Multichannel Marketing Class May 26th: Multichannel Retailing

We covered multichannel retailing using a webinar case study from Exact Target on Johnston and Murphy. Johnston and Murphy is an upscale shoe retailer, primarily men's shoes, with three fullfillment channels, store, catalog and internet (I am assuming that they also have a dial-in call center for fulfillment but it was not mentioned). J&M contacts its customers via direct mail and email, in-store promotions and its web site. It did not seem that the company used brand advertising. I would think that the economics of its business is such that direct communication is more cost effective.

The company has 700,000 customers on its database and knows who they are and can contact them directly so direct and interactive marketing make sense. J&M started by segmenting its current business into eight key buying segments with different characteristics. By capturing 60% of customer email addresses at point of purchase it can then use purchase data to determine which segment a customer belongs in and tailor offers to them. All interaction is captured in the customer database; the company uses match back on address, phone number, email, etc. to put all possible information in one place. Three emails are sent to new customers within 40 days and current customers also get a three email cycle, offer, discount 1, discount 2. "Lost" customers are those who have not ordered in two years and they also receive email treatment.

The program has been successful for J&M. The email program is set up and then adjusted every six months or so so the communiation is automated. Data collected from transactions is modelled to determine the best combination of communications to elicit the maximum response. Students in class presentations talked about other retailers doing the same type of marketing effort by building a database, capturing transactions, segmenting and targeting. Student also reinforced the research mentioned in class that multichannel shoppers are typically more profitable shoppers.

This webinar is a good transition to the next two sections of our class. Email and Direct Mail are channels that are 'push' channels and are acquisition oriented. We use military language like 'target' and 'capture' to describe our efforts and the marketer is still somewhat in control. As we began to disucss last night, with the internet as a channel, control shifts to the consumer and we will hear more about that next week with our discussions on internet and social media. Next week we will also learn more about data analytics, which will aid understanding of the modelling efforts J&Q mentioned.

Multichannel Marketing Class May 20th: Multiple and Electronic Media

There were a number of alternative ways that Newport News could use to obtain information about customers who had recieved a catalog but then not put in a key code when they entered their order or those who had just come in through the internet. We discussed asking a brief survey after the order (making sure that the survey did not increase shopping card abandonment) as well as using a 'matchback' process. Matchback involves sending purchase transaction history and catalog mailing data to a company that can essentially do a mail/merge and identify orders that came from those who had recently received a catalog; the firm sends the file back flagging potential matches and Newport News could use this file then to calculate ROI on its catalog mailings.

We had a presentation from Mike Malley from Con Agra on the multichannel media launch that was used to introduce the new Healthy Choice shelf stable meals. We could see the integration between the internet and more traditional media such as PR, Advertising and in-store promotion. Mike talked about using an email blast to loyal, opt-in healthy choice users, which was a good tie-in with out discussions on email marketing. We discussed that the CAN-SPAM act requires a valid reply to address, an opt-out provision, a street address and that the subject line be clearly labelled as promotional. Companies like Exact Target make it easy to be CAN-SPAM compliant. We evaluated some email offers to see if they were CAN-SPAM compliant and also evaluated the offer and the design based on the principles we had learned the prior evening.

We also talked about other electronic media channels, such as television and radio, which still have a place in today's media mix. Radio listeners don't switch channels as much but it is hard to use radio for direct response because people are often driving and can't always write down a number or dial the phone. Television advertising reinforces the brand message and Direct TV is a less expensive way of eliciting response, and is trackable and measurable, which we direct and interactive marketers really like. Health and fitness and products to make people look good are good targets for infomercials. Telphone is interesting because it can be both a media or promotional channel as well as a response channel. Inbound calling and B2B outbound are currently popular uses of the telephone by marketers because of the restrictions of the Do-Not-Call legislation.

Multichannel Marketing Class May 19: Direct Mail and Print

This class on direct mail offers is always one of my favorites to teach. It is intriguing to go over different direct mail offers and see why and how they were constructed the way they were. An offer should always ask for a specific action, have a specific deadline and tell me what I am going to get if I respond by that deadline. As direct marketers we are direct RESPONSE markters. We use a database to identify and track our customers, communicate with them in a way that asks for a specific action and we measure the results so we can expand the communications program if it is successful. We looked at two direct mailers that I had received, one from Travellers insurance which made an offer to lower my costs for auto insurance. We thought the package was reasonable (it had a letter with an offer restated several times, a P.S., a lift slip and a response card) but maybe not personalized enough because it did not express how much I could personally save. Our guest Cyndi Greenglass from Diamond Marketing Solutions reinforced that we use "you" language in persuasive communication because it does involve the readers and get them closer to taking the desired action. The mailing from Mazda was attractive but the offer was buried and we were given a choice, which can be a death knell for offers. People start thinking and then they stop buying. Both our guests talked about the importance of mathematics in modelling. Michelle from Abbott Labs demonstrated how Abbott isolates the results of various media through response modelling. Cyndi Greenglass from Diamond talked about testing principles for direct mailings, including establishing a control and testing one variable at a time to improve on the results of the control. She gave an example from Pitney Bowes where they kept testing to try to improve the control package. I asked students at the end to think about the problem in the Newport News case in the text. With 40% of orders coming from the web, Newport News was having a hard time isolating the effects of their marketing because they could not use the 'keycodes' associated with catalogues to track response. What should Newport News do to handle this problem?

Multichannel Marketing Class May 18 Intro

The first night we covered what it means to be a direct versus interactive marketer and all the different channels that marketers are faced with managing today. We made the distinction between a media channel and a fulfillment or distribution channel. There are many media channels today and some of them are quite new, such as social media, facebook, linkedin, twitter, etc. One trend is that consumers are in charge and want to define the brand, such as the web site created by consumers that revolves around Philadelphia Cream Cheese. Who knew consumers were so passionate about the brands they use? Marketers are dealing with how to integrate these new media channels into their plans. At the same time it is becoming more difficult to isolate the effects of one media channel veruss another on purchase behavior. Online influenced retail sales are growing rapidly and consumers will go online to hear more about informaion they have received in print or in a radio or TV commercial. Our guest speaker Michelle Blechman from Abbott Labs said how difficult it is to isolate the effects of various media in the pharmeceutical industry and that top executives have to be educated; even if the highest ROI is from the web, eliminating TV advertising won't necessarily increase ROI because without the TV spend, the brand awareness dips and people stop going to the web. Michelle really stressed the importance of integrated marketing communications. She also reinforced what I said about the pressure on marketers to measure and report ROI and justify their existence. I was recently interviewed on social media usage in marketing. Here is a link to that article.
http://www.cob.niu.edu/highlights/NIU_CHI_0509.pdf

Experienced Online Job Seekers are Available!

We have a great group of graduating seniors this year, versed in Search Engine and Email Marketing, Web Site Design and knowlegeable about trends in Social Media. These talented students learn Exact Target as an email marketing tool, are currently running live Google Adwords Campaigns, understand SPSS and how to analyze web traffic, are running a wiki and blogging daily. How many marketers with multiple years of experience have the same skill set that we are teaching in our courses here at Northern Illinois University? So how come we see employers asking for several years of experience in this area when we look at job descriptions? I would challenge employers that few marketers today have as much real world experience in interactive and new media as the graduates from our Interactive Marketing Area of Study. If you do get a resume from one of our graduates, at least take a few minutes to interview them and find out the skils and the talents that they do have. In the last recession, companies cut back in hiring new grads and then were surprised several years later that people with three to five years of experience were not available. I know that times are tough, but the companies who take a chance on a new grad with updated skills will not only invest in their future but reap current benefits. We have grads that have taken jobs in SEO, for example, and are able to contribute on day one. Check us out at http://www.interactivemarketing.niu.edu!

Exploding networks

We are really started to exploit the power of networks for connections, learning, staying in contact. I wonder how much the down economy has contributed to this activity? I notice that Twitter is now in the top three of social networks, up from twenty-three just a few short months ago. It seems when times are tough people band together, particularly to find jobs or new sales opportunities. We will be creating a group on linkedin for our grads in the interactive program to touch base with folks in the greater Chicago Community. The guest speakers in my classes keep emphasizing the power of networking, as well as knowing your strengths and being able to describe the value you can add to a company in a thirty second/sixty second format. I always tell students to follow their passion; we had good news that a former student found a job working in radio, where it turns out they are using a lot of interactive applications so that customers interaface with the station online through a loyalty program which increases the amount of time spent listening (http://www.enticent.com/.) I encouraged this student to follow his passion and that if he wanted to work in radio he should go for it. It is better to be passionate about something when you have to go to work everyday. There is a new group on linkedin for job seekers and Melissa Giovagnoli invites job seekers to share the following: 1)your top three strengths, 2) your top four values, 3) the type of position you are looking for 4) the types of companies or a list of the top three companies you are looking to get into and 5) connections with two companies you have relationships with. http://www.networldingblog.com/ is the link to this blog.

Recent Symposium Highlights Job Search Advice for Undergrads

I attended on Friday the Okner Symposium with my students which is an update on direct and interactive marketing and also hints on the job search. Dr. Zahay has been trying to work with the students so that they know how to find a job in a tough market and it was great to see that the speakers reinterated a lot of this advice. The most important thing, whether the market for new grads is up or down, is to find out what you are interested in and can be passionate about and go for it. Make sure that you can talk about yourself in a 30 second or 60 second promotional if someone asks you what you are all about. Make statements in the promotional and on job interviews benefits-oriented. In other words, show the company what you can do for them. In this kind of market, you need to be aggressive, so start creating a list of companies for whom you would like to work. Join networking groups and try to find out who you know is at these companies. Get a contact first and call and then ask if you can send a resume. Students today rely too much online but the good jobs are not even hitting the online boards because there are so many applicants. If you are persistent and have something to contribute, as well as good underlying skills in math, writing, and presentations, you will find a job.

Google Online Marketing Challenge

My students and I are starting the Google Adwords online marketing challenge next week. We will spend a month preparing and then three weeks running our campaign. We will compete internationally and hope to come up withe the winning team. First prize is a trip to California for the team and the professor! SEO continues to be an important part of the marketing mix and I am thrilled that my students will have hands on experience in the area. We are looking for small companies that have not previously used PAID search (as opposed to natural or organic search). The project is to optimize a paid search campaign for the company using a $200 budget from Google. Wish us luck!

Here is one student's experience in internet marketing

I am going to share with you a student's blog so that you can understand what students learn in our internet course, Marketing 370, here at NIU.

http://blondeambition2009.blogspot.com/search?updated-min=2008-01-01T00%3A00%3A00-08%3A00&updated-max=2009-01-01T00%3A00%3A00-08%3A00&max-results=22

B2B Online lead generation/Offline follow up

I attended a presentation yesterday with ten of my undergraduate internet marketing students on B2B online lead generation with the Chicago Association of Direct Marketing. One of the presenters was Robert Lesser, the President of Direct Impact Marketing in Toronto. I found it interesting that Chicago is in the top tier of the "Blog Belt," and not surprising that Chicago is central to an expanding network of those interesting in internet marketing. Much of Chicago's business community is focusing on direct and internet marketing. The top sources of online leads are search and email, with blogs and webinars next. One of the most interesting things Lesser mentioned was the use of telequalification of online leads. Salespeople always complain that leads are not qualified and marketing, by using a telemarketing force to contact leads that come online, can 'nurture' that lead until it becomes a true prospect (according to this presentatino it takes 18 touches to nurture a lead to create a prospect) to turn over to the sales force. In my internet marketing class I teach online/offline integration and this presentation just demonstrated the continued importance of that principle. Good news for those in the call center business!