As marketers, we all understand the art of the “ask.” We ask customers to click through, call, read or respond. We utilize content tools from websites, advertisements, public relations and collateral to encourage customers to explore and investigate...sometimes even just buy. So here is our “ask”: get involved and get your company involved. The CMO Council is supporting the Red Cross and its Hurricane Relief efforts and we are asking you, both personally and professionally, to join this effort.

The Red Cross responded to a record number of tornadoes this year, the worst flooding in the Midwest in 15 years, an early wildfire season and an active hurricane season—disasters that steadily depleted the Disaster Relief Fund. Hurricane Gustav, which made landfall on September 1, is estimated to cost the Red Cross $40-$70 million and the organization has only raised a fraction of what is needed to support affected families. Early cost estimates indicate the Red Cross response to Hurricane Ike may exceed the cost of Hurricane Gustav. And, the season isn’t over.

We as individuals and as a community can come together and aggregate our significant resources and channels to help replenish the disaster relief fund. There are, of course, the traditional channels of phone (1-800-REDCROSS) or online (www.redcross.org). But now, the Red Cross has gone mobile, making it easier to make donations via text. The Text 2HELP™ Initiative, a cooperative partnership between the Red Cross and the Wireless Foundation, allows users to simply text message the keyword “GIVE” to “2HELP” (24357) and a $5 donation will be made to the American Red Cross Disaster Relief Fund. Contributions will appear on monthly bills or be debited from a prepaid account balance.

We encourage corporate marketers to use their internal and external communications channels to notify employees, distribution partners, customers and suppliers about how to contribute to the American Red Cross Disaster Relief Fund. This might be through email, newsletters, text messaging, digital signage systems, web sites, corporate intranets, online banners and buttons, online community discussions, internal TV networks, public service ads, and place-based messaging. You can also help increase the online buzz and word-of-mouth in social and trusted business networks about the pressing need to assist those suffering from these natural disasters.

The Red Cross has provided various forms of media to help us get the word out, from television PSA scripts to animated online banners. Don’t hesitate to contact me directly to get these links so you can be part of this tremendous effort.

Until next month!
Liz Miller
VP, Programs & Operations
CMO Council

John Ellett is CEO of nFusion, a marketing agency that helps companies plan, execute and measure customer engagement programs in today's complex media landscape. John is a former Dell marketing executive and a frequent lecturer at several universities. He can be reached at jellett@nfusion.com or his blog at www.marketing-has-changed.com.

If you are like most classically trained marketing executives, the concept of segmentation has been at the heart of your marketing planning efforts for decades. But in this age of evolving digital capabilities, marketing is changing and it’s time to reexamine the role segmentation plays in your marketing planning process.

Historically organizations have used segmentation to focus limited resources on discrete, yet homogeneous subsets of the market where you could win. By focusing on specific segments, you could identify underserved needs, hone your value proposition and align your organization to execute tailored sales and marketing programs. This approach, coupled with the concept of brand positioning, helped you stand apart from undifferentiated competitors who tried to be “all things to all people” and, in the process, allowed you to distinguish your brand. So what has changed? I believe that two fundamental assumptions behind traditional segmentation approaches are increasingly irrelevant and that new approaches are more appropriate.

The first assumption is that fundamental trade-offs in product design require you to select which features to keep and which ones to leave out. In making this decision, you focused on the customer types for whom you wanted to optimize your solution, while sacrificing other customer types. However, with today’s mass-customization of hardware products and the infinite tailorability of software and digital services, this need for forced trade-offs is often unnecessary. You need a business system and product approach that can deliver a great experience for customers as they design products to suit their exact needs.

The second assumption behind traditional segmentation is that your message needs to be tailored to large homogeneous audiences. This is a result of the limited flexibility of traditional mass communications systems that buyers used to use to inform themselves about which products best met their needs. However, with today’s search engines and other digitally delivered, customer-controlled communication options, you have the ability to talk to an individual personally instead of having to address a more generalized segment. This can allow you to make a fundamental shift in your approach to targeting, away from demographic segments and toward behavioral patterns.

Behavioral targeting is a powerful concept that should not be restricted to the limited, technical context of digital advertising. It can have a transformative effect on your marketing and media planning. Instead of asking the questions “what are the demographics of the ideal segment” and “what media has the lowest CPM to reach it,” ask the following questions:

• For people actively seeking solutions to problems that you solve, what activities are they participating in to get answers? By targeting people who have identified themselves as interested parties based on their behavior, you are targeting the most qualified prospects available. For example, instead of targeting small business decision-makers who are likely to buy a notebook computer, get in front of buyers whose activities indicate that they are in the market for a business notebook. Based on the search terms they use, the articles they read online and the forums and blogs that they visit, present customized messages that connect with their self-identified interests. This high degree of contextual relevancy can often lift results significantly.
• What are the triggers that predict buying behavior for your products or services? For small business phone or networking systems, office relocation can be a catalyst for buying a new system. For consumer notebooks, students going off to college correlates with product purchases. For enterprise software, regulatory changes, such as HIPPA and Sarbanes-Oxley, create new demand. By identifying the business or consumer triggers correlated your category, you can target the behavior and package solutions that address the related issue. This not only improves the efficiency of your media plan, but increases the effectiveness of message delivery because of its high relevancy.
• What online behavior is predictive of category interest? By defining these patterns and buying media that targets the individuals who have exhibited these behaviors, you can reach your most ideal prospects. For example, someone who reads product reviews for digital cameras and also visits travel sites might be in the market for new camera for an impending trip. Reach these potential customers efficiently by buying behaviorally targeted impressions across a broad network of online sites rather than just buying dedicated ads on a camera review site. While there are limitations to this approach, targeting these behaviors is often much more effective than targeting demographic segments at a lower CPM.

As you embark on planning for the new year, rethink your approach to segmentation. By continuously asking yourself and your team to think about behaviors, not just demographics, you may be surprised with the new insight that you develop. That insight can then be used to transform your targeting strategy, your value proposition and your media plan. In a challenging economic environment, and faced with increasing competition, this could be the edge you need to develop a winning game plan.

Behavioral Targeting: Creep Into Your Customer’s Life without Creeping Them Out
Republished courtesy of TRUSTe

TRUSTe helps consumers and businesses identify trustworthy online organizations through its Web Privacy Seal, Email Privacy Seal and Trusted Download Programs. TRUSTe resolves thousands of individual privacy disputes every year. Through extensive consumer and Web site research and the support and guidance of many established companies and industry experts, TRUSTe has earned a reputation as the leader in promoting privacy policy disclosure, informed user consent, and consumer education.

Behavioral advertising, the anonymous or pseudonymous tracking of online activities for purposes of providing more targeted advertising and content, promises great potential for advertisers and publishers to build more relevant and trusting experiences for their users. But if you are thinking about using social or behavioral advertising because traditional display and email are yielding deplorably low response rates - don’t cross that fine line between creeping in and creeping out. Currently consumers are unhappy with behavioral targeting practices, and now legislatures are getting involved. The New York State Assembly has plans to impose legal restrictions on the ways in which personal data is collected and used.

In line with a proposed New York State bill, a recent consumer poll conducted by TRUSTe and TNS Global indicates consumer demand for more transparency and user control around behavioral targeting. The survey provides insight into how marketers can make behavioral targeting more welcoming from a consumer perspective. Finding the right balance between wowing customers with superior customization and simply freaking them out will preserve consumer trust and help prevent state and federal legislation from curtailing your marketing plans for 2008.

TRUSTe & TNS Survey Findings
Much of the evidence collected in the TRUSTe and TNS survey points to a consumer demand for more customized online ads and for an end to irrelevant, untargeted ads most commonly observed today.

• 87% reveal that fewer than 25% of the ads they see today are of any relevance.
• 72% of consumers find online advertising to be intrusive and annoying when ads are irrelevant to their interests.
• 64% say they would prefer to see only ads from online stores and brands they know and trust.
• 55% would be willing to fill out an anonymous survey about products, services, and brands they purchase in order to limit the online ads they see to those indicated in the survey.

But, according to survey results, two main obstacles threaten the promise of behavioral targeting: 1) the lack of consumer education and understanding, and 2) the lack of transparency and affirmative choice. Consumers indicate a high level of apprehension when it comes to tracking their browsing history and express little familiarity with the term “behavioral targeting.”

• 57% of survey respondents say they are uncomfortable with advertisers using their browsing history to provide relevant ads
• Only 40% of respondents are familiar with the term “behavioral targeting.”

While advertising based on anonymous information should be embraced by privacy sensitive individuals, there is still significant unease with behavioral techniques. This is not surprising when consumers are familiar with privacy mishaps such as the AOL search data disclosure which allowed researchers to piece together several pieces of anonymous information to positively identify an individual. 71% of consumers said they were uncomfortable with third parties tracking their behavior for purposes of serving ads even when it couldn’t be tied with any PII.

Behavioral Advertising Dos and Don’ts

DO

• Matter-of-factly incorporate some disclosure of tracking and targeting as part of your product or service value proposition. Provide a “what is this” button to explain how your customization works.
• Make sure your service providers, agencies, and others are following industry standards for privacy notice and disclosure. The majority of serious complaints TRUSTe encounters are privacy breaches by marketing vendors.

DON’T

• Think you can get away with not giving your customers notice and choice. See Cathryn Harris v. Blockbuster for more information.
• Undermine your investment in building your brand for a few response points.

Targeting, Tracking & Advertising Best Practices
In order for advertisers to provide customers with more unique, relevant experiences, they must adopt a more transparent method of tracking and targeting their respective audiences. Consumers are asking for more customized online experiences, which includes giving them control over your “surveillance” of their online preferences and behaviors. The best examples of notice and choice are seamlessly integrated into Web site services and functionality.

Stricter privacy controls do not necessarily translate as negative business growth. Guess what? As with email a very insignificant percentage of your visitors and/or customers will choose to opt-out of the targeting and tracking that makes their experience more relevant. Privacy fundamentalists however, can easily end up a vocal and influential minority.

Avoiding the “creepiness factor” will ultimately determine whether consumers become more comfortable with anonymous tracking and targeting. Keeping your customers happy with your tracking and targeting methods will ultimately determine if and how government regulations will affect the future of behavioral targeting. One excellent model for transparent behavioral targeting methods is that of eBay’s AdChoice – labeling in and around ads – as an advertiser and publisher. AdChoice clearly informs consumers that tracking and targeting are taking place.

Obtaining the privacy endorsement of TRUSTe will help ensure that your marketing plan follows the above Dos and Don’ts. Displaying a trusted privacy seal will reassure your visitors and customers of your respectful business practices. Such programs offer your company guidance in managing third party vendors – particularly when it comes to emerging marketing technologies. Restricting your marketing practices to meet privacy concerns may seem counter-intuitive, but TRUSTe seal holder CheapFlights.co.uk was able to increase newsletter registrations by 26% while displaying the TRUSTe seal at the point of email collection. While TRUSTe holds licensees to more restrictive standards, the ROI is undeniable for a number of industries.

REQUEST A COPY OF the TRUSTe/TNS Global Behavioral Targeting FULL REPORT »

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