02 - direct-mail-email-sms-analytics.pdf - Customer Events...

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Prospects Early Buyers Core Customers Defectors Forced Churn Acquisition Campaigns Acquisition Campaign Response Inquiry Sales and Support Interactions Activation Initial Purchase Usage Cross-sell Campaigns Upsell Campaigns Forced Cancellation No more Usage Explicit Cancellation Winback Campaigns Collection Efforts Customer Events and Marketing Interventions Analytics for Direct Mail/Email/SMS 1 Stage I of the Customer Life Cycle: Customer Acquisition Classifying Customer Acquisition Campaigns: Inbound versus Outbound The customer has a latent unexpressed (or even non-existent) interest, and the firm’s communications awakens (or creates) the interest and the customer initiates the purchase The customer explicitly signals interest in purchasing and the firm responds effectively Payment Structure of Contracts Direct mail/email/SMS: Pay per lead, and leads contacted, but not for response Paid search engine marketing and some display advertising: No pay for exposure, only for response Most display advertising: pay per exposure, no pay for response Analytics for Direct Mail/Email/SMS 2
Inbound versus Outbound Search marketing functions like inbound targeting and is intent-based targeting. But intent-based targeting is not suitable for all customers or categories, and reaches only a limited set of potential customers. For broader reach, the firm also needs outbound targeting, and this often takes the form of customer-background-based targeting. This targeting can be based on: Demographics, location Life style, Activities, Interests Behaviors related to purchasing and media selection Some commonly used media for customer-background-based targeting: Online Display and Video Advertising: site-based targeting, contextual targeting, behavioral targeting Audience-focused mass media Direct Mail/Email/SMS For narrow appeal products, direct mail has relatively high ROI. Analytics for Direct Mail/Email/SMS 3 Outbound Customer Acquisition How to do Outbound Customer Acquisition: Create Value Create value-communicating content Reach customers who seek that value, with that content Intuit and Brainstorm Scan and Refine Analytics for Direct Mail/Email/SMS 4
Categories of Value: Functional value Psychological Value Monetary Value Sources of Value: Value from products: core/enabling/augmented Created by: product innovation, product-service bundling, branding, product synergies Value from service Created by: improving service quality, service guarantees, service-level agreements, service recovery programs Value from people Value from tangible facilities, equipment, materials Value from customer communication Value from channels Analytics for Direct Mail/Email/SMS 5 Create value-communicating content Recognize that: Customers go through different stages of cognitive processing and decision-making Along the different stages, customers are differently sensitive to the various kinds of messaging and delivery

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