Data Quality Remains Top Priority

We've seen too many CRM or marketing database initiatives fail simply because the data input to the system was full of duplicate or dated data. And, sadly, we've seen users judge the effectiveness of the database system solely based on the customer data they see, completely ignoring the other functions and system capabilities.

If that first impression is bad, you know that they'll never trust, nor use the new technology. What a waste of money...

That's why we're firm believers in using all of the tools and processes available BEFORE you import any data into a new database. And, this article from B2B Online highlights that point.

"Executing a fine-tuned data-quality strategy is essential in today's multichannel environment. As costs climb across the board due to a weakened economy, having accurate data becomes even more important to ensure targeted marketing messages actually reach customers and prospects."

Yep, actually reaching the people you're trying to target is, indeed, important...

The good news is that the marketplace is starting to realize the importance of data quality.

"Refining customer data quality and access to customer data have emerged as two of the top marketing investment priorities of b-to-b CMOs this year. Half of b-to-b marketers plan to put more resources against creating marketing databases, cleaning up customer data, improving sales force automation and CRM integration, according to Forrester Research in its “B2B CMO Investment Priorities for 2008” report."

This is even better news to the direct marketers (like RRW!) who understand the available data quality tools out there, and who have used the tools for years. From postal processes like NCOA to sophisticated customer data integration techniques that take advantage of large databases retaining multiple name/address versions, there are proven techniques that you can employ to get your data updated, deduped and as clean as possible.

Let us know if you'd like the white paper that we've developed around using these techniques. Just email us at info@rrwconsulting.com and we'll send it right over. It not only gives an exhaustive overview of the tools, but also provides some "Do's and Don'ts" based on our practical (ouch) experiences working with the various processes and vendors in the industry.

Case Study Monday: Increasing Enrollment Using Intelligent Direct Marketing

Welcome to Case Study Monday. Today, we're featuring a Marketing Sherpa case study on how an educational institution used a solid direct marketing strategy to increase enrollment in it's online program. This is a great example of how you utilize an analytical approach with a multi-channel strategy to get really excellent results! We hope you enjoy this case study.

Summary
Prospects for your products and services can come from anywhere and show up at almost any time. But how do you get those leads in the first place and keep them “warm” once they’re in the pipeline? See how a school’s marketing team doubled enrollment with a nurturing campaign that included targeted online advertising, search, telemarketing and email.

Challenge
Adult distance learners are a difficult demographic for colleges to attract. It’s not like targeting high school students within a certain radius and knowing that many of them will be interested in you simply because of your location.

Ronald Kennedy faced this dilemma when he became Executive Director, Distance Learning and Graduate Studies, Liberty University, about 2 1/2 years ago. He was charged with increasing the college’s distance learner enrollment, which was about 12,000 students when he took over. At Liberty, adult and distance learners are almost one and the same -- 60% to 70% are 30 to 45 years old.

Adult distance learners also can enroll at almost any time, unlike traditional college students who typically start in the fall. And there’s plenty of competition from colleges like The University of Phoenix, which offers courses to working adults online and in local learning centers nationwide.

“It’s a very competitive field out there going after the adult learner,” says Kennedy.

Campaign
Kennedy and his team devised a strategy that focused heavily on online ads, interactive lead generation and Liberty’s brand identity to attract adult distance learners and keep them interested as prospects.

Here are the seven steps they followed:

Step #1. Analyze the demographics of each degree program
Kennedy and his team first conducted a detailed demographic analysis of each of the college’s more than 35 distance learning degree programs.

They compiled this data by:
o Extracting the student profiles of each degree program
o Breaking down profiles by gender, age, household income, etc.
o Matching the demographics to websites for targeted advertising

“We get a lot of traffic that we can’t effectively source back to any particular channel,” Kennedy says. “That relates directly to our strong brand identity.”

Step #2. Leverage existing brand

Next, they took advantage of the school’s reputation for having one of the oldest distance learning programs. The team also leveraged the college’s conservative faith-based approach to education in their messages to stand out from secular schools offering online courses.

Step #3. Target online ads to matched websites
Kennedy and his team ran banner ads primarily on two types of sites:
o Those that appealed to the demographics of Liberty’s online degree programs
o Those that affiliated with education -- specifically online education

“We’re targeting a student who is potentially going to take classes online, so there’s already an assumption that they live online.”

An example of matching demographics to degree: They advertised the school’s seminary degree program -- with a 95% male demographic -- on sites that appealed to Christian men.

Step #4. Qualify the leads

Prospects who clicked on the banner ads were directed to a landing page with a form containing qualifying questions to weed out those who weren’t a good fit. “On the back end, we do append some information to the lead to try to tell us internally who’s most likely to convert more than others, and we’ll gear our strategy in-house to that,” Kennedy says.

Qualifying these potential students was very important because adult learners are expensive leads to generate and nurture. Adult learners often won’t enroll in an online degree program for up to a year after giving their information to Liberty. This means the team has to spend more money to keep the brand name in front of the lead for extended periods of time and they didn’t want to waste money and internal resources on leads that weren’t going to convert.

Step #5. Invest in matching services

Kennedy and his team also spent some of their marketing budget on a service that matched programs with students to develop more qualified leads. Here’s how that worked:

- The service provider used search engine marketing and an extensive keyword campaign to drive traffic to Liberty’s website.
- Then, they collected the demographic and contact information from the leads and matched them with the most compatible degree program at the university.

“We liked the strategic analysis they were willing to provide on the leads we were getting to help optimize and bring in better quality, as well as analysis they did with SEO and purchasing,” Kennedy says.

Step #6. Create landing page

Higher quality leads were directed to the landing page, which included a description of the university and information about it being ranked No. 3 on the Online Education Database’s 2008 list of online universities in the United States.

The landing page asked visitors to enter:
o Name
o Address
o Email
o Phone number
o Good time to call
o Degree program of interest

“The easier you make that form, the more leads you’re going to get,” Kennedy says.

As soon as visitors submitted their information, they received an immediate reply email. They also received a telephone call within 15 minutes. This was an extremely important part of the nurturing strategy because “in this business speed wins,” Kennedy says.

That nurturing strategy consisted of three parts:

Part 1. Phone call
Telemarketing calls were the No. 1 method Kennedy and his team used to follow up with qualified leads.

Part 2. Email
Email was second -- and the longest lasting of the three strategies because it was the cheapest.

The emails contained:
o A link back to the school’s distance learning website
o “Real life” situations in the messaging
o Emphasis on the ultimate goal
o Call to action

Instead of just telling adult learners how convenient online classes were, the team described how inconvenient it was to find a baby sitter after work or to fight traffic to take classes on a campus. They juxtaposed that scenario with coming home, making dinner and then working on the computer for a couple of hours to take classes.

The team also invited leads to call or email the university for more information or to chat live with an admissions counselor or academic adviser online from the school’s distance learning site.

Part 3. Direct mail
Direct mail was No. 3. “We try to hit them with all the different communication styles that are available to keep our name and brand in front of them vs. our competitors,” says Kennedy.

Step #7. Test, test, test
The team analyzed traffic patterns and continually looked for more effective keywords. They also conducted split tests on creative, including the online ads and landing pages.

Testing was especially important when determining how many qualifying questions they should ask a lead, Kennedy says. The team did split tests between longer, more detailed forms vs. shorter forms.


Results
Enrollment in Liberty’s distance learning program shows the campaign’s overall impact: in 2 1/2 years, Kennedy and his team have seen a 108% increase to more than 25,000 students.

Other results:
o 3% to 5% clickthrough rate on banner ads with targeted audiences
o 0.5% to 1% clickthrough rate on paid search ads
o 2% to 5% clickthrough rate on trade name search
o Higher clickthrough rates on Christian sites vs. secular sites

“I think through doing more target marketing and more demographic type research has really paid off in terms of what we’re seeing at the back end as far as enrollments,” Kennedy says.

As for how many questions they should ask a lead, the shorter forms proved to be more successful, Kennedy says. But it was a balancing act. “We’re constantly honing in on how many questions we’re asking vs. how many we’re going to have to qualify.”

Marketing Links

Here are some of the interesting articles or blog posts we followed this week:

This experiment has got me intrigued! Social Networking Dominator is promising to "use social marketing and social bookmarking to launch a brand new site into the web traffic stratosphere. I’ll be doing this with high speed SEO, social networking, social bookmarking & video marketing." Their goal is make their website profitable within days. You can follow their progress at socialdominator.com. I'll be checking in frequently to see what tricks they have up their sleeves.

For those of you who like free things (and who doesn't, right?), you might want to sign up here and ask for Nicky Jameson's 19 New Rules of Social Media Copywriting. I received the tips and learned some things. If you're wondering how to customize your style to maximize your social marketing efforts, this free report might help.

From PR Weekly, check out this article titled: Executives join social media conversation.
It talks about how executives from a wide variety of industries (from the US Army to Mastercard) are joining in on the conversations, as a way to build credibility and simply because it's now almost a new business requirement. We couldn't agree more.

Although it's a bit like preaching to the choir, I couldn't resist sharing this post from Marketing Prof's Daily Fix blog. Titled, "Are Marketing and Mathematics Getting Married?", it talks about the growing importance of analytics in shaping marketing strategies and direction. Yep, we see that, too :)

Have a great weekend!

Some Thoughts on Social Media

By now, you know that we love social media. After all, we attend Social Media tradeshows, we author not one, not two, but three blogs and we are avid commenters and Facebook contributors (particularly on our favorite Facebook page, "What I Saw at the Direct Marketing Revolution").

We've even taken the additional step of proposing to be blog authors for some of our very favorite clients. Hey, we think we're pretty good at it -- why not help our customers be good at it, too?

So, today when I came across two really interesting and insightful articles from a couple of fellow bloggers about what Social Media is and isn't, you can imagine that I thought it was definitely worth a blog post to share these musings with our favorite readers.

First, I read Marc Meyer's post on his blog "Emerson Direct Marketing Observations." Marc discusses 11 things that Social Media is Not. As you can probably guess from the title, Marc outlines his thoughts on what social media isn't . . . all in an effort to gain a clearer definition of what it is. He brings up some great points . . . it's not static -- it's ever-changing; it's not calm -- it disrupts and is meant to disrupt; it's not many-to-many and not necessarily one-to-one -- but it can be better than that -- one-to-one realtime.

Finally, Marc ends on the point that Social Media is not the Final Frontier of Marketing -- giving full credit to a post by Brian Solis of Futureworks. In Brian's post, he discusses some of the thoughts of Pierre Far, who had originally discussed this point in an interview on the Techipedia blog (phew!).

Brian succinctly states:

If anything Social Media, as it exists today, has simply created a more efficient platform which amplified and organized people’s voices as well as democratized content, and in doing so, collectively built a foundation for a new level influence between companies, traditional media, influencers, and people in general.

Social Media doesn’t necessarily replace traditional marketing. Everything is concentric. Everything should work together.

Brav-o! This view is very much in line with our view that Social Media is yet another tool in the overall marketing toolkit. If you integrate it into what you are doing today now, you will be well ahead of your competitors over the long-run. Why? Because despite all of the hoo-haa over Social Media, it is still not widely used or accepted by the many . . . and those few who see this and use it now will definitely have the upper hand.

The reason for this is that it is becoming increasingly apparent that consumers and businesses alike want to be involved in the conversation. It isn't just the younger generations -- it's all generations. There is a simple reason for this . . . people are sick of being marketed at. Businesses and consumers alike want to be involved in what messages are sent to them and the overall process of deciding what products and services to purchase.

While not the final frontier of marketing, social media is definitely the newest kid on the block -- and the channel that will separate companies from one another when integrated into the marketing strategy and executed really well.

Take a look at these posts -- both offer really compelling insights and will get you thinking about your own social media strategy. And, if you have any other ideas as to what social media is and isn't, shoot us a comment.

Two Thoughts on Generational Marketing

It's so very important (and quite interesting, too) to understand how generational attributes need to be considered when marketers are developing campaigns. If your goal is to make sure that your message resonates with your target audience (and let's face it, that's a key goal for any direct marketing program), then you absolutely cannot ignore generational attributes.

I thought I would share two perspectives on two different generations.

The first article is from Precision Marketing: Marketing messages ‘irrelevant’ for over 50s. It discusses how so many marketers are missing the boat when it comes to targeting the mature market.

"The mature market is being neglected and misrepresented by marketers, with over 60 per cent of the over 50s believing that advertising aimed at them presents them as infirm or immobile."

Contrary to many common beliefs, the research also showed that online shopping is the preferred channel for Seniors.

So, if your market is an older one, you absolutely cannot ignore interactive and social marketing. You also need to remember that this group considers themselves vital and full of life--not infirm. I guess 50s are the new 30s!

And, then from the opposite side of the scale, this Q&A from USA Today provides some insight on how to market to Gen X and Gen Y'ers (more commonly known as Millenials). The title says it all: Avoid hard sell when marketing to younger generations.

If your market includes people born between 1965 and 1994 (14 to 43-year-olds), you need to understand that this is a cynical group that needs to be educated (they love blogs). You need to prove that you understand what you're doing and be authentic when you do it. Nothing can smell like hype or 'sales'.

"The essential thing then to understand about selling to the new generation of younger adults is that they are Web-savvy, blog-friendly, and, not only do they see through the spin, it turns them off. Your pitch to them has to take all into account."

Hopefully this insight into two huge generational groups will provide some insight as you develop offers, creative and messages.

Mobile Marketing: How Will it Grow?

Over the past five years or so, there's been more and more discussion about integrating mobile marketing into the direct marketing mix. You can find almost equal opinions on either side of the equation. Some feel that marketing to wireless phones won't work because the content isn't quite there yet, and consumers will feel that it is too much of a hassle to integrate mobile into their lives. Others feel that, as marketers, you're definitely missing the boat if you aren't actively engaged in strategically placing mobile marketing as an integral channel in your multi-channel marketing plan.

DM News just posted an article with two very different viewpoints on this subject. Entitled "Should Cell Ads Cost more than Web Ads," they pit Roger Woods, SVP and GM of the Americas at Amobee Media Systems against Robert Arena, VP and Interactive Director at Carton Donofrio Partners. Both gentlemen bring up some very interesting points in this very topical debate.

Woods argument is that "when visual real estate is severely limited and highly desired, demand for it among media buyers is naturally very high. It's why mobile ad inventory will com­mand a premium price." Woods also believes that wireless carriers will maintain a significant advantage for at least the short-term due to the fact that they are the ones that have virtually unlimited access to all of those wireless screens. Finally, he reminds us that "the fundamental elements of reach, precision and supply are aligned for the wireless carrier to charge a premium price in any scenario" -- no matter how mobile marketing continues to evolve.

On the other side of the equation, Arena argues that mobile marketing is far from commanding the premium pricing of traditional display advertising. He compares lower mobile advertising revenues (at $871 million) to higher internet advertising revenues (at $24 billion), even though more people have access to mobile phones than they do a computer and the internet. According to Arena, this is due to the fact that "metered pricing, slow networks and a frustrating user experience have dissuaded consumers from integrating mobile into their daily lives." In Arena's opinion, while a viable channel to keep our eyes on, mobile marketing still has a long way to go before it is adopted as a widely-used direct marketing channel.

So, here are two very different opinions on a direct marketing channel that we've been talking about for some time -- and is continuing to gain in importance. I'm thinking that mobile marketing will, in fact, command a premium price as the technology becomes more "consumer- friendly." There are many new, forward-thinking firms out there who are creating the technology to enable interactive media campaigns via the wireless instrument (take a look at CommerceTel's website). So, the technology is here . . . therefore, consumer-friendly is not that far off.

Consider the fact that the largest Generation alive today -- the Millenial Generation (those 8-22 year olds) absolutely depends upon their wireless phone, and you can start to believe that mobile marketing will continue to grow in importance as a marketing channel. This Generation embraces the wireless phone so much so that it has become almost an appendage to their bodies -- they literally depend on their phones to keep them connected. Millenials are now entering the workforce and will bring their ideas/needs to those companies that they work for. They may become (or perhaps have become) the springboard that will launch mobile marketing into the same stratosphere as internet advertising as they demand to have content delivered to them on their all-time favorite electronic device.

We'd love to hear your opinions as this debate rages on!

Case Study: Database Builds Loyalty for Casino

Today's direct marketing case study comes to us from Equifax. Since we enjoy reading about how technology (in this case a marketing database) impacts overall performance, we thought we'd share. For those who are grappling with the decision as to whether to build your marketing database in-house, or use a service bureau, you should continue reading.

Client Profile
A leading gaming and entertainment company, operating riverboat and hotel casino complexes across the U.S.

Challenge
To increase customer loyalty and drive repeat visits to their casinos, the client targeted direct marketing programs to their existing customers. They were using their operational database and very basic tools to generate direct marketing programs. To enhance campaign effectiveness, they wanted to conduct more testing and better target their direct mail and e-mail campaigns, but did not have the infrastructure to address the challenge.

Solution
The client engaged Equifax to conduct a requirements and feasibility study. Their goal was to build an in-house database solution, versus a service provider solution. The feasibility study was a collaborative effort with the client's IT. Equifax built a comprehensive test database parallel to the client's current system--with the added challenge of a changing operations system.

Equifax delivered a database solution that exceeded the client's expectations. The project that began with a feasibility study evolved into a comprehensive service that provides a "single view" of the customer across several properties. The service includes daily updates of customer, transactional, demographic, hotel and promotion history data into an open relational database utilizing best-of-breed business intelligence and campaign management tools. The solution supports daily, trigger-based, multi-channel campaign executions, enabling more convenient, relevant offers to patrons. The client's solution has expanded to include data mining and analysis, using predictive analytics and modeling tools and techniques to enrich their direct and e-mail marketing strategies.

Results
Equifax delivered a powerful marketing database solution, on-time and on-budget. The solution provides direct marketing expertise and support comparable to a more costly, yet less effective in-house solution. In addition, the database features a Quality Control element that ensures the clients meets industry regulatory requirements. The flexible, robust infrastructure facilitates a more "enabling environment." As a result, the client is experiencing greater success in marketing across all segments of the business.

• Average spend per customer increased 20%. More timely and better matched offers to patrons--with emphasis on event-triggered opportunities--has increased patron's visits and play, resulting in a more satisfied customer base and better ROI for the client.
• Dramatically shortened timelines enable the client to deliver more frequent mailings to patrons. Direct mail campaigns that used to take two days per property to execute now take two to three days for all six properties.
• Through increased efficiency, the client can quickly, aggressively pursue multiple marketing tactics simultaneously. In addition, the marketing team can "put good direct marketing strategies to work."
• Improved, timely business reporting allows the client to apply key learning for the implementation of more effective marketing strategies.

Equifax has proven to be a valuable resource in this client's quest to optimize customer relationships. As a database provider, Equifax has helped the client learn more about their customers in order to increase their visits, build loyalty and, ultimately, boost revenue.