Economic Rebound = Customer Service Falloff

It’s funny how “things are better” amounts to things actually being worse when it comes to customer service.

It makes sense, though, and with a good, long look you can already see it happening in businesses of all sizes and industries.

There are some companies that are always just historically bad when it comes to customer service – AT&T, Excite, the electric company, (United Illuminating here in CT…awful), the cable company. Add in your own favorites (or un-favorites, if you will). Yet combine a rebounding economy with a make-my-losses-back mentality and a shortage of resources and people, and you have historically bad customer service across the board.

It starts at the local level, with service companies from landscapers to oil companies to snow removers. These were services that a lot of out-of-work and cost-conscious consumers eliminated or scaled back on during the tough times of the past few years. Now that things are doing better economically, some consumers are opening the wallets back up, and those companies are more than happy to take the work again. And on the surface, certainly taking on alot of customers helps these companies bounce back from revenue and sales declines of the past few years. Yet for many of them, going for quantity over quality means delivering subpar service to a wider group of customers — including those who may have stuck by them during the tough times. Ultimately that’s not good business.

These are also businesses who haven’t invested in technology or equipment or infrastructure during the down times, so now they’re taking on added customer volume without the resources in place to provide good service. The first symptom is long wait times on the phone and for service delivery. Online contact doesn’t make it easier either, as someone already stretched too thin manages the online channel. Then, when service is delivered it’s frequently subpar since stretched resources are trying to service more customers in the same amount of time. That extra care they gave you as a loyal customer during the hard times is gone. And new customers immediately have low expectations from less-than-optimal service delivery.

The same goes for big brands. Many of them outsourced customer service overseas, for example, and are now getting hammered by higher volume hitting under-trained staff. And many of them still use social media as a mouthpiece, rather than a means for engagement.

None of this leads to long-term success – customers are unhappy from Day One, so it makes your business a commodity. There’s no loyalty based on price, experience, brand…nothing.

My recommendation? As a business that depends on customers, you have to invest in things that make your business unique. And while tough economic times make it difficult to invest in capital costs – like technology – it shouldn’t prevent you from charging ahead with low-cost investments in training, creativity, and other things that make businesses succeed. And ultimately, it means delivering consistent, high-quality service and experience. If that means taking on less customers now so you can build stronger relationships in the long term, that’s a cost of doing business. You have to realize that if take on too much and deliver bad service, you’re going to spend more on sales and marketing costs in the long run trying to replace customers who leave.

Stay tuned for my next post, which outlines three things you can do to avoid these pitfalls.

I hope this post trickles down to the snow removal service that takes care of (or doesn’t) my building. If you do quick, hasty, low-quality work because you’re trying to make it to as many customers as you can, you’re only pulling a snow job on yourself.

How to Reform an Enewsletter

There’s so much to stay up-to-speed on nowadays, it’s easy to get passed by.

That’s what happened to me at one point last year, when one of my email campaigns got stale real quick.

Something can always fall through the cracks, even if you put alot of time into planning and strategy. So when you’re stuck in a bad email situation, get refocused quickly, take a good, long look at best practices, and make some changes to your email program to turn a bad campaign into an opportunity to re-engage customers quickly.

I just wrote the following article for Chief Marketer (access the original piece right here) that summarizes how I switched up the sitch and turned that stale campaign into a winner again.

Healthcare Enewsletter Reform Perks Up Response

With email marketing, there’s more to stay up-to-date on than ever before: integrating social and email, reactivating inactive customers, personalization, accounting for mobile users, deliverability challenges, testing, using content and relevance to drive engagement. Add all that to the day-to-day tasks of your job, and it’s inevitable that something may fall through the cracks.

That was the case for one healthcare client I worked with. I certainly spent a lot of time on testing and solid planning, yet a period came up where work volume skyrocketed and I lost sight of performance on one of our email campaigns. So what had started out as a great member newsletter turned into a stale email that lacked engaging content, with increasingly poor metrics as a result.

I needed to change the system and implement some real healthcare reform to get this email program back on track. Three simple steps led the way:

• reducing frequency
• investing saved time in creating better content
• refreshing the template to align with best practices.

The problem
The client was Massachusetts General Hospital, for whom I managed marketing strategy for its live and online educational programs directed to clinicians in mental health, oncology, and other specialties. As I mentioned in an earlier article, a big challenge in the healthcare market is the huge number of critically important emails that healthcare professionals receive every day—emails about patients, medications, procedures, new research, all of which take priority over marketing messages. And then, of course, healthcare providers are also affected by the other issues regarding email marketing, such as inbox clutter and deliverability.

Last year, a bimonthly newsletter for the Massachusetts General Hospital Academy went from average open and click rates in January (based on all my email campaigns for that client) to open rates of less than 5% in August and click rates of…well, you don’t want to know. It was that low.

Part of the reason was content. During that busy time I mentioned, there was less time to dedicate to content development for a biweekly newsletter. So copy blocks became longer, the content became less informative, and some of the articles and announcements mirrored what we sent in our more marketing-oriented emails. Without unique content, the newsletter no longer compelled recipients to open or read it.

Mass General newsletter before reform

The solution
The first step in the solution was to pull back on frequency from bimonthly to monthly. We did have other email campaigns, and the target audience receives all those other important emails I mentioned above. So I believed that sending fewer emails—at our highest-performing send times—would create a greater impact and help our emails stand out amid the clutter.

The second step was to take the time saved by sending fewer emails and invest it in developing better content. With more time I was able to better leverage content that was already created by the hospital’s various service lines and treatment centers. Because it hadn’t appeared in the other newsletters that subscribers received, this content was new to them.

Indeed, you don’t have to create all-new content for your newsletters. It can be just as valuable to link to important content already out there that your audience may not know about or to provide your own analysis on important news and research.

Third, I had someone on my internal marketing team redesign our HTML template. We moved away from the image-heavy header area to a small, HTML text header with a right-column logo as the only image. We include “Massachusetts General Hospital Academy” in the from line, because it lifts open rates, so we no longer needed the logo to occupy valuable upper-left real estate.

We added a brief table of contents in the top 300 pixels that linked down to short copy blocks. The copy was written to entice clicks rather than tell too much of the story, and we used small images to liven up the template and create visual points of interest. We ensured that the images, however, would not damage the integrity of the layout if a recipient’s email client blocked them. We fit key links in an unobtrusive location opposite the table of contents and in the upper right, and added in a few profiles of key hospital thought leaders in the right column opposite the copy blocks.

Mass General newsletter after reform

Overall the redesigned template was much easier to skim and engage with—and was exactly what the doctor ordered in terms of results. In just the first email, sent out in September, the open rate went up 13%. Further subject-line testing and content testing increased the open rate by 30% by the end of the year. Click rates also jumped significantly, and while they were certainly skewed toward the most interesting content, they were also spread out across the entire template, which clearly showed users were reading past the scroll.

Based on these results, when it comes to refreshing a stale campaign, here’s a prescription for the problem:

• Consider decreasing volume, even if for a short time. Give your customers a minute to breathe. You’ll find that less is more when the message is right.
• Make sure those fewer messages have better-quality content. Spend the extra time you have on creating relevance and personalization that matter.
• Ensure your templates are optimized for today’s email clients and user habits. Rely less on images, use HTML text for key action points, optimize for the mobile channel, etc.
• Provide numerous ways to engage, by leveraging interactivity, linking to video content, and integrating with social media, among other ways.
• Sanitize your data. Subsequently we scrubbed out some long-inactive records that depressed metrics and messaged those users separately to reactivate them.

So don’t panic if you get distracted and your email campaign comes down with a case of bad metrics. Refresh your strategy, optimize your design and your approach to content, and in a very short time your emails will be healthy again.

Amazon SES Doesn’t Mean Much for Marketers

I’m as big a fan as the next guy about saving money. Give me a bargain any day.

However, when it comes to saving money on an email solution, less doesn’t always equal more.

You’ve heard me say that with email volume, less can equal more when relevance and engagement go up at the same time. However, if you plan to take a good, long, look at Amazon’s new SES email solution, don’t misread its value for your brands to go beyond transactional email services.

This ClickZ article runs down some of the basic details about the service, and asks some fair questions about how it’ll affect the major ESPs. However, the article itself actually misses the point completely with its central question.

Amazon’s Simple E-mail Service (SES) could open up bulk e-mail marketing to cash-strapped companies. Will it siphon business away from established e-mail service providers?

The central issue is not the ESPs losing a couple points on share or struggling companies using SES to send marketing emails, c’mon Susan. The issue here is the access to cost scalability and deliverability assistance for companies already plugged into Amazon Web Services. There’s certainly some development required.

What SES means for marketers is you can potentially send transactional email through a low-feature, low-price email tool — and if your transactional volume is high, it could offer some savings. The ClickZ article is slightly misleading when it says SES will “open up bulk e-mail marketing to cash-strapped companies” — I’m sure nobody would sign off on that being a good idea. And email is one tactic in the toolkit, not a solution in itself. And even when Amazon describes SES as “a highly scalable and cost-effective bulk and transactional email-sending service,” the potential for misunderstanding is there. Just remember that bulk is exactly what customers do not want.

SES page on Amazon website

Consumers want relevant, engaging content in their inboxes. Offers targeted to their history, their preferences. They don’t want to be bulked or spammed or hammered by “cash-strapped companies” who could care less because it costs nothing to send email. Email is strategic now, part of a dialogue — not a one-way megaphone or shotgun blast anymore. All SES delivers in terms of analytics is basic — “marketers can also use a simple query to obtain basic statistics, such as volume sent, bounces and complaints” — so for marketers, SES would never replace Exact Target or any other powerful, analytical email solution. Econsultancy also weighs in that they don’t see SES displacing traditional ESPs since SES doesn’t provide the campaign management and reporting that are critical to what we need as marketers.

Amazon further describes SES by saying:

Amazon SES takes proactive steps to prevent questionable content from being sent, so that ISPs receive consistently high-quality email and therefore view the service as a trusted email origin.

One thing I’ll have to ask how does Amazon define “questionable content?” I think what that statement really means is they ensure nobody sends any blatant, flagrant SPAM through their service — think porn and Viagra emails. They’ll help your email get through to people, yet whether or not any emails sent through SES are “high-quality” in terms of best practices and content are still going to be at the sender’s discretion.

Have some specific comments or thoughts to add about any issues regarding SES? Charge ahead and weigh in.

Earn Clout with Social Influencers

Do you current acquisition campaigns include social influencers? They should.

Social media is lauded for its high engagement value, yet many marketers are struggling with how to measure it, never mind how to use it to move the needle on sales. Hell, many marketers and companies have yet to commit the time or the resources to leverage SoMe effectively for engagement — despite the benefits.

That’s why I love the great examples out there like this article on how the Sacramento Kings used Klout to tap into the power of social influencers. There are tons of articles out there that discuss all the reasons you have to use social — this blog alone offers up a bunch. Yet this article touches on the true viral power of brands tapping into social influencers who are capable of shaping behavior across their whole social networks.

Nothing like other people doing your job for you.

Think this approach has merits? Take a good, long look at it’s application on the micro-local level, where community-based doctors, restaurants and other local business could reach out to prominent local influencers — perhaps members of social programs, sports leagues or PTA boards. Give them a good experience or an offer, and the word spreads fast and drives local business as soon as those influencers tell their social networks about it via Facebook, Twitter or other means.

Think of it’s application to healthcare, where innovative academic centers and community practices could reach out to prominent patient advocates and community leaders. Work with those influencers to create events in the facilities and practices or host Twitter chats, and the social impact spreads to core consumers of healthcare services in those networks. Recent studies show a “graying” of social networks due to the huge number of older Americans flocking to them, and one of their most popular online activities is searching for and sharing healthcare information. One of my blog posts for Oncology Times discuss this phenomenon. So the opportunity is definitely there to make an impact among healthcare consumers with the right outreach to social influencers.

How do you identify and reach social influencers? Well, you can work with experts like Klout, or you can set up an effective social listening station of your own and begin to closely monitor and filter the conversation in your markets or areas of interest. Many tools out there set up those powerful filters that can be as granular as you need, and you can build your own dashboard to analyze and rank influencers. Radian6 and Alterian are two of the better products available, and the cost is not significant.

Need another example? During an online demo of Radian6, I tweeted about it. Less than 10 minutes later, I had a tweet back from Alterian acknowledging my interest in social listening software, with an offer to access information about their product. Now here I sit, virally spreading that experience and education. It’s a whole different and more meaningful way to influence customer behavior.

We’ll discuss more about social listening in an upcoming post, yet in the meantime I recommend you charge ahead and become more familiar with it starting right now.

Brands Use Content as a Marketing Tool

But you already know that brands use content as a marketing tool, because I’ve been talking about it since April 2009.

Kudos to David Carr and the New York Times for finally arriving to the party.

Carr just wrote this excellent article in the Times about luxury brands publishing content and downright getting into the media business. And it’s true, brands are creating content and using it to drive engagement across a variety of vertical markets, both B2C and B2B. They’re shifting dollars of out publishing ad spend to do it, and they’re delivering content in the form of print magazines, digital mags, blogs, content-rich websites, and more. Plus, they get better tangible metrics than publishers offer, because they drive traffic to their own content, URLs and places where they can track and analyze deeper.

Yet Carr’s article comes almost a full two years after I wrote a series of blog posts that described how marketers have a role in the future of content (the other two posts in the series are here and here…the second one even takes a journalist to task for not seeing the shift).

I think the mainstream media are finally starting to notice since, as Carr’s article highlights, some high-level journalists and content experts are making the leap to direct content on the brand side.

Andrea Linett, the former creative director of Lucky, has gone on to become eBay’s fashion creative director, while Melissa Biggs Bradley, the founding editor of Town and Country Travel for Hearst, is now the chief executive at the travel site Indagare. And many journalists who were pushed aside as publishing withered are now finding that brands in search of an audience are still interested in what they do.”

Well now that the Times says it, it must be true, right? So take a good, long look at what kind of content your customers consume, and charge ahead in terms of providing it to them in a way that creates engagement with your brands and products. I’m not saying you have to hire editors and build a media empire under your roof — but hired experts are clearly an effective way to do it. You also have other ways to create and provide content, like social media, whitepapers and even Twitter.

Once you make the leap to content provide and educator, you gain trust and credibility, and you gain an incredible amount of context that you can use to market your products/brands.

Updated: 3 Steps to Improve Your Social Network

Being a sociable person is more important than ever. And I don’t mean just with your family at the holidays.

It’s not like you don’t know that. As a marketer, social media is an important part of your everyday habits (I hope), and it’s one of the most engagging and effective tactics you have at your disposal. And now more than ever, it’s an important part of being a business professional, whether you’re in marketing or any other profession.

Back in May 2009, I wrote a post about steps you can take to improve your social network. So much has changed since then that it’s time to take a good, long look and update those original steps. It’s important not just in the sense of building a network of people — it’s a key part of becoming an effective and knowledgable business professional in today’s real-time world. You have to sell yourself and your ideas to your peers and your customers (cause if you’re in marketing, you’re in sales), you have to sell your experience to potential employers, you have to connect with peers in your field, and you definitely have build your Brand Y-O-U.

Hence, here are 3 steps you need to take right now to do just that:

• Build a network of references — An important part of building a personal brand is not only having a track record of experience and achievement, but having allies who can and will attest to it. And given the legal risk that companies now face with managers providing online references, it’s important to have references that go beyond your LinkedIn profile. Certainly ensure some references on LinkedIn from key managers, direct reports, colleagues and others as you can — yet also secure letters from key contacts (if possible) and promises to serve as telephone references as well. Some executives avoid providing written recommendations of your work on social networks, yet will certainly provide references to your personal priniciples and business acumen over the phone. Don’t discount LinkedIn, and continue to build a powerful list of LinkedIn contacts and references — yet have a strong list in the background of people who will put their mouths to work saying what their corporate counsel won’t let them write.
• Engage social influencers in your field — As you know, there are plenty of social communities and outposts where you can listen and learn a whole helluva lot about marketing or whatever vertical market(s) you’re in. (If you actually don’t know that, you need to go to work on Google right this second and figure it out!) Yet while it’s wholeheartedly critical that you listen and learn, it’s now equally valuable to engage the social leaders and influencers in your field. You want your voice heard? Then engage the people talking the loudest and smartest. Comment on their blogs, share ideas, ask thought-provoking questions. Become part of the conversation and make your thoughts heard, put them in the social record. Let them get indexed and searched and read. It does more than just build your personal brand — social influencers are hubs of knowledge, and if you’re in their network you benefit from that. You learn about jobs that come open, new research, compelling content, receive introductions, and more. Alll valuable commerce in the context of building your own network.
• Keep your network active — Much like we engage our customers in social media, engage your network along the same lines. Share content with it, challenge it with thought-provoking questions, throw ideas at it. Don’t let social influencers languish, or the information they share with you languishes also. Many times people lose sight of this simple necessity as the responsibilities of our jobs outweigh the time in our days. Yet you must carve out a section of your day precisely for activating your network, it’s vital to building a personal Brand Y-O-U. Much like our brands, we have to engage our contacts and social influencers with the same principles we use to engage our customers in social media. And just like marketing, using a mix is important — Twitter, LinkedIn (both profile updates and status updates), targeted emails, blog posts, Facebook, comments, social sharing of news and content, etc.

These basic steps will have your social network humming in no time. If you listened to the advice in my original post from last year, you’re ahead of the game and you’ll add to an already-strong network. There are still other things you can do — start your own blog, seek speaking opportunities, and become a social influencer yourself. Either way, the steps above are important since a strong, active network is now a must-have for any savvy professional. You can start the proverbial business in your garage, but to be successful it can no longer stay there in a vacuum.

I’ll leave you with the same advice I left you with in my original post:

You’ve invested the time, money and effort in being a good marketer — don’t let it go to waste because you didn’t invest in your social network and Brand Y-O-U.

Take the steps above and charge ahead starting now.

Implications of the “Do Not Track” Movement

Just when you were starting to figure it out online, leave it to potential legislation to ruin it.

Well, maybe not totally ruin it, but at least make it harder. That’s my take on the potential for FTC policy and future legislation on an Internet “Do Not Track” list. While I agree that consumers should have every right to raise their hand for privacy whenever they desire, I think it also raises the bar alot higher for marketers who don’t want to be covered by their customers’ “Do Not Track” blankets.

I’m hoping that policymakers take a good, long look at arguments like David Greene’s post on why the Do Not Track line of thinking may be misguided. While I like and agree with that line of thinking, the Do Not Track movement may have too much momentum to be stopped — Microsoft already announced that when Internet Explorer 9 is released in 2011 it will have a feature included that allows users to restrict sites from tracking them. In reality it’s just an enhancement to features already present in IE 8 and it requires some user effort to take full advantage of the feature, yet the big announcement by Microsoft (which some argue is just posturing to gain an edge) certainly added fuel to the fire.

Essentially, here’s what this functionality means for you as a marketer: Want to be able to track customer data? Then earn their trust with top-notch messaging, content and experience. Then maybe they’ll let you in.

The one sure thing is that if you don’t make an effort to earn trust, you certainly won’t be let in. So my recommendation is to address the issue now.

• Start improving the quality of your messaging so it’s personalized and relevance-based.
• Engage customers in dialogue that builds trust.
• Set high standards for process integrity and data security.
• Explain to customers what you do with their data and why it helps you help them.

Those proactive steps will help you charge ahead and become an oasis for customers in the desert of online trust.

Reduce Volume, Reinvest in Relevance

The following post is a re-post of an article recently published on Directmag.com, and you can read the original article on that website — which, by the way, is a great source for insights to improve your campaigns.

Rx for Ailing Email Response: Reduce Frequency

Certainly email is still one of the most productive and powerful tools in the marketer’s arsenal of tactics. Recent research shows there’s no falloff in usage even with the shift toward social networks; in fact, studies from Nielsen and others show an enhanced level of email usage among those with high participation in social media.

That said, some of the main challenges we face with email—volume, relevance, and engagement—become more problematic when people use email more. When a user is in his inbox all the time, it’s easy to get tired of senders, even trusted ones, who send too frequently. And marketers need to be diligent to ensure that their email messages and offers remain riveting and relevant in order to create engagement.

As a marketing director at Reed Medical Education, where I promote continuing education programs to healthcare professionals, I have the typical email issues to account for and test against: inbox clutter, frequency, deliverability, optimal send time, etc. There’s also an additional challenge: My recipients also receive a lot of messages that rank higher than mine—emails about patients, medications, procedures, new research, and countless other things that are critical to making people better.

This fall, when rolling out a campaign for our largest conference, focusing on mental health on behalf of Massachusetts General Hospital, I decided that less is more.

For the 2009 conference, during a six-month campaign we sent out 12 marketing emails plus four transactional emails based on actions, such as purchase confirmations. Most of the messages were in a standard HTML template we have for the brand, and two were text-only, personalized emails. Open rates were down to less than 5% across the board, and we barely hit our attendee goal.

In 2010 the goal was not only to exceed our attendee target but also to markedly improve our email metrics. A better campaign should deliver a better overall result, right? I decided to cut the number of emails we’d send for the campaign by 50%, down to six. In cluttered inboxes, I bet that fewer total messages from us would actually stand out more and give us more opens—and I knew that if we put extra time into developing a better message, the clicks would follow.

First we redesigned our HTML email template into a cleaner layout with shorter, punchier copy and highly visible calls to actions. For three of the emails, we focused on key deadlines to deliver time-sensitive, action-oriented messages.

For the other three emails, we crafted personal, text-only messages from key speakers and leaders of the conference. We segmented the campaign to our internal database based on purchase history (2009 attendees, pre-2009 attendees, never attended, etc.), and we customized the message based on that history. For last year’s attendees, we emphasized what was new in 2010. For those who had attended prior to 2009, we focused on why it was critical for them to come them back. And for those who had never attended, we highlighted key unique selling propositions and benefit-oriented messaging. And again, all versions were sent as a personal message from a key figure.

Also in these text emails, we linked to a five-minute video recorded with the chief of psychiatry at Mass General. He directly addressed some of the cost, time, and other objections we frequently hear from attendees and tied it all back into the positive impact to their clinical practice they’d gain from attending the conference. He said it much it better in the video than we ever could have said it in an email, and it provided a deeper level of content that users could access with just one click.

The results of these changes were exactly what the doctor ordered. Campaign-wide open rates more than tripled over the previous year’s to 15.4%, and average clickthrough rates were up over 2.6%, with some segments having rates as high as 9.7%. The personal emails had the best performance, as expected, with open rates all over 16%, yet year-over-year the HTML emails did considerably better as well. And the ultimate win was in our performance against our attendee goals: We converted far more registrations via email than in 2009, and we exceeded both attendee and revenue goals by 15%.

In summary, here’s my prescription for your email woes:

· Worry less about how many emails you send. Less is more when the message is right.

· Put the extra time into developing better quality messaging. Relevance and personalization matter.

· Segment, segment, segment — and leverage the information you have about your customers.

· Make your emails interactive. Link to video, integrate with social media, and provide compelling content or offers that make the click worth the time.

· Sanitize your data. We scrubbed out some long-inactive records that depressed metrics and messaged those users separately to reactivate them.

More than anything, don’t settle for the same old thing. Just as a doctor does with a sick patient, if one approach doesn’t work, try another to get better results. And remember, relevance trumps frequency to win engagement.

Mass Personalization

We see it all the time, yet we don’t always do it. It’s a critical part of building relationships with customers.

I’m talking about personalization. It really makes a difference.

No, not a simple “Dear Marie” at the start of your email. I mean real personalization that creates relevance. Relevance that leads to great things — engagement, relationships, sales, upsells, etc. Some studies in retail show that as many as 77 percent of consumers report they have made additional purchases when they encountered personalized product recommendations. And there’s no arguing that a significant percentage of customers now expect to be communicated with on a personal and targeted basis, with personalized messaging based on what they’ve done, bought or told you they want.

A significant percentage of consumers not only welcome but expect…personalized experiences and product recommendations.”

Plus, we all know it’s easier and less expensive to reactivate a current customer than to acquire new ones. So why wouldn’t you leverage what you know about your customers to differentiate what you say to them? Each one of them.

To reinvigorate your email campaigns, start by either adding in a personalization element, or better yet supercharging the personalization you already use.

• 1. Take a look at your data. What do you know about your customers, and how can you organize it to help customize your messaging to them?
• 2. Reformat your templates to allow for simple personalization like first names in an introduction and meaningful mentions throughout the email. Make it sound genuine and not contrived, however.
• 3. Begin to add in more relevance-based personalization like purchase history, recommendations and content. Stuff like “since you bought this item last month, you may be interested in this to complement it” or “since you clicked on this article link, you may be interested in this new content too.”

It’s easier than you think. It doesn’t take alot of time. Change your process, organize your data, and put the thought into what makes the most sense from your customer’s perspective. Then charge ahead.

In Email, Engagement is Key

I want to think that by now, most marketers are advanced in their use of email. We all test incessantly, make everything personalized and relevant, and leverage customer data to drive strategy and messaging.

Sometimes, it gets busy though. Other problems and needs take the forefront. Your email languishes. Next thing you know, a big chuck of your email list is inactive and your metrics are lower than opinion polls on the TSA.

So I’ll get right to the point — it’s critical to segment your list and message inactive customers differently from active ones. Many times, you likely segment and message based on other things like job title, location, etc. However, engagement is arguably the most powerful metric to leverage since it signifies activity, recency, endorsement and interest. Or, as it will, non-interest. There are certainly different ways to define “engaged” today — for now, start simple and define it as someone who interacts with your email (opens, clicks).

If you’re not currently segmenting your emails using this approach, stop you’re marketing machine right now and re-do it all over again. Build in the time and capacity to do the following three things:

1. Accurately define what “unengaged” means in a way that lets you meaningfully frame and solve a problem. For example, it may mean someone who didn’t spend a dime with you in 2010, or it may mean someone who didn’t open or click on one of your emails in the last 6 months.

2. Accurately define what “reengaged” means. It has to mean something achievable and realistic. For example, if a user didn’t spend a dime with you in 2010 it may be a challenge to get him/her to spend $1,000 in 2011. You may need to define an easy entry point(s) and/or multiple levels of reactivation. For someone who hasn’t shown any level of email activity, a simple first step may be to get them to open and/or click on one of your emails again.

3. Look at what you know about each customer and leverage it to create relevance. You can customize messaging based on whatever you know: purchase history, location, profession, click behavior, age. Anything you know about them. Look at what theyve done, and suggest something that has relevance as a benchmark for reengagement. For example, one approach I used in my current role was saying stuff like “We noticed you’re a primary care physician and we havent heard from you in a while, did you know we just released a new webcast that’s really relevant to challenges in primary care? Check it out.”

I guarantee that if you start to segment by level of engagement, and then leverage customer behavior to personalize and customize messaging, your campaigns in 2011 will markedly improve.

An Email Resolution

Many, many marketers are not sad to see 2009 leave. A tough year to say the least.

Looking for ways to improve is an important thing to do as we move into the new year. Certainly it’s always an important thing to do, not just in January. Yet the turn of the calendar typically provides a convenient checkpoint for marketers to revisit our plans and practices. On that note, check out this MediaPost column on email metrics. It’s full of suggestions on how to use those metrics to find a deeper level of guidance and strategy-changing perspective.

If you’re one of those who uses the turn of the calendar to seek new life for marketing plans, maybe this will help you find it.

The New Four P’s of Marketing — Part 2

So we’ve discussed Proof and why it’s critical to demonstrate that what you do and what you say means something to customers.

Now let’s discuss what you can do to demonstrate that Proof — go get yourself some Presence.

• Presence — You can’t prove anything to anyone without having a Presence. And not just in terms of being there when there’s a need, or having an ad in the right place, or dropping a direct mail piece at the right time. Presence is also being there when there’s not a need. Presence means providing knowledge. It means creating or defining needs in addition to meeting needs — for example, by providing content and establishing credibility as an expert.  Or using customer interaction and knowledge to develop meaningful solutions. Presence helps you deliver the Proof.
  There are many ways to have Presence — and you need to be knowledgable about all of them, from traditional tactics like emails and direct mail, to online tactics like Google keywords, to social media engagement tools like Twitter. Maybe you don’t need them all, depending on your audience, but you better know their strengths and weaknesses. 
  And you better make sure your Presence evolves with your customers.  Otherwise, they move on and your Presence is meaningless.  There are alot of things you should be doing to stay up-to-date on new aspects of social media that allow interaction and dialogue with customers. Like Google Wave, for example. Your customers may be in all these social media nooks and crannies, and if you’re not there with them as part of the conversation then you have no Presence.
  Sure, you can still have 20th century Presence.  We still need it!  You can still send direct mail and email, run ads, hand out samples and all the other marketing tactics we develop and refine with great effort.  Hell, traditional marketing works wonders when done right. Yet if your bag of tactics has not expanded to include social media in whatever ways and websites and widgets your customers love and interact with — then you will now find that your traditional marketing has alot tougher time succeeding.  Competitors who create interaction are too easy to find, and they’ll steal your business with with their Presence.
  Presence is scalable, and it depends on your customers.  It may require people who live and breathe social media every minute of every day — bloggers, Tweeters, Tumblrs and Diggers. Or it may require a simple Facebook fan page.  And it certainly requires a mix of traditional marketing in some form.  So it must be guided by someone with comfortable vision of both traditional and new.

Next post discusses the third P: Persuasion.

The New Four P’s of Marketing — Part 1

In a way, it’s not even appropriate to say “Things change fast” any more. It’s like saying “The sky is blue” or “AT&T sucks” or something else equally obvious.

Change is such an engrained part of the marketing landscape now, sometimes things change and you don’t even notice. Hell, you even start doing things the new way without even missing a beat or sometimes acknowledging the change. Stakes are so high and time is so precious. You evolve in real time and stop at some point later to reflect and evaluate what you did and how it performed.

The Four P’s are one of marketing’s hallmark principles. For decades, marketers were raised on Product, Price, Place and Promotion as the backbone strategic drivers behind what we do. And since so much of marketing was driven by companies and not customers, there was never a need to evolve. The Four P’s have driven our education, our strategy and our tactics for years.

Enter the rise of social media and the connected customer.

Now, even the Four P’s of marketing — the pillars of our discipline — have changed. Companies, marketers and our co-owned strategies have to find and keep customers using a new set of driving principles. It’s time to relearn what we do, whether you like it or not. We have to embrace a new Four P’s of Marketing: Proof, Presence, Persuasion and Price.

We’ll look at each one in-depth in a four-part series of posts.

• Proof — It’s no longer good enough to just produce a product, put a price on it and put it out there. That’s recipe for failure.  In an era of ultra-competition, you have to prove that your product or solution is the right one. That you’re reliable and ethical. That you provide a unique value or experience. That you’re consistent. You may even have to prove many things to many people depending on your customers’ values. For example, that you’re service-oriented or socially conscious or financially sound (especially now). You have to prove that your product is right too — that it’s meant to solve a customer’s problem or need, that it’s quality, that it’s worth their time.
  Hell, even when the customer believes your product is right, even if they believe what you stand for, you have to prove that you offer the best place to buy it — several other options are always a nanosecond away online. How many mashup sites are there that compare product prices for people?  Several dozen, maybe.  So you have to prove your retail or online experience is all the things discussed above also.
  Plus. how you prove it matters. Do you engage customers where they live and communicate, or do you implore them to come to you? Do you blare monologue or encourage dialogue? Are you reactive or interactive? You can’t just say something and call it Proof — you have to engage customers in conversations and meaningful interactions, and let them decide and label it.  That seal of approval — the customer-driven one, the viral one –is worth more than any other.
  Experience matters too. If you have a great product yet a lousy purchase process, you lose. A great event with a lousy registration process, you lose. A great retail store with average service or vanilla employee passion, no way.  A slick-looking website with poor functionality, you lose. Excellence matters, from first contact through shopping cart checkout, upsell messaging to customer service, website personalization to employee friendliness.  It all has to be right.  Otherwise the only thing you’re proving is that you know how to get it wrong, you know how to do it the old way.
  Hence, Proof now leads off the Four P’s of Marketing.

Stay tuned for a look at the next P soon: Presence.

The Dark Ages Persist

They’re still out there. You know who they are. They’ll all around us.

They’re people who still do it the old way. Still live in the dark ages and do it just because. Still do it because it’s too much work to change.

I ran into some of them today. They called me, on my personal iPhone no less. How they got the number I DO NOT know, and they would not tell me. They work for Fidelity Home Mortgage, some shady mortage company in California. They called me to offer some kind of home mortgage deal — the shady kind, of course (it’s a shady company, what’d you expect?). There were no questions about me or my needs or even if it’s okay if they called, they just launched right into a canned, continuous schpiel. My response to that was to ask how they got my number, in which case they didn’t answer but launched into another schpiel. I told them it was on the Do Not Call list and they should change their practices, and they launched into an apology and took my number and assured me it’d be removed.

Let’s count the offenses:
1. Buying telemarketing lists to cold call with no knowledge of the customer they’re calling, OR harvesting numbers from somewhere — one or the other (or possibly both, who knows, they’re shady)
2. Not buying DNC-scrubbed lists, OR not DNC-scrubbing their own list — one or the other
3. Not asking the customer ANY questions about their needs, just monologue-pushing their own product
4. Not offering customers a product customized for them, just some generic schpiel
5. Not even knowing if the customer wants or needs their product, just pushing their product blindly
6. Not engaging customers with knowledgable brand ambassadors — customers hear from a robotic employee reading relentlessly off of a script (not the kind of thing that endears you to anyone — read about how they explain it on their own website)

Benn through this lately? More importantly, know any marketers that still operate this way? Please tell me it’s not you.

Listen, take a good, long look at the way you work if it sounds like what you just read above. It’s a tough economy, but customers don’t settle for subpar treatment just because it’s tough. And when things get better, do you really think customers are going to go back and settle for what it was like before? Think they’re gonna come back to the same old thing?

Are you engaging customers in a dialogue? Do you target your marketing messages based on customer knowledge? Are you innovating your tactics? Are you a thought-leader in social media? Are you reading about what technology is coming next and preparing now to evolve your tactics in the future? Do you talk to customers regularly, not to sell them something but to learn about what makes them tick or keeps them up at night? Are you leveraging content?

Charge ahead and change your ways wherever the answer is “No” above.

New Acronym, New Urgency to Measure Your Social Media Metrics

It used to be so simple.

At first, social media was easy because the standards of traditional marketing didn’t fit. It was new and different. It was personal and customer-driven and you were just feeling it out. It was Facebook and Twitter and what was to measure? If you knew how many Duggs you got on Digg you were ahead of the game.

But now that you invest time and resources in those customer conversations, it’s time to take a good, long look at what you get out of it in the traditional sense of marketing ROI. Even if you can’t or don’t need to measure down to an actual sales or revenue-driven metric, you should look at some the standard metrics of involvement and engagement in social media — followers, friends, comments, retweets, etc.

That’s where this helpful blog post from MediaPost (courtesy of @B2BOnlineMarketing) comes in. It suggests adding a new choice to the marketer’s toolkit of measurement metric acronyms: CPSA, or Cost Per Social Action.

The main benefit of CPSA is that marketers know they’re paying for something social and relationship-oriented. More importantly, marketers know they’re not specifically paying for exposure, traffic, conversions, or interactions (though those can all provide additional value). It’s an acknowledgement that social media is something else, so it’s deserving of a new model, one that stresses relationships above all else.

I like this logic alot. In social media, engagement and interaction is the holy grail, no matter what your goal. Whether you need to plant a flag as an industry thought-leader, or build followers for a Facebook page so you can reach them for a much lower CPA than other channels, the need to measure CPSA at some level is now an expectation. And it’s different that traditional measurement, because relationships are less tangible yet potentially more valuable in the long term.

The article does post a great question that only you can answer:

What’s a social action worth anyway? The further anyone veers from reach and sales, the harder it’s going to be to tie this into marketers’ traditional metrics.

Depending on your ultimate goals for your social media involvement, the true worth is for you to determine. For some, bigger Authority on Technorati may be the most valuable thing for your blog, while for others it may be Facebook followers, Twitter retweets, overall size of your social network, or something else. Or maybe you have a different way of measuring worth already that’s more complex and gives you a sales-driven ROI.

No matter what the answer to the question is, it’s definitely important to charge ahead and embrace CPSA as a new and valid metric that we look at often.