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Cover and title pages

Przemysław Spiechowski

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Polska Izba Książki

Copyright © by Wydawnictwo Naukowe PWN SA
Warszawa 2018

Copyright © for the text by Grzegorz Błażewicz, 2018

eBook based on printed edition from 2018 r., (1st. ed.)

Warsaw 2018

ISBN 978-83-01-19538-0

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Contents

Introduction
THE PHILOSOPHY OF MARKETING AUTOMATION

Changing marketing

Enchanted by the marketing wizards

Excuse my French, “artist’s shit”

There is no remedy and there never will be

New marketer and the new school of marketing

Who is this book for and how to use it

Part I
NEW TERMS

1. The meaning of Big Data revolution

Why Google knows best

More and more information

Correlation instead of causation

Everything is data

Algorithm will pick a TV series and a playlist for you

Data as corporate capital

2. New consumer

Independence

Prosumers and their habits

Mobility

What do marketers think about this?

The role of apps

Appification

The ROPO Effect and showrooming: why do customers migrate between channels?

The Internet of Things

Two seemingly contradictory trends in consumer behavior

Digital traces and why customers leave their data

Digital body language

Information constituting the digital body language

Building models: customers’ shopping journeys and buyer persona

The superiority of consumer behavior analysis over other ways of acquiring knowledge

3. New marketer

Inbound vs. outbound

Romantic and pragmatic

Scientific approach

HADI cycles, i.e. lessons from a strip club

Changing the concept of a campaign

Predictive marketing

Disproportion between theory and practice

Why can’t marketers cooperate with sellers (and why they should)?

4. New seller

Who trusts sellers?

Mixer and a time machine

Atlassian and other B2B absurdities

Tesla Motors – say goodbye to your car dealer

Adjusting to context

Part II
MARKETING AUTOMATION AND BIG DATA REDEFINE THE MARKETING YOU KNOW

1. Traditional 4P

2. Guidance for people choosing their marketing automation platform

3. Lead leaking

4. The role of education in the shopping process

5. Content marketing with marketing automation

Ideal content marketing supported by automation

The symptoms of the lack of balance between the production of content and automation

How to connect content marketing with marketing automation?

6. New approach towards e-mail marketing

The power of e-mail marketing – a lesson from Barack Obama

What did Jacob Payne know? – About communication fatigue

This does not concern me!

Stop associating e-mail marketing with newsletters, or wear your customer to death

Personalized e-mails

1-to-1 messages

7. Loyalty programs

New and existing customers

Become the director of the Loyalty Dept.

What is loyalty, and can customers be loyal?

Customer lifetime value: think about your customer in terms of the entire relation, not in terms of separate transactions

RFM

The concept of loyalty

8. Mobile channel

Apps as a marketing tool

Mobile marketing automation

Part III
PRACTICAL RECOMMENDATIONS

1. Creating a buyer persona

What is a persona?

The application of personas

Building a persona: initial remarks

Questions regarding building a buyer persona for B2B

Questions regarding building a buyer persona for B2C

Where to acquire information from?

Important rules

2. Contact monitoring and management via CRM

Collecting user data

Scoring

3. Lead acquisition

Contact forms that actually work

Your customer Pinocchio: progressive profiling vs. incorrect data in forms

How long should the form be?

Lead acquisition through gated content or bonuses

4. E-mail marketing

Hygiene of your database

Regular database clean ups

Customer segmentation

Autoresponders and dynamic messages

Welcoming messages

Increasing basket value

E-mails increasing the level of engagement

Birthday e-mails

Reactivation e-mails

E-mails to save abandoned shopping baskets in e-commerce

5. Lead nurturing

Before you prepare a “lead nurturing” program

Stages of lead nurturing

Multichannel campaigns

Themed campaigns addressed to existing customers

Lead recycling

Lead nurturing for employees

Benefits of lead nurturing and how to measure them

6. Website marketing

The increasing role of recommendation engines

7. Personalizing your WWW site

Examples: dynamic sets and widgets with recommended offer

8. Sales

Cold calling

Identifying shopping readiness

Alerts in marketing automation

The meaning of social media for sales

9. Retention

Actions addressed to loyal customers

Loyalty programs with the use of marketing automation

The use of mobile channels in loyalty programs

Marketing automation as a form of support for customer service

10. Social Media

Pros and cons of social media in business

The whole Facebook is the same

Ground rule: no social media platform can serve as your primary communication tool

Setting goals: integration with marketing automation

Social media automation

Ad personalization on Facebook with the use of custom audiences and marketing automation platform

Engage your employees

11. Mobile

Push notifications

Mobile CRM and notification personalization

Don’t forget text messaging!

M-commerce

Online addressing – offline gap: the ROPO effect

12. Marketing analytics

KPI

Trends in analytical activities: the directions of development

A/B testing

13. Guidance for people choosing their marketing automation platform

Marketing automation myths

When marketing automation should be deployed?

How to choose a marketing automation platform?

How to use a marketing automation platform?

Marketing automation solutions for B2B

Marketing automation solutions for B2C and e-commerce

Summary

Bibliography

Footnotes

Cover

Title Page

Copyright Page

Contents

Part I. New terms

3. New marketer

Romantic and pragmatic

Scientific approach

Part III. Practical recommendations

12. Marketing analytics

13. Guidance for people choosing their marketing automation platform

Marketing automation myths

Part I
New terms

3
New marketer

Chart 2. Inbound marketing vs. outbound marketing

Inbound

Outbound

Contents: blogs, podcasts, e-books, reports, video, quizzes, educational games, edutainment, native advertising

Press, television and radio advertising; banners, pop-ups, recommendation engines, push notifications in mobile apps, telemarketing

Ads are displayed when the user is looking for them (e.g. enters a query in a search engine)

Ads are disturbing; appear not while users are looking for a product, but when they’re busy doing other things

The content of the ad is tailored to customer’s needs

Ad is considered an intruder. Banner blindness, skipping the contents of ads in press or television

Interactions with the user: social media, building engagement

Unilateral relation: marketer as an addresser

Prosumers: do a reconnaissance, look for information

Lazy customers: expect the work to be done for them; appreciate comfort, optimize

Rational customers: perfectly aware of what they want, and they just need to find it; prepare for purchases, do not trust salespersons

Impulsive customers: vulnerable to suggestions, purchasing on the spur of the moment

Brand follows customer

Brand overtakes customer: ad messages stay ahead of needs; marketer’s knowledge of customer’s needs exceeds customer’s knowledge

The recipient is tempted and attracted by an appealing offer (e.g. a free e-book) → pull methods

The customer is pushed towards the purchase → push methods

Long-term goals, long-lasting relationship with the customer, educating the customer

Short-term goals: sales at a particular moment

Source: own study.

I want to show you in this book that this is not the right way, and that marketers should combine both these strategies and look for the key to success not in isolated techniques, but rather in multidimensional personalization. Banners, pop-ups, push notifications, i.e. techniques of the criticized outbound method, can be adjusted to recipient’s needs, useful and friendly − providing that they are based on reliable data. In the next part of the book, I’ll describe in details how to do it.

Don’t be tricked by thousands of marketing labels, buzzwords, and trends. Use a wide variety of techniques and strategies, with a single objective in mind: to satisfy the needs of your customers.

Romantic and pragmatic

“Satisfying customers’ needs” – sounds like a cliché, right? On the one hand, satisfying needs is the foundation of the majority of definitions of marketing, and it can be found in any handbook. On the other hand, it seems a rather vague term. What exactly does it mean? How to identify and verify these needs? Over the years, marketers have been following their intuition, feeling, and empathy. Today, they don’t have to speculate anymore – they can examine and measure the needs using tools that have never been so precise. Rafał K. Ohme[44] suggests making a distinction between romantic and pragmatic ads to confront the two models:

Chart 3. Romantic and pragmatic advertisement

Dimensions

Romantic ads

Pragmatic ads

Goal

Image

Sales

Hero

Ad

Product and brand

Creators

Artists

Craftsmen

Source: own study.

For years, advertising and marketing have been perceived as romantic, purely creative disciplines. When you’re thinking about “advertising”, you’re probably visualizing Don Draper coming up with yet another brilliant phrase between a drum of whisky and a date, just because he gets creative. Or Leo Burnett and his Marlboro Man, based not on analyzing customer behavior, charts, surveys, and algorithms, but rather being a result of creative intuition. In this model, the marketer like a bard comes up with a campaign, a phrase, or an action, aimed at hard-to-measure goals, such as “building an image” or “increasing brand awareness”. Afterwards, they wonder if the activity was successful, and if yes – how to repeat this.

Scientific approach

In the 13th century, a rather eccentric Franciscan opposed speculation as a way of settling philosophical problems, and suggested using experiments and mathematics instead. He also claimed that to be able to conduct research, people need more advanced instruments: he managed to build some of them, while others – like trains or submarines – were to be invented in the future. Roger Bacon, an unruly misanthropist, claimed that effects only come from actions that are based on science – otherwise, positive results of any activity are nothing but accident, and it is impossible to repeat them.

Part III
Practical recommendations

12
Marketing analytics

Hypothesis

Because this is a typically scientific approach, you need to form a hypothesis. Rule of thumb is to test a single variable at a given time: otherwise, you don’t know what determined the result, so your initial hypothesis should only refer to a single value.

A hypothesis should look more or less like this: If I change… from… to…, I’ll get… (e.g. if I change the color of the button from red to yellow, I’ll get higher conversion rate).

Our hypothesis includes:

the element under test;

a suggestion of change;

anticipated result of the change.

Also, remember that your reference group should be of appropriate size – otherwise, you’ll end up with unreliable results. Furthermore, you need to know what criterion you will use to verify the result. Armed with a hypothesis and clear success indicators, you can begin.

What can be tested?

You can test virtually any aspect of your business, marketing, appearance, site layout, payment system, etc. Test e-mails (subjects, frequency and schedule of sending them, colors, templates, buttons, etc.), contact forms, landing pages, dynamic pages. It also applies to your knowledge about your customers.

Netflix experiments with everything, including things it theoretically knows from user reviews, which shows an interesting inconsistency in customers’ actions and declarations. For instance, a lot of visitors reported the same issue: they were irritated that they couldn’t see Netflix’s resources as unregistered users. It makes sense: people want to see the potential benefits from registering prior to providing their contact data. Despite having serious reasons for introducing such change, Netflix decided to verify it first.

A hypothesis was formulated: if users will be able to view the contents of the portal without signing up, the number of registered users will grow.

Next, five versions of the page with different levels of searchability were prepared, and each of them provided more information on Netflix’s resources compared to the original page. The outcome? Despite user declarations, the original version with the fewest amount of contents visible prior to signing up gave the best results (i.e. the highest number of new registrations).

13
Guidance for people choosing their marketing automation platform

Marketing automation myths

Implementing automation comes with a lot of changes for companies: gaining new competencies, mastering new tools, adjusting daily schedules – you have to forget old habits and confront new challenges. Many marketers are afraid of this moment, so they hide behind arguments like “I don’t really need Big Data”, or “It’s not for me”. There are numerous myths about marketing automation, and the majority of them share a common origin – the fear of the unknown. I want to bust the myths.

Marketing automation is expensive. The majority of marketing automation platforms work in the SaaS (software as a service) model, where you don’t have a one-off payment for the platform, but instead pay a monthly fee (which means you can quit at any time when you decide that the results do not satisfy you), so the risk is fairly low. Furthermore, the fee depends on the number of contacts in your database. If you have a small group of recipients, you’ll pay less, and when it starts to grow (along with your profits), the fee will increase as well.

Automation means complicated tools for large companies. On such an extensive market of marketing technologies, marketers can choose from simple or more complex systems, solutions for B2B or B2C, and platforms designed for small or large companies. Many of those can also be adjusted to your needs: you can select a basic version or add optional modules. Automation looks a bit different in small companies: with small marketing departments, the platform saves a lot of work by automating repeatable operations – for instance, marketers don’t have to build all the creations themselves, as the system can do that for them and send the creations to individual users. They also have easier access to efficiency analyses of particular activities, which means they can optimize them by focusing on the most profitable channels. The platform helps marketers in small and medium companies in organizing and streamlining their work, and automates tasks that until now have been completed manually. Simultaneously, it improves communication from a customer’s perspective: