MARK2038
Data Base Marketing Strategies II
Week 9
Instructor: Santo Ligotti
Email: sligotti@gbrownc.on.ca
Digital Marketing-Part II
This week
Assignment 4 due
Effective Internet Advertising
Effective E-mail marketing in DM
Viral Marketing and Wireless
applications
Internet Advertising
Facts we know:*
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Canada is one of the most wired countries in the world
Canadian Internet penetration is growing overall, which
means marketers have more opportunities to touch
consumers than ever before
Home Internet penetration is steadily on the rise
The Internet continues to attract more tightly focused
interest groups to niche site categories
High speed connectivity continues to grow and with it the
opportunity to reach Canadians faster, and with more
technologically sophisticated messages
On-line ad spending will surge to $18.9 Billion by 2010-up
59% from an estimated $11.9 Billion in 2005. Growth will
remain steady, rather than filled with spikes or valleys.
This reflects the stability of the industry, both in terms of
the players involved and their business practices
*Source: The Internet Advertising Handbook
Internet Advertising
Integrating online advertising seamlessly into the
overall media plan means keeping an open mind about
the various ways that the Internet can generate
consumer impact
There are key questions you should ask yourself in
considering when to integrate online media into an
overall media plan
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Does the message reach Internet users at important
touch points?
In a mass media campaign, is there a compelling reason
for consumers to visit online, or will you simply be
duplicating offline messages?
Does you want to create a cool factor?
How will response be generated and measured?
Do you want to sustain a long echo?
Five ways to achieve Great
Online Creative
1.
2.
3.
4.
5.
Keep it Simple
Never compromise the brand
Mix it up
If you don’ see it, ask
Define your key metric before you conceive
creative
Fifteen Reasons to Advertise
Online
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Generate trial of product or service for first time
buyers
Increase brand awareness
Increase use of the brand
Cross-sell other brands from the same company
Encourage brand loyalty
Provide in-depth information about the brand and related
products
Develop a database of customers, collect sales leads
Provide or improve customer service
Test different copy concepts and pricing models
Generate online revenues
Reach a target audience missed by other media
Drive traffic to a retail location
Recruit employees
Target by speed
Drive traffic to a marketer’s web site
Popular On-Line Ad Sizes
•Strategically
positioned
squares and
rectangles
•Tall, vertical
banner ad
Source: Internet Advertising Handbook
•A variety of
banners and
buttons from the
size of a business
card to a postage
stamp
Negotiating the On-line AD BUY
Questions for you to ask your media buyer
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Where does the demographic information
come from?
What are the behaviour patterns of the
users?
What are the other on-line advertising
opportunities, like content solutions (cobrands), sponsorship, and e-mail?
Is the host web site able to accommodate
rich media?
How ill you measure your campaign and who
will do the tracking?
Source: Internet Advertising Handbook
Common ON-line Pricing Models
The most common pricing scheme for on-line ads remains the CPM,
or cost per 1,000 impressions.
Most widely recognized pricing system
Seen in over 90% of on-line publishing rate cards
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CPM:
COST PER THOUSAND: With cost per thousand models, the publisher sets
the boundary for pricing
CPA:
COST PER ACTION: The advertiser only pays when someone actually
registers or purchases something right then and there. Low risk for the
advertiser. Site publisher takes a commission on all sales generated.
Usually a formal audit procedure exists between the advertiser and the
publisher to track sales or registrations to determine payments
CPC:
COST PER CLICK: A payment model in which an advertiser pays only for
the number of click-throughs it derives from an ad rather than paying a
flat rate to run an ad on site
CPL
COST PER LEAD: An on line advertising payment model in which an
advertiser pays based solely on the number of qualifying leads
FLAT RATE:
An advertiser rents a space on line and pays a lump sum for that piece of
real estate. Sponsorship is a good example. The sponsorship runs in a
content area that is a relevant fit with the ad message, locking out the
competition from advertising in that space
Source: Internet Advertising Handbook
Web Measurement Success Factors-A
FEW WORDS
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Customers continue to move from traditional
media to on line media, with many emerging as
INTERNET ONLY consumers
A growing number are accessing content from
mobile devices anywhere, anytime, adding yet
another variable to the e-content consumer
demographic mix
Successful determination of web analytics and
key performance indicators is paramount
Our lecture on measurement in WEEK 11 will
discuss the importance of overall measurement,
but also channel specific measurement (WEB
MEASUREMENT WILL BE KEY
STAY TUNED
Common Tactics
1.
2.
3.
E-mail
Viral marketing
Wireless applications
Typically, responses are directed to a
Web site where the user can get more
information and/or purchase.
Why use email to communicate with customers? And
what drives the success of this communication
vehicle?
Why email?
• Smart email marketing maintains trust-based customer relationships
• Fast, cost-efficient communication vehicle
• Can provide rich, dynamic information
• Efficiency to market, timeliness
• Fulfills customer expectations for channel of choice
The 4 P’s help to ensure successful email marketing:
• Obtain permission from the best customers
• Maintain strict privacy with the information
• Profile the whole customer
• Send personalized content
Source: The Canadian Inter@active Reid Report. “Email Marketing 2005: The Resurgence of the Medium” Winter 2004 Ipsos/Reid
Best Practices for Email communication
•
Sell the value of receiving email to customers
- Explain how the customer will benefit from receiving email communication (e.g., receive time-limited
product offers, updates on product features)
•
Make email registration easy for the customer
- Provide email address via multiple channels
•
Immediate confirmation of receipt of email address
- Immediate acknowledgement should be sent out that email addresses have been registered
•
Advise the customer about what kinds of messages they should expect to receive
- e.g. special offers and incentives, product and service solutions, and channel enhancements
•
Ask the customer about their preferences to ascertain what is relevant to them
- This enables us to respond to their needs with appropriate product and service solutions
•
Ask questions to determine customer types beyond demographics
- e.g. Determine various life stages that may not be apparent from customer data; age may be
independent of when a customer becomes a first time homebuyer or new parent
•
Time the emails to match the customer purchase process
- Emails are sent to the customer to coincide with the timing of a known life goal or life event
•
Allow customers to change their preferences for information that is sent to them
- The customer should be able to change their email content preferences so that email content remains
relevant to them
Best Practices for Email
communication
•
Unsubscribe and email address change
options are always available
- The customer should be able to opt out of email
communication or change their email address
through various channels; this option will also be
available at the bottom of every email
How does CIBC collect and verify
email addresses?
•
Email address collection and verification can be bundled with existing
direct marketing programs (TB,DM,INTERNET) or email collection can
be done as a stand alone program (INTERNET)
•
Verification should include confirmation that company can use the
email address, and specify what it will be used for; email must only be
employed for those purposes identified (CMA Standard)
•
The company’s Privacy Policy will be provided wherever email
collection is being sourced, as well as the company’s web site (CMA
Standard)
•
Promote the benefits of providing an email address (receive timesensitive offers, product feature updates, privacy ensured)
What is emailed?
The following are some guidlelines as to what should appear on all outgoing email
marketing communication:

“From” address should be clientsponsor@cibc.com
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A clear subject line and body text in the communication that accurately reflects the content, origin and purpose of
the communication. (CMA standard)
Note that titles such as “Free offers” or “Winning prizes” should be avoided as many spam filters use these
key words as a signal that the email is spam. Please refer to the appendix for a detailed list of examples of other
spam filters.
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Acknowledgement of the customer’s name.
Examples: Dear Joe, or Dear Joe Smith:
The email marketing message may acknowledge a customer’s product ownership but will not contain any account,
password, credit limit or balance information.
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“Please do not reply to this email” text which advises customers not to reply to the email.
Email replies are sent to the clientsponsor@cibc.com mailbox which is monitored by a designated group. They are
able to answer questions relating to the email, but will not fulfill requests for customer or account information,
unsubscribing to future marketing or transaction requests.
The email should contain a phone number for the company
The email should be available in English and French (The language that the email is sent in will be based on the
customer’s language preference)
What is emailed? (cont’d)
The email is required to be be created in two versions (HTML and text), although only one
version of the email will be sent.
The email must be mapped to a static HTML page on a website in the event that the targeted
email is not viewable
All email images are required to map back to the company’s main web site
•
There should be no direct hyperlinks to the main web site. Phishing emails often contain
links to phony sites that collect IDs, account information and passwords.
•
Customers are asked to type in www.cibc.com in their browser. Hyperlinks to content splash
pages, tools and information pages and unsubscribe pages are permitted. (Note that these
pages do not collect personally identifying information)
Company Privacy Policy (Accessible via hyperlink)
Opt-out information allowing a customer to unsubscribe to email marketing (CMA standard).
The instructions that a customer should follow to update their email address (to continue to
receive further email communication). Changes to customer email address information can be
made through Online Banking, at the branch or through Telephone Banking.
Opting out and email replies
• CIBC will always provide unsubscribe capability to all outgoing emails
• Customers can also change their opt-out preferences through Telephone Banking or the Branch
• An unsubscribe request for email marketing applies to all product communication through the email
marketing channel
• Need consistent opt-out language and an estimated timeframe of how long it takes to have the email
address removed.
Example:
In the past you have provided us with your email address. As a result, CIBC Credit Card Services
may occasionally send you relevant information about new or existing products and services. If you
no longer wish to receive future communication, you can unsubscribe by clicking here. Please note
that your request to change your Do Not Solicit Email preference may take up to 90 days to process.
• The Clientsponsor@cibc.com mailbox will be monitored by Internet Channel Correspondence Team
(ICCT). ICCT can answer customer questions and direct customers to the appropriate channels for
opt out requests, however ICCT will not be involved in actual opt-out request fulfillment.
How to send an email?-CIBC EXAMPLE
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ICCT (Internet channel correspondence team) is briefed on all upcoming email marketing
campaign programs,
including timing, content and projected volumes
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Marketing pulls the list of names based on campaign criteria and business rules
List is sent from Marketing to Agency
Agency to have an email deployment tool (such as Maestro), of which CIBC purchases a onetime use [nb: creative, copy, and visuals are hosted at CIBC (HTML and text)]
The tool uses the list of names and sources the creative through the CIBC host so that the
email is sent from CIBC [the “From” address should be: clientsponsor@cibc.com e.g.
PersonalDeposits@cibc.com would be the appropriate address for a GIC and Deposits
sponsored campaign
After the data file is received by the agency, the agency sends data dumps to Marketing and
there is a test run of the email deployment to the email seed list to ensure correct formatting (3
days after data file receipt by the agency)
The email is sent to customers 2 days after the email test run by the agency
The tool automatically tracks raw clicks, open rates, unsubscribes, bouncebacks (invalid email
address or email box is full) as well as click-throughs, and web-tracking.
(Splash pages must map back to a cibc.com address).
•
How to send an email?-CIBC EXAMPLE
If a customer hits reply, the response goes back to clientsponsor@cibc.com for
updating or response. The Internet channel correspondence team will answer
questions that come through by email. E.g. Is this an authentic email from
CIBC?
ICCT is not able to fulfill any customer requests via email. E.g. ICCT cannot
take GIC renewal instructions via email, change email addresses or take DNS
change requests.
Using the unsubscribe and email bounceback results, CIF is updated with the
most accurate email address information using an automated batch process.
CIBC Visa flags invalid email addresses and unsubscribes from the CIBC Visa
database. CIRM and Visa are developing a process to enable Visa unsubscribe
email requests and invalid email addresses to be captured in CIF.
Example:
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Solicitation preference for all products email marketing will be changed to “N” for all
unsubscribe email requests
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Invalid email addresses will be removed from CIF (there will be no corresponding
change to the customer’s email solicitation preference)
Best Practice Summary Table
Best practice
criteria
Expedia
Opt-in
•Characteristics set by
client
•
Permission
•
Value
Relevant as content
is determined by
client preferences
Determined
according to
customer
preferences (travel
types, airline routes)
•
Brevity
Interaction
Source
Unknown
Forrester
Wells Fargo
Opt-in
•Characteristics set
by client
•
Relevant as
content is
determined by
client preferences
•
Determined
according to
customer
preferences
(product types,
rates)
•
Kraft
Opt-in
•Characteristics set by
client
•Frequency
determined by client
(daily, weekly, biweekly)
•
Relevant as content is
determined by client
preferences
•
Determined according
to customer
preferences (type of
recipes, cooking for
singles, couples,
families, occasions)
•
Motley Fool
Opt-in
•Characteristics set
by client
•
Relevant as content
is determined by
client preferences
•
Determined
according to
customer “profile”
(serious investor,
conservative, novice
investor)
•
Unknown
Links embedded in the
email
Unknown
Forrester
Relationship Marketing
Forrester
Best practices –Sell the value of receiving email to
customers
Best practices – Make email registration easy for the
customer
Best practices –Immediate confirmation of receipt of
email address
•JC Penney confirms receipt
of registration immediately
Best practices – Advise the customer about what
kind of message that they should expect to receive
Best practices – Ask the customer about their
preferences to ascertain what is relevant to them
Expedia customers
classify the offers and
vacation types that
motivate them to travel to
their favorite destinations
Best practices – The Motley Fool asks questions to
determine customer types beyond demographics
The Motley Fool uses personas
to fuel email content
Best practices - Time the emails to match the customer
purchase process
Wells Fargo times emails to match customer purchase processes
Best practices - Unsubscribe and email address change
options are always available
TheStreet.com gives users a chance to
change their registration in every
email
Avoiding spam filter: what to
avoid
Subject Line Characteristics to Avoid
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Subject contains a unique ID
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Subject contains a UCE tag (Unsolicited Commercial EMAIL)
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Subject contains G.a.p.p.y-T.e.x.t
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Subject contains lots of white space
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Subject contains too many raw illegal characters
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Subject has exclamation mark and question mark
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Subject has many exclamations
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Subject is all capitals
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Subject is missing
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Subject starts with dollar amount
Avoiding spam filter: what to avoid
Subject line characteristics, line words and phrases to avoid
amazing
as seen
as seen on
attention
avoid bankruptcy
buy
buy direct
buying
call now !
cash
cash bonus
casino
cialis
click here
collect
compare
consolidate your debt
unsecured debt
urgent
vacation
reverses aging
satisfaction guaranteed
save up to
search engine listings
serious cash
core
credit
discount!
don't delete
double your income
earn $
easy terms
eliminate debt
explicit
for only
free!
get paid
give it aw ay
giving it aw ay
great offer
guarantee
guaranteed
xanax
w ork at home
w eight
sex
slut
soma
special promotion
stop
hard-core
hardcore
hello
hidden
information you requested
join millions
lbs
lesbian
levitra
life insurance
loans
lose
lose w eight
losing
meet singles
million dollars
misc
viagra
vicodin
visit our w eb site
stops
subject to credit approval
subscribe
taboo
teen
mlm
multi level marketing
naughty
no cost
no fees
offer
one time
online marketing
online pharmacy
opportunity
order now
phentermine
please read
porn
pounds
promise you
removes
w hile supplies last
w hy pay more?
w inner
time limited
unsecured
you're a w inner!
you've been selected
your bills/credit/family
Criteria for success for direct marketing and email marketing
campaigns
Existing direct marketing programs at CIBC use some of the following measurement
criteria:
(1)
Response rate lift (Contact vs. Control)
(2)
Total and incremental number of responders from contact
(3)
Total and incremental product balances from contact
(4)
Responders’ usage of product or service
(5)
Change in customer’s total funds managed
(6)
Reduction in product attrition and customer attrition
Additional factors to be included that can determine the success of an email marketing
campaign:
(7)
Number of successfully delivered emails, hardbounce, softbounce (undeliverable emails) and Email unsubscribes
(8)
Raw clicks
(9)
Open rates (including the number of times that an email was opened)
(10)
View time rates
(11)
Forward rates (forwarding the email to another email address)
Phishing and online fraud
What is phishing?:
•Also known as brand spoofing
•Using fraudulent email and web pages to gather personal, financial and sensitive
Information for the purposes of identity theft
How is phishing carried out?
•Customers receive spam email (mass non permissioned email messaging) or
pop up windows that appear to come from legitimate businesses
•Customers are asked to personal or financial confidential information such as
passwords, account or social insurance numbers
•The message may contain a link that leads to a fraudulent website or pop up
window
•Messages usually have an urgent tone and suggestions that failure to respond may
result in risk to accounts or credit cards at CIBC
•Phishing emails may even contain “credible” information in the subject title such as
Source: CIBC website
the customer’s name and last four digits of their bank account number (information
which may have been stolen from a legitimate FI email)
Phishing and online fraud (cont’d)
Signs that your message may be a phishing email:
Spelling mistakes and poor grammar
e.g. Atention, Update your CIBc records, Tecnhical issues
(2) The address of the sender (“From”) may be @cibc, however, the actual e-mail
address itself is not from CIBC. E.g. the email may be From: CIBC Service, but the
actual email address is 123@123.com. (The actual email address sender can be
determined by clicking on the address and selecting “Properties”.
(3) Poor branding
(4) The email does not contain a valid URL
(5) Communication uses words such as mandatory, reactivate, unexplained funds
depletion
Source: CIBC wesbite
Advantages of E-mail over postal
direct mail
No postage or printing charges: average
cost e-mail message < $0.01, direct mail
$.50 to $2.00.
 Offers
an immediate and convenient
avenue for direct response (hyperlinks to
Web sites using).
 Can be automatically individualized to meet
the needs of specific users.
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Solution: Permission Marketing
1.
Ask people what they are interested in.
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2.
Target meaningful offers to the individual.
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3.
Ask permission to send them information
Do it in an entertaining, educational, or
interesting manner
Track results and gain knowledge.

Gather information about customer needs,
interests, and backgrounds to deepen
relationships
Timely E-mail Delights
Customers
Screen: Thank you for your order!
E-mail: Thank you for your order!
E-mail: Your order will shipped on…
E-mail: Your order is in transit!
E-mail: Was everything to your satisfaction?
Cost to send of all of the above:
$0.
Building an E-mail List
E-mail lists are hard to obtain and maintain. There
are three ways to build a list:
1.
2.
3.
House list (generated through Web site registrations,
subscription registrations, or purchase records)
Harvest e-mail addresses from relevant discussion groups
or bulletin boards
Rent from a list broker (i.e., CORNERSTONE)
With individuals having more than 1 e-mail address
it is very difficult to match them with individual
customers and prospects in a firm’s database.
Viral Marketing
Viral marketing: a combination of email marketing and word of mouth.
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Uses the power of referrals
Encourages prospects to forward e-mail
to friends, co-workers, family, and others
Marketers must be careful not to invade
or exploit customers e-mail
Example – Hotmail
Hotmail started with only a
$50,000 promotion
budget:
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Every message tagged with
a promotional signature file
6 months later, 1 million
subscribers
18 months later, 12 million
subscribers
Microsoft acquired the firm
for $400 million in stock.
Examples
http://www.zzzzzzzzz.com.br/
http://www.comeclean.com/
http://www.oooooouch.com/
http://www.hangingtestdummy.com/
http://www.entertainmentanytime.com/
Wireless Internet Applications
E-marketing applied to
mobile devices.
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SMS (Short-text
messages)
Instant Messaging
600 billion short text
messages a month were
flying between mobile
phones worldwide by
the end of 2006.
SMS Marketing Examples
VOTING:

Voting is an exciting way to engage your audience and let them have their say.
Newspapers, magazine and television are prime examples. Big Brother 3 claimed 3
million votes. Think not only of the revenue generated by voting alone, but the
opportunity to offer other mobile services such as text alerts, ring tones, logos etc
Instant Win

We can deliver exciting instant win prizes where customers can find out if they
have won a prize straight away. We use a very clever random winner selection
process. There is no need to fear that there will be too many instant winners as
Dragon will no longer select winners once all prizes have been claimed. You can
have multiple prizes i.e. 20 games consoles, 100 console games, 1,000 ring tones
as instant prizes. Dragon can also deliver mobile content such as ring tones, logos,
java games etc as instant runner-up prizes.
Location Based Services (PROXIMITY MARKETING)

To drive footfalls into your nearest store, bar, club, theatre, cinema, gas station
etc, you may wish to consider using location based campaigns. You simply
request the user to text in permission for us to track them down via the mobile
phone. Accuracy can be as good as 100 metres in the cities
SMS Example: Heineken
Heineken, used an SMS sales
promotion to capitalize on the
British pub tradition of quiz nights:
 P.O.P. signs in pubs inviting
customers to call a phone
number from cell phones and
type in the word “play” as a
text message.
 The customer received a series
of 3 multiple choice questions
to answer.
 Correctly answering all the
questions scored a food or
beverage prize (special
verifiable number to the
bartender) and 20% of all
players won.
 Feedback = a great
promotion...consumers found it
fun + sellers found it to be a
hook.
Location-Based (Proximity)
Marketing
Location-based marketing: Promotional
offers that are pushed to mobile devices
and customized based on the user’s
physical location.
A
global positioning system (GPS) in a
handheld device or automobile
 Plus user address information stored in a
database.
Location-Based Marketing
From a marketers perspective the advent of location-based
marketing can include many benefits:
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A captured target. The consumer is already in or near your place of
business. Remember, this is location-based marketing. A customer is
much more likely to come through your door if a competitors store is a
twenty minute drive away, but your store happens to be right around
the corner from where they are standing.
Increased Impulse buying. Real time delivery of advertising prompting
benefits of immediate response. Example; Come in within the next 30
minutes and receive 20% off your meal.
Development of one-to-one relationship marketing. Consumer
purchasing history can be examined, thereby enhancing future
marketing messages.
Direct marketing spending effectiveness. True targeting of promotional
materials. Materials are delivered electronically and on demand, as
required. No hard copy waste or excess printing inventory.
Psychological Nurturing. The consumer 'feels like a somebody,' building
brand recognition and loyalty.
Increased return on investment (ROI) Repeat or additional consumer
purchases during a visit.
BLUE TOOTH TECHNOLOGY
Definition: BlueTooth is a
specification for the use of lowpower radio communications to
wirelessly link phones,
computers and other network
devices over short distances.
The name "Bluetooth" is
borrowed from Harald
Bluetooth, a king in Denmark
more than 1,000 years ago.
Media Comparison Chart
Criterion
TV
Radio
Magazine
Newspaper
Direct
Mail
Involvement
passive
passive
active
active
active
Interactive
Media
Richness
multimedia
audio
text and
graphic
text and graphic
text and
graphic
multi-media
Geographic
Coverage
global
local
global
local
varies
Global
CPM
low
lowest
high
medium
high
medium
Reach
high
medium
low
medium
varies
medium
Targeting
good
good
excellent
good
excellent
excellent
Track
effectiveness
fair
fair
fair
fair
excellent
excellent
Message
flexibility
poor
good
poor
good
excellent
excellent
E-Mktg