CHAPTER 4- ENTERPRISE MARKETING AUTOMATION

Introduction-

There are two types of marketing-

Interruption marketing
Permission marketing
Pop-ups which arrive at your screen when the internet connection is established are good
examples of interruption marketing. In the beginning, when the concept of internet was
new, less number of users were using it, and even the number of products to be advertised
was also less, this idea worked well. But now in this hi-tech world, one has to stick
internet for so many jobs that these pop-ups are rather boring, especially when you are
performing very important activity on the net. Thus in this era, interruption marketing is
not a very good method to be adapted. The second type of marketing approach is
permission marketing. It asks your permission to speak with you about the product and at
the same time, provides consideration for your exit; every step on the way. Mr. Goddin
identifies this as ‘dating your customers’ and defines this as a five-step process-
• Offer the prospect an incentive to voluntarily receive your mail or other
marketing media.
• Using attention offered by the product, offer a curriculum over time, teaching
customers about your product or service.
• Reinforce the incentive to guarantee tat the prospect maintains the permission.
• Offer additional incentives to get even more permission.
• Over a time, leverage the permission to change consumer behavior towards
profit. This is a very pure and simple way of dealing with the customers. By the
end of initial cycle, the prospective customer, having been through the five steps,
will know your product, your company and you.
Now he or she will be in a position of becoming the actual customer who will remain
loyal to you. Because you didn’t try to go ‘all the way’ within the first five minutes of
date.

Enterprise Marketing Automation-

• It enhances this courtship trough mixture of e-mail, fax, web, telephone and other
technology tools.
• Intensifies technicians for prospective customers.
• When personalized or segmented, customer preferences are determined by use of
analytic tools. These tools define customer segments that are appropriate to the
business and can help to evaluate the success and the failure of e-marketing
campaigns in real time so that significant adjustments to incentives and directions
can be made quickly. All the trials and tribulations of this courtship are monitored
and adjusted continuously. Thus EMA is a type of permission marketing though it
is not purely devoted to you.
EMA is a technology of end-to-end marketing. Its core component is campaign
management. The e-component of campaign management is the provision of a single
view of the customer, which are all available with a browser. Most e-marketing toolsets
are focused on a product that provide following-
 • Customer intelligence
• Extraction and analysis of intelligence
• Campaign definition and planning based on data analysis
• Campaign launch
• Campaign monitoring tools that handle lead generation
• Response management
• Workflow, so that there is uniform customer view across enterprise.
When used in real time environment of EMA and response management, refinements are
related to individual customer rather that ad hoc response analysis of service bureaus.
Marketing campaigns-

Opt-in and Opt-out method of marketing-

Opting-in means that for personal interaction or consideration, you allow the company
you are interacting with to send a solicitation that they expect you to take interest in.
Rather than just another e-mail address, you have become a potential customer for them
with real existence.
Opt-in e-marketing has two functions; that is intelligence and engagement. The first stage
[even prior to clicking in a checkbox] is collecting information about the customer. This
information is stored along with customer’s website activity which is monitored as he
walks his way through the site after the form is filled up at the point that the customer has
checked or unchecked the checkboxes.
Opt-in is often contrasted to opt-out option as more favorable choice. In opt-out
variation, the checkboxes are already checked and the customer has to uncheck it. Thus
for the customer, it is just deleting the checkbox; but from company point of view, the
customer is prohibiting them form using his e-mail ID for sending their services; i.e. the
company is loosing one potential customer which is not a very good piece of marketing.
Hence, most companies prefer to have opt-in options.

Campaign management-
E-marketing’s great strength is campaign management. This is the creation of
personalized marketing efforts that not only engage customer or prospect but also engage
entire enterprise in effort and provide single view of activity to any department or
segment of the company. The campaign management features of technology are end to
end. They plan and monitor all activities including-
a. Identification of prospect
b. Generation of lead
c. Prospect and customer information captured
d. Lead qualifications
e. Distribution of leads to appropriate segments
f. Campaign planning
g. Campaign execution [e.g. promotion, planning, event etc.]
h. Response management
i. Refinement
j. Channel management [joint marketing campaigns]
EMA campaign methods don’t seem very different from traditional marketing methods.
The difference is internet. EMA use Internet to capture, extract and analyze information
about each customer and each market segment. It then gives the company the design tools
to plan, monitor and refine its marketing campaigns to the level of individual within
market segment. EMA tools also provide consistent, continuous representation of a value
proposition across multiple channels. The field, the call center, the web and internal
departments all see a single view of the customer due to tight interaction between front
office and back office. EMA workflow allows all parties to see exactly what they are
permitted to see in all marketing campaigns as they evolve. No one is left out of the loop
and thus mistakes can be minimized.
Diagram-

Case study for EMA-

United Airlines sent Mr. Greenberg a mail that began with the following-
‘Dear Mr. Greenberg,
During the past year, you purchased and flew our expanded united service departing
form Dulles airport and we appreciate your business. To thank you, we would like to give
you an opportunity to earn free travel and save on Untied Airlines. Earn double miles and
save 15% on United. For more offers visit our website’.

This seems very simple and short; not too much information. Not much until one
realizes that United Airlines has millions of customers and the mail was specific to Mr.
Greenberg based on his flying habits. To send him this mail, United Airlines had to
determine the following-
a. He was a customer.
b. He has flown on United Airlines within the last year.
c. He was a ‘mileage plus’ customer.
d. He flew frequently enough.
e. He flew from Washington D.C.’s Dulles airport.
This was sorted and extracted from 10s of thousands of customers flying form multiple
airports in United States daily. One that information was determined, they-
a. Identified Mr. Greenberg with a particular promotion that they thought
good appeal to him.
b. Decided an engagement media that United thought would capture his
attention.
c. Using opt-in methods, they then stated to receive additional offers “ join
the mileage plus email by going to –http;//www.email.mileageplus.com”
This was opting-I permission in the United Airlines-Paul
Greenberg courtship to go from direct mail first base to e-mail list
second base in exchange of some consideration such as 15% off
and double miles.

EMA tools-
EMA tools are distinguished from traditional marketing tools by their ability to capture,
extract and analyze customer information form multiple and often platform independent
sources and relative the results through the web. This can man e-mail, web, direct mail,
fax, voice mail etc. good analytic software can’t only reduce the cost, of customer
acquisition via targeted and segmented results but can also identify these customers who
are potentially going to take their business to your competitors. These tools have to be
scalable. They also have to be rich so they can provide measurement and customization
of matrix to get these measurements. They have to be clear and distinct with reporting
tools that provide you with information. They also have to be fast since they are dealing
with millions of transactions from multiple resources. The tools interpret in-depth profiles
of customers who are accessing websites responding to mails, answering direct mail
campaigns and accessing what is called customer touch points in any way. Touch point
are either active or interaction nodes of customer communication. They are the areas of
customer interaction that are considered central to success of any marketing efforts. The
EMA analysis provides in depth profile o customer performances, buying behavior,
purchase frequency etc. successful analytic tools give organization the view of data that
lets them interpret, identify and capitalize as emerging trends in key markets and focus
their marketing and sales efforts on highly profitable marketing segments. Ultimate result
of all this is personalized customer information.
Let’s have a look at what is done by EMA analytic application of a company
which is a market leader in EMA implementation. These tools-
a. Analyze looking, billing and backlog information. This means revenue can be
segmented by customized sets of criteria which could be geographical or by
industry segments.
b. Leverage data from other CRM and SFA applications to improve sales forecasts,
measures sales process matrix and identify areas of sales focus.
c. Evaluate e-commerce purchasing patterns and website effectiveness. This will
allow the user to identify how successful their e-commerce initiative is.
d. Monitor effectiveness of your customer service agents and systems such as
average cost and time to service requests and profitability and effectiveness of
individual/ call center representatives.
e. Analyze your customer’s care for a clear understanding of customer’s
preferences, buying behavior, loyalty and profitability.
f. Develop customer segments based on profitability and lifetime customer value
and link those to international, national and regional marketing programs.
g. Measure effectiveness of indirect channel partners and programs including
distribution of sales, inventory trends, distributor’s profit margins, distributor’s
sell by product line and channel tracking trends.

As in any analytical application, this data has to be extracted from somewhere. The
development of data warehouse and creation of data marts as customer repositories
are becoming commonplace in the larger CRM implementation. Much of this process
is like traditional marketing. But the use of new media such as e-mail or web makes it
interesting. Interactivity, instant response and little work on part of customer are keys
of this game.
EMA components-
• Promotions- Web integrated marketing provides the same marketing themes
that consumers have always been interested in; i.e. promotions, contests, cross
selling of products, up selling of products and discount coupons. The
 calculation is that they will get a long term customer value through repeat
customer’s overtime and that the loyal customers will stay loyal due to other
things [such as excellent services and constant promotions]. In a way, price
increases later on.
• Events- Various vendors have developed EMA event management tools for
capturing customer information through event registration and online
interaction. The web is preferred e-marketing delivery mechanism.
Registration for seminars, exhibitions etc. is possible using internet. However,
even more interesting are webinars; i.e. seminars that are actually conducted
over the web. One highly recommended is a series of newsletters called C-Biz
by Robert Thomson. In that, a newsletter is sent in plain text format each
week to the customer’s e-mail ID after he has given permission to do so by
signing up on his website ‘http://CRMguru.com’. Within the newsletter are
embedded URLs for location on web where you can register for webcast on
some future date. A web-based registration form is filled out and an e-mail
reminder is sent some time before webcast. The customer should have proper
tools and then he is ready to watch live or pre-recorded webinars. In the
meantime, the sponsoring company has captured a qualified prospect.
Registration page that is filled up on corporate webcast sponsor’s page is the
part of e-marketing campaign management toolset, as is the letter received
from Mr. Thomson. The site and the newsletter also provide a valuable opt-in
service by providing consideration with the customer’s task; e.g. if the
customer gives CRMguru names and e-mails of five subscribers, then he gets
an electronic book and whitepaper on CRM or some other forms of
consideration. Other registration and lead management features provided by
most EMA vendor’s registration page include-
o Registration page with opt-in.
o Unsubscribed [opt-out] capabilities.
o User controlled profile managements.
o Lead follow up from trade shows and other revenues.
o Campaigns on trade show floor.
o User group registration and follow up.
• Customer loyalty and retention program- Customer loyalty is much difficult
to retain when all it takes a different URL or a click on tool to switch brands.
Customers are constantly bombarded by next great deal and access to that deal
might not be a great effort. Even if the product is good, there is going to be a
better new generation EMA applications built in those small, personalized
touches that ensures quality and retain customers; e.g. Unica’s affinian
campaign management has templates for the following-
o Birthday greetings.
o Holiday and special occasion reminder.
o Welcome programs
o Delivery of gift ideas.
o Point based programs.
o Win back programs for inactive customers.
Partner relationship management-
These include features that incorporate targeted joint marketing program to promote both
you and your partners’ business. Some features are-
a. Cross sell of campaigns complementary products.
b. Promotion of new versions of upgrades of a company’s products.
c. Joint promotions with partners and affiliates.

Response management-
The campaign is in progress, you have thousands of customers and thousands of
responses from the targeted markets of different offerings. Additionally, you have put
a series of surveys online so that, you can find time to your marketing. During the
course of this activity, there is a lot of data to look at. For this, your response
management activities should be the best. The traditional response management is
tedious even with the use of computers. The time it takes for response gathering
analysis and refinement is too much. Also you must store the information somewhere
and then do the analysis. After the analysis, you need to work through plan for the
next campaign. Since the response gathering is often completed after the campaign is
completed.
This is the point where EMA is appreciated the most using the Internet as a tool that
works in real time, what is now called as a ‘close group’.
Closed group feedback is then heart of internet based response management. It is the
use of internet and the tools to compile extract and analyze information while the
campaigns are in progress. Thus information is generating new information. Hence
the time to gather and analyze information and response to campaign is notably
shorter. Besides this, the EMA response management has following benefits-
a. Information gathering, extraction and analysis time is dramatically reduced.
b. Refinement to the campaign can be done in midstream, improving the possibility
of returns within the existing campaign. It is no longer a lesson learnt for the next
time but instead a chance of success while the original campaign is in progress.
c. Automated tasks free up the labor time for other marketing tasks.