In two years the EU could kill direct marketing. Don't be a victim.

The new EU Data Regulation will have a huge impact on the future of B2B marketing. The changes are fast approaching, yet many companies who will be affected are unprepared. 

Broadly speaking, we currently have an opt-out system for storing contact details and personal data in Europe. You can store and use prospect or customer data for marketing until they tell you to stop.

The EU Data Regulation (EUDR) changes direct marketing from an opt-out system to an opt-in rule. In the future, you will need to get a person’s permission before you can store their personal details in your database or CRM.

If they don’t give you permission, your email marketing, direct mail and telemarketing could grind to a halt.

You will not be able to store a prospects mobile number or direct line/home number on your system without their permission.

Experts believe the new law will be passed in early 2015, and will be enforced by 2017.
You need to start getting ‘opt-in’ – permission from prospects to store their personal information on your systems - and you need to start now.

The existing EU Directive is replaced by a new Regulation. Upgrading the law to a Regulation, means the same law will apply across all EU Countries. No variation, no ‘get out’ clause.

The EUDR states you must obtain explicit consent, through ‘clear statement or affirmative action’, to store and use personal data. There is no distinction between business-to-consumer (B2C) and business-to-business (B2B) sales or marketing.

However, the Regulation currently fails to define ‘explicit consent’. Your interpretation of explicit consent could differ from the authorities’ view. Hopefully they will define it more clearly by 2015.

So, what is ‘personal’ data? Here’s a brief list, and remember this applies to both B2C and B2B sales and marketing.

• Full name
• Job title
• Work and Home email address
• Direct work telephone number
• Home telephone number
• Mobile telephone number
• Actions and behaviours
• Computer IP address

The flow and profiling of data will be restricted, which will impact the effectiveness of your direct marketing. IP addresses will be listed as personal data. So you will need consent from visitors to record and store their activity on your website. This will affect web analytics and online marketing.

Combined with the existing Cookie Law, you may not be able to give visitors a ‘personalised’ experience on your website. Customers could be forced to re-enter their details on every visit or transaction.

The Regulation also introduces a new ‘right to be forgotten’ by internet firms. If a person requests, you will have to remove all data held on them and any information you have published about them on the internet.

So money spent profiling customers and gathering information about their online buying habits could be wasted.

Data held outside Europe on EU Citizens will be subject to the same law. Even though it’s impossible for companies to know they are dealing with EU Citizens until the person registers their details online. Some commentators believe it’s also impractical to prosecute companies outside the EU.

Other elements of this new law include:

• Companies employing 250+ staff will need to designate a Data Protection Officer
• Each country will have a National Supervisory Authority to investigate breaches
  of the Regulation
• The new Regulation allows for fines up to €1,000,000 or 2% of global turnover

Bitesize 3 Point Action Plan
1. Get consent
By obtaining ‘explicit consent’ you secure the right to keep personal details for prospects within your database. Prospects remain contactable via phone, email or post (if they select those options) and personal information such as their job title or buying habits can be retained for future use.

But you have to be clear about what they have consented to receive. If they consent to receive information by email about pensions, you cannot sent them information about life insurance. If they consent to receiving email alone, you cannot call them.

2. Get content
Invest in a content marketing strategy. Content marketing is the delivery of knowledge and learning via whitepapers, webinars and infographics. Ensure that an ‘opt-in’ option is necessary to access your knowledge documents.

Beneficial for both existing customers and new business prospects, content marketing provides a reason for continued and sustainable engagement. The right content will attract your target audience and enable you to gain consent for further interactions and lead qualification.

3. Get calling
If you are involved in B2B sales or marketing, allocate more of your marketing budget to telemarketing. The EUDR still allows you to store and call switchboard numbers, because they are not personal data.

Armed with a number to call and a job title you want to reach, cold calling is still an effective way to generate leads.

Tell your colleagues
It’s important your Sales, Marketing and IT/Data department are aligned on your response to the EUDR. I have created a PowerPoint for you to deliver to relevant departments and an infographic to share with your peers.

Get the PowerPoint from http://bit.ly/SCiSlide3 and the Infographic from http://bit.ly/SCiInfo3
There is also a webinar on 24/9/2014, 3.30pm GMT with more details and a Q&A session at the end. Register at http://bit.ly/SCiWebinar8

Marketing Automation in B2B; Who, What, Why?

Marketing Automation (MA) is ever increasing in demand within all industry sectors. The drive of relevant content and knowledge has made a significant impact on how companies interact with their clientele.

Continued and sustained interaction through content marketing and email campaigns is vital to maintain relationships with existing customers and to create new business opportunities.

We predict that the demand for MA software will continue to increase in 2014.

Used effectively, MA target’s particular groups and provides a tailored response to any website requests or social media interactions. This arguably saves both time and money whilst enabling companies to better assess ROI and website analytics.

In conjunction with marketing technology website Software Advice’s new research, we examine the who, what and why’s of MA for 2014.

WHO?

Who is shopping for marketing automation?

Small and mid-size companies:

In recent years large companies, particularly those in the Tech industry, have dominated the demand for MA software. Surprisingly almost 50% of the buyer companies who featured within the research had less than 50 employees, whilst 24% of the sample were mid-size companies ranging from 101-500 employees.

This increase is likely to continue throughout 2014 and competition is set to rise as vendors compete to capitalise on the emergence of smaller companies entering the MA markets.

First time buyers:

91% of buyers were evaluating MA for the first time. This is likely to be a continuing trend throughout 2014/15, MA software can be expensive and many companies are unlikely to replace an existing MA software system for several years.

It’s important that companies choose the right MA system the first time and because of the cost involved many ensure they choose wisely. Only companies with huge turnovers are likely to be second or third time buyers.

WHAT?

What are buyers looking for in MA?

Improved efficiency:

Many companies spent much of 2013 being driven by the rise of content marketing, creating whitepapers etc. Now that this content has been created and distributed what next? The answer is to ensure that your content is creating good leads and ultimately generating revenue.

40% of buyers citing ‘lead management’ as their main reason for evaluating MA. A further 30% had a need to automate processes, this is likely a result of larger volumes of website engagement driven by increased content marketing.

Nurturing & reporting:

Buyers are also demanding certain features from MA, with 81% citing lead nurturing as their central feature of importance. This demand is closely followed by the 70% of companies who prioritised reporting and analytics as a must-have feature.

With ROI in marketing notoriously difficult to measure MA is seen by many as an answer to this problem.

WHY?

Why is there an increasing demand for MA?

Time & effectiveness:

Based on ‘what’ buyers are looking for from MA, there is an overwhelming shift away from traditional methods of interaction. An increasing number of companies, of all sizes, are moving away from basic CRM systems and pen/paper manual methods towards digital. 

Surprisingly 21% are still using manual, but trends suggest more are beginning to see the value and time of MA. It greatly improves the overall nurturing process and ensures that relevant messages are sent out on time without requiring reminders.

CRM isn’t enough:

Interestingly 48% of potential buyers are still using a CRM tool. An integrated system would be considered an effective way to cleverly balance the two. However this can be an expensive option to pursue if you have a bespoke CRM and so this doesn’t appear to be a viable option.

For a range of articles exploring B2B sales and marketing click here.

What does Time really mean to Sales?

Sales are directly affected by time; whether its time of day, day of the week or month of year. Although your company’s experience may not be a replica of those featured within this article, it illustrates the importance of examining trends.

The findings below are based on analysis of website traffic and conversion data over a 5 year period*. Please note that ‘conversion’ refers to a website visitor who requested contact and ‘qualification’ refers to conversions qualified through needs analysis and BANT.

1. The early agent catches the sale.

• The highest level of website activity is during work hours (53% above average).By 9am activity is up 69%, yet often some sales agents are still eating breakfast, checking emails or arranging their desks. Staggering agents’ working days (alternative shifts) to ensure motivated agents are raring to go by 8.30am could be more productive. 

• Lunchtime website activity (12pm-2pm) can be up to 90% higher than average and qualification rates increase by 12% just before lunch begins. Staggering sales agent schedules could help avoid an empty office at lunchtime, or even having a different lunch schedule that fits around this time of rich opportunity. Research suggests the faster you respond to a conversion the more likely they are to qualify.

• Conversion rates peak in the evening by up to 15% between 9pm and 11.59pm.The title of this article could have been ‘3 reasons to live in your office’ as research shows that weekday evenings also boast high conversion rates. The sales team is unavailable during these hours but it’s a great time to send out knowledge documents

2. B2B Sales hates Mondays.

• B2B website activity is highest mid-week (Tuesday-Thursday), with traffic peaking at 30% higher than average on Tuesday. High rates of website activity mid-week mean it’s imperative that you have enough sales agents to meet demand. Tuesday may be the best day for launching campaigns, interacting with social media and avoiding staff holidays. 

• Conversion rates fall below average on Monday and Friday. Hate Mondays? You’re not alone; many people avoid external interaction on Monday preferring to prioritise inbox demands. Monday is still 21% above average for website activity so blogs or white papers may perform well. Mondays and Fridays are also good days to consider for data gathering or other housekeeping tasks.

• Qualification rates are 4% higher than average from Tuesday to Thursday. It’s important to reinforce the necessity of having enough sales staff mid-week. Responding to a call back request within 5 seconds is 29% more likely to result in a qualification than a call 5mins later.

3. ‘Tis the season to avoid conversion?

• January through to May has the highest conversion rates (February performing a massive 10% higher than average). The beginning of the year has far better conversion rates, this is the most effective time to begin a new campaign as companies often have, or are in the process of planning, new budgets. For high-end, complex sales, beginning to nurture potential clients 3-6 months ahead of this period will increase likelihood of an existing relationship during January to May.

• Conversion rates dropped significantly during the summer months and December (December was 12% below average). Conversion rates fall during the summer, so this is the ideal time for the sales staff holidays or company events. The noticeable dip in December is likely to be the result of companies preparing for the New Year. December could be considered an important month for human interaction, account nurturing and campaign planning.

• Qualification rates are 2% higher than average from June to August. During these summer months qualification rates increased, which may be based on the conversion rates simultaneously falling below average. With less warm leads coming through agents have far more time to ensure they reach the right people and analyse each companies potential. 

Timing has a direct impact on your business. Research how your customers interact with your website, sales agents and social media in order to build your schedule around them.

Seasonality is also extremely important in B2B sales! So although this research may not reflect personal experience it’s vital that you plan your year to ensure it reflects your own company trends. Analysis of your monthly sales figures over three years could be a start.

*Software Advice

6 Key Ways To Influence Decision Makers

Every day we make decisions. No matter how big or small, the influences on our decisions are the same. The psychology around the decision making process and persuasion has constructed many marketing frameworks. So how is this useful for telemarketers?

By understanding and analysing the 6 key factors people consider when they make decisions to buy (or not to buy) you can shape your telemarketing plan to maximise sales.

1. Reciprocity – “I owe you a favour”

This is essentially a social etiquette. For example, if someone sends you a birthday card do you send one back? Most probably yes. You feel obligated to return the act of kindness. The same can work in business, by offering customers an incentive or free gesture.

2. Scarcity – “Will I miss out?”

Scarcity in marketing is used in two ways, either with limited time or limited quantity. People desire what is less available and this often encourages people to buy now rather than later. It can even make them believe a product is more valuable.

3. Authority – “The expert said it was good”

We view authority in different ways, such as titles or uniforms. Marketing authority is more closely aligned with credibility; credibility through expertise and trustworthiness. This is often achieved in the form of case studies or testimonials.

4. Consistency – “I said I would do that”

People like to be consistent. If they make a public statement to do something then they feel obliged to carry out their promise. A restaurant reduced the number of unattended bookings by simply asking “WILL you let us know if you need to cancel?”, instead of “Please let us know if you need to cancel.”

5. Liking – “The Sales Rep was nice”

Attractiveness sells. It is much easier to say yes to someone you like. In sales it is not necessarily about the physical attractiveness, but the way in which we listen, advise and respect the client. Training in social styles is an important part of the sales process.

6. Consensus “Everyone else uses them”

A simple concept of word of mouth. Our decision-making demands far exceed our mental capacity or the amount of time we have to consider all the options. So we take short-cuts. We ask a friend or colleague what suppliers they use. If you researched your decision a little more you may find a better alternative; but in a society where time is limited, following others can seem like a safe choice.

So how can this framework be implemented into a telemarketing environment?

Reciprocity – Give away some helpful tips or free research results.

Scarcity – Implement a time or quantity limit when delivering your sales pitch.

Authority – Train your staff to have excellent product knowledge or quote testimonials.

Consistency – Use terminology which makes your prospect commit to further conversations.

Liking – Nurture your prospective client by taking advantage of the benefits of human interaction.

Consensus – Be aware of previous work you may have done with the client or similar companies.

Simon and Heather; Friends With Benefits

Congratulations, it’s your Birthday! Your network of (imaginary) friends have been contacting you in various ways to wish you a wonderful day. But who went that extra mile, who made you feel valued?

Raj sends you an email,
Sally sends you a text message,
Peter sends you a birthday card,
Heather gives you a telephone call,
Simon visits you at home.

This translates to Email M arketing (Raj), Mobile Marketing (Sally), Direct Mail (Peter), Telemarketing (Heather) and Field Sales (Simon).

We asked managers on LinkedIn the same question and 81% agreed that Field Sales and Telemarketing, the channels with the highest Human Interaction, made them feel most valued.
HI is an invaluable tool within the B2B sales cycle, particularly when acquiring new orders (both low and high value).

 Many companies fail to incorporate HI into their sales process, but with 89% of new purchases requiring some form of HI the opportunities for first-time business are immense. HI is also particularly effective for account nurture and appointment setting across all types of order.

For example, today new orders which involve large corporate companies rarely transpire without HI, this is largely due to the fact that recent years have seen an increase in high value, complex sales. This has resulted in much bigger deals and a longer buying process. Such high risk deals tend to be decided by the company board of directors, so it’s vital that sellers nurture relationships with all of them... or risk failing to meet all their individual needs!

The most effective way to build individual relationships with company directors, whilst ensuring you fit their various requirements, is through HI. By visiting them in person or speaking on the phone you communicate in real-time which is an effective way to quickly dispel doubts and build trust. HI improves the overall customer experience and enables the seller to draw upon the use of body language and tone of voice in order to influence a positive outcome.

(In short: Simon & Heather went that extra mile, they made you feel appreciated. By doing so they strengthened their existing relationships with you and proved they are thoughtful & reliable friends.)

HI plays a massive part in inspiring strong buyer-seller relationships and increasing buyer confidence.

CTPS is a 'do not call' list for B2B telemarketing. What's the point?

Many of you will be aware of the Telephone Preference Service (TPS), which is essentially a ‘do not call’ list for consumer telephone numbers. But what about Corporate TPS (CTPS)?

The CTPS list currently holds 2.6m telephone numbers. Similar to TPS, it’s a list of business telephone numbers that have opted out from receiving telemarketing calls. Calling any of these numbers could – in theory – result in a fine as high as £500,000.

However, awareness of CTPS is poor and combined with a lack of appetite for prosecution as well as a registration system that is flawed, many people are asking for CTPS to be scrapped.

But what are the advantages in scrapping this system? And are there good reasons to keep it?

The argument for scrapping CTPS is based on the fact that not all B2B telemarketing companies subscribe to it. It currently costs £1,100 per annum to receive the CTPS list every 28 days, and it could be seen by some as a tax on reputable telemarketing companies.

In addition, since CTPS was launched in 2004 there have been no prosecutions or fines issued – yet CTPS has received complaints. As a result, some commentators view the legislation as pointless.

Finally, the registration process is flawed. It’s possible for managers to register the telephone numbers of all their staff without consulting them. This can prohibit buyers from finding new products or suppliers with better or cheaper offers.

However, there is an argument to keep CTPS – or at least to not scrap it.

There are some organisations which perhaps should not be called for telemarketing purposes. For example, the direct lines of emergency services. These numbers cannot be registered on TPS, so how do you prevent them from being listed on a telemarketing database?

Also, it’s a waste of marketing budget to call people who have requested not to be telephoned. Plus, if you have an active content marketing plan, you should be able to persuade buyers to opt in to receive a telemarketing call… which overrides any CTPS opt-out registration.

Lastly, checking telephone numbers against the CTPS protects our clients’ brand from potential bad publicity.

But all of this could soon become an academic debate, as the draft EU Data Regulation is due to get its first reading this spring. If this new law is passed in its current form, it could require all direct marketing to be opt-in with explicit consent. Thus, perhaps, CTPS becomes redundant.

Has Facebook got the X-Factor?

Social Media, and Facebook in particular, has been hailed as the marketing tool of the decade - but does it live up to the hype?

There is no doubt Social Media is a popular marketing tool - this blog is social media - but there seems to be a lack of objective statistics in the UK on its ROI. In 2010, the X-Factor TV show achieved one of the highest viewing figures in recent times, so we examined audience engagement with its Facebook page.

The X-Factor Final
On Sunday 12 December, 2010 over 17m people watched Matt Cardle win the final. Its Facebook page was heavily promoted during the show.

The busiest section on The X-Factor Facebook page was the Wall. Here the admin posted questions and supporters could ‘Like’ or ‘Comment’ on the posts.

In total, the admin posted 32 questions between 11.18am and 9.22pm, and the peak time of activity was 7.33 - 9.22pm when the show was live (13 questions posted).

The X-Factor Facebook page was one of the most popular at the time with over 2.5m ‘Likes’.

The results
The table below shows the Likes/Comments that viewers posted on the Wall during the whole of Sunday and when the show was broadcast. Approximately 66% of Likes/Comments were made when the show was live, with a marked drop in participation when the show finished.

We’ve also shown the number of Likes/Comments expressed as a percentage of the show’s TV audience. We view this percentage as the ‘response’ Facebook achieved (if SCi achieved that sort of response using any other marketing tool we would be disappointed).

To examine the level of engagement people had with Facebook we analysed further a question posted at 8.22pm during the middle of the show.

• 1.42% of the Comments were adverts for other products and Facebook pages.
• 22.57% of the Comments contained just 3 words or less.
• Only 6% of people made more than 1 Comment.

Conclusion

The X-Factor is a subject that generates divided opinions, as such we would have expected the Facebook page to have more participation.

While it’s true the page is popular, it managed less than 0.5% engagement with it’s TV audience; and only 1.99% of the 2.5m people who Like the page made a Comment.

If most of the ‘viewers’ of the Facebook page are inactive spectators it could be argued that its real potential is not being exploited - it’s not that much different from passively watching a TV commercial.

The fault may not be Facebook’s, perhaps The X-Factor’s use of the page is the problem. Two months after the show has finished and there are still adverts for other products and pages in the Comments, which suggests poor housekeeping. Also some questions from participants remained unanswered.

But even when people do participate their level of engagement is not deep. Just 22.57% of the Comments contained 3 words or less, many with simple  ‘Yes’ or ‘No’ answers; and only 6% of people Commented more than once.

How would the X-Factor judges mark Facebook's performance?