Archive for July 2010

The Email Welcome Message: An Opportunity you don’t want to Miss!

July 17, 2010

By Allen Nance, The Mansell Group Inc.
jscreationzs / FreeDigitalPhotos.net
One of the cornerstones of a successful email marketing program is growing a healthy list. Your first interaction with a new subscriber is a pivotal point in the email relationship and can either ensure they’ll be an engaged subscriber for life, or ensure that they will unsubscribe right away. Obviously, the first scenario is ideal.

When someone takes enough interest in your company and trusts you enough to share their coveted email address, especially in today’s spam-filled world, that is a pretty big deal. By joining your list, the recipient has shown interest and you are still fresh on their mind. Because of this, the welcome message often sees the highest open rates as compared to other email messages.

Don’t waste this opportunity by sending out the initial welcome message hours or days later. The ideal time to send the welcome message is immediately after someone joins your list. With today’s email platform solutions, setting up an automated join or welcome message is simple.

Gone are the days of the plain text messages that only serve to confirm your subscriber’s opt-in. The most successful email marketers today use the welcome message as the first, and often best, opportunity to form a bond with the recipient by following some simple guidelines.

First and foremost, thank them, confirm that they have joined your list, and include which list they have joined. Share with them the benefit of being a part of this list—discounts, informative articles, breaking news, etc. Set expectations by letting them know how often they will hear from you—and stick to it! Use some personalization and a friendly tone. After all, this is a welcome message, not a thesis paper! Clearly state your privacy policy.

According to Marketing Sherpa, over 50% of consumers are much more likely to opt in to a list if they know that the company guarantees their information will not be shared with other companies. If it’s feasible, offer a freebie such as a coupon or whitepaper for joining the list.Even though this is the first message, be sure to still include an appropriate unsubscribe mechanism. Letting people know they can easily unsubscribe at any time will build trust and help keep a clean list.

Welcome messages are one of the most important tools for email marketers. They serve as your first impression, and just like all first impressions, can help make or break a relationship. By following some simple guidelines, you can make sure that your relationship with subscribers gets off on the right foot!

The Great Obsession – Return on Marketing Investment

July 17, 2010

by Chad Mitchell, Principal Analyst, Marketing & Strategy, Forrester Research

“Do less with more.” How’s that for a marching order from your CEO? Well, it’s a common phrase we hear every day from CMOs and marketing leaders. The Great Recession has created The Great Obsession with return on marketing investment.

My next report, “Owning Up To The Marketing Mix, focuses on marketing effectiveness and the increased accountability facing CMOs. The report guides CMOs on the value and limitations of marketing mix optimization. A former colleague and Forrester analyst, Julie Katz, who served Customer Intelligence managers, defined marketing mix modeling as:

The process of using statistical analysis to estimate, optimize, and predict the impact of
multichannel promotional tactics on future business revenue.

That is a great definition and highlights the scope (multichannel) and value (optimize and predict) of data-driven marketing allocation. During my interviews for this report, it is evident that marketing and media mix modeling have evolved as CMOs search for a more strategic tool to manage marketing as investment versus an expense.

Today, CMOs are more focused on what will work tomorrow versus what worked in the past. The idea of continuous improvement is a critical dimension of marketing effectiveness, as CMOs leverage more data, more channels (mobile and social) and new measurement techniques to understand marketing effectiveness and efficiency. In addition, CMOs must understand how marketing impacts growth of the entire business beyond tactical promotional efforts. Vendors now offer technology-enabled services guiding CMOs on future marketing investment versus a point-in-time econometric analysis. This gives CMOs insight into broader variables like market development, product development and competitive strategies.

I would like to push the definition further by getting your thoughts on Strategic Marketing Allocation:

A technology-enabled service incorporating vast amounts of data; complex statistical
modeling; and business intelligence software helping marketing leaders optimize, simulate and measure the impact of integrated marketing on a firm’s growth and strategic position in a continuous learning environment.

Too long, but it’s a start.

How do you define it?

Strategic Marketing Allocation isn’t a crystal ball. CMOs and vendors talk candidly about its limitations. You can’t measure everything – it’s a directional tool. And you don’t want to have efficiency remove all creativity or instinct from good marketers. But, we could all use a little friendly advice on “what might happen in the future.” Especially, when the future becomes your boss’ Great Obsession!

DMA ATLANTA LUNCHEON | Thursday August 26th | Ted’s Montana Grill’s Digital Targeted Messaging Delivers ROI & Customer Loyalty

July 17, 2010

Description:
Ted’s Montana Grill’s Digital Targeted Messaging Delivers ROI & Customer Loyalty

The Atlanta based restaurant company has leveraged a sophisticated digital strategy encompassing multiple communication platforms while sharing one common theme – delivering relevant and valuable content to their loyal customers. Simms Jenkins, CEO of Ted’s digital partner BrightWave Marketing, award-winning Atlanta agency and Director of Marketing Jessica Smith of Ted’s Montana Grill will present an overview of how this unique digital strategy has delivered significant ROI during one of the most challenging periods ever for restaurants. They will discuss their approach to email marketing, social media and mobile marketing and why their customers stay connected to Ted’s. It’s a must attend event for anyone looking to build deeper relationships with their customers.

Join: Simms Jenkins, CEO of BrightWave Marketing

To register: http://www.dma-atlanta.com/
Details:
Thursday, August 26th, 2010
11:30am-1:30pm
Maggiano’s Perimeter – 4400 Ashford Dunwoody Road
Atlanta, GA 3034

More information
Registration

About the Speaker: Simms Jenkins

Simms Jenkins is CEO of BrightWave Marketing, an award-winning agency specializing in email marketing and digital targeted messaging programs. BrightWave Marketing partners with clients in the development, management and strategic optimization of digital messaging programs that drive revenue, cut costs and build relationships. Jenkins has led BrightWave Marketing in establishing a top tier client list including Affiliated Computer Services, Chick-fil-A, Cox Business, O’Charley’s, RaceTrac Petroleum and Ted’s Montana Grill as well as leading advertising and marketing firms.

In 2010, Jenkins was awarded the prestigious AMY 2010 Marketer of the Year from the American Marketing Association’s Atlanta Chapter for being the top agency marketer. Jenkins is regarded as one of the leading experts in the email marketing industry and is the author of The Truth About Email Marketing, which was published by Pearson’s Financial Times Press.

Jenkins is currently the Email Marketing Best Practices Columnist for ClickZ, the largest resource of interactive marketing news, information, commentary, advice, opinion, research, and reference in the world, online or off-. His industry articles have been called one of the top 21 information sources for email marketers.

Additionally, Jenkins is the creator of EmailStatCenter.com, the leading authority on email marketing metrics. Prior to founding BrightWave Marketing, Jenkins headed the CRM group at Cox Interactive Media.

Jenkins serves on the eMarketing Association’s Board of Advisors and recently completed his tenure as a Board Member of Atlanta Interactive Marketing Association (AiMA). Jenkins is a graduate of Denison University in Granville, Ohio and resides in Atlanta’s Brookwood Hills neighborhood with his wife and three children.

How do we allocate the scarce marketing resources to each customer?

July 17, 2010

by V. Kumar* | Georgia State University

The Wheel of Fortune Strategy@ identifies a dozen ways to maximize CLV (Customer Lifetime Value) where a firm can choose any one or more of the suggested strategies at any given time and realize the benefits of improving the bottom-line. In this column, we will focus on resource allocation strategies to customers in each of the four segments we described last time.

As discussed before, firms need to manage the loyalty and profitability of their customers simultaneously. Typically, managers segmented customers based on their loyalty (e.g., short or long term/tenure) to the firm. We suggest that customers be segmented based on their loyalty as well as their profitability potential (e.g., low or high). We therefore created a 4-cell segmentation — Strangers, Butterflies, True Friends and Barnacles. The resource allocation strategy should be such that the Barnacles get less marketing resources, profit from every transaction from the Strangers, maintain or increase the marketing contacts with the True Friends, and intelligently allocated the resources to certain Butterflies who are likely to give more business to the firm. This is the way the reallocation of resources happens. The savings from the cost control measures on the “BARNACLES” can be re-allocated to convert some “BUTTERFLIES” to become “TRUE-FRIENDS”. However, not all “BUTTERFLIES” may be worthy candidates for this re-allocation. Firms should identify those “BUTTERFLIES” who have – a higher level of spending, a high degree of purchases from multiple product categories, a low level of purchase limited to a single product category, an intermediate level of time between two purchases, an intermediate level of product returns, a membership to the firm’s loyalty program (for a B2C company) or a premium service member status (for a B2B company), been exposed to an intermediate level of marketing contacts between two purchases, and a higher degree of bi-directional communication with the firm – to be targeted for such re-allocation programs. These resource allocation approaches will cultivate and reward profitable loyalty, which will in turn maximize profitability of the firm and convert more customers to be True Friends of the firm.

*V. Kumar (VK) is the Richard and Susan Lenny Distinguished Chair Professor in Marketing, Executive Director of the Center for Excellence in Brand & Customer Management, and the Director of the Ph.D. program, J. Mack Robinson College of Business, Georgia State University, Atlanta, GA. HYPERLINK “mailto:vk@gsu.edu”vk@gsu.edu

@ Managing Customers For Profit (Wharton School Publishing) – V. Kumar