Direct Marketing Magazine July 2015

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DRTV Report Retail Models For better or worse, television advertising hasn’t been the same since the first infomercial hit the airwaves 75 years ago.

What’s next for DRTV?

The Chief Marketing Office should be at the wheel of your retail campaigns. That’s just one of the conclusions of Deloitte’s new channel survey.

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Crossing the Analytics Divide ❱ 8 Connect with Canada’s culturally diverse markets

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Vol. 28 | No. 7 | July 2015 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 CONTRIBUTING WRITERS Jennifer Lee Tom Bailey Alan MacDonald Richard Boire Phil Riebel Robert Ian French Paige Goff

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Targeting & Acquisition ❯❯4

SPECIAL REPORT Inside DRTV. Where it’s been, Where it’s at, Where it’s going.

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Who drives omnichannel retail strategies and business models?

Engagement & Analytics

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Making Customer Engagement Social

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Crossing the Analytics Divide,

by Richard Boire The digital space and its resulting analytics have been dominated by software vendors which offer great tools. Yet, tools are an enabler and not a panacea. Learn why.

July 2015

Operations & Logistics

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Special Report

DRTV: Where It’s Been.

Where It’s at.

Where It’s Going.

By Robert Ian French

I

t’s been almost 75 years since the first Direct Response Television commercial hit North American televisions. For better or worse, television advertising has never been the same since then.

Depending on your perspective, the credit (or the blame) goes largely to Alvin Eicoff. It was Eicoff – as relentless and committed a direct marketer as any – who first took the highly profitable techniques learned from of years of direct mail, newspaper ads and radio tests, and applied them to TV. When the first DRTV campaign hit the airwaves, it was marketing mayhem. Nobody had seen anything quite like it. Never disguising its desire to persuade, educate and sell, these spots abandoned all pretense of objectivity and went straight for the sales jugular. It was bold, brash and unapologetic selling.

And consumers loved it. Rather than being turned off by the overt selling, they appreciated being told exactly why they should buy a product, what it would do for them and how it was superior to competitive products.

And so, the most powerful form of TV advertising ever created was up and running and in its churning wake ❱ DMN.ca

arose a multi-billion-dollar industry.

It’s hard to imagine in today’s marketing world – when most brand agencies consider ‘selling’ to be déclassé – but in the early days of advertising, DRTV was embraced, lauded and used religiously by the most powerful and successful people in the business, including: Lester Wunderman, Leo Burnett and of course, the Father of advertising himself, the late, great David Ogilvy.

Throughout the fifties, sixties and seventies, DRTV continued to grow.

When cable TV arrived in the 1980s, and there were dozens of channels looking for advertisers to keep them alive, it was DRTV marketers who filled the airwaves, pumping millions of media dollars into struggling cable channels and building massive businesses that bypassed brick-andmortar stores and sold directly to consumers.

Their success eventually inspired brand advertisers, most of whom were concerned about the impact DRTV would have upon the brand, to search for ways to adapt the medium for their purposes.

These savvy brand marketers combined the science of direct

response with the art of branding and created what is now called ‘Brand DRTV’, currently used by everyone from American Express to Procter and Gamble.

By the 1990s, a who’s who of Fortune 500 companies were on board the DRTV Express, using it to sell insurance, cruises, CDs, housewares, and other products. Those who weren’t

convinced that DRTV was an integral part of mainstream marketing became converts when Cash4Gold aired the NFL Super Bowl’s first-ever direct response commercial in 2009 – arguably the most prestigious (and overpriced) airtime slot in the world.

DRTV was so effective and became so popular that by 1994, in the United States, over 50% of all TV commercials had a 1-800 number; after 10 PM, that number rose to 85%.

That’s pretty popular.

Another revolution was also well underway as the digital era unfolded, relentlessly transforming virtually every aspect of modern society including marketing. Many pundits happily predicted the Internet would kill off TV and that, thankfully, DRTV would die with it.

They were mistaken.

DRTV is not only surviving in the digital world, it is thriving.

I believe there are three reasons for this.

First, as every digital marketer knows, in order to sell someone your product or service online, you need to get them to your site.

Unfortunately, because there are millions and millions of digital channels or sites, it is difficult and expensive to get large volumes of consumers to your site – even with sophisticated search, SEO and re-targeting campaigns in place.

And yet, DRTV can drive huge volumes of qualified, motivated and pre-sold traffic to your website. In fact, 85% of people who respond to a DRTV campaign go online first. And when they hit your site, they are already prequalified and therefore, much more July 2015

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Special Report likely to buy. That’s a highly profitable boatload of traffic.

Second, DRTV viewers, unlike their digital counterparts, are actually receptive to advertising messages.

Imagine that! They watch, listen and respond to DRTV commercials in a way they simply don’t to digital advertising – much as I wish they would.

Third, although TV viewership has lost some ground to digital, virtually everyone in North America is still tethered to their TV sets.

In fact, the most recent studies from Nielsen indicate that North Americans still watch close to 35 hours of traditional television per week.

Think about that for a second – that’s almost a full work week of television watching, every week.

Even 18 to 24 year olds, who watch the least amount of television of all demographics, still consume 7.5 hours of traditional TV per week. Statistics

show that as they get older, partner up and have kids, their TV viewing increases – not the other way around.

Furthermore, despite all the hoopla about cable cutting, only 2.8% of the population doesn’t have either cable or a broadcast signal. That leaves 97.2% of the population still watching television – and many households have multiple televisions.

TV is still the cultural touchstone of the population. Even the growing popularity of new streaming services like Netflix relies largely on programming that was originally created and broadcast on traditional television.

This explains why our agency produces DRTV commercials and/or buys media for so-called online-only companies, such as Match.com, Lumosity, and many others.

75 after its inception, DRTV now comes in many sizes, shapes and lengths; from 15-second lead July 2015

generation teasers to two-hour heartwrenching fundraising infomercials.

All the way from old-school ‘yell and sell’ spots to new school, ‘Cannesworthy’ brand DRTV campaigns.

The history of DRTV: A timeline

What does the future hold for direct response television?

Well, we see DRTV‘s continued integration with digital as the most likely development. As attribution technology improves, the effect DRTV has upon online traffic is becoming easier to track and measure, and DRTV will continue to drive consumers online.

We also foresee a time when more DRTV campaigns will live online, so viewers can simply click on the ad to get more information or make a purchase.

The prevalence of shorter DRTV ads is just as likely, as traditional media rates rise and the two-step sell evolves into three, or even five, steps.

1945 1977 1980 1988 1994 1994 1995 1996 1996 2009 2010

The fact that consumers respond so well to DRTV, that is measurable and that it is becoming fully integrated into digital marketing, ensures that whatever form it takes, DRTV will continue to play a significant role in marketing’s bright, bold future.

Ian co-founded Northern Lights Direct over 25 years ago with his brother Sandy, and built one of the top direct response agencies in North America specializing in DR campaigns that deliver a positive ROI and build brand.

Few people have spent as much time as Ian understanding why people buy and how DR can meet that need. His deep expertise in DR, brand and human purchase behaviour makes him a sought-after speaker and industry expert. Ian has also written and spoken extensively on the subject of brand DR for industry-leading publications and conferences.

He is steadfast in his commitment to personal involvement and clients value his holistic approach to integrated campaigns that incorporate the “Art & Science of the Sell”.

Alvin Eicoff launches first DRTV commercial.

1-800 numbers introduced to DRTV to track response rates by channel.

Cable channels arrive, supported primarily by DRTV advertising.

First Pharmaceutical DRTV spot launched in The U.S. Pharmaceutical advertising remains prohibited in Canada.

CRTC allows infomercials to play in Canada.

52% of all US commercials have a 1-800 number.

The internet reaches critical mass and URLs start appearing on DRTV commercials.

Brand advertisers take up DRTV in droves.

Demand for 1-800 numbers outstrips supply and 1-888 numbers are introduced.

First DRTV commercial to play during the NFL Super Bowl halftime.

DRTV and online integration takes form.

DMN.ca ❰

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Targeting & Acquisition

Who drives omnichannel retail strategies and business models?

While Canadian retailers struggle to adapt to omnichannel, Deloitte believes the CMO should lead the way

By Jennifer Lee

T

he omnichannel can be a bumpy road for retailers to navigate. These days, with every shopper having different path-topurchase preferences depending on the type of product they’re seeking, it’s easy for a retailer to make a wrong turn when trying to adapt to the complex world of omnichannel. To drive profitability, retailers must make very strategic changes, and someone in the organization needs to truly “take the wheel” when it comes to omnichannel decisions.

But in a recent Deloitte and Tulip Retail study titled Retail’s Omnichannel Omnichallenge, we found that retailers aren’t exactly sure who that should be. When asked who is in charge of making omnichannel decisions, 33 per cent of respondents said it was operations, 19 per cent said IT, 14 per cent said marketing, 13 per cent said strategy, and 12 per cent said digital/ ecommerce. So the question many are asking is: who’s driving the strategy?

And maybe more importantly: who should be driving the strategy?

The Chief Marketing Officer (CMO) should be at the wheel. Why? Marketing is the steward of the brand, and brand experience is crucial in driving omnichannel strategy. Brand experience touches every aspect of the shopping transaction – from website design and technology, to the look and feel of the physical store and the ways in which sales staff interact with customers. Loyalty programs, pricing and value propositions, hiring and training – every part of the retail process somehow relates back to brand identity, and the CMO is the captain of brand experience.

That said, marketing’s role is currently undergoing a dramatic transformation. In another recent study, Deloitte looked at the changing role of the CMO and found that 89 per cent of the 300 CMOs we surveyed agreed that marketing has changed radically over the past five years.

Furthermore, 75 per cent said they see ❱ DMN.ca

their role as increasingly influential to business success; 71 per cent recognized data analytics as their most important challenge; and 82 per cent said they think the challenge to transform and acquire new skills is increasing. The skills that have served marketers well over the past 20 years just aren’t as critical as they once were. Today’s marketers must be highly analytical, quantitative, and able to critically evaluate data. This doesn’t mean creativity, media buying skills, or other traditional marketing functions aren’t important anymore. It simply means the CMO and marketers in general must help drive revenue and growth in the organization and re-define the brand experience to deal with traditional and non-traditional competitors.

So let’s say a retail organization has decided the CMO is going to lead the omnichannel charge, the marketing department is on its way to becoming more data-driven, and everyone’s ready to truly revitalize the omnichannel experience. What’s next?

Unfortunately, no one cookie-cutter solution works for everyone. But by using path-to-purchase data analytics, a retailer can better understand and analyze the complex shopping habits of their own customers, figure out where their store’s friction points are, and devise a tailored way of using technology to address them. It’s not about decking out the store with all the latest and greatest tech that money can buy; it’s about using technology strategically to activate the path to purchase. The CMO has a unique opportunity to take on a leadership role in helping the organization navigate the changing Omnichannel world where there are the traditional and non-traditional competitors like start ups, marketplace retailers and technology companies.

Here’s an example of how analyzing your friction points can work: say a customer goes onto a drug store chain’s website and finds a variety of eye shadows she wants to buy. She places them all in her online shopping basket and heads to the closest store

location to buy them – but when she gets there, none of those eye shadows are in stock. It’s a frustrating situation.

How could this friction point be addressed? A chain could implement real-time inventory management linked online directly to individual store locations, or it could implement a way to re-direct shoppers to another store location based on what they’ve expressed interest in online. By finding out what your customers find most frustrating, you can tailor your use of technology, rather than spending money on technological bells and whistles that may not truly help you or your consumer.

Admittedly, many Canadian retailers have faced steep competition from U.S. competitors in recent years.

Because global competition is such a pressing issue, Retail’s Omnichannel Omnichallenge also examined ways in which Canadian retailers are working to keep customers shopping Canadian. Survey respondents said they planned to use strategies such as competitive pricing, more knowledgeable in-store sales staff, a more defined brand experience, a greater investment in “the store of the future,” and leveraging analytics/ customer relationship management.

These are all good strategies. Although it’s not a great idea to get too extreme with competitive pricing – it’s better to define a value proposition and aim to deliver greater value, instead of trying to compete with rock-bottom prices that are unsustainable.

But here’s a thought: rather than trying to keep Canadian customers shopping at home, why not also try taking your company global? The Canadian marketplace is only so big, and the beauty of the omnichannel is that it brings down the barriers, empowering businesses to go global to achieve growth.

Our study also found the traditional bricks-and-mortar store is still very important. Approximately 70 per cent of retailers surveyed in Retail’s Omnichannel Omnichallenge said that more than 50 per cent of their

sales came from physical stores. This is an eye-opener – not only must retailers improve their online experience, but creating a better in-store experience may be equally critical. More than 90 per cent of customers will leave a store if they can’t find the right person to help them. In-store staff need to step up their game, but in order to do so, they need the right tools. Consider, for instance, this example of a very common friction point: a consumer has thoroughly researched a product before heading to the store, only to discover when he gets there that he knows more about the product than the sales associate does. Arming in-store sales staff with the relevant mobile technology could be a great solution to this problem.

As retail organizations make strategic changes to adapt to the omnichannel, strong leadership is going to be vital. Retailers must determine who’s leading the charge, and in many cases, it should be the CMO. But in order to navigate omnichannel’s bumpy road to the future, CMOs will have to surround themselves with those who can help them work through the broad range of inevitable challenges. The CMO needs to broaden its set of advisors beyond the traditional advisor to help navigate this new world. This includes strategic partnerships and advisors who have the breadth of capability to address every aspect of omnichannel retail, from technology and finance, to supply chain and strategy – advisors who can help the CMO navigate this uncertain world, enhance brand value and develop datadriven marketing strategies.

Jennifer Lee is a partner and National Retail Leader at Deloitte. She is particularly focused on new trends, Omnichannel and direct-toconsumer and has delivered many landmark projects for major brands across Canada and globally. Jennifer’s highly specialized insight into digital disruption enables her to lead performance improvement growth strategies that leverage digital, global expansion, Omnichannel and business model transformation.

July 2015

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Cover Story

Crossing the Analytics Divide From direct to digital

By Richard Boire

T

he digital space and its resulting analytics have been dominated by software vendors which have offered great tools that facilitate the analysis of data. Yet as with all analytics exercises, tools are an enabler and not a panacea for developing solutions. Many of the tools, being off the shelf type tools, offer analysis at a point in time but offer no longitudinal perspective of a given customer’s digital campaign behavior over a certain period of time. For example, what is the saturation point in terms ❱ DMN.ca

of emails received before a customer becomes less engaged in terms of conversion towards a sales purchase.

How do web logins overtime to the website impact this overall conversion process? These kind of questions speak to looking at the customer’s digital behavior over time and how digital as well as non digital campaigns have impacted conversion behaviour. Direct marketers would be very familiar with this concept as the discipline has always been mired in the philosophy of measuring customer bahaviour

over periods of time and how it might impact a specific future activity such as customer response or customer retention.

Analysis vs. analytics Much of the Big Data Discussion would lead one to believe that the analytics competency only resides in organizations with expertise in digital and Big Data technology. It does not. But before engaging in this kind of debate, let’s first define what is and is not analytics. There is

analysis and analytics and there is a fundamental difference between the two. Analysis is a much more broadly encompassing word where a given organization or institution looks to derive insights from information. Now one might say “Isn’t this analytics”.

In fact, most practitioners will use this phrase or facsimile in many of their credentials or pitches. So what then is the real difference? The best demonstration of the real difference is to look at what is not analytics. A good example are financial statements July 2015

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Cover Story understand the behaviours that are driving a company’s specific overall profitability. Now what if I want to understand what is driving the bond rating classification of a given company. I can no longer look at the information of one company as I need to understand the trends of many companies that impact the bond rating classification. I now need to look at many individual company records and look at each of their financial ratios to see if there is now an impact or trend between a given financial ratio and the bond rating classification. The actual analytics could be statistical or simply generate reports that demonstrate whether or not there is a trend.

Typically, I might look at hundreds or perhaps thousands of companies or the entire universe of companies that receive a bond rating. Each of these companies would represent one record with financial statement information as input variables and the bond rating classification as the target variable.

This is ANALYTICS as we are now analyzing information across records in order to find trends or patterns.

and the resulting analysis which has occurred since businesses began recording financial information. These statements are analyzed with a view to understanding the key ratios that are impacting profitability. Are certain ratios growing or declining? This type of analysis has been very typical of financial analysis which was taught within the finance and accounting disciplines at most business schools.

But this is not analytics as the analysis is looking at information within the corporation (i.e. micro level) to better July 2015

The measurement discipline Having defined what analytics is, the early pioneers or practitioners of analytics were the credit card companies or direct marketing companies. Both types of companies were attempting to discern customer patterns or trends that explained either credit default or marketing response to a particular offer. In each case, analysis was being conducted on millions of records. Through these early practices and their ongoing evolution, a core discipline of knowledge evolved overtime within analytics. This resulted in “standard approaches” or “modes of thinking” when applying analytics to a particular business problem. For example in social media, campaigns are executed but does the company consider how to best measure and track results?.

The notion of attribution continues to remain a challenge. Yet, rather than agreeing on how we might define attribution, most organizations fall into the trap of merely measuring clicks to a web site or a URL as the measure of success. The bedrock direct marketing principle of “control” groups in evaluating outcomes is simply not considered in most social media campaigns. The response from most social media pundits is that you cannot tag individual records as being test vs. control. Yet, how do

“Analysis is a much more broadly encompassing word...the critical component is capturing the longitudinal behaviour of customers and prospects.” you measure incrementality without some kind of benchmark. Maybe pseudo “test and control” groups could be created by identifying similar geographic areas with one area as the test and the other area as the control where no social media campaign is conducted.

An alternative approach, albeit not as optimal as test vs. control, is the notion of pre and post periods when measuring or evaluating a given behaviour. Instead of looking at incrementality between test and control, incrementality is now based on the change in behavior between the pre and post period. However, challenges arise in determining whether there are other external influences that are impacting incremental behavior such as seasonality, cyclicality of business trends, and even more importantly what else was going on during the pre and post periods. For example, were the levels of marketing activities drastically different between the pre and post period.

Yet, besides the issue of setting up the proper measurement framework which is a core discipline of direct marketing, let’s discuss the issue of longitudinal behavior vs. short-term behaviour. Historically, digital analytics were add-ons as part of the HTML code in designing a Web site. Web designers would create “tags” that captured key metrics for measurement. No question, these tools were very useful in identifying performance in the short-term such as open rates, click through rates, etc.

Some increased functionality was built into these tools that allowed the analyst to look at performance across some basic customer dimensions such as where they live (region) based on the location of the computer or device.

We could also look at new vs. returning visitors based on the address of the device if there was no sign-in or log-in procedure to actually identify the actual customer.

But the “critical” component of analytics, whether it be digital or not, is capturing the longitudinal behavior of customers and prospects. The

concept of longitudinal behavior is a very familiar one within the direct marketing discipline. For example, Richard Boire may have responded to an email or logged onto a web site.

Direct marketers understand that this is the first step in understanding response or conversion, but they would also want to know my campaign history and digital history in terms of what I have received and what I have responded to as well as my engagement history with the given company’s website. Many variables can created from this information at certain time intervals. These time interval variables can then be used to create change-related variables. For example, how has my log-in behavior to a given web site changed in the last 6 months versus the previous 6 months and how has it impacted my likelihood to convert to a sale? How long must I be rested between email campaigns before it is more likely that I will convert to a sale? Direct marketers understand this and recognize that changing consumer behavior through a longitudinal lens rather than at a given point in time provides richer information in any type of data-driven solution.

The good news is that the digital world is now more fully embracing this ability to capture “longitudinal” behavior. The digital experience of the consumer continues to evolve and marketers need to adapt their marketing initiatives accordingly.

Equally important, marketers need to understand how to analyze these initiatives by complementing their analytics skills from direct marketing along with understanding the customer digital journey. Looking at it from that perspective, direct marketing has crossed the digital divide.

Richard Boire, B.Sc. (McGill), MBA (Concordia), is the founding partner at the Boire Filler Group, a nationally recognized expert in the database and data analytical industry. He is among a very few, select top five experts in this field in Canada, with expertise and knowledge that is difficult, if not impossible to replicate in Canada.

DMN.ca ❰

Engagement & Analytics

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Loyalty from Social Dialogue By: Alan MacDonald

W

hat role does social media play in measuring (or influencing) your customer’s lifetime value? To what extent do you, as a brand, have a social presence, because it’s an expected platform for your audience to engage? How have you staffed your communications or marketing teams to engage with relevance and benefit to your audience?

As we push for marketing automation and programmatic communications, social platforms will always require a contingent of staff to facilitate ongoing engagements, mostly because of the nature of the dialogue. Simply put, this is necessary because social media is run by humans and as such, needs to be viewed as the emotional side of your marketing mix. This human element provides explanation as to why a five second video of a sneezing baby panda exponentially out-views a big budget video. Social is less mathematical and more emotional and requires the approach of a one to one conversation.

More often than not, social media has become a channel in which your audience will share specific challenges they may be experiencing and it is your responsibility to drive a timely resolution. The medium allows a single customer the opportunity to magnify the impact of their experience in a good way or bad way. The impact of this shift is that it dials up the focus on brands and leads to greater accountability to deliver a positive experience, and to respond quickly to the bad ones. While the majority of social commentary is negative, there are also positive experiences shared and these create opportunity in a brand’s favour because a fantastic customer experience can be amplified in the same way – and, in addition, the personal account of an experience also helps to humanize the brand.

While social is highly qualitative in nature, quantifying the value of the customer relationship (CLTV) and ❱ DMN.ca

July 2015

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Engagement & Analytics demonstrating channel ROI is still a requisite and not always the easiest of measures for many marketers. Today, many campaigns and initiatives are implemented in the absence of important data and customer insights that could help inform the initiative and also help calculate an accurate return.

This is especially true with social media. Today’s CMO is considering a variety of more targeted and fragmented threads to reach their audience, each with a very specific role in the mix of media and messaging.

Social dialogue being one, where the idea of low barriers to entry and inexpensive interactions lull many businesses into thinking there is little investment of time and money required. While this is untrue, it is also important to remember that social media may be one of your most effective mechanisms for increasing customer loyalty both early on and throughout the customer lifecycle and journey. In this social-savvy age, consumers more and more dictate the terms of brand connection and are reachable in increasingly granular groups thanks to data partnerships and mash-ups.

Integrating a robust social media strategy into existing marketing

initiatives is not as daunting a task as it first may seem. Here are some strategies to help you begin to build a social marketing program that can help increase customer loyalty and ultimately influence your customer lifetime value: 1. Get in the game, start disseminating content and conversing: One of the best ways to increase customer loyalty is to become a valued source of content.

If people trust and rely on your brand to provide them with highly relevant and useful information and insightful commentary, your relationship with them has the capacity to deepen over time. Think of this strategy as your entry point, but that doesn’t mean it’s a channel for spam.

2. Be responsive: Social provides a really good opportunity to humanize the brand as well as the aspirational experience the brand is trying to deliver and/ or influence. Social media has opened up an entirely different means for customers to share their dissatisfaction. Respond in a timely fashion, and more importantly, in a conversational way. This will in turn drive increased customer loyalty; after all, the entire customer base

“Today’s CMO is considering a variety of more targeted and fragmented threads to reach their audience, each with a very specific role in the mix.”

is exposed to this very public conversation, including your allimportant influencers.

3. Narrow the funnel and focus on your most valuable customers: Another social media strategy for increasing customer loyalty is making sure that you’re focusing energy and resources on retaining your best customers. Determine, through data insights, which of your customers yield the highest CLTV for your business – then focus your social media efforts on the places and networks in which they spend their time. Similarly, when thinking about acquisition, consider strategic data mash-ups with partners where resulting look-alikes and custom audiences can generate prolific results.

4. Next generation dialogue with social direct marketing: Traditional trust and influence from one customer to another (peer to peer) is important in earning brand loyalty, but new opportunities and technologies exist for brands to win over the hearts of those not yet in the realm of the brand. Social DM represents an opportunity to connect directly in a one to one way with unique customers or segments of customers who look alike (with similar attributes such as age, gender, interests and spending habits). The benefits of social DM are most effective for a customer acquisition campaign, but they can also provide a tool for engaging with a select look-alike segment with custom content, exclusive offers and direct customer service - all of which area critical drivers of a positive net promoter score.

5. Consider social marketing a longterm play: A big challenge for most

brands, when it comes to social influencers and social marketing, is moving from an “advertising” mindset to a “relationship” mindset.

Nurturing relationships requires persistence and patience and won’t necessarily work with traditional advertising timelines. Social channels should be supported in an “always on” framework to meet the demands of your most demanding influencers.

Social media should be viewed as an integral thread woven into the fabric of customer loyalty strategies and initiatives. Combining social marketing with your loyalty programs and customer data analytics will help to ensure that every dialogue opportunity is perceived by customers and social media influencers as valuable and relevant to the relationship. Leveraging social media as a tool to build those relationships that increase trust and facilitate the flow of information is key.

By understanding that consumers and social influencers interact with social media based on the drivers of trust and control, businesses can place social media in its proper role: as a tool that helps build long-term customer relationships based on deep consumer insight.

Alan MacDonald is the General Manager,

Digital at Aimia Canada. Aimia is a data-driven marketing and loyalty analytics company, focused on providing clients with the customer insights they need to make smarter business decisions and build relevant, rewarding and long-term one-to-one relationships, evolving the value exchange to the mutual benefit of both our clients and consumers. For more information about Aimia, visit www.aimia.com

The customer experience: the journey from good to great During this interactive discussion on business outcomes derived from improving the customer experience, we’ll show you why the key to overall success is providing choices that match customers’ expectations.

Direct Marketing invites you to a Free Breakfast Briefing Visit our website for date details

www.dmn.ca July 2015

Presented by

FREE to register www.dmn.ca

You must be registered in advance to attend.

DMN.ca ❰

// 12

Operations & Logistics

Making Customer Engagement “Social”

By Tom Bailey

V

irtually everything about the world in which we live is now “social,” including the way social media brings businesses and consumers together.

One story of the social dynamic for businesses and their customers comes from marketing strategist, author and blogger Jeff Bullas (http://www. jeffbullas.com).

Among marketers around the world, Bullas says, 70% used Facebook in 2014 to gain new customers.

In Canada in particular, the list includes companies like Capital One, Electronic Arts, Royal Bank of Canada (RBC), Procter & Gamble, Microsoft, American Express and Netflix – big names, all.

But more than brand-name companies, these are smart businesses. They understand just what a goldmine the social universe can be when mining for new customers and nurturing the loyalty of existing ones.

By the numbers, again according Bullas, Facebook had 1.15 billion users globally at the start of 2014, and nearly 1.4 billion by the end of the year. That count included well over 20 million Facebook users in Canada – or more than half of the Canadian population. On average over a 12-month period that spanned the last part of 2013 and most of 2014, Facebook users worldwide accessed 1 million business-oriented web pages daily using the Login with Facebook feature.

In business terms, that’s a lot of “consumer traffic.”

And users weren’t just the 18-29 year olds with their 89% usage rate.

They were the 30-49 bracket (72%), the 50-60 bracket (60%), and the 65-plus bracket (43%) who’ve taken to social ❱ DMN.ca

media on a routine basis. Moreover among these user groups combined, 71% accessed social networks using a mobile device.

All told? It’s the kind of all-inclusive, wide-ranging demographic modern businesses crave.

But that’s only Facebook. Add Twitter, Instagram, Pinterest, LinkedIn and however many other social sites exist right now, and the business-consumer numbers multiply significantly.

Social as a channel in the contact center Given its widespread popularity, it isn’t surprising that social media is as much of a business tool as it is a mechanism for users and their friends to connect. On the business side, contact center technology is doing its part. Multichannel platforms have made social media another channel alongside voice, email, chat, SMS and so on, enabling centers to route and queue social interactions appropriately.

Although some contact centers are still trying to figure out how and where social media fits into their operations, many others have put the channel to work quite nicely.

These centers have implemented apps to monitor activity on social networks and issue alerts when social chatter involves their companies.

They’ve developed quality processes and incorporated CRM into their social strategy. They’ve trained teams of social media specialists to respond to alerts and social chatter, and created social networking communities for their customers and other consumers.

For the businesses that understand the value of a social channel in their contact center, they’re realizing the marketing, branding, PR and customer experience opportunities that come

along with it.

However, in envisioning what the next phase of the social customer experience will look like, it will add a more personal dimension for all interaction channels – by making agents themselves “social.”

More than just an agent’s name While most centers naturally make their agents available to customers, they don’t let a customer really get to know the agent they’re interacting with. Beyond the agent announcing their name, or on rare occasions showing their face in a video chat, customers have no idea whether the person is genuinely qualified to solve their issue.

As a customer with a service request or a problem to be resolved, did you really get routed to the most qualified agent, or just the first one available? Does the agent have the right knowledge? Are they certified in the right discipline? Do they have the right answers and a sufficient level of experience? Sometimes, it’s a gamble.

What the future social experience will provide is a way for customers to literally shop for an agent — as well as the skills and experience that agent has to offer.

Social customer service, a two-way street The starting point of social customer service will be the contact center exposing selected information about its agents, allowing customers to choose the agent they feel is most qualified to help them.

To present each agent in the best light, profiles will include an agent’s name, skills, certifications, the languages they speak, their service background, product knowledge, and other personal and professional information. Profiles will also include

the agent’s photo, or optionally, a stock photo of some kind. Along with choosing their agent, customers will also be able to choose the interaction channel they prefer.

From their mobile devices or using a web page, customers will be able to interact via phone call, a call-back option, or by email, web chat, or even video. In the contact center, the social customer interaction request will be queued and routed using the same multichannel platform that handles all other types of interactions.

The differentiator of social customer service will be a unique way to provide VIP or concierge-level service to your best customers. With the process no longer depending on an automatic contact distributor (ACD) to make the concierge decision for them, customers themselves will rate agents and choose the person they’re most comfortable with.

The customer’s experience will go something like this…

1. Access a business’s service agent directory, perhaps using a tablet device.

2. Select a list of qualified agents by skill, availability, estimated wait time or similar criteria, view each agent’s personality profile, and then determine the best match.

3. Choose the right agent, a preferred communication channel, such as a web chat, and let a more personal “social” customer experience begin.

Is social customer service really possible? Of course it is. In fact, several forward-thinking companies have already implemented this social model, and like what they see.

So do their customers.

Tom Bailey is a Senior Writer with Interactive Intelligence.

July 2015

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// 14

Know Where Your Paper Comes From: Why Direct Mail Can Be “Green”

By Paige Goff

T

oday, thousands of Canadian businesses depend on direct mail to reach their customers and prospects. Even in the Digital Age, as businesses expand and diversify the ways in which they communicate with their customers, direct mail continues to be a unique, effective—and often, preferred—way to reach customers. Direct mail provides customers with a personal and tangible way to understand your business and the value it provides. Numerous studies over the last several years have underscored consumers’ own preference for direct mail—even in the 18- to- 34 year old demographic. That’s because paper works. ❱ DMN.ca

While direct mail is still a popular communications channel, it’s also an environmentally responsible choice. When responsibly manufactured and sourced, paper is a very “green” choice for marketers. That is why it is important to know where your paper comes from, and when you select North American paper products, including direct mail, you can trust that you’re making the best environmental choice.

Sustainable Paper: The Smart Business Choice Sustainability has become an essential criterion for doing business – and this is particularly true for the paper industry. Paper stems from a renewable

resource, and when sourced responsibly from independently certified forests it gives organizations a way to demonstrate their support for local economies, wildlife and the long-term health of these valuable ecosystems. Additionally, after its intended use, paper remains one of the most recycled products on the planet.

The concept of managed forests means that for every tree harvested, several more are planted or naturally regenerated in their place. According to the Forest Products Association of Canada, natural regeneration is supplemented by the planting of 600 million seedlings per year. Increasing demand for July 2015

Green dm supplement consumption and waste reduction. At Domtar, we believe the best way to ensure responsible forest management is through third party certification — and our commitment is unmatched in North America. Domtar was the first North American company to offer Forest Stewardship Council® (FSC®) certified copy paper, which remains the gold standard of forest certification. To date, we have sold over five million tons of FSC certified paper.

Our early adoption of third-party certification, sustainability principles, and our commitment to transparency has had a transformative effect across our industry. We are excited to see other forest product companies today embracing the benefits of using wood that is certified in accordance with independent, third party standards, and realizing the benefits of engaging environmental organizations that Domtar has partnered with for decades, such as the Rainforest Alliance and World Wildlife Fund (WWF). It makes our industry and communities stronger, our products more sustainable, and our customers can have peace of mind knowing that they’re making the responsible choice.

Why Paper Made Here Launched earlier this year, Domtar’s Paper Made Here encourages companies and the public to ask: “Where does my paper come from?” Paper Made Here demonstrates why buying North American paper is the responsible environmental choice—and the best business decision, and the program spotlights the many positive environmental impacts of the North American paper industry.

As a business, to ensure the integrity of your company’s reputation and the reliability of your supply chain, it’s important to buy from paper companies that have a strong track record of environmental performance and a proven history of transparent business practices, suppliers, and operations. We encourage our customers to ask paper manufacturers these important questions before doing business with them: ❯❯ Where do you source your paper? ❯❯ How do you measure your environmental impact? ❯❯ How are your operations regulated and by whom? ❯❯ Do you fully and publicly disclose your environmental performance?

forest products has provided powerful incentive for private landowners to reforest their harvest.

To effectively reduce our environmental footprint, Domtar adopted measures to improve our performance years before sustainability became in vogue. Our company is proud of our progressive approach to sustainable forest management, and environmental stewardship. Sustainability initiatives at Domtar run the gamut from major capital investments to employee involvement.

At Domtar, sustainability is at the heart of what we do, who we are—and it’s the core of our business.

We’re committed to a sustainable product life cycle, from fiber use and forest management, to energy July 2015

If your paper products are made in North America, you can feel confident in your purchase decision because these products must meet strict environmental regulations. There are dramatic differences between the way North American paper manufacturers and certain importers operate, and the kinds of standards they must meet in their countries. North American manufacturers put in place high regulatory standards to protect public health, workers’ rights and the environment. North American companies ensure transparent operations and business practices, work with trustworthy suppliers and demonstrate a responsible use of resources.

// 15 Environmental Initiatives in Local Communities When you select direct mail that is responsiblysourced in North America, you’re also investing in keeping local communities clean and green.

At Domtar, one of our most successful local environmental initiatives is Plant Clean Air, an educational program that a number of forestry engineers at our Windsor, Quebec mill dedicate their weekends to. These engineers get outside and teach local high-schoolers about nature and forestryrelated professions. Domtar has been involved with this program since 2009, and the results are significant: so far over 50,000 trees have been planted by the youth group under the supervision of Domtar’s foresters. Thanks to these children planting 20,000 trees in 2012 alone, 4,000 metric tons of carbon dioxide (CO2) were neutralized, which is equivalent to the amount of emissions produced by 1,000 cars that year.

Last month, tree planters working in the Wabigoon Forest made a huge contribution towards a Guinness World Record for the most trees planted in 1 hour.

The team of 25 tree planters safely planted just over 10,000 trees in 60 minutes! The attempt involved teams from across North America and was coordinated by the Sustainable Forestry Initiative® (SFI®). Results of all participating groups will be combined and Guinness will verify the total in the coming weeks.

Since 2012, Domtar’s Corporate Community Investment Committee has donated over four million dollars (USD) to support the communities in which Domtar operates by helping clean up local rivers, create and rebuild local parks for green space use, and implement educational programs that help children understand the importance of sustainable forestry.

To learn more about Domtar’s positive green impacts in North American communities, please visit our digital transparency tool, The Paper Trail, http:// domtarpapertrail.com. Or for a more personal story on the importance of knowing where your paper comes from, please view our short documentary, A Portrait on Paper.

Paige Goff, VP of Sustainability and Business Communications Domtar Domtar Corporation designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world-class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®.

Domtar is also a leading marketer and producer of a broad line of incontinence care products marketed primarily under the Attends® brand name as well as baby diapers. In 2013, Domtar had sales of US$5.5 billion from some 50 countries. The Company employs approximately 10,000 people. To learn more, visit www.domtar.com.

DMN.ca ❰

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July 2015

DMN.ca ❰

// 18

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Two Sides Continues to Bust Myths and Grow its Network of Print and Paper Advocacy The non-profit has now convinced over 33 major corporations to remove misleading “go green – go paperless” claims

By Phil Riebel

T

wo Sides has carved out a presence in North America as a familiar advocate for the sustainability of print on paper. Since its beginning in the UK in 2008 it has grown to be present in five continents and several countries, with recent start-ups in South Africa, Brazil and Colombia.

In North America, Two Sides now enjoys the support from over 145 companies in the print and paper industries including major players such as Boise Paper, Canon, Domtar, EMA, Glatfelter, International Paper, Kodak, Konica Minolta, Lindenmyer / Central National Gottesman, Midland Paper, NPTA, Verso, Ricoh, Sappi, UPM and many more. Any company involved in graphic communications can join Two Sides as a member to support the initiative.

Two Sides’ mission is to remind people that, when responsibly produced and used, print and paper can be a sustainable way to communicate. The organization offers many resources to support print and paper through proven facts, research and data.

The website (www.twosidesna.org) includes a section called “Our Most Popular Materials” with a Myths and Facts brochure, 2-page fact sheets on several hot topics, the latest infographics (see attached figure), and two videos. Visitors can sign up for the e-newsletter and connect with Two Sides on social media to be part of the network.

One of the key initiatives of Two Sides is an “antigreenwash” campaign which challenges corporations ❱ DMN.ca

when they make misleading environmental claims about print and paper to promote electronic services such as e-billing, i.e. “go green - go paperless, save trees”. Two Sides is working with 60 companies, mostly in the banking, utilities and telecom sectors, and encouraging them to use best marketing practices based on factual, verifiable and sciencebased evidence rather than green marketing slogans based on cost savings.

To date, over 33 leading companies have removed their “go green” claims including several Fortune 500

companies such as AT&T, Capital One, Wells Fargo, HSBC and Sprint. The efforts were recognized by The Guardian in an article titled “Is Digital Really Greener than Paper?” published on February 24, 2014.

Phil Riebel is the president of Two Sides North America, Inc. and has over 27 years of experience in the field of environmental sustainability related to the forest products industry. He also owns and manages 200 acres of private woodlands. He can be reached at pnr@twosidesna.org.

One of the benefits of our relationship with Two Sides has been the opportunity to reflect on how we communicate our efforts.

This caused us to review Sprint’s messaging about electronic media across multiple touch points. Having an organization like Two Sides representing members of the industry is positive for the on-going dialogue and engagement needed to further sustainability and improve the perception of industry’s environmental position.

Alan Anglyn, Director (IT Care & Billing Services Business Management at Sprint)

July 2015

// 19

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Go green with your mail Make your next direct mail campaign more environmentally friendly with our helpful tips and tools.

T

aking green initiatives has become a respected—and expected—business practice. Not only does it cut unnecessary costs, it improves productivity through more efficient management of resources as well. From list maintenance and effective targeting, to the production and design of your Direct Mail, there are several best practices that your company can implement to reduce its impact on the environment and improve its Return-On-Investment (ROI).

Target consumers more accurately ❯❯ Use targeting software for Unaddressed Admail™ to help ensure that the most relevant message reaches the right person. Canada Post’s Data & Targeting Solutions service, for example, allows you to select and target your prospects based on neighbourhood demographic data and choose the most appropriate delivery routes. Learn more about Data & Targeting Solutions. ❯❯ Make sure you are optimizing your in-house or purchased list: Apply merge-purge rules to reduce duplicates, as well as the Canadian Marketing Association’s “Do Not Contact” service. Learn more about the “Do Not Contact” list. ❯❯ Predictive models can be a valuable investment because they can help you target more effectively and improve your response rates, while reducing unnecessary mailings.

Guidelines to keep your mailing list up to date Regularly updating your database can benefit both the environment and your company’s bottom line.

A more accurate list can mean less returned or undeliverable mail, less wasted paper and higher response rates.

Here are some ways that can help keep your lists clean: ❯❯ Make data hygiene a priority. This involves monitoring your internal database regularly for incorrect or missing fields, encouraging your customers to update their contact information and creating an in-house “do not contact” file. ❯❯ Consider incorporating a mailing returns management solution by implementing back end resources to process the information. ❯❯ Maintain an in-house “do not market” list, which lets customers opt out of receiving specific types of marketing material. ❯❯ Verify and update your customer information at every contact point (online, e-statements, customer service representatives, sales representatives, etc). Make it easy for customers to update their address. ❯❯ Keep your mailing list accurate by subscribing to Canada Post’s National Change of Address (NCOA) July 2015

❯❯

❯❯

❯❯

❯❯

service and using it frequently. It’s Canada Post’s address database for Canadians who have moved. The NCOA software incorporates information about movers who have consented to be part of it and automatically removes deceased recipients from your list. Learn more about the NCOA Service.

Use Return Postage Guarantee with customers who you haven’t heard from in a while, which can help you can update your database.

Before renting an external list for prospecting, make sure you ask the list broker how recently it was updated.

Use the Canadian Marketing Association “Do Not Contact” service prior to acquisition mailings in order to remove consumers who have requested not to receive Direct Mail. You will save time and costs associated with trying to communicate with them.

Use the Address Accuracy Program to validate the accuracy of your mailing list each time you execute a campaign. Also, to improve deliverability, use Address Validation and Correction Software to help repair your lists and put them into standard formats. Accurate addressing eliminates extra handling and redelivery costs, and improves the efficiency of your service.

Use smart mail design and production Creating environmentally friendly mail is not just about the materials you use, it’s also about how you use them. Making simple changes to the mail you send out can not only benefit the environment, but can also be more cost effective.

Here are a couple of things to consider: ❯❯ Examine what you’re currently using as printed marketing materials. Then, where appropriate, test downsized pieces against them. ❯❯ Test and use production methods that reduce print order overruns, waste allowance and in-process waste. ❯❯ Consider in-line production to increase efficiencies. ❯❯ Use pieces designed for maximum paper coverage.

Make socially responsible paper choices Paper is an important part of direct marketing.

Making environmentally conscious paper choices can also contribute greatly toward reducing your overall environmental footprint.

Here are several paper-related things you can do: ❯❯ Encourage your paper suppliers to increase wood purchases from recognized forest certification programs. ❯❯ Before buying paper, find out from your suppliers where it comes from. That way, you can decide not

❯❯

❯❯

❯❯

to source paper from unsustainable or illegally managed forests.

Choose only paper suppliers that commit to implementing sustainable forestry practices that protect forest ecosystems and biodiversity.

Require that your paper suppliers document that they do not produce, purchase or sell paper obtained from illegally harvested or stolen wood.

Evaluate the paper you use for marketing pieces, product packaging and internal consumption.

That can help you to identify options that are more environmentally friendly.

The Forest Stewardship Council (FSC) is a nonprofit organization that supports environmentally appropriate, socially beneficial, and economically viable management of the world’s forests.

Choose inks that don’t leave a mark on the environment Vegetable-based ink is commonly used as a substitute for petroleum-based ink. It’s seen to have many positive environmental and practical features, including: ❯❯ Lower solvent emissions than petroleum oil. ❯❯ Less toxic waste. ❯❯ Vegetable oil is a renewable resource. ❯❯ Biodegradable and more readily de-inkable. ❯❯ Can enhance printing characteristics. ❯❯ Good press stability and colour control. ❯❯ Can be supplied in recyclable cardboard containers.

Plus, here are some additional things your business can do ❯❯ Purchase office paper, packing and packaging materials made from recycled materials with postconsumer content. ❯❯ Take advantage of your company’s electronic communication channels, including email, Web and intranet. ❯❯ Ensure that all environmental labelling is clear, honest and complete. That way, your organization’s environmental initiatives are transparent to consumers and business customers. ~ Canada Post Corporation DMN.ca ❰

// 20

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// 21

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// 22

Resource Directory LIST SERVICES

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