bmgt 411 chapter_17

BMGT 411: Chapter 17

Managing Personal Communications

Chapter Questions

• How can companies conduct direct marketing and interactive marketing for competitive advantage?

• Inbound and outbound marketing

• Direct Mail: Key Stats and Trends

• Email: Key Stats and Trends

• Interactive Targeted Marketing

• Social Media Marketing

Inbound Vs. Outbound Marketing

What is Direct Marketing?

Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen (TV, Radio, etc).

Personal Marketing Channels

• Outbound

• Direct mail/email

• Interactive Marketing

• Catalogs

• Telemarketing

• Trade Shows

• Inbound

• SEO

• SEM

• Social Media Marketing

• Influence marketing/Blogs

Direct Mail: Creating the campaign

1.Establish objectives2.Select target prospects3.Develop offer elements4.Test elements5.Execute6.Measure success

Direct Mail: Creating the campaign

1.Establish objectives2.Select target prospects 3.Develop offer elements4.Test elements5.Execute6.Measure success

Targeted Lists: External

Direct Mail: Creating the campaign

1.Establish objectives2.Select target prospects 3.Develop offer elements4.Test elements5.Execute6.Measure success

Targeted Lists: Internal

External Targeted Lists

Are used when you want to reach a prospect that is not a current customer

Internal Targeted Lists

Are used when you want to reach a current customer and expand their relationship with more products and services

Direct Mail

• Advantages

• Highly targeted Vs. Mass Media

• Easier to measure results Vs. Mass Media

• Disadvantaged

• High costs (Around .55 cents per unit)

• Low response rate (2 - 4% is considered High)

Direct Mail

• Key Elements of a quality direct mail campaign

• Sense of urgency

• Personalized

• Clear call to action - what the customer should do next

• Tractability and measurement of success (Coupon redemption, sales, etc)

Email Marketing

•Establish objectives•Select target prospects•Develop offer elements•Test elements•Execute•Measure success

Email Marketing

•Establish objectives•Select target prospects •Develop offer elements•Test elements•Execute•Measure success

CAN_SPAM: Controlling the Assault of Non-Solicited Pornography and Marketing

Act of 2003.

Email Marketing Terms• Acceptance Rate - The percentage of email messages that are accepted by the mail server. Just because an email is accepted by the mail server does not mean it will get to an inbox

• Blacklist - A list that denotes IP addresses as spammer IPs, impeding email deliverability

• Whitelist - Instead of listing IP addresses to block, a whitelist includes IP addresses that have been approved to deliver email to a recipient

• Spam or UCE (Unsolicited Commercial Email) - Email sent to someone who has not opted-in or given permission to email to the sender. Over 90% of email sent is classified as spam.

• Opt-In (or Subscribe) - To opt-in or subscribe to an email list is to choose to receive email communications by supplying your email address to a particular company, website or individual thereby giving them permission to email you. The subscriber can often indicate areas of personal interest (e.g. mountain biking) and/or indicate what types of emails they wish to receive from the sender (e.g. newsletters)

!• Read more: http://blog.hubspot.com/blog/tabid/6307/bid/7595/The-Ultimate-Glossary-44-Email-Marketing-Terms-Marketers-Must-Know.aspx#ixzz2BmgQaOTj

!!!

• Read more: http://blog.hubspot.com/blog/tabid/6307/bid/7595/The-Ultimate-Glossary-44-Email-Marketing-Terms-Marketers-Must-Know.aspx#ixzz2Bmg2x730

!!

Email Marketing Terms

• Open Rate - The percentage of emails opened in an email marketing campaign, or the percentage opened of the total number of emails sent

• CTR (Click-Through Rate) - The percentage (the number of unique clicks divided by the number that were opened) of recipients that click on a given URL in your email.

• Conversion Rate - The percentage of recipients who respond to your call-to-action in an email marketing campaign or promotion. This is ultimate measure of your email campaign’s success

Email Example

• Emails sent: 1,000

• Emails opened: 400

• Number of URL’s Clicked: 200

• Number of RSVP’s: 40

• What is the open rate:

• What is the CTR:

• What is the conversion rate:

Email Example

• Emails sent: 1,000

• Emails opened: 400

• Number of URL’s Clicked: 200

• Number of RSVP’s: 40

• What is the open rate: emails open/emails emails sent: .40 or 40%

• What is the CTR: Number of Unique Clicks/Opens: .5 or 50%

• What is the conversion rate: CTA’s/Emails Sent: .04 or 4%

Best Time to Send emails

Email advantages and disadvantages

• Advantages

• Quicker to market

• Less expensive then direct mail

• Can test creative faster

• Disadvantages

• Hard to break through clutter

• Response rates are declining

Interactive Marketing (Display Advertising)

The World’s First Banner Ad: 1994 HotWired

Expected Growth

Display Ads

Display Ads Interest Targeting

Display Ads Interest Targeting

Display Ad Retargeting

Display Ad Retargeting Zappos.com

Display Retargeting Zappos.com

Display advantages and disadvantages

• Advantages

• Broad reach

• Creative freedom

• Less expensive than mass media

• Can be local

• Disadvantages

• LOW CTR: 0.15% is considered good

• Hard to get through clutter

Inbound Personal Marketing Channels

SEO: Search Engine Optimization

SEO Tips

• Always write clean and descriptive titles

• Construct keyword rich URLs

• Use Meta Tags

• Win Incoming Links - The more sites/blogs that link to the site increase search rankings

• Google Sitemaps

• Text, Text, Text

SEM: Search Engine Marketing

SEM: Search Engine Marketing

SEM: Search Engine Marketing

How SEM Marketing Works

• Advertisers bid on key words that people might be searching for to get to their site

• Advertisers bid on the cost they will pay per click - known as PPC

• Ad words are auctioned off based on Google’s price auction

• Google has algorithm’s that rotate all advertisers ads based on keywords - so everyone gets a chance

• Advertisers pay only when people click - creating a CPC or cost per click

Top Google Adwords

• Insurance $54.91 CPC• Loans $$44.28 CPC• Mortgage $47.12 CPC• Attorney $47.07 CPC• Credit $36.06 CPC

Lawyer Example

Loan Example

SEO and SEM work best Together

SEM Advantages and Disadvantages

• Advantages

• More cost control due to “bidding” system

• Works hand and hand with SEO

• Becoming harder to identify SEM ads Vs. natural results

• Disadvantages

• Complexity

• Competitive

The Social Media Tie In

Content Strategy

• Content is customized by channel• Content can be customized by target audience• Not all channels have to be used - based on strategy

Advantages of Social Media

• “No Cost” but must have internal resources

• Instant feedback from customers

• Easy to update and change

• Channel updates can happen fast

• Can leverage images and interactive content

Disadvantages of Social Media

• Requires internal commitment and resources

• Customers demand interaction and instant feedback

• No content strategy can be a disaster

• Segments may require separate content strategies

Key Takeaways

1.First step is to build and maintain a site with strong organic search words

2. Build email and social lists from day 1 - so you can contact customers how they want to be contacted

3. After first two items are developed, build out additional elements of marketing mix

1.Direct

2.SEM

3. Social