“Fundamentals of e-marketing success”

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					     e-Commerce 101
“Fundamentals of e-marketing
        success”
        Rory Holland
Expertise. Integrity. Experience.

blueSky is a nationally recognized marketing and
   finance
company that combines cutting-edge technology with
proven online marketing and direct mail strategies to
deliver qualified, special finance auto leads right to the
doorstep of our participating franchise dealers.


                             The result? More car sales!
         Ad listing defined
• Ad copy
  The words used in an ad listing.

• Ad listing
  Includes the ad copy and is the title and
  description that are displayed in search
  results for the keyword(s) purchased.

               Keyword search: “get a mortgage”
Search listings
Search listings
Search listings
      3 tips for writing great
           search listings
1. Listing should be clear and factual
2. Accurately describe what customers
   will get when they get to your site
3. Include the keyword in both title and
   description
         What would you like to
          accomplish today?
•       What are your online goals?
    –     Lead Generation
    –     Sales
    –     Awareness
    –     Retention
•       Anything particularly challenging for you
        right now?
•       What would you like to take away from
        today?
              Our Agenda
•   The market
•   Online marketing terminology
•   Creating a plan
•   Search engine marketing & optimization
•   Affiliate marketing
•   Measuring performance - web analytics
•   What’s hot or not!
           US Online Ad Market Continues
 (in billions)
                     Recovery      $14.8
                           $15                                                                                               100%




                                                                                                                                    Percentage of Off-line Ad Market
                                                                                                              $13.1
Total Online Ad Spending




                           $12                                                                 $11.3                         80%
                                                                               $9.5
                           $9                                  $7.6                                                          60%
                                              $6.3
                                 $5.7
                           $6                                                                                                40%


                           $3                                                                                                20%

                                        3%            3%              4%              4%              5%         6%     6%
                           $0                                                                                                0%
                                 2002          2003            2004             2005            2006          2007    2008

                                  Total online ad spending                               Percentage of off-line ad market

                                        Source: Jupiter Research Internet Advertising Model, 7/03 (US only)
       Consumers Research Finance
                 Online
ÿ   Consumers are actively researching financial services purchases
    online and relying on provider web sites


      Methods Used by US Adults to Apply for Financial Services Products
      (% of respondents)


              Applied for a new
                                                                                 47%
              account or policy
              online or offline in
                                                               31%
             the last 12 months

             Relied on provider
                                                                           42%
             web sites for new
                  product
                                                      22%
               information*

                                     All US adults   Use Internet for finances
          *% of those that applied                                The Dieringer Research Group, July 2003
            Personal Finance Purchases –
               Multi-channel Marketing
More and more consumers rely on information obtained
online to make their financial services purchase decision.




      *% of those that applied          The Dieringer Research Group, July 2003
    Brokerage Customer Segments
     Online Customer Acquisitions…
Among five brokerages, Schwab leads the way in acquiring online customers.
 Ameritrade drives traffic to new account, but its abandonment rate is high.
     350,000                                                                                       60%
                   52%
     300,000                                                                                       50%

     250,000                           40%
                                                                                                   40%
                                                         34%
     200,000                                                                  32%
                                                                                             28%   30%
     150,000

                                                                                                   20%
     100,000

                                                                                                   10%
      50,000


           0                                                                                       0%
               Schwab            Fidelity         Scottrade             Etrade           AMTD

                         Initiated                   Submitted                      Conversion




                                     Comscore, Quarter Ending December 2003
              Key terminology
•   Ad copy, Ad listing
•   CPA - cost per acquisition or action
•   PFP – pay for performance
•   CPC – cost per click
•   CPM – cost per thousand
•   Rich media – flash, audio, video
•   Ad units – banners, buttons, pop-ups, text
•   HTML


                http://www.iab.net/standards/index.asp
             Key terminology
•   SEM – search engine marketing
•   SEO– search engine optimization
•   PPC – pay per click
•   Keyword, keyword terms




               http://www.iab.net/standards/index.asp
         Key terminology
Measuring performance:
• Impressions lead to -
• Clicks lead to -
• CTR – click-through-rate




           1000 impressions get 10 clicks = 1% CTR
           Key terminology
Measuring performance:
• Lead to hits to your website
• Lead to conversions or sales
• Web Tracking & analytics




 10 clicks get 10 hits to your site and 3 sales = 30% conversion
           Key terminology
Measuring performance

•   1000 impressions for $6 = $6 CPM
•   10 clicks = 1% CTR
•   10 clicks = 10 hits to your site
•   3 sales = 30% conversions
•   CPA = $2
Any questions or comments?
      Why the web won’t work

•   Lack of defined goals & planning
•   Use company brochure as website
•   No emphasis on web tracking
•   Minimal review of site & campaign
    performance
   Ways to make your online
   program more successful

• Proper preparation & planning
• Emphasis on tracking & analytics
• Regular reviews of site & campaign
  performance
• Be prepared to optimize by testing and
  tweaking
         Things to consider
Consider your target customer :

• What problem are you solving?

• How is your product or service unique?

• How do your preferred customers find you?
               Develop a plan
•   Define elevator pitch/mission statement
•   What makes your offer unique? USP
•   Define your preferred customer
•   Call(s) to action
•   Set goals & milestones
•   Determine budget


      Internet strategy should be extension of business strategy
Experience should build
      your brand




Be there when your customers are ready to buy!
               Provide a positive experience
      Search engine marketing

Includes both advertising and optimization
efforts to achieve high visibility of a web
  site
for relevant keywords. Also referred to as
search engine positioning or search
  engine
promotion.
            SEM most used tactic is PPC advertising
               Online Customer Acquisition
              Search is #1 for Finance Advertisers

                           New Customer Acquisition - Financial Industry


22.8%
           19.7%
                          17.1%

                                       11.7%
                                                    8.6%          7.9%
                                                                               4.5%
                                                                                            2.7%         2.7%
                                                                                                                      1.1%        0.3%

  Dir
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                                                           Source: comScore Networks
Why are search engines important
        for consumers?

“Where do you go for information about a
   company or product on the web?”




    SE’s provide an easy way to find information
Why are search engines important
         for business?
1. Quick, easy & inexpensive way to
   generate new business
2. Expand brand awareness
3. A simple way to test new products &
   promotions
4. Complements optimization and offline
   marketing efforts
    Gives consumers access to your products & services
       Search engines defined
Search Engine’s:
Software that searches a database of web site pages to
find and then return page matches to the keyword
   query.
(Google)

Directory:
A collection of web sites that are organized by topic
category and are included in a specific category (or
categories) after being reviewed by a human editor.
(Ex’s.: www.dmoz.org, Business.com, and Yahoo!)
       Search Marketing
Yahoo!
• Overture
• MSN
• AllTheWeb
• AltaVista
• Lycos

              http://www.bruceclay.com/searchenginerelationshipchart.htm
        Search Marketing
Google
• AOL Search
• AskJeeves
• Lycos
• Hotbot
• Teoma
• NetScape
• iWon
               http://www.bruceclay.com/searchenginerelationshipchart.htm
         Search marketing
Keywords:
Choosing the correct keywords will make
or break your search marketing program.




    https://adwords.google.com/select/KeywordSandbox
            Search marketing
Keywords Example: goal = $4 CPA

•    “bad credit auto loan” @ $2 CPC
    –   Generates 100 clicks ($200) with 50%
        conversions
        = 50 apps
    –   CPA = $4
•    “auto loan” @ $5 CPC
    –   generates 100 clicks ($500) with 5%
        conversions = 5 apps
    –   CPA = $100
         Keyword Search
Yahoo! Keyword search:
• “Low mortgage rates”
• Paid/sponsor results LowermyBills.Com




                         Say we click this ad
Landing page




       Continued copy from ad
       & provided direct path
          Landing Pages
• Do not send traffic to homepage
• Specific landing pages for keyword
  groups
                NO
• Provide a direct path
• Complete message from ad listing
• Invite the sale
• Tweak pages for best results
          Landing pages
Landing pages for groups:
• Mortgage, Refinance, Rates
• Credit cards, debt
• Insurance
• Loans
• Debt consolidation
    Search marketing checklist
•   Keywords are critical to SE success
•   Concise copy – no superlatives?
•   Is the message from the ad completed?
•   Is critical information above the fold?
•   Is a direct path provided?
•   Are navigational choices reduced?
•   Are action words used?
•   Is desire enhanced?
•   Is trust being established?
                 http://www.content.overture.com/d/USm/ac/index.jhtml
Any questions or comments so far?
  Search engine optimization
The objective of SEO is to increase web
  visitor
counts by ranking very high in the results
  of
searches using the most appropriate
keywords describing the content of your
  site.
     Hire a specialist $100-$500/pg. & budget more for SEO
      Search Optimization
Where to start:
• Simple website design
  – Spiders/webcrawlers
• Keyword content/density
• Proper meta tags
• Paid inclusion

       http://www.seotoolset.com/tools/free_tools.html
       Search Optimization
Example:
• Fully optimized site for “bluesky auto
  leads”
• Working towards “special finance auto
  leads”
     What search engines want

Checklist:
• Simple design
• Descriptive meta tags
  – Common meta tags are the title, keyword, and
    description tags.
• In bound links
• Lots of relevant content
  – keyword density
                    Tool: www.keywordcount.com
        SEM/SEO Tips for ‘05

marketingSherpa.com: “$3billion spent in ’04”


Tip #1: Invest in three + keyword terms
Tip #2: Budget for landing page tweaks
Tip #3: Don’t forget “white sales”


            Sign up for enewsletters marketingsherpa.com
         Affiliate Marketing
Performance-based marketing:
Affiliates are paid straight commissions
to sell products & services for advertisers
using a variety of tactics.
• CPA, CPC, CPM
• Email, Search, Banners, SEO etc.

   Quick , cost-effective way to reach new customers & sales
            Affiliate Marketing
                         blueSky
Supply:                           Demand: (Auto dealers)
Lead partners
Auto.com Leads
                            Ping/Post
Car.com Leads                  -SSN        blueSky Dealers
                            -Zip code
SUV.com Leads              Validation
                               -Data
                             - bogus
Affiliates – blueSky   ads Filters       Wholesale buyers
                          -min. income
Aff #1
Aff #2                      Reporting
         Affiliate Marketing
Some options:
• Commission Junction – www.cj.com
  – 150k affiliates in network


• www.MyAffiliateProgram.com
  – 20k affiliates in network
      Commission Junction
                               100 thousand
             CJ Network             affiliates
Email     Tracking/Reporting
Banners      Affiliate mgt.           Email
           Commission mgt.
Search                              Banners
Pops                                 Search
                 Leads                Pops
                Access
               login/pw
            Higher costs and typically lower volume
                                E-mail Spending Growth
                               Exponential Through 2008
(in millions)
                                                                                                                 $6.1
                            $3,000
                                                                                                                billion
E-mail Marketing Spending




                            $2,500

                            $2,000                                     $2.7
                                                                      billion
                            $1,500

                            $1,000

                             $500

                               $0
                                         2002           2003           2004           2005     2006     2007     2008

              Retention                  $697           $965         $1,218          $1,502 $1,798     $2,090   $2,410
              Sponsored                  $238           $388           $569           $807    $1,101   $1,445   $1,870
              Acquisition                $570           $720           $911          $1,126 $1,349     $1,567   $1,805

                                     Source: Jupiter Research E-mail Model, 12/03 (US only)      Email marketing
            Email marketing
• House or internal list
• Renting lists
   – Choose lists carefully
   – How is list generated?
• Define suppression procedure
• Buying lists
   – CPM, CPA
• From line, subject line, creative (text or html)
       Strictly enforce rules & guidelines for email marketers
         Email marketing
• Auto responders
• Don’t miss a chance to brand or make
  other offers
• Always include your logo and/or ad
  copy
• Include other related, valued offers
• Well executed email surveys can build
  the relationship
                  Banner Ads
Design basics: Compelling – Telling – Selling
  elements
•   Lead with a question.
•   Create a lyrical rhythm.
•   Single and simple message.
•   Show, don't tell.
•   Write visually.
•   Offer an offer.
•   Justify the click.
•   Brand with benefits.
•   Nix the tricks.
•   Test as the user.
         Banner campaigns
banners: “get a loan” @ $4.00 CPM

• 1,000 impressions generates 10 clicks = 1%
  CTR “click through rate” @ $4 or $.40/click
• 10 clicks results in 4 sales for a $1 CPS “cost
  per sale”
• Click to conversion of 40%
          Banners can work
ING Direct: Campaign for “Saving
  Account”

“Everyone says banners have a pathetically low
click-through rate,” “But, we’ve proven that they
can be a successful staple of a direct response
campaign.”


            Jurie Pieterse, VP Web Marketing, ING
            DIRECT
           Banners can work
Setup:
ING Direct leverages banner ads to
generate new accounts

Goal:
Sign new customers to its Orange
Savings Account
           Banners can work
Develop & Test multiple creatives:

•   Invest to test different creative units
•   Try all size ad units
•   Work with publishers for optimal placement
•   Measure CTR
•   Good creative improves CTR


                                    Tweaking is
                            good!
          Banners can work
Revise search listings can double CTRs

• Regularly revise listings improve CTRs

Ex: “open in less than 5 minutes” 23% incr.
  “3 easy steps, and be qualified in 60
  seconds”

* Monitor search engines for trademark
  infringing                    Keep search text fresh
             Be Memorable
Great campaign:

  –   Leveraged their brand
  –   Good creative
  –   Direct call to action
  –   Consistent messaging & creative
Any questions or comments?
         Why Web Analytics

•   Ability to measure campaign
    performance & sales
•   Know where traffic comes from?
•   Where do consumers go on your site?
•   How long do they stay?
•   Where do they leave? Why?
           Web Analytics
According to marketingSherpa data
• “Only 28.7% of online marketers have
  web
analytics data at their fingertips”
• Checking data pays off. Marketers who
  check data frequently get 25% higher
  conversions

        Setup process to view, analyze and understand data
          Web Analytics Tools

•   Atlas DMT                  •   Manticore
•   ClickTracks                •   Omniture
•   Coremetrics                •   Opentracker
•   Datanautics                •   WEBTRENDS
•   Intellitracker
•   Mondosoft


                     Pick the right measurement reporting tool
             WebTrends
• Know where you customers come from
• Target those high traffic portals, engines
  or websites
• Conduct A/B landing page testing
• Measure campaign ROI
        Analytics allow for
          segmentation
Segmentation is the best measurement
standard - no average traffic!
• Figure out what sorts of people come to
  your site
• Segment them into three to seven distinct
  audiences with unique goals &
  personalities
• Design your site content accordingly
                www.webanalyticsassociation.com
     Segmentation example
• Newbies vs. multibuyers
• Techies vs. executives
• Parents vs. kids
• Impulse buyers vs. researchers
• Discount-driven vs. quality driven
  shoppers
• Service seekers vs. shoppers
      What’s hot what’s not
• Rich media popularity grows as bandwidth
  increases
  – More costly
  – Creative that wins awards rarely converts
• Blogging, not always a useful marketing
  tool
  – www.blogger.com

• Live chat for higher conversions – Hot!
        Things to Remember
•   Always provide a positive experience
•   Take your IT team to lunch
•   Keep web design simple
•   Keep content fresh and keyword rich
•   Take time to choose best keywords
•   Use a good analytics tool
    – Apply what you learn
• Design & test multiple landing pages
                      Stay on top of industry changes
                Resources
•   www.marketingsherpa.com
•   www.bruceclay.com
•   www.clickz.com
•   www.emarketer.com
•   www.iab.net/
•   www.content.overture.com/d/
•   www.SearchEngineWatch.com
•   www.seofinder.com/
•   www.searchignite.com
•   www.wordtracker.com
     Thank you!
       Rory Holland
rholland@blueskymg.com

www.blueskymarketing.com
 www.hollandinteractive.com

				
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