Kevin Hillstrom: MineThatData

Exploring How Customers Interact With Advertising, Products, Brands, and Channels, using Multichannel Forensics.

July 06, 2009

MeritDirect Co-op

If you're attending the MeritDirect Co-op this week, and want to chat about your Multichannel Forensics project, send me a message via e-mail or via Twitter.

Better yet, come to my session at 3:00pm on Thursday. You'll learn all about how Micro-Channels are playing a key role in the Multichannel Forensics projects I'm working on ... and you'll learn how to save money and increase profit in your online marketing and catalog marketing activities. What's not to like about that?!

Ralph Drybrough, JoAnne Carrier, and the rest of the nice folks at MeritDirect do a solid job. I feel fortunate to be able to share my findings with the audience on Thursday!

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July 14, 2008

MeritDirect Co-Op Wrap-Up

Few things I've done have generated as much interest and feedback as the talk on Non-Traditional Online Customer Acquisition at the MeritDirect Co-Op. Thanks to Ralph Drybrough for putting on a unique conference, a conference that is about delivering value for the attendee, not about creating value for the folks putting on the show.

Much of the chatter surrounds the story I told about selling our home in forty-eight hours. Here is a link to The Cascade Team, the real estate agency that uses online marketing, business intelligence, and a huge discount on fees to gobble up market share and move homes in a sluggish economy.

We spoke with the owner on Saturday. He simply cannot keep up with the need to hire new staffers. When new employees see how he uses data to make decisions, he tells me the employees are floored. You'll probably think that their website isn't beautiful, and that's fine. We spend too much time working on beautiful sites. They work on moving homes using business intelligence.


Many of you expressed interest in the concept of using copy as a customer acquisition tool. Few folks ever talk about copy as an important element of the conversion process. It is important!

If you don't use copy to increase conversion rates, you may as well use copy to gain intelligence.

For instance, take a look at the article from Friday. Look closely at the two links that I used to allow you to download the presentation.

Notice anything odd?

Each link points to the same presentation.

The link that says "if you weren't in attendance, download this version instead' has been clicked five times as often as the link for folks who attended the session. In other words, folks who did not attend the session want to learn what was presented.

Many online marketers thoroughly understand this stuff --- but for most of us who aren't thoroughly immersed in using copy as a conversion tool, we have opportunities.

Online copy marketing (here's a new acronym for you --- OCM) is different from blogging, different from SEO. Blogging is all about the writer, or all about the community --- no wonder it doesn't drive sales increases for most brands employing the strategy. SEO is often a niche led by technical experts and web analytics gurus, audiences that are critically important, but not audiences that capture the fancy of the "C-Suite" leader.

Online copy marketing is different. We identify the topics that drive audience engagement, then we modify our message to be even more relevant to the audience. The process takes A LONG TIME, no quick fixes here. The process allows us to acquire customers the old fashioned way, via a relevant relationship that benefits the customer.

We'll explore the topic in more detail in upcoming posts.

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July 11, 2008

MeritDirect Co-Op Slides: Non-Traditional Online Customer Acquisition

For those of you who were in attendance today and asked for digital copies of the presentation, here you go: Non-Traditional Online Customer Acquisition.

If you weren't in attendance, download this version instead.

Thanks to all of you who stopped by to say hello at some point over the past three days, I really enjoyed meeting so many enthusiastic direct marketers!

And for those of you who quizzed me on my position about best practices, I'm not against best practices, I'm against blind adoration of best practices without testing what is appropriate for your brand. I did enjoy the discussion!

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July 07, 2008

Non-Traditional Customer Acquisition At The MeritDirect Co-Op

On Friday at the Merit Direct Co-Op, I will give a presentation on Non-Traditional Customer Acquisition.

In traditional direct marketing, we rented or exchanged lists, with the goal being to identify new audiences that are receptive to our message. We paid an intermediary (Millard, MeritDirect, Abacus) a sum of money for the opportunity to push a message.

In traditional online marketing, we pay for clicks. We pay an intermediary (Google, Yahoo!, MSN) a sum of money for the opportunity to allow the customer to pull content from us.

Financially, the two models are nearly the same.

Paid Search




Clicks
10,000
Conversion Rate
1.5%
Buyers
150
AOV
$100.00
Demand
$15,000
Net Sales 80.0% $12,000
Gross Margin 55.0% $6,600
Less Ad Cost $0.52 $5,200
Less Pick/Pack/Ship 11.5% $1,380
Variable Profit
$20
% of Net Sales
0.2%
Ad to Sales Ratio
43.3%
Dollar per Click
$1.50






List Rental/Exchange




Households
10,000
Response Rate
1.5%
Buyers
150
AOV
$100.00
Demand
$15,000
Net Sales 80.0% $12,000
Gross Margin 55.0% $6,600
Less Ad Cost $0.52 $5,200
Less Pick/Pack/Ship 11.5% $1,380
Variable Profit
$20
% of Net Sales
0.2%
Ad to Sales Ratio
43.3%
Dollar Per Book
$1.50

These days, innumerable pundits tell us that both models are irrelevant in a social media world. Of course, the pundits cannot even identify what form of social media is relevant (2005 = Blogs, 2006 = Facebook, 2007 = Twitter, 2008 = Friendfeed & Plurk), they just tell us we're dodo birds headed for extinction. Still other pundits say that print-based marketing is harmful to the environment, demanding that consumers be in control of how they are marketed to (as a proxy for protecting the environment).

My talk will go in a different direction, not leaning toward social media pap, not focusing on traditional direct mail or pay-per-click marketing or multichannel approaches to success or putting the customer in charge.

My talk will focus on how we can derive intelligence from our online marketing activities, transforming that intelligence into the fuel needed to find new customers at almost zero cost.

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