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

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.

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?

B2B telemarketing not as unpopular as you think

One of the biggest obstacles that B2B telemarketing has to overcome is its perceived unpopularity with target audiences. But new research reveals a different picture.

There are many prejudices in marketing, but perhaps the most damaging is 'me, me, me marketing'; the assumption that you are typical of the target audience and that what you dislike, they will dislike.

We may have all received telemarketing calls at home that seem to come at just the wrong moment - when you are sitting down to eat your evening meal or when you're on a ladder changing a light-bulb :)

Some telesales calls at home can be annoying.

But new research shows that telesales calls at work are not viewed in the same way. There is a difference between B2C and B2B telemarketing.

We surveyed 200 ABC1 managers and asked them what was the most annoying form of advertising. Telesales calls at home came top of the list with 35%, but telesales at work was at the bottom with just 4%. Only Direct Mail and Door Drops were less annoying.

Pop-up windows on websites came 2nd and TV advertising 3rd. But note how both email marketing and text messages on mobile phones are considered to be more annoying forms of advertising than B2B telemarketing.

 





Why the difference between B2B and B2C telemarketing? It may be because most managers accept that it's part of their job to talk with new suppliers. Indeed, some buyers have a KPI on the number of new suppliers they meet - it's an effective way to ensure the company is getting the best deal.

But maybe the reason why it's preferred to email and mobile text messages is that it uses Human Interaction. Buyers are people - always have been, always will be - and relationships are important in business. It's easier to build a relationship and dialogue over the phone than via an email or text message.

Your brand's relationship with customers is shaped by the content and relevance of your marketing messages, but the channel you use may also have an impact.

How Big Data is affecting the Single Customer View

In 1999 Seth Godin wrote about the idea of ‘permission-based marketing’, and to achieve it marketing departments soon realised they would need a Single Customer View (SCV). But how has the evolution of Big Data affected SCV?

Every day we gather information on our customers and store it in different databases, different departments and even different buildings. An SCV, or single marketing view as it’s sometimes called, seeks to merge all that data into one point that is accessible by all.

The problem was that for some companies, achieving an SCV was a journey that could take years. Many large organisations needed to build 5 year plans and it was not unusual for projects to over-run.

As a result, SCV slipped a few places on corporate priority lists. But Big Data may change things.

According to Bryan Eisenberg, founder of the Digital Analytics Association, the world is currently generating more data in 2 days than in all the days before 2003.

The sheer Volume, Variety and Velocity of information has increased; largely as a result of the explosion in digital marketing and the data it generates.

Managing the ‘3 Vs’ has been a problem. But Eisenberg believes that as new companies enter the Big Data arena, and provide cloud-based solutions, the capabilities that had previously been accessible only by large organisations will find their way into smaller companies. Big Data for the little guys.

Duncan Stuart, Director at Deloitte Canada, confirms there are compelling reasons for companies to pursue Big Data, “Instead of looking at my customer’s behavior once a month, I can look at it every minute of every day. That kind of insight is very, very powerful. It allows me to serve my customer better”.

The result could be that SCV becomes easier, or essential, to implement.

With SCV companies will have a platform that can profile, segment and enhance data to make the most of the intelligence and insight a unified view provides – and they can do it minute-by-minute with Big Data.

This will enable you to make your marketing more relevant, and relevance is important. A recent study by Transactis* asked customers about their relationship with companies they had already given information to. It showed:

• Nearly 80% UK customers would shift their business to a competitor if a company kept sending them irrelevant offers and communications
• 86% of customers say they would withdraw permission for a company to even contact them in future if it continued to send them irrelevant communications and offers
• 88% of customers would simply refuse to hand over further details on themselves if a company kept sending them communications and offers that they find to be of little use or interest

Proper integration of Big Data into an SCV provides clear insight so you can tailor, personalise and track the outcome of marketing messages and offers faster than previously possible. All of which is vital for customer acquisition, retention and profitability.

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The 3 Vs of Big Data
Bid Data refers to the explosion of data that organisations gather and the issues surrounding the management of that data. It is measured using the 3 Vs.

Volume: The amount of data, normally measured in Petabytes.
Variety: The different types of data; video, sound, documents, web logs, etc.
Velocity: The speed at which the data changes.

There is perhaps a fourth V… veracity. All the data in the world is meaningless if it is not accurate and checked regularly, and one of the best tools for B2B data cleansing is telemarketing.

The value of human interaction in B2B sales

The emphasis on digital marketing has affected investment in other channels. So have we lost sight of the benefits that ‘live’ human interaction can bring to B2B sales?

There’s no doubt small company purchases can be done online without HI, but do buyers still need the confidence they get from a telephone conversation or meeting before they consider that large order?

The following is an extract from a White Paper which you can view by clicking ‘The value of Human Interaction in B2B Sales’.

1. Defining Human Interaction (HI)
There are many types of interaction in B2B sales, some are immediate, some are two-way, some personal and some not.

Events offer real-time, two-way interaction with visitors; but they are ‘crowd’ based. The exhibition stand or seminar needs broad appeal to attract sufficient visitors; it’s not an individualised event and does not feel ‘personal’.

Direct Mail, Email, Social Media and some Websites are able to interact with individuals, but the engagement is often delayed as you wait for a response from the other side.

Trade Magazines and many Websites offer only one-way engagement. Buyers need to use other channels to respond (Email, Telephone, etc).

Possibly the most ‘human’ interaction is a real-time, personal and two-way conversation. For that reason we will confine our definition of HI to Telemarketing and Field Sales.

2. Where is HI most effective?
HI is not as cheap as other marketing tools, such as sending an email blast. To ensure maximum ROI we have to use it wisely.

So where is HI most effective in a B2B sales process?

To answer this question SCi Sales Group researched a group of buyers across a wide range of vertical markets and job titles.

The group were asked if they had either a telephone conversation or meeting with a company representative before placing orders on their last 3 purchases.

Just over 68% of buyers had some form of HI before making their purchasing decision.

But the figures are more revealing when we examine the size of order. The average order value with HI is £68,032, but with no HI the order value drops to £1,018.

This supports the theory that when it comes to placing the big orders, buyers want to talk to someone on the phone or meet them in person to be assured they are making the right decision.

3. What are the benefits of HI?
The emphasis on data, digital channels and automation has perhaps taken focus away from interacting with customers as people. We need to recognise that HI makes customers feel valued. Consider the following example:

It’s your birthday. Friends congratulate you in different
ways. Which friend makes you feel more valued?
Sally sends you a text message,
Raj sends you an email,
Peter sends you a birthday card,
Heather gives you a telephone call,
Simon visits you at home.

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

We asked Managers on LinkedIn the same question, the top two channels were Field Sales and Telemarketing – both have HI.

However there are many advantages to HI beyond making buyers feel valued. HI enables better explanation of complex sales, it’s also easier to identify buying signals, predict objections and steer the conversation.

Conclusion
The whirlwind advance of digital marketing has resulted in a stampede as Marketing Managers race to ‘land grab’ their part of the digital space.

In the frenzy we may have lost sight of one enduring fact… buyers are people; always have been, always will be.

Can our marketing truly connect with buyers if we treat them as just ‘data’ and a ‘digital footprint’?

It’s often stated that “people buy from people”, so using marketing channels with HI (such as Telemarketing or Field Sales) should give you a competitive edge.

HI provides Marketing Managers with quality sales leads on large orders, and repeat or closed business on small orders. Plus it has an ability to make buyers feel truly valued, all of which demonstrates the benefit of human interaction in B2B sales.

How to increase customer loyalty by using the right marketing channels

We’re all familiar with the 4 Ps of the marketing mix; right product, right price, right place, right promotion. It could be argued that customer loyalty follows a similar pattern.

In order for customers to remain loyal you perhaps need product continuity, competitive prices, convenient place and appropriate communication. The 4 Cs. Communication is the focus of this article.

Understanding buyer behaviour
There are two parts to the buying process; information and negotiation. In the information phase (sourcing suppliers) buying behaviour has changed, largely due to the impact of the internet.

Analysis of the Buyersphere Report 2011 shows the major sources of information for buyers are ‘Suppliers Website’ (70%) and ‘Web Searches’ (65%), and the biggest increases in usage have been ‘Online Events/Webinars’ (up 170%) and ‘LinkedIn’ (up 100%).

The result of all this online activity is that alternative suppliers are just a click away.

In addition to being indiscriminate in the information phase, buyers are also less loyal in the negotiation phase.

We conducted a series of online surveys to determine the loyalty of buyers when offered lower prices by alternative suppliers. 76% of buyers would change supplier if offered up to a 10% discount on a purchase of £2,000.

Loyalty comes at a price, and it seems the price has little elasticity.

Choosing channels that make customers feel valued
We conducted a survey on LinkedIn about the relationship between marketing channels and the perception of being valued.

Managers outside of marketing were encouraged to participate, and to further avoid any prejudice in their choice we phrased the question in a non-marketing format. Over 600 Managers responded to the following question:

“It’s your birthday. Five friends congratulate you using different
methods. Which friend values you most?”
Simon visits you at home (Field Sales)
Heather gives you a telephone call (Telemarketing)
Peter sends you a birthday card (Direct Mail)
Sally sends you a text message (Mobile Marketing)
Raj sends you an email (Email Marketing)

Channels that use Human Interaction (HI) performed best, while the digital channels of Email and Mobile Marketing are seen to value people least. It seems that valuing customers is linked to having a two-way, ‘live’ conversation (either face-to-face or over the telephone).

Conclusion
Buying behaviour has changed, the internet has made it easier to source new suppliers and change supplier the minute a better price is offered. To keep customers loyal you need to show how much you appreciate their custom.

We react to different channels in different ways, and using channels with HI has the ability to add value to the relationship. In addition, HI can cement relationships on repeat orders and increase average order value.

Check your marketing schedule and see if Telemarketing or Field Sales could play a bigger role in your plans – after all, it costs 5-10 times more to acquire a new customer than keep an existing one.

A Knowledge Book is available on this subject, please click ‘How to increase customer loyalty by using the right marketing channels’ to view the PDF. 

What’s the biggest challenge facing B2B Marketing?

Holger Schulze recently set a challenge on LinkedIn. He asked Marketing Managers to describe in one word the biggest challenge facing B2B Marketing.

Over 260 senior managers and directors took part and we have analysed all the responses and formed a word cloud of the top 50.

Data and Content came top as the biggest challenge for B2B Marketing, with Relevance running a close second. The top 10 are as follows:

• Data
• Content
• Relevance
• Differentiation
• ROI
• Creativity
• Insight
• Trust
• Value
• Budget

The value of good Data in B2B telemarketing is immediately apparent the moment you make a call. That’s why SCi Sales Group have invested in the collation and constant cleaning of a database that holds 2.9m data points in the UK and 1.8m in Europe. It’s our most precious resource.

We also agree with our marketing colleagues that Content and Relevance are a big challenge. A B2B call lives or dies by whether the message is relevant to the target audience and has substantial content. These are key questions we debate in the Workshops we organise with clients for all our campaigns.

Do you agree with the results of the LinkedIn question? What’s your view on the biggest challenge facing B2B marketing… and can you describe it in one word?

How does telemarketing compare to other marketing channels?

B2B Marketing magazine recently published an insight into the effectiveness of various business-to-business marketing channels. It looked at current trends and attitudes in the UK market.

One question revealed some interesting results. UK B2B Marketing Managers and Directors were asked “Which type of marketing channel has proven to be the most/least effective for your business?”

The results were displayed as a percentage of respondents, but we have analysed the figures and expressed them as an Index Score. This shows the difference between those that feel the channel is effective and those that don’t. The higher the score, the more effective the channel.

We have listed the top 5 most effective channels and the bottom 5 least effective.

No surprises that email marketing tops the chart, although the reliance of Marketing Managers on digital marketing does raise the question “Whatever happened to multi-channel marketing?” – a subject we will discuss in future issues.

Some people may be surprised that in the age of digital marketing and social media that Telemarketing makes it into the top 5. We are not surprised at all. The question was about the effectiveness of marketing channels and telemarketing can still deliver results that other channels can only dream about.

If you want to view the ROI figures for some of our recent telemarketing campaigns and judge for yourself whether Telemarketing is effective please click here.

Now for the least effective channels.

Press advertising is at the bottom of the list and, surprisingly, online banner/button adverts. Sponsorship, Exhibitions and Direct Mail to potential customers also make an appearance (but Direct Mail to existing customers is considered to be effective, ranking 3rd).

How do these charts marry with your experience? Which are the most and least effective channels for you?