BEST PRACTICES IN MARKETING THE ESSENTIAL GUIDE FOR CENTRALIZING CUSTOMER

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1 BEST PRACTICES IN MARKETING THE ESSENTIAL GUIDE FOR CENTRALIZING CUSTOMER An essential and tactical manual for gaining centralized management and visibility of all marketing, transactional and customer service

2 PUBLISHED BY US Headquarters StrongView Systems, Inc Island Drive, Suite 200 Redwood City, CA P: +1 (650) F: +1 (650) UK Headquarters StrongView Systems UK Ltd. Atlantic House Imperial Way Reading RG2 0TD United Kingdom P: +44 (0) APAC Headquarters XCOM Media Unit 1 15 Lamington Street New Farm Queensland 4005 Australia P: Copyright 2013 StrongView Systems, Inc. All rights reserved. No part of the contents of this publication may be reproduced or transmitted in any form or by any means without the written permission of StrongView Systems, Inc. STRONGVIEW and the STRONGVIEW logo are registered trademarks in the United States, other countries or both. All Rights Reserved. StrongView Systems UK, Ltd is a company registered in England and Wales at 5 New Street Square, London EC4A 3TW. Reg. No VAT # GB Trading Address: Atlantic House, Imperial Way, Reading, RG2 0TD, United Kingdom.

3 Table of Contents 1. THE OORTUNITY Business Drivers Technical Drivers 3. CENTRALIZATION FUNDAMENTALS Message Frequency Brand Consistency Data-Driven Communications Access Control Budget and Resource Allocation Deliverability Optimization 7. GETTING STARTED WITH CENTRALIZATION Take Inventory Secure Internal Approvals Select the Right Technology 10. THE STRONGVIEW AROACH 11. CENTRALIZATION CHECKLIST 12. ABOUT STRONGVIEW

4 According to JupiterResearch, centralization is required for marketers to cut through inbox clutter and ensure that remains a usable and addressable communications channel 1. However, 62% of companies haven t yet centralized their outbound initiatives 1, despite the many advantages that can be obtained from coordinating sales and marketing initiatives across all customer . This white paper will examine the fundamentals of centralized and provide you with a roadmap for gaining centralized control of your marketing, transactional and customer service . THE OORTUNITY Key Things You Will Learn: The fundamentals of centralization Customer optimization is a popular mantra with marketers; however, few are able to fulfill its promises due to a lack of coordination and data sharing among the various departments charged with customer service, marketing, promotional, sales and transactional communications. The factors involved with coordinating customer across departments The key steps required to centralize A checklist for moving all customer onto one platform CENTRALIZED MANAGEMENT Marketing Account Update Delivery Notification Password Reset Purchase Confirmation Customer Service Newsletter Sales Marketing Account Update Delivery Notification Password Reset Purchase Confirmation Customer Service Newsletter Sales Coordinated Messaging Consistent Branding No Coordination No Branding Control Customer CENTRALIZED Customer DECENTRALIZED 1 JupiterResearch/StrongView, 2007, The Maturation of 1 The Essential Guide for Centralizing Customer

5 Centralized solves this problem by providing the critical framework for controlling and coordinating the key factors that drive a holistic customer communication strategy, including segregation of data, customer communications preferences, and brands or classes of mail. Centralized not only enables organizations to properly coordinate their customer outreach, it also creates efficiencies for strengthening customer relationships and improving profits. centralization also enables marketers to create an effective and integrated marketing strategy that encompasses all s sent to the customer, whether marketing, customer service or transactional. A centralized approach gives marketers access to all customer data that is necessary to optimize outbound customer communications with superior targeting, relevancy, branding and frequency. Key Drivers for Centralization Business Drivers Coordinate sales and marketing initiatives Leverage data to maximize performance of marketing and service s Enforce brand management Institute business process controls Improve customer service Technical Drivers Improve system management Easier integration with databases and systems Maintain data security Streamline costs The benefits from centralizing on one platform can be achieved by nearly any size organization. Large enterprises like Charles Schwab have centralized all of their customer to implement controls for security and compliance, improve coordination between departments, and streamline costs. Towards the other end of the spectrum, smaller companies like The Motley Fool are motivated by the ability to leverage all customer data to improve the customer experience and nurture more profitable relationships. Regardless of a company s size or industry, the trend to centralization is being fueled by several business and technical drivers. Business Drivers Coordinating customer communications across brands, business units and departments is one of the principle business drivers of centralization. In a September 2007 published research study, The Maturation of , JupiterResearch reported that [c]ompanies must begin the process of centralizing all of their communications to develop a more accurate picture of how their subscribers respond to various messages as well as maintain controls to ensure that consumers are not overloaded by messages. Only a centralized platform for customer offers the visibility and data integration required to enable that coordination. By having all customer managed from one centralized system, marketers can coordinate sales and marketing initiatives for maximum impact. For example, a marketing message could contain a cross-sell offer for a recent purchase or include an account update. Centralization also allows companies to institute business process controls that can prevent a customer from receiving s too frequently or while they are resolving an issue with customer service. The ability to control the frequency and types of messages based on pre-defined conditions can go a long way towards creating or maintaining a positive customer experience. Centralized management also allows marketers to keep tight control of the branding, corporate voice and marketing offers integrated in all customer s. This control puts marketers in a position to protect the brand they ve worked so hard to create, and to avoid confusing customers with incongruous design, style and content that might otherwise come arbitrarily from different departments or divisions. 2 The Essential Guide for Centralizing Customer

6 Technical Drivers Companies can also be motivated to centralize by a variety of technical drivers. Having one centralized system instead of numerous disparate systems greatly reduces the IT burden for ongoing maintenance and management. Reducing the number of systems to manage can result in significant resource savings (both human and technical), which can be recouped monetarily or applied to other initiatives. Consolidating all outbound customer on one system also facilitates the training process for system administrators and end-users. Companies must begin the process of centralizing all of their communications to develop a more accurate picture of how their subscribers respond to various messages as well as maintain controls to ensure that consumers are not overloaded by messages. JupiterResearch The Maturation of , 2007 Managing and maintaining integration with customer databases and other enterprise systems is made easier by a centralized approach to outbound customer . Investing in a flexible and extensible solution allows IT to develop one set of integrations instead of various connections between multiple solutions. At a time when hackers are becoming increasingly brazen in their attempts to steal proprietary, private customer data, and regulations are becoming more rigorous to protect that information, many companies are also centralizing to implement controls for security and privacy compliance. Only with a centralized approach can an organization have the visibility and control needed to deploy and enforce an strategy across all departments and channels. Sending a marketing to a customer without taking into account a recent purchase or an outstanding customer service request can undermine the relationship and trust you ve worked so hard to create. In the end, the customized dialogue that is enabled by centralization is the one that will likely be noticed, appreciated and acted upon. The remainder of this paper will address the fundamentals of centralization and practical advice for developing your own centralization strategy. CENTRALIZATION FUNDAMENTALS Before implementing a strategy for centralizing , it s important to know the various factors that are involved. In essence, centralization comes down to managing across multiple departments and organizational silos, which enables you to enhance the customer experience, streamline processes and improve deliverability. This section will delve into the details to provide a framework for the next section practical advice for getting started. As we ve discussed, centralizing all initiatives provides better management of all customer , regardless of originating department or division. This centralized management is key for optimizing the customer experience. Not only does it allow the creation of relevant messages that reflect data points from every customer touch point, it also enables message frequency control. From an economy standpoint, a centralized budget can significantly reduce costs by streamlining processes and better allocating resources. As illustrated in the following graphic from the JupiterResearch study mentioned earlier, centralization can play a significant role in optimizing mailing practices. 3 The Essential Guide for Centralizing Customer

7 Synchronize user and publishing controls Build testing and optimization into all processes CENTRALIZE TECHNOLOGY AND MANAGEMENT Implement frequency controls to optimize relevance Improve infrastructure to aid in message delivery Focus on behavior to drive engagement STEPS TO OPTIMIZE MAILING PRACTICES Source: JupiterResearch (9/07) 2007 JupiterResearch, LLC Message Frequency The JupiterResearch study also reports that non-relevant s and frequency are the top two reasons consumers give for unsubscribing from a mailing. Centralized makes it possible to deliver highly relevant messages and implement the frequency controls that can keep you from overloading and alienating a customer or prospect. Centralized makes it possible to deliver highly relevant messages and implement the frequency controls that can keep you from overloading and alienating a customer or prospect. By taking inventory of all customer marketing, transactional, and customer service you can then determine what promotional messages are relevant for each type and create rules to prohibit customers from receiving too many marketing s or integrated offers. Brand Consistency Maintaining a consistent brand is also critical for optimizing the customer experience. Without centralized control, it s nearly impossible to manage (or even be aware of) the various types that are sent to each customer. That lack of visibility can result in customer service sending messages with out-of-date branding, messages or offers. Similarly, transactional might be sent directly from IT as plain-text messages, without proper branding, relevant promotions or review for legal and regulatory compliance. centralization empowers marketing to control the templates that each type leverages, thereby ensuring each delivers against the brand expectations created via advertising, online experience, etc. 4 The Essential Guide for Centralizing Customer

8 Data-Driven Communications Centralized control of all sent to a particular individual also enables you to optimize the customer experience by leveraging data from each touch point. This approach allows you to create data-driven one-to-one communications, where a recipient receives a relevant message at the right time based on current interactions with your organization. By knowing a customer recently bought a DVD player, you can then send a follow up offering a discount on select DVDs. Publishing controls from a centralized solution allow a company to extend capabilities to any group within their organization, which can lead to a greater ROI. This control and data integration can also be used to improve the customer experience by coordinating marketing and customer service communications. For example, if a customer is currently disputing a recent purchase with customer service, marketing can temporarily suspend mailings to that recipient until the matter is resolved. Demonstrating your full understanding of the customer relationship goes a long way in fostering customer satisfaction and retention. Access Control A comprehensive centralized delivery platform enables companies to institute user and publishing controls across all message types, whether marketing, transactional or customer service. Using these publishing controls, companies can assign users different rights and privileges based on their role within the organization or workflow of an program. This helps eliminate potential mishaps from unqualified users inadvertently sending an inappropriate message that could possibly damage customer relationships or violate laws and regulations. Publishing controls from a centralized solution allow a company to extend capabilities to any group within their organization, which leads to a higher ROI. Budget and Resource Allocation Centralizing also enables the centralization of budget and resources. As previously stated, 62% of companies have more than one department responsible for and nearly a quarter of the companies surveyed by JupiterResearch have six or more departments managing it separately. This disparate approach often results in the company managing multiple vendor relationships. For example, marketing may use an service provider, while IT sends transactional and customer service makes use of a verticalized solution. By migrating all customer to a centralized solution, companies can eliminate the number of vendors that need to be managed and reduce costs in the process. Having one extensible solution that can meet the broad needs of an organization is usually more cost-effective than maintaining multiple point-solutions, thanks to economies of scale and the reduced number of internal resources required for managing a single vendor vs. multiple ones. 5 The Essential Guide for Centralizing Customer

9 Six or More 24% Three to Five 19% Two 19% One; it is Centralized 38% NUMBER OF DEPARTMENTS RESPONSIBLE FOR Jupiter Research/StrongView, Maturation of , 2007 Without the IP management enabled by a centralized approach, inferior mailing practices of one department could significantly affect the reputation of another. A single centralized solution for customer also lessens the burden on internal IT resources. In addition to reducing the number of outbound systems that need to be managed and maintained, it also simplifies customer data replication and database management required for . Bandwidth needs are better controlled and easier to manage when is centralized. All in all, the organization has the benefit of working with one platform, one vendor, and one set of technology needs for all outbound , creating more efficient resources, making the process of managing easier and technology environments less chaotic. Deliverability Optimization Safeguarding and optimizing deliverability is another key benefit derived from a centralized strategy. Centralized provides the control necessary for effective IP reputation management. Without the IP management enabled by a centralized approach, inferior mailing practices of one department could significantly affect the reputation of another. For example, if IP addresses are inadvertently shared across departments, an overaggressive marketing could impede the delivery of a more business-critical transactional . Centralized enables you to ensure that your IP addresses are properly allocated to pre-defined message types and that all receiving organizations including ISPs have a single view of your positive mailing practices. Safeguarding the reputation of your IP addresses is just the first step. You also need to optimize the content for your customer to maximize delivery to the inbox. With a centralized approach, content management becomes much more effective, and it also enables marketers to apply deliverability tools across messages, such as spam scoring and inbox placement. 6 The Essential Guide for Centralizing Customer

10 GETTING STARTED WITH CENTRALIZATION Implementing an centralization strategy can be done efficiently and effectively with a straightforward three-step process take inventory, secure internal approvals and select the right technology. This next section will take you through these three steps, highlighting the key factors involved at each stage. Take Inventory Inventory Checklist The path to centralization begins with taking inventory. Departments sending types Volume of outbound/ inbound messages Quantity of inbound response data Stakeholders Budget Not surprisingly, transitioning to centralized starts with taking inventory of all departments that send customer , the types of messages they send today, and those they plan on sending in the future. Don t assume you are aware of all types sent to your customers and prospects. Meet with those who manage for each department and identify the various types and categories of they send. Understanding who all of the stakeholders are in the centralization effort will be key to your success. Marketing and Customer Service are the obvious departments to begin with, but don t forget to survey IT and get an account for all transactional messages automatically generated by e-commerce systems, password management systems, data notification systems, etc. Triggered s generated from your website, such as password reset requests, are easy to overlook, but they should all be accounted for in the inventory process. While tallying the number of types sent by each department, be sure to identify the volume of outbound messages sent monthly and annually. Similarly, you will need to understand the volume of inbound messages, including all response data (number of clicks, opens, etc.) generated by each message type. The volumes and response data will be important data points for evaluating the technology required to centralize . The number and types of are the critical first data points to collect, but equal attention should be given to inventorying the budget allocated to each disparate system. Knowing the combined budget allocated to customer will enable you to make key decisions related to the ongoing costs and ROI of a centralized system. Secure Internal Approvals Once you ve taken inventory, you will have the data points needed to develop a logistical plan for centralizing . However, in order to secure internal approvals for moving the plan forward, the plan must be presented in conjunction with success stories, costs analyses and other information that can be used to educate internal audiences of the power and effectiveness of centralization. 7 The Essential Guide for Centralizing Customer

11 Evangelizing the benefits of centralization internally will require presenting what is being done internally and how it can be improved upon with a centralized approach. Researching and presenting success stories of other organizations that have centralized their will bolster the effort. The JupiterResearch/StrongView report The Maturation of Controlling Messaging Chaos Through Centralization is an info-rich resource that can used to secure internal approval. For example, data points on annual infrastructure budgets and allocations to message type can be used as a comparison point in a detailed cost-analysis report. StrongView s website (www.strongview.com) is also a good resource for identifying case studies of successful centralizations. Technology Prerequisites for Centralization Database-driven segmentation and targeting Real-time visibility, reporting and tracking across message/campaign types Workflow collaboration and security features Publishing and frequency controls at the user level Open connectivity and integration Dynamic message assembly High-performance delivery By compiling the right information, selling the concept of centralization shouldn t be too difficult. In the end, centralization will create considerable costs savings that will offset investments in testing, targeting and behavioral analysis used to create one-to-one messages. Select the Right Technology Knowing the benefits and factors involved with implementing a strategy for centralized is important, but you also need to have the right technology that can support it. If your current solution doesn t support the features identified in this section, consider upgrading to one that does. On-premise solutions are a popular choice for companies looking to centralize their , but hosted solutions that offer access to a dedicated system can also be very effective. Both options help address the challenges that can arise from the number of different departments that generate , the costs associated with multi-tenant solutions, and the integration requirements involved with connecting all disparate data sources. Choosing a dedicated hosted or in-house solution ensures that performance isn t impacted by the sharing of resources with other clients, which is common with most service providers today. In addition to improved performance and scalability, dedicated solutions offer superior security and not just from the ability to maintain data behind a firewall or through the use of encrypted connections. Dedicated solutions offer hackers a much smaller and less lucrative target than the bounty that can be obtained by hacking a shared multi-tenant solution that hosts programs for multiple brands. Multitenant solutions often also limit the use of APIs, which can impact the number of data connections you can leverage to personalize your messages. If you re currently relying on a custom, homegrown solution instead of a commercial one described above, make sure it offers superior reliability, scalability and ease of management. If you re not sure where to start, StrongView offers commercial in-house and dedicated hosted solutions that can easily accommodate centralization. 8 The Essential Guide for Centralizing Customer

12 When assessing your current solution or evaluating a new one, you ll want to verify that it offers the following: Database-driven advanced data segmentation and targeting. Having the data integration is not enough; the ideal system will also allow you to perform advanced data segmentation and targeting based on any attribute or combination of attributions that exist across multiple databases. Real-time visibility, reporting and tracking across campaign type. Accurate, detailed and real-time reporting is essential for properly managing all customer ; however, it s especially critical for optimizing marketing messages to maximize clicks and conversions. The right system should provide 100% visibility into each campaign type, so you can isolate specific success factors or potential problems. Being able to identify delivery problems in real time not only allows you to quickly address and resolve problems, but it enables you to pause a mailing that might be negatively affecting your sender reputation. Workflow collaboration and security features. The ability to control the process across different organizations and groups is vital. This means being able to set up role-based permissions to allow collaboration across multiple organizations, divisions and business units. The system should also require approvals from appropriate specialists at key points during the message creation and execution process. Publishing and frequency controls at the user level. Verify that the system can assign each user specific publishing and frequency rights that conform to pre-established standards for the types of messages and number of messages that end users can receive in a given period of time. This control can help you avoid over mailing customers or inundating them with irrelevant information. Open connectivity and integration. A robust set of APIs that allows easy integration with backend processes and data sources is extremely important. That integration enables you to customize messages to customer preferences and behaviors, and ensure a consistent customer experience across multiple touch points. It also provides the information required to maximize results and follow through with best practices. Dynamic message assembly. In order to take advantage of the data integration and targeting, you need to have a dynamic content engine to assemble and generate these highly customized one-to-one messages. The engine should be able to assemble the messages quickly and efficiently to avoid impacting send times. High-performance delivery. All the effort you put into creating customized messages is lost if it doesn t reach the intended recipient. Reliable, highperformance delivery is required to get high-volume marketing messages delivered at the right time for maximum impact. Real-time delivery is also a nonnegotiable requirement for transactional s, as any delay can result in a costly call to your customer service department. 9 The Essential Guide for Centralizing Customer

13 THE STRONGVIEW AROACH StrongView meets these requirements with a powerful and comprehensive marketing solution that combines a flexible underlying architecture with an intuitive user interface offering powerful campaign, lifecycle and transactional management functionality. StrongView s solution is illustrated in the diagram below. Only StrongView enables its customers to centralize all promotional and eventtriggered on a dedicated solution that can be installed on-premise or hosted in the cloud. By taking advantage of StrongView s unique approach, companies are able to take control of outbound and easily integrate with customer data sources, and other critical systems, to deliver highly personalized messages in a secure, reliable and cost-effective environment. The benefits of centralization are clear. In addition to the economic benefits from streamlined processes and resources, centralized gives senders complete control of customer to create highly personalized messages that drive customer satisfaction, retention and profitability. The information provided in this white paper, including the following checklist, will help you get started with your own centralization strategy. 10 The Essential Guide for Centralizing Customer

14 Take Along Checklist CENTRALIZATION CHECKLIST With the right approach, implementing a strategy for centralized can be a fairly straightforward process and the rewards are significant. Centralized can help you transform the effectiveness of you programs and create an optimal customer experience. As you begin moving all of your over to a centralized system, the following checklist will make sure you take the most important factors into account. Phase 1: Preparation Take inventory of all outbound customer Estimate outbound throughput needs Identify combined budget across all departments Set cost savings metrics for centralization Evaluate existing technology platform and upgrade if necessary Secure internal approvals Phase 2: Logistics Determine key receiving domains based on total able audience Set up or consolidate IP addresses Consolidate sending calendars Develop data sources Map online and offline customer data inputs to centralized customer data source Create content library across program types Organize content snippets and assign to content types Create campaign categories Establish sending rules by program type Build segments and commonly used data queries Set-up tracking and initiate testing For more information on centralization or to schedule a demo, contact StrongView Systems at or 11 The Essential Guide for Centralizing Customer

15 ABOUT STRONGVIEW StrongView is the cross-channel marketing software provider that gives enterprise marketers a stronger view of how to acquire and engage customers across , mobile, social, display and web. Combining the strongest technology and proven marketing know-how, StrongView provides enterprise marketers unparalleled insight into how to deepen customer relationships and maximize results. The platform is offered as either SaaS or on-premise, allowing companies to deploy StrongView s technologies in the manner with which most fits their needs. Based in Redwood City, CA, and backed by leading venture capital investors, StrongView has been helping global brands in retail, travel, finance, entertainment and online services overcome the limitations of other marketing platform providers for more than a decade. For a stronger view of marketing go to and follow us at and StrongView Toll free U.S. +1 (800) Toll U.S. +1 (650) Toll U.K. +44 (0) The Essential Guide for Centralizing Customer

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