presentation to informs board of directors
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Building a “Total System” Marketing Model. Presentation to INFORMS Board of Directors. Presented by: Ann O’Daniel and Gary Bennett. August 1, 2007. Strategic Objectives:. - PowerPoint PPT PresentationTRANSCRIPT
Presentation to INFORMS Board of Directors
August 1, 2007
Presented by:
Ann O’Daniel and Gary Bennett
Building a “Total System”Marketing Model
1. Create a cost-effective and sustainable Marketing Plan that integrates marketing initiatives for all INFORMS products and services
2. Enhance INFORMS value proposition through customer knowledge-based marketing strategies and tactics
3. Use Marketing as a “Growth Engine” for INFORMS organization not just Operations Research profession
Strategic Objectives:
-Peter Senge, “The Fifth Discipline”
“We tend to focus on snapshots of isolated parts of the system, and wonder why our deepest problems never seem to get
solved.
Systems Thinking is a conceptual framework…to make the full patterns clearer, and to help us see how to change them
effectively”.
Sound familiar?
Phase One:
Analyze all Critical Factors
Phase Two:
Create Customer-Centric Relationship Marketing Model
Phase Three:
Operationalize a Sustainable Integrated Marketing Plan
The “Total System” Approach
Activities
• Interviewed Key Stakeholders including Board Members, Staff and select INFORMS Members
• Conducted Market Analysis – Including Industry Trends and Emerging Opportunities
• Reviewed and Analyzed all INFORMS Products and Services
• Reviewed all Customer/Member Research
• Researched Sister Society Offerings and other Competitive Threats
Phase One : Analyze all Critical Factors
The Critical Distinction:
We separated Marketing Opportunities from Business Opportunities
We evaluated all INFORMS
Strengths Weaknesses, Opportunities and Threats
Phase One: Situation Analysis
Strengths Weaknesses Threats Opportunities
Overall
Financially and Operationally well managed. Well positioned to invest in growth
Lack of long term and sustainable Marketing Plan or Vision
Dynamic market changes are challenging the INFORMS highly decentralized management model
Create longer-term business and marketing plans that are measurable and sustainable.
Publications
Strong financial position and well established value proposition
Editorial development process entrenched and slow to change
Quickly changing publishing business forcing trial of new, riskier business models
Invest in promotion and market expansion within existing publishing model
B2B
Distribution Librarians and Agents key sources of revenue
No formal marketing effort and channel plan.
Increasing Institutional budget erosion and lack of sustainable Agent relationships
Utilize Internet to build interaction and ongoing dialog with librarians and better contact with Agents
Meetings
Financially strong, growing, well-respected and well-managed
Cater to mainly PhD candidates and their tenure track
Sister societies with more focused meetings may be attracting practitioners.
Grow Practitioner meetings and enhance Practitioner sales training
Membership Membership is stable and most
members are at least satisfied Value perception of Membership is eroding
Sister Societies offer more relevance and career focus
Create sustainable Member Relationship Marketing Program Invest in staff to manage
Communities Latent Marketing asset and tool
for INFORMS Under-utilized for member outreach and engagement
INFORMS value proposition eroding
Leverage passionate Community fans and turn into advocates and ambassadors for INFORMS
IOL
Cost-consciously building technology improvements for further growth
IOL not a user-friendly experience.
Expectations of good customer experiences continue to grow
Invest in creating more customer-centered portal for interactive marketing and membership offerings
Awards Committees Programs
Recognition of Edleman Award is highly valued
Edelman Award not leveraged in Marketing
Not enough information to determine threats to awards
Test Edelman DVD as outreach offer for companies and individual practitioners
Education Multiple offerings and tools for
teaching Academics
Not enough tools for undergraduates and Practitioners
Plethora of competitive teaching and Continuing Education sources
Create tools (including updated case studies) that help sell the OR Profession
Career & Job
Placement No perceived strengths No perceived weaknesses
Sister Societies and other job placement services provide better online experiences
Improve online user experience
Brand
Perception
High among those who are aware of INFORMS (mainly Academics)
Not well known among Undergraduates or Practitioners
No INFORMS studies done of other Societies brand perceptions
Increase brand perception and awareness among practitioners and Undergraduates
Phase One: Opportunity Analysis
Librarians and Agents
Academic PhDs
PhD Students
Practitioners
Military/Government and Consultants to
We shifted our focus from INFORMS Products to
Key Customer Segments
Then prioritized Segments based on current revenue value and potential Lifetime Value (LTV)
Phase One: Opportunity Analysis
From our Situation Analysis:
What is the emotional need all customer segments have in common?
“Establish/Enhance Professional Identity”
Phase One: Opportunity Analysis
The INFORMS Value Proposition:
“INFORMS is THE association that will help you Establish and Enhance your Professional Identity”
Umbrella Value Proposition applies to all products, services
and segments throughout all stages of professional development
(Can be customized for communications to different segments)
Phase One: Opportunity Analysis
LibrariansINFORMS helps you enhance your professional identity by providing you with
valuable information and tools to help you be as efficient and effective as possible
PhDsINFORMS helps you establish and enhance your professional identity by providing
a host of latest best-in-class research information, resources, networking, publishing and mentoring opportunities in your special interest and field of study, roadmap for volunteer opportunities
Masters StudentsINFORMS helps you establish your professional identity by providing mentors and
assistance in finding the best career or higher education path, internships, research opportunities and networking among the best in your potential field of interest
PractitionersINFORMS helps you establish and enhance your professional identity by providing
you with career planning tools, networking opportunities, jobs and candidate listings best-in-class Journals, and case studies of applications that are relevant to your profession, roadmap for volunteer opportunities
Military and Government(Not enough known yet about their needs that differentiates them from Academics or
Practitioners)
We Made a Critical Paradigm Shift:
from Product-Centric to
Customer-Centric Marketing Model that
incorporates existing as well as new
programs and tactics
Build BrandAwareness
Consistent BrandingPublic Relations and
OR AdvocacyWord of Mouth Optimize
AcquisitionTargeted Testing
Segmented/Tiered OffersData Capture-Bounce Back
HVC Profiling
Reward Loyalty
Recognition of ValueTier Progression &
Recognition Optimize Ease of
Renewal
Build Interdependence
PersonalizedEngagement Tools Targeted Fulfillment
Affinity SegmentationIntellectual &Social Capital
Creation
Refine Customer
KnowledgeData Analysis
Customer Value AssessmentData MiningLTV Profiling
Phase Two: Create Customer Relationship Marketing Model
Phase Two: Create Customer Relationship Marketing Model
• Targeted, Data-Driven Direct Marketing• Public Relations and Outreach• INFORMS Grassroots Network of Highly Engaged
Members and their WOM
The“Growth Engine” of Member Relationship Marketing Model:
Phase Two: Create Customer Relationship Marketing Model
• 90% of people cite Word of Mouth (WOM) as one of the best sources of ideas and information
-eMarketer Word of Mouth Report 2005
• Consumers are 50% more likely to be influenced by WOM than traditional ads
-Intelliseek September 2005
• “Whether the connection is long or short, the person-to-person information exchanged online carries a weight that traditional corporate messaging simply can’t match”.
-eMarketer Word of Mouth Report 2005
Phase Two: Create Customer Relationship Marketing Model
The Power of the Customer’s Voice
“Satisfied customers become, in effect, part of the company’s marketing
department, not only increasing their own purchases but also providing
enthusiastic referrals…customer loyalty provides companies with a
powerful financial advantage - a battalion of credible sales and
marketing and PR troops who require no salary or commissions.”
- Fred Reichheld, The Ultimate Question
Phase Two: Create Customer Relationship Marketing Model
The Trend is our Friend
• Major Advertisers are re-allocating marketing investments to more measurable programs and channels – better ROI
• P&G is beginning to build relationships across brands to “cohort segments”
• INFORMS has active, highly intelligent, technically savvy WOM network in place
• INFORMS Strongest “buzz agent” may be the Academic Advisor
• INFORMS has strong brand reputation built on quality service and best-of-breed products
• For both Academics and Professionals, key motivation is:
Establish/Enhance Professional Identity and Build Social Capital
Phase Two: Create Customer Relationship Marketing Model
Fred Reichheld’s Net Promoter Score
Promoters – Loyal enthusiasts who keep buying and urge friends to buy (actively promoting)
Passives – Satisfied but unenthusiastic and can be wooed by competition (not actively promoting)
Detractors – Unhappy Customers trapped in a bad relationship (actively detracting)
Phase Two: Create Customer Relationship Marketing Model
The Ultimate Question:
“How likely is it that you would recommend INFORMS to a friend or colleague?”
On a scale of 1 to 10
9 or 10 is considered “Promoter”
7 or 8 is considered “Passive”
0 to 6 is considered “Detractor”
Discount Passives and calculate % of total:
P – D = NPS
Phase Two: Create Customer Relationship Marketing Model
• Begin by asking the “Ultimate Question” of all members in a Member Satisfaction Survey
• Establish a benchmark for monitoring NPS score YOY
• Then track and analyze individuals’ promotional ACTIONS (not just stated intentions) as critical growth engine of MRM
• Encourage, Recognize and Reward actual engagement in and promotion of all INFORMS products and programs
Phase Two: Create Customer Relationship Marketing Model
Test Tactics to Increase Member Engagement
• Segment and refine targeting for Current DM programs
• Test new incentives to join, promote and become more active in all INFORMS products and services
• Create an ongoing Recognition and Rewards Program throughout member lifecycle utilizing all communications channels
• Test different communications messages to emerging international and ethnic segments with approaches customized to reflect their styles and values
Measure results by tracking individual member engagement
Phase Two: Create Customer Relationship Marketing Model
Marketing Strategies by Segment and Life Stage
Attraction Recruitment Engagement Commitment Renewal
Librarians In person sales, Ads Appreciate, listen Build dialog, prtn’p Recognize contr’n HV recognition
HE PhDs Recognize value Enroll in MRM Recognize contr’n Reward efforts/NPS CLV recognition
NE PhDs Intro via HE PhD Welcome, MRM Recognize contr’n Reward efforts/NPS Tier status comm
HE MS Assign PhD mentor Enroll in MRM Recognize contr’n Reward efforts/NPS Special offer
NE MS Intro via HE PhD Welcome, MRM Recognize contr’n Reward efforts/NPS Tier status
HE Practitioners Recognize value Enroll in MRM Recognize contr’n Reward efforts/NPS CLV recognition
NE Practitioners Intro via HE P Welcome, MRM Recognize contr’n Reward efforts/NPS Tier status comm
HE M/G Recognize value Enroll in MRM Recognize contr’n Reward efforts/NPS CLV recognition
NE M/G Intro via HE M/G Welcome, MRM Recognize contr’n Reward efforts/NPS Tier status comm
HE CL Recognize contr’n Corporate enroll Recognize contr’n Reward efforts/NPS Special offer
NE CL PR, targeted DM Corporate enroll Recognize contr’n Reward efforts/NPS Special offer
Phase Two: Create Customer Relationship Marketing Model
Measure all Marketing Efforts through
Ongoing Data Analysis
“7 Measures of Success: What Remarkable Associations Do That Others Don't”
The Center for Association Leadership found a clear correlation between successful associations and those that built the organization around the collection and use
of data
(#4 of the “7 Measures” was Dialog and Engagement)
Phase Two: Create Customer Relationship Marketing Model
Member Engagement Improves Retention as well as Acquisition Efforts
In a recent regression analysis conducted by Marketing General, Inc.
for one association, an interaction or transaction was a positive
predictor of renewal in every case
Research also showed that an important predictor of membership
retention is behavior. An association that actively seeks to
engage members-at almost every level-is more likely to enjoy
higher levels of retention
Phase Two: Create Customer Relationship Marketing Model
Become a Testing and Learning Organization
• No Silver Bullet. Commit to systematically building on success and learning from failures by employing fact-based analysis
• Continually test and refine acquisition and retention tactics to all segments
• Test a “Tiered Membership Marketing” concept with tiered benefits and “tier migration” incentives
• Continually evaluate Long Term Value of customer segments
Employ the “Total System”
Customer/Member Relationship Model
as a Strategic Advantage,
not just Expense
Phase Two: Create Customer Relationship Marketing Model
Phase Three: Operationalize MRM
Organize and Appropriately Staff to:
• Mine existing customer/member data
• Consistently capture and continuously analyze ongoing transactional and behavioral data
• Create “Member Dashboard” to continuously track all activities
• Manage, analyze and refine ongoing marketing tests
• Continuously refresh and enhance IOL as MRM portal
• Design and analyze ongoing member research by segment
Phase Three: Operationalize MRM
What will happen if we don’t ?
• Traditional forms of “push” advertising will not improve INFORMS Customer Experience, Satisfaction, WOM and Relevance to members
• Without testing and learning systems built into the plan, marketing programs will be harder to sustain cost-efficiently
• Non-members (like Practitioners) who are not aware of INFORMS and Non-engaged members will continue to be at high risk of joining other societies
• Low regular usage of IOL (25%) will not improve Customer Experience and help INFORMS become a web-centric organization
2007 Action Items
Align Products with Customer Segments
1 Publications Y Y Y Y Y Y
2 B2B Agents Y
3 Meetings Y Y Y Y Y Y
4 Membership Y Y Y Y Y Y Y Y (?) Y Y (?)
5 Communities Y Y Y Y Y Y
6 INFORMS Online
Y Y Y Y Y Y Y Y Y Y Y
7 Awards Y Y Y Y Y Y Y Y
8 Education Y Y Y Y Y Y ? ?
9 Career and Job Placement
Y Y Y Y Y ? ? Y Y
10 Brand Image Y Y Y Y Y Y Y Y Y Y Y
Libr. HE PhD
NE PhD
HE MS NE MS HE P NE P HE M/G
NE M/G
HE CL NE CL
2007 Action Items
Begin to transform IOL into a primary marketing portal with user experience testing and user needs evaluation.
• Begin to research and validate ideas for enhanced features and functions from member user and visitor perspective
• Create new user and visitor-centric information architecture for wireframe testing with users
Recognize High-Value Customers/Members • Mail a “Targeted Act of Kindness” note or reward from the President that thanks them for
their continuous engagement with INFORMS and gives them a preview of some of the enhancements planned for 2008
Augment staff to mine existing data and begin identifying and profiling high value members
• Validate assumptions• Identify new segments
Revisit PR and Advocacy Program Plans• Determine appropriate measurement and tracking criteria
Integrate New Business Initiatives with Marketing Plans• Identify key segment opportunities• Create additional marketing budgets, testing strategies and timing
2007 Action Items
Establish consistent evaluation practice for all tactics
High
Importance
Librarian’s Council
Low Importance
Low “ROI” High “ROI”
Importance to Customer
Value to INFORMS
2007 Action Items
Leverage Edelman Awards in Marketing
Short term tactics: Place short Edelman related videos on YouTube• Dr. Marco Zaider’s acceptance speech (Sloan Kettering, 2007 winner)• Introductory video about field of OR and Edelman Competition• Video of Anatomy of an Edelman winner• Video Profile of Warner Robbins, 2006 winner
Other Edelman DVD ideas for development in 2007:
Grow Practice Meeting attendance: • Mail Edelman DVD’s in high-impact package with response device to
register for Practice Meeting • Include DVD with January issue of Interfaces with “early bird” offer for
Practice meeting registration
Market the Profession: • Mail 3 dimensional package with DVD to rented list of CIOs with invitation
to Gala along with a call for entries to be passed on to Quantitative Department
2007 Action Items
New Member Outreach: • Mail previous year’s Edelman DVD packaged with January issue of Interfaces and
membership or subscription application
Strengthen Readership of Interfaces: • Split test mailing a copy of Interfaces shrink-wrapped with subscription application
against Interfaces packaged with Edelman DVD and application • Add links on HighWire Interfaces page to Edleman Acceptance Videos and
summary written presentations on IOL
Strengthen membership renewal: • Create new “Members Only” benefit on IOL. Post Edelman videos on Teacher
specific areas of IOL and encourage others to post videos. Announce via email links to members
• Position DVD as premium for early renewal on membership renewal area of IOL• Mail DVDs as “Thank You for being loyal member” with letter from the President
and membership renewal application
2007 Action Items
Short-term Marketing Tactics for Publishing
Enhanced Librarians’ section of INFORMS OnlineDemonstrates we value their business and are dedicated to providing them with all the information they need to do their job efficiently
Recruit a librarian advisory panel for INFORMS JournalsDemonstrates we value their input, recognizes them to their peer communityand builds ongoing dialog channel with this key customer segment.
Publish Ahead of Print InitiativeHelps reduce the backlog of accepted manuscripts
Policy and Pricing for Legacy Archival Product
New Cover Development for Operations Research