Direct Marketing Magazine July 2014

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Special report: The 4 pillars of successful festival-based marketing strategies

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Loyalty to go: why mobile is the next frontier for loyalty programs

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CASL Supplement

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Vol. 27 • No. 7 • July 2014

The Authority on Data-Driven Engagement & Operations

Getting with the program Customer loyalty in the digital age

Gary Tannyan

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Deloitte’s Jennifer Lee on why loyalty programs are alive and well.

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The 4 pillars of successful festivalbased marketing strategies

EDITOR Amy Bostock - amy@dmn.ca PRESIDENT Steve Lloyd - steve@dmn.ca DESIGN / PRODUCTION Jennifer O'Neill - jennifer@dmn.ca Advertising Sales Mark Henry - mark@dmn.ca Brent White - brent@dmn.ca CONTRIBUTING WRITERS Jennifer Lee Geoff Linton Natasha Nanji Niraj Sinha Justin Topliff Michael J. Weiss

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DM Landscapes

Finding safe haven in the loyalty space

Meet Canada’s fastest growing immigrant group

Targeting & Acquisition ❯❯7

Case study: Air Miles for Social Change Pilot YMCA program shows loyalty incentives are a significant driver to motivate Canadians to exercise

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Customer advocacy Using mobile to reach loyalty marketing’s pinnacle

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Location economics to the rescue

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CASL: the good, the bad and the ugly

Customer loyalty in the digital age

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Getting with the program

Engagement & Analytics ❯❯10

Loyalty to go Why mobile is the next frontier for loyalty programs July 2014

Engagement in a hyper-connected world: part 2 of 3

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Vol. 27 | No. 7 | July 2014

Robert Burko James Christensen Mohammed Ghalayini Kevin Huxham Phil Kaszuba Jan Kestle

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No need to panic!

Tips for surviving CASL

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CASL: it’s not just about mail

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Countdown to CASL DMN.ca ❰

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special Report

The four pillars of successful festival-based marketing strategies

By Niraj Sinha

I

Case study:

Canadian Tire Chinese New Year Campaign rationale

A tactical ethnic engagement program around Chinese New Year targeting Chinese markets in Toronto and Vancouver.

The strategy

Maple Diversity decided to leverage Canadian Tire’s brand tone of “Bring It On,” which is always authentic and enthusiastic, with a “can do” attitude.

“Preparations for the New Year, Bring it on” became the tagline. Supporting message was around savings through promotional offers on select products, relevant for the occasion. Tactical media plan included prominent Chinese newspapers and in-language (Cantonese and Mandarin) Radio in the GTA and the GVA.

Why in-language?

More than 92% of first generation Chinese Canadians speak a Chinese dialect at home, while only 5% speak English at home. Moreover, nearly 75% of Chinese Canadians consume an in- language media daily. Last but not the least, almost 60% of Chinese Canadians appreciate culturally relevant communication in their own language, especially when brands are involved in their community (Source - Ipsos-Reid).

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t’s a well-known fact that various brands plan for and achieve an uplift of sales for their products during the Christmas holidays. Similarly, a brand who’s interested in reaching out to the growing ethnic segments in Canada, must consider various festivals that are great opportunities not only to engage the target ethnic group, but also to drive significant sales growth around these festivals. Most of these ethnic festivals are major purchasing opportunities for various cultural groups in Canada.

Before planning a festival based campaign, a brand must consider some checklists.

While these festivals are great opportunities for a marketer, one must ensure their marketing ROI by weighing a festival based opportunity with the following criteria:

1

Product must make sense for the occasion - Some products are a better fit for an occasion than others. If a major auto brand hopes to sell more cars during Chinese New Year, it probably wouldn’t work. A Chinese New Year ad in the Chinese media will not directly result in incremental car sales. Nor will that build deeper relationships with the Chinese community by merely saying ‘kung hay fat choy.’ In other words, Chinese New Year is not an occasion for the Chinese community to buy cars. At the same time, just a celebratory message won’t cut through the clutter in Chinese media to build long lasting relationships with the community.

Using festivals for relationship marketing would make more sense for brands like a financial institution or a telecommunication company who interacts with the community as their customers on a more regular basis.

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Price must be right - So you found a product that has a perfect fit for a festival and you’re ready to roll out an engagement plan.

Before hitting the market, one must check if the price is right for the occasion and the segment. If you have a product being promoted as a gifting option, make sure the purchase price falls within the acceptable range within that community and for that occasion. For example, during the festival of Diwali, a confectionary gift item priced between $10 and $20 has a better chance of being successful compared to something priced $2 or $5. Sweets and confectionary gifting is very common around Diwali, but no one will like to visit a close friend or family with a gift that’s considered ‘cheap’ in price. Same goes for Chinese New Year. One can also never go wrong with special promotions and discounts tied to the occasion. Ethnic communities do appreciate a brand showing an interest and understanding about festivals they celebrate.

July 2014

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special Report

Case study: Nestlé Canada

- Quality Street Diwali Campaign rationale

A popular assortment of imported chocolates and caramel, Quality Street is an excellent gift choice for celebrations and events. There is an intrinsic fit between Quality Street and Diwali. Diwali is a great gifting occasion and Quality Street is a great gifting option for nearly 1.5million Indo-Canadians. The Quality Street Diwali 725g gift tin was available at select Walmart, Loblaws and Food Basics stores with a high concentration of South Asian consumers in Ontario, British Columbia, Alberta and Québec.

The strategy

Maple Diversity planned and executed the Quality Street Diwali campaign on behalf of its client Nestlé Canada. Quality Street was promoted as a great gifting option during the festival of Diwali targeting the Indo-Canadian segment. For this purpose, Maple also helped Nestlé Canada customize the Quality Street tin box as a special Diwali tin box. The creative was conceptualized to promote this offer by using various colourful chocolates from the tin box in a series of print ads as well as in a stop motion animation TV commercial.

Results [Marketing Magazine creative award for ‘best multicultural TV spot’]

Majority of Diwali tin boxes were sold within first two weeks of the campaign.

Overall product awareness, brand perception, and campaign relevance were measured to be very positive, particularly among new immigrants in Canada

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Place is important - One must consider a tactical outreach program to engage ethnic segments during festival based campaigns. Unlike the US, Canada has witnessed significance growth in ethnic neighbourhoods in many cities. This makes life for an ethnic marketer much easier. For example, a Vaisakhi campaign must factor in neighbourhoods of Brampton in Greater Toronto Area and Surrey in Vancouver, which has the largest concentration of Sikhs and the Punjabi community, who celebrate Vaisakhi as their biggest festival. Therefore, whether planning ethnic media, Out-of-Home or event based outreach programs, relevant ethnic neighbourhoods must be considered.

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Let them know by promoting your product - Various research reports show that more than 75% of ethnic communities in Canada consume at least one form of in-language media on a daily basis. If you did a great job by finding a great product and even better, an offer for a festival with some innovative packaging, let people know about it. What are the chances of someone bumping into your product amongst all the aisles in a superstore? Many a times, great ethnic marketing ideas are shared within a marketing team and not brought to life to the market.

Depending on the budget and campaign objectives, one must support product innovations and festival based offers by promoting them through ethnic community media, DM, social media, Out-of-Home channels, grass-root events, as well as a robust ethnic media PR exercise. It’s vital to the success of a festival based campaign that a promotional plan is put in place along with other aspects of the campaign planning. Sometimes, popular ethnic media properties are sold out sooner due to more and more brands being keen on advertising to ethnic segments around major festivals.

Therefore, this necessitates planning, allocating budgets and briefing your ethnic media agency in advance to secure the most effective media channels and placements for a successful festival-based campaign.

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Niraj Sinha is a Managing Partner at one of the fastest growing multicultural agencies in Canada,

Maple Diversity Communications. With over 15 years of experience in media and marketing industry, Niraj has won several industry awards for ethnic marketing communications in Canada.

July 2014

DMN.ca ❰

special Report

DM Landscapes

Meet Canada’s fastest growing immigrant group

By Jan Kestle and Michael J. Weiss

C

anada’s immigrant population is booming and now represents 21 per cent of the population—the highest level in eighty years. But the nation’s ethnic makeup is constantly changing, as earlier generations of newcomers from Europe give way to recent immigrants from China and South Asia. Today, the fastest growing immigrant population may come as a surprise to many marketers: Filipinos.

According to the DemoStats database from Environics Analytics (EA), the number of immigrants from the Philippines has jumped 33 per cent since 2009—Canada’s total population grew by only 8 per cent during the same time period—and now stands at approximately 677,000.

But companies looking to connect with the sizable Filipino community shouldn’t adopt a one-size-fitsall approach. Reaching diverse populations requires an understanding of the cultural nuances among the varied ethnic communities—and even communities within communities.

That’s especially true of recent Filipino immigrants who, when compared to the general population, tend to be younger, better educated, urban and over-represented in the health, sales and service industries. With Filipinos boasting a median household income of about $85,000—slightly above the national average—their buying power is solidly middle class.

Geographically, the highest concentration of Filipino newcomers can be found in British Columbia and Manitoba as well as Ontario and the Northwest Territories. Many have moved to cities like Vancouver, Winnipeg and Toronto, and smaller towns such as Yellowknife, NT, and Wood Buffalo, AB. In Manitoba, the size of the Filipino community increased by nearly 50 per cent between the 2006 and 2011 due to the success of the provincial nominee immigration program which allows provinces to directly recruit workers with specific job skills.

Beyond Filipinos’ basic demographics, a more revealing portrait of the group emerges from EA’s PRIZMC2 segmentation system, which classifies Canadians into 66 ❱ DMN.ca

// 6 Map Legend: The percent concentration of Filipinos by neighbourhood.

Red: Home New Home

(1.00%+) Yellow: Growing Communities

(.25% - .999%) Green: Less Settled

(.05% - .249%)

lifestyle types. The top-ranked Blue: Few & Far Between Filipino segments include Urban

(0 - .049%) Spice (young, multi-ethnic downscale singles), Asian Up-andComers (successful, middle-aged Asian families) and Cluttered Nests (upper-middle-class urban couples and multigenerational families). Like newcomers from China, those from the Philippines make a strong market for young, family-oriented products and services. They spend a disproportionate amount of their discretionary income on educational services, child care, children’s camps and musical instruments. They’re sports Sources: Environics Analytics 2014, Where Filipinos Live based on PRIZMC2 and DemoStats. enthusiasts—whether playing Province/Territory Index basketball, soccer or football, or marketing messages and are 50 per cent Manitoba 225 attending professional baseball more likely than average to read ads on British Columbia 175 and basketball games. They also buses, streetcars, subways and trains.

Northwest Territories Quebec 155 exhibit a cultural streak, with Nonetheless, Filipinos tend to high rates for going to museums Ontario 128 think somewhat differently compared and bookstores. Not surprisingly, to the general population, according Alberta 116 these families also score high for to the Social Values research of Yukon Territory 41 frequenting theme parks and zoos.

Environics Research. Although many Saskatchewan 24 are doing well, they sometimes feel To reach the Filipino audience, Quebec 22 overwhelmed by life in their new marketers are fortunate in that, Nunavut 11 country, scoring high on the value compared to other immigrant Need for Escape and Fear of Violence. populations, a higher percentage New Brunswick 6 As shoppers, they look for products of Filipinos most often speak Nova Scotia 4 that enhance their status and English at home (about two-thirds Newfoundland and Labrador 3 appearance—a common motivator in versus one-third of Vietnamese Prince Edward Island 0 upward-striving groups. But they’re immigrants and one-quarter of Index of 100 = national average more likely than average Canadians to Korean immigrants). Without Sources: Environics Analytics, DemoStats 2014 appreciate aesthetics a language barrier, this group’s Filipinos Like…

Filipinos Don’t Like… and originality interests and activities are similar Soccer Bingo halls in what they buy, to other young, midscale consumer suggesting that they segments. Heavy users of the Film festivals Country music concerts celebrate uniqueness, Internet, they like to blog, watch Aerobics Hunting not simply a joy in videos, download applications and Attending basketball games Downhill skiing consumption. They’re visit sites that offer information Collecting stamps Woodworking also price-conscious on beauty and fashion, careers, TV reality shows TV variety shows and believe in Saving magazines, TV and news. And these Downloading applications Traditional country radio on Principle. And young households are comfortable marketers need to be with e-commerce; they have aboveParenting magazines Outdoor Country aware that Filipino average rates for online purchases Blogging Reading online classifieds immigrants may have of books, cloth, travel, and movies.

Beauty/fashion websites Online auctions influence beyond They’re moderate fans of print media Sources: Environics Analytics, DemoStats 2014 their numbers. but have high rates for reading the sports shows featuring soccer and Surveys find that they often offer Toronto Star, Metro Toronto, Globe and tennis, and reality shows like “Big advice to people before shopping for Mail and The National Post. They enjoy Brother” and “Dancing with the Stars.” various goods and services. Obviously, a mix of financial, entertainment and And though they’re only light radio this latest wave of newcomers relishes parenting magazines, including Parents, listeners, they do tune in stations that the opportunity to have an impact on FASHION, Canadian Geographic, Elle offer multicultural programming, their communities. And given their and NOW. As for TV, they fall into the big band music and hip hop. Because fast-growing numbers, the Filipino midrange quintile as viewers but have many of these citydwellers take public market should have a substantial high rates for tuning in news programs transit to work, they respond to outdoor impact on marketers as well. like “CBC News” and “CTV National,” July 2014

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Kicker Targeting & Acquisition

Case study

Air Miles for Social Change Pilot YMCA program shows loyalty incentives are a significant driver to motivate Canadians to exercise

By Amy Bostock

Background People are ready to make healthier and more sustainable choices, all they need is a smarter incentive. That’s why LoyaltyOne created AIR MILES® for Social Change. We partner with organizations nationwide inspiring people to make better choices.

By giving governments, non-profit and public sector organizations access to the power of the AIR MILES reward program, including our marketing channels and use of AIR MILES reward miles as an incentive, we can help improve program participation rates and ROI. In the process, we provide knowledge and program insight to our partners allowing them to learn from their success and accelerate positive behavioral change across Canada.

Motivating healthy living choices According to the results of a landmark program between AIR MILES for Social Change, YMCA Canada (YMCA) and the Public Health Agency of Canada (PHAC), loyalty programs have an influential role to play in encouraging healthy behaviour.

“We were approached by PHAC to be the facility where they could test this pilot,” says Darlene Frampton, Senior Vice President of Brand Strategy (Acting), YMCA Canada. “It seemed like a great partnership since we all share the values of rewarding active living.”

The nationwide pilot program, comprising over 46,000 YMCA members across Canada, gave AIR MILES® reward miles for visits to YMCA health, fitness and aquatics facilities. The pilot involved 15 YMCA locations across four YMCA Member Associations in Canada. This resulted in 63% of participating YMCA members taking part in physical activity between one to six more times per week in comparison to their activity during the same time in the previous year.

July 2014

“These results have been extremely exciting and rewarding,” says Frampton. “Our retention rate went up and our drop off rate declined dramatically.”

Overall, the YMCA saw a 6% lift in incremental visits compared against the control group. Given that 31.5% of Canadian children are now considered ‘overweight’ or ‘obese’ and coupled with declining levels of physical activity, a particularly encouraging aspect of this pilot was that 18% of participants whose visits increased were children and youth, a priority for PHAC and for YMCAs across Canada.

“This is particularly great because the YMCA is very focused on helping children to reach their full potential.”

Commissioned by YMCA and PHAC to devise a cost-effective incentive program to help increase activities amongst adults and children, the pilot study launched in April 2013 and is still in market. Results reported here are up untilDecember 2013.

The program offered 25 bonus reward miles at sign-up, with an ongoing offer of one reward mile per two visits and a special bonus of 20 reward miles for three weekly visits during the months of September and October.

Over 46,000 YMCA members signed up for the program, greatly exceeding the target of 25,000.

“In the fight against chronic disease and obesity, cross-sector collaboration is a powerful approach.

Partnerships like the one between AIR MILES for Social Change, YMCA and PHAC underscore this and show that together we can spark positive change,” says Angela Simo Brown,

General Manager and Co-Founder, AIR MILES for Social Change. “We believe that people are ready to make healthier choices — they just need the right incentive.

“I believe that we’re on the edge of something new and exciting with this program. We (AirMiles) have all these assets – whether it be our one billion marketing pieces a year or our top tier data insights – and now we are using it to drive different types of behavioural changes.”

Health, she says, resonates with Canadians prompting AirMiles for Social Change to use loyalty to fight

our growing obesity problem.

“We used incentives as the tipping point to get people to try something new, in this case exercising. We also used it to get people to repeat the habit.”

“In collaboration with AIR MILES for Social Change, we have taken an innovative approach to inspire and reward increased and sustained physical activity,” says Frampton.

“Anything we can do to promote healthy living for our members is a win and offering this program to incentivize physical activity has exceeded our expectations.”

DMN.ca ❰

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Cover Story

Getting with the program Customer loyalty in the digital age

By Jennifer Lee

T

hink loyalty programs are dead?

Think again. Consider that there are currently more loyalty memberships in the United States than there are people in China and India put together. North American wallets are bursting at the seams with cards promising discounts, birthday lattes and cheaper gas. Loyalty programs are assisting retailers in incenting Omnichannel consumer behavior and arming organizations with consumer data and analytics capabilities. Loyalty programs are also driving mobile innovation and attracting the interest of an expanding range of industries and organizations – most notably brands and manufacturers that want to go direct to consumer. They’re even ❱ DMN.ca

encouraging businesses in different industries to work together to generate member benefits. To the casual observer, it looks like loyalty programs are a huge success. There’s only one problem: People aren’t using them.

When comprehensive data on loyalty program memberships first emerged in 2000, there were approximately 970 million memberships. By 2013, there were 2.65 billion. While loyalty program sign-ups are booming, the number of active users—measured by use of the program once in the previous 12 months—isn’t growing at the same rate. In fact, participation rates actually dropped between 2010 and

2012. How do we make sense of a rise in membership but a percentage drop in participation?

One might blame evolving customer habits. Maybe loyalty is a thing of the past, washed away by the torrent of choices facing the modern consumer. Perhaps in the Amazon era, convenience is king and brand loyalty little more than an afterthought.

Surely that explains falling participation numbers, right?

Wrong. It turns out most consumers—up to 75%, by some estimates—are as loyal as they’ve ever been to an organization in at least one industry. What’s more, 67% will stick with a brand once they know they like it. So what gives?

While consumers haven’t become less loyal to businesses, they have developed higher expectations.

Consumers will remain loyal to a brand if they feel like they’re getting something out of the deal that isn’t strictly transactional. Many loyalty programs promote enrollment with the promise of immediate, on-the-spot discounts, but offer little incentive for continued use. They call themselves loyalty programs, but they are available to anyone and offer roughly the same discounts to all members.

Marketers accustomed to measuring a loyalty program’s success through impressive membership numbers miss the point. Effective measurement requires keeping tabs July 2014

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Cover Story

While consumers haven’t become less loyal to businesses, they have developed higher expectations.”

July 2014

That is what social loyalty is all about. Social loyalty programs dig into purchasing habits and expectations to generate membership rewards and options specifically designed for highly segmented target groups. The result is a degree of engagement that creates two-way relationships between consumers and organizations, relationships that feel individualized and authentic rather than merely transactional.

With social loyalty programs, the inherent “virality” of the digital space is leveraged to create new and loyal customers through the various channels and via the influencers that have the largest, most enduring reach. If marketers know that a given customer is more likely to trust the brand recommendation of a Facebook friend, providing loyalty rewards for sharing product offerings on Facebook makes an automatic—and above all, trustworthy—brand ambassador out of every happily rewarded member.

While these methods certainly spur registration of new members in loyalty programs, they also create reciprocal loyalty relationships between the business and the existing customer.

Big Data provides organizations with the knowledge necessary to microsegment customers so finely that loyalty programs can offer personally tailored offerings across multiple channels. Once a customer becomes an avid user of a loyalty program, it’s easy to keep the relationship going by using the data collected to recognize the most faithful members and reward the top influencers. Rewards can take many forms, and the more variety, the better. A brand ambassador may be given a unique social media status that comes with its own set of perks, or surprised by unusual and unexpected offers and rewards. Examples include American Express’ Front of the Line access to select concert tickets or Sephora’s Beauty Insider program, which rewards members with products and services that aren’t available to the general public.

Engaging in social communities is about listening and responding to

customers’ needs and suggestions. brand experience.

Starbucks has created a digital space So, no, loyalty programs are not for the discussion of product ideas dead. They are however, becoming within stores. Mobile payments, more strategic and innovation splash sticks and cake pops were all in nature. With the continued ideas that began on My Starbucks Idea, development of social media and Big a website that crowd-sources customer Data, organizations must use the ideas and implements those that tools at their disposal to look toward receive the most public votes. What customer engagement rather than better way to generate brand loyalty acquisition, toward the long-term than to integrate Starbucks customers development of existing relationships into the creation of the Starbucks instead of the short-term benefits experience? Starbucks has proven that of sign-ups. Consumers are making loyalty programs can drive real profits decisions about products and services is an organization clearly defines the through engagement and dialogue customer journey. in mobile and digital environments.

With social loyalty programs, this Businesses that focus all their will increasingly become the norm. attention on the immediate bottomThe consumer experience becomes line benefits of increased membership cyclical—instead of gathering risk missing out on some truly information and marketing their rewarding conversations with their best guesses about what people want, best customers. marketers give consumers the tools to promote brands they like. That organic Jennifer Lee is a Partner and the National conversation ultimately influences OmniChannel and Digital Consumer Business the ongoing development of the leader atAd Deloitte.

SMR 046 THEtotal Data Specialists FNL.qxp_Layout 1 2014-02-03 8:02 PM

DATA SPECIALISTS

THE

0n long-term brand experience. The crucial point to remember is that loyalty is a two-way street. Companies must do their part by providing ongoing, tailored offerings based on the needs and interests of individual customers. Understanding the Omnichannel consumers’ path to purchase is critical to understand the role of one’s loyalty program.

Loyalty is all about creating relationships. Consumers are increasingly skeptical of marketing and advertising techniques, and would rather be educated about a product than sold on it. In one survey, Forrester reported that less than 25% of consumers trust advertising, even when they signed up to receive it. Even anonymous online reviews engender more trust than ads. Meanwhile, more than 50% of customers trust product recommendations from friends and family. And 72% cite their own experience as the primary influence on their perceptions of a company.

This latter point may seem banal, but it indicates the importance of end-to-end customer experience. First impressions make all the difference and lasting impressions are critical to enduring relationships.

Marketers are trying to get members in the door, but savvy consumers have unparalleled choice in the channels through which to engage businesses. The loss of a captive audience means marketing at consumers is no longer an option.

Customers want to build relationships with businesses, and they are inclined to trust their social networks—both online and off—to help them make informed choices.

This speaks to the importance of word of mouth. These days, the reach of a single consumer’s voice is remarkably wide, particularly if a good (or bad) experience gains enough traction to go viral. Given what we know about brand choice influence—that friends, family and prior experience matter the most—it makes sense to leverage vocal and mobile brand ambassadors for the organization’s ends.

• Data analytics & customer profiling • Consumer, Business & Specialty lists • Clean, low NIS rate & high PC level coverage • Geo-demographic & Ethnic targeting • List matching, cleansing, merging & purging • Address validation & correction

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For details call or visit 905-474-5271 SMRinfo@smres.com DMN.ca ❰

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Engagement & Analytics

Loyalty to go Why mobile is the next frontier for loyalty programs

By Mohammed Ghalayini

C

ustomer behaviours have evolved at a pace that matches the speed and frequency of smartphone model releases. The majority of Canadians own smartphones and have become addicted to these devices. A study conducted by Google found that about 35 per cent of Canadians became so reliant on mobile connectivity that they’d give up TV before having to part with their smartphone With a few swipes, taps, and pinches at a smartphone screen, a user can: instantly compare prices, read reviews from websites such as Yelp and Epinions, or engage in a growing trend called showrooming (examining merchandise in a traditional brick and mortar retail store without purchasing, and instead looking up better prices on their smartphones and ultimately purchasing online).

According to a GroupM Next and Catalyst survey, in Canada, if the difference between the in-store and online price is more than $15, a majority of customers say they would leave.

Unsurprisingly, these new and evolving behaviours are presenting threats to marketers who are increasingly struggling to stay top of mind and capture a larger share of the customer’s wallet.

A long-standing weapon within a marketer’s arsenal is the loyalty program. By design, loyalty programs aim to encourage repeat business and increase brand affinity. Leading retailers and brands are reinventing the loyalty program model to adapt to today’s smartphone and social media -fuelled reality. Companies like Starbucks, Victoria’s Secret, and Sephora have all invested heavily in mobile-enabled loyalty apps. They have seen some great successes: more ❱ DMN.ca

than 10% of Starbucks’ revenue comes from mobile purchases, and Sephora saw more than 400,000 mobile loyalty passes being created within the first 90 days of launch.

Despite the strong consumer and technology trends and the clear examples of success in mobile, loyalty marketers are lagging. As an indicator, less than half of North American companies have mobile websites and a much lower number have invested in mobile marketing platforms. On the other hand, according to Forrester reports, 44% of consumers are interested in joining programs that offer mobile coupons, and 50% of loyalty program members want mobile gifts and reward certificates. Loyalty marketers must take note and rethink their strategies.

At a basic level, mobile loyalty apps offer consumers convenient ways to lookup points and access deals, and they give retailers and brands a costeffective way to collect customer data.

But leading companies will follow a mobile application approach to create a much larger spectrum of appeal between company and customer, and as a result can create a very unique bond. A crowded app space vying for users’ attention has upped the game quite significantly. The same Google study found that the average Canadian smartphone user had 30 apps installed on their device and had used an average of 12 in the past month.

A successful app must provide the customer with an enhanced experience by being visually appealing, useful, and contextual: Visually appealing Smartphone screen sizes and high processing powers created many options to visually engage with customers. Products and services can be displayed in new and beautiful ways, and key information can be

portrayed effectively to evoke action.

Useful For loyalty apps to achieved positive results, they must be useful. A user always performs a mental calculation on the value of an app in relation to the convenience it provides. If the value isn’t clear, the app will not be used consistently, if at all.

Contextual Mobile technologies are enabling much more relevant interactions with users based on the large amount of data that can be collected: location, on-screen navigation, search commands, preferences/ profiles, social media integration and more. With this data, a much more personalized experience may be provided, think location-specific deals for example.

Secrets to success For a loyalty app to be successful, it must be treated as a strategic priority within the company. Publishing a rushed and poorly designed app can do much more harm than good, a mobile app is a customer-facing platform after all and negative word-of-mouth can spread like wildfire in social media.

Marketers should consider the following critical success factors as they develop their loyalty mobile app strategies: ❯❯ Set Objectives: a loyalty mobile app should have clearly identified customer and business benefits and goals that direct its development. ❯❯ Relevancy and an Experience that Matters: An app shouldn’t be burdensome on the customer. The best apps enhance the customer experience by improving existing interactions. Loyalty apps are positioned well for this since they add convenience, excitement and ultimately savings.

❯❯

❯❯

❯❯

❯❯

Effective Rewards: The scope of offering rewards beyond just points and dollar savings is much larger with smartphones. Gamification has grown as a way to engage and reward customers and might be suitable within a Loyalty app if designed correctly.

Start Small: Most successful loyalty apps began with a small set of features. More complexity can be added in the form of updates and iterations that also keep the customer engaged.

Data Collection and Analysis: One of the most important benefits to a company is the collection and use of valuable data. Smartphones offer many new data streams that must be used to track app effectiveness and build rich customer profiles.

This data becomes invaluable when tailoring deals and informing marketing campaigns.

Collection of Feedback: Userpreferences and app standards are quickly evolving. Mobile loyalty program success will rely on collecting and reacting swiftly to customer feedback. Again, smartphones offer innovative ways to track and collect customer feedback.

The lack of clear industry standards, internal company inertia, and privacy perceptions might present the biggest challenges in initiating a successful mobile loyalty app. The opportunity is too valuable to miss for most retailers and brands and will only become a viable reality if top leadership buys-in.

Ovahi is a Toronto-based mobile loyalty

platform provider. Its Club Ovahi platform serves the small-size retail and food & beverage segment. Ovahi also provides hosted end-to-end white-label solutions for large clients that engage customers in new ways to achieve business results.

July 2014

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Engagement & Analytics

Engagement in a hyper-connected world - part 2 of 3

The building blocks of engagement

By Geoff Linton

A

t a recent CMO summit, I was on a panel to discuss “Customer Engagement”. After discussing engagement for an entire 5 minutes, it happened! Engagement inevitably shifted towards the “omnipower of social”. Before I knew it, we were talking about the value of fans and how to amplify Twitter dialogue.

The panel talked about getting extended reach in the “hope” that this would create new customers. Mass exposure is nice but it’s often not sustainable or efficient. The obsession with Above-The-Line (ATL) tactics is clouding marketers’ judgement.

The core asset of most companies is their current customer base. Within the base, the top 2 deciles typically generate 60-70% of revenues. Smart marketers make customer intimacy a priority and they closely track the engagement of their best customers.

The other thing smart marketers do is profile the middle tiers/deciles.

Measuring the engagement of different customer segments can unlock significant potential value. Forget about engaging the masses (for now); measure your core assets first.

How marketers view engagement The term engagement has many different meanings in the world of marketing. It depends on a marketer’s role in their organization and their perspective. Too many marketers think too narrowly about engagement.

Marketing managers focus too much on channel efficiencies for engagement.

Agencies love to espouse the fluffy virtues of ATL brand attributes. But the C-Suite wants the straight goods and proof that engagement can move the needle (aka the bottom line). As discussed previously, engagement is the #1 marketing strategy for unlocking potential value. 1 ❱ DMN.ca

Part 2 of this article series examines all the factors that influence engagement. Given that engagement is the holistic outcome of cumulative brand contacts and experiences; there are lots of variables and layers to consider.

The marketer’s predicament Let’s first imagine the ideal situation.

Close your eyes. Think about your happy place. In this perfect marketing world, all customers love you and they can’t wait to receive messages from your company. They actively seek out your latest product offerings and upcoming releases. They spend 30 minutes a day on your website.

Let’s get real!!! There is a ton of competition battling for the attention of consumers. Customers are easily distracted. There are specific windows of time when it’s best to send messages (when they have time to read and they have the appropriate device).

Engagement doesn’t just happen… it is carefully orchestrated.

It’s 2014 and CEO’s/CFO’s are demanding answers. They know marketing has more data and a myriad of technology solutions. Surely the campaign management and analytics solutions can spit out an answer? In desperation, some marketers just grasp for the easiest metric. But the reality is that each marketing department should establish their own scorecard and create their own “engagement report”. First we need to clearly discuss what makes up engagement.

The foundation & building blocks [Disclaimer: Geoff Linton was a Professor for 15 years and attended a number academic conferences and regularly scoured through academic marketing journals for fun/insights. All formulas in

this article are presented for illustrative purposes and have not yet been validated by academic research!]

As we discussed previously (in Part 1), engagement has 3 domains: Cognitive, Emotional, and Behavioural. The 3 areas are dependent on each other. Cognitive is the base and without customer understanding it is difficult to create a positive emotional connection with the customer. Behaviour is the by-product of the first two. Each domain is influenced by several variables as illustrated in the functions (formulas) below: Comprehension Comprehension = f (differentiated brand attributes, clear value proposition, familiarity, presence, articulate key attributes, simplicity) Comprehension (cognitive) is the fundamental building block of engagement. Brands that have clear and positively differentiated value propositions have higher awareness and purchase intent. Without a solid understanding of your brand and value proposition marketers can’t move to the next domain.

So how do you get “comprehension”?

Familiarity is an important starting point. A good messaging strategy and advertising campaign keeps companies front and center. Staying “Top of Mind” (TOM) is sometimes a major focus. Classic marketers (and many of the C-Suite) have been programmed that awareness is a highly important metric. But when does your company really need to be TOM? Many marketers make the mistake of trying to stay TOM year round (that’s expensive). Focus on Key Selling Periods. Rather than marketing for mass awareness, pinpoint your top 20% of customers

who generate 60% of revenues and make sure their cognitive perceptions (about your brand) are aligned.

Strategically planned reminders and touch points reinforce your brand attributes and customer experiences.

Remember that customers also interact with the brand through channels that marketers don’t necessarily control: like a call centre and with salespeople. Marketers need to take sample measurements to ensure base engagement is okay.

For example, Shell Canada used to do weekly surveys of random customers to measure their Shell purchase intent, share of wallet, and general satisfaction. This temperature check was a quick diagnostic to flag trends and give them an individual customer baseline.

[Sidebar: Simplicity is Powerful.

Siegel + Gale’s report shows that brands who embrace simplicity outperform average companies.

Simplicity is about focus, clarity, and consistently reinforcing the key message. Some industries are naturally simpler (restaurants, travel, grocery, retail) versus more complex services (banking, cable providers, insurance).

But within each industry there is a wide variance in perceptions and gaps in the overall customer experiences.

Siegel + Gale says each industry can perform better and companies are leaving millions of dollars at risk.

The key lesson is that companies who are highly disciplined with their communications and customer experiences score better. And the payoff… “Customers would pay 3%-5% more for simpler experiences”.2] Emotional Emotional = f1 (permission/respect, responsive, unique content, trust, multiple subscriptions, consistent July 2014

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Engagement & Analytics brand experience) + f2 (high satisfaction, strong perceptions on brand’s key attributes, “Top of Heart”, loyal, word-of-mouth, simplicity) The second building block is to create a strong emotional connection between the brand and the customer.

Building and nurturing the emotional connection takes time and is the cumulative result of their experiences and investment. The emotional domain is divided into two different components: Marketing (f1) and Customer (f2).

Marketing: Marketing helps create the opportunity for engagement.

Marketers build programs and tools to help customers make decisions.

Marketers benefit by getting data and response.

Digital messaging is a more effective channel of communication vs. traditional marketing when building an emotional connection with consumers. Digital gives the customers control of the content they want to receive (pull strategy) while traditional marketing floods the masses in hopes for consumers to see it (push strategy). The first step in digital marketing is to respect customer’s permission and privacy.

Smart digital marketers gather explicit permission and also use preference centres so that customers can easily tell you what they want and when they want it. The fact that a customer gives you explicit permission indicates a level of trust. Preference centres gives them comfort and control. That makes them feel good. Longer tenure is also a forward looking indicator of positive engagement. Email open rates by tenure shows a “U” pattern. In the first two months, open rates are above 30% and then they slowly decline over the next 12 months, stabilizing at about 20%. After 25 months they trend upwards to 25%. 3 Marketers should always be in control of their contact strategy. There are a number of digital tactics that can be used. The trick is to balance relational building with response driven content that generates action and leads to a transaction.

Personalized and relevant messaging shows the customer that you respect and value them. Mobile apps provide further utility for regular users.

Interaction through social channels is a great way to reinforce brand attributes in an engaging and timely way. In a hyper-connected world, customers expect that brands listen and are responsive to their feedback July 2014

and requests.

Any content that you send needs to be relevant. The content needs to be aligned and adjacent to your core brand strategy and value proposition.

Regular features are a good way to reinforce utility but surprise content is a great way to build a stronger emotional connection. Sometimes the habit gets in the way and customers focus on the quick look - they are emotionally tuned out. Marketers need to jolt customers once in a while.

For example, The Weather Channel has a huge community who check their weather forecasts several times a day.

Scot Safon, their CMO, says that he believes that the daily weather lookups are a great ritual but wonders what the relative value of this behaviour is.

Lookups could be construed as habit versus emotional connection. Scot’s goal is to build a stronger emotional bond with each subscriber. In the winter of 2014 when an ice storm was approaching the City of Atlanta, The Weather Channel was the first to send out a weather alert warning Atlanta residents. The Governor said the storm was NOT going to happen.

The Weather Channel was right and there was chaos on the highways.

The Weather Channel won “Top of Heart”. [Editor’s Aside: It would be interesting to measure the emotional equity of “could you do without The Weather Channel App?”. This would be a powerful data point for the weather channel to track.]

Building the emotional connection takes time and is the cumulative result of customer’s experiences and investment. Leverage those surprise and delight moments. Make sure you are there for the “moment of truth”. Help customers during their key marketing journeys! [Note: Inbox Marketer is tracking and time stamping journey completion for our email marketing clients.]

Customer: Smart marketing is nice but it only matters if the brand can connect with an individual.

Engagement is in the eyes (and heart) of the customer. With today’s data and technology, marketers have the ability to not only measure “Top of Mind” awareness more easily, but can also calculate “Top of Heart” at an individual level. Emotional connection is more important than awareness.

When a customer connects emotionally, they react positively and identify with the brand. They relate to the key brand attributes and they support the brand to their peers. They

report higher purchase intent. The evangelists wear the brand as a badge.

Two of the key metrics for emotional connection is satisfaction and “willingness to recommend to others”.

Companies don’t need to promise the world and according to Siegel + Gale, “Simplicity inspires deeper trust and greater loyalty in customers”4. Deliver on what you promise and people become more attached.

Behavioural Behaviour= f (clickstream metrics, time intervals between response, survey participation, create reviews, breadth of content consumed, mobile usage, website depth, shopping behaviour) Behaviour is the true measure/ essence of engagement and there are many actions to consider. Examine what customers are doing. Start at the “stimulus stage” and observe the response behaviour. What happens when you send an email newsletter or direct mail piece? Do they go immediately to your website or phone your call centre? How fast do they respond? Are they getting tired or fatiguing? Email marketers track open rates and click rates to get a rough measure of engagement at an individual level. The next step is to get customers deeper on your website and get them involved. Consumers who answer surveys and create User Generated Content (UGC) are more engaged (they took the time to respond). Shoppers who read reviews on a mobile device are 127% more likely to buy (versus 66% for desktop shoppers). 5 These “apply” actions should be weighted more heavily in your models.

To put behaviour in context, marketers should also examine “root metrics”. Recency and frequency are two key behaviours. Most engaged customers click regularly (most recently) and they shop 30% more frequently. Look at your most recent clickers and examine the longitudinal behaviour (stay tuned for Part 3 in the Article series). What is their average time interval between responses?

Loyal customers are more predictable (less variance).

The breadth and depth of content is also a good indicator of interest.

Customers who consume only one type of content (deals, specials) are too singularly focused. Digital marketers typically find that their top customers consume both relational and product content. Over 40% of households

have more than 3 different devices (computer, smartphone, and tablet).

Engaged households consume your content on multiple devices.

Conclusion Engagement is like flecks of gold spread out in the sand. You can’t see the gold but you know it is there.

Marketers need to sift through the data to filter the sand from the gold. Select a reasonable scope of what you can influence and then apply your processes and tools to measure. Then you will see the real value of what you have.

Measuring engagement is unique to your business model and marketing strategy. But the Cognitive/ Emotional/Behaviour model works for most businesses. The most challenging part is getting all of the data points.

The 3 steps are easy. Take customers’ pulse by tracking “comprehension” metrics. Next measure the emotional connection. It’s great to have high “Top of Mind” awareness but also strive to be “Top of Heart”. Marketers need to nurture the customer’s emotional connection to their brand. If the emotional connection is fatiguing there are direct ways to stimulate.

Finally, behaviour can be monitored and analyzed in a myriad of ways. The fun begins when you apply analytics and you see the real insights.

Part 3 of this article series reviews several different examples of how marketers are attempting to measure engagement. We will discuss their scope, methodologies, and metrics/reports.

Geoff Linton is a co-founder of Inbox Marketer Corp. and a direct marketing expert with more than 25 years of applied experience in both client and agency roles. His experience spans many industrial sectors, including financial services, telecommunications, consumer packaged goods, technology, manufacturing, and entrepreneurial businesses. Geoff has guided clients in digital messaging strategy, and analytics for Inbox Marketer over the last 12 years. Previously Geoff was Associate Director for the Air Miles program where he spearheaded major launches and was actively involved in targeted marketing initiatives and customer/campaign measurement. Geoff holds both a P.Eng and MBA from Queen’s University in Canada. @Geofflinton 1. Bullish on Digital: Mckinsey Global Survey Results, McKinsey & Company, 2013 2. Global Brand Simplicity Index 2013 report, Siegel + Gale, 2013 3. Retailer Case, Inbox Marketer, 2013 4. Global Brand Simplicity Index 2013 report, Siegel + Gale, 2013 5. The Conversation Index Volume 6, Bazaarvoice, 2014

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Engagement & Analytics

Finding safe haven in the loyalty space Despite changes in technology, market forces and consumer behaviour, there is always one place to center data efforts where there is reasonable expectation of success -- and that is on customer loyalty

By Amy Bostock

I

n August of 2012, the New York Times declared 2012 “the year of Big Data.” Fast-forward to today, and the backlash against the term is in full swing. The usual consulting and IT suspects might now refer to “smart data,” “small data,” or “intelligent data” -- phrases designed to demonstrate that the speaker is positioned well ahead of the data analytics curve.

According to Rick Ferguson, Vice President, Knowledge Development for Aimia, the rapid evolution of the phrase “Big Data” speaks to the speed with which technology now disrupts legacy business models and marketing disciplines. ❱ DMN.ca

“You have got big technology players that are all trying to own the term and define it. You tend to see a lot of definitions centred around terms like ‘velocity’ and ‘volume’ and ‘veracity’.

But everybody has got a different definition of what big data is. I think that is why it has gone from literally a Ted Talk topic to a punch line within the space of a couple of years.”

The birth of a buzzword “Those of a certain age remember that, back in the late 1990’s, early 2000’s, there was a burgeoning buzzword marketing revolution around CRM,” says Ferguson. “At the time, the

conversation and the term were being driven by the big technology players who wanted to sell CRM software and services into big companies. So, it was a similar situation because everybody was talking about customer relationship management and nobody knew what the definition was.

Everybody had a different definition depending on what they were trying to sell. The result of all that hype around CRM was that there was a lot of money spent on CRM implementations that didn’t really have a sound, strategic purpose. A lot of it crashed and burned. A lot of companies spent a lot of money on CRM and then didn’t

really have any measurable return to justify the amount of money that they spent.”

Now it seems like there is a similar thing happening with big data as big technology players all try to own the term. The difference, he says, is in the type of data being talked about.

“Back in the old days, if you were a customer-centric marketer, the transactional data was the brass ring.

If you knew what your customers were buying and when they were buying it and how much of it they were buying … if you could get that data and if you could even better attach it to the level of the individual customer, you were in July 2014

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Engagement & Analytics

The difference now, I think, is that transactional data used to be the ceiling but now it’s the floor of your customer strategy. ” pretty good shape because, then, you could start to understand them and build a one-to-one relationship with them and use it to deliver relevant marketing offers. The difference now, I think, is that transactional data used to be the ceiling but now it’s the floor of your customer strategy.

And now, there is all this, what we call, unstructured data that we’re all trying to figure out how to attach to marketing. So, social media data, mobile data, online search data, even television viewing habit data … so, a lot of big companies are trying to figure out how to take that unstructured data and match it to transactional data.”

The key, he says, is to figure out a way to start to connect some of those dots or interactions.

“I’m talking about all of the brand interactions that you might have through all these different channels that result from all the different data sources that you’re trying to collect.

If you start to connect those dots, you can start to get a richer view of an individual customer. So, connecting social media activity to transaction data and using that to figure out what influencers are … what effect they are having on purpose, whether that results in new definitions of customer value. All of that kind of stuff is going to change and that is the aspect of big data that really interests us.”

Where to start In terms of trying to figure out where to start, we hear a lot of companies talking about ‘smart data’ and ‘intelligent data’. Everybody is trying to come up with the next catch phrase.

“We just call it data. And if you want to put some boundaries around what data is useful and what you should actually focus on, we just call it ‘customer-centric data’. It’s the data that is most predictive of the value of a customer relationship. So, that is where we encourage our clients to focus their efforts and that is where we focus. It starts with the transaction and then, you work out from there and try to connect those data dots, July 2014

whether it’s online search activity or social or mobile. Then you can really start to develop some insight that allows you to focus your efforts and you don’t have to worry about drinking from the fire hose.”

Connecting the dots On the social side of things, Ferguson has some top picks for who has figured out how to connect the dots.

“In the U.K., we operate the Nectar Loyalty Program which is the largest loyalty program in the U.K. We’ve done things like build mobile apps with our partner, Sainsbury’s (one of the core sponsors of the Nectar program). So, we can actually see how customers are using the app in the Sainsbury’s stores, what offers they are responding to and are able to connect that mobile data back to the core purchase. We also have the ability to use the Yahoo Search toolbar and allow members to sign in as Nectar members. Then we can take a look at how their search history influences their shopping behaviour and as a result we can design advertisements that deliver better return than we could otherwise.”

Another successful program, he says, is the Starwood Preferred Guest Program.

“A few years ago, they developed a social media portal so that Starwood guest members could log in with Facebook, Twitter or one of their other social media log-ins. And then, they had access to a community forum where they could share information with other Starwood members, talk about the properties, get tips and then interact with the brand itself.

“What they discovered was that heavy social media users were also amongst their best customers. They tended to stay more and they tended to spend more on property when they were there.”

As a result, Starwood Properties were able to start using some of that information to develop new models of customer value that they didn’t have before and to start to segment their customer base and member base

differently based on the fact that now they knew that heavy social media use within this platform was predictive of customer value.

I am Canadian…I am loyal Ferguson believes that similar loyalty initiatives could work equally well in Canada, particularly around the mobile space.

“We just did some research with Columbia and released a white paper called ‘The Rise of the M-Shopper’.

We looked at the ways consumers use mobile devices in retail environments.

Our definition of an M-Shopper is a mobile-assisted shopper, so anyone that told us they used a mobile device in a store, whether it was to check for

lower prices or to send a note through social media or to read a product review online. There are all kinds of different ways that consumers use the devices in store.”

The research looked at what types of behaviour are manifesting themselves, for example, the hype around the show-rooming topic over the past few years. What it found was that when it comes to shoppers that actually do predatory show-rooming, where they literally walk into the store to look at the flat screen TV, knowing that they are going to buy it online, that universe of customers is actually quite small.

“Among M-Shoppers (survey included 3,000 consumers in the U.S., U.K., and Canada), we found that the predatory show-roomers, we call them ‘exploiters’, is about 5 per cent. So, it is a really small group. But the other segments that we looked at, what we called ‘savvy M-Shoppers’ were folks that were aware of price discrepancies and were possibly going to buy online but were still persuadable. We looked at experience seekers, the folks that actually value the in-store experience

DMN.ca ❰

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Engagement & Analytics and what we called the ‘traditionalists’, the folks that prefer the brick and mortar experience. If they use their mobile device in-store, it was mainly to do a product review check or to ask advice from their social network. In Canada, the traditionalist segment is actually quite large, compared to the U.S. and the U.K. segments. So, I think it was 30 per cent overall, the traditionalist segment. And when you aggregate all of our survey responses within Canada, it is about 50 per cent. I’m not sure why that is, other than there is a large segment of Canadian shoppers that use mobile device in-store that prefer the in-store experience and are willing to trade that experience for a higher price -- that was interesting to us. All that is to say that I think there is a real opportunity for retailers, particularly brick and mortar retailers, to embrace the mobile experience in-store and start to figure out ways to use that device to build relationships. And then, the data that they collect from those interactions could prove to be quite valuable.”

Creepy versus clever …where to draw the line “We, as a company, put a stake in the ground and we wrote a white paper called ‘The New Data Values’. It was written by our COO, David Johnson.

We think that the future is in opt-in, transparent, clear value exchange use of data, which you can use the loyalty programs … a microcosm of that, the way that could look,” says Ferguson.

“Because within the loyalty program environment, if you sign up for a retail loyalty program, because of the fact that the program has been around for so long and because they have been so successful and because they are

The secret to a successful loyalty program lies in giving your customers a high degree of control over that relationship” pretty big with us in Canada, as well as most other developed markets, customers have a really clear idea of what is happening. So, they know that signing up for the program … they are opting into data collection for the most part.”

They might not understand precisely how it works, he says, but they have a vague idea that you are collecting information about them. But, and this is a big one, they also understand that they are getting something for it, that they are getting recognition and reward.

They are getting points or miles.

They are getting more personalized and relevant offers. If they are good customers, they might get some recognition that, as good customers, they might not get otherwise.

“On a larger scale, we think that is how you can toe the line on a positive side. The way we expressed it was with an acronym called TACT, which stands for Transparency, Added-Value, Control and Trust. Whether we are operating our own programs or whether we are building programs on behalf of clients, this is the hill that we will march towards, which is that data collection should be transparent so that consumers have a very clear understanding of what data you are

Highest user adoption

collecting, why you’re collecting it and who else sees it. It would be a move away from an incomprehensible 60-page T&C document to a very short, concise, clear idea of what it is that you are collecting and why.

And then, added value references the reward, the recognition element.”

Guardians of your data The secret to a successful loyalty program lies in giving your customers a high degree of control over that relationship and to act accordingly as a trusted guardian of your consumer’s data. So, it is about data security, data management, data sustainability and making sure that, in every case, if you are going to share that data with a third party or partner, that your consumers understand that that is happening and why and what they are going to get out of it.

“It is a journey,” says Ferguson, “and we take a forward-looking position. Like the rest of the industry, we have a lot of work to do to get to that hill where we can plant the flag. But we have said that that is the direction we’re going. We certainly encourage ourselves and our clients to stand behind a set of data values, whether you use the TACT acronym or something else. We think that that

Lowest cost of ownership

will point the way towards a future that stays on the positive side of the line that we were talking about.”

Research conducted by AIMIA a few years ago made it pretty clear that, within the universe of loyalty programs, there is a much higher level of comfort when it comes to sharing personal information, compared to general marketing. Loyalty programs are viewed as kind of a safe haven by both millennial consumers and older consumers. The main difference the survey found was that millennial consumers, overall, are a bit less concerned with data privacy and security. They are more willing and open to share information online. But they also have a much more developed sense that they should get something in exchange for that personal information.

“They are aware that their personal data is worth something.

So, that was interesting. But for all age groups, loyalty and reward program environment was viewed as a safe haven. I think it’s because the programs are ubiquitous and have been around so long. Again, there is that clear expectation of getting something in return, which, I think, raises the level of trust.”

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July 2014

Reach marketers & financial executives Our magazines are must-reads for key executives in core corporate competencies.

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Operations & Logistics

Mobile is the key to reaching loyalty marketing’s pinnacle – customer advocacy

By James Christensen

T

he meteoric rise of smart phone usage by consumers has expanded the reach of brands and their efforts to engage customers. At the same time, Loyalty programs that started with simplistic methodologies such as point accumulations have evolved to become a powerful tool for brands to drive customer engagement. In a world where connectivity is the foundation for how we make decisions, loyalty initiatives can now dictate the purchase, rather than simply record it. In a mobile world, marketers can now operate in real time; both before, during and after a transaction.

Through mobile, loyalty will transcend its early goal of frequency and retention and reach its absolute pinnacle; customer advocacy.

In the beginning, loyalty captured an action, analyzed it, and attempted to use that information to influence future behavior. Points were accumulated, new offers were sent after the fact, both in an attempt to reward a customer for their loyalty.

The communication between the brand and the consumer was loyalty marketing’s greatest weakness, as points statements were generally well after the fact. The effectiveness of these efforts improved as internet penetration rates increased, allowing customers access to web portals.

The last great hurdle for loyalty was timing, the ability to connect in real time and engage the customer before, during and after the purchase. Many ❱ DMN.ca

POS systems started to allow for real time “earn and burn” of points, further engaging the customers and putting loyalty top of mind. Emerging mobile technology has and will continue to allow brands to maximize retention efforts like never before.

Card-linked offers, mobile wallets, location-based marketing, eCoupons, and many other emerging technologies are now available to loyalty marketers and each one will create new ways for loyalty programs to engage customers.

However, the key technology that will tie all of these offers together is mobile. Brands jump to a new level as customers can give a constant flow of information about where they are, what they are doing and what they want. Engagement happens in the customer’s life when they actually want and need it. A great of example of this is Foursquare, which is used by a customer to identify themselves when they get to a specific location, which in turn allows the brand to send a time-sensitive offer. An even better location-based technology facilitated by mobile is Apple’s iBeacon, which once turned on doesn’t require the user to do anything; the brand simply detects it and acts accordingly based the customer. Time is the most coveted asset of all, and loyalty marketers have always known that for every extra action a customer is required to take, the percentage of people who will follow-through goes down. We are now witnessing, for the first time, a seamless integration between loyalty marketing and customer behavior.

As the mobile technology evolves and adds greater value to the customer

experience, the standard metrics for loyalty marketing will reach their absolute potential. Customer retention, purchase frequency and monetary value per client will all increase simultaneously with higher customer engagement. When this happens, we predict that the effectiveness of loyalty marketing will increase at a rate never seen before, reaching its peak in regards to retention, and open up new frontiers. Our prediction: the new frontier for loyalty marketing will be customer acquisition via existing customer advocacy.

Customer referrals are a by-product of satisfaction with a product or service. Consumers recommend things, either proactively or by request when they genuinely believe the same value will be realized by the person they are advocating to. When we stop and analyze some of the new technology being introduced, you can already see that advocacy is happening spontaneously. When we announce on Foursquare our arrival at a store, or a recently purchased Groupon offer, our most trusted relationships see these brand interactions. In that moment, the consumer has received real value from loyalty marketing and the recency of the interaction dictates that they are most likely to communicate their satisfaction to those closest to them. Using real-time technology, a consumer having just made a purchase can receive an offer that can be shared with friends, where both parties will be rewarded if the friend makes a purchase. Not only does this encourage repeat purchases, you have now capitalized on the loyalty of a

customer to attract new customers in a way which can be tracked. In this scenario, loyalty marketing has now transcended retention and become the driver for customer acquisition; all through mobile technology.

Much like loyalty, customer advocacy has always existed. Years ago, Loyalty “programs” harnessed existing customer loyalty using database and transactional technology. Today, especially with the growth of social tools many brands are focused on harnessing “word of month” or advocacy. Having your best and most loyal customers motivated proactively to be advocates is the pinnacle of Loyalty. Mobile technology will enhance loyalty marketing programs in many ways but the ability to communicate in real time, in both directions, will allow loyalty program members and brands to engage in in-depth conversations. If those interactions involve spreading the brands message through advocacy of the loyalty members, it may make existing loyalty programs the most powerful and cost effective tool for new customer acquisition and growth.

James Christensen is the CEO of RewardStream, a loyalty and referral marketing software provider. James is a well-known figure in loyalty, with a background ranging from credit cards and banking to gift cards and loyalty. A pioneer in gift card technology and real time loyalty programs and is an expert in referral marketing. He has worked with numerous brands such as, Nike, Levi Strauss, Radio Shack, Choice Hotels, Eddie Bauer, AT&T, Virgin, RBC, and TSYS.

July 2014

CASL Canadian Anti-Spam Law

Inside: • Location economics to the rescue • CASL: The good, the bad, and the ugly • No need to panic!

• CASL: it’s not just about email • Countdown to CASL

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Location economics to the rescue Three steps to targeting the right customers CASL free

By Phil Kaszuba

Before you start your next campaign consider this. With the new stringent anti-spam regulations that took effect on July 1, 2014, the task of targeting customers and delivering optimal campaign results becomes more challenging and important than ever. No longer can marketers electronically contact potential prospects without their consent. It is no surprise that digital marketing may just need to go on a hiatus as direct marketing steps in. But even with direct marketing the pressure for marketers to reach the right customers with the right incentives is very real as companies strive to keep their customers happy and compete to win the business of potential prospects.

Successful marketing campaigns have one thing in common. Their messaging zeroes in on the right audience. Inundated with a slew of marketing collateral customers are becoming more particular about what they receive, what they decide to open and what they action. A campaign may consist of the best messaging but if it doesn’t target the correct audience the results are poor. Also, targeting your entire database and utilizing the ‘Spray and Pray’ method and hoping for the best has proven to be ineffective and most of all very irritating to our customers. So what can you do to stand out from the rest to retain and engage your customers and potentially yield new ones? The answer lies in having the right tools to segment and target your audience by factors like proximity, granularity and insights.

Location Economics to the rescue. Location Economics leverages location-based information to deliver deep insights about your customers so you can effectively plan your next campaign and consistently deliver viable leads. DMTI Spatial utilizes location solutions that allow you to cleanse and validate your address database thereby increasing direct mail delivery and help you enhance your customer view by enabling you to target your customers by proximity, granularity at a neighbourhood level, and append demographic information for greater customer insights.

So instead of rolling the dice and hoping that your next campaign reaches the right audience consider the following steps.

❱ DMN.ca

Step one Segmenting your campaign by proximity to a location, like your store or other assets. This may seem obvious but most direct marketing campaigns are segmented via postal codes which may or may not be targeting customers that often frequent your store location. Knowing exactly how far and how long customers are willing to travel to your asset location is vital in not only reaching the right customer but also reduces marketing costs associated to targeting the outliers. DMTI performs proximity segmentation by drive time and drive distances which allows you to assess the customers that gravitate to your store.

Additionally, proximity segmentation does the leg work for you in determining if customers are willing to travel to your store from across barriers like a major highway or bridge. Such barriers, even if within optimal distance to your asset, play a large role in deterring customer travel.

Step two Targeting customers at a neighbourhood address point level versus postal code level. We’re not saying that using postal codes to segment your marketing campaigns is wrong but postal codes do change.

These changes occur due to urbanization which leads to the creation of new neighbourhoods. Also, some postal codes may include rural communities with a large geographic coverage. DMTI will help you visualize the rural trade area, assess its size and pinpoint the address points you should be focusing on. This in turn allows you to slim your marketing costs by focusing only on your customers or the prospects you want to target. Segmenting your database by address points and visualizing it on a map is a form of trade area analysis that allows you to define your consumer distribution via customer clusters. These clusters not only pinpoint your best customers but also provide you with an opportunity to target potential prospects located near them that likely share similar characteristics and buying habits. Furthermore, you can focus on specific neighbourhoods to target customers for up-sell or cross-sell campaigns. DMTI’s unique identifier will link customer information across all databases to help you analyze which customers have less than 2 products for additional buying opportunity. This fine tune analysis will help you target your existing customers and highlights potential ideal prospects that would likely benefit from similar products,

ensuring your campaigns are targeting individuals that fit the product requirement.

Step three Appending demographic and neighbourhood characteristics data. Knowing where your customer are located and how far they are willing to travel is just one part of the equation. To truly understand your customer you need to know elements such as age, income, ethnicity and neighbourhood characteristics which describe the type of dwelling residing in the area of interest. Is it mostly condos or houses? Is this a residential or a commercial zone?

DMTI will help you optimizing your knowledge on neighbourhood information which will drastically help you segment your marketing campaigns and target the right prospect. For instance, if the individual lives in a condo most likely they will not need a lawnmower. Well, you get the idea.

The above three steps force you to get to know your customer, something that every marketer and sales person should strive to do first. Once you have a streamlined list of customers don’t forget to add context data such as name and phone number for a personalized feel to your direct mail collateral and a call campaign to follow. So let’s recap. Segmenting your next campaign by specific parameters such as proximity, neighbourhood, demographics and dwelling type factors helps you target your ideal customers, reduced costs associated with targeting the wrong prospects and satisfies your customers by not overwhelming them with print material that doesn’t relate. So what are you waiting for, let’s get started!

Phil Kaszuba: In his role as President at DMTI, Phil is responsible

for leading the organization as well as maintaining strategic long term relationships with existing clients while building growth opportunities with potential customers. Phil comes to DMTI with more than 20 years of experience building multi-channel sales and sales management teams in a number of high tech companies. Phil spent the last 6 years with Sun Microsystems, most recently as Vice President, Canadian Systems Business Unit. Prior to that, Phil was with BroadVision Inc. as Canadian General Manager and Seagate Software leading the North American Sales team selling their flagship Crystal reports product during their 100% year over year revenue growth. As a member of the Leadership team he was also instrumental in executing their market share strategy and their VAR/SI channel business.

July 2014

the RiGht

with location economics www.dmtispatial.com | info@dmtispatial.com | 1.877.477.3684

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CASL: The good, the bad, and the ugly

By Robert Burko

CASL is a game-changing piece of legislation that affects every marketer within Canada and abroad.

Over the past several months, I have been all over Canada and the USA talking with marketers in every imaginable industry all about CASL. While my goal has always been to explain CASL and get people prepared, the wide variety of frontline encounters with the marketers that are feeling the CASL crunch has afforded me a unique perspective of the actual impact CASL is having on such a diverse range of organizations.

Is CASL good or bad? Is CASL actually solving a problem? Above all else, if the stated goal of CASL is “An act to promote the efficiency and adaptability of the Canadian economy” does it seem like that goal is being achieved? This article will take a critical look at the impact CASL is having on organizations and dive into the good, the bad, and the ugly effects we’re seeing so far.

CASL: the ugly On May 11, 2004 the Federal Task Force on Spam was established by the Canadian Government to lead the ❱ DMN.ca

anti-spam action plan for Canada. The objective was a noble one, because they were tasked with finding a way to curtail the hoards of unsolicited commercial email being sent to Canadians. After about a decade of effort, the end result is CASL. But, do you know what the big problem is? Do you know who doesn’t care at all about CASL? Spammers!

The people actually sending the most blatant and obvious spam (... including that royal prince who just needs to borrow your bank account to store a few million dollars…) do not care at all about CASL. The majority of this spam is being sent from somewhere far overseas. And while it has been claimed that violators of CASL will be punished no matter where they are, that fact is simply not being taken seriously. The chance that someone from the CRTC is going to hop on a plane to track down a spammer in a distant cave somewhere and impose a fine on them is just incredibly remote.

It is more likely that CASL will be enforced on organizations residing in Canada, where the administrative fines can be levied more easily. But, are they actually going to find any real true spammers

here that are clogging our inboxes? Spamhaus, a highly respected anti-spam organization, publishes a list of the “Top 10 Worst Spam Countries” to identify where spam is coming from. Do you know which country is never on that list?.... Canada! And, do you know which country now has the most strict anti-spam law in the world?…. Canada!

So, the reality is that all the stuff Canadians would most obviously label as spam is not going to be impacted or curtailed at all. This means we have to ask ourselves: Who is CASL actually impacting?

The ugly answer is that if CASL isn’t stopping the real spammers, it is only creating more work, more red tape, more bureaucracy and more headaches for the marketers who are trying to do things properly in the first place.

Does imposing more hurdles for Canadian marketers and putting them on an uneven footing with their international counterparts--while doing nothing to stop the onslaught of spam that originates from other countries--achieve the goal of helping the economy? I’ll let you decide.

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CASL: the bad As I talk to marketers from coast-to-coast in North America and explain the new rule book that is CASL, everyone always has that exact same expression: It’s a mix of frustration, anger and utter disbelief at the new procedures they must follow. It’s not that these marketers don’t like following the rules, because they truly have no problem with that. It’s that they cannot believe how extreme the new rules are.

At Elite Email, we work with big and small marketers alike, and all of them understand the best practices behind using email effectively. The marketing manager at that retail chain you like to shop at does not want to inundate you with emails you might consider spam, because they understand that will frustrate you and that, in turn, hurts their brand. These legitimate businesses don’t consider themselves spammers. The people they are emailing do not consider them spammers. And yet CASL sort of treats them like public enemy number one by prescribing ultra strict guidelines on what can and cannot be done.

There are definitely certain parts of CASL that marketers are completely fine with and support wholeheartedly. Things like making the unsubscribe process absolutely mandatory is good. Things like preventing sneaky or misleading subject and sender information is good. However, having to audit every form that feeds data into your mailing list to make sure it says “you can withdraw your consent at any time” is just extra work with no added benefit.

CASL is riddled with requirements and nuances that make a marketer’s job harder. It doesn’t make it impossible, since email will still continue to be highly effective in a post-CASL era. It just makes it way more complicated. That is why the real winners of CASL are the lawyers. Because now every organization has a huge compliance burden, which is the last thing they need, when it’s already more difficult for Canadian companies to compete on the international stage.

CASL forces marketers to change every workflow, intensely audit their databases, create new policies, and perform a laundry list of other tasks to ensure compliance. Many organizations, despite their very best efforts and months of preparation, are still finding it difficult to be fully compliant without the risk of some non-CASL complaint message being sent out. And, if it does get sent out, should it really expose the organization to up a $10 million fine? Does the punishment fit the crime at all?

I remember when the internet was new and marketers were running around trying to figure out how to market effectively in this new online world.

Now, starting from July 1, Canadian marketers once again have to figure out how to market effectively and compliantly in a post-CASL world.

CASL: the good CASL is not all bad. While it’s easy for marketers to be scared of change and loathe the idea of more compliance hoops to jump through, there is most certainly a silver lining to CASL. First of all, it should be stated that Canada definitely needed some sort of law that regulated electronic messaging. After all, it’s 2014 and in a world where people are “digitally connected” every July 2014

// 23 moment of the day, having no law at all makes it a bit exact right target. Marketers don’t need collateral too much like the wild west. Some rules are necessary damage, they only really want to hit the target, and and, while CASL may have gone a bit too extreme in now their hand is going to be forced more in that many cases, in other cases it does properly establish direction. new guidelines that really do make sense. As a proud The other big benefit that CASL will bring to Canadian and proud marketer, I support that it marketers following the new rules is that there will did not make sense for Canada to be one of the few be less competing clutter in a consumer’s inbox. For countries that did not have any law in any form about instance, in the pre-CASL era, an average consumer electronic messages. may have gotten 10 emails today from various stores, One of the nit-picky things CASL establishes each one vying for that consumer’s attention. And is that pre-checked ‘mailing list sign-up’ boxes on if you’re in the mix of those 10 emails, you have a forms are no longer allowed. The good ol’ pre-checked 1 in 10 shot of getting the attention you crave. In a box is a trick marketers have been using for years. post-CASL era, that consumer may only have opted in But the reality is that those are effectively tricking to your mailings and the mailings of two other stores. people to join your mailing list, possibly by accident.

Now they only have 3 emails sitting in their inbox, Having people check a box to tell you “yes, I want your so the odds of your email getting opened (and ideally newsletter” results in a better quality mailing list converting) are way higher. right out of the gates.

The email marketers who learn how to effectively Any marketer or salesperson will tell you that operate in a post-CASL era--and can adapt their it’s not just about the volume of leads, it’s about the list-building and engagement strategies--will be very quality of leads. CASL does a good job of forcing successful. While CASL does change the game, the marketers to stop measuring the size of their mailing core fundamentals of building a high quality lists list and effectively forces them to look at the quality and sending emails that people genuinely want to of their mailing list. open and engage with stays the same. It may take I talk to marketers all the time who get excited some time to get used to all the new compliance rules, that their mailing list has 10,000 people on it. But, but soon it will be second nature and it will simply when they send it out each week or month, it is the become the way things are done. exact same 20% of people who open it. Are the 80% of people who never open your email adding any Robert Burko, is the President of, Elite Email (@eliteemail) value to your organization? Does sending emails that produce no engagement help your bottom line at all? The truth is that it doesn’t. Email is the most amazing tool in a marketer’s arsenal because when Register now to reserve your seat at an email is sent to the right person, at the www.dmn.ca right time, with the Interactive eStatements: right message, the ROI is huge. When CASL Raising Your Customer Experience Game forces marketers to trim their mailing list to remove non-consenting and non-complaint Learn how eStatements can enhance the customer contacts, it is forcing experience, providing information and analytics in an them to start sending to enhanced self-service environment that also drives only the right people. adoption and reduces call centre and printing costs.

Marketers will SPEAKER: A must-attend if you want to increase customer loyalty, see the number of Peter O’Grady better promote, target and sell your services and help Director, Business Intelligence sent emails decrease Product Marketing, your organization save money. (because only compliant Information Builders contacts remain), but Presented by they will see open rates EVENT DETAILS: and click-through rates Sept 10, 2014 • 8-10am rise. That is a good The National Club, thing. An organization 303 Bay St, Toronto M5H 2R1 is much better served BRING YOUR TEAM. by having a very high SIGN UP AS MANY AS 3 INDIVIDUALS AT NO CHARGE. open rate instead of a very high send volume.

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No need to panic!

Complex or not, CASL is coming and with it there’s the good, the challenging and the simply unknown

By Natasha Nanji

More than 10 years in the making, Canadian businesses face a new anti-spam law that went into effect on July 1. Known as Canada’s Anti-Spam Law (CASL), this legislation represents the most significant change to marketing communications since the introduction of Canada’s privacy law governing the private sector more than a decade ago.

While the law will introduce new, more cumbersome requirements, marketers need not panic.

CASL is complex. It requires prior consent, identification of the sender and unsubscribe functionality on all commercial electronic messages.

Undoubtedly there are major changes and while there are still outstanding questions and new requirements to be adapted to, many of CASL’s fundamentals represent the very best of the best practices that marketers (and members of the Canadian Marketing Association) have been adhering to for years. Perhaps the greatest challenge marketers have faced with this legislation is the short timeline for implementation.

This is particularly true for those whose practices aren’t currently up to CASL standards, those who haven’t used online marketing in the past and small businesses. The law affects all organizations sending commercial electronic messages, so all must review communications practices and database management.

The good, the challenging and the unknown Complex or not, CASL is coming and with it there’s the good, the challenging and the simply unknown.

There were many important changes to the new law when it was being developed that will make implementation run smoother for many marketers.

A hard-fought lobbying campaign by CMA yielded a key win – the grandfathering of previously obtained express consents. If marketers have, and can prove, that they’ve obtained privacy law-compliant express consent prior to CASL coming into force, then they can continue to message those contacts moving forward (meeting the new form requirements). The law itself also provides a three-year transitional period for implied consents resulting from a preCASL existing business or non-business relationship that included electronic communications, without ❱ DMN.ca

regard to when that relationship was established.

Combined, these two grandfathering provisions ensure that marketers aren’t required to re-qualify their entire existing database.

B2B marketers can also breathe a sigh of relief as the law will have limited jurisdiction to regulate this type of communication. The Canadian government has taken significant steps to enlarge the scope of the exemption for this domain. Provided the two businesses in question have a “relationship”, an intentionally undefined and arguably broad term, and messages between the two relate to the affairs of the business, then those communications are exempt. Service providers and those operating in international markets can also make use of a new exemption that allows those knowingly sending messages outside of Canada to follow the antispam rules of the foreign country, provided that jurisdiction has substantially similar legislation (116 countries are listed in the CASL regulations).

New exemptions offer greater flexibility New exemptions offer greater flexibility, but CASL still has its challenges. Marketers trying to drum up new business are likely to be hit the hardest, as the rules for prospecting have been significantly tightened. Since CASL requires prior consent to send a message, there are limited ways in which prospecting can occur. Marketers will be hoping to rely on the conspicuous publication or disclosure of a business address (for example in online directory or by receipt of a business card). Alternatively, many will utilize the referral provision, which allows for the sending of one message without consent in certain circumstances, with no follow-up communication allowed. Others may try to rely on renting or purchasing marketing lists. Using third-party lists is still permitted, but the heightened separate express consent requirements are likely to diminish the number of contacts available and the complex unsubscribe requirements will result in fewer lists being available. None of the methods are ideal and the consequences remain to be seen.

Implementation may be looming, but there remain many unanswered questions. The definition

of express consent is a problematic grey area for marketers. Questions still linger around the level of requirement. The guideline documents issued by the Canadian Radio-television and Telecommunications Commission (CRTC) advise that express consent to receive electronic marketing messages must be obtained separate and apart from the terms and conditions of an agreement, and that pre-checked consent boxes will not be acceptable. CMA had argued that an easy-to-see, easy-to-understand and easy-to-execute prior opt-out opportunity (e.g: a pre-checked box) should be sufficient to constitute express consent on a contract or form that requires consumers to signal their agreement to all terms of the contract. However, while the CRTC has indicated that its guidelines are not definitive or exhaustive, it is clear that the safest course is to ask consumers to check a box to signal their consent to receive commercial electronic messages. That approach is also consistent with the very best of email marketing practices.

The requirements around social media marketing also remain unclear. The government has indicated that broadcast messages over social networks are exempt from the legislation, but direct messages are caught. This has caused confusion, as many believed that this sort of messaging would be covered by the exemption for closed-messaging networks. CMA continues to seek further clarification on this point as social networks, like other closed networks, operate within a consent framework and have built-in unsubscribe functionality. In the meantime, marketers engaged in this form of marketing should try and make use of other exemptions afforded under the law.

The new law went into effect on July 1, however, marketers can expect further clarification from the government on how CASL is meant to apply and how it will be enforced. While the CRTC has stated that it will take a “proportionate” approach to enforcement, the well-prepared organizations are much less likely to end up in the cross-hairs of the regulator.

Natasha Nanji is Manager, Regulatory Affairs for the Canadian Marketing Association.

July 2014

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CASL: it’s not just about email How to tell if the new Canadian Anti-Spam Law applies to your business

By Kevin Huxham

CASL is the new Canadian Anti-Spam Law coming into effect in just a few short weeks. Even if you don’t have offices in Canada, the law affects your business if you have people accessing any commercial electronic messages (CEMs) in Canada. Enforcement of the law will begin July 1, 2014.

This new legislation was created to address important issues: to reduce spam, spyware/malware, phishing and identity theft. Businesses worldwide stand a lot to gain by adhering to the requirements of CASL and will benefit with higher levels of deliverability and engagement when sending CEMs to communicate with their customers.

Here’s how you can tell if CASL applies to your business:

July 2014

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Countdown

to CASL

By Justin Topliff

On July 1, 2014 Canada’s Anti-Spam Legislation (CASL) was enacted. Touted as one of the most aggressive anti-spam laws in the world, this is part of Canada’s attempt to deter the most damaging and deceptive forms of spam like identity theft, phishing, and spyware.

But what if you’re not a spammer? What if you’re not trying to engage in any of the above activities?

What if you’re just running your company website, sending your customers periodic emails, or reaching out to them on social media? CASL regulates these areas and activities of your business, too. In fact, it regulates almost every form of commercial electronic messaging (CEM). And that means if you’re not aware of what is and is not a CEM, and don’t comply, you could face legal action and fines so hefty that they could put you out of business.

Most everyone is familiar with the grandfather of modern spam laws, the United States’ CAN-SPAM Act of 2003. Basically, the law said businesses had to give recipients a way to “opt out” of receiving their email messages. This law birthed the functional unsubscribe option at the bottom of email messages that everyone loves clicking. CASL, on the other hand, mandates that businesses must have express permission via an “opt-in” before they can send a commercial message to anyone.

The buck doesn’t stop there. There are provisions in CASL detailing the ways businesses go about ❱ DMN.ca

obtaining this express consent. There are also parameters around using addressharvesting tools, altering the transmission of a message, using misleading subject lines and text messages; the list goes on and on. The bottom line for marketers in Canada, and those want to reach an audience in Canada? You need to know how to navigate this law better than your drive home from the office.

The legislation will soon go into effect.

On 1 July 2014, the legislation goes live around messaging. On 1 January 2015, the measures around the installation of apps and software go live. Come 1 July 2017, recipients have legal recourse against you (for up to $1 million) and your company (for up to $10 million).

The good news is you have a three-year grace period to become compliant and obtain express consent from your existing list. So what should you do?

Determine the status of your subscribers Did they provide express consent or just implied?

You have express consent if the recipient responded to your CASL-compliant request (check the law) and elected to receive CEMs from you. No re-confirmation is necessary here. If you have been marketing to someone based on an existing business relationship (e.g. they purchased something from you), this is implied consent and requires reconfirmation to be CASL-compliant. To be completely safe, it may not be a bad idea to send a double opt-in email to your entire database.

Determine which of your messages are CEMs CASL only applies to commercial electronic messages (CEMs). Sending an email to a family member? To an employee? Responding to a request? None of these are CEMs. For all intents and purposes, however, assume that any email going out to a customer or prospect is a CEM. There are some gray areas here around referrals, sending quotes, and messages providing information on warranties, etc. CASL outlines parameters for each of these cases.

processes, update them to incorporate obtaining consent. For any new contact added to your database, a double opt-in mechanism is a must. This can be automated through email marketing software, and is as simple as ensuring the email includes a link the recipient clicks to confirm their desire to receive messages. It’s also important to ensure there is a system in place for documenting records of obtained consent. Some email marketing software does this for you.

Obtain legal advice Given the complexity of CASL, and the litany of exceptions that come with it, this article should not be regarded as legal advice. The legal and financial liability that comes with CASL is substantial; therefore, it may be worthwhile to solicit legal help around becoming compliant.

While on the topic of legality, let’s remember that the principle behind this law is to protect the Canadian consumer. The whole basis of the law is your requirement to have permission to send CEMs. So long as you obtained permission and are prepared to prove it, the chances of you getting sued are (hopefully) low.

Though this legislation is detailed and intense, it’s exciting to see Canada being so progressive with spam legislation. In reality, there’s nothing outrageous about this new law. The legislation reflects best practices that have been around for a while. As marketers, it’s important for us to respect those to whom we are broadcasting our messages. So, let’s send out those double opt-in emails!

Justin Topliff is a Product Marketing Specialist at Infusionsoft,

where he translates his knowledge of Infusionsoft products into high-impact product messaging and communications.

Previously, Justin was a Senior Venture Associate at Tallwave, the nation’s first startup ‘commercializor,’ and a Creative Resource Designer and consultant for Jostens, Inc. Outside of the office, he sits on the boards of TiE Arizona and “one n ten,” and likes to give back to the community through pro-bono consulting to small businesses and nonprofits. In his free time, he can be found road-course racing with the National Auto Sport Association or attempting to brew his own beer.

Update your processes Once you’ve audited your current messages and July 2014

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Karalytics is a consulting firm entirely dedicated to providing quality talent and Analytical leadership to the Database Marketing community.

JOB SEEKERS: Upload your resume at www.karalytics.com. We are always seeking to match the best and brightest talent with exciting opportunities!

We supply onsite professionals committed to lending their wealth of database marketing expertise and business skills to assist corporations in delivering on their complex business initiatives.

EMPLOYERS: Visit www.karalytics.com and upload your job postings for FREE. We have the experience and Professionals to help you succeed on your next project.

8 Dohme Ave. Toronto, ON M4B 1Y8 Tel: (416) 755-7761 Fax: (416) 755-8231 Email: info@completemailing.com Toll Free: 888-683-2501 www.completemailing.com - Inkjet Envelopes or Direct Impression

- Mail Merge and Personalized Laser Printing

- Inserting: Automated and Manual

- Address Verication/Correction and Postal Sortation

- Addressed Admail and Publication Mail

- Data Entry and Database Management

- Polybagging, Tubing, Hand Assembling & Kits

- Photocopying, Collating, Stapling, Folding & Printing

Data Mining & Analytics | BI Reporting | Campaign Design & Measurement | Integrated Data Solutions

• Predictive Analytics • Customer Value Management • Data Management • Business Intelligence Reporting

▶ Premedia & Design ▶ Digital, Litho & Flexo Printing ▶ Data Processing & Entry Services ▶ Promotional & Transactional Direct Mail ▶ Fulfillment & Distribution 24/7 Contact Number: 416.201.1420 Experts in Emergency or Fast Turnaround Projects 75 Superior Blvd., Mississauga, ON L5T 2X9 www.datadirect.ca

Tel: 905.564.0150 Fax: 905.564.6621 Toll Free: 1.877.247.1464

For more information please contact: Debbie Major 905.564.0150 x108

Gary Stavro

905.564.0150 x296

// 29

Resource Directory FUNDRAISING

LIST SERVICES

ResourceDirect2011_Layout 1 8/30/11 3:36 PM Page 1

Get more out of your

Marketing Database

Date:

July 4, 2013

AD:

Carter

Client:

Cleanlist.ca

AM:

Sinclair

Docket:

3540

Version:

F6

Application:

Print, 4x4.325", 4C

Media:

Direct Marketing Magazine

PLEASE NOTE This file has been optimized for its intended application only. For uses other than intended please contact Seed for alternate formats.

LIST SERVICES

BETTER DATA

FRom CANADA’S LEADER iN CoNTACT DATA SoLuTioNS

Data Enhancement • Phone Append • Demographics Prospect Databases • ResponseCanada • Consumers, Movers and Businesses Custom Solutions

Ask for a FREE EvALuATioN and pricing!

1-800-454-0223 sales@cleanlist.ca

Call 800-873-6183 or visit www.infogroup.ca

tap into

targetsource

TM

Canada’s largest and most recognized consumer marketing database

1 million emails

Find out how ICOM can be your single-source solution for customer intelligence that can be parlayed into an omnichannel contact strategy.

2 million households

1,000

household characteristics

800.603.4555 | epsilon.com | info@epsilon.com

)

Data Cleaning • Address Correction • Mover Update • Deceased Identification

Explore the many direct marketing solutions we offer: • New Business Leads • Customized Prospecting Lists • Email Marketing Services • Customer Profiling • Data Processing & Data Hygiene

cleanlist.ca an interact direct company

• As a boutique list service provider offering specialized data sets, our content is authoritative & accurate!

• We concentrate our data gathering efforts and have an acumen for these industries: Finance, Environment, Associations, Libraries, Health Care, Media, Lawyers, Education & Government

13-07-04 10:43 AM

• No other list service will work as closely as we do to meet your unique needs.

• Contact Information at 1-866-433-4739 or info@greyhouse.ca

to advertise Contact Brent White, brent@dmn.ca | Mark Henry, mark@dmn.ca Contact: Kim.Young@nadminc.com • Jannet.Lewis@nadminc.com • Jacqueline.Collymore@nadminc.com

// 30

Resource Directory LIST SERVICES

Mailing Services

Email Marketing Service TARGET, ENGAGE & BUILD YOUR CUSTOMER BASE From simple to complex, we’ll handle your email campaign from start to finish – delivering professional quality and results every time. Scott’s Email Marketing Service will help you:

CASL & CAN-SPAM

T LIAN P C OM

TARGET INFLUENTIAL AUDIENCES DESIGN ENGAGING EMAILS

PLASTIC CARDS

SEND CASL COMPLIANT MESSAGES

1-877-517-6864

MEASURE CAMPAIGN RESULTS

Ref: SMSL14

CONVERT LEADS INTO CUSTOMERS

lists@scottsdirectories.com ScottsDirectories.com

SMR 032 The Data Service Specialist 4.625 x 2_Layout 1 12-01-30 7:39 PM Page 1

THE DATA SERVICE SPECIALISTS

· · · · ·

 Advanced analytics Consumer &marketing business survey lists  CHAID prospect data mining Customertree profiling, trade area analysis  Customer profiling; Trade area analyses Geo-demographic & ethnic targeting  Geo-demographic & ethnic Data appending, cleansing & targeting enhancement  Customer updating, merging/purging 35 years of list helping businesses grow SMRinfo@smres.com

905.474.5271

www.smres.com

MAILING EQUIPMENT

High quality offset PLASTIC CARDS, manufactured in Canada . Runs from 250 to 1,000,000 . Magnetic stripes, card encoding . Bar codes, smart cards . Card personalization . Fast turnaround times www.cdnprintplastic.com Tel: (416) 240.7775 1.877.236.7746 Fax: (416) 241.0825 91 Kelfield St. #6, Toronto, ON M9W 5A3 sales@cdnprintplastic.com

Authorized resellers for:

. Zebra Card, Datacard, Fargo,

Evolis card printers

. Photo ID cards and systems

Direct Marketing represents all areas of the DM industry: from small businesses to Canadian Business 1000 companies. No matter what our reader's size, resources or strategies, each and every organization we reach is driven by data, powered by orders and striving for loyal customers.

To advertise in Direct Marketing Resource Directory Contact: Brent White, brent@dmn.ca Mark Henry, mark@dmn.ca

Unaddressed Delivery

adm_dm_4c.pdf 1 5/24/2013 4:35:39 PM

Mail Processing Solutions »

Inserting systems, feeders and folders

»

JETVision® integrity/control systems

Learn more:

»

Duplo finishing solutions

»

Inkjet systems, tabbers and pressure sealers

[Sales] Wayne Quesnelle 1.800.889.6245 x2021 Wayne.Quesnelle@bhemail.com

»

Parts, mailing and mailroom supplies

[Service] Charlotte Johnston 1.800.889.6245 x2012 Charlotte.Johnston@bhemail.com

bellhowell.ca © 2014 Bell and Howell Canada Ltd. All rights reserved.

to advertise in

Direct Marketing Resource Directory Contact Brent White, brent@dmn.ca | Mark Henry, mark@dmn.ca

As a world leader in loyalty, Aimia sees the interactions behind every transaction. Our ability to identify and unlock insight within consumer data helps our clients form real relationships with their customers and makes their business more personal.

WHO WOULD YOU LIKE TO KNOW BETTER? Tell us at aimia.com/connect

Š 2014 Aimia Inc. All Rights Reserved.