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Tag Archives: Database Marketing

Mass Marketing is Dead. Make Way For Personal Marketing.

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dans Marketing Strategy

The days of mass marketing are coming to an end as we enter a new era of personal marketing.  As technology advances, marketers are able to gather more and more data about prospective customers and reach them in new and innovative ways.  As these changes develop, its important that marketers recognize the changes taking place and change their tactics to match the changes in technology.

Until recently, marketers have pretty much taken a “mass media” approach to their efforts:  Blast out as many marketing messages as possible on every medium available as often as you can afford it.  In an era when it’s not really possible to learn anything about the audience and their tastes, this crude shotgun method of attack is pretty much the only option.  Mass marketing tactics are really just slightly more sophisticated versions of standing on the street corner yelling at people who walk by, hoping that some small percentage of them might be interested in what you have to say.

Mass marketing is already evolving toward a more personalized touch, and as this happens more and more, prospective customers will start to demand it.  Consumers are already extremely savvy about filtering out messages that are irrelevant to them.  Think about your own behavior; while reading articles online, most of us have learned to simply filter out anything on the screen that is flashing or blinking, or flying across the page because we know that these are irrelevant ads that must use these kinds of tactics to get out attention.

In contrast, contextually relevant, unobtrusive, text-only ads, such as Google Adsense, are a new targeted approach that are a step in the right direction toward more personal marketing. Critics of these kinds of ads say that the cost per conversion can be higher — the higher cost is not justified if the conversion rate is low.  This criticism hits on the key difference between mass marketing and personal marketing:  personal marketing does require a more intelligent game plan and ongoing analysis. The days of cranking out some one-size-fits-all generic artwork and some snappy copy that appeals to everyone are coming to an end.

Personal marketing will require more work, more preparation, and smarter implementation, but the rewards will be vastly better than the mass marketing approach.  For example, consider this post about how a difference of one letter in choosing key words can mean the difference between a 30% conversion rate and a 1% conversion rate.  This is the kind of detailed analysis and hard work that will be required to be successful in the new era of personal marketing.

Changes in technology will require even more due diligence on the part of marketers.  For example, the inevitable start of Bluetooth Marketing & Proximity Marketing will present new challenges to both marketers and audiences.  The challenges will be similar to those of email marketing.  Audiences will want to filter out unwanted messages, and it will be important that the marketing industry step up and employ the lessons learned in email marketing to Bluetooth and Proximity marketing, so that the industry doesn’t go through a decade of turmoil dealing with new forms of spam while simultaneously crippling the whole medium with a bad reputation.

Changes in technology will present an opportunity to vastly increase the ROI, conversions, and effectiveness of marketing efforts, but the rewards will only be recognized by those marketers who meet the new technology with equal innovation in tactics and lots of hard work.  It is more difficult to analyze web traffic, SEO metrics, conversion rates, and sift through databases, than it is to simply blanket the world with your message until your budget runs out, but in the end the extra effort will pay off.

The changes in technology will be coupled with huge advances in data collection and data mining.  It will be critical that marketers use this data wisely and ethically.  The data can serve to pinpoint audiences with amazing accuracy, which will ultimately make it better for everyone, but the temptation of misusing the data must be mitigated at all costs in order to preserve both the confidence of the public and the autonomy of the marketing industry to operate without strict government controls to protect the public.

The future that I hope the marketing industry creates is a world where audiences receive only the messages that interest them only at the time that they are receptive to the message, and they never receive unwanted messages and will not have to expend much effort to keep from being bombarded by messages in every medium to which they have access.  Its a tall order, but the marketing industry has to do it.  Otherwise, audiences will take matters into their own hands and refuse to participate.

Content Is King for Email Delivery

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dans Email Marketing

A colleague sent me this link discussing the use of the word “free” in email subject lines. The gist of the article was that using “Free” in the subject line is frowned upon by savvy email marketers because of its potential of triggering spam filters, but that their A/B split testing showed dramatically better response rates when they used “free” in the subject line, which caused them to conclude that “a free offer far outweighed the negative effective on clicks caused by triggering spam filters, resulting in a net click-through-rate gain.

Since the article was written by a copy writer, I’d like to offer the perspective of someone with perhaps a more technical angle. As the eMarketing program manager, one of my job responsibilities is to ensure email deliverability of our email marketing application, which requires intimate knowledge of how spam filtering works on a technical level and how to avoid the spam filter for legitimate emails.

Our system sends over 30,000 emails per day, many of which contain blatant marketing terms that would surely trigger spam filters, yet we have an average delivery rate over 95%. Of course, like all email marketers, we cannot easily determine if the email was being delivered to the spam folder or the inbox, but we know from our server logs that the emails were accepted by the receiving mail server, and much of our own testing shows that we are getting emails into the inbox most of the time.

Based on my experience and testing, content-based solutions are losing prominence as the de facto standard for spam filtering. Anti-spam technology is advancing very rapidly and is moving away from content filtering because it doesn’t address the real problem and can never be as accurate as is required in today’s business environment where conducting business is done almost entirely by email.

Reputation-based solutions are supplanting content filters as the best way to suppress spam because it does address the root problem: bad senders. These newer solutions are extremely effective at blocking the real spam and allowing legitimate emails EVEN IF the emails content may seem suspect. Case in point: Lyris has a case study showing that even senders with risqué content, like Frederick’s of Hollywood, can achieve very favorable response rates if they adhere to email marketing practices that focus on ensuring that your recipients want to receive your emails.

You can be pretty sure that Frederick’s emails will be loaded with all kinds of words that would throw up red flags for any content-based anti-spam solution, but they still get high response because they adhere to email marketing best practices like making sure their list contains only opt-in recipients, writing great content, providing great offers, and purging their lists of complainers and non-responders.

You may be familiar with the “report spam” button that appears in the web interface for email providers like gmail, yahoo, and aol. This button is part of these newer reputation-based anti-spam solutions. When recipients click those “report spam” buttons, the email providers make note of the sender and keep track of how many people are complaining about that sender. Eventually, if enough people complain, the ISP or email provider simply stops accepting email from senders that receive a lot of complaints.

If your recipients are not complaining, the chances of your emails being tagged as spam are lower. Senders that consistently have a low complaint rate earn a degree of trust and are usually subject to less content filtering. This is a very efficient system because senders who use best practices, like only sending to opt-in recipients, purging their lists regularly, and writing great content, get rewarded with being subject to less filtering.

So, in the end, the use of “free” (or any other term) in the subject line, does not operate in a vacuum and is dependent on other factors as to its effectiveness. If you send any email to a list of recipients who have not agreed to receive emails from you and are not interested in what you have to say, then the chances are high that anything you put in the subject line will be ineffective. Conversely, if you build a relationship of trust with your recipients and they value what you have to say, then when you put “free” in the subject line, they will know it is legit, and they will open the email and respond to your offer.

The Direct Marketing Voice Links: 12-10-2008

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dans News & Trends

Radio Business Report/Television Business Report: DM to account for 53% of US ad spend in 2009

Direct Marketing Association Power of Direct Marketing, in 2008 commercial and nonprofit marketers will spend $176.9 billion on direct marketing, accounting for 52.1% of all ad expenditures in the US. These advertising expenditures will generate approximately $2.057 trillion in total incremental US sales. In 2008, direct marketing accounted for approximately 10% of total US gross domestic product and 1.6 million direct marketing employees in the US. Their collective sales efforts directly support 9.3 million other jobs, accounting for a total of 10.9 million US jobs.

DIRECT: Marketers Lacking In Analytics Savvy: Global Survey

While direct marketers shouldn’t break their arms patting themselves on the back, a little burst of self-congratulation might be in order. Just under 47% of marketers around the world have “good insights into retention rates, customer profitability and lifetime value,” according to a new study from the CMO Council. And more than three-quarters of the respondents believe they aren’t realizing the full revenue potential of their existing customers. That said, whether coincidence or the result of tough economic times creating a demand for more accountability, 64% of those surveyed indicated they were evaluating their marketing spend with an eye toward increasing yield and accountability.

BusinessWeek: Get Your Free Dr. Pepper Today

…the soda brand’s smug promise that it would give a free Dr. Pepper to everyone in America if GNR frontman Axl Rose actually finished Chinese Democracy this year… turning Dr. Pepper’s cute PR stunt into a mega-promotion…The stunt got them a free marketing tie-in, tons of PR, and after these 24 hours, a huge database of customer information as people enter their name, birthday, mailing address and email to get a coupon that takes 4-6 weeks to arrive. A cheap price to sell away your personal data?…

The Direct Marketing Voice Links: 12-08-2008

0
dans News & Trends

TMCnet: National Center for Database Marketing (NCDM) 2008 Conference & Exhibition To Be Held December 8-10, 2008

WHAT:
National Center for Database Marketing (NCDM) 2008
Data-Driven Marketing. Bottom Line Results.
WHERE:
Gaylord Palms Resort, Orlando, Florida.

Sales Lead Insights: React Faster to Your Leads to Increase Your ROI

Mac McIntosh cites some interesting statistics on b-to-b marketers’ response times to e-mail inquiries. His conclusion: “In the B2B world, how responsive your company is to its inquiries, or how it handles the follow up of sales leads, has a lot more impact on prospective customers’ perception of your brand than brand advertising ever will.”

Precision Marketing: Email Marketing Best Way to Engage with Consumers

Nearly 70 per cent of companies use email marketing as the most powerful way to engage with their customers, according to a new report.

Graphic Arts Online: Four Printers First To Earn Green Certification

Printing Industries of America is proud to have four of its members recognized as Sustainable Green Printers (SGP Printers) by the Sustainable Green Printing Partnership (SGP Partnership).