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ONLINE AND OUTFRONT: How To Use E-Marketing To Get Results

This ITAC roundtable event was held on Wednesday June 7, 2006.

Panelists

Daniel Adam, Senior Manager of Technology, Media & Telecommunications, Deloitte & Touche
Janice Dawes, Business Unit Executive, Strategy & Marketing, Lenovo Canada Inc.
Stephanie Kleiman, Senior Manager, Marketing & Communications, E*TRADE Canada
Riley McNeilage, Americas Marketing Manager– Canada, Borland Software Corporation
Salima Valji, Web Manager, Microsoft Canada

The discussion was moderated by Bob Becker , Principal, SMA

How do you determine the balance between traditional and e-marketing and what variables do you consider?

While online media spends have remained relatively constant since 1998 at 35% of the total media spend, how money is spent has improved. For example, more webinars are used now since web casts were found to have limited appeal.
The decision on how to determine the balance depends on the marketing objectives. For example, marketing a new brand differs from driving sales from existing brands.
Online marketing has increased, especially to IT prospects and developers who expect online communication. RSS (Really Simple Syndication) to provide syndicated feeds and blogs so prospects and customers can communicate with the company are used.
E-marketing enables interaction with customers and prospects, although this interaction must appeal to the appropriate stage in the lifecycle of prospects, from interest to purchase. The trend in e-marketing is towards using search engines.
The goal is for a balanced portfolio of traditional and e-marketing. There is movement away from print advertising as prospects and customers are more interested in news.

Is e-marketing less expensive than traditional marketing? Is the decision to use e-marketing driven by limited available resources?

While e-marketing appears to be less expensive, initial investments in time, technology and lists are necessary for it to be effective.
When measuring the total cost of e-marketing, you have to look at PPL, or pay-per-lead, and then the cost to graduate a lead into a face-to-face meeting.
The cycle of renewing maintenance agreements with customers through letters, information booklets and reminders is less expensive through e-mail than direct mail. The ‘rule of thumb’ is for every dollar spent in marketing, aim for $10 in return, regardless of whether it is through traditional or e-marketing.

Is ROI easier to track with e-marketing than traditional marketing?

While on-line marketing allows for ROI measures such as cost per click, click through rate and cost per acquisition, it is not known to what extent traditional marketing supports the results. It is important to consider the broader marketing portfolio because traditional marketing, such as radio and print advertising, may be necessary for branding.
E-marketing is not intended to stand alone; rather, it should be integrated with other marketing activities.
It is easier to track ROI with online marketing. A benefit of e-marketing is insight into how customers use a company’s web site.

Given that the face-to-face approach is the most effective, is there a risk of losing the “personal touch” with the pervasiveness of electronic communications?

E-marketing does not replace face-to-face communication; rather, it is used to achieve the ultimate objective of getting face-to-face with prospects and customers.
The web offers opportunities for personalization. Two examples are: prospects and customers chat with and provide input to the company, and sites targeted to specific customers build one-on-one relationships.
Personalization can be accomplished online using a strategy focused on the journey of prospects as they become customers. To accomplish this, continuity and segmentation are key.

How do you use e-marketing to generate leads and how do you ensure the leads are well-qualified?

Webinars and online promotional offers and contests are used to capture leads. Be careful not to push leads towards face-to-face meetings unless the leads have indicated they would like to be contacted by a sales representative.
A good database is key for generating leads. Determining if leads are well-qualified involves assessing their budget and when they will be making a decision.
The process of generating leads involves building a database and then beginning a conversation with prospects. Information is sent only if permission is given.

When is e-mail considered Spam? What does opt-in mean and is it real?

Customers can choose the amount of information they want by checking a box provided online. When in doubt, err on the conservative side because SPAM is damaging to a relationship. Sending targeted messages and avoiding the word “free” help to bypass SPAM filters.
Proactively obtain permission from the audience regarding any communication so that, over time, the company positions themselves as a trusted source. Send only relevant information at the right time and in the correct format to increase the chance the mail will be opened.
It is important to have alternate methods of communication because it is impossible to get through every SPAM filter.

How do you decide when to use HTML graphics versus text in promotional email messages?

Use text messages if you have spoken to the individual before; graphics if you have not. Studies of eye patterns when reading text versus graphics show greater eye movement around graphics.
The decision is based on the message and the audience. Use text when sending valuable information to top customers; graphics for promotional messages to purchased lists.

In what direction is e-marketing heading? How effective are blogging and podcasting?

There is a movement towards more interactive relationships and increased visual communication, for example, video conferencing.
Blogs are very effective for getting customer feedback that can then be applied to a product. Blogs provide a personal voice within a large organization.
Paid and natural searches are balanced as a means to generate leads and build awareness.
Blogs are more important for companies selling products than for those selling consulting services and it is vital to have a qualified resource to manage blogs. Podcasting may be relevant for mid-level but not for C-level target markets. The future direction is based on research that shows video and audio messages are important, not solely text messages.

Questions from the audience:

How do you decide when to use webinars versus face-to-face communications?

Webinars are used for demand generation early in the process of trying to move a suspect to a prospect.
Webinars are used for channel partners, not end customers. The benefits of webinars over face-to-face are: it is easier to communicate a consistent message, and there is more information-sharing.
Webinars are used for existing customers; face-to-face is used for prospects. Webinars are effective for cross-selling and are cost-efficient for Canada-wide communications.
Webinars are less expensive than live seminars. Live events attract larger audiences when they are held less frequently and have high-profile speakers.

Can you give examples of situations where you achieved high conversion rates?

High conversion rates were experienced when an introductory savings offer was made for a new product launch and a promotion was run on a bundle of products.
Timing is key. Higher conversion rates were achieved when a specific offer was made in a very timely fashion.
Running a cross-promotion with similar business categories may increase conversion rates.
Having a consistent presence with a very targeted audience on a niche web site and offering industry information through white papers both increase conversion rates.

How do you work with your sales team to establish that leads are worth pursuing?

This challenge was addressed by opening a ‘lead development office’ comprised of sales representatives who form a bridge between the sales and marketing departments.
Lead generators are trained to ensure leads are truly qualified before passing them on to sales representatives.
The sales team is given opportunities to engage early in the process of developing solutions when they had not typically been involved in the past.

How should a small organization with a limited budget use e-marketing to build brand awareness and generate leads?

It is less expensive to start with current instead of new customers. Limit the use of rented lists since there is no existing relationship with these contacts.
Use an affinity program where a commission is paid to a marketing company only when a lead results in a sale.
Be aware of click fraud. Build a good database as a starting point for e-marketing.

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