Last month I had the privilege of presenting at the Online Retailer Conference and Ecommerce Expo in Sydney. The conference is regarded as a premier event for online retailers in Australia and New Zealand and covers all things digital and retail.
My presentation focused on the things that we see as differentiating factors in businesses that succeed and thrive in the New School Marketing environment and what sorts of opportunities this environment presents. The four areas I highlighted in the presentation were as follows:
1) See the world through a relationship-first lens – Forrester refers to this as the ‘age of the customer.’ The time where marketers can afford to focus the bulk of their energies on winning new customers is quickly coming to an end. New School Marketers realize that the richest source of revenue is in the customers they already have. New School Marketers are savvy and implement strategies and technologies that leverage their existing customer base.
2) Move from manual campaigns to automated interactions – In order to successfully reach consumers through a range of channels, brands need to implement systems and processes that automate their communications. By selecting the right content and deploying it at the right time, brands can send highly-relevant, triggered messages which are based on the unique behaviors of their target audience.
3) Display is now a relationship channel – Display used to be all about driving a sale from a new customer. But today, platforms exist where you can use all the data you’ve collected about customers such as purchase history, products they’ve browsed on your website, or their category interests, to target your customers on third-party sites and give them a message targeted especially for them such as a customized discount or special offer.
4) The real value of social is in the data – Big data is on the tips of everyone’s tongues right now. Data is all well and good, but you need to put that data into action. By leveraging individual data from social networks, brands can really accelerate the value and return on investment of their marketing programs.
During the presentation I showed some incredible examples. Here are two of my favorites:
Kmart Tyre and Auto: A national chain of auto service and tyre outlets, has built out some parts of its customer lifecycle with automated and targeted communications. Tactics like reminding customers their car is due for a service or a registration inspection have served to strengthen customer relationships and in-turn, increase loyalty.
These relationship or lifecycle programs are generating 7x RPE and lifecycle programs overall are generating 3x revenue when compared with more traditional “batch & blast” broadcast email campaigns.
Build.com: Build.com is a US based online home improvement retailer mapped out the lifecycle journey of new customers and identified two key opportunities – a ‘Welcome Program’ and a ‘Cart Abandonment’ Program.
These were then deployed as automated programs by leveraging data directly from web forms and behavioral data in its analytics platform.
These programs have become an overwhelming success.
The Welcome Program saw a 2,511% increase in ROI and a 54 fold increase in average revenue per email and The Cart Abandonment program, a 4,605% increase in ROI and a 99 times average revenue increase per email
It goes without saying that the marketing industry is experiencing a rapid shift, presenting both a challenge and an opportunity. It’s a truly exciting time to be involved but to remain competitive in the digital age, marketers need to embrace the New School way of marketing.
Want to learn more? Register for the New School Marketing Tour, which is taking place in Sydney, Melbourne, Chicago, Boston, NYC, Dallas and Seattle.