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Behavioral Marketing :
The end of segmentation
    in B2B marketing
           John Watton, Silverpop
    B2B Marketing Forum, 14th March 2013.

     @jwatton , jwatton@silverpop.com       #b2bnl
#b2bnl
Agenda

•   The empowered consumer
•   Right message, right time, right place
•   Behavioral Marketing
•   Behavioral Marketing @Work




                                             #b2bnl
The empowered consumer




                         #b2bnl
Problem: Noise

The average consumer is exposed to




     30,000         marketing messages per day.

                                              #b2bnl
of UK smartphone owners
                                      say they’ve never seen a
                                      mobile ad
                                                                 #b2bnl
Source: Nielsen Mobile Consumer Survey, Feb 2013
The average social
post has a half-life of




                                mins
                      Source: SEOmoz blog, Feb 2013
                                                      #b2bnl
25%
To get

                                 of your tweets retweeted




         10,000
   You need


                                              followers
                                                            #b2bnl
              Source: SEOmoz blog, Feb 2013
#b2bnl
B2B   B2C




            #b2bnl
B2B   B2C




            #b2bnl
Marketing practice
is ten years behind
 marketing vision.
                      #b2bnl
The Segmented
Audience Approach
                                                                                        Female
                                                                                      Homeowner

                                                                        Male
                                       Female         College           30-40
  Female                Male
Homeowner                            Homeowner       Educated
                        30-40                                                       Female
                                                     With kids
                                                                                  Homeowner

      College                                                         College
     Educated                                                        Educated                 Male
      With kids                                                       With kids               30-40
                                             Male
                                Female       30-40
                              Homeowner
                                                                                  Male
                                                                                  30-40
      Male                                                              Female
      30-40                                                           Homeowner
                                          Male
                                          30-40          College
                   College                              Educated
                  Educated                               With kids                    College
                  With kids                                                          Educated
                                   Female
                                 Homeowner                                            With kids

                                                                                              #b2bnl
Problem:
The Segmented Audience approach is failing




  3%
   Relevant
                  97%
                   Irrelevant
                                      #b2bnl
#b2bnl
Theoretical Needs
        +
  Actual Wants

       1            #b2bnl
Traditional segmentation
     1            2              3
    By Profile   By Preference   By Now?




                                           #b2bnl
Consumers are more demanding




    50%        of German consumers say information is too
               generic.
               Source: Silverpop Survey, Mar 2013

                                                     #b2bnl
Marketers are not responding




       17%       of marketers tailor their message to the
                 individual.
                 Source: Silverpop Survey, Mar 2013

                                                            #b2bnl
The sales cycle
       is
   d.e.a.d.

      2           #b2bnl
56% of the buying process
                                 is invisible to the seller.




“The empowered
customer is
now in control of the
business relationship.”                                   #b2bnl
Source: IBM CMO Study 2011
70%   of B2B buyers use a search
      engine at the start of their
      buying process
      Source: Mediative Whitepaper, Feb 2011




                                               #b2bnl
of C-Level executives prefer to
 locate information themselves




53%
 Source: Carat UK, Mar 2013




                                   #b2bnl
21%   of B2B buyers use social
      media at some point in the
      buying process
      Source: BaseOne Buyersphere 2012




                                         #b2bnl
Marketing needs
  to change
                  #b2bnl
The biggest win:
  by behavior

                   #b2bnl
Shrinking
segments

             #b2bnl
The goal:
segments of one

                  #b2bnl
Right message.
Right time. Right place.

                       #b2bnl
4 steps to behavioral
marketing automation
                    #b2bnl
Step 1: Which behaviors to track?




    Demographics            Email behavior            Social behavior       Web behavior            Off-line behavior

•   Company               • Opened email          •   Likes             •   Pages viewed        •   Salesteam interaction
•   Title                 • Did not open email    •   Comments          •   Links clicked       •   Event attendance
•   Sector                • Clicked on link       •   Shares            •   Cart abandoned      •   Check-ins/QR codes
•   Customer/Prospect       in email              •   Facebook forms    •   Products searched   •   Call centre activity
•   Product preferences   • Bounced               •   etc               •   Forms completed     •   Catalogue request
•   etc                   • No mailing activity                         •   Files downloaded    •   etc
                          • etc                                         •   Videos viewed
                                                                        •   etc


                                                                                                                            #b2bnl
Step 2: Unify into one customer view
                                        LOCATION
                   EMAIL




         WEBSITE                                   ECOMMERCE




     SOCIAL                                              CRM




                           BEHAVIORAL
                            DATABASE                           #b2bnl
Step 3: Automate something!
•   1. Welcome/Onboarding
•   2. Browse Abandonment
•   3. Recommendation
•   4. Product Review Request
•   5. Replenishment/Re-order
•   6. Password renewal/reminder
•   7. Trials
•   8. Cross Sell
•   9. Purchase Anniversary/Renewal
•   10. Re-engagement
                                      #b2bnl
Step 4: Personalize channels (e.g. email)
                                  Subject Line Personalization
                              1   First name personalization
 1                                Personalized Content
                                  Name and contact info for each customer’s
                  2       6       personal rep
                                  Dynamic Subject Lines
                              2   The subject line changes based on the type and
                                  duration of club membership
                                  Individualized Content Lists
                              3   For any customer who has purchased two or more
                                  items in the last 90 days, list each purchase
                                  with review links
                                  E-commerce-driven Personalization
                              4   Display totals and other engaging content to drive
                                  follow-on purchases.
                      7           Website-driven Content
                              5   Directly track each customer’s web activity and
                                  prompt them to visit new areas of the site.
                                  Send Time Optimization
      3                       6   The message arrives in each individual’s inbox at
                                  precisely the time that individual is most likely to
                      1           check email.
                                  Data-driven Dynamic Image
                              7   Image is selected based on demographic and
          4                       profile info
                      8           Score-driven Dynamic Offer
              5               8   Discounts/prices vary by social influence #b2bnl
                                                                            and time
                                  since last purchase
Behavioral Marketing @Work




                             #b2bnl
Lead score on demographics & behaviors
                         Heavy                   Behavior                  Low
                        Interest                                         Interest


             Profile      1            2                       3           4


 Great Fit     A       32+/15+     32+/10-14                32+/6-9     32+/0-5



               B       20-31/15+   20-31/10-14              20-31/6-9   20-31/0-5



               C       10-19/15+   10-19/10-14              10-19/6-9   10-19/0-5



    OK fit     D        0-9/15+     0-9/10-14                0-9/6-9     0-9/0-5




                                                                                    #b2bnl
Prioritize “sales-ready” leads
                         Heavy                   Behavior                  Low
                        Interest                                         Interest


             Profile      1            2                       3           4


 Great Fit     A       32+/15+     32+/10-14                32+/6-9     32+/0-5



               B       20-31/15+   20-31/10-14              20-31/6-9   20-31/0-5



               C       10-19/15+   10-19/10-14              10-19/6-9   10-19/0-5



    OK fit     D        0-9/15+     0-9/10-14                0-9/6-9     0-9/0-5




                                                                                    #b2bnl
Behavior Driven Automation
Campaign    Campaign
Program A   Program B   260% lift in product Sales
                        than non automated emails
                        – Empowering Parents

                        Only 4% of emails have been
                        automated thus far yet they
                        drive 40% of email revenue –
                        S&S Worldwide

                        Conversion rates went up
                        136% with automation -
                        SmartPak
                                                       #b2bnl
Dell/Trend Micro
  Trend          Trend                  Segment           Time
                 Database
 Micro                                                                           #1           #4
Database                               POS Segment
                                                          Post Purchase Survey   Welcome Campaign


                                                                        Regular Monthly Campaigns
Trend FTP Site   Data put on to        Default
                 FTP site daily        Customer
                                       Communications
                                                                        Ad Hoc Campaigns
                                                                                                                                Mid Term Survey Renewal Reminders
CleverTouch                                                 #1          #4
     Data        Data
                 manipulated           In Trial Segment
Transformation
                 ready for                                  Welcome Campaign
                 silverpop
                                       Post Trial                                                            #1        #2
                                       Activation                 Activate - Y
                                       Segment                                        Post Purchase Survey        Welcome Campaign
Silverpop FTP    Data uploaded
     Site        to silverpop for
                                                                                                             #1
                 scheduled                                        Activate - N
                 daily import
                                                                                          Survey             #2             Extended Trial Period Campaign
                                       Win Back
                                       Campaign
                 New contacts
  Silverpop      added to                                                                                    #8
  Database       Database

                             Highlights- over 4-10k pcm enter this programme, all automated (10 times a day)                                           #b2bnl
                             5 routes & 9 languages and multi-touch= 250+ scheduled communications
Tekstream



                                        +200%


                    +105%
     +75%



    Revenue   Lead conversion rates   Pipeline Opps

                                                      #b2bnl
1 day             3 days
                               Try                Why you
                              wizard               should
1. Wizard
Overview
                              1 day              3 days       It will
                                       Almost
                                       Done…                  help
         2. Started                                            you
            Wizard
                                        1 day                  3 days
                                                 Wizard                    Custom
               3. Completed                      Results                   for you
                     Wizard
                                                     1 day
                          4. Add to                              Did you       x days
                                                                  forget                  ….
                               Cart
Responding                        5. Placed                Thank You       x days
                                                                                     ….
 to Website                           Order
  Behaviors                                                                             #b2bnl
SmartPak
                        Difference   After   Before

      Open Rate          +68.3%      27.6%   16.4%

         CTR            +103.5%      5.9%    2.9%
         CTOR            +20.9%      21.4%   17.7%

    Conversion Rate     +135.8%      14.6%   6.2%
      Unsubscribe        -42.9%      0.08%   0.14%

  SPAM Complaint Rate    -33.3%      0.04%   0.06%

        Bounce            -6.0%      0.63%   0.67%



                                                      #b2bnl
Agenda

•   The empowered consumer
•   Right message, right time, right place
•   Behavioral Marketing
•   Behavioral Marketing @Work




                                             #b2bnl
Thank you
      @jwatton

jwatton@silverpop.com


                        #b2bnl

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Behavioral Marketing : The end of segmentation in B2B marketing

  • 1. Behavioral Marketing : The end of segmentation in B2B marketing John Watton, Silverpop B2B Marketing Forum, 14th March 2013. @jwatton , jwatton@silverpop.com #b2bnl
  • 3. Agenda • The empowered consumer • Right message, right time, right place • Behavioral Marketing • Behavioral Marketing @Work #b2bnl
  • 5. Problem: Noise The average consumer is exposed to 30,000 marketing messages per day. #b2bnl
  • 6. of UK smartphone owners say they’ve never seen a mobile ad #b2bnl Source: Nielsen Mobile Consumer Survey, Feb 2013
  • 7. The average social post has a half-life of mins Source: SEOmoz blog, Feb 2013 #b2bnl
  • 8. 25% To get of your tweets retweeted 10,000 You need followers #b2bnl Source: SEOmoz blog, Feb 2013
  • 10. B2B B2C #b2bnl
  • 11. B2B B2C #b2bnl
  • 12. Marketing practice is ten years behind marketing vision. #b2bnl
  • 13. The Segmented Audience Approach Female Homeowner Male Female College 30-40 Female Male Homeowner Homeowner Educated 30-40 Female With kids Homeowner College College Educated Educated Male With kids With kids 30-40 Male Female 30-40 Homeowner Male 30-40 Male Female 30-40 Homeowner Male 30-40 College College Educated Educated With kids College With kids Educated Female Homeowner With kids #b2bnl
  • 14. Problem: The Segmented Audience approach is failing 3% Relevant 97% Irrelevant #b2bnl
  • 16. Theoretical Needs + Actual Wants 1 #b2bnl
  • 17. Traditional segmentation 1 2 3 By Profile By Preference By Now? #b2bnl
  • 18. Consumers are more demanding 50% of German consumers say information is too generic. Source: Silverpop Survey, Mar 2013 #b2bnl
  • 19. Marketers are not responding 17% of marketers tailor their message to the individual. Source: Silverpop Survey, Mar 2013 #b2bnl
  • 20. The sales cycle is d.e.a.d. 2 #b2bnl
  • 21. 56% of the buying process is invisible to the seller. “The empowered customer is now in control of the business relationship.” #b2bnl Source: IBM CMO Study 2011
  • 22. 70% of B2B buyers use a search engine at the start of their buying process Source: Mediative Whitepaper, Feb 2011 #b2bnl
  • 23. of C-Level executives prefer to locate information themselves 53% Source: Carat UK, Mar 2013 #b2bnl
  • 24. 21% of B2B buyers use social media at some point in the buying process Source: BaseOne Buyersphere 2012 #b2bnl
  • 25. Marketing needs to change #b2bnl
  • 26. The biggest win: by behavior #b2bnl
  • 28. The goal: segments of one #b2bnl
  • 29. Right message. Right time. Right place. #b2bnl
  • 30. 4 steps to behavioral marketing automation #b2bnl
  • 31. Step 1: Which behaviors to track? Demographics Email behavior Social behavior Web behavior Off-line behavior • Company • Opened email • Likes • Pages viewed • Salesteam interaction • Title • Did not open email • Comments • Links clicked • Event attendance • Sector • Clicked on link • Shares • Cart abandoned • Check-ins/QR codes • Customer/Prospect in email • Facebook forms • Products searched • Call centre activity • Product preferences • Bounced • etc • Forms completed • Catalogue request • etc • No mailing activity • Files downloaded • etc • etc • Videos viewed • etc #b2bnl
  • 32. Step 2: Unify into one customer view LOCATION EMAIL WEBSITE ECOMMERCE SOCIAL CRM BEHAVIORAL DATABASE #b2bnl
  • 33. Step 3: Automate something! • 1. Welcome/Onboarding • 2. Browse Abandonment • 3. Recommendation • 4. Product Review Request • 5. Replenishment/Re-order • 6. Password renewal/reminder • 7. Trials • 8. Cross Sell • 9. Purchase Anniversary/Renewal • 10. Re-engagement #b2bnl
  • 34. Step 4: Personalize channels (e.g. email) Subject Line Personalization 1 First name personalization 1 Personalized Content Name and contact info for each customer’s 2 6 personal rep Dynamic Subject Lines 2 The subject line changes based on the type and duration of club membership Individualized Content Lists 3 For any customer who has purchased two or more items in the last 90 days, list each purchase with review links E-commerce-driven Personalization 4 Display totals and other engaging content to drive follow-on purchases. 7 Website-driven Content 5 Directly track each customer’s web activity and prompt them to visit new areas of the site. Send Time Optimization 3 6 The message arrives in each individual’s inbox at precisely the time that individual is most likely to 1 check email. Data-driven Dynamic Image 7 Image is selected based on demographic and 4 profile info 8 Score-driven Dynamic Offer 5 8 Discounts/prices vary by social influence #b2bnl and time since last purchase
  • 36. Lead score on demographics & behaviors Heavy Behavior Low Interest Interest Profile 1 2 3 4 Great Fit A 32+/15+ 32+/10-14 32+/6-9 32+/0-5 B 20-31/15+ 20-31/10-14 20-31/6-9 20-31/0-5 C 10-19/15+ 10-19/10-14 10-19/6-9 10-19/0-5 OK fit D 0-9/15+ 0-9/10-14 0-9/6-9 0-9/0-5 #b2bnl
  • 37. Prioritize “sales-ready” leads Heavy Behavior Low Interest Interest Profile 1 2 3 4 Great Fit A 32+/15+ 32+/10-14 32+/6-9 32+/0-5 B 20-31/15+ 20-31/10-14 20-31/6-9 20-31/0-5 C 10-19/15+ 10-19/10-14 10-19/6-9 10-19/0-5 OK fit D 0-9/15+ 0-9/10-14 0-9/6-9 0-9/0-5 #b2bnl
  • 38. Behavior Driven Automation Campaign Campaign Program A Program B 260% lift in product Sales than non automated emails – Empowering Parents Only 4% of emails have been automated thus far yet they drive 40% of email revenue – S&S Worldwide Conversion rates went up 136% with automation - SmartPak #b2bnl
  • 39. Dell/Trend Micro Trend Trend Segment Time Database Micro #1 #4 Database POS Segment Post Purchase Survey Welcome Campaign Regular Monthly Campaigns Trend FTP Site Data put on to Default FTP site daily Customer Communications Ad Hoc Campaigns Mid Term Survey Renewal Reminders CleverTouch #1 #4 Data Data manipulated In Trial Segment Transformation ready for Welcome Campaign silverpop Post Trial #1 #2 Activation Activate - Y Segment Post Purchase Survey Welcome Campaign Silverpop FTP Data uploaded Site to silverpop for #1 scheduled Activate - N daily import Survey #2 Extended Trial Period Campaign Win Back Campaign New contacts Silverpop added to #8 Database Database Highlights- over 4-10k pcm enter this programme, all automated (10 times a day) #b2bnl 5 routes & 9 languages and multi-touch= 250+ scheduled communications
  • 40. Tekstream +200% +105% +75% Revenue Lead conversion rates Pipeline Opps #b2bnl
  • 41. 1 day 3 days Try Why you wizard should 1. Wizard Overview 1 day 3 days It will Almost Done… help 2. Started you Wizard 1 day 3 days Wizard Custom 3. Completed Results for you Wizard 1 day 4. Add to Did you x days forget …. Cart Responding 5. Placed Thank You x days …. to Website Order Behaviors #b2bnl
  • 42. SmartPak Difference After Before Open Rate +68.3% 27.6% 16.4% CTR +103.5% 5.9% 2.9% CTOR +20.9% 21.4% 17.7% Conversion Rate +135.8% 14.6% 6.2% Unsubscribe -42.9% 0.08% 0.14% SPAM Complaint Rate -33.3% 0.04% 0.06% Bounce -6.0% 0.63% 0.67% #b2bnl
  • 43. Agenda • The empowered consumer • Right message, right time, right place • Behavioral Marketing • Behavioral Marketing @Work #b2bnl
  • 44. Thank you @jwatton jwatton@silverpop.com #b2bnl

Hinweis der Redaktion

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