for successful crm: ask yourself five key questions€¦ · broad omni-channel crm campaigns. where...
TRANSCRIPT
Direct Marketing Club of New York | www.dmcny.org
vol . 7 , i ssue 3 | S eptember 2016
d i r e c t & d i g i t a l n e w sf r o m d m c n y
BY CHARLIE SWIFT
Putting the customerfirst: It’s a proven
strategy adopted by awide variety of business-es to achieve long-term
success. Value the customer, and they willvalue you.
The idea of CRM quickly took hold in the1990s, but the promise of a return waspredicated on investment in a new tech-nology platform that enabled an enter-prise’s understanding of their customers atan individual level. This investmentrequired significant resources andunproven ROI. Thousands of CRM technol-ogy companies emerged, and billions ofdollars were spent to deliver on the elusivepromise.
With the advent of social media, cloudcomputing, and the growth of the Internetof Things (IoT) marketplace, the pace oftechnology investment is faster than everbefore. Big Data is the talk of the town. Yet,who knows what data is real and usefuland what is not?
CRM success does not start with tech-nology or platform. It starts with a definedCRM culture and strategy that drives tech-nology and prevents overinvestment. Itrequires a focus on the pragmatic develop-ment of capabilities aligned with both thecompany’s objectives and its customerexpectations. Customer Relationship
Management is not another term forCustomer Data Management.
Customer demands and expectationsare higher than ever before, and so is thenumber of devices and channels theyengage in. It can be a challenge to managea customer relationship effectively if youdon’t know who and where your cus-tomers are.
Businesses are looking to implementbroad omni-channel CRM campaigns.Where digital used to mean a desktop per-sonal computer, we now must considermobile phones, tablets, digital television,and social media platforms in our CRMconversations.
With data onboarding, device identifica-tion, beacons, customer recognition/link-ing technology and marketing attribution,companies are rapidly finding tools to bet-ter manage all these new touchpoints. Thenew technologies are essential, but theycan be costly if misused.
The Five QuestionsHaving worked across numerous indus-
tries, I have found that if you truly under-stand your customers’ level of interactionand how you can affect that interaction,you have the foundation of a solid CRMstrategy.
In thinking about any CRM-relatedinvestment, there are five key questionsthat should guide your decisions. Theanswers will help you understand where in
For Successful CRM: Ask Yourself Five Key QuestionsIn our series of articles from 2015 Silver Apple honorees
(continued on page 5)
your customer’s journey to engage them,what data to capture, how much to investin the speed of technology, and whatengagement channels to deploy:
1. What behavior are you trying todrive with your customer?
2. What decision must you make todrive that behavior?
3. What information is needed, andwhen is it needed, to drive thatdecision?
4. Where do you interact with thecustomer to affect behavior?
5. And finally, what is the impact tothe bottom line of driving thatbehavior?
If you cannot clearly answer these ques-tions, beware of “sexy” software that mayseduce you into an investment that youwill regret. I recently heard that half of alldigital media spend ends up in the handsof the tech companies supporting CRMplatforms, instead of the media serving themessage or the companies paying the bill. Icannot attest to the accuracy of the state-ment, but I know that media spend ineffi-
Letter from Our ClubPresident
Dear DMCNY Board and Members,
What a great summer!
DMCNY members enjoyed a luncheon on June 1st with our featured speaker BernieBorges, CEO of Find and Convert. With a delicious lunch served by New York YankeesSteakhouse, Bernie spoke about creating cross-functional marketing teams at our organ-izations. At every level there are opportunities, and Bernie highlighted many case stud-ies for our eager audience.
What else says summer like a rooftop networking party in August – at Supernova Lounge,atop the glorious Novotel Hotel in Times Square! We took in the sights and sounds of NewYork City to launch an educational partnership with the New Marketing Institute, the edu-cational arm of MediaMath. Don’t forget to save the date for our Masterclass on Digitaland Programmatic Advertising – October 28th at MediaMath headquarters, 4 World Tradein NYC. Look for more details on our website. All are welcome!
We had a record turn-out this year for the James W. Prendergast Direct Golf Classic inAugust. A new venue at Pelham Bay Golf Club added to the excitement of the 11th year ofthis event. As we close out the summer, tune in for our first event of the fall season – ourSeptember 19th luncheon on Addressable TV. Confirmed panelists so far are from Dentsuand Dish TV – and it should prove to be an enlightening discussion for our members.
On September 29th, we’ll have a bushel of former Silver Apple honorees, now mentors,meeting their mentees for the first time! A special arrangement between Baruch Collegeand their Executives on Campus (EOC) program allows our DMCNY Silver Apple honoreesthe privilege of mentoring college students, in keeping with our club’s commitment toeducation.
It’s almost time to get ready for THIS year’s Silver Apple Gala – and the amazing Class of2016 honorees. Won’t you consider supporting DMCNY’s educational mission, by attend-ing or by sponsoring an advertisement in our elegant program? Look for details on ourwebsite. This event is the highlight of the year, and 2016 is no different. Be sure to savethe date: November 10, 2016.
We’ve had a busy year so far. Thank you to our members who continually support theclub. Come join the fun at our events. I look forward to seeing you all there!
Warmest regards,
Paulette Oliva, DMCNY President
Editor | Ruth P. Stevens 212-679-6486 • [email protected] News Editor | Donna Baier Stein 908-872-1775 • [email protected] /Sponsorship Sales | Eva Perretti 845-490-2337 • [email protected] Director | Cheryl A. Biswurm 201-788-5347 • [email protected]
Printed by McVicker & Higginbotham, Long Island City, NY • www.mcvh.com
For more information about the Direct Marketing Club of New York, membership information,event dates or registration, visit www.dmcny.org.
Find DMCNY on:
vol . 7 , i ssue 3 | S eptember 2016
www.dmcny.org | 3
OFFICERSPRESIDENTPaulette Oliva - MeritDirect914-368-1010; [email protected]
1ST VPTimothy Kennon - McVicker & Higginbotham718-937-2940; [email protected]
2ND VPJohn Fletcher - Johnny Agency646-457-7500; [email protected]
TREASURERArthur Blumenfield - BMI Fulfillment Services203-546-5584; [email protected]
SECRETARYRay Schneeberger - Fosina Marketing Group203-546-5547; [email protected]
BOARD MEMBERSIMMEDIATE PAST PRESIDENTPam Haas - Experian Marketing Services401-272-0175; [email protected]
Barry Blumenfield - BMI Fulfillment Services203-546-5581; [email protected]
Samantha Braverman - Winterberry Group212-842-6800; [email protected]
Danielle Brooks - Brooks Marketing212-337-0732; [email protected]
Rob Healy - MeritDirect914-793-0045; [email protected]
Sharron Mahoney - Alliant845-617-5481; [email protected]
Karen McCarrol - Trimark Consulting Group416-698-2243; [email protected]
Keith Messer - Data Services, Inc.646-351-6351; [email protected]
Eva Perretti - Wiland845-490-2337; [email protected]
Vincent Pietrafesa - BusinessWatch Network914-774-7223; [email protected]
Rick Witsell - Alliant845-617-5453; [email protected]
Peter Zajonc - Pinpoint Targeting, LLC845-705-7316; [email protected]
EXECUTIVE DIRECTORStuart Boysen - Stu Boysen Associates, Inc.516-746-6700; [email protected]
ADVISORS Cheryl A. Biswurm - Turner Direct LLC201-788-5347; [email protected]
Reggie Brady - Reggie Brady Marketing Solutions203-536-1147; [email protected]
Chet Dalzell - Digital Advertising Alliance212-725-2294; [email protected]
JoAnne Dunn - Alliant845-276-2600 ext 216; [email protected]
Joseph Furgiuele - MeritDirect914-793-0045; [email protected]
David Lord - David Lord, CPA914-241-8365; [email protected]
Stephanie Miller - New Food Economy917-364-7532; [email protected]
Pegg Nadler - Pegg Nadler Associates, Inc.212-861-0846; [email protected]
4 | September 2016
BY CHRISTOPHERKARPENKO
As connectivity isembedded into soci-
ety, the line between thephysical and digital
worlds is blurring. From sharing thoughtson social media to sophisticated healthtracking technologies to cookie-enabledtargeting, this data footprint reveals valu-able consumer insights that can be minedfor marketing gold.
Sensing OpportunitiesSmart homes and fitness trackers are
now common, moving the Internet ofThings from buzzword to reality. With thiswidespread connectivity, and as wearablecomputing moves from niche to broaderuse, marketers looking to compete willneed to move away from traditional cam-paigns to marketing that is fueled by real-
time data and actual customer behavior todeliver deeper, more personalized contentacross channels and devices.
All of these trends show how prevalentthe digital ecosystem has become. Withthis, mail is taking on a new role because ofits unique ability to bridge the physical anddigital worlds. This will make it a key mar-keting player now and in the coming years,as the real world and the digital space con-tinue to converge.
The New Use of Direct Mail in theDigital World
Savvy marketers are using direct mail asan integral part of that ecosystem and areleveraging these trends to make it morepowerful. Already an important marketingchannel because of the way people inter-act with a physical piece of paper, whatmakes mail even better is that it can nowextend that tactile experience into a digitalmobile experience—providing greater
When Paper and Pixels Converge How direct mail is becoming a key player in the digital world
value for the sender and receiver.Technology is renewing mail’s relevancy.
Augmented reality (AR), near-field commu-nication (NFC), and quick response (QR)codes can bridge the physical and digitalgap by launching a website, a video, or aninteractive experience. These are powerfulways of sparking product discovery anddrawing consumers into the digital ecosys-tem of a particular brand.
Mail, In Real TimeReal-time delivery scans with notifica-
tions sent within a few minutes are becom-ing the norm. On the horizon, a new type oftech-based service called InformedDelivery from USPS will give consumersand marketers an even deeper level ofinsight on mail delivery.The same way con-sumers now check their email inbox, socialmedia, and news apps, they will be able toactually see the front of most mail piecescoming to their physical mailbox before
(continued on page 9)
BY LISA SPIRA
Eunice. Helen. Dorothy.Nora. Evelyn. Wilma.
Gladys. Characters fromthe Golden Girls? Notnecessarily.
The name Eunice peaked in popularityin the United States in 1908, at #106. Forthe next 30 years, it remained in the top200 names given to baby girls. With thenew generation, many of Eunice’s contem-poraries such as Nora and Evelyn are com-ing back into vogue. But not Eunice.
Names ebb and flow throughout time.But many transition between people in lessintuitive ways.
There is a Younger Generation ofEunices
But Eunice is in fact back. You mightmeet her today at a college party or anearly professionals networking event.
She is most likely to be Eunice Park orEunice Choi or Eunice Yeung. She’s embark-ing on a successful career following a rigor-ous education. Her parents immigrated tothe United States from Korea or China.
She might also be Eunice Washington orEunice Thomas. She exists in the same cos-mopolitan circles as Eunice Park, but herhistory—or that of her parents or of gener-ations before—is African.
Onomastic Fluidity and EthnicityThese Eunices exemplify the unexpect-
ed fluidity of names. A Eunice Park orEunice Washington seems to be the excep-tion, a girl unfortunately burdened with aname from another generation. But uponfurther reflection, in her own culture, hername isn’t an oddity at all. Names moveacross age, education level, social sphere,geographies, and ethnicities.
These nuances contribute to the ethnicunderstanding inherent in names.
At Ethnic Technologies, we design a soft-ware product that relies on names to pre-dict the ethnicities of individuals. The soft-ware algorithms combine all the nameintelligence (first name, middle name, sur-name) with geographical intelligence fromour Enhanced Neighborhood Analytics. Butthe research behind the names, name pat-
www.dmcny.org | 5
The Unexpected Fluidity of NamesEthnic Technologies was honored with a 2015 Corporate Silver Apple
terns, and software logic includes cross-cultural research. To predict ethnicity ono-mastically (meaning, via names), weresearch how names move through time,geography, and culture.
Understanding the Diversity inEunice
Chinese and Korean immigrants to theUnited States value education, advance-ment, family, and respect of elders. Manyparents choose to give their new baby anAmerican name to help her assimilate andachieve success. But they choose thisAmerican name from their successful orinfluential peers, or even a respected mem-ber of their parents’ generation. If Eunice isa respected, accomplished CaucasianAmerican woman of an older generation, itis name that embodies their hopes for thisnew baby girl.
African American parents also followpredictable patterns, although differentones from Asian Americans. They conformto the prevalent sound patterns in theircommunity while continually seeking indi-vidualism. We don’t blink an eye whenintroduced to a young African Americanwoman named Shalice, LaTrice, orChaneese. While the spelling and capital-ization may differ, the harmonious soundsremain constant. It is irrelevant whetherher parents saw Eunice as an entirely newname or as the novelty of an establishedname of generations past. EuniceWashington has a name that is her ownvariation on a familiar theme.
Onomastics, Ethnicity and theFuture
Each culture appropriates names fromother cultures while conforming to its owntrends, derived from cultural values. In acountry of immigrants as diverse as theUnited States, names reliably predict eth-nicity, as long as we understand the diver-sity of contexts in which they may be situ-ated. As the world shrinks, throughimproved communication and travel tech-nologies, names will ebb and flow accord-ing to more complex patterns. Embracingmulticultural diversity only enhances ourunderstanding of individuals through theirnames and names through their bearers.
Is Gladys only a Golden Girl?We wouldn’t lean too heavily on that
assumption, given that the name Gladyspeaked in 1901, at #11, and declined sharplyafter 1908. Instead we’ll rely on culturalinsights to predict something else entirely.Gladys Fernandez and Gladys Torres are thecontemporaries of Eunice Park and EuniceWashington. But they come from differentvalues and different stories. �
Lisa Spira is director of research and productdevelopment at Ethnic Technologies. Reachher at [email protected], or@ethnictechnologies.
ciency will get worse if companies are notcareful and pragmatic.
When it comes to selecting a CRM plat-form, remember what Voltaire said:“Perfectis the enemy of good.”Don’t be seduced byfancy bells and whistles. How many of usbought that VCR with every feature underthe sun, only to realize that all we neededwere Record and Play buttons?
To determine the best strategy for yourCRM efforts, ask yourself the five key ques-tions. When the world changes again, andthe next CRM investment is required, askand answer them again. With a strongstrategy and culture in place, success iswithin reach. �
Charlie Swift is VP, Strategy & MarketingOperations at Hearst Publishing Services.Reach him at [email protected].
Successful CRM(continued from page 1)
For more informationabout the DMCNY, tobecome a member, or forevent registration, visitww.dmcny.org.
Follow us
6 | September 2016
www.dmcny.org | 7
Invest in a Solid Customer Value PropositionBY JIM FOSINA
Acustomer valueproposition explains
to potential customerswhy they should buy aproduct or use a service.
In today’s crowded consumer marketplace,the customer value proposition is arguablythe single most important ingredient to becrafted at the inception of a business plan.
The value proposition represents aninvaluable way to differentiate your offer-ing in today’s fast-paced, multi-channel,“here’s the next best thing” world. Giventhat today’s consumers have a tremendous
amount of information at their fingertips—and you’d better believe they are research-ing—savvy direct marketers deploy the
value proposition to speak volumes to theprospect and rise above the competition.
Here are the characteristics of an effec-tive value proposition:
� It is succinct, but detailed enough todrive all subsequent downstream mes-saging that engages the consumerquickly and moves them to conver-sion.
� It should clearly address the targetmarket, plainly describe the product orservice, how you are delivering it andwhy.
� It should communicate the benefits tothe customer, and connect those ben-efits to the product purchase.
As an example of a good value proposi-tion, look at Amora Coffee. When yourfavorite blend of coffee is measured by hand
and sealed into AerostaticLock® bags, thenshipped immediately right to your door, roast-er-fresh at the peak of flavor and aroma,that’s Amora! Because home delivery is theonly way to get truly fresh coffee. That’s whyAmora will never be available in stores.www.amoracoffee.com
Given a very crowded coffee beveragemarketplace, Amora differentiates itsbrand by roasting coffee daily in smallbatches and delivering direct to the home.Roasting daily and shipping via 2-day pri-ority assures the consumer that the coffeeis at optimum flavor and freshness, ascompared to coffee that can sit for manymonths on a retailer’s store shelf. �
Jim Fosina is CEO Fosina Marketing Group &Amora Coffee. Reach him at [email protected].
Editor’s note: Attendees of the club’sannual Silver Apples Gala are all familiarwith Amora, thanks to Fosina MarketingGroup’s generous contribution of a partyfavor at each seat.
In today’s crowded consumer marketplace, the customervalue proposition is arguably the single most important
ingredient to be crafted at the inception of a business plan.
8 | September 2016
www.dmcny.org | 9
Post-Merge Optimization is Your Hotlinefor Increased Campaign Profits
BY LISA MOORE
Every marketer on theplanet recognizes the
value of merge-purge —no one would hit themail without de-dupli-
cating names, selecting the most cost-effective lead sources and keying up testpanels. It’s just good business.
Now marketers are learning that a solid
performance model can deliver profit ben-efits that rival the power of merge-purge.The secret? Screening campaign lists afterthe merge, using a custom model to rankprospects for the behaviors most likely toincrease overall profit.
Armed with this insight, marketers canproactively make profit-enhancing deci-sions about every campaign beforedeployment.
With marketing costs in every channelon the rise—and consumer attention at apremium—audience optimization makessolid sense. Experience shows that thesetechniques can generate impressive profitgains for both acquisition and customerengagement. Here are four use cases everymarketer should consider:
Suppress unprofitable prospects: Thesimplest way to save money in marketing isto avoid prospects who are not going torespond or pay for your offer. Models canidentify risky audience segments so youcan cut low-probability consumers, reducecosts, and reap the profits.
Expand your addressable universe:Cutting the worst prospects doesn’t haveto mean smaller campaigns. A post-mergemodel can also identify top segments from
marginal or expansion list sources, so youcan backfill suppressions with betterprospects. This technique can dramaticallyexpand the populations you take fromyour favorite coop or vertical lists.
Confidently test new list sources: Agood model also lowers the risk of testingnew sources by predicting future perform-ance. Use your post-merge model to scoretest names prior to deployment and makethe decision, on the fly, to test or not.
Optimize your offer (or your creative):With a good source of transactional data, apost-merge model lets you optimize pric-ing tiers and generate substantially morerevenue from a campaign. Publishers andsubscription marketers can convert topprospects with introductory offers that are
higher than their control rates. Non-profitscan customize ask arrays to increase dona-tions and lower their CPDR (cost per dollarraised).
Post-merge optimization is a powerfulprofit-producer and relatively simple todeploy. In fact, once marketers discover thebenefits, they often use the same tech-niques to increase the precision of audi-ence selection for other channels, includ-ing email, mobile and display campaigns.
Try using your best models as a proxy forperformance. You’ll deliver effective cam-paigns to more consumers, with betterresults, in every channel you activate. �
Lisa Moore is VP of business development forAlliant. Reach her at [email protected].
they arrive. Informed Delivery service willelevate the role of mail in the everydayconsumer mobile experience and helpbuild extra anticipation.
When Social Listening and DirectMail Collide
While businesses may gain followers onsocial media, it doesn’t mean they areengaged customers. Many consumers areignoring display ads, installing mobile ad-blocking apps, and not opening the major-ity of promotional emails. Direct mail canserve as a catalyst, not only to drive con-sumers to social media, but to interact witha brand and motivate action. By deliveringhighly relevant content, marketers are bet-
Paper and Pixels(continued from page 4)
ter positioned to grab consumer attentionand motivate followers to become activeparticipants. Direct mail doesn’t just bringconsumers to digital experiences; it drawsknowledge from those experiences thatcan initiate action.
As marketers seek to reach tech-savvyconsumers by bridging the physical anddigital worlds, technology-powered directmail will secure its place as an integral partof a powerful marketing strategy —nowand in the future. �
Christopher Karpenko is the executive direc-tor of brand marketing at the United StatesPostal Service. He can be reached [email protected].
10 | September 2016
www.dmcny.org | 11
BY BEATRICE BLATTEIS
Data-driven market-ing is the digital
buzzword du jour. For usdirect marketers, that’sold news with a new-ish
name. We’ve been targeting down tomicro-segments with direct mail and emailcampaigns for many years.
Until recently, online customer targetinghas been primarily based on customerlook-alikes in third party data or on anony-mous visitor retargeting by cookie-ing sitevisitors or recording their IP addresses.Reaching known individuals with ads dur-ing their Internet surfing wasn’t possible.
Today, a new technology allows you toreach your customers and your prospects—first party data—with online ads that youcan target to the segment level. The abilityto target ads to your database goes by manynames, such as CRM Retargeting, CustomerData Onboarding or IP Matching.
This has incredible advantages:
• No waste, spend less and get higherconversions and ROI because you’llreach only people whose level of qual-ification you already know. This meansyour digital ad spend can be muchlower, with a better result than you dowith other digital ads.
• Reach customers and leads cross-channel immediately. You won’t needto buy and install any new tools such asmarketing automation nor add scripsand tags to your website. Just provideyour list(s) in a CSV format along withyour ad. The vendor does the rest.
• Segment more intelligently. Digitaltransformation has never been easy,what with infrastructure changes andthe need for IT buy-in. Since youdecide which ad goes to which seg-ment of your market, you can targetthe message to their level of qualifica-tion and their stage in the lifecycle.Youcan target winbacks and trade showvisitors, new customers and web form-
submitters each with an ad appropri-ate for them.
• Amplify response rates for directmail and email campaigns. Targetingads before and after your direct mail oremail campaigns, you can lift responseby 30% or more.
Vendors like LiveRamp, AdRoll, Salesforceand my consortium the MarTech Team willmatch the data for you and/or serve yourads. Vendors vary by price point and mini-mum order sizes, but a decent sized test canbe accomplished for under $5000.
This technology is not yet widely known,but the performance impact is high valueand low cost.Take a closer look. It may be awin for you, too. �
Beatrice Blatteis is head of BlatteisCommunications, a data-driven marketingconsulting firm, and recently formed theMarTech Team, a consortium of data and dig-ital experts.Email her at [email protected].
New News in Digital Marketing: Target OnlineAds to Your Database
