B2B Marketing Class Five Direct Marketing Kent Lewis

Agenda Class Project Due Guest Speakers Direct Marketing Print Hybrid Online CRM News

Guest Speakers Kimberly Wuepper Six Degrees Consulting Leif Youngberg Cooler

Direct Response Marketing Place/Distribution: Direct marketing Catalog – multiple SKUs Direct response – print, hybrid, online Telemarketing – old standby Internet – the new 800 number Key success factors: List Creative Offer Call to action Testing

Direct Response In-house database marketing Collect addresses Get permission for updates Send regular updates; newsletter List rental Traditional print is well established Be careful of list integrity Spend.20 to.40 a name for opt-in s Usually requires third party bonded house

Print Direct Response Typical print response rate:.5% to 3% Typical conversion rate: 1% 10,000 mailers = 100 responses = 1 sale Costly production and distribution costs Typical costs: $2.50 to $5.00 Follow-up mailers lift by half original rate Little cost savings by volume Vendors: Eisenberg & Associates Rosen Brown Direct

Hybrid Direct Response Increase response by combining methods: Print, telemarketing Print, Internet Expect 1% to 6% response rate Integrate with CRM system for optimal value Requires unique URL or tracking code Personalization realistic option Vendors: Babcock & Jenkins Hacker Group

Electronic Direct Response Increase response to 5% to 8% Reduce costs and timeframe by 80% $100 per customer via banners $50 per customer via print DM $20 per customer via Instant fulfillment opportunities Requires opt-in or double opt-in permission Always leave an opt-out option Viral component optional HTML = sent, opened/read, clicks

Current focus on return on investment (ROI) Marketing is moving to direct response model marketing offers many benefits: Rapid development and easy modification Affordable production and testing Thorough tracking and real-time reporting Easy maintenance and automation marketing will be $1.7B industry in 02 Electronic Direct Response

Automate processes and reporting Integrates nicely with CRM systems Track behavior as well as preferences Digital Impact DoubleClick (FloNetwork) MessageMedia NewWorldIQ Responsys

Strategic planning List development Copy & creative Tracking & reporting Campaign Components

Map objectives to audience Determine optimal strategy Special promotions Event registrations Downloads Trial registrations newsletter Web-survey Landing pages Integration Strategic Planning

List type Spam Opt-out Opt-in Double opt-in House lists Customers Prospects Other constituents Co-op E-pend Rentals List Management

components Subject Sender Introduction HTML vs. text Hyperlinks Offer Call to action Landing page Testing is critical Copy and Creative

Sent Bounces Unsubscribes Profile updates Open/Reads/Views Clicks Send-to-a-friend On-site tracking Conversion Tracking and Reporting

Sample: InFocus

Sample: Anvil

Objective : Generate qualified leads to fill sales channel Decrease cost per lead and sales cycle Challenge: Technology decision makers at target schools difficult to reach Strategy: Create introduction based on testing matrix Increase number of trial subscriptions Build qualified list for newsletter Results: 8.5% click-through rate 9.7% opt-in rate response rate Case Study: Learning.com

Customer Relationship Management Where sales meets customer service More affordable to grow than acquire Moving customers up the pyramid Technology has revolutionized CRM What is 1:1 communication? An opportunity to listen Exploring new ways to communicate Segmentation offers improved relevance Extranets and are primary vehicles

Customer Relationship Management Manage relationship from suspect to mature customer Many CRM systems offer DM capabilities Features include auto-responder s, profiling and filtering Vendors: Clientele FrontRange (GoldMine) Onyx Pivotal Salesforce.com

Resources

B2B Marketing Presentations next week Bring in news, questions and comments See you next week Kent Lewis