Direct Marketing Magazine November 2013

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Harness the spirit of giving

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Once upon It pays to get a time personal How to wow

A case study of the Hospice at May Court’s annual appeal

readers using Using online storytelling marketing to boost holiday donations

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Vol. 26 • No. 6 November 2013

The Authority on Data-Driven Engagement & Operations

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t:7.5” Guys & Dolls production shot. Guys & Dolls was one of The Shaw’s featured productions in its 2013 season.

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// 3 DATA ANALYTICS Vol. 26 | No. 6 | November 2013 EDITOR Amy Bostock - amy@dmn.ca PRESIDENT Steve Lloyd - steve@dmn.ca

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Are you ready?

Part two in a series on the rise of data management as a core marketing function

Harness the spirit of giving Using online marketing to boost holiday donations

DESIGN / PRODUCTION Brian Rushton-Phillips - brian@dmn.ca Advertising Sales Chantal Goudreau-chantal@dmn.ca Mark Henry - mark@dmn.ca Brent White - brent@dmn.ca CONTRIBUTING WRITERS Jan Kestle Paula Attfield Geoff Linton Laura Artibello Olivia Nixon Peter Baker Paul Tyndall John Bardawill Alexis Zamkow Robert Burko Steve Falk

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How to wow readers using storytelling

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Once upon a time

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The evolution of email

Show-stopping DM campaign exceeds expectations The Shaw Festival earning rave reviews for cutting-edge direct marketing

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It pays to get personal A case study of the Hospice at May Court's annual appeal

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November 2013

Grumblings & Rants from a Data Guy: Part 3 DMN.ca ❰

Directives Canadian charities facing critical fundraising and marketing issues

By Paula Attfield

‘Accelerating change’, the theme of the AFP 2013 Congress in Toronto, is more than a pithy catch phrase. It’s a call to action. A plea for Canadian fundraisers to quickly make the changes necessary to adapt to a rapidly changing and challenging donor landscape.

As chair of the AFP Congress and executive vice-president of one of Canada’s oldest and most respected non-profit marketing agencies, I have the enviable advantage of being able to share ideas and concerns with a wide diversity of committed professionals in the charity and non-profit sector.

This includes the leaders of some of the foremost charitable fundraising organizations in Canada and around the world, senior members of other top international fundraising and marketing agencies, fellow executives within my own agency and perhaps most notably - scores of young, talented and driven non-profit marketers who genuinely want to make the world a better place.

What’s most interesting in talking to fundraising professionals who have been around for more than just a few years is that there’s a certain sense of unease and apprehension about what the future might hold. With an increasingly fragmented media universe, an aging donor base, and a new generation of potential donors who pay virtually no attention to traditional fundraising appeals, it’s getting harder and harder to do our jobs to raise the money to allow our organizations to achieve their missions.

Having just returned from the annual International Fundraising Congress in The Netherlands I know these are not uniquely Canadian issues. In fact, the widespread expression of concern over these challenges is, at once, troubling and comforting. Troubling because the challenges we’re facing are so universal, but also comforting because many smart minds are focused on finding solutions.

So, what should we do? Should we abandon traditional fundraising marketing tactics like direct mail because young people don’t respond to it?

Should we go entirely digital and turn our back on our traditional donor bases?

No and no.

What I heard from my international colleagues in Holland helped to reinforce many of the ideas put forward by my peers at the AFP here in Canada and, indeed, within my own agency.

What we should be doing is looking for the common threads that can tie people of all ages to important causes at an emotional level. For the ❱ DMN.ca

Editor's Letter charity looking to expand its donor and supporter base, that means searching for and defining the essence of what their cause is all about. Once it’s found, the trick is to make every effort possible to develop an integrated approach to marketing and communications, including brand development, mass and direct media, and digital.

Of course, this isn’t necessarily as easy as it sounds.

At one level, charities and non-profit organizations face a critical need to be open to new ideas about how to communicate with rapidly changing and evolving audiences. However, in order for this to happen, charities - and the boards that oversee them - have to learn to embrace risk in order to improve their performance in fundraising. Trying new things always involves risk.

This is counter-intuitive to many charities and their boards, which tend to have an undue fixation on containing the costs of fundraising.

Unfortunately this pecuniary constraint and general aversion to risk is holding many charities back from adequately responding to the growing needs of their beneficiaries. After all, delivering the mission depends on successfully raising the funds to do so.

To overcome this obstacle, it’s obvious that a key step many charities must make is to break down the traditional silos that isolate marketing and fundraising budgets from each other and ask themselves how they could be doing a better, smarter job of increasing the joint impact of their efforts over time.

To survive, and ultimately to thrive, a charity must have its marketing and fundraising teams marching in unison, from developing and refining the organization’s brand to building signature events to implementing direct fundraising appeals to individuals and businesses.

Fortunately, there is hope for change. As might be expected, much of this change will be driven by the newer generation of non-profit marketers I referenced earlier. These are young, smart and savvy communicators who have an innate understanding of how to connect with audiences using the social technology tools of today, but who also have an appreciation for the strategic value of brands, message segmentation and targeting – the traditional keystones of effective marketing.

Of course, their best chance of success is to work together with seasoned fundraisers and non-profit marketers, as well as the wave of consumer brand marketers who continue to step into the non-profit world bringing with them their integrated marketing expertise.

Some very practical areas of focus would include: Applying social science research, such as that done by behavioural economists, to better understand and capitalize on donor behaviour. This new science of behavioural economics offers tantalizing clues as to how we can best frame our fundraising appeals to maximize response.

// 4 Thinking outside the cookie box

My mum is a strong supporter of her local food bank. She volunteers at the depot, drives around picking up donations from local businesses and helps out at all of their fundraising events. She is a firm believer that no family should ever be hungry and that those of us who are in a position to help have a moral obligation to do so. As the holiday season approaches she has turned her attention to the food bank’s annual toy drive and has used her top notch baking skills to gather more than 50 gifts to date. Her plan? For every new, unwrapped gift donated she, in return, gives the donor back a box of homemade Scottish shortbread (my Gran’s recipe) gift wrapped and ready for giving (or eating).

So what’s my point? The point is that fundraising in any form requires innovation. In tough economic times, not-for-profits of all sizes have to rethink the way they are speaking to their donors and start thinking outside the box for their campaigns.

My mum’s Shortbread for Sharing idea worked because she knew her audience – knew that the people she approached had a strong desire to help.

She also knew that by offering them something in return they would talk about the campaign to their friends.

In this special Fundraising issue of Direct Marketing we’re shining the spotlight on Canada’s not-for-profit sector and taking a look at what they are doing differently. Whether the discussion is about channel use, data analytics or how to tell a compelling story, our contributors this month have some great insights to share.

Robert Burko of Elite Email starts things off by walking us through how using online marketing can harness the power of giving and boost holiday donations. Steve Falk of Prime Data offers tips on how to write a great story that will engage donors and allow them to find some common ground with your cause. More than ever before personalization plays a key role in successful fundraising and Olivia Nixon of Trico Evolution will show us how it worked for the Hospice at May Court’s annual appeal.

I hope this issue inspires you and gets you in the giving mood. The holidays are almost here and there are a lot of people out there who will need help to make the season a happy one. What does your company do to give back to the community?

Drop me a line at amy@dmn.ca to be included in a special holiday feature in our December issue.

Cheers, Amy

continued on page 22 November 2013

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Fundraising

Harness the spirit of giving Use online marketing to boost holiday donations

By Robert Burko

T

he holidays are a pivotal time for fundraisers and notfor-profits to attract potential donors and re-engage existing ones.

Fundraising is all about driving awareness to the cause. Years ago a nonprofit would have been limited to a telemarketing and direct mail campaign, both of which can be costly, time consuming and at times even annoying, e.g. why are you calling during dinner? The results can be disappointing. Today, new media channels exist to harness the spirit of giving, communicate fundraising goals, and ultimately drive donations -- using easy, cost-effective tools.

These tools, such as email, mobile and social media marketing, can significantly help in communicating the right message, to the right person, at the right time. These channels

❱ DMN.ca

make it easier, and faster, to deploy customized messages. They are also highly measurable, so future campaigns can be tailored to achieve even greater results.

Nonprofits can engage with contacts using the communication method they prefer, on a schedule that suits them best. How does this benefit their contact list? For starters, people can choose to read the messages at their own convenience. They can click a link directly to a website, making the donation process easier, more accessible and less time-consuming. By reducing the number of steps, organizations make the process more efficient.

They can eliminate steps including: opening an envelope, reading through materials, turning on a computer, conducting an online search, making a phone call, writing a cheque, etc.

When a nonprofit comes to me looking for strategic help with their online marketing campaigns, I always tell them they need to consider three important factors: what their message is (“the right message”), who their subscribers or donors are (“the right person”), and when it is best to reach them (“the right time”). Once that is established, I can help to hone in on using the various channels and

tactics available. Having worked with numerous foundations, institutes and research funds including the Red Cross, Furniture Bank, The Grand Opera House Foundation and the Georgian Bay Cancer Support Centre, to name a few, I’ve seen a significant upward trend in online marketing year-over-year.

In chatting with my customer and friend Susanna Kislenko of Furniture Bank, she explained to me “holidays are a time when people are giving thanks for what they have, so it's the perfect time to remind them of the less fortunate, and how they can truly make a difference,” Furniture Bank is a charitable organization that transfers gently used furniture and household goods donated by individuals or corporations, to newcomers to Canada, women and children leaving abusive situations and the formerly homeless.

Leveraging the season for as long as possible is critical to increase donations. We advise customers like Susanna not to be afraid to launch their online campaign earlier, to avoid the peak of the holiday rush. She agrees, “Analytics has taken our use of the email medium to a whole new level.

Nonprofits see high returns through user-engagement.”

People expect to give gifts during the holiday, but they don't always know what to get someone. Many nonprofits have started running campaigns prompting people to donate on behalf of someone as that 'gift'. Using cloud-based software makes it easy to maximize awareness, especially now that it is possible to integrate email with mobile and social media. For Elite Email’s clients like The Black Foundation of Community Networks, Diaspora Dialogues or Shalom Village, this means they have the ability to do all of the following tasks with just a few clicks:

Sharing Latest News Requesting donations Promoting events Asking for volunteers Recognizing outstanding volunteers Announcing new media coverage Sharing urgent "needs" usually based on a current event (like a disaster of some sort) Brand building Using email to push people to join social channels Using mobile text message marketing at on-site events to communicate with guests, staff and volunteers (without the need for walkie-talkies).

In speaking with my team of experts, below are some excellent tips nonprofits and fundraisers can use in building a successful online strategy: Think like the reader. Don't just push corporate information out; explore content that will resonate with your audience.

When driving donations, try to create content that both strikes a November 2013

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Fundraising chord with the audience and provides a sense of urgency. It's not about "donating SOON" it's about "donating NOW".

Change your content from message to message. If every email just says "donate now", "donate now", "donate now", but the content doesn't change, people will stop opening your email (and probably unsubscribe).

Test your subject line to find one that leads to the highest amount of “opens”.

A good subject line can be the deciding factor on whether or not a campaign achieves its goals.

Don't be a faceless organization.

Profiling your volunteers or the people you are helping, helps give you a 'face', bringing your cause to life.

Analyze your engagement metrics to see when you should be sending your next email. Is it Monday morning or Friday afternoon? The day and time can have a big impact because you're asking people to stop what they're doing and do something for you.

The sender name on the email should be a name people will recognize.

If "Nonprofit ABC" is sending the

email, and that is the name people will recognize, don't put "Jane Doe" just because she is the one pressing “send”.

Be prepared to answer replies to emails and social posts. These digital mediums are conversational tools, not one directional broadcasts. Never send from a 'no-reply' address.

Digital channels allow nonprofits and fundraising organizations to capitalize on the 'now' moment. If someone is taking the time to read your email, they could just as easily be filling out an online donation form.

You already have their attention and they are engaged. Most companies slow down around the holidays, more time is spent on personal email and surfing the net, the opportunity for nonprofits to use online marketing is ripe.

Robert Burko is President of Elite Email, Canada’s leading email marketing company working with small and medium-sized businesses all the way up to enterprise across the country in every vertical market imaginable.

Elite has also just launched a suite of mobile marketing tools.

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We’ll guide you on the donor journey. You’ll capture your donors’ heads, hearts and spirits.

Together, we’ll inspire people to do more. Learn more at blakelyjourney.com or call Kimberley Blease: 905 727-6188 x245.

November 2013

DMN.ca ❰

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Once

Fundraising

How to wow readers using storytelling

By Steve Falk

They perform dozens of sight-saving eye surgeries per day, in remote locations where medical care is extremely limited.

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This short message, less than 140 characters or a full ‘tweet long,’ sums up the story of a client we worked with this summer. The not-for-profit, Light for the World, based in Austria, was launching their organization in the US and Canada.

When we first spoke with them I knew right away that their story could create a winning campaign. One that would catch readers’ attention and move them to act.

As marketers we often forget how our readers love to hear a good story.

We all know that a great story will stop us in our tracks and engage us. Yet we continue to write about features and benefits and forget to talk about the people behind our organizations and the impact they have with their work.

My thought today is to encourage you to arm your campaigns with the kinds of stories that help readers sit up and listen to what you have to say.

Let’s look at how we did it with Light for the World, the organization I mentioned earlier.

In a direct mail marketing campaign to Ophthalmologists across the United States, we featured a smiling woman from a third world country holding a white cloth to one eye. Next, we created simple cards featuring an illustration of a person’s eyes and tiny 4pt writing in the pupils (see picture). With instructions to place the cards in the Ophthalmologists’ biomicroscope, our audience could then read a compelling story demonstrating how Light for the World changes the lives of many.

The story’s main character, Dr. Richard Hardi, is an Ophthalmologist who our audience can relate to. The setting is the Congo, where Dr. Hardi sees as many as 250 patients a day.

Our main character’s antagonist - his nemesis - is eye disease and blindness. But we learn in this brief story that our main character fights his nemesis and wins ... as the woman he is treating exits from Dr. Hardi’s surgery with bandages removed and a huge all Not-for-Profit Organizations: smile on her face.

Our story goes on to relate what the cured woman now sees; her Tell us your story and win! daughter’s face for the first time.

People around her cheer and the We’ll feature your story in a direct mail doctor closes with: “Here I feel I can campaign that will drive really make a difference in people’s results to your organization. lives.” It’s their ‘happily ever after.’

Just like a real life fairytale.

So how can you use storytelling Sponsored by to create a successful direct marketing campaign?

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November 2013

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upon a time Fundraising

1. Use heros and villains Every story has to have a main character. Ours featured Dr. Hardi, an Ophthalmologist ‘hero’ fighting the evil ‘blindness.’ Determine who your main character(s) are and think about their strengths and anything else you can use to help readers identify with them.

Next think about your main character’s antagonist - their opponent, or what stands in the way of their success. Think Batman and The Joker. Cinderella and her Wicked Stepmother. For Light for the World it was the good doctor vs. the bad disease. This good and evil interplay is what makes your story interesting.

first things are good for our hero, then he’s in trouble, then he’s okay, then he’s back in trouble. That back and forth -- will they or won’t they -- makes us hang in to discover what will happen next.

2. Paint the picture When describing your story’s setting, use details to help readers transport themselves into your world. In the case of Light for the World, we set the story in the Congo and described the villagers waiting outside the surgery to celebrate and praise Dr. Hardi for his success. These details create images in the readers’ minds that make the story more memorable.

Steve Falk is president of Prime Data, an innovative and growing variable data printing company based in Aurora, Ontario. Prime Data supports direct mail campaigns offering data work, variable printing, mailing, fulfillment and digital marketing services. primedata.ca

Remember when you used to beg for just one more story before bed? That love for good storytelling never really leaves us. Why not take a step further than just informing readers about your product for service. Entertain them.

What story can you tell in your next campaign?

To learn more about Light for the World visit light-for-the-world.org.

3. Once upon a time...

Use classic storytelling structure with a beginning, middle and end.

Sometimes called a sequence, it is essential to storytelling in marketing because it creates flow. Think, ‘our hero was faced with [dramatic challenge], he implemented [our solution/service/product] and now they all live happily ever after.’ You get the picture.

4. Contrast elements to create conflict for suspense Let’s consider the classic romantic comedy structure: boy meets girl, boy loses girl, boy wins over girl and they live happily ever after. Or action adventure:

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cover Story

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To better understand The Shaw’s audiences, marketers first conducted a deep analysis of its customer database, segmenting ticket-buyers in no fewer than 123 different ways.

They used criteria such as when they buy, how many tickets they buy, whether they’re fans of comedy or drama, are under 30 years old or over the age of 65. Then they analyzed the different segments according to the PRIZM’s lifestyle data to get a more robust portrait of the customers’ demographics, leisure activities, media preferences and values. Finally, they divided the results into ticket-buyers who lived within two hours of their stages and those who lived further out.

“This approach allowed us to focus on the high-yield markets,” explains Taylor.

“In the end, we had an idea of which ticket-buyers loved drama, were under 30 years old, lived within two hours of us and what their lifestyle is like.”

To be sure, the PRIZM analysis of The Shaw’s fans yielded some surprising findings. As expected, educated and affluent segments like Cosmopolitan Elite, Money & Brains, Furs & Philanthropy and Young Digerati are well represented in the 25 PRIZM clusters that are home to most of The Shaw’s ticket-buyers.

But the exurban location of Niagara-on-the-Lake, resulted in a sizable presence of midscale town segments like Tools & Trucks and Rods & Wheels.

To make the analysis actionable, the 25 segments were rolled into six target groups that became the focus of direct-mail campaigns featuring differentiated messages reflecting the theatrical tastes and lifestyles of the recipients. Such targeting played well among audiences.

Last summer, a postcard mailing to 95,000 recipients resulted in $440,000 in ticket revenue. Part of the success was due to a play-and-stay feature that offered ticket-buyers a discount through one of The Shaw’s partners, Vintage Hotels, which runs three hotels and an inn in town.

Segmentation analysis has also allowed The Shaw to quickly execute marketing campaigns based on insights from ticket sales. For instance, during The Shaw’s fiftieth anniversary season two years ago, a production of “My Fair Lady” attracted significant advanced sales from new ticket-buyers. Using addresses collected between January and March, Taylor’s team determined which lifestyle types were dominant among November 2013

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SMArTly-CrAFTED ProDUCTIoN” “SNAzzy SMArTly-CrAFTED ProDUCTIoN”

By Peter Baker

ast summer, the Shaw Festival sent out a direct mail brochure that looked nothing like the usual sales pitch from a theatre company: No brooding, bearded playwright pictured on the cover. No cast photo from an upcoming production. Not even a shot of the venerable theatre.

Instead, the cover featured rows of sunny vineyards beneath the headline, “Great Theatre in the Heart of Niagara Wine Country.” Inside, a photo of a woman enjoying a glass of wine in a vineyard ran alongside a list of activities that ticket-buyers could enjoy at attractive rates: hotel stays, winetastings, afternoon tea, a bicycle winery tour and a round of golf at a world-renowned course. Only half of the piece’s eight pages focused on the Shaw’s 10-play season.

So how did this unconventional direct marketing piece fare? Call it a smash hit. The Shaw dispatched 81,000 direct marketing pieces and 500 free-standing inserts to current subscribers and prospects. By fall, the campaign had generated $1 million in ticket sales.

“What we sold was the Shaw experience, offering great theatre and a sense of escape,” says Valerie Taylor, director of marketing, communications and sales at the Shaw Festival. “The trigger isn’t Shaw alone but the destination. We try to break down the barriers of resistance to our experience. And we had an incredible response.”

In fact, eye-popping response rates are becoming more the norm at The Shaw. Located in tiny Niagara-on-the-Lake, Ontario (pop. 16,000), the Shaw Festival has been attracting passionate theatre-goers for 52 years—one-third coming from the U.S. Each year it mounts 10 to 12 productions in four theaters, featuring works not only by namesake George Bernard Shaw but other plays from his era (1856-1950) as well as contemporary works that share his provocative exploration of society. The formula has rewarded the organization with loyal audiences—65 percent of ticket-buyers are repeat customers—and an enviable reputation.

But in an era when the arts are struggling in so many cities across North America, organizations like The Shaw can’t rely solely on their reputations to keep red ink at bay. Indeed, The Shaw has managed to thrive in part due to an innovative and energetic direct marketing approach that draws on data mining, lifestyle-based segmentation, astute partnerships and a customer-centric approach to its entire operation.

Credit for that bit of stagecraft goes to Valerie Taylor, a 20-year veteran of sales and marketing for the arts who gained experience in customer segmentation through her previous work at the Royal Ontario Museum and Livent Entertainment. A fan of PRIZM, the segmentation system from Environics Analytics (EA) that classifies Canadians into 66 distinct lifestyle types, she arrived with a mission to grow The Shaw’s audience—especially among younger theatre-goers who would be the organization’s future. “We already knew who was coming to our shows from our database,” Taylor recalls. “But we wanted to define them and find more of them.”

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The Shaw Festival earning rave reviews for cutting-edge direct marketing

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// 11

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NEWS

MAJOR BARBARA

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ON STAGE JUNE 25

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Barbara runs a mission, her father sells arms.

Who hurts and who heals? Witness the ultimate father/daughter showdown!

Source: Shaw Festival, 2013. Used with permission.

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ON STAGE JULY 14

by Tom Stoppard

Murder. Mystery. Love and revenge.

Two perfect gems by two American Masters.

An intellectual dazzler! It’s a mystery wrapped up in a love story, wrapped up in a scandal.

piece from the summer of 2013 looked nothing like a traditional theatre pitch.

the new buyers. They then ranked local postal walks according to those high-scoring segments, and sent thousands of unaddressed mail pieces promoting “My Fair Lady” and the entire fall theatrical season to these targeted areas.

“It helped us find more of these new buyers,” says Taylor. “Then our challenge became to find out who these people are. Are they the same buyers we had in the past? Do they represent new potential buyers we should be focusing on? That’s what keeps this job interesting: always seeing new changes in the market.”

The Shaw’s plan to attract younger audiences also appears on track—no small achievement given its theatres’ small-town location. Indeed, Taylor’s team has turned Niagara-on-the-Lake’s out-ofthe-way setting into a virtue. By creating partnerships with local hotels (such as Prince of Wales and Sterling Inn), wineries (Peller Estates, Trius Winery), a golf course (Niagara-on-theLake Golf Club) and a bicycle vendor (Zoom Leisure Bikes), The Shaw has turned a night at the theatre into a destination package that attracts young and active customers. In the last year alone, its “$30 for under30” ticket deal has attracted a thousand new ticket-buyers.

November 2013

“Where else can you see ten shows surrounded by this kind of countryside?” asks Taylor.

“This is what separates us from Toronto or New York or Chicago.”

In keeping with its Millennial appeal, The Shaw has moved increasingly into mobile and online marketing.

Sales in 2013 are running $2.2 million ahead of 2012, and mobile ticket-buyers have more than doubled. “I’m interested in all the new bells and whistles,” says Taylor. “We just want to make sure that everything is customer-centric.”

And what would George Bernard Shaw think of digital marketing to promote his plays?

“He’d probably be thrilled by it,” Taylor says, noting that the playwright and author once declared, “People who say it cannot be done should not interrupt those who are doing it.”

At The Shaw, Taylor and her team are proving every day that innovative direct marketing campaigns can attract audiences both young and old.

All it takes is some insight and a glass of wine.

Peter Baker is Vice President and

Practice Leader, overseeing the fundraising, municipal government and library sectors, at Environics Analytics.

Shaw Postcards: The Shaw uses theatre-goer tastes and lifestyles to develop differentiated messages and targeted postal codes in the direct marketing efforts. This postcard campaign, sent to 100,000 recipients, generated $400,000 in ticket sales.

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// 12

Fundraising

It pays A case study of the Hospice at May Court's annual appeal

By Olivia Nixon

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The challenge Fundraisers are well aware of the challenges they face. The drive to increase revenues, ongoing resource constraints and donor fatigue are not news to the not-for profit professional. The Hospice at May Court in Ottawa, faced yet another challenge – major organizational change.

In 2012 Friends of the Ottawa Hospice and The Hospice at May Court in Ottawa, Ontario amalgamated to become Hospice Care Ottawa. Hospice Care Ottawa is a community based charitable organization offering palliative and end-of-life care in a supportive and peaceful setting.

Prior to the amalgamation, the Hospice at May Court set out to launch one last Annual Appeal campaign. In recent years, however, the Hospice at May Court was concerned that its Annual Appeal, although still profitable, was underperforming: costs had gone up considerably while the return on investment was declining. In 2011, the organization had raised $8,500 in a campaign directed at all 9,000 contacts on the May Court’s donor list.

Given that this appeal would be The Hospice at May Court’s last one prior to amalgamation and the final appeal from the organization’s outgoing Executive Director, the appeal need to be both meaningful as well as highly successful. The May Court set a budget of $10,000 and a fundraising target of $30,000.

The Solution In consultation with the fundraising professionals at the May Court, TRICO evolution took the organization’s complete donor list and analyzed donor behavior and patterns. Based on the analysis, the target list was reduced from 9,000 plus donors to 497 high potential donors or targets.

“The ability that TRICO evolution had to analyze our data in order to customize the mailing is what made all the difference,” said Jana L. Rand, the Manager, Fund Development and Marketing at the May Court at that time.” This valuable information will allow the Hospice at May Court to build on further appeals.”

To execute on the appeal, the TRICO evolution creative team developed a simple package with a highly personalized look and feel that included:

For a Free Demo and to learn more, visit donorperfect.ca/DMM or call 877-938-1221 ❱ DMN.ca

November 2013

Fundraising

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to get personal! ❯❯ ❯❯ ❯❯

a personalized letter with a tailored P.S.; a donation card with a variable gift matrix; and a first class postage stamped return and carrier envelope.

The message was developed to be both timely and highly relevant the targeted audience – a final appeal from the outgoing Executive Director of the May Court to contribute to the May Court. The letter also provided information on the amalgamation of the two organizations and set the stage for future campaigns by the newly formed Hospice Care Ottawa.

TRICO evolution employed advanced, data-driven hand-writing technology, with a real pen, to address the carrier envelope and added a variable, hand-written P.S. message to each letter that again personally addressed the donor by first name, thanked the donor and identified the donor’s last gift amount. By design, the package was simple and did not look in any way mass produced. With only 497 units, the Executive Director of the Hospice at May Court was able to personally sign the letters. The package of highly personal elements and relevant content added to the frequency and amount of donation.

The Result The May Court raised over $52,000 more than doubled its original fundraising goal. At the same time, the total cost of the campaign was considerably under budget at only $6,000. This cost included first class postage on both the carrier envelope and enclosed business reply envelope.

“I really like the May Court story because it shows that data, even small data, can make all the difference when developing fundraising strategies and tactics,” says Dean McJannet, Vice President of sales, marketing and new product development with TRICO evolution.

“Working with a database of only 9000 contacts we were able to segment out those donors that would not likely respond to an annual appeal and those donors that would be highly likely to respond. From there, we made the content relevant and personal based on the donor history and patterns. We doubled revenues while cutting campaign costs by nearly half. The Hospice at May Court is a great example of how we empower not-for-profits of all sizes to do more with less.”

TRICO evolution is a fully-integrated marketing communications company with operations in Laval, Vancouver and Ottawa. The company also offers strategic planning; marketing intelligence and data analytics services; direct marketing and direct mail; as well as high-end offset, digital printing as well as print on demand services.

Olivia Nixon is a Marketing Manager at TRICO evolution.

November 2013

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Feature

Are you ready?

In a data-enabled marketing world, instituting marketing data management and governance is now an essential function for marketing executives.

The following is the second in a three part series on the rise of Data Management as a core marketing function. The series delves into why Marketers should adopt a more formalized approach to managing their data; methods to implement their solution and finally the key success metrics and best practice learnings. As this topic is a new and emerging area for Marketers, we encourage you to join in the discussion, add detail to the context, and most importantly begin the dialogue within your marketing teams as to how you are going to take on a more engaged role in this critical data-enabled marketing world. By Paul Tyndall, Alexis Zamkow and Jan Kestle

representatives from different departments within your company or by a few key individuals that have responsibility for these roles.

When getting started, the following functions are recommended as the primary members of a Marketing Data Management and Governance council: Privacy and/or Policy Legal / Regulatory / Compliance Business Information/Intelligence Product Management Marketing Distribution / Channel Management Enterprise Data Architecture / Governance

By Paul Tyndall, Alexis Zamkow and Jan Kestle

D

ata Management and Governance for the Marketing department is similar to that of other functions in the organization. The core discipline embodies a convergence of data quality, data management, data policies, business process management, and risk management surrounding the handling of data. Marketing is no different, although the types of data use of data, and while the partnerships created through media/channels and product partnerships ads have very unique aspects to them, the core discipline is no different.

Most organizations that have successfully pursued this area have established a Marketing Data Governance Council. In building this council you require the appropriate resources, and a defined set of functions and roles as part of the committee.

Who do I invite onto the Marketing Governance Council?

Regardless of the size of your organization or the industry in which you work, you will need to consider different aspects of marketing data in order to be successful. There are several areas which need to be represented in a Marketing Data Governance Council and these roles can either be filled by multiple ❱ DMN.ca

The secondary team members are added based on unique business and profiles functions. You may also consider including them as invited guests on specific topics, or participate in specific functions or policy development tasks. These departments should though be included in all general dissemination of information derived from the council. The secondary members include: Management Reporting Risk Management Fraud / AML Research Strategy/Partnerships Sales Corporate Communications Overall, the key members are selected based on the degree of impact they have on the use of data .They are most often senior members of their respective departments and either oversee or are the acting the Data Stewards. For those unaccustomed to the term, a Data Steward is the designated custodian of the way data is used and managed within a department. They need a solid understanding of their department’ business processes to ensure that data is being collected used and maintained effectively. Collectively, these individuals protect the value of the core enterprise data asset.

For the marketing department, these individuals are most often responsible for the marketing database or marketing analysis functions.

What are the core team’s roles?

For the core council members, their functions are critical and broad. We have suggested the rationale and function of each member below as a starting point for your discussions with the department leads, supporting their participation on your council.

Privacy and Policy teams have an important role to play to protect the assets of the organization as well as ensure that usage of data is in keeping with all consumer legislation and internal corporate privacy policies. Privacy and Policy teams can be the make or break partners as marketing moves into social/mobile media, channel partnerships and greater transformation of data into more “personally identifiable” views of consumers and prospects. Privacy approval and alignment with the use of data, at the beginning of an engagement reduces your risk and ensures better support when issues arise.

Legal / Regulatory / Compliance is often brought in when it’s time to pen the contracts or when there are disputes. As a core member of the Governance council, the legal department can now participate in the early stages of partnership development which can improve their understanding of the business intent and can allow for customization or streamlining contracts when the rubber hits the road. Protecting your intellectual capital is critical, and as data is often a key point of differentiation, strong legal protections between yourself and your partners is a sound approach. Bring legal in early and often and your partnerships will flourish!

The Business Information/Intelligence team is your primary source of internal data through access to your data warehouse and or data marts supporting various functions. These teams can provide to you the existing definitions, protocol and relationships for internal data that are necessary to include in your data mapping exercise. They also require insights into your unique data transformations and usage rights so that any data that they mange on your behalf is treated under the appropriate terms and conditions of use. Once data leaves your hands, often this is the group is in charge, so having a team member on your council is critical.

Product Management teams are often searching out new partners in technology, data or complementing November 2013

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Feature product solutions, so having them share their activities early will be of benefit. These teams will also advise if your data polices are restricting the development of solutions that would be advantageous in the market.

All products that factor data elements should be reviewed by the council to ensure adherence to privacy and legal before full product development begins.

Early stage product development review through the council will ensure that on products that comply will be invested in and brought to market.

The Marketing resource assigned to this team is the most senior data expert in your marketing team, with a strong understanding of both the strategic and tactical use of data. As the council lead, this individual will be responsible for the initial project to map data as well as coordinate the development of the foundational policies and standards. This role could in some cases require a full-time assignment especially at the start of the engagement but once the foundational steps are completed, the role will be that of oversight and issue management more so than policy development and data mapping.

Distribution / Channel Management teams often are at the frontlines of capturing and creating new client data elements as well as presenting that information back to the your clients. They need to be engaged early in the process to ensure that any decisions they make regarding implementing new technologies are aligned with the needs of the business to capture and track this information on the backend.

Too often, businesses rush to launch the latest mobile app or small format retail store without consideration being given to how these unique data elements could be captured and how will this data be leveraged by the enterprise.

Enterprise Data Architecture/ Data Governance is your direct partner in this exercises as your council is functioning in a similar fashion to larger corporate Governance initiatives. This individual is your “representative” to the enterprise and is the best conduit for information sharing, issue escalation or conflict resolution around the use of data or any data integrity issues. As your direct liaison, you now have an advocate at the table when major changes are considered across the organization. This individual will also bring you updates on changes that could have a direct impact on the marketing team, so you’ll be better prepared to be proactive rather any reactive to the consequences.

So that’s the core team, all senior managers and all committed to collaboration to maximize the value of data while delivering customer experience that drive profitable growth. As many of your council members report into different departments outside of marketing, it is recommended that in addition to their participation, you request from their boss that data governance responsibilities be identified within your council member’s job responsibilities to reinforce the mandate and gain wider alignment.

Let’s make this actionable – now what is this committee going to be tasked to do?

Keeping the mandate simple and focused to start will enable a quick start approach which can be refined as you go.

Oversee the management of the marketing data (internal and external) which will be collected, orgaNovember 2013

nized and analyzed to drive business performance; ensuring that there is one trusted and consistent version and appropriate policies and procedures to safeguard the distribution and usage of this data.

Getting the core function set-up is the first priority of this committee, and thus we recommend the Identification and Definition of Policies be the first two activities of the team. These functions will create the foundation of the mandate.

It’s about integration – don’t forget the larger enterprise mandate!

As you move forward, always keep in mind the larger enterprise governance mandate, as the closer you design your specific function to the enterprise approach, the better your corporate alignment will be, acceptance by others to participate and for immediate results in improved interactions with the IT function.

Enterprise Governance mandates often include:

Identification of Marketing Data and Data Stewardship – the first project Define the key data elements used by marketing Identify the data elements that Marketing is the data source and has full responsibility for Outline usage restrictions for each data element Understand the usage of marketing data in other supporting functions and determine the key contact for each group (their departmental Data Steward) Collect and understand any policy or privacy standards relating to the use of internal or external data Collect and classify all legal documentation currently available for the exchange of data with third partiers as well as licenses for commercialization Define policies, standards and procedures – the critical foundation of decisions and actions Define and document the legal and privacy rules of engagement with external data partners Define the use cases structure needed to engage a third party in any data exchange Build appropriate NDA and legal contracts for data management between partners Create a dissemination approach for existing and new data element definitions Define the user rules for categories of data, and a template for usage evaluation Define an escalation channel for any privacy or data breach situations Define a process to report data issues to a designated committee member Ensure policy and privacy compliance for all data elements, both at source and transformed.

Once the policies and data mapping is in place, then comes the critical day-to-day work of the council.

Manage ongoing data introduction, usage, integration and issue resolution – the everyday work, through regularly scheduled and ad-hoc meetings Review and approval of all new data sources prior to introduction into the ecosystem Documentation and distribution of data updates for all departments engaging in marketing data Review requests for access to sensitive or restricted data Assessment of new partnerships, data-enabled product develop ideas and marketing planning tied to unique or sensitive marketing data Manage issues and escalations as required Ensure consistency between Marketing and other data governance functions in the organization through mutual participation in council meetings and regular formal and informal communications

Establishing common definitions and hierarchical Views used; Coordinate information storage and aggregation efforts across the enterprise Establish accountabilities for information management; data integrity and derived information; Establish principles of data and information Access; Ensure all information management respects Privacy and Security policies; Foster a culture of strategic information management Prioritize information needs of the business and key metrics If this sounds a lot like what we just recommended you establish, then that’s the idea! For your fledgling Marketing Data Management and Governance function to be successful, sharing common goals and approaches is important, as you are a direct contributor to the enterprise data ecosystem. Having a focused council and approach will thought allow you to properly manage the unique data and partnerships that only marketing controls, thus reducing your risk and allowing you to continue to explore new data possibilities with both confidence and enterprise support.

This isn’t just for big companies – every business can benefit, and we will show you how!

In the final instalment of our series we will talk about the ways corporations have built and measured the impact of their Marketing Governance and Management functions. It is important to note that formalized data management and governance is not restricted to large multi-national businesses that are dealing with sensitive financial or transactional data.

There are measureable benefits for any size of organization large or small, as well as across all industries as data is pervasive and a critical enabler to better customer and market insights.

Even though each organization has its own unique data nuances, getting proactive in controlling data can improve productivity and offer a competitive advantage. Hearing first-hand learnings is a great way to understand the true benefits, so we will bring forward experiences and best-practises from organizations large and small who have implemented Marketing Data Management and Governance and are now advocates to this strategic approach to data.

Paul Tyndall, RBC Royal Bank, Client Knowledge & Insights, Alexis Zamkow, General Manager, Data and Targeting Services, Canada Post and Jan Kestle, President, Environics Analytics are members of the Canadian Marketing Association’s Customer Insights & Analytics Council.

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Feature

Rethink your channel strategy Key advice from industry experts

By John Bardawill ethinking your channel strategy was the focus of a Roundtable Discussion that I moderated recently.

Hosted by the Canadian Marketing Association and sponsored by LoyaltyOne and TMG International Inc, the Roundtable included senior executives and digital media experts from Google Canada, Canadian Tire, LoyaltyOne, Scotiabank and Sunwing Vacations, Signature Vacations.

Marketing to the ‘connected’ consumer requires organizations to be actively involved in various social media channels. We have a variety of new channels that we didn’t have 10 years ago, and a host of costs and considerations relating to those channels. Organizations need to be aware of what their customers want on a consistent basis from a contact perspective.

R

Why is it important to rethink your channel strategy?

Consumers are in the middle of a dizzying landscape of social media channels and customer needs are changing very rapidly. The focus needs to be on their needs and experiences, but getting ahead of that curve becomes more challenging as technology develops faster and faster.

“The consumer journey is fundamentally changing,” stated David Resnick, Head of Industry - Financial Services, Google Canada. “The way consumers are asking questions online, and the channels they are asking those questions on, whether they be mobile phone, tablets or web enabled TV, means they are leading the charge, but businesses aren’t keeping up with those changes. You don’t have to jump on everything, but you need to understand how to evaluate channels to serve your customers the way that they want to be served.”

Do: Develop a strategy based on what customers want and the related channel requirements.

Put a channel management infrastructure in place and ensure you have the resources to manage all of the different channels.

Communicate the strategy and role of channels throughout the organization.

Are there too many channels and how do you cope with them all?

With the multitude of social media channels, customers are splitting into smaller groups to talk to your brand.

Customers are driving the various channel activities and continue to do so at a staggering rate. The key is to take control over the channel specifics and ensure you have a ready response regardless of the channel the customer is choosing.

“Customers expect an immediate response that addresses their issue, which is challenging when you have so many different groups supporting the various channels,” says Richard Moore, National Director, Sales Centres, Sunwing Vacations, Signature Vacations. ”Ensuring you have the right people to support those channels is critical.”

“You have to decide as a business how, and if, you are going to invest in the various channels,” stated Sharmane Good, Senior Vice-President, Customer Care, LoyaltyOne. “Some channels require more effort than others from a customer point of view. Customers are channel agnostic; they just want to go to the place where they can get an answer quickly and with the least amount of effort.”

Do: Link all of your channels together so that your customer has a seamless experience.

Guide customers to the channel where they will get resolution on the first contact.

Be available and consistent across all of your channels.

Ensure the cost of servicing every contact point doesn’t outweigh the potential revenue.

❱ DMN.ca

// 16 How do you decide which channels to invest in?

Are you investing in the right channels? Are you making investments at a pace that matches how consumers are evolving and looking to interact with you? It is important to watch and listen through multiple channels to what your customers are doing and saying, and to use data to support your decision making.

“We are trying to watch all of our channels to decide what content we serve up, and where we can test and target,” said Rosie Riolino-Serpa, Assistant VP Digital, Canadian Tire. “Analytics plays a big role; we’re constantly looking, constantly measuring, and coming back with opportunities. We have to put ourselves in our customers’ place to understand what they are looking for and what they want.”

Do: Make data driven decisions around which channels you choose to invest in.

Test and learn; start with a small group of customers to determine response rates and customer experience.

Assess and apply applications of learning from prior channel activities.

Where does the brand fit into channel mix and strategy?

Regardless of the channel being used, it has to feel the same to the customer as there is an emotional component. “It’s seamless so that every single touch point represents the brand in the same way,” said Marie-Josée Vinet, Vice-President, Channel Marketing & Services, Scotiabank. “It’s about sharing information between all those touch points so that the brand experience is exactly the same in all those channels.”

Do: Factor your brand into the consideration and development of all your channels.

Make sure that each channel feels the same to the customer.

Develop guidelines to represent the brand, logos, fonts, language and tone and ensure consistency across all channels.

Social media channels have drastically changed how we market to and interact with consumers.

Customers are searching for timely, relevant and compelling information, so organizations need to find and utilize effective tools to build enduring customer relationships and maximize consumer engagement.

By revisiting your channel strategy you have the ability to enhance your marketing strategy and deliver a positive, data-driven, customer-centric brand experience.

John Bardawill is Managing Director of TMG International, a

consulting firm focused on Business and Marketing Strategy, Channel Management, and Contact Centre Development.

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PRINT RESPONSE Dispelling myths and raising consciousness

By Laura Artibello energetic support. To learn more about the alliance please attend one of my two speaking opportunities at Graphics Canada on the 21st and 22nd of November ow many stories and articles at 2:15 pm. If you see me on the show floor, please feel free stop and introduce have we all read about the yourself. I will be happy to answer your questions and tell you how you can Future of Canada Post, declining help. On December 4th, 2013 the CCPO will be presenting the Jobs Study at the mail volumes and the drastic changes we Chateau Laurie in Ottawa. You are welcome to attend this inaugural event and can expect to the printing and mailing please encourage your MP to be there. industries? Most of us have remained If your business or constituents are at risk from the demand destruction of paper, complacent for too long and now we then stand with CCPO and pledge your support today. With your support we will be a are scrambling individually to diversify, transition to digital or for those without strong and unified voice for Canada’s paper-based communications. resources, face business closure. Yes, our world is changing and keeping up with technology and customer requirements is important and necessary. However, we seldom analyze the real reasons for this demand destruction of paper, or afraid to Laura Artibello is owner of Mailennium, originally opened in the Year 2000 as a primary letter shop. do so as many of our large customers and the government are actually behind this She has over 20 years experience in the paper industry from buying print to long-standing board movement. This is our own fault because…. we have never fought back against this positions including NAMMU, DMAT, MASA. Laura is the Council Chair for Value Added Mailer’s a national attack on paper! We haven't legally challenged the misleading and false messages forum, which initiated the Canada Post Partner Program. such as "save an envelope, save a tree." Equally important is the fact, most North Americans want a choice. Finally, there is a voice supporting our industry and something we can all do to curb this trend and get the story about paper straight!

My name is Laura Artibello and I am the president of the Canadian Consumers for Paper Options (CCPO). CCPO is a newly formed alliance CONFERENCE AND EXHIBITION that is taking a strong public position, challenging the Canadian December 9-10 at Hyatt Regency Hotel government, financial institutions, large service companies and major organizations by providing a creditable voice to advocate for paperbased communications. Due to new laws, initiatives and regulations Unlocking the power of your customer information Canadians are rapidly losing access to their government, banks and big companies through paper communications. Canadian companies are penalizing consumers with fees for wanting to receive their bills in hard copy. They are also offering their employees financial incentives to coerce customers into going paper-less. This is all being done under CRITICAL INSIGHTS ACHIEVE BETTER MARKETING the pretense of helping the environment. The truth of the matter is FROM: RESULTS WITH DATA: this is being done to increase the bottom line of these companies with Twitter little concern to the overall economic impact to Canada and the serious  Drive an integrated approach Walmart negative consequences for the environment that the “going all digital” to harness customer data TD Bank world has to offer. This new Alliance was founded to empower paper Engage customers and maximize Forrester Research based communications, to counter the so called “green lobby” and your marketing ROI Monster provide choice by voice.  Meet the most innovative firms RBC Initially the founding members of CCPO recognized that a proactive and experts National Post approach was needed to fight the unrelenting miscommunication  Learn about the marketing RAPP DBB we call “green washing”. We outlined the objections consumers had. technology landscape Rotman Collaborated with paper manufacturers along with the print & mailing OCAD Don’t miss this 2-day conference industry colleagues in Canada to lay the groundwork for an alliance STAY AHEAD OF MARKETING TRENDS! and to meet those challenges head on. After establishing the most immediate threats and challenges, it was decided that a jobs study of the paper industry in Canada was needed to be conducted as soon HEAR FROM OVER 50 SPEAKERS OF THE DATA MARKETING SPHERE! as possible. An economist from Ottawa was contracted to conduct Kirstine Stewart Ann Cavoukian, the study, which was recently completed and will be presented to Head of TWITTER CANADA Ph.D Information and Privacy Parliament in Ottawa on 4 December 2013.

Former EVP of CBC English Commissioner The Canadian study found that the print & mailing industry is OIPC OF ONTARIO Services critical for over 800,000 jobs and $88 billion in revenue.

The Print & Mailing Industry in Canada also drives a significant Jean-Paul Isson amount of job and wealth creation, including e-commerce. Our Michael C Wong Global Vice President BI and Director of Enterprise Business research has also found that Canadians do not like losing the option of Predictive Analytics Intelligence Services communicating via paper with those they do business with and further MONSTER WORLDWIDE RBC ROYAL BANK dislike being coerced into going digital.

Which industry plants 600 million trees every year, and that’s just in Canada? Which industry actually grows more of its main resources IN PARTNERSHIP WITH: than it consumes? Which industry generates most of its own energy needs from renewable resources, including biomass, biogas, hydro and wind? Which industry uses renewable resources and recycled stock as its main ingredients? Which Industry has worked harder on improving its environmental performance with partners and advocates including governments, customers and environmental groups?

We all know that, but most Canadians do not. CCPO was formed MORE INFORMATION AT WWW.DATAMARKETING.CA specifically to get that message out, but we need your active and

H

Toronto

November 2013

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FEATURE

The evolution of email It’s 1971. The internet is not even born, but the first email has already been sent. In this prehistoric era of email, messages are not much different from the plain-text ones we see today. But email is still a techie’s toy that is far from mainstream.

❱ DMN.ca

By Robert Burko

O

ver the next couple of decades, people begin to wise up to the power of the medium, which can deliver a message to any person, at any time, in an instant—and basically for free. Salespeople are especially keen on the idea. Hey, this can be the death of a (door-to-door) salesman. It becomes so easy to peddle anything from legitimate products to drugs to money-making schemes. Everyone jumps on the bandwagon, leading to this new era: the reign of unsolicited

email. Eventually, readers get annoyed and email providers find a solution.

Enter the spam filter.

As spam filters target the keywords contained in these unsolicited emails, the focus shifts to enhancing the appearance of emails. I like to call this the teenage years, or the shiny era of email. Emails start to look really cool, and more and more legitimate businesses come on board to be a part of this flashy new opportunity. But they focus so much on the appearance, and forget about the power of content,

strategy, and analytics–just a few minor details.

It’s only around the mid-2000’s that email truly grows up, and we enter the scientific era of email. With the proliferation of analytics, email marketing becomes more strategic–and much more impactful. Finally, businesses are using behavioural data to target the right person, at the right time, with the right message.

Strategic approaches like segmentation and re-marketing contribute to an astounding finding: email marketing

November 2013

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FEATURE

generates an ROI of $43.52 (Direct Marketing Association, 2009).

What’s even better is that these advanced strategic tools are now available to virtually anyone through easy web-based services like Elite Email.

Gone are the days when you needed a huge marketing budget and a full-time tech expert to run highly strategic email marketing campaigns.

Today, the scientific era is evolving into the era of engagement. The goal of the game now is to boost open rates, click through rates, forwarding rates,

and sharing rates. And there are two reasons for that.

The first (and most obvious) is that when consumers are engaging with your content, it means they like what you’re offering and are more likely to do business with your brand.

Secondly, spam filters have become more sophisticated, relying on both content and human behaviour to determine the legitimacy of a message.

This means that even if an email passes all the content tests, if recipients mark it as spam or it comes from an IP address

known for getting complaints, then it gets turfed into the spam folder. So engagement today is the key to both business goals and deliverability.

Engagement today is also a world apart from what it was like in the infancy of email. Thanks to mobile connectivity, people are online—and checking email—anywhere they go.

While many people still check emails from their computer, a growing number of readers are now interacting with emails exclusively on a phone or tablet.

So if you want to boost engagement, you need to make sure your email displays correctly on whatever device readers are using. This is called responsive design technology. Currently, not many organizations have employed responsive technology, but in the months and years ahead this will become the de facto standard.

The last part of the puzzle shaping today’s email era is a little thing called social media. A while ago, some pundits said that social networks would kill email marketing. Today we know this couldn’t be further from the truth. Email is actually at the heart of social networks because Facebook, Twitter, and all the others send email notifications when something happens. As a result, social networks have actually conditioned people to

be glued to their email inbox. There is a wonderful symbiotic relationship between email and social, and the marketers who can tap into that will continue to benefit greatly from increased exposure across all channels.

What lies ahead for marketers are some substantial changes, as the Canadian government is going to jolt the digital landscape with the introduction of CASL. The proposed legislation, which governs all consumer electronic messages (email, mobile, social) is the new rule book for those contacting anyone in Canada (including American companies reaching out to Canadians).

While there are some new rules that will change the workflow—especially in regards to obtaining consent—the good news is that those who are already following “best practices” won’t have to do anything too drastic. Thankfully, that’s the one thing we can always count on with email: send the right messages, to the right people, at the right time, and success is sure to follow.

Robert Burko is CEO of Elite Email, a leading email marketing solution that has been helping businesses of all sizes harness the power of email for over 10 years. Robert has been featured extensively in the media as an expert in email marketing, social media and digital trends. Learn more about Elite Email at www.eliteemail.com.

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Column

Grumblings & Rants from a Data Guy (Part 3) Building Your Digital Messaging SCA

M

arketing leaders are disciplined builders and they methodically create programs and assets to give themselves a Sustainable Competitive Advantage (SCA). This article reviews the types of SCA’s that marketers can build and why more marketers should focus on digital communications.

My previous articles emphasized that marketers need to return to planning fundamentals and embrace measurable data driven marketing. AboveThe-Line (ATL) marcom tactics generate reach but do not create bottom line activity. Today’s marketers should focus on how they can profitably influence customer behaviour. Below-The-Line (BTL) marketing programs are reliable response streams and there are a number of “low hanging fruit” programs that most marketers should consider.

Of course, the mix of marcom programs depends on your business model. But beware of shorter term tactics are often one-shot “gushers” that bring hype but no benefit. Automated digital messaging programs take more time to initially plan but they create annuity streams and measurable ROI. When will the marketing community get it? Too many marketers and agencies are just executing tactical, short term initiatives with too much emphasis on Above-The-Line (ATL) promotion. Three months is NOT long term! Mass reach and building your brand through ATL promotion is ok but it may be overkill depending on the competitive activity in your sector. Furthermore, many marketers overlook the “low hanging fruit” because they aren’t drilling into their data. It’s time to stop and reflect on your plan for the next two quarters. Are you building something or just doing stuff?

From what I see at industry conferences the doers are scattered. There is too much talk about fluff and what’s “cool”. Don’t get me wrong, innovation is great if it supports your business and if it is sustainable.

But there is too much focus on cool without substance. My advice, pause the short term tactics and figure out how to build longer term Sustainable Competitive Advantages (SCA).

Building a sustainable competitive advantage The core principles of building an SCA are to create something that is rare, consequential and ensure it that is not easily replicable. An SCA fits your business model, supports your competitive strategy (differentiation, focus or low cost leadership) and should be based an area of strength/capability (so that you can continue to make it stronger). Note that consequential means that the SCA should be measurable and that it needs to impact the bottom line (i.e. a BIG ROI) ❱ DMN.ca

Marketers typically build SCA’s in three areas: product, channel or promotion strategies. Some SCA’s are easier to build than others and it depends on your internal resources.

1. Product In general, innovative product enhancements provide great short/medium lift but big innovation can be an expensive proposition. BlackBerry was an early tech pioneer based on tech talent from the University of Waterloo but eventually lost its product advantage. The alternative to discontinuous innovation is just to tweak your product (continuous innovation) and to add a few new features to stay ahead of the competition. The challenge is that the changes can be copied and the advantage is short lived (this often happens in mature businesses like CPG food manufacturing and retailers). Of course, the base standard for marketers is building the brand which, definitely can be a strategic differentiator. But branding takes time and significant resources… so be careful what percentage of the budget you spend here.

The common mistake of businesses is that not all businesses can be the leading brand in their category and the brand spend escalates. That is why it is often wise to invest in multiple SCA’s.

2. Channel & distribution Apple doesn’t manufacture its own products but it does own the happiest place on earth, Apple Stores. The stores are a huge investment (and lease commitment) but they give Apple control over the customer experience and allows gurus to reinforce their brand promise. The high traffic locations are also an ideal magnet for users. Another retail success story is Tim Horton’s. Tim’s is an iconic Canadian brand whose SCA is in the strategic placement of their franchises on high traffic commuter patterns.

Plus, their real estate is long term and supports their convenience service business.

3. Promotion strategies Contests and price discounts are not SCA’s (i.e. don’t pass the requirements for rare, consequential and difficult to replicate). Most social media campaigns are short term tactics to generate quick visibility to a wide audience (i.e. they are not often sustainable).

However, a dedicated social team that provides constant customer services and creates owned media is an SCA. One good example is how CapitalOne successfully leveraged their NCAA Final Four basketball sponsorship by creating a major integrated social media program called #rallycry. CapitalOne assembled a cross-section of social media experts

in a “social command center” and they engaged and rewarded fans over 10 days. They integrated online videos from a cross section of vloggers and generated over 5 million branded video views. The authentic content and approach resonated with fans and CapitalOne had greater visibility than Coca-Cola and AT&T. CapitalOne received massive ATL brand impact for an investment of $2 million and plan to expand the program next year. (Note: surprisingly they didn’t collect email permission which was a missed opportunity to continue/extend the conversation).

Another way that marketers are creating promotional SCA’s is to create their own media/event properties. P&G pioneered this when they created the “soap” TV shows in the 1950s and today some leading marketers, like Red Bull, have created their own series of events (e.g. Crushed Ice) that they own.

Turning your digital streams into your SCA For today’s digital marketers, there are even easier and more cost efficient ways to engage customers and prospects (versus traditional event marketing).

Marketers have direct channels of communications (email, mobile, social) and can build virtual “communities” and owned media/content. Building a deeper relational database is a long term advantage that allows marketers to see what is happening to their base.

Growing your email permission base from your customers gives you reach, a speed to market advantage and allows you to control the message to deepen relationships. And, building a permission list is an asset as your partners will see you with greater value. One of our CPG clients has used their email list to do special promotions with key retailers plus, they also received over $1 million in free advertising with a TV network.

Leading companies typically take two approaches to building or fine tuning their direct digital communications. If they have an existing email November 2013

// 21

Column program we advise them first to go for the “low hanging fruit” and create automated triggered streams/programs. These programs can be built, optimized and then run in the background in an automated fashion. Once built they are a sunk cost and they directly impact the bottom line. The second approach is to build a broader relational marketing program with newsletters and dynamically populated eAlerts. Companies can easily publish digital content directly to their audiences. The trick is to find a sustainable positioning and content that you can deliver that resonates with your target audience.

“Low Hanging Fruit” programs: Key digital communication programs that build an SCA The fastest results come from automated programs (that run in stealth mode). The general rule of thumb is to optimize and automate your most important programs. These typically include communications around “moments of truth” (e.g. welcome streams) or triggered messaging around significant changes in clickstream or shopping behaviour (e.g. decliner).

Triggered digital messaging is great because it is not easily visible to competitors, it is repeatable and has great ROI. Below is an outline of three digital streams marketers should look to incorporate. a) Welcome streams First impressions are important and reinforce the opt-in promise… so the first message should clear, concise, engaging and timely. The goal of the welcome stream is to make opt-ins more engaged for longer. New opt-ins are typically quite receptive to information but be careful not to overload them.

The best welcome programs are series of 3-4 sequential messages that gradually build content over 20 days (and each message has a unique purpose in the sequence). Opt-ins who experience a welcome

stream have 55% higher email open rates and 44% higher CTR% versus control (Inbox Marketer case study). Welcome messages also translate to a +15% incremental lift in Active Shoppers and reduces customer churn by half (Inbox Marketer Case Study).

If you don’t have a good welcome program be prepared for a high proportion of “never actives”! b) Clickstream inactivity A big problem for most email marketers is the inactive segment (recipients who don’t open or click over 6 months). Our modeling shows that 17%-40% email actives turn inactive each year. Ideally marketers should re-engage these people as soon as possible.

Through testing and optimization, it is possible to re-engage over 50% of inactives. c) Decliner shoppers Targeting shoppers who are reducing their shopper frequency yields big dividends/results. Automated decliner programs require more data (loyalty or SKU level) and a highly disciplined direct marketing with some more complexity. Shoppers are motivated differently so the marketing blueprint should include variable messaging and offers. Inbox Marketer recently designed and executed a decliner program for a major retailer with a loyalty program. Double digit results and the entire program breakeven is 12 months. (i.e. after 12 months the program will have paid for itself and then it becomes a steady revenue generator). d) Other Automated direct marketing solutions can be similarly applied to other programs such as movers, best customers and Abandoned Shopping Cart.

Look at your customer data and you will find more opportunities.

Conclusion Digital is a great way for marketers to build an SCA. Social media when done strategically can garner excellent visibility, resonate with your target audience, and create digital assets (videos, etc.) that live on. But the ATL market is crowded and you are competing against a lot of marketers. Balance your marketing activities with BTL programs. Don’t overlook the “low hanging fruit” in your current digital messaging. Yeah, I know email and SMS are boring but The ROIs of 40:1 resonates in the C-Suite.

[Next time let’s talk about building a relational marketing and owned media plan!!].

Some SCA’s in industry are more obvious than others In Nike’s launch of Fuel Band is an interesting product extension to leverage customer/user data.

Wal-Mart’s key SCA is their automated logistics and data capabilities (plus their incredible economies of scale). But few business people know about their Innovation Group based in the heart of Silicon Valley. Their advantages would be hard and expensive to replicate and they give Wal-Mart a huge efficiency and cost advantage.

Scotiabank’s joint venture in the Scene loyalty program is a big SCA. Targeted at youth with the the Cineplex entertainment chain as a partner, Scotiabank has a future stream of prospects.

On the B2B front, 3M is an innovation machine and their corporate structure is fully aligned to reward new product innovation.

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Directives continued from page 4

Developing techniques through all forms of communications media to intensify the donors’ engagement with their favoured charities and reduce donor attrition. This would include taking advantage of traditional direct response marketers’ understanding of how to build effective ‘calls to action’, without relying exclusively on direct mail to get the job done. However, contrary to popular belief, direct mail is not even nearly dead, as it remains the single most effective way to reach the traditional donor. But, integration will strengthen even traditional direct mail appeals.

Working to loosen restrictions on mobile fundraising (especially SMS) to better serve both charities and donors. It seems like everywhere else, mobile engagement and mobile giving are growing at exponential rates. In other countries, charities are allowed to re-contact people who respond to text campaigns. There’s no legitimate reason that shouldn’t also be happening in Canada.

Figuring out a way to fund more mass media buys and build them into a charity’s overall marketing plan. Increased corporate support could be the key.

Extending the highly successful integrated marketing campaigns that many charities have built around their major charity events to their direct fundraising appeals. Far too often, there’s a disconnect between the two fundraising avenues.

In conclusion, it bears stating that there are still many opportunities for charitable fundraisers and non-profit marketers to do great things to help make the world a better place, but it’s going to take more creativity, commitment and courage than ever to accomplish.

By setting our sights on harnessing the accelerating change occurring all across our sector, focusing on developing messages that resonate loud and clear, and tying our fundraising, marketing and governance efforts together, we just might get where we need to be.

Paula Attfield is chair of the Association of Fundraising Professionals (AFP) Congress, being held Nov. 18 - 20 in Toronto, and Executive Vice-President of Stephen Thomas Ltd, Canada's premier integrated full-service agency specializing in marketing and fundraising exclusively for the non-profit sector.

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