Digital Solid: Marketing Technology ROI

In sales there is a belief that each objection is an opportunity. Each “no” you hear is simply a stepping stone to a sale. This attitude helps salespeople continually refine the conceptual packaging of their wares. If the objection is “I don’t have room for it in my house,” this is an opportunity for the salesperson to stress how the product packs flat, or serves a second use that helps it earn its keep.

Now consider the unsubscribe action in an opt-in email series. Melinda Krueger, MediaPost columnist and email expert, recounts a recent In-Box Insiders discussion about how approaching “unsubs” needs to be more like approaching any other type of objection (registration required for MediaPost). Ultimately it’s an opportunity for a more satisfied subscriber.

Several aspects of your unsub process should be examined, Krueger advises. Of her list, two provide a real opportunity for negotiation. These are chances for departing subscribers to come back to the fold by refining how they receive the emails:

Content Preferences — Give subscribers the options to indicate their preferences to improve relevance. These can either be positive “I am interested in silent sports” or negative “I am not interested in articles on camping.”

Frequency Preferences — Allow subscribers to reduce the volume of communication: “Send me email only once per week/month/quarter/year” (depending on your sending frequency). According to Stephanie, “offering even simple frequency options at the point of unsubscribe helps preserve up to 50% of those ‘exiting’ subscribers.”

Just as in sales, an unsub is an opportunity for a win-win with the customer. And like the classic sales objection, even when the outcome of meeting an unsub isn’t ideal, the chance to learn more about your product is significant. All you need to do is politely refuse to settle for a simple “no.”

Recent discussions about email deliverability sound oddly familiar. Before email become a major marketing channel, Standard Presort Mail (known then as Third Class or Bulk) was the exclusive direct response medium. Mailboxes overflowed with catalogs and sales pitches. Back then this would be the case year-round, not just right now — in the protracted post-Halloween holiday season. It was inevitable that direct mailers would begin to seriously strain the postal system, using mail as something for which it was never designed. Weekly DM News reports would outrage readers with fresh tales of huge batches of mail delivered late or not at all. Delivery costs rose and delivery satisfaction fell. And thus emerged other media, following supply and demand (and abetted by Moore’s Law). These media included email. Now the outcry continues, but with this newer channel.

Fellow veteran of direct mail Melinda Krueger (MediaPost’s Email Diva) has a good post in that publication (registration required) about the influence of a dedicated IP address over deliverability. It’s a good primer to the topic of email reputation and how it is measured through the lens of an IP’s suspected spamming track record. More importantly, it helps the “lay audience” — those who think an ESP is a psychic ability and not an Email Service Provider — grasp the unintended consequences of email marketing.

Once again we marketers are using a medium for something no one considered at its birth.

A recent survey of 7,100 executives revealed a secret C-level indulgence: video games. PopCap Games conducted the survey, and here is a summary of their findings:

This representative sample suggests that as many as 80 million white collar workers play casual games. Of those white collar workers surveyed, nearly a quarter (24%) said they play “at work” — with fully 35% of CEOs, CFOs and other senior executives saying they play at work.

Tameka Kee of MediaPost points out the most promising implication for business-to-business (B2B) marketers: “These ad-supported games reach their targets on an unexpected, but increasingly popular medium.” In other words, they reach the men and women who screen their calls, have someone else sort through their mail and block unknown emails.

At last we know what they’re doing behind those closed doors.

New media consultant and columnist Steve Smith speculated recently in MediaPost that we will soon be receiving many more sponsored messages with our cell phone’s text bulletins. These text bulletins, also known as SMS messages, are the 140-character packets that helped Justine Ezarik rack up a 300-page AT&T cell phone bill. (She reports that Twitter and the SMS feature of Facebook were the biggest culprits. Each message sent and received was separately itemized.)

The good news is these messages will be extremely targeted, and are “opted into” in exchange for the content received. An example cited by Smith is NASCAR race updates, sent to the 200,000 subscribers to this branded program. He explains that if a supermarket chain would want to target those interested in NASCAR, “There is enough mass there to net perhaps 80,000 users in a general geographic region.”

That’s enough to make quite an impact. Especially since response rates are impressively high.

Although the initial calls to action must be quite brief — 20 to 80 characters — the extremely targeted nature of the messages helps response. A “response” is usually hitting reply, to receive a full (up to 140 characters) expansion of the offer and a URL to click on. This graphic , provided by the MoVoxx site, helps illustrate the typical process:

Alec Andronikov, who is the managing partner of MoVoxx, says that of the many billions of SMS messages sent each month, somewhere around 500 million of them are some kind of publisher-pushed alert. And each could conceivably be sponsored. Smith continues:

Right now, [Andronikov] claims about 3.5 million uniques with sports, travel, dating and newspapers comprising the largest content categories. … Andronikov claims a response rate of 2.5% to 4% on the SMS ads.

That means a hypothetical, regionally-based supermarket chain running a NASCAR promotion could get their entire message in front of at least 2,000 fans (80,000 recipients of the initial, sponsored message multiplied by a 2.5% response rate). If the offer is compelling enough, this can win the chain hundreds of new customers.

The ability to target consumers by age, gender and zip code — as well as areas of personal interest, as implied by the content to which a consumer subscribes — promises a way to take the junk out of junk text messages.

Through testing we’ll soon see whether these campaigns “have legs” — whether they can generate enough of a return on investment to make them a smart, new marketing tactic.

How often do you come across an account of the same new, breakthrough idea from two different sources within 24 hours? That happened to me this weekend, and even if I had just seen it once I would have found the idea extraordinary. First, I read how Offermatica provides a content management solution that helps with multivariate testing of offers and copy. From what is learned, customized content can be delivered in real-time, based on behaviors. Offermatica CEO Matt Roche describes a novel application of this tool in a MediaPost blog interview:

[With the client site, MusicFriend.com] when someone comes to the home page [from a search engine] we know nothing about them, so they get the home page. What if we repeat the keyword that they searched on to get there, just show similar information? That increased the conversions. We repeat your keyword so you have a connection. Then we install affinity targeting that says when you go to the drums section and come back to the home page it will show you more drum offers. It increased the conversion rate in double digits on all the categories where we did category affinity.

The emphasis was my own. Double digit conversions?!? What a great trick.

Then I read Todd Friesen’s piece describing the same technique, in the July, 2007, print edition of Online Media, Marketing and Advertising (OMMA — and yes, it’s also a MediaPost publication). Phrased a different way, it suggests the same brilliant strategy:

… Did you ever notice how most brand traffic lands on your home page? Even product terms that contain branded verbiage often get a home page ranking ahead of a product page. Most home pages are pretty generic and usually run creative speaking to a straight brand message or weekly deal. How do you refine that on the fly to positively impact conversion? With a good multivariate tool, it’s relatively simple.

Some tools have the ability to recognize a search engine referral and identify the search term to define the creative displayed in the marketing modules on the home page. SEO managers then populate the “hero image” with a product related to the search and then load the complimentary products into the secondary marketing modules.

It is standard practice to do something like this with pay-per-click ads. We create customized landing pages that repeat the keyword phrase used in the search. This idea extends that landing page mentality to organic search results.

There is conjecture that the radio was invented in several places around the world at the same time. I suspect there will be similar arguments as to whom originated this simple and elegant way to improve the user experience for people arriving from search engines. All I can say is, I’ll glad I learned about it at all, so I can begin testing it with some of my clients.

Any readers who are already using this technique?