Categories
Uncategorised

Revenue from email has increased 28% in one year – where to next?

If 2013 was the ‘year of mobile’, are companies now ready to enter the age of the customer? Steve Denner (pictured) explores how email marketing can lead the way.6I4F0577

Last year was all about mobile, as email marketers really turned their attention to exploiting M-commerce. Around a fifth more companies took a more strategic approach to incorporating mobile optimisation into their email activities, reveals The Adestra/Econsultancy Email Marketing Industry Census 2014 (based on a survey of some 1,100 marketers).

The Census indicates that mobile email has become the new reality, and marketers are integrating it into their workflow. As new technologies become mainstream, the hype dies down, and they are perceived as just another standard channel in the mix. The same happened with social media.

The Year of the Customer

Where 2013 was the ‘year of mobile,’ could this year be dubbed ‘year of the customer?’ If Forrester is correct in predicting that we are entering the ‘age of the customer,’ 2014 may well be the year marketers start to truly focus on the end-user. And what better place to begin developing a culture of customer obsession than email marketing? Email is a mature channel delivering proven results. To successfully use it you need to combine the available technology and human insight, and also take advantage of the email provider’s advice and support. Not convinced? Read on for key insights from companies that are getting it right.

In terms of Return on Investment, research shows that there is no better digital communications channel than email: 68% of companies rated it good or excellent. This marks a 3% increase since last year, surpassing search engine optimisation for the first time since 2009. Furthermore, email is also the best channel on which to focus your budget, as companies attributed 23% of their total sales to this channel. This is despite the fact they only spent 16% of their marketing budget on email.

And there are still significant areas for improvement in this mature channel. Such areas are campaign performance and automation, with over half of email marketers rating their own performance as average or poor. Implementing marketing automation is also considered a struggle as half deemed it unsuccessful.

Achieving results with automation

Companies understand the opportunities of automation, with 83% of companies declaring ‘more relevant communication’ as one of its main benefits. More than 70% of organisations are also aware that it can help ‘increase customer engagement’ and facilitate ‘more timely communication’ with customers. Nearly all companies have access to marketing automation capabilities provided by their email providers. So what’s the problem?

Despite the widespread availability of automation technology, most companies appear to be taking a timid approach towards it. Around half use ‘subscription or sign-up to website’ and ‘automated response to website visit/sign-up’ triggers, yet no more than 27% of companies report using other triggers or behaviours. This may well be affecting the success of automation programmes, as only 4% of companies have described their automated campaigns as very successful.

Finding the time to make it happen

Companies must make sure they are resourcing themselves effectively for email marketing. Planning, optimisation and reporting are all critical to ensure marketers understand buyer behaviour and improve response. Yet it appears marketers are spending too much time on the creative elements of their campaigns. Nearly two-thirds of companies are spending 2-8+ hours on design and content for a typical campaign. In comparison, around half as many are spending at least two hours on strategy and planning, and data quality. Worryingly, nearly one third admit to spending no time at all on optimisation.

Email’s role in the future

Marketers appear optimistic that email marketing will survive the supposed threats to its existence. Not only that, but they believe it will thrive in a fully integrated, personalised, yet not completely automated ecosystem. What’s more, two-thirds believe email will continue to be one of the highest channels for delivering ROI.

The vast majority of companies agree that email will be fully integrated with other marketing channels, and that all email communication will be completely personalised by 2019. However, marketers appear undecided as to what this integration will look like.

In summary

Accepting that we are entering the ‘age of the customer’, email marketing can point the way. Yet there is still a long road to travel to optimise its efficiency, interpret and use all the valuable data available. Equally, the ‘age of the customer’ is difficult to define. Which means companies must do a lot of work to implement strategies for exploiting their new customer obsession.

Steve Denner is a director at Adestra. Read the full results by downloading the census here. 

Categories
Europe In the News UK

Ageing UK: Experian reveals insight into modern British pensioner

Retirees look to market towns and larger villages for a quiet but more cosmopolitan life.

As the ageing population rapidly increases in the UK, new and divergent groups of retirees are emerging, displaying a range of new traits such as wider internet adoption and changing property preferences, according to the latest analysis from Experian’s new Mosaic people classification. This trend will have a wide impact on a range of services, on the high street, the housing market and local authority planning.

Research has highlighted the growth of two new groups of older people – Village Retirement and Diamond Days, who have grown apart from the two more classic groups of Senior Security and Vintage Value. Recent figures from the ONS have highlighted the growth in the older population of the UK, showing that one in six people (16.4 per cent) in England and Wales was aged 65+ in 2011, with the number of over 90s growing from 340,000 in 2001 to 430,000 in 2011 – findings that emphasise the increasing diversity of elderly lifestyle and experience in the UK.

Rise of the Senior Market Town Retirees

Characterised mainly by the Mosaic Type Village Retirement,  Experian has identified a group of people dubbed Smarties:  traditionally couples and singles aged 65-plus, who have chosen to move to market towns for retirement. They now live in village locations, within thriving communities that are large enough to give them access to the local amenities they require for their everyday living and social needs. Characteristics of this group include:

  • Good health, higher pensions and savings, and more active than most pensioners of a similar age
  • Having been well-educated and enjoying long careers in higher managerial and professional positions, Village Retirement are comfortably-off with no outstanding mortgage and average household incomes of up to £29,000
  • High consumption of goods and services compared to their less-affluent peers
  • Prefer to shop in more upmarket supermarkets that prioritise provenance and quality over price
  • There are around 800,000 people within this this group living in the UK
  • Have downsized from family homes to spacious three or four bedroom properties
  • More likely to own a computer for internet access compared to other people of similar age

Top 10 towns for Village Retirement

  • Evesham
  • Dorchester
  • Yeovil
  • Cirencester
  • Kendal
  • Salisbury
  • Banbury
  • Bury St Edmunds
  • Stratford-upon-Avon
  • Bangor (Gwynedd)

Nigel Wilson, managing director of Consumer Insights & Targeting at Experian Marketing Services, UK&I, said: “Smarties – made up largely of our group Village Retirement – are a distinct type that are part of a rising trend of better-off retirees who, instead of staying in the family home or moving to the coast as they might have done in the past, are downsizing, freeing up assets and starting new lives in attractive towns and small cities across the UK.

”These types have a distinct set of needs with regard to a wide range of issues – downsizing house size and shopping for different groceries, normally from higher end convenient supermarkets that use smaller ‘local’ stores, being two examples. Preferences held by these groups will shape the areas in which they settle, with the desire to downsize likely to impact younger groups moving up the property ladder, and shopping preferences shaping the local high street.”

Older, happier, more comfortable

The second new type identified by Experian is Diamond Days: retirees who have stepped down from high earning roles to enjoy a comfortable retirement in large, mortgage-free houses that were once home to their families. Other key features of this group include:

  • Affluent, older retired couples, no longer financially responsible for younger generations
  • High disposable income, desirable four or five bedroom homes, travel widely and clustered in the South East of England
  • A smaller group; there are around 520,000 people within this type in the UK More likely to use a tablet compared to others of a similar age

Top 10 towns for Diamond Days

  • Epsom
  • Maidenhead
  • Guildford
  • High Wycombe
  • Farnham
  • Woking
  • Redhill
  • St Albans
  • Camberley
  • Orpington

Decline of the ‘average’ British pensioner – a snapshot of elderly diversity A further two types have grown out of larger groups identified by Experian that coincide more closely with previous views of the older population. Broadly, these groups are split between those who have retired with a reasonable nest egg and a pension to rely on, to those whose finances may be more strained:

Senior Security:

  • Senior Security are elderly singles and couples who are still living independently in comfortable homes that they own, and have often chosen to retire to the seaside
  • Considerable equity in property – many own their homes outright and have chosen to remain in family homes after the children have left
  • Top locations include: Bournemouth (Boscombe), Eastbourne, Hempstead Valley, Worthing and Bognor Regis

Vintage Value:

  • Elderly people who mostly live alone, either in social or private housing, often built with the elderly in mind
  •  Levels of independence vary, but with health needs growing and incomes declining, many requiring an increasing amount of support
  • Top locations include: Sunderland, Chester-le-Street, Washington, Motherwell and Merthyr Tydfil

Wilson added: “Our research has found that these emerging groups within the older age bracket have distinct tastes and needs in terms of housing and product preferences which stand apart from previously held generalisations regarding older groups within the UK. As the older population of this country increases it will become more important than ever before for organisations that want to reach this age bracket – be they retailers or local councils – to understand them and ensure that they are seen not as one identical group, but as a section of the population with a broad range of varied interests and lifestyles.”

Experian unveiled a new version of Mosaic in April 2014, which offers new insight into demographic shifts in the population of the UK. Modelled using the latest Census data, Mosaic offers insight into households, living patterns and the shape of UK cities.

Categories
Uncategorised

Tribute to the late James Thornton

International marketer James Thornton died at the weekend. A memorial service is to be held today in Taguig City, Philippines.james-thornton-web1

James was held in high esteem by global marketers and will be missed.

He wrote for DMI magazine many times and, more latterly, the Global Marketing Alliance. As a mark of respect, and to recall his words of wisdom, here is the link to a recent post, when he shared his knowledge of successfully going global – here.

On a personal note, I always enjoyed his ‘old school’ good manners and twinkling smile. Alongside this gracious charm, he was keenly aware of how to pull off a cracking deal and he put this flair for business to good use over many years, on an international scale.

Although apparently an archetypal Englishman, he truly preferred sunnier climes – he once told me that the first time he got on a plane to the Far East, he felt he was going home.

Home, you are. RIP James.

Our thoughts are with his family and friends.

Categories
Uncategorised

How can brands use video for social good?

Luke Mitchell (pictured), of youth insights consulting business Voxburner – which is running Youth Marketing Strategy in New York on Thursday June 12 – looks at luke-mitchell-b+whow the British Red Cross charity harnessed YouTube for greater good and shares their tips on using video to engage the youth market.

Since 2010, the British Red Cross has been running an ongoing behaviour change campaign aimed at teaching young people first aid skills. Things are going pretty well.

The campaign’s objective is to increase the number of young people who are confident, willing and able to help in a first aid emergency. It targets young people aged between 13 and 24 because, says campaigns manager Paul Donnelly: “We we have an ambition to build a generation of life-savers.”

The work was born out of the Red Cross’s corporate strategy which states they will increase the resilience of the UK population and make first aid easy to learn and easy to use.

What did the campaign look like?

Aware it might struggle to engage young people directly, the Red Cross decided to find influential YouTube vloggers who would be willing to talk about first aid to their audience. It looked for vloggers who had large natural fan bases within its target youth demographic, guaranteeing that they would reach their audience and minimise wastage.

“The vloggers are the messengers who carry the first aid learning to their audience and deliver it in their individual style,” says Donnelly, “which is often quirky with a bit of a twist. It’s entertainment but with an educational message. We did put advertising money behind some of the videos where we wanted to increase target particular interests or groups, but advertising costs were kept at a minimum.”

The British Red Cross researched issues that are relevant to young people and used them as the hook to talk about first aid. For example, when talking about putting someone in the recovery position, they talk about being unconscious as a result of alcohol. “Because we know that people aren’t going to want to watch a first aid film, we aim to make the subject matter – and the style – more relevant and engaging to the audience.” Vloggers went away and created their own videos according to a brief, for example this ‘Fireworks Fail’ bonfire night safety tips video.

What did the campaign achieve?

Donnelly used videos and issues to generate PR hooks in mainstream media. A very successful example was activity conducted on the subject of swallowing a harmful substance. “We used self-harm as the vehicle to talk about intentional self-poisoning and the subsequent first aid. We took National Health Service data to create a PR hook that we could use beyond the sphere of YouTube and this generated widespread coverage in mainstream media, including coverage on the UK’s Radio 1, Sky News, ITN, Daybreak morning TV show and BBC news.”

Collectively, the films have been viewed more than 7.5 million times, to date. They’ve achieved strong levels of engagement, between 2.4% and 6.4%. What’s more, engagement has allowed British Red Cross to respond to people’s questions or to correct misinformation in real time.

“This strategy has proven hugely successful,” says Donnelly. “First aid is an incredibly difficult subject to get the general public interested and engaged in, let alone young people. It has a reputation for being old-fashioned and is often associated with health and safety. We wanted to drag it into the 21st century and give it a makeover.”

But it’s not just about the big numbers. Demonstrating impact and changing behaviour is British Red Cross’s main priority. “Our campaigning work aims to achieve a wider benefit to society. And we’ve taken research and evaluation incredibly seriously. This has included evaluating whether the films have shifted key metrics including confidence and willingness to respond in a first aid emergency as well as whether people have taken up the first aid learning.

“All the films have significantly increased these measures, but as an example the film featuring how to treat a bleed from a knife wound increased confidence from 20% to 80% when rated on a scale of 1-10.”

The campaign won a major award in the UK, the Chartered Institute of Marketing’s third sector campaign of the year award, and was also chosen out of all of the winners on the night to win the chairman’s award: a recognition that marketing isn’t just about making a profit there is a wider benefit to society.

What can brands learn?

  • Recognise your perception among young people and don’t be too proud to allow influencers to carry your message
  • Give YouTubers the creative freedom to work out what their audience will respond to and don’t expect them to compromise their principles or style
  • Leverage the media’s interest in YouTube celebrities to gain mainstream PR wins for your campaign.

Voxburner is running Youth Marketing Strategy in New York on June 12, bringing together the top thought-leaders, brands and agencies driving today’s fast-moving world of youth marketing and communications. Speakers include Spotify, MTV, Facebook / Instagram, TUI Travel, Tumblr, Mixcloud, Group Y, Econsultancy and more. For 10% off the registration fee, use discount code GMA10 when registering your place.

Luke Mitchell is head of Insight at Voxburner.

Categories
In the News

DHL relocates giraffe to its new home in Israel

It’s not just post and parcels that DHL Global is good at, as a 16-month-old male giraffe called Jengo (pictured) can verify.

He was safely transported more than 3,000km to a new home, thanks to DHL Global Forwarding, which assisted in the relocation from Liege, Belgium,Giraffe to the Ramat Gan Safari in Tel Aviv, Israel.

Jengo was moved via DHL’s international cargo network and arrived safe and healthy in Tel Aviv on Thursday May 22. He will join his respective new herd at the Zoological Center Tel Aviv for a breeding program.

Rafi Rozalis, CEO DHL Global Forwarding Israel, said: “We are committed to supporting conservation and environmental causes around the world. Jengo’s journey is a further opportunity for this and we are glad to have helped Ramat Gan Safari in their mission. Having in mind the requirements for transporting the tallest terrestrial animal on earth, it also gives us the chance to show that we can handle even the most unusual cargo transport.”

In co-operation with Ramat Gan Safari, DHL used a special crate (pictured)  for the transportation of Jengo. The giraffe was flown on a Boeing 747-400 cargo aircraft operated by the Israeli airline El Al and was accompanied by a team of animal keepers and veterinary physicians to secure health and safety at all times. Besides the safety team, the aircraft also took along a daily amount of food supply, weighing approximately 100 kilograms.dhl-giraffentransport

Jengo will join a herd of seven giraffes for a breeding program at Ramat Gan Safari. Giraffes are classified as ‘Least Concern’ by the International Union for Conservation of Nature, although some subspecies are classified as endangered. The Ramat Gan Safari takes care of the largest collection of wildlife in the Middle East. Besides the safari area, visitors have also access to a modern outdoor zoo.

Categories
In the News

Testing begins on customer insight tool

Business Intelligence specialist IT Performs (ITP) is looking for digital marketing teams to take part in trials for a new customer insight tool which can predict the lifetime value of customers.

In association with SAP’s Co-innovation Lab and HANA Partner Engineering teams, IT Performs will be starting beta-tests for Kairos, a breakthrough Customer Value Analytics Platform this summer.

Designed specifically for marketers looking to enhance and evaluate their digital strategies, the cloud-based software will collect and automatically analyse multiple sources of customer-related data, in real time. By predicting the lifetime value of each customer, Kairos offers unprecedented genuine insight into customer behaviour that will help clients understand their customers’ needs so they can offer more relevant products and services, making them more competitive and profitable.

Glen Westlake (pictured), co-creator of Kairos, said: “Using Kairos, our clients will get a simple analytics platform to help track customer value over time using best practice profit and loyalty models. These can be used to influence the focus and level of investments into marketing and customer service and predict the impact on different customer segments. Kairos guides the most appropriate customer retention and acquisition actions necessary to meet customer needs and deliver efficient corporate results.”Glen Westlake CEO IT Performs (WEB)

Combining ITP’s expertise in Customer Lifetime Value (CLV), gained from working with the Telecoms industry over several years, with the advanced capabilities of SAP’s in memory database (HANA), Kairos simplifies this complex data science task by providing pre-built; data extractors (APIs), predictive models and visual analytics, to deliver a simple and easy to use solution to measure and track CLV.

Companies wishing to sign up for the beta program can contact UK-based IT Performs on: 0845 868 5692.

Categories
Africa Americas Asia-Pacific Data Driven Channels Europe In the News Mobile

Mobile wallet – in 1 in 5 handsets by 2018, researcher finds

A new report from Juniper Research has found that 1 in 5 mobile handsets will have mobile wallet functionality by 2018, against less than 1 in 10 at the end of last year.

The report – Mobile Wallets: Strategies for Developed and Developing Markets 2014-2019 – found that growth would be driven by two distinct wallet models. In emerging/developing markets, SVAs (Stored Value Accounts) are increasingly enabling first time financial access for unbanked individuals, and the report anticipated a surge in deployments across sub-Saharan Africa, developing Asia and Latin America.

Meanwhile, the report says that wallet launches across North America and Western Europe are increasingly expected to feature contactless payment functionality. The sector is forecast to receive a boost both from the anticipated launch of an Apple iWallet later this year and through HCE (Host Card Emulation)-based NFC (Near Field Communications) services. According to the report, more than 1 in 3 mobile wallets – and over 50% of wallets in developed markets – will featuring contactless payment by 2018.

P2P Attractive Value-Add

The report also claimed that the mobile wallet profile would be bolstered through high-profile P2P (Person to Person) payment initiatives such as the UK’s Paym, which will be integrated into customers’ existing mobile banking or payment apps as an additional way to pay. At the same time, it argued the mobile P2P market in the US was being driven by a number of start-ups – including Venmo and Dwolla – targeting younger demographics.

According to report author, Dr Windsor Holden: “While P2P mobile payment services have struggled to gain traction in developed markets, financial institutions are keen to commit to them as they can serve as an attractive value-add to consumers in an increasingly cashless society.”

Other findings from the report include:

  • China’s Alipay now has more than 100 million wallet users.
  • HCE threatens operator role in contactless value chain.

The whitepaper, Smart Phone – Smart Wallet – Smart Cash, is available to download from the Juniper Research website together with further details of the full report and the attendant Mobile Wallets IFxl.

Categories
Europe

Foreign direct sales are lost in translation

David Cole (pictured) discusses latest research into the cross-border buying habits of seven European countries.

If you’re direct marketing to consumers in the UK, France, Germany, Holland, Spain, Turkey or Italy, it might be helpful to know that most buyers in all those countries used search engines to source foreign goods and services.

Company websites were second most commonly used, followed by comparison websites and emails, but outside these commonalities (and even within the above findings response rates differ from country to country) buying experiences and habits vary.David Cole, May 2010 (WEB)

But if you’re thinking of dipping your toe into the European direct marketplace, Italy might be a good place to start, since14% of Italians often buy goods direct from other countries. To put this in context, only 5% of the British buy often – less than in the other six countries, followed by 6% of Germans. Click here to view the chart.

Other countries where people often buy direct from abroad are France 12% and Turkey 13%. Half of the French, Dutch and Spanish sometimes do, along with 37% of Germans.

Spain offers potential; 65% often or sometimes buy from abroad, as do 62% of the Dutch.

In mid-February, GMA commissioned online research company fast.MAP to ask panels of French and UK adults about their direct buying habits. These insights were so useful to marketers that, in March, GMA extended the study to take in 344 German, 389 Dutch; 415 Italian, 566 Spanish and 406 Turkish under-65s.

The research indicated some customers have already been alienated by the hurdles of cross-nation purchase – 4% of Dutch and Turkish pioneers won’t try it again, along with 2% of the British, French, Germans, Spanish and Italians.

Germany is definitely the toughest of the seven European direct sales markets to crack. There, only 6% buy often, 37% sometimes and 55% rarely.

Second most foreign-sales resistant after the Germans are the British – 46% often or sometimes; 52%rarely buy.

Once you’ve decided upon which countries to target, you need to decide how to reach potential customers there.

Across the seven European countries, search engines drive an average of 44% of foreign direct purchase. Three countries are above this average: Germany 52%, Italy 50% and France 49%.

Company websites drive an average of 3 in10 direct foreign sales; comparison websites around a quarter (including 3in 10 in Italy and Germany); email an average 23%; and mobile ads an average 6% (the latter includes a massive 20% of Turks).

Across the seven countries an average 6% bought at exhibitions (including 1 in10 of the French, Germans and Italians). An overall average of 1in 10 also bought via direct mail.

An average 12% were motivated by a TV or radio ad; 1 in 5 via an auction site; and 14% in Turkey and Italy bought because of a print ad.

Online ads motivated 37% of Turks, a quarter of Germans and a fifth of Italians; and an average of 17% across all seven European countries bought goods on social media (a figure boosted by 31% of Turks and 25% of Italians). View chart here.

Lost in translation

Language presented more problems in some countries than others.

For example, three quarters of the Dutch, half the Germans and a third of the Spanish who bought direct from abroad spoke the language of the country marketing the goods, whereas 7 in 10 in the UK and 4 in 10 in France bought from native-language websites.

A fifth of Turks, 15% of Spanish and 14% of Italians (average is 12%) overcame problems by using translation software.

9%Turks; 7%Italians; 5%Spanish; 4%French encountered translation software problems. The French were the most likely to persevere and 8% bought despite this.

Exporters are not well prepared to cope with buyers’ language problems. They only offered help to 2% of Dutch, Turks and Italians and 1% of Brits, French; Germans and Spanish. Chart here.

The results suggest sellers need to concentrate on providing as many language options as possible on their websites as well as in their other marketing initiatives and consider spreading their reach by using the sales routes favoured within each country they target.

Since translation software is the source of problems for all but the multi-lingual, lost sales might be avoided if more real-time foreign language help was offered by exporters.

David Cole is MD of online research company fast.MAP. 

 

 

Categories
In the News UK

123-reg takes to the UK airwaves to promote new gTLDs

UK domain registrar, 123-reg, has embarked on a comprehensive television advertising campaign in a bid to encourage viewers to get their businesses123reg online and to drive public awareness of the next generation of generic Top-Level Domains (gTLDs).

The adverts, which are running throughout May and June across a range of sports and men’s interest channels, including Dave and BT Sport, have been developed in conjunction with digital production agency, 383 Project.

Designed to appeal specifically to an ABC1 male audience, the adverts take a humorous approach to explore the possibilities presented by new domains such as .london, .webcam, .club, .xyz, .build and pub, and .dating.

Nick Leech, group marketingdirector at 123-reg’s parent company, Host Europe Group, said: “As a business that talks day-in, day-out, about the importance of being online, this approach may, to some, seem counterintuitive. But for all the talk of the age of the internet, the fact is that there remains a hard core of businesses and individuals that don’t yet feel comfortable online.

“Recent research has found that nearly 50 per cent of UK SMEs have no web presence at all. In taking our message on TV, we aim to show the scope and diversity of new gTLDs, showing that there is one for every different business or person, as well as promoting our brand to a totally new audience.

“Traditional marketing techniques remain incredibly important for businesses, helping to drive and reinforce brand recognition and market awareness. As such, we have made a concerted effort to strengthen our marketing footprint in traditional channels, and this television campaign follows sustained outdoor and above the line activity we have been trialling with considerable success over the past  year,’’ he concluded.

View the advertisement here. 

Categories
Americas Europe Insight Strategy and Management

Marketing and customer insight in a digital world

Professor Merlin Stone is calling for examples of how classic CRM data has been integrated with true digital data to produce good customer insight.

This content is for Free membership members only.
Register
Already a member? Log in here