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PARALLELS
of
“ The Perfect Storm”
to
The Evolution of Direct to Consumer Acquisition
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“THE PARALLEL”
• In 1991 the Northeastern
American fishing industry
experienced a truly
monumental weather
phenomena coined
“The Perfect Storm”.
• Today we stand poised for a
similar phenomena in Direct
to Consumer Marketing.
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“To Be Or Not To Be”
As the story of “The Perfect Storm”
is told, the Captains of fishing ships
that heeded warning and navigated
this weather phenomena returned
home with their bountiful catch.
The Captain of the Andrea Gail drove
directly through the storm and
without careful calculation never
returned home.
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The “Perfect Direct Marketing Storm”
We are experiencing a convergence of multiple external
forces all of which have powerful momentum unto themselves
•Senseless and uncontrollable Postage Rates
•Rising Print and Paper costs
•Lower traditional consumer response
•Shrinking Mail, Print and Package Insert universes
•Higher transportation costs
•Shift in consumer purchase behavior
Mayday ….. Mayday ….. Mayday
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“Ship versus Sea”
•Those Direct Marketers who are navigating the storm
are casting new nets and reaping the rewards.
•If we do nothing or simply the same we’ll be swallowed
up by the vast marketing ocean.
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“Set Your Compass”
•Acknowledge changing consumer behavior towards
advertising
•No longer accept the USPS as a necessity, but as an option
•Find alternatives to replenish prospect universes
•Recognize consumption patterns of today
versus yesterday
Re-cast Your Nets
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The Product Replenishment Model Lives On
Consumers are still interested in continuity, subscriptions,
and single sales opportunities for products and services
of interest.
The only changes are how consumers want to engage
and marketers must address how to accommodate this
evolving consumer expectation.
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The “World Wide Web”
Presents New Nets to Cast
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“New Coordinates”
Cost Effective Internet Options to incorporate
into your media plan to weather
“The Perfect Direct Marketing Storm”
• Co-registration
• Universal or Blended Search
• Mobile Ecommerce
• Social Networking
•Transparency Marketing
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Co-Registration Marketing
•Effectively use online
co-registration to
develop qualified leads
to build your prospect lists
Here is how to do it!
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“Can’t Resist Inquisitiveness”
Human nature is to inquire. The Internet provides
endless opportunities to engage in Co-registration
through:
• Surveys
• Registrations
• Incentives
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“Inquiries are not Sales Transactions”
The desire to inquire or the lure of an incentive
casts a very wide net
The conversion to sale requires qualification and
confirmation:
•Ask qualifying questions at point of inquiry
•Validate contract information
•Convert or confirm sale prior to shipment
Email
Phone
Postal
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• Simple, generic
question on survey
page:
• “Are you interested
in helping your child
do better in school?
• Data: FN, LN,
Address, Phone, Email,
DOB, Gender and
Affirmative Opt-in.
• Volume Potential2,000-5,000 per day
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Option 1 – Standard Opt-In Placement
*Consumers indicate interest (Y/N) and basic information is sent to advertiser.
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Option 3 - Provider Hosted Custom Form Opt-In
• Provider Hosted Lead Generation
form; this will be your highest
quality lead
•Includes qualifying questions
•Targeted paths
• Sell and resell opportunity
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“Inquiries are not Sales”
Immediately Follow up on Hotline Leads
to Convert into a Sale
Telemarketing
Email
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Tips to Get it Right!
Generating the inquiry
•Cost per Performance ( Cost Per Lead)
•Feature Your Brand
•Copy and Creative Counts
•Media Placement Critical
•Ask Qualifying Questions
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Inquiry to Sale
Telemarketing
Call all records within 48 to 72 hours
Call. Call. Call. The records until you reach the consumer
Remember the consumer gave you permission to call
Closely Monitor Calls
Test. Measure. Optimize
Develop more Qualifying Questions
Be ready for Alternative Sales
Close the Sale
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Inquiry to Sale
Email
• Email within seconds of inquiry
• Feature your Brand
• Resell the offer
• Provide opt-out
• Develop multiple email
contact strategy
• Test and retest offers
• Close the sale
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Co-registration Critical Success Factors
• Build a solid contact strategy to compliment your
target customer
• First email should be an auto-responder deployed
within hours of lead generated
• Send as many as 6 emails
•Remember the consumer gave you permission to
email
• Phone follow up must be quick and relevant
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“Stop Hiding”
Universal
and Blended
Search
Making it Easier to be Found
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Search Engines now provide for
blended search results:
What is Universal and Blended Search?
When the engines crawl websites pages,
they will blend listings not only from
content but news, video, images, local and
book search
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Universal or Blended Search Example
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“Harness Consumer Ambiguity”
As with this illustration “Search for Mount Everest”,
the user may be searching for:
Mountain’s height
View a picture
Read the Latest News
About Expeditions
View a Video of a Climber
Find a Book
Any Number of other reasons
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“Establish Relevance”
Blended search will provide more search engine
inventory marketers must take advantage of:
•Image display in search result
•Closely related information in search result copy
•Call to action with promise to pay off
•Optimized digital assets making it easier to be found
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“Relevance to Direct Marketers”
Ranked images and videos on search pages
provide for a visual and closer look at products
rather than just copy explanation
• Consumers more likely to click through products
of interest
•Higher propensity to purchase
Call to action in ad copy
• Provide immediate gratification for consumer
• Will drive more sales
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“Control Costs”
Blended and universal search provides more
inventory, will drive more engaged consumers, more
qualified clicks, thus reducing overall costs
• Utilize video and voiceover
•Drive inquirer to desired transaction
•Refine internal search for abandons
•P&L every search return configuration
•Set bid parameters
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Mobile E-Commerce
One of the
Hottest
Emerging
Media
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“All Oceans are Connected”
Who knows where one
ocean starts and where
the next ocean ends…..
•Mobile reach shifts market
messaging from the
household to the individual
without any geographic boundaries
•The mobile device is the most interactive medium
available to the individual away from home or office
•Consumers WILL adapt to transacting via their
mobile device
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US Wireless Market Statistics
• 203 million plus wireless subscribers
• 70% wireless penetration in most metropolitan areas
• 10 billion plus text messages per month
• $3.7 billion in revenues generated from wireless data
• 200% plus growth expected by 2009
• 10 billion plus revenue opportunity predicted by 2010
Source MMA Research 2006
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‘Who is Marketing Text Today’
Weatherbug has a service when installed on a mobile
device can deliver real time weather content to subscribers
eBay Mobile allows buyers to search for items, view a
simplified items listing and bid and buy on selected goods
Staples developed web and mobile based contests
for younger consumers to purchase their in store supplies and
products online or in store
Warner Music Group developed offline and online media
campaign for consumers to access their ring tone service for its
Atlantic Records subsidiary to directly access ring tones from WMG
artists from their mobile phones
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The Barrier to Critical Mass Mobile Ecommerce
Today's wireless providers are stuck in yesterday’s
contractual pay for minutes /data business model
1) Incoming messaging is at the cost of
the consumer
2) Your plan adjustments require new
lengthy commitments
3) Requires explicit permission to
contact rather than provision of notice
and choice
The Mobile E-commerce market will change with
the introduction of advertising supported wireless plans
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“Pull versus Push”
In the meantime, how do you drive consumers to their
mobile device and get them to take action:
1) Educate your consumers on how and what they
an access via mobile devices
2) Develop affirmative opt-in strategy for
mobile contact information
3) Offer consumer incentives to engage
mobile interaction
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“The Incentive”
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“The Incentive”
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Is Mobile E-Commerce Right for You?
•Does your brand, product or
service lend itself for viewing
on small mobile devices
•Do your customer demographics
fit with this medium
•Do you have online and offline
access to advertise mobile awareness
•Do you have affirmative opt-in and opt-out ability
“Stay Tuned to This New Emerging Media”
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Social Networking
Social Networking online
is the largest and most uncontrolled positive
or negative public
relations medium today
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“No More Hiding”
•Technology provides viral reach at exponential levels
•Marketing message and customer services totally
exposed
•Chat rooms and blogs growing at unmeasured rates
•Member oriented sites becoming popular at all
demographic levels
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“Socializing Behind the Screen”
Social networking enables mass viral
interaction with those we know and
others we don’t know
•MySpace is still the largest player in
this space and industry sources estimate
it generates $525 million in the US
•Facebook revenue estimates are $125 million in the US
•Estimates for both indicate they represent 75% of the US
social network ad spending
•Experts in this media estimate social networking to be a
$2.5 billion business by 2011
Source MySpace 2007 Study
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“Why Social Media”
1) Consumers are connecting with other consumers and
the trust tends to increase credibility of offering
2) There is a great deal of buzz about this media as the
newest form viral of marketing
3) About 2/3rds of all North American Youth use it daily
4 )About 1/3rd of all North American Adults
use it at least one a month*
Data from Forrester Research 2008
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“Member Get a Member on Steroids”
Think of social media in terms
of offline Member get a Member
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“Critical Differentiation”
•The campaign focus should meet the needs of
the community, before the needs of the marketer
•Effective campaigns will first understand the
core drivers, interests, and rituals of the
community and learn how to meet those desires
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“Zero to Sixty in …….”
Encourage Member Interaction:
•Successful social networking
campaigns involve the audience
Quickly Scale:
•Social networks are designed for information to
quickly move from member to member
The Attributes:
•Velocity, Viralness, and Spread are key
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“Targeting”
Reach the right people:
• Create a Social Ad and target it precisely to the
audience you choose
• The ads can be targeted to users whose friends
have recently engaged with a Social Network Page
• Social Ads are more likely to influence users when
they appear next to a story about a friend's
experience or interest
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“Engage”
Utilize Media:
•The best way to engage members is to offer them interactive
media-- audio, videos, or demos
Foster self-expression or communication:
•Members in social networks like to communicate with each other
• Campaigns should satisfy these needs with the appropriate
applications
Offer a satisfying User Experience:
•The language and overall look and feel should be familiar and
identify to the audience
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“Consumer Value”
Enhance Value as Community participants:
•As more people contribute or interact with the
campaign, the value is increased
•This can be in the form of content that is created by the
community, contests, voting, or games
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“Media Mix”
Integrate with other marketing activities:
Successful social marketing campaigns aren’t single
channel, they utilize multiple channels and mediums to
enhance the overall activity
Such as:
•Websites
•Email newsletter
•Offline media
•Blogs
•Podcasts
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“Test Early”
Design your offer to be interactive
•Choice
•Flexibility
•Reference
Design your creative to engage multiple audiences at
the same time
•Variable Banner Messaging
•Product Videos and Demos
Negotiate CPA or Controlled CPM
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Transparency Marketing
With today’s technology
and consumer protection
awareness, it is critical that your
customer fully understand your
total “value proposition”
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Transparency Marketing
If a consumer is unsure about the
integrity of a company’s product or
services….
•They will simply Google its name and
look for reactions of others, especially
those unrelated to the company
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Transparency Marketing
•If the consumer is not certain a company is
charging a fair price for a product or
service…..
•They will simply check out one of the
existing forums, discussion boards or
blogs related to a product or service
•Consumers will tell you exactly what
they think
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“You can run, but you can't hide"
In this viral information age
companies need to provide for
full disclosure
•Reveal “must know” information to consumers
•Pay attention to your markets values
•Share your business ideology and mission
statement
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Today customers expect nothing less than honest
and fair advertising claims regardless of the
medium your using.
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“In Closing”
•The World Wide Web, the Internet is the largest mass
marketing body of ocean known to marketers as the sea
is to fisherman
•It is our opportunity to seize the World Wide Web by
casting our nets, evaluating our catch and bringing
home the fruits of our labor!
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THANK YOU
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