age, gender, income and other traditional demographic landmarks will not be prepared for the profound speed, scale and direction of change.

Understanding consumers’ needs and wants remains, and will likely always be, critical. However, those that succeed will

be those who take a broad view and learn from innovations that are delighting and exciting consumers everywhere, regardless of traditional demographics. They will be the beneficiaries of the new consumerism. But will you be among them? Start by asking how deeply you’ve examined your customer’s consumption patterns. You may know your “core demo” — but opportunities yet to be revealed from those individual and unique identities can be the true lynchpin to advance your company.

Regardless of where you are in the process — from basic consumer profiles to deep-dive advanced analytics — pii can help you transcend traditional demographics by evaluating your customer data and the characteristics of your database.

Our custom IBM SPSS Neural Network modeling and cluster analysis tools enable you to discover more complex relationships in your customer data. These tools can often increase prospecting performance by 50-150 percent over traditional demographic selects.

We’ll help you find core patterns and unveil those unanswered questions to take action and seize the endless opportunities of cross-demographic fertilization and hyper-demography.

The ABC’s of

Your Primer on the Tests You Need to Improve Media Performance

l Offersl Call to actionl Response devicesl Promotionsl Awardsl Subject lines (email)l Content

l Testimonialsl Copy lengthl Theme/taglinesl Copy structurel Type of contentl Signaturel Links

l Image typel Photo placement

and sizel Logo placement

and sizel Offer size and

placementl Fonts

l Social media iconsl Number of pagesl Amount of

white spacel Simplicity vs.

complexity

TASTYTESTS

TRY THESE!

TASTYTESTS

TRY THESE!

Message Design

The ABC’s of

Your Primer on the Tests You Need to Improve Media Performance

M arketing pioneer, John Wanamaker once famously said, “Half the

money I spend on advertising is wasted, the trouble is, I don’t know which half.”

A/B testing (done right) can greatly improve performance in nearly any medium. It offers critical insight into which “half” of your campaign is working, and which is not.

Surprisingly, while recent studies prove businesses that test can see up to a 300 percent increase in website conversion rates,1 very few marketers actually test.

In this article, we’ll review the basics of A/B testing, what it is and how it works. Plus, we’ll give you some tips for designing tests that produce conversion-boosting results.

What is A/B testing?Let’s say you’re planning an email campaign for one of your key target audiences. But you’d also like to see if you can boost the results from your current email template. Could a simple change in the message or design improve your conversion rate?

A/B testing (sometimes called, “split testing”) evaluates if a proposed change performs better (or worse) than the current version. It’s a great way to pursue continuous innovation and improvement without a lot of downside risk.

What to test?Nearly any element of a campaign can be tested. Some of the most common are calls to action, images, headlines, subject lines (on emails), navigation bars (on Web pages) and fonts.

As you follow current trends, you’ll see recommendations like it’s better to put your website’s call to action “above the fold.” But your own testing might reveal another position works best — especially if your customers need more information before making their decision.

The best advice is to be very specific on what to test. And, it’s best to test one variable at a time. For instance, test your call to action on a Web page rather than the entire landing page design. Changing too many things at once voids an accurate gauge on response triggers.

Multivariant tests are possible, but the analysis is much more complex.

Also, don’t fall for the trap of believing what worked (or didn’t work) in other testing is what will work in yours.

The only “truth” lies in what your own data reports on a given quality test.

That grain of saltEven the results of any single test should be taken with a grain of salt. Most reliable results come from tests repeated on the same variable multiple times. This minimizes transient variables adversely affecting your outcome.

Let’s say you test a Business Reply Card (BRC) in a direct mailer. But, you unknowingly test on a week when a lot of your audience is on vacation. Since a larger percentage of your mailings won’t be

opened, the results won’t be truly representative of your sample.

If, instead, you do a split test of mailers with and without BRCs on the same day over a series of weeks, you’ll be more likely to get conclusive results.

How to test?There are a variety of A/B testing programs and protocols available to today’s marketers. In fact, pii offers A/B testing on all of our products and services — providing measurable return on investment and continuous improvement.

If you aren’t doing so now, make testing part of your process for everything you publish. You might be surprised by the big gains small changes can produce.

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4BIGGER CHANGES

MAKE A BIGGER IMPACTA small change (such as a headline font) creates a

smaller impact on conversions than a larger change (such

as adding an offer).

RUN TESTS AT THE SAME TIME

Timing is everything! It greatly affects propensity to buy and user response.

ALLOW ENOUGH TIME— to compile a good pool of

results. Pulling tests too early cuts the number of responses

and statisical significance.

DON’T TEST FOR TOO LONG

— it reduces the clarity of your results. Once you

see indicative results, act on them.

KEEP TESTINGStatistical significance also applies to the number of tests you do. Don’t trust the results of one test.

Start seeing similar results in multiple tests … then you might be onto something.

1 Adpushup 25 Stats about Conversion Rate Optimization and A/B Testing.

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couple of years ago, gamification was a strategy every marketing plan had to have. Many believed the magic of game thinking and mechanics could be the cure-all for nearly any marketing or community-building challenge.

In fact, in 2014, more than 70 percent of Forbes Global 2000 organizations planned to have at least one gamified application, according to Gartner. Another study by M2 Research projects the overall market for gamification tools, services and applications will balloon to $5.5 billion by 2018.

Gamification’s losersUnfortunately, much of the early promise of bringing games to business became tainted by overinflated hype, poor game design and slapdash tactics such as meaningless badges, titles and trophies.

It’s an outcome so dismal that Gartner reported in 2014 that 80 percent of current gamified applications would fail to meet business objectives.

Done right, gamification remains a green light opportunityWhile poor executions have won gamification its share of cynics, examples of game strategies done right show that the original magic is still there — if the strategy avoids the pitfalls of games that fail to connect with audience aspirations and desires. Gamification successes, on the other hand, offer real paths for participants to grow, contribute and create worthwhile experiences, communities and achievement.

Smart games utilize findings inspired by neurosciencePew Research shows that neuroscientists are uncovering more about the ways humans react to interactive game design elements. Games can create powerful “feel good” chemical reactions in the brain. They can also create positive effects such as faster reaction times, and enhanced learning, participation and drive.

These facts have been noticed — and applied with increasing effectiveness — by innovators in areas like education, research, marketing and health.

Rather than the one-off, lightweight and often-directionless games, today’s smarter versions embed game theory at the heart of the platform.

Game elements that inspire participants to vie for status, visibility and acknowledgement are part of the very fabric of popular platforms such as Twitter and Facebook. For platforms like these, games are more than just a gimmick. They are an important part of the platform’s success.

Game strategy and research Enterprises are embarking on more mature integrations of gaming strategies as well. Gaming strategies have succeeded in opening accelerated paths for innovation and scientific breakthroughs.

For example, the Foldit open source medical research project brought together 57,000 players who together outperformed computer algorithms. In one project, Foldit

player created an accurate 3D model of an AIDS-causing virus in just 10 days. It was a problem that had previously remained unsolved for 15 years.

Another example of what’s being called, “citizen science”, is a project that’s harnessing the computing power of millions of participants in search of extraterrestrial life.

Game strategy and the enterpriseMore companies are learning to do gamification right. And that means blending strategy with scalable platforms that drive customers and employees toward ongoing engagement.

A drive toward enterprise-class gamification platforms is putting game strategies to work for business in productivity-enhancing ways. Gartner predicts that in coming years, gamification tools will bring about a new generation of workforce optimization software.

Competition and games have always been a natural for sales force performance and potential. Data-driven techniques will help motivate behaviors that drive sales in the field. Other programs will support them

how to make

a winner for your business

A

gamification

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through gamified employee engagement in call centers and customer support.

Three must-have factors for creating successful gamesGreat gamification strategies help participants experience a sense of growth, inclusion and achievement. Fogg’s Behavior Model , a game developer’s standard, helps ensure your strategy supports these objectives. It’s centered on something near and dear to the marketer’s heart: creating behavioral change.

1 Motivation — A person must have a reason to want to win or succeed. This could be a reward, a rise in status or the ability to achieve a goal. Having a reward that is meaningful to the participant is critical.

2 Ability — The game participant must be able to take specific actions to achieve the reward. For example, the game will fail if the odds of winning are too low, or if the player does not have the ability to influence the outcome.

3 Trigger — The game must incorporate ways of informing or reminding the player of the rewards and rules. If your audience doesn’t know about the game or doesn’t understand the instructions, the game will not reach its potential.

The RunKeeper iPhone app shows how this kind of model can be used to reinforce a useful behavior — in this case, staying healthy. The app encourages users to set goals that motivate them to run and lose weight (Motivation).

RunKeeper provides an easy way for runners to share goals and mileage with friends, which provides additional motivation while building connection and community. Achievable goals are set by the user (Ability). Miles run and pounds lost are tracked by the app to provide both a reward and reminder to continue on the path (Trigger).

The future of gamificationGartner reports that by 2020, gamification will continue to have a significant impact on areas like innovation, employee performance, education, customer engagement platforms and personal development.

Innovations in mobile, cloud, social, location-based and other technologies will continue to enable new platforms and applications for gamification.

Looking further ahead, technologies such as Internet of Things (IoT), gesture control and augmented reality will open new dimensions in applying game-based strategies toward engaging and motivating human behavior.

Great gamification strategies help participants experience a sense of growth, inclusion and achievement.

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It’s not too soon to start courting Gen Z While most marketers have made efforts to reach Baby Boomers, Gen X and Gen Y, have you thought about Gen Z, the generation born since 1994? More than 23 million strong and growing, Gen Z is reportedly contributing $44 billion to the U.S. economy. However, marketers should not reuse their same old engagement strategies to court this new generation. Gen Z differs from other demographics in that they grew up in a fully digital world with full access to the Internet, are fluent in social media and are used to instant gratification.

Here are some ways you can adapt your marketing to Gen Z:

Explore new social media — Facebook is actually losing a significant portion of their under-18 users. Gen Z is increasingly turning to sites like Instagram, Whisper, Snapchat, Secret, Vine and Tumblr.

Use videos — Gen Z tend to watch videos more than any other generation, so this is an ideal way to capture their attention. But keep your videos short (a minute or less) and use age-appropriate humor as opposed to self-promotion.

Get them involved — Consider incorporating self-publishing tools in your marketing campaign to make a connection and encourage them to participate and provide feedback.

Don’t underestimate the power of email marketing According to ExactTarget.com, 91 percent of consumers check their email daily, and mobile users reach for their phone approximately 150 times per day, according to the 2013 annual Internet Trend report from Kleiner Perkins Caufield & Byers.

Smart marketers realize that a well-planned e-marketing program will reach captive consumers who are spending more and more time online. However, in order for your email message to hit home, it needs to be relevant and personalized to a targeted audience. Strong call-to-actions, links to extended content and mobile optimization help with engagement.

Marketers and brands bet big on data analyticsBusinesses will increase their spending on marketing analytics by 73 percent in the next three years, according to Duke University’s Fuqua School of Business. In fact, a growing percentage of Fortune 500 executives are citing marketing analytics as their most desired marketing skill and are investing in new marketing technologies, such as mobile apps and predictive analytics.

In this customer-centric marketplace, marketers need to learn how to turn a wealth of Big Data into “smart” data. For instance, instead of reacting to customer needs, smart marketers need to use data to anticipate customer needs and deepen customer relationships that ultimately boost profits.