Maximize Holiday Sales

As the holiday season kicks into high gear, brands are scrambling to maximize sales and results. The growing use of social media and smartphones adds enormous complexity, along with many opportunities for today’s digital marketing gurus. But fear not! With a little preparation and integration, double-digit sales increases are possible. Here’s how to get the most out of your Q4 digital efforts to drive sales and grow lifetime value for many years to come.

As the holiday season kicks into high gear, brands are scrambling to maximize sales and results. The growing use of social media and smartphones adds enormous complexity, along with many opportunities for today’s digital marketing gurus. But fear not! With a little preparation and integration, double-digit sales increases are possible. Here’s how to get the most out of your Q4 digital efforts to drive sales and grow lifetime value for many years to come.

Community tagging. Tag existing offline marketing efforts with Facebook/Twitter tags. Integrate “Like” opportunities at key touchpoints, such as your homepage and product pages. A recent study from Syncapse and Hotspex found the lifetime value of a Facebook fan is about $136 to top brands. Consider offering an incentive to encourage consumers to become a fan of your brand, such as making a donation to a cause/charity for each sign-up. And remember to stress the value of being a fan or follower. Adding a “Like” button or “Join the Community” call to action only makes return on investment sense if you have a strategy and communication framework established to engage the community once you’ve converted them.

Belly up to barcodes. It’s estimated as much as 70 percent of all purchase decisions are made at the point of sale (POS). Therefore, it’s critical to stand out on store shelves and to offer some extra value. How about integrating new 2-D barcodes, which enables consumers to use their smartphones to “Like” your brand or product at the POS? Also, pay close attention to mobile applications like Foursquare, which now boasts more than 4 million users. Mobile will increasingly become a critical channel to not only acquire new customers, but grow the community and drive sales via the serving of location-based offers.

Segment and socialize. Implement sharing capabilities on banner ads and email marketing efforts. For existing email efforts, segment your audience based on engagement and social profiles. By targeting best customers and testing various incentives, you can encourage your best customers to get actively involved in the promotion of your brand, thus extending your marketing efforts’ reach and effectiveness. Remember to not only identify who shared the information, but flag them as an influencer for future campaigns.

Email, social and loyalty. Lots has been written about the integration of email and social media. But the importance of coordinating efforts across channels cannot be underestimated. Coordinate socialized email deployments with Facebook and Twitter posts. Furthermore, for those of you with established loyalty programs and sites, don’t forget to sweeten the deal for loyalty members.

The old rule still applies: With proper pampering, your best customers will become your best advocates. Studies and data also show that they buy more products and purchase more often, so remember to treat them extra special. Integrate offers into loyalty websites and statements, and highlight additional benefits for your best customers.

Remarketing/targeting. If you’re a direct response marketer, you likely have access to lots of data. Start with the basics this holiday season by implementing a remarketing strategy for key efforts. With average open rates hovering around 20 percent, look closely at open/click activity and resend offers based on observed behaviors and actions. Consider sweetening offers when and where appropriate. Implementation of a remarketing strategy can lift overall conversion rates anywhere from 50 percent to 200 percent.

However, be careful not to annoy your customers. Be conscious of the law of diminishing returns. Also, look closely at website data and leverage cookie/pixel technologies to target users both onsite and offsite via ad networks with relevant, targeted offers based on their profiles and behaviors. Don’t forget to review your privacy policy, always be transparent and offer users the opportunity to opt out.

Search and destroy. Search remains an effective and efficient vehicle to drive desired behaviors as consumers are actively in the market for your products/services. But search remains underleveraged. Think carefully about corresponding landing pages, and look to integrate data-capture opportunities that offer relevant value to encourage subscriptions. Doing so will allow you to continue the conversation. Also, pump up your search marketing efforts by adding social links to paid search terms to increase visibility and “Likes” for your social efforts.

Earlier this month, the National Retail Federation forecasted holiday sales to increase 2.3 percent, slightly lower than the 10-year average of 2.5 percent. While this year’s estimate represents a significant improvement over last year, marketers must continue to look for operational and marketing efficiencies. That means working smarter, not harder. While paying close attention to supply chain management, inventory control and minimizing markdowns is a must, marketing must overdeliver as well. Marketers must learn to better leverage data, their best customers and emerging/efficient channels like mobile, social media and email to drive sales in today’s difficult market.

HULU.COM: An Intriguing Advertising Opportunity

Hulu is a fascinating Web site. Not only can its content be riveting to the viewer, but also represents a highly efficient medium for advertisers, enabling them to close the loop and measure actual ROI.

When I read that Hulu is drawing huge audiences, I went to the Web site and clicked on a movie—”Abel Raises Cain.” It is a 82-minute documentary about professional hoaxer Alan Abel, who was famous in the late 1950s for dreaming up and publicizing the “Society of Indecency to Naked Animals” with the mission of clothing naked animals. Over the years he has duped the media and made talk show hosts look like chumps and generally made a hilarious nuisance of himself with a slew of nutsy-fagen schemes, many of which are chronicled in this film.

This unique Web site offers full-length television shows and motion pictures; viewers remain on the site for a long time, sometimes a couple of hours—a boon for advertisers.

I sat through the entire film, which was presented with “limited commercial interruptions.” The TV-type commercial advertisements ranged in length from 10 to 30 seconds. Among the advertisers:
“Angels and Demons” (upcoming Tom Hanks film)
Nestea Green Tea
Honda Insight
Healthful Cat Food, Purina
Sprint Now Network
Swiffer Cleaner
Coldwell Banker

Returning to “Abel Raising Cain” on another day, I found additional advertisers:
American Chemistry Council
BMW Z4 Roadster
Toyota Prius
Panasonic Viera
Plan B Levenorgestra
Citi

At the end of this blog is a screenshot snapped during the BMW commercial. As you will see, the moving picture area takes up about half the computer screen, leaving a blank area above. At upper left is the film title, running time and the number of stars by reviewers. At upper right is a small response box that shows the car, the BMW logo and the headline:
The all-new Z4 Roadster
An Expression of Joy.

In light gray mousetype are two words: “Explore now”—the hyperlink to more information.

Once the commercial is finished and the film resumes, this little box remains on screen until the next commercial interruption. Then the next commercial’s response box stays on the screen. For the advertiser, this represents his presence onscreen for far longer than the 10-30 seconds allotted in the commercial.

Further, Hulu combines the razzle-dazzle of action-packed TV commercials with the advantage of direct marketing. The prospect clicks on the box, the advertiser has a record of the response to that commercial and that venue. This closes the loop: ad — response to ad — further info requested — and (hopefully) sale. The advertiser can do the arithmetic, measure the sales and determine whether the ad more than paid for itself or whether it was a financial loser.

This is far more valuable than running an ad on old-fashioned TV and hoping that people (1) have not left the room for a potty break and (2) will remember the thing when they are at the car dealer or supermarket.

What a direct marketer would do differently:
1. The response box at upper right is tiny compared to everything else going on. If Hulu wants happy advertisers, it should at least double its size, so that it is immediately obvious what to do.

2. The advertisers must make a terrific offer—something Free, for example—so the movie watcher is impelled to leave the film and go for the freebie. Or download a $500 certificate. With the tiny box and mousetype, these advertisers seem almost ashamed to ask you interrupt your movie to see what they have to offer. “Learn more” or “Explore now” in teeny-tiny light gray mousetype is not a compelling call to action.

3. My sense is that Hulu may be a tremendously efficient and relatively low-cost medium for testing TV commercials. Run an A-B split where one viewer gets the A commercial and the next viewer gets B and so on. The commercial that wins—gets the most responses—becomes control and is rolled out on TV, in movie theaters and anywhere else … until it is displaced by new commercial that tests better on Hulu.

With the Hulu model, razzle-dazzle TV-type commercials are combined with an immediate direct response mechanism. Trouble is that it is obvious the advertisers are allowing the general agencies that created the great commercials to handle the direct marketing element, which they know nothing about.

Old rule: never use a general agency for direct marketing.

But do spend some time at Hulu and think through how you might use it—either for sales or for testing.