Behavioral marketing

WEBFLAST02 07/22/2015 15:49:2 Page xxii WEBFFIRS 07/23/2015 1:37:19 Page i Behavioral Marketing WEBFFIRS 07/23/2015 1:37:19 Page ii WEBFFIRS 07/23/2015 1:37:19 Page iii Behavioral Marketing Delivering Personalized Experiences at Scale Dave Walters WEBFFIRS 07/23/2015 1:37:19 Page iv Cover image: © CSA Plastock / Corbis Cover design: John Yardley Copyright  2015 by JumboMouse Labs, LLC All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor the author shall be liable for damages arising herefrom For general information about our other products and services, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-on-demand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http:// booksupport.wiley.com/ For more information about Wiley products, visit www.wiley.com Library of Congress Cataloging-in-Publication Data: Walters, Dave, 1968Behavioral marketing : delivering personalized experiences at scale / Dave Walters pages cm Includes index ISBN 978-1-119-07657-5 (hardback) – ISBN 978-1-119-07639-1 (ebk) – ISBN 978-1-119-07643-8 (ebk) Internet marketing Customer relations Consumers' preferences I Title HF5415.1265.W3655 2015 658.8´ 72–dc23 2015017698 Printed in the United States of America 10 WEBFTOC 07/22/2015 15:52:52 Page v CONTENTS Foreword by Bill Nussey Acknowledgments The Behavioral Marketing Manifesto Part ONE Part GETTING STARTED WITH BEHAVIORAL MARKETING Behavioral Marketing: More Sophisticated Audiences, Smarter Tactics, and Deeper Personalization for All Where Are You on the Behavioral Marketing Spectrum? 15 Gearing Up for Behavioral Marketing: The Roles, People, and Systems Needed to Win 23 TWO ix xv xvii PUTTING BEHAVIORAL MARKETING INTO ACTION Pacing Yourself: Behavioral Marketing at the Speed of Business 37 Bringing Behavioral Marketing to Life in the Real World 45 v WEBFTOC 07/22/2015 15:52:53 Page vi vi CONTENTS 10 11 12 Part Upping Your Content Game: Educating Customers Throughout the Entire Cycle 57 Customer Journey Mapping: Putting Yourself in the Customer’s Shoes 69 Channel-Level Planning: Delivering Insane Relevance Every Time 83 Data Capture and Hygiene: You’re Only as Good as Your Database 119 Campaign Creation: Segments, Logic, and Automation Are Your Friends, and Great Creative Matters More Than Ever 135 Behaviors and Mobile: Yes, It’s Radically Different Than Every Other Channel 149 Measurement and Optimization: Creating a Framework and Moving Your Own Goalposts 157 THREE 13 14 SUCCESS BEYOND THE BEHAVIORAL MARKETING BASICS It’s All About the Team: Staffing the Right Players to Succeed 177 Managing Upwards: Socialize If You Must, Prove Results Every Time 183 WEBFTOC 07/22/2015 15:52:53 Page vii Contents 15 16 17 vii Best Friend Brands: Becoming Indispensable to Your Customer 189 Riding the Wave: Career Success Powered by Behavioral Marketing 207 Closing Thoughts and the Power of Actions 213 Index 219 WEBFTOC 07/22/2015 15:52:53 Page viii WEBC17 07/22/2015 21:3:36 Page 217 Closing Thoughts and the Power of Actions 217 So let’s call this the end of the rah-rah speech I’ve given you many tactics and strategies to consider in migrating your marketing effort to be more behavioral The ball’s now squarely in your court Which two tactics will you have live this month? What relationships will you build to enable holistic improvement over the next 12 months? If you act, I have succeeded with this book If you move on to the next title without substantial improvement, I have failed And failing sucks, so get down to business, my marketing compadres! WEBC17 07/22/2015 21:3:36 Page 218 WEBBINDEX 07/22/2015 15:38:26 Page 219 INDEX A/B subject-line testing, 48, 54 Acquisition, 59–60, 70–73 AdWords, 37, 125 Age, and relevance vs privacy concerns, 13–14 AlchemyAPI, 108 Amazon, 82, 200 Amazon Prime, 121 American Marketing Association, 210 Android, 147, 150 Apple, ix, 150 Application programming interface (API), 127 Arby’s, 106 Art, marketing as, 28–29, 120–121 Audience segmentation, See also Segmentation Authenticity, 106, 114 Automated programs: definition of, rounding out digital enhancements with, 49–50 Automation: for data capture/hygiene, 131–133 email, 85–89 by Silverpop, 100–101 use of, in campaign creation, 145 B2B marketing, see Business-tobusiness marketing B2C marketing, see Business-tocustomer marketing BabiesRUs, 92 Basic segmentation rules, 130–131 Batch-and-blast marketing, 86, 89–90 “Batch and blast” marketing, 85 Baumgartner, Felix, 60 Behavior, as key to marketing, Behavioral marketing, reasons for focusing on, 6–7 Behavioral marketing campaigns, examples of, 9–12 Behavioral marketing manifesto, xvii–xxi Behavioral marketing quotient, 18–19 Behavioral scoring, 42 219 WEBBINDEX 07/22/2015 15:38:26 Page 220 220 Best Friend Brand(s), 189–206 Creative Market as, 200–202 definition of, 8, 189 Delta Air Lines, 203–205 eBags as, 197–200 GILT Group as, 194–197 prospect nurturing by, 61 research on, 191 Spotify as, 192–194 Blacklists, 81, 86, 165 Branch, Allan, 63 Brands and branding See also Best Friend Brand(s) personal brands, 209–211 and social networks, 110–112 Brand voice, 106 Browse abandon: definition of, as digital enhancement, 50 in marketing campaign, 144 Budgeting, 42–43 Buffer, 60 The Bulletin, 60 Burnett, Leo, 28 Business challenge(s): budgeting as, 42–43 data capture and hygiene as, 123–124 Business-to-business (B2B) marketing, xi–xii, 6–7 and acquisition, 59 and automation, 145 INDEX with deep considerers, 162–163 and nurture marketing, 87 and path to first purchase, 73–75 and prospect nurturing, 60–62 and segmentation, 138, 139 Business-to-customer (B2C) marketing, xii, and acquisition of B2C brands, 60 and prospect nurturing, 62 Business value, adding, 122 Buying habits, customers’, 48 Buy now links, clicks on, 98 Call centers, 102–106 Campaign creation, 135–148 great creative in, 146–148 importance of segmentation of, 136–142 logic and queries in, 143–144 and use of automation, 145 Career success, 207–212 and getting promoted, 211–212 and your personal brand, 209–211 Carpet-bombing prospecting, 94 Cart abandon: definition of, as digital enhancement, 49 Cart abandon content, 9, 10 WEBBINDEX 07/22/2015 15:38:27 Page 221 Index Catalog marketing, 91–92 Centralized customer databases, 33–34 Challenging environment(s), 183–188 documenting in, 186–187 experimenting in, 186 planning in, 185–186 small company as, 184 working alone as, 184–185 Change(s): leadership, 27 making incremental, 46–47 scaling, 6, Channels, 83–117 call centers, 102–106 direct mail, 90–94 e-mail, 84–90 mix of, for measurement/ optimization, 158–160 mobile applications, 115–117 sales, 94–102 social networks, 106–115 Channel delivery, 76 Children’s Online Privacy Protection Act (COPPA), 13 Click-through rates (CTRs), 157–158 Click-to-open rate (CTOR), 158 Clothing retailers, 86 CLV, see Customer lifetime value 221 CMOs: hiring by, 32 in marketing reporting structure, 25 new, 27 role of, 41–42 CMS (Content Management System), 46 College degrees, 30 Comcast, 9, 10, 88 COMDEX, 123 Communication: fragmentation of, with mobile apps, 154–155 and leading the conversation, 214–215 Company size, 30–31 Completed records, percentage of, 167–168 Constructive dissatisfaction, 168–170 Consumer packaged goods (CPG) companies, 31 Consumer Reports, 109 Content Management System (CMS), 46 Content strategy, 42, 57–68 for acquisition, 59–60 customer interaction points in, 59 definition of, with postpurchase campaigns, 64–66 WEBBINDEX 07/22/2015 15:38:27 Page 222 222 Content strategy (Continued ) for prospect nurturing, 60–62 responsibility for, 66–67 for retention/loyalty, 62–64 Conversion rate, 99 Corporate Executive Board, 57, 180 Cost-per-acquisition (CPA), 159 Cost-per-click (CPC), 159 Cost per thousand (CPM), 33, 34, 37, 125, 126, 128, 129, 138, 159 Cost-to-serve models, 76 CPA (cost-per-acquisition), 159 CPC (cost-per-click), 159 CPG (consumer packaged goods) companies, 31 CPM, see Cost per thousand Creative, great, 146–148 Creative function, 26 Creative Market, 200–202 Credit score, as demographic factor, 97 CRM (customer relations management), 46, 79 CRM systems, 100 Cross-channel activation, 92 Cross-sell offers, 66 Customers, buying habits of, 48 Customer focus, 3–4 Customer IDs, 129–130 Customer interaction points, 59 INDEX Customer journey mapping, 69–82 acquisition, 70–73 and building new programs, 79–81 current state of, 69–70 and optimizing existing programs, 81–82 path to first purchase, 73–75 path to repeat purchase, 75–77, 161–162 steps in, 77–82 and understanding stakeholder relationships, 79 using data analysis for, 78–79 Customer lifetime value (CLV), 79, 81, 92, 131, 168, 170 Customer relations management (CRM), 46, 79 Customer support, social networks and, 110–112 Dark conversions, 89 Data analysis, 78–79 Database marketing managers, 26 Data capture and hygiene, 119–134 and business challenges, 123–124 customer ID scheme for, 129–130 dedicated staff for, 133–134 WEBBINDEX 07/22/2015 15:38:27 Page 223 Index and focus on capture vs hygiene, 124–127 importance of, 121–123 key tactics with, 127–134 master database for, 127–129 program automation capability for, 131–133 science vs art of, 120–121 segmentation rules for, 130–131 Data schemas, 71 Datasift, 108 Deep considerers, 162–163 Deliverability, Delta Air Lines, 83–84, 104, 106, 111, 163, 203–205 Delta SkyDining, 205 Delta Sky Miles, 12, 83, 163, 199 Demographics, 97–98, 137 Digital marketing, 4–5, 37, 48 Digitas, Direct mail, 90–94, 155–159 Directors: hiring, 32 in marketing reporting structure, 25 and planning, 43 role of, 40–41 Disinterested recipients, 165–167 Documenting, in challenging environments, 186–187 223 DoubleClick, 37 Dove, 28 Dunbar, Robin, 189–190 Dyson, 104 eBags, 197–200 Efficiency, 47 80/20 rule, 92 E-mail, 84–90 Email: mixing, with other channels, 158 mobile vs., 152 opening, 98 two-touch postpurchase email campaign, 65 Email Benchmark Report, 61 Email channel, 32–33 Email marketing, x–xii, 9, 10, 12, 18, 48, 54 Email platforms, 33 Email service providers (ESPs), 32–33 Engage (marketing platform), xii “Engagement” score, 62 Enterprise resource planning (ERP), 21 ESPs (email service providers), 32–33 European Union, 13 Events, in-store, 51–52 WEBBINDEX 07/22/2015 15:38:28 Page 224 224 Executives: and increased sales, 123 lack of support from, 52–53 Experimenting, in challenging environments, 186 Explicit preferences, 137–138 Facebook, 106–109, 113–115 Failure, reasons for, 52–55 Families, 137 Farris, Paul, 161 Federal Trade Commission, 91 First-purchase path, 73–75 Fishkin, Rand, 207–208 Flickr, 113 Formula One, 60 Foursquare, 9, 11, 150, 204 Freemium model, 24–25 Gender, 137, 138 Getting started, 214 GILT Group, 194–197 Gmail, 81, 137 Google, 8, 37, 86 Google+, 113 Google Analytics, 71 Google Glass, 155 GPS, 150 Graco, 104 Great Recession of 2008, 104 “Grit,” 180 Groupon, 164–165 INDEX Harvard Business Review, 171 Health Insurance Portability and Accountability Act (HIPPA), 13 Hertz, 203 Hickey Freeman, 195 Hilton Honors, 130 Hilton Hotels, 104 Hiring practices, 29–32, 43, 133–134, 181 Home ownership, as demographic factor, 97 Hoover, 104 Hotmail, 8, 86 HTML, 147, 155 IBM, xiii, 5, 53 IBM Commerce group, IKEA, 92 Implicit preferences, 137–138 Inbox, mobile app, 116–117 Incremental changes, making, 46–47 InsideView, 127 Instagram, 113 In-store events, 51–52 In-store sales, 48, 50–52 Interactive voice response (IVR), 9, 10, 83, 103, 171 Internal support, lack of, 53–54 Internet Service Providers (ISPs), 8, 62, 86, 137, 152, 159 Intuit, 63 WEBBINDEX 07/22/2015 15:38:28 Page 225 Index iOS, 147, 150 IP addresses, 33 ISPs, see Internet Service Providers IT, 21, 26, 53, 128, 133, 143 IVR, see Interactive voice response JavaScript, 9, 46, 49 John Varvatos, 195 Key performance indicators (KPIs), 39, 82, 161, 166, 167, 212 Kroger, 92 Leadership changes, 27 Lead generation, 97–98 Lead Generation Cards, 112 Leading the conversation, 214–215 LessAccounting, 63 Lexus, ix LinkedIn, 106, 113, 114, 126 Lists, growing your, 49 Listening, 107 Logic (in campaign creation), 143–144 Loyalty, content strategy for, 62–64 Loyalty programs, 51, 75 Macy’s, 200 Managers: 225 hiring, 30, 32, 181 in marketing reporting structure, 26 role of, 39–40 Managing upwards, see Challenging environment(s) Market dynamics, 43 Marketing: art vs science in, 28–29 definition of, 107 Marketing analysts, 26 Marketing channels, see Channels Marketing function, 25–26, 38–42, 67 Marketing Metrics (Farris), 161 Marketing qualified leads (MQLs), 95 Marketing team, 177–181 and data capture/hygiene, 133–134 hiring/grooming managers for, 181 key attributes for members of, 177–180 pushing your, 216 Master database, 127–129 Measurement and optimization, 157–174 with completed records, 167–168 constructive dissatisfaction with, 168–170 WEBBINDEX 07/22/2015 15:38:29 Page 226 226 Measurement and optimization (Continued ) with deep considerers, 162–163 with disinterested recipients, 165–167 key metrics for, 160–168 mixing channels for, 158–160 with raving fans, 163–165 with repeat purchasers, 161–162 and scoring, 170–173 Microsoft Dynamics, 100 Mobile applications (mobile apps), 115–117, 149–156 email vs., 152 and fragmentation of communication, 154–155 and history of mobile, 150–152 mixing, with other channels, 159 notifications with, 153–154 and operating system, 147 SMS vs., 153 Mobile platforms, 20–21 Moz, 207, 208 Multichannel users, 83 Multitouch nurture programs, 86–89 Net Promoter Score, 8, 18, 171–173 INDEX NetSuite, 100 New programs, building, 79–81 “Next Six” method, 46–52, 214 Nike, 17 Nokia, 153 Nordstrom, 12, 13 Notifications (mobile apps), 153–154 Nurture marketing, 87, 95–96 Nussey, Bill, ix–xiv, 22 Online sales, in-store vs., 48 Operating systems, 147 Optimizing existing programs, customer journey mapping and, 81–82 Oracle, 21 Outsourced (sitcom), 102 Paid media, mixing, with other channels, 159 Path (application), 190 Path to first purchase, 73–75 Path to repeat purchase, 75–77 Personal brand, your, 209–211 Personalization: assessing your marketing, 17 in email marketing, x–xi Pinterest, 109, 113, 114 Planning: in challenging environments, 185–186 importance of, 42–43 WEBBINDEX 07/22/2015 15:38:29 Page 227 Index Point-of-sale (POS) systems, 51 Postpurchase campaigns, 64–66 Potential, hiring for, 30, 31 Preferences, implicit vs explicit, 137–138 Presales research, 109 Privacy, relevance vs., for young consumers, 13–14 Program enhancement, 48 Promoted, getting, 211–212 “Propensity-to-buy” score, 62 Prospect nurturing, 60–62 Push notifications, 116 Queries (in campaign creation), 143–144 QuickBooks, 63 The Quiet Revolution in Email Marketing (Nussey), x–xi Ranking models, 99 Raving fans, 163–165 Red Bull, 60 Reddit, 113, 114 Regression analysis, 75 Relentless, being, 214–215 Relevance, privacy vs., for young consumers, 13–14 Repeat-path purchase, 75–77 Repeat purchasers, 161–162 227 Requests for proposals (RFPs), 138 Research, presales, 109 Results, underwhelming, 54–55 Retail sales, 48, 50–52 Retention, content strategy for, 62–64 Return on investment (ROI), 21, 22, 71–72 Revenue, 122, 214 Revenue per transaction, 76 RFPs (requests for proposals), 138 ROI, see Return on investment Salaries, 30 Sales, 94–102, 123 Salesforce, 100 Sales-qualified leads (SQLs), 95, 163 Samsung, 153 SAP, 21 Satmetrix, 171 Scaling change, 6, Scoring: of audience segments, 49, 137, 139–142 automation of, 145 as functionality, 96–97 and measurement/ optimization, 170–173 Search engine optimization (SEO), 163 WEBBINDEX 07/22/2015 15:38:29 Page 228 228 Segmentation: audience, 49 and data capture/hygiene, 130–131 importance of, in campaign creation, 136–142 SEO (search engine optimization), 163 Short message service (SMS), 150, 196 mixing, with other channels, 159 mobile vs., 153 SIC (standard industrial classification) codes, 125 Silverpop, xi–xiv, 5, 23, 26, 83 automation by, 100–101, 126 nurture marketing by, 87 prospect nurturing by, 60–61 query engine of, 143 and SaaS model, 94–95 Simple mail transfer protocol (SMTP), 159 SiriusDecisions, 127, 163 SKUs, 132 Small organizations, working in, 184 SMS, see Short message service SMTP (simple mail transfer protocol), 159 Snapchat, 113 Social networks, 106–115 INDEX and brand vs support, 110–112 choosing, 112–115 human touch factor needed in, 106 and marketing vs listening, 107–110 mixing, with other channels, 159–160 Social proof, 109–110 “Social proofing,” 64 Software-as-a-service (SaaS), 21, 31, 73, 94–95, 128–129, 143, 208 SPAM, 86, 152, 165 Spamhaus, 81 Specialists: hiring, 30 in marketing reporting structure, 26 role of, 38–39 Spotify, 116, 192–194 SQL, see Sales-qualified leads; Structured Query Language Square, 60 Stakeholder relationships, understanding, 79 Standard industrial classification (SIC) codes, 125 Starbucks, 106 Starwood, 203 Structured Query Language (SQL), 143 WEBBINDEX 07/22/2015 15:38:31 Page 229 Index Subject-line enhancements, 48 Success: career, 207–212 keys to, 214–216 Success rate, assessing your marketing, 17 SVPs: hiring by, 32 in marketing reporting structure, 25 new, 27 Target, 11–12 Team, marketing, see Marketing team Technology, 20–22, 32 Technology stack, 20, 32–34 Technology upgrades, 43 Time, insufficient, 47, 54 “Top-kill” value, 98–99 Tracking, audience, 49 Tradeshows, 123 Tribal DDB, Triggered messages, 8, Tumblr, 113 Tumi Luggage, 195 Twitter, 106–109, 112–115, 196 Two-touch postpurchase email campaign, 65 229 United States Postal Service, 93 University of Oxford, 189 UPS, 5, 30, 53 Vine, 113 Vision, 27 VPs See also SVPs in marketing reporting structure, 25 and planning, 43 role of, 41 Vtrenz, xii Wayne, Lil, 28 Website purchase pages, visits to, 98 Website visits, data on, 135–136 Web tracking, Welcome campaign, as digital enhancement, 50 Whiteboard Friday, 207 Working alone, 184–185 Xfinity, 88 YouTube, 113, 115 Zappos, 74 WEBBINDEX 07/22/2015 15:38:31 Page 230 WILEY END USER LICENSE AGREEMENT Go to www.wiley.com/go/eula to access Wiley's ebook EULA ... CONTENTS Foreword by Bill Nussey Acknowledgments The Behavioral Marketing Manifesto Part ONE Part GETTING STARTED WITH BEHAVIORAL MARKETING Behavioral Marketing: More Sophisticated Audiences, Smarter... Where Are You on the Behavioral Marketing Spectrum? 15 Gearing Up for Behavioral Marketing: The Roles, People, and Systems Needed to Win 23 TWO ix xv xvii PUTTING BEHAVIORAL MARKETING INTO ACTION... marketing effort We’re going to cover topics far and wide on behavioral marketing from how to refactor WEBC01 07/23/2015 1:17:30 Page 6 BEHAVIORAL MARKETING each of your channels to be more behavioral