What’s the Biggest Opportunity in Healthcare Marketing?

Healthcare marketing is a varied space. Facilities and pharmaceutical companies, for example, both have different priorities and marketing paradigms. How can you identify the opportunities that will lead to better outcomes for you?

Target Marketing Healthcare RoundtableWe’ve been looking a lot at healthcare marketing lately. It’s an industry we’ve been covering more, and that will reach a new level next week at our first ever Healthcare Marketing Roundtable! That’s on June 15, at the Pyramid Club in Philadelphia. (Click here if you’d like to come out for that!)

The Healthcare Facility View

Healthcare marketing is a varied space. Marketers at healthcare facilities — like Michael Capriotti of Virtua Health, who we recently had on the Marketing Garage Podcast) — are putting a lot of work into building customer interface systems like patient portals that improve the customer experience and speed up care. Done well, these improve outcomes, allow patients to get information easier, and drive down costs by shortening the time it takes to serve those customers.

If you click on the link to our podcast with Capriotti (who’s going to be speaking at the roundtable, too!) you’ll see that he specifically compares the healthcare patient expectation to customer expectations from instant-gratification tools like OpenTable.

As an industry, he says, healthcare has done a good job of projecting out patient needs, but “we haven’t really done a great job at going back an getting the voice of the customer.” And you need that to understand what each interaction means to patients and it how it makes them feel.

For Capriotti, understanding how these experiences make the patient feel is essential to gaining customer loyalty and evangelism.

The Pharma Prescription

For a pharmaceutical company, marketing is worlds different. Traditionally, pharma used to market directly to doctors. But over the past 15 years of so, marketing to consumers has become a bigger and bigger piece of the strategy.

Today, that consumer-aimed marketing is one of the largest collective ad budgets in the world, and major ad players are vying for it. Both Amazon and Facebook have launched initiatives this year to conquer large swaths of the pharma marketing and sales space.

Drug advertising is not, so far, what I would call customer-centric. There’s a lot of saturation media being bought, and you’re gonna hear about those little blue pills whether you like it or not.

That may sound like it’s behind the state of the art, but that means there’s a lot of opportunity, too.

So What’s the Big Healthcare Marketing Opportunity?

For me, across the board, it seems like making the marketing more targeted and customer-centric is either the active goal or the biggest looming opportunity.

If Facebook and Amazon do get into the pharmaceutical game, they will both offer tremendous targeting capabilities that haven’t been used as much in pharma.

Likewise, the more facilities are able to create customer information portals that make the experience more tuned to personal expectations, the more they’ll be able to improve loyalty and cut down costs.

The customer is the focus of all marketing, and this is a market with a lot of room left to improve and become more customer-centric.

At least, that’s my take. If you want to hear what some much more knowledgeable healthcare marketers think, and you’re not too far from Philly, come to our roundtable dinner on June 15. With marketers from Jeffereson Health, AmeriHealth, Recovery Centers of America, Virtua, and more, it’s going to be a unique chance to meet some of the best minds in the industry and hear what they think are the biggest opportunities in the market.

5 Data-Driven Strategies to Feed Your Customer Obsession

The digitization of our culture and marketplace has made it even more important for marketers to be customer advocates. Every bit of content we create, every retargeting campaign we develop and every customer journey we attempt to map … all this must be tied to superior and engaging customer experiences. It’s the only reason marketing exists.

The digitization of our culture and marketplace has made it even more important for marketers to be customer advocates. Every bit of content we create, every retargeting campaign we develop and every customer journey we attempt to map … all this must be tied to superior and engaging customer experiences. It’s the only reason marketing exists.

This Forrester Research recently claimed that companies obsessed with customer experience are more profitable and see higher growth. Consider Amazon, Nike or Mercedes Benz, where innovation is part of the culture. Consider how an obsession with innovation at Apple and Google translates to customer delight in their products. For the rest of us, it may be harder without that kind of a culture behind us, but frankly, there is no longer a choice for marketers: Each of us must adopt an attitude of obsession with customer satisfaction. Then, we need to employ a systematic approach to optimizing everything we do toward customer value. The key question to ask at every point in your day, “Is what I’m doing adding real value to a large number of high-value customers?” If not, change it or dump it.

Like any change, in life or business, it starts with attitude. If you don’t work for a customer-obsessed company, can you successfully meet the demands of your market and rise above the competition? At a minimum, companies must embrace that digital and customer experience is everyone’s business—great ideas and the seeds of change can come from anywhere, regardless of title, but do need to be cross-functional and valued to blossom.

It’s time to make this transformation personal. Consider how you can use the technology you have to adapt the customer experiences that you do control, and demonstrate success to the rest of the organization. This proof of concept approach is a great way to get more budget, too. Incremental change is great—improvements to a campaign for next time or an adjustment to the timing for a triggered message are good starting points. However, more is needed.

We must re-think the customer experience across an ecosystem, and not just a set of interactions with owned media or branded touchpoints. Collaborate with other suppliers and influencers to focus on digital efficiency so that you can react in “right time.” Right time is an alternate to “real time” that recognizes that immediacy is not the most effective reaction in all situations. This is especially true since the customer journey is non-linear.

Thinking differently can be difficult inside an organization—especially if you are successful. Often, good ideas are limited because of the way we ask questions about our customers or our marketing programs. A research experiment with third graders provides some proof of why creativity goes beyond tactical application of cleverness or humor. (The video is about two minutes long.)

The project gave two groups of third graders the same assignment—to make a picture out of a triangle. When the assignment was narrowly defined, the pictures came out nicely, but not that different from each other. When the assignment was not defined, the pictures came out wildly different—and much more creative!

Don’t just wait for disruption to come to your industry—learn to disrupt your own business. Truly aim to understand whatever is blocking your path to innovation and customer connection. Consider some of these strategic elements that can help you break free of legacy patterns and test new ideas.

1. Use the Data You Have to Zero-in on Key Segments. Use microtargeting to really get to know your customers. Dig deep into customization and personalization opportunities to find the small, yet potentially profitable subsets of your market and niche offerings.

2. Separate the Signal From the Noise. Being able to do so is a powerful intoxicant: If I can just repeatedly do that one perfect thing that will really drive our business forward, I’d dominate our market and be a hero. Problem is, identifying that one perfect thing is very hard. Marketing analytic models may be more accessible than you think—and perhaps are no longer a luxury, but an imperative for understanding the customer needs—and predicting future behavior. Bring these practices closer to the campaign management and segmentation strategy—and give your analytics teams a seat at the table. Consider some of these key questions that analytics models can answer:

a. What dynamic forces are affecting my customer and how effectively am I changing to meet these changes?
b. Are there new market opportunities developing that I can take advantage of and become the industry leader?
c. Would this new product be interesting to our current customers? What must be true for customers to feel pain? Who are our most valuable customers, and over time? What outside factors impact customer loyalty and retention?
d. What are the characteristics of our best prospects?
e. Which marketing messages and campaigns are contributing, and when do they contribute during the lifecycle?

3. Marketing Automation Tools Are Slowly Evolving to Help You Manage These Changes, but you may need to bolt together point solutions in the meantime (especially if a big upgrade is not in your budget this year). Look to consolidate applications into a platform with data and process level integration to improve efficiency and effectiveness; work to integrate marketing technology with the enterprise infrastructure to reveal deeper insights into customers, partners and market opportunities. Here is a good reason to establish inter-disciplinary teams with IT and sales and customer service and legal to improve marketing contribution, vendor management, due diligence and governance practices.

4. Paid Placements (Native Advertising) Are Here to Stay. Spend your money on the right content and platform and understand which digital properties are performing best. Build budgets and relationships around content placement, sponsorship opportunities, syndication services and content recommendation platforms. Content marketing can’t be limited to owned and earned media if you need to reach larger and broader audiences.

5. Focus on Quality Content; we are all publishers now. Mobile will continue to dominate, so master its impact on your content and targeting. All our writing has to be compelling and adaptable across platforms, and written to the tastes of narrowly targeted personas. Automation tools help to make sure your content is repurposed with panache and context.

Clearly there’s lots of opportunity for growth in many areas of marketing success, particularly as we align our investments in areas where vendors have incentives to innovate. Scouring your budget for “past success” might be a good place to start: Given the advances in technology, will what worked in 2010 or even in 2014 work now in 2015? Please share your own tips and challenges for creating a customer-obsessed culture in your organization in the comments section below.

Programmatic Marketing Demystified for Direct Marketers

Programmatic marketing is tailor made for direct marketers. Why? Because direct marketers know the identity of our customers and opt-in prospects and that data can be matched with browser IDs. Matched customer data takes online advertising beyond retargeting. After clearing away the techno-speak, what you discover about programmatic marketing, or real-time bidding (RTB), is a hidden opportunity for direct marketers. With a 35 percent growth rate projected in the next three years, programmatic marketing is an online opportunity every direct marketer

Programmatic marketing is tailor made for direct marketers. Why? Because direct marketers know the identity of our customers and opt-in prospects and that data can be matched with browser IDs. Matched customer data takes online advertising beyond retargeting. After clearing away the techno-speak, what you discover about programmatic marketing, or real-time bidding (RTB), is a hidden opportunity for direct marketers. With a 35 percent growth rate projected in the next three years, programmatic marketing is an online opportunity every direct marketer needs to become versed in.

My hunch is that a lot of direct marketers are lost, either trying to grasp how programmatic marketing can be practically used by them, or if it’s even worth exploring. I’ve recently investigated and researched programmatic marketing for a client to determine if it made sense for them. In the process, I discovered something that suggests direct marketers have a leg up as users of real-time bidding.

I’ll explain how the opportunity for direct marketers works in a moment. But first, let’s review a few fundamentals about programmatic marketing and how real-time bidding enables it to work.

  1. Programmatic marketing is where you establish automated business rules (who is targeted, and with what ad) so you can quickly and efficiently target your most valuable prospects and prospective customers.
  2. This targeting enables you, the marketer, to serve your prospects and customers with digital ads.
  3. Programmatic marketing is a strategy, or a marketing process. Real-time bidding (RTB) is the tactic that enables programmatic marketing methods to work.

Unlike most banner ads that are indiscriminately shown to anyone on a certain website, the goal of programmatic marketing is to eliminate wasted impressions. That is, you only want your ad to be shown to users who have, based on prior online behavior, indicated a likely interest in the category of the product you’re marketing. Through sophisticated tracking systems, in just milliseconds a bid is processed (based on prior web behavior and other attributes) and the ad served in “real time.”

How does RTB enable programmatic marketing?

  1. Ads are served to people based on online surfing. A person using a search engine with the keywords “investment opportunities” or “new mortgage,” is known to be searching for these topics. Those individuals will see ads on certain websites (even those websites that aren’t in the investment or mortgage business) related to the search terms they just used. These are search retargeting ads.
  2. Another powerful feature of RTB is when an individual visits a site and moves on to other places on the web. When that happens, the user sees ads related to a site they just visited. Those are site retargeting ads.

But beyond ads being retargeted to someone based on behavior, programmatic marketing offers a third hidden opportunity for direct marketers. In this case, ads can be served to your customers without them having searched, or even visited, specific types of sites.

Some advertising technology companies will connect you with a third party firm who can match the names and addresses of your customers and known opt-in prospects to their online browsers (e.g. Internet Explorer or Apple’s Safari). The third party firm will a) remove personally identifiable information (called “PII”), and b) append to your customers or known prospects their browser ID. (To emphasize: personally identifiable information is removed from your list during this process. Codes are assigned to your list so that no names can be tracked back and the user’s privacy is maintained).

The result? Your ads can appear online to your customers or known prospects.

“Typically, around 50 percent of a direct mail list can be matched to online browsers,” says Frost Prioleau, CEO at Simpli.fi, an advertising technology firm. “This enables advertisers to communicate with their known prospects through online display advertising across a wide range of web sites, enhancing their brands and driving incremental sales.”

Looking at this another way, it means that whenever your customers or known prospects are on websites that show banner ads, your ad will be shown (or served) so your customers and prospects can click to a landing page with an offer reserved for them. You can even split versions of ads so customers see one ad, linking to a landing page for them, or you can use a different ad for opt-in prospects with a landing page and offer for them.

This is a significant hidden advantage of programmatic marketing for direct marketers. That is, your customers can see your ads without being retargeted based on search or sites they’ve visited.

Ads served to your customers or known prospects can be more powerful than only retargeting for the simple reason that a current (or former) customer will be reminded of your company every time they’re surfing websites that accept ads. If you have been marketing to them by direct mail, email, or other channels, this is one more opportunity for you to be on their radar screen when they may be researching competitors, or have simply reached the tipping point decision to get more information or buy.

When Companies Lose Customers …

United Parcel Service suffered staggering customer defection as a consequence of its 15-day Teamsters work stoppage in 1997. The result was that, even after their 80,000 drivers were back behind the wheels of their delivery trucks or tractor-trailers, many thousands of UPS workers were laid off. A UPS manager in Arkansas was quoted as saying: “To the degree that our customers come back will dictate whether those jobs come back.”

United Parcel Service suffered staggering customer defection as a consequence of its 15-day Teamsters work stoppage in 1997. The result was that, even after their 80,000 drivers were back behind the wheels of their delivery trucks or tractor-trailers, many thousands of UPS workers were laid off. A UPS manager in Arkansas was quoted as saying: “To the degree that our customers come back will dictate whether those jobs come back.”

The UPS loss was a gain for Federal Express, Airborne, RPS and even the United States Postal Service. They provided services during the strike that made UPS’ customers see the dangers of using a single delivery company to handle their packages and parcels. FedEx, for example, reported expecting to keep as much as 25 percent of the 850,000 additional packages it delivered each day of the strike.

UPS’ customer loss woes and the impact on its employees was a very public display of the consequences of customer turnover. Most customer loss is relatively unseen, but it has been determined that many companies lose between 10 percent and 40 percent of their customers each year. Still more customers fall into a level of dormancy, or reduced “share of customer” with their current supplier, moving their business to other companies, thus decreasing the amount they spend with the original supplier. The economic impact on companies, not to mention the crushing moral effect on employees—downsizing, rightsizing, plant closings, layoffs, etc.—are the real effects of customer loss.

Lost jobs and lost profits propelled UPS into an aggressive win-back mode as soon as the strike was settled. Customers began receiving phone calls from UPS officials assuring them that UPS was back in business, apologizing for the inconvenience and pledging that their former reliability had been restored. Drivers dropping by for pick-ups were cheerful and confident, and they reinforced that things were back to normal. UPS issued letters of apology and discount certificates to customers to further help heal the wounds and rebuild trust. And face-to-face meetings with customers large and small were initiated by UPS—all with the goal of getting the business back.

These win-back initiatives formed an important bridge of recovery back to the customer. And it worked. The actions, coupled with the company’s cost-effective services, continuing advances in shipping technology, and the dramatic growth of online shopping, enabled UPS to reinstate many laid off workers while increasing its profits a remarkable 87 percent in the year following the devastating strike.

UPS is hardly an isolated case. Protecting customer relationships in these uncertain times is a fact of life for every business. We’ve entered a new era of customer defection, where customer churn is reaching epidemic proportions and is wrecking businesses and lives along the way. It’s time to truly understand the consequences of customer loss and, in turn, apply proven win-back strategies to regain these valuable customers.

Nowhere are the effects of customer defection more visible than in the world of Internet and mobile commerce, where the opportunities for customer loss occur at warp speed. E-tailers and Web service companies are spending incredible sums of money to draw customers to their sites, and to modify their messages and images so that they are compatible and user-friendly on all devices. Because of this, relatively few of these companies, including many well-established sites, have turned a profit. Customer loss (and lack of recovery) is a key contributor. E-customers have proven to be a high-maintenance lot. They want value, and they want it fast. These customers show little tolerance for poor Web architecture and navigation, difficult to read pages, and outdated information or insufficient customer service. Expectations for user experience are very high, and rising rapidly.

Internet and mobile customers, to be sure, have some of the same value delivery needs as brick-and-mortar customers; but, they are also different from brick-and-mortar customers in many important and loyalty-leveraging respects. They are more demanding and require much more contact. They require multi-layer benefits, in the form of personalization, choice, customized experience, privacy, current information, competitive pricing and feedback. They want partnering and networking opportunities. When site download times are too long, order placement mechanisms too cumbersome, order acknowledgment too slow, or customer service too overwhelmed to respond in a timely fashion, online shoppers will quickly abandon their purchase transactions or not repeat them. Further, they are highly unlikely to return to a site which has caused negative experiences.

What’s more, the new communication channels also serve as a high-speed information pathway for negative customer opinion. If unhappy customers in the brick-and-mortar world usually express their displeasure to between two and 20 people, on the Internet, angry former customers have the opportunity to impact thousands more. There are now scores of sites offering similar negative messages about companies in many industries, and giving customers, and even former employees, a place to express grievances. It’s a new form of angry former customer sabotage, which adds to the economic and cultural effect of customer turnover.

For many of these sites, part of their charter is to help consumers find value; and, like us, they understand that customers will provide loyalty in exchange for value. They also recognize that the absence of value drives customer loss, and that insufficient or ineffective feedback handling processes can create high turnover. As one states: “The Internet is the most consumer-centric medium in history—and we will help consumers use it to their greatest personal advantage. We will increase the influence of individuals through networks of millions. We will raise the stakes for companies to respond. We will require companies to respect consumers’ choice, privacy and time, and will expose those that do not.” This may sound a bit like Orwell’s “Animal Farm,” but it does acknowledge the power of negative, as well as positive, customer feedback.

Some businesses seem minimally concerned about losing a customer; but the only thing worse than the loss of high value customers is neglecting the opportunity to win them back. When customer lifetime value is interrupted, it often makes both economic and cultural sense for the company to make an active, serious effort to recover them. This is true for both business-to-business and consumer products or services.

So how does a company defend itself against the perils of customer loss? The best plan, of course, is a proactive one that anticipates customer defection and works hard to lessen the risk. Companies need defection-proofing strategies, including intelligent gathering and application of customer data, the use of customer teams, creating employee loyalty, engagement and ambassadorship, and the basic strategy of targeting the right kind of customers in the first place. But in today’s hyper-competitive marketplace, no retention or relationship program is complete without a save and win-back component. There is mounting evidence that the probability of win-back success and the benefits surrounding it far outweigh the investment costs. Yet, most companies are largely unprepared to address this opportunity. It’s costing them dearly, and even driving them out of business.

Building and sustaining customer loyalty behavior is harder than ever before. Now is the time to put in place specific strategies and tools for winning back lost customers, saving customers on the brink of defection and making your company defection-proof.

4 Tips to Get in the Mobile Mindset

We’ve talked about SMS, mobile websites and mobile email. But, as you may know, those are just tools to get your job of marketing your business done. Yes, building these into your strategy are the core foundations of mobile success, but mobile is more than technology … Mobile is about your customer. Now, I’m not here to shout out stats, because I’ve provided those before. And, frankly, you’re here … so you know adding mobile to your business is critical. Your customers are mobile … therefore, your business needs to be.

We’ve talked about SMS, mobile websites and mobile email. But, as you may know, those are just tools to get your job of marketing your business done.

Yes, building these into your strategy are the core foundations of mobile success, but mobile is more than technology …

Mobile is about your customer.

Now, I’m not here to shout out stats, because I’ve provided those before. And, frankly, you’re here … so you know adding mobile to your business is critical.

Your customers are mobile … therefore, your business needs to be.

Now, before you go and plan your strategy and determine the appropriate tactics to reach your goals, you need to put yourself in the mobile mindset.

I recently attended Mobile Marketer‘s Mobile FirstLook event in New York in which many brands, such as Coca-Cola, Sephora, MillerCoors, Nissan and JetBlue discussed their strategies.

I noticed that all of these individuals work within their entire organization to help them think differently about the mobile opportunity.

Making sure you have the mobile mindset and your organization is on board and you’re more likely to succeed.

Here are four tips I learned from the top brands on getting in the mobile mindset:

1. Think about your mobile opportunity across your organization.

Mobile isn’t just about marketing. Can mobile enable your sales team to sell more effectively? Can mobile optimize tasks to save time? Can mobile save you money by cutting down on transaction fees?

Before you think SMS, QR Codes or apps, think “How can mobile add value to all of the other parts of my organization?”

2. Stop making it complicated.

Believe me, I know it’s super complex and overwhelming to keep up with the latest and greatest technologies.

Coca-Cola focuses on six aspects of its mobile programs. Those are the six that work for THEIR business. They may not be the same for your business, but you can’t worry about ALL the possibilities of mobile. Focus on the handful of things that will most impact your business.

3. Work with the right partners. Ones you can trust.

Luckily, we don’t have to do all of this alone. In fact, if you try you’re more likely to get frustrated and give up. Aligning yourself with the right strategic partners and technology partners is important.

Again, every business is different, so you need to make sure that the workflow and process of your partners matches the style of your business. You most likely want to enjoy working with them, too. Make sure personalities mesh well.

Finally, I don’t care how big your company is. Mobile is no longer a “nice to have.” No matter the size of your business, you can find someone who knows more than you do and who is able to offer services.

4. Stop waiting.

This was probably the most powerful statement of all. So simple, but it needed to be said.

With technology advancing so fast, some businesses find themselves waiting for the next great thing in order to start. Guess what? When you do that … you never start.

Listen, nobody is going to do it for you … it’s on you to dive in and get the process started.

If you’re dilly-dallying and finding excuses to wait just a little bit longer … quit complaining and start taking action.

Yes, you’re going to make mistakes, and that’s fine. But what you learn from those mistakes will be an important part of your growth.

Starting now is the only way you’re going to learn what works for YOUR business.

How ‘Frienemy Marketing’ Can Save Your Online (and Offline) Business

With the economic climate as crazy as it’s been, now more than ever businesses large and small are looking for creative ways to increase visibility, sales and leads. One effective way is to leverage the relationships with your ‘friendly’ competition. By friendly, I mean synergistic and respected formidable adversaries with a like-minded community of followers to your own.

With the economic climate as crazy as it’s been, now more than ever businesses large and small are looking for creative ways to increase visibility, sales and leads.

One effective way is to leverage the relationships with your ‘friendly’ competition. By friendly, I mean synergistic and respected formidable adversaries with a like-minded community of followers to your own.

You can look to this niche for opportunities to help grow your list and add extra revenues to your bottom line. Even better, this can be done for virtually no out-of-pocket cost.

This is a great way to leverage your content and increase market share, enhance brand awareness, grow sales and leads, and establish credibility with a new, yet synergistic list.

As a consultant, and even back in the days when I was leading the marketing efforts at top publishers, it’s important for me to be “strategically creative” and deploy as many no-cost online marketing tactics as possible for greater return on investment (ROI).

I like to concentrate on the marketing and editorial relationships I have forged with fellow publishers and aggressively pursue ad swaps, guest editorials and joint ventures (JV). I’ll explain a little more about these three opportunities in a moment.

With “frienemy marketing,” the idea is to develop synergistic relationships that are mutually beneficial—to look for areas of deficiency in your competitors and think of ways your company can fill the void.

One potential partner may have a great front-end product (e.g., a low cost e-book) but no up-sell (e.g., a higher-priced related kit containing DVDs, CDs and workbooks). Another potential partner may have an innovative back-end product but no cost-effective front-end product to bring new customers in the door. Still others may have large, qualified lists but need editorial to bond with their lists.

Some tips to keep in mind when looking for partnerships with friendly competitors:

Do your homework. Find out, in advance, who will be at industry events that you’ll be attending. (Check the program for speakers, vendors and participants.) Sign up for their e-newsletters. Read their promotional emails. Maybe even purchase some of their products.

Look at EVERY opportunity as a way to maximize your company’s brand during presentation breaks, lunch time and cocktail parties. When you go to industry events, don’t eat dinner alone in your hotel room. Go to functions. Mingle. Network. Have a genuine conversation with a potential partner … then, if there’s a synergy between your two companies, exchange business cards.

Before you contact a potential partner, get familiar with his products and target audience and figure out how your company may be able to dovetail with his product line or marketing efforts.

So, once you’ve made the connection, now what? You need to look at potential marketing and editorial opportunities …

Ad swaps are a form of revenue sharing. Typically, this can be a text or graphic ad two publishers place in each other’s e-newsletters and each keep 100 percent of the sales they get from their respective ads, no strings attached. Other things to know: Both list sizes should be close in circulation size, hence the reciprocity. You both keep any sales or email addresses collected, and call it a day. Know your “opportunity cost”—the “cost” you will incur for running an outside ad to your list instead of your own ad. If you normally sell ad space in your e-newsletter, this cost could simply be the flat rate fee you typically charge. Or, if you know the average revenues an issue brings in, you could calculate the potential “missed opportunity” of letting another ad run to your list on a given day. You should also agree to share important information with your partner. Before his ad runs in your e-newsletter, point out any creative issues. Provide your partner with your e-newsletter’s sent and deliverability sizes, open rate and ad click rate. Exchanging performance data is critical to a long and mutually beneficial relationship. It has to be a win/win situation for the partnership to work.

Guest editorials are offering content (editorial) that is relevant and targeted for an external publication and reciprocate. This is a great way to get introduced to a new list with the “implied” endorsement of the publisher. His endorsement gives you credibility. And if you provide his readers with good, solid, useful information, they will bond with you quickly.

This is a soft-sell approach that may or may not yield results on its own. At the end or beginning of the article is an Editorial Note or Byline, which can have author attribution, back-link to your website and short sentence for cross-selling, which help with sales, traffic generation and link-building efforts.

Joint ventures are similar to affiliate relationships, with the difference that instead of an affiliate program that is openly marketed, this relationship is more personal—it’s usually a company that you’ve built and cultivated a relationship with and are looking forward to a variety of ongoing business ventures down the road. There’s more of a vested interest. This is a quick and cost-effective way to make money with your list even if you have not yet developed any products.

To determine the viability of a potential JV product, there are several strategic marketing variables to consider. I like to think of them as “PPPGS”:

P = Product quality
P = Price point
P = Performance (when promoted to your potential partner’s house list, as well as to outside lists)
G = General market demand
S = Subscriber interest (when promoted to your list, as determined by feedback, surveys, etc.)

Remember, with “frienemy marketing” you’re looking for long-term partners, not one-hit-wonders. So carefully select the people you approach, making sure their products, brand and message make sense to your business … and, together, you can reap the unlimited profit potential of this underutilized business builder.

Turning Email and Social Synergy Into Opportunity

In marketing — as in candy bowls — chasing too much opportunity can produce nothing more than paralysis or, at best, a dilution of the effort when it’s spread too thinly.

Too much candy isn’t good for you. As appealing as that big bowl of M&Ms looks right now, you know that if you get even get close to it, you’re going to regret it.

The same can be true in marketing. Working with a marketer who is merging three email programs into one campaign management application, I realized very early that there was huge opportunity for synergy of content as well as cross-selling and promotion between the three brands. The marketer was very excited about the possibility of managing the programs in a true CRM-driven fashion. That was only possible once the programs were generated off the same database and integrated at the subscriber level. Until now, the best this marketer could do was run separate promotions with similar offers, then try to compare the impact on revenue and unsubscribes after the fact. There were never very promising results.

With everything managed in one solution, the field is open for new approaches. A quick diagram of the combined customer base by brand showed a very slim overlap between them. At first glance, that feels like all upside — what a great opportunity to expose each brand to new, known audiences. It’s a big bowl of untouched delicious chocolate!

Synergy situations like this do create opportunity. That can be very exciting. But before you get too swept up in dreaming big, consider how important it is to prioritize those opportunities. In marketing — as in candy bowls — chasing too much opportunity can produce nothing more than paralysis or, at best, a dilution of the effort when it’s spread too thinly.

Consider these factors to help prioritize the opportunities before you:

1. Permission. Never assume permission. Period. First, it may be illegal depending on the countries where you market. Second, it’s bad marketing. There’s plenty of cross-sellling opportunities along the existing permission grants that you own today. At the same time, encourage subscribers to sign up for more types of messages from other brands in your preference center.

Lest you falter in your steadfastness, take this tale to heart: We had one marketer recently suffer a big drop in sender reputation and inbox placement. We traced the high complaints to a few campaigns promoting retail partners. Even though it was the marketer’s brand, template and “from” line, subscribers thought the messages were actually from the partners. Complaints were very high, even though the partners were trusted brands themselves. Subscribers knew they didn’t sign up for email from those brands and didn’t stop to check to see if it was a cross-promotion. They just clicked the spam button. Even if you own the partner brands, don’t assume your subscribers know that. I can’t emphasize enough how important it is to gain permission and earn it with every message you send.

2. Audience profile. You don’t have the time or resources to tackle every possible cross-promotion opportunity, so focus on the two to three that have the right criteria — reach, revenue and strategic importance. The latter is sometimes hard to gauge, but it usually involves business drivers, high-value customers or high-visibility projects. Balance those factors out in a spreadsheet so that you have real science behind your discussions. Make sure that every test has an actionable learning so that you can continue to improve and optimize.

3. Brand affinity. Just like in social marketing, customers who already trust you are the ones most likely to take your advice on cross-promotional purchases. Therefore, segment not just by permission status but also by the likelihood of brand affinity that will encourage cross-pollinization of the brands. For example, free online members may have a very low brand affinity and thus are least likely to welcome cross-promotions. Paid members who have purchased recently or have more than one product will be more likely to welcome upsell offers (and not complain).

4. Sales channel preference. A factor that became more important than we initially considered is sales channel — e.g., those who purchase in-store versus online. Not only are there demographic differences between the two, but there are also differences in the way email is used. For example, in this case email wasn’t very successful at encouraging in-store customers to purchase online, but it was effective in generating store traffic. Seems obvious now that we see the results, but of course the magic is in the discovery.

5. Customer life cycle. This is perhaps the most important factor. I’ve found time and again that marketers are way too confident in their assumptions about how interested consumers are in their offers. In fact, you have to start way back in the life cycle for cross-promotions, just as you would with new prospects (which, of course, many of these people are). Nurturing has to start with discovery and exploration. Too many times marketers hit prospects with offers well before they’ve established credibility with them or before they even acknowledge their own needs.

What have you learned from your efforts to create new revenue and customer satisfaction opportunities through data integration? Please share your thoughts and ideas in the comments section below.

Measuring the Impact of Facebook on Sales

There’s been a lot of talk about Facebook’s impact on commerce from industry pundits. “Will it be retail’s next Google?” asked one report from a leading analyst’s firm. While we’re still very much in the early stages of social media marketing, one thing is certain: In a world where people are increasingly turning to others for opinions and recommendations on the things they need, social commerce, specifically Facebook commerce (f-commerce), is something worthy of additional exploration. But before we jump into the numbers and opportunities, let’s examine what’s required to build a successful f-commerce effort.

There’s been a lot of talk about Facebook’s impact on commerce from industry pundits. “Will it be retail’s next Google?” asked one report from a leading analyst’s firm. While we’re still very much in the early stages of social media marketing, one thing is certain: In a world where people are increasingly turning to others for opinions and recommendations on the things they need, social commerce, specifically Facebook commerce (f-commerce), is something worthy of additional exploration. But before we jump into the numbers and opportunities, let’s examine what’s required to build a successful f-commerce effort.

First off, I’m a believer. (So much so that I recently joined the marketing advisory board of an f-commerce provider, Milyoni.) Some of the examples below, including Warner Brother’s experimentation with Facebook as an alternative digital distribution platform, are powered by Milyoni’s technology. Having said that, f-commerce doesn’t just happen.

I believe that all successful f-commerce programs start with creating engaging conversations and communities. Trust and advocacy flourish over time, allowing brands to develop programs that harness the power of the social graph. If done well, brands have the opportunity to build a commerce platform that not only stands on its own, but ultimately supports and amplifies existing marketing and sales efforts.

If you’ve spent time building your Facebook community and implementing channel tracking for promotions, you’ve probably already witnessed the growing influence social networks are having on your overall promotional efforts. For one of my clients, Facebook is now second to email in terms of rebate form completions and conversions. That’s a testament to the power of building a highly engaged community and its impact on sales.

Now for the data. If you’re still a skeptic, consider the following:

Sales: A recent report from consulting firm Booz & Company titled Turning “Like” to “Buy” estimates social commerce sales will reach $5 billion worldwide this year, with $1 billion coming from the U.S. This is expected to grow sixfold to more than $30 billion worldwide ($15 billion in the U.S.) by 2015.

Consumer acceptance: Booz & Company reports 27 percent of consumers said they’d be willing to purchase physical goods through social networking sites.

Brand acceptance — diversified and growing:

More recently, movie studios like Warner Brothers have shaken up the industry by experimenting with Facebook as an alternative digital distribution platform by offering five movies — “Harry Potter and the Sorcerer’s Stone,” “Harry Potter and the Chamber of Secrets,” “Inception,” “Life As We Know It” and “Yogi Bear” — for rental using Facebook Credits.

In fact, news of the test sent shares of Netflix tumbling by more than 6 percent or $650 milllion. Why? One, social networks offer studios a way to bypass services like Netflix, whose streaming digital influence continues to grow. Two, the ability to post comments and interact with friends opens up a host of new opportunities to not only tap into the social graph to create a unique experience, but to inform the studio and influence future development efforts.

In today’s world, brands need to be everywhere their customers are. So why not facilitate the ability to transact there as well? No doubt social commerce has arrived, but its definition will continue to evolve and expand. From traditional retail stores to an innovative digital media distribution platform, the power of Facebook as a viable social commerce platform is one of the big opportunities of the decade.

The Strategic Imperative of Understanding Mobile in 2011 and Beyond

There aren’t many industries with a compound annual growth rate of nearly 57 percent, especially in the midst of the worst recession in generations. But that’s one measure of the success of mobile advertising, which has moved out of brands’ and agencies’ research and development budgets and into their mainstream spending.

There aren’t many industries with a compound annual growth rate of nearly 57 percent, especially in the midst of the worst recession in generations. But that’s one measure of the success of mobile advertising, which has moved out of brands’ and agencies’ research and development budgets and into their mainstream spending.

Take local mobile advertising, which consists of ads that are related to a user’s location. In 2009, the U.S. market for local mobile advertising was worth $213 million, according to BIA/Kelsey, a consultancy firm. Various outlets are predicting that revenues will top $2 billion by 2014.

Advertisers are spending more on the mobile channel because they understand the impact not just on their advertising, but on their businesses in general. That understanding comes from both the growing number of success stories and independent research that quantifies the mobile channel’s reach and effectiveness.

An April 2010 Mobile Marketing Association (MMA)/Luth Research survey found that nearly one in four U.S. adult consumers use mobile location services. Nearly half of those who noticed any ads while using those services took at least some action, indicating that consumers respond well to ads via location-based services. 


What are next year’s opportunities?
This research is noteworthy because it highlights some of the bigger mobile opportunities for brands and marketers in 2011 and beyond. The mobile channel’s inherent location capabilities, for example, coupled with high user awareness of those capabilities, provide new opportunities to deliver mobile coupons when consumers are literally in position to make a purchase.

Because cell phones are something that most consumers carry with them at all times, these devices also can be used to “mobile-enable” traditional media such as print, broadcast and billboards. For example, by adding a common short code (or QR code) to an ad, marketers can capitalize on consumer interest in their products or services by immediately delivering information, e-coupons or enabling a purchase on the spot.

This isn’t pie-in-the-sky forecasting, either. A May 2010 MMA/Luth Research survey found that approximately one in five U.S. adult mobile phone owners have used their cell phone for mobile commerce in the past month.

All of these factors highlight another, overarching opportunity: The mobile channel has evolved beyond serving as only a marketing tool. It’s now a highly effective way to facilitate sales transactions, provide customer care, foster brand loyalty and solicit customer feedback. No wonder that U.S. advertisers and agencies plan to increase their mobile spending 124 percent, to more than $5.4 billion, by the end of 2011.

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.