Direct, Data-driven Marketing Increase Brand Equity

I may be a ripe heretical candidate to be barbecued at the stake by my more conservative direct marketing colleagues, but I’ve come to the conclusion that communications which enhance brand equity should be accounted for as such, and that this value must be part of and added to the data-driven marketing equation.

Opening Keynote - Dinosaurs & Cowboys: Direct Marketing Secrets Every Marketer Needs To Know Whether You Are Selling Online, Offline or Both
Direct marketing may be an older technique, but it’s relevant and adds to brand equity
Check out even more about personalization and artificial intelligence with FUSE Enterprise.

Back when direct marketing was a tribal affair and its warriors and their acolytes were constantly on the field of battle against the trendy “mad men,” it was a heresy to even consider that any marketing action that didn’t have a measurable call to action was anything but pure waste. The image purveyors had a monopoly on all of the glamor and all of the money. And they could laugh off that eternal question attributed to Lord Leverhulme: “I know half of my advertising expenditure is being wasted, but no one can tell me which half.”

Long before we had computers to churn all of the numbers, our DM tribe boasted that we could exactly determine whether the advertiser was getting his money’s worth by dividing the total advertising expenditure in each medium, or even each specific ad, by the number of measurable sales generated. When a campaign was running, the first place to stop when one got to the office in the morning was the mailroom, because that’s where the orders were.

Until the last decade of the 20th century, the concept of valuing “brand equity” didn’t exist. If you owned Coca Cola or Nescafe, what the brand was ‘worth’ was measured almost totally by the sales and profits generated in the marketplace. In 2006, “The Journal of Consumer Marketing” published an important academic article, “Measuring Customer‐Based Brand Equity” which made a compelling argument that “brand equity positively influences financial performance.” Even the most hidebound direct marketing professionals had to recognize this reality, even if they found it convenient to ignore it in their own work.
Recently, working on a project to present the results of a broad multi-media campaign to a company with the recommendation that it be expanded, one of the factors arguing for that expansion was an analysis of the return on the marketing investment (ROMI). The combined press media and digital campaign invited the reader/viewer to an attractive homepage, which both told the advertiser’s story and offered the next step in the journey — registration to receive a free series of ‘content’ publications and videos.

Peter's media response analytsis
(Note: In Brazil, where this article was written, in the templates, commas denote decimal points and ‘.’denote the commas used to separate thousands.)

Using the standard media response template, it was easy enough to put costs against each of the site visitors and registrants. For the advertiser’s $60,000, he received 5,300 visitors; and of these, 2,060 people registered to receive the additional content. Although it had been established by the client that the lifetime value of a purchaser would average $250.00, because there was no direct sale of the product (although one could have been promoted with an incentive coupon, etc.), the problem was how to show the advertiser what he had gotten for his money.

To value the campaign, we had to start with the concept that only a percentage of the registrants would be “buyers.” So we built a simple “sensitivities” table, ranging possible conversion percentages Peter's blog post chartand established the sum of all of the costs that would be necessary to effect the conversion, had the client wished to promote a direct conversion. Looking at the number of likely sales from the sensitivities table, even being conservative and saying that only 40 percent or 824 would become buyers, the cost per sale at $54.88 would be acceptable: a lower cost would be better.
There is an old saying that: “The heresy of one age becomes the orthodoxy of the next.” If it were a direct marketing heresy in the past to ascribe any value to the frequency a consumer came in contact with a brand message if this could not be traced to a measurable sale, perhaps we ought to revisit this and, in our new digital age, this might be transformed into orthodoxy. That said, how can we reasonably and fairly determine the added brand value: What price should we put on each head?

Another Peter blog post chart

Economics teaches that the value of something is what a willing buyer is prepared to pay for it. If the willing buyer is prepared to pay $5 per thousand to send out email messages, then is it really a heresy to say that these communications have a positive value in conveying the brand message — adding to the brand equity — to the analytically selected audience? Note that in the campaign results summary above, we have valued the 20 million brand impressions at $60,000, almost the entire amount the advertiser paid for the campaign. Adding this to the hypothetical $206,000 of revenue earned from sales means that the ROMI is 3.9 times.

I may be a ripe heretical candidate to be barbecued at the stake by my more conservative direct marketing colleagues, but I’ve come to the conclusion that communications which enhance brand equity should be accounted for as such, and that this value must be part of and added to the data-driven marketing equation.

Learn even more about the convergence of technology and branded content at the FUSE Enterprise summit. Artificial intelligence and personalization will be featured among many other techniques and technologies.

The Power of Interstitials … Are You Using Them?

Whether your goal is cross-selling or lead generation, interstitials are a great way to get your website visitors’ attention and take action. According to adspeed.com, an interstitial ad is a full-page ad that appears before (on top of) the actual webpage. This illustration is a sample. Your webmaster or Web programmer can easily put this in place via an html script. In a nutshell, it’s an ad in the front/center of the screen (some sites even keep the ad in place if you scroll up or down, which I find annoying).

Whether your goal is cross-selling or lead generation, interstitials are a great way to get your website visitors’ attention and take action.

According to adspeed.com, an interstitial ad is a full-page ad that appears before (on top of) the actual webpage.

This illustration is a sample.

Your webmaster or Web programmer can easily put this in place via an html script. In a nutshell, it’s an ad in the front/center of the screen (some sites even keep the ad in place if you scroll up or down, which I find annoying).

Typically, interstitials don’t get blocked, like pop-up ads, by many websites or search engines. (For example, Google AdWords won’t approve a PPC campaign if the redirect URL goes to a website that has pop-up ads).

An interstitial can feature various offers for lead generation (email collection) or sales (selling a product). It could be alerting the audience of a special offer, new product, poll or more.

Most interstitials are visually attractive, with strong promotional copy, calls to action and eye-catching graphics. Then the background of the ad is greyed-out, where you can still see the website behind the ad, but it’s faded—so your focus is on the main offer. There’s also a clear and obvious way to close the interstitial. No tricks or hard-to-find “close x” buttons.

Interstitials are ideal if you don’t have room for banner or text ads on your website or you don’t want to affect the current layout of you home page or website theme.

Not all interstitials, however, are created equal. I’ve seen some implemented that are not only unattractive, but are also ineffective in copy and execution. So think about the traffic and audience that may be coming to your website and the offer that may be most attractive to them.

If you drive a lot of traffic to your site but haven’t been able to monetize the traffic or harness the emails, an interstitial is an effective way to capture email addresses and put those names into your sales funnel for future auto-responder series and upsell efforts.

The beauty of an interstitial is that you can make your actual ad space as big or small as you need.

Whatever your offer or need … an interstitial can deliver. And best of all, you don’t have to wonder if your website visitors saw the ad or not. It’s no doubt they did. You are just giving them the option to act on it OR not.

Moving Upstream on Cart Abandonment

After speaking at a conference on the topic of email automation for your online store, I was approached by more than a dozen people with the same question: “If someone abandons their cart, how can the store stay in touch with the shopper?” It’s impossible to contact anonymous visitors—their anonymity means you’ve not yet collected their email addresses and thus you have no way to reach them

After speaking at the WooCommerce Conference on the topic of email automation for your online store, I was approached by more than a dozen people with the same question: If someone abandons their cart, how can the store stay in touch with the shopper?

It’s impossible to contact anonymous visitors—their anonymity means you’ve not yet collected their email addresses and thus you have no way to reach them. Perhaps they were just price shopping or researching. Perhaps they were distracted before completing their purchase. Perhaps they didn’t like your site’s shopping cart experience. Whatever the reason, they’ve slipped away, and you’ve been left with the promise of a sale that’s not yet complete.

According to Business Insider, this is the case with 68 percent of shoppers—those who leave their carts before checking out—and about $4 billion in abandoned carts the world over. The good news is they also estimate up to 62 percent or $2.52 billion is recoverable with automated marketing. Does that mean you simply need to give up hope of reaching those wallets and focus on the known visitors? Well, no. It simply means you need to develop a strategy for teasing away those email addresses. It means you need to move your request upstream.

There are myriad possible tactics of this strategy, but the path you choose depends upon your business, your product and the tools you have for implementing your ideas. No matter which path you choose, be prepared to A/B test like a madwoman until you’ve found the top three triggers and use all three. Don’t settle for just one approach. Meet your potential customers with the sign-up tool of choice—which means giving them options. Let’s look at some ideas. I’m going to call these interrupters, but I’m pretty sure I’ve borrowed the phrase from someone brilliant:

Interrupters can be any sort of dialogue, window, link or button interrupting the user’s shopping excursion and redirecting them to a simple (usually pop-up) form collecting only their email addresses, for instance:

  • Interrupt the product-browsing session with a tool enabling them to upload a photo of a room they are decorating in which they can drag and drop their selected item into place. It doesn’t have to be a perfect UX, just provide them with a rough idea of how the Egyptian vase they added to their cart might look next to their lime-green sofa.
  • After the first product has been added to the cart, interrupt with a message such as, “Wow! That’s a great find! We can save it in your cart for as long as you like. Let’s give your cart a name. Please type your email address.” You could extend this process with a dialogue after each product, displaying different messaging or, go for funny, and provide humorous commentary. Be sure to also provide a checkbox for prevent the message from displaying again.
  • Provide an online calculator allowing them to figure out how much of a product to buy. Let them use the calculator and then offer to save their work using just their email address. You could also offer to email their calculations or illustrations to the address they provide. We used this approach on our personal profiler – they can use the profiler online all day long, but if they would like to print their profiles, we will send the PDFs to their inbox.
  • Offer to send them links to download the installation instructions, case study, or watch a video.
  • Offer to save their cart when they click the browser’s close button.

Be sure you are interrupting your shopper with something of value. Popping up a subscriber window might be a bit annoying on its own, but a subscriber window with an offer of free shipping on the order they are building is going to win some favor.

According to a CouponCabin.com survey, 73 percent of U.S. adults are more likely to shop online where free shipping is offered, and, further, 93 percent of online shoppers said they would spend more if free shipping were offered.

Resist the temptation to interrupt visitors with a long form, or even your regular check out form, or you risk adding to your abandonment rate. Also, be sure to pass the information you collect directly into their account page—don’t make them provide you with their email address again if they continue the checkout process.

Interrupters can easily become annoying, so go slowly and don’t get greedy. You want to be able to capture as many anonymous visitors as possible, but there’s also great potential to drive shoppers away at the same time. It’s a delicate balance, but well worth the effort. Remember, there’s $4 billion dollars out there, and some of that can be yours.