Week 8

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Week 8

• Promoting Our Web Site

2
Promoting Your Web Site

• General Web promotion options
• Evaluate search engines as web site promotion
• Review search engine use and value as promotion
  option
• Evaluate banner advertising as a way to promote
  the web site
• Discuss banner advertising pros and cons
• Affiliate Marketing

3
Web site promotion
Banners
Affiliates
Links
Partners
Community
Search Engines
Email
Promotional Materials
Printed Materials
Print Advertising
PR
Broadcast
4
Online Advertising
5
Internet Advertising

• Internet advertising revenues in the United
  States totaled nearly 3.3 billion for the first
  six months of 2003,with Q1 accounting for 1.63
  billion and Q2 totaling 1.66 billion. Internet
  advertising revenues for the first six months of
  2003 increased 10.5 percent from the same period
  in 2002.

6
Performance-based Advertising Continues Sharp
Growth

• Keyword search (analogous to paid search)
  revenue increased significantly from 9 percent of
  2002 second-quarter revenues to 31 percent of
  2003 second-quarter revenues.

7

• Keyword Search Rises Sharply as Display
  Advertising Continues to Decline Display
  advertising (replaces Ad Banners) accounted for
  22 percent of total revenues during the second
  quarter of 2003, down from the 32 percent
  reported in the second quarter of 2002.
• Keyword search (analogous to paid search)
  revenues continue to increase sharply, accounting
  for 31 percent of 2003 second-quarter revenues,
  up from 9 percent reported the same period in
  2002.

8
Banners

• Simple Banners
• Animated Banners
• Streaming Banners
• Streaming Audio Banners
• Pop-Ups
• Interstitials

9
Banners

• Arent they dead?
• Banners still make up the majority of online ad
  spending
• CTR are lower than low in most consumer
  categories.
• Audience reach often improves regardless of
  whether the banner was clicked or not.

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CPs

• Cost per Click (CPC)
• of times your banner is clicked on
• Cost per Sale (CPS or CPT)
• Usually paid as a percentage of a sales(excluding
  tax and shipping)
• Cost per Action
• Set fee based on the number of times a game was
  played, software downloaded etc.

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Impressions

• Impressions The number of times an ad is
  delivered. When an advertiser buys advertising on
  a CPM basis, the advertiser is paying for every
  1,000 impressions that the site can deliver.
  Different sites measure an impression
  differently. Some sites count an impression when
  an ad is requested, others only when an ad is
  fully downloaded

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Interstitial

• Interstitial An advertisement that interrupts
  the user. This can be a full page ad that pops up
  on the user's screen or a pop-up window.

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Hits

• Hit A line that is recorded in a log file when
  something is requested of a web server. For
  example, if someone goes to a web page that has
  five graphics, six hits will be recorded in the
  log file one hit for the HTML page and one for
  each of the graphics. Hits are considered an
  inaccurate way to measure traffic and are no
  longer used by savy advertisers

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Exposures

• Exposures The number of times that an
  advertisement is viewed. Used interchangeably
  with impressions.

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CPM

• CPM CPM is the cost per thousand for a
  particular site. A web site that charges 15,000
  per banner and guarantees 600,000 impressions has
  a CPM of 25 (15,000 divided by 600). (The "M"
  stands for the Latin mille, meaning "one
  thousand.")

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CTR

• Click-through rate (CTR) The percentage of times
  the ad is clicked on divided by the total number
  of times an ad is viewed.

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Before you buy

• What are your goals
• Generate Inquiries
• Generate Sales
• Branding and Awareness
• Driving Traffic
• Research/Surveying

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Before you buy

• Do a through analysis of Inventory and your
  campaign.
• Which pages will you be on?
• When?
• What is your budget? How does this ad fit in?
• Who else will be advertising at the same time?
• How are you supporting this online? Radio, TV,
  paper?
• Who is serving your ad?
• How will you be tracking the results?

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Plan and Contract

• Plan what you are going to test
• Make sure you have a good contract.
• Outline dates and times
• Costs

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How to Choose

• Referring URLs
• Personal experience
• Good Fit
• Editorial relevance
• Right Market
• Amazing deal
• Because you want to do it.

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Banner Tips

• Someone famous said Nobody reads ads. People
  read what interests them. Sometimes it is an ad
• People dont click on great copy and design
• They click on something that interests them

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Banner Tips

• Make sure that you drive the traffic from the
  banner directly to the page
• Carefully plan the alt text for each banner as
  well as the text underneath the banner

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Banner Tips

• Develop a campaign not a unit (15 days)
• Using questions can raise CTR by about 15
• Free works best
• Free Information, free white paper, free whatever
• Thank you page banners tend to work best.

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Banner Tips

• Use 25 of the space for your logo
• Phrases such as click here Now improve
  response

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Banner Tips

• Negotiating
• Tell them what you want to paythey will get to
  it
• Remember that the 80 of space goes unsold

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Banner Tips

• Best times to negotiate
• Timing
• End of Month
• End of quarter
• End of year
• Great deals when you purchase space for an entire
  year (this should be your best buy)
• USA Today.com great site to consider

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• If we are going to sell sport outfits
• We should pay a premium to advertise on a web
  site devoted to sports
• Is this the right way?

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Test

• Testing is Critical
• You should test the following
• Creative
• Offer
• Ad Units
• Sites
• Reach vs. composition
• Targeted content v.s. targeted demographics
• There should be about 20000 impressions behind
  each test cell.

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Ad Networks

• Ad networks offer one stop ad shopping
• Great for testing
• Save time
• Expertise
• Service
• Carry premium properties

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Web Advertising Networks

• Offer single point of access to advertisers that
  want to reach millions of consumers quickly and
  easily.
• They acquire impressions given to them by their
  web site affiliates and sell the aggravated
  inventory.
• This process simplifies the acts of buying and
  selling for both the advertiser and the web
  publisher.

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Zero Based Media Buying

• Testing using RON (Run of Networks)
• Do, no targeting at all.
• Just throw ads out there and see where you get
  responses.
• Within a few days you can figure out where your
  responses are coming from.
• Group your responses by category (sport,
  business, entertainment or people who respond to
  ads about my product.
• You can not do that with any other media

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Ad Networks

• He (Flycast President) recommends to his clients
  that begin with advertising on all Flycast sites
  ( close to a thousand) for a week and compare the
  response rates.
• http//www.tribalfusion.com/www/about/vision.html

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CASIO
It ran a banner ad for a digital camera. The
best category for Casio digital camera ads is
travel. This test can be conducted in a
week sites aimed women, games and sports are
definitely not winners for the product. Would
anyone guessed this without the test? In a week?
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Internet Advertising Bureau

• IAB.net
• Are the new banner sizes successful?
• http//www.iab.net/iab_banner_standards/bannersour
  ce.html

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Next-Generation Banners Rich MediaInteractive/Ani
mated Banners

• Features-
• In-the-banner interactivity
• Deliver live content such as news, daily messages
• Rich media contains for any bandwidths without
  plug-ins such as streaming audio, animations,
  quizes, and games
• Effectiveness-
• Increases (CTR) click-through-ratio
• Improves brand recognition
• http//www.freestyleinteractive.com
• http//www.freestyleinteractive.com/clients/ifuse/
  

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Enliven and Types of Banner Ads

• Enliven.com
• http//www.enliven.com/campaigns/recent_campaigns.
  htm
• Please select from ad goal and see how banners
  change according to your marketing goal.

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Banner ad presentation methods

• A. Pay per Click - Pay a web site every time
  someone clicks on your banner.
• B. Pay per Lead - Pay a web site every time
  someone signs up for a service or free
  subscription (Sales leads)
• C. Pay per Sale - Pay a web site every time
  someone actually buys the product or service.
• D. Pay to View - Pay a web site to show your ad
  by category or randomly.
• E. Banner Exchange - Display banner/button on
  your site in exchange for displays on others

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Where should you place your banner ads?

• In traditional advertising you use media expert.
• Study demographics
• Figures out which media they pay attention to.
• Places ads based on careful targeting and cost.
• Media targeting has been a science for 30 years
• Should we (modern marketers) use the same
  techniques for the web?

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4 Steps in making a purchase

• Impression The customer clicks on a web site
  that has banners displayed.
• 5 to 40 per thousand impressions
• ResponseThe person clicks on a banner in the web
  site, which transports the clicker to your web
  site
• Lead The prospect views your offering and fills
  out a form
• Sale The clicker buys the product

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Objectives in Web Advertising

• There are two objectives in web advertising
• Image advertisers are trying to create an image
  in the mind of the viewer.
• Response advertisers are trying to get the viewer
  to respond.

Year ImageAwareness Response
1 80 20
2 60 40
3 40 60
Creative should always mirror the program
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How web advertising differs

• On the web you can change your message every hour
  every day
• Expose one customer to many different approaches.
• Rich media ads utilizing high involvement and
  interactive formats, hold the promise of
  increasing the impact and overall effectiveness
  of web advertising.
• You get immediate feedback on what is working and
  what is not.

42
Ad Performance Evaluation

• Yahoo Spreadsheet.
• Please take a look at those sheets.
• We will discuss the dynamics during our Monday
  chat
• I am using these worksheets with permission from
  BMG Direct.

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Affiliates

• Partners help drive revenues

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Affiliate Marketing

• Affiliate marketing may be the fastest-growing
  form of online marketing today. Driving about 13
  of the current online sales market, it's forecast
  to reach 21 by 2003, according to a report by
  Forrester Research Inc.
• Behind that growth is affiliate marketing's
  ability to leverage the power of the Web and
  direct customers to partners on a
  pay-for-performance basis, said Robert Levitan,
  CEO of Flooz.com, New York, an online gift
  currency provider with an extensive affiliate
  network.

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Vocabulary

• Affiliate An individual who contracts with a
  merchant in order to help sell that merchants
  product.
• Merchant An individual or business who has a
  product and, in this case, uses affiliate
  programs to sell this product.

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What type of merchandise can I sellthrough
affiliate marketing?

• The product may be anything someone
• will pay for
• Tangible (such as clothing),
• Virtual (such as electronic books or
• Downloadable software), or
• Information (such as expert advice).

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Where do I get the merchandise?Where do I store
it?

• In most cases, the merchant handles
• the merchandise,
• actual purchase,
• packaging, and
• shipping,
• so you usually never see the actual merchandise.

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What are my responsibilities as anaffiliate?

• 1. Represent a product or service
• Represent the merchants product or service on
  your site through the use of links.
• These links may take the form of
• a banner,
• a text link,
• a search box, or even
• a JAVA applet.

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What are my responsibilities as anaffiliate?

• 2. Drive traffic (get visitors) to your site.
• Establish a steady flow of targeted traffic to
  your site in order to increase your potential to
  earn commissions. Different merchants specify
  what constitutes an action worthy of
  compensation, and these can range from a
• Customer just seeing the ad
• Actually purchasing the product.
• How much you get paid will also differ from
  merchant to merchant.

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What are my responsibilities as anaffiliate?

• 3. Read the contract
• Information should be stated clearly in a
  contract. It is your responsibility to read the
  contract, even if it is
• long,
• or
• boring.

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What are my responsibilities as anaffiliate?

• 4. Monitor your site and links.
• You must check your site and links regularly to
• make sure everything works properly.

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What are my responsibilities as anaffiliate?

• 5. Monitor your statistics.
• The merchant should provide you with statistics.
• You need to monitor your statistics to make sure
  you are being credited properly.
• Your statistics reflect the success of your
  merchandising plan and allow you to tweak your
  selling process to increase your profit.

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How Do I Choose a Merchant?

• Stand-Alone Affiliate Program (independent)
• An affiliate program run "in house" by a
  particular merchant. This merchant handles the
  contracting, sale, record keeping, and payment
  process.
• Solution Provider
• A company, such as Commission Junction or BeFree,
  that assists merchants in the affiliate marketing
  process.
• Usually, the solution provider acts as an
  intermediary between the merchant and affiliate,
  and handles most business matters such as
  regulating contracts and cutting checks.

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Reasons to use a stand-alone affiliateprogram

• 1. Access to unique items.
• Artists and craftspeople frequently cannot
  generate the volume of product to support a
  large affiliate program. However, these merchants
  can benefit from highly targeted affiliate sales
  made by a select group of affiliates.
• If you have a site dedicated to Shaker
  craftsmanship, for example, and want to sell
  hand-made Shaker-style chairs, then you should
  consider finding a quality artisan with a highly
  selective group of affiliates.

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Reasons to use a stand-alone affiliateprogram

• 2. Access to non-traditional items.
• Some items, while mass-produced, do not always
  appeal to the majority of Web surfers.
• However, if your highly targeted niche site
  focuses on a sub-culture, such as role playing
  gamers, then you should work with a merchant who
  caters to this community.

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Reasons to use a stand-alone affiliateprogram

• 3. Ability to work more closely with a merchant.
• Independent merchants, especially those with
• highly selective affiliate programs, work with
• fewer affiliates, and are therefore often more
• accessible than the large solution providers.

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Customer Relationship Management
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CRM Framework
Source Andersen Consulting
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Customer Relationship Management
Technology
Marketing
Direct, Interactive Dialog, Real time
Warehousing Online data store User tools
Analytics
Business Customer Financial
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(No Transcript)
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CRM working definition

• CRM is the
• Systematic use of information
• To attract and keep customers
• Through on-going dialogue
• To build long lasting mutually beneficial
  relationships

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Systematic Use of Information

• Database of customer information
• The customer is the base level of data for
  storage,reporting,analysis and measurement
• Analysis of customer data to predict likely
  future behavior
• Modeling uses past behavior to predict future
  behavior and identifies other predictors as well.
  
• Identifying and evaluating each relationship
• CR are identified, evaluated reevaluated and
  continually managed according to current
  information

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To attract and keep customers

• Cost efficient customer acquisition
• Profiles used to select likely new customers and
  offers for specific customer segments
• Retention efforts focused on most profitable and
  at risk customers
• Continuous process of solidifying relationship
  with profitable customers, converting less
  profitable customers to more profitable and
  attempting to convert at risk customers before
  they are lost.
• Shared information across channels for consistent
  communications
• Customer receives consistent offers, service and
  messages across sales and service channels

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With or Without

• Without CRM
• Customer re-enters information about music
  preferences every time at log-in
• Customer re-identifies CI every time at CS
• Call center and stores have different pricing
  from web site
• Customer must return defective CD through the
  delivery channel-cannot switch between electronic
  channels and stores.

• CRM in practice
• Customer logs onto the Internet and finds
  information on favorite music group,
  advertisements featuring specials on new CDs and
  dates with ticket offers to next concerts in
  local area, plus emails telling them about new
  groups with a similar style or from the same
  record company.
• Customer reads about CDs on the Internet, orders
  through the CS,exchanges at a local record store
  if CD is defective.

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Through on-going dialogue

• Continuous interaction with customers based on
  analysis
• Interactions,offers and messages are
  planned,personalized and delivered according to
  analytic insights
• Real time response on the Internet
• Immediate changes in advertising, information,
  recommendations, product features and even
  pricing based on web or email behavior
• Listening to create a sense of intimacy with the
  customer
• 11 dialogue through appropriate responses
  delivered real time

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Web Telephony Integration
67
Email Integration Capability
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To build long-lasting mutually beneficial
relationships

• Success measured in customers and customer value
• Goals, results even incentives measured in terms
  of customers and customer value,not transactions
• Continual reevaluation of customer relationships
• On-going measurement to identify profitable, at
  risk and underserved customers
• Continual learning about customer needs
• Satisfied customers make good business sense

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Customer Strategy should be defined and driven by
Customer needs
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At its simplest

• CRM refers to the use of information about a
  customer to make decisions about how to treat the
  customer.

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The Learning Loop
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At it is most complex CRM comprises an
interconnected web of sophisticated, high tech
hardware software, strategies and processes
designed to help business quickly, efficiently
and voluminously determine how to treat each
customer in order to create a valued experience
for both the business and the customer.
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Sales Force Automation
Analytics
Operations
Distribution Partner
Campaign Management
Call behavior analysis
Customer Valuation
Monitoring
Integrated Customer View
Quality of Service Analysis
Segmentation And profiling
Customer Service
Risk Analysis
Behavioral Modeling
Profitability analysis
Web Intelligence
Needs analysis
Sales analysis
Call Center
E-commerce Web
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A data warehouse builds a strong foundation for
CRM infrastructure
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What Customers Want

• Treat me as an individual (not a number)
• Demonstrate that you can use information about
  me in a way that makes working with you valuable
• ( dont abuse my information)
• Show me that you really know me no matter
  where I talk to you.
• Care about my needs/try to anticipate them.

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Creating the CRM organization
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Buzzword Alert

• Politics
• The result of opposing business priorities across
  different units that compete for a finite pool of
  resources
• Change Management
• Guiding an organization and its members through
  significant alterations in organizational
  direction and individual responsibilities as
  quickly and effectively possible
• Organizational design
• Managing human systems and hierarchies, with
  supporting technical and process infrastructure,
  in order to most effectively deliver on the
  mission of the enterprise

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Organizing around the Customer

• Who thinks about the customer?
• Who advocates the customer?
• Who doesnt think about the customer?

Competing Distribution
Competing Products
Competing Sales Territories
Competing Channels
Competing Business Units
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Organizing around the Customer

• Everyone in an organization needs to think about
  the customer. To achieve this, an organization
  must encourage change by providing the tools to
  make the changes steadily and surely

Changing how an organization thinks Customer centric metrics
Changing organizational processes Pilots,business rules and business case
Changing organizational structure Evolutionary not revolutionary
Changing culture Short term and long term success
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Customer Centric Metrics
Volume Metrics
Customer Centric Metrics

• Call Duration
• Encourages TSRs to make calls as short as
  possible, keep costs low
• Creates dissatisfaction

• Customer Retention
• Encourages TSRs to satisfy customers
• Creates loyalty

• Sales Volume
• Encourages cannibalization
• Encourages short term product pushes instead of
  long term CR

• Customer Value Impact
• Increases customer value following interaction
• Includes additional information gathered which is
  useful for future campaigns

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Evolutionary Not Revolutionary

• Why not just reorganize everyone from Marketing,
  IT and other teams contributing resources to the
  CRM effort?
• Why the evolutionary small step approach?
• Why not revolution?
• Power may continue to reside in areas without the
  data, without the metrics or even without the C
• Focus on bureaucratic issues detracts from C focus

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Why Not Revolution

• Gives time to build infrastructure for
• Centralized data
• Tools that make data easy to access
• Skilled analysts who can mine the data
• Metrics that validate C centric programs
• Training to bring staff up to speed
• Setting senior management expectations and
  educating them
• Winning kudos for early successes
• Creating external enthusiasm rather than
  resistance.

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Changing Structure

• To maintain the momentum of a CRM initiative
• Continually demonstrate value to all stakeholders
• Create a hunger among senior managers for
  customer centric and customer value information
• Use input from anyone thinking about the
  customer.

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E-channels

• E-channels both complicate and simplify CRM
  execution

Complicate
Simplify

• - Loyalty
• - Information
• - Real time
• - Cost saving
• - Interactive
• - Profit driver
• - Convenience
• - Customer tracking
• - Services
• - Transaction/sales tracking

- Stability - Maintenance - Real time -
Personalization - Collaborative filtering -
Branding - E-strategy - Competing channels -
Privacy - Security
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Are we there yet?

• You know you have a CRM culture when
• Everyone in the organization thinks about the C
• Everyone in the organization listens to the
  customer
• Reliable service is delivered to C consistently
  across all channels
• Success is measured in terms of C relationships (
  Value, duration, acquisition )

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Where Are You on the Road to CRM?
Short term goals
Long term goals

• Think like a customer
• Be a customer
• Build infrastructure to centralize data
• Analyze customer data
• Determine C centric program goals and strategies
• Educate senior management and set expectations
• Identify bottlenecks
• Have owners over customers
• Have centralized customer centric business rules

• Listen to the customer
• Track C behavior across all channels
• Show consistent reliable service across all
  channels
• Assign value to each customer
• Create loyalty programs
• Have established C centric incentives

Organizations Transitioning to CRM culture

• Think like a C
• Listen to the C
• Provide consistent reliable service across all
  channels
• Track C behavior across all channels
• Assign value to each C relationship
• Create loyalty programs
• Reduce bottlenecks
• Have owners over customers

• Real-time personalized dialogue with customers
• Anticipate customer needs
• Measure success of each relationship
• Share C information with all areas of the
  enterprise
• Build and maintain long term profitable
  relationships with C

Organizations With existing CRM culture
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Summary

• Organizational change is an evolutionary process,
  not a revolution.
• Choose the parts of the organization that can be
  changed to focus on first.
• Implementing CRM program also means changing
  thinking, processes, structure and engraining a
  customer centric culture in an organization.
• Depending on where your organization stands,
  there are short and long term steps to take to
  transition to a CRM company.

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Long Term Planning

• Develop a two year plan for making your company
  more customer centric.
• Include measurable deliverables every three to
  six months.
• Change from product centric to customer centric
  metrics.
• Create cross functional teams to develop and
  manage customer strategy.
• Implement tools that allow people from all areas
  to access the same CI.

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Obstacles

• Getting participation from all areas
• Technical problems centralizing data in a data
  warehouse
• Inter-unit conflict (Marketing-IT)
• Managing anxiety and resistance in an environment
  change
• Focusing resources on new developments and
  existing responsibilities.

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Web Rings

• Benefits
• Free
• Most rings have free traffic reports
• Quick and easy to use
• Avoid duplication (Each site is listed once)
• Often more accurate than search engines
• Examples
• www.webring.org
• Looplink.com
• GO TO GOOGLE AND TYPE WEB RING

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Cool Sites

• They are definitely worth submitting to as they
  get lots of traffic and exposure
• www.cool.com
• www.coolsiteoftheday.com
• Yahoo.com/picks

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Award Sites

• Examples
• www.100hot.com
• www.webbyawards.com
• www.searchenginewatch.com
• 1 authority on search engines.

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Web Rings

• Web rings link sites with similar content
  together.
• There are a couple of dozen major categories and
  thousands of subcategories.
• Rings are generally started and maintained by one
  person.

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Web Rings

• Rings must obtain a minimum of 5 sites
• The average ring has anywhere from 10 200 sites.
  There are about 100000 rings in existence.
• They are free of charge to both visitors and
  members.
• Seem to be working well.