Survey: Online Marketing Ups Offline B2B Sales

Business-to-business marketers should be investing in a 2019 omnichannel marketing plan to maximize the online impact on offline buying, at least according to the latest research from Boston Consulting Group and Google. An optimal, best-practices mix of digital engagement channels—such as search, display, video, social media, e-mail and websites—with traditional print catalogs/mail, sales calls and brick-and-mortar stores can increase the marketing contribution to sales by 3% to 8%, BCG has found. On average, two-thirds of B2B buyers of industrial machinery, industrial supplies, and packing and shipping products and services indicated in a new BCG survey that their purchase decisions had been significantly influenced by digital, even though the majority of buying journeys end with an offline purchase. The survey revealed that some 58% of industrial-machinery purchases were significantly influenced by online activity, even though 100% of the purchases were made offline. For industrial supplies, 88% of buyers performed some form of online research prior to purchase and 69% then purchased online. Among packing and shipping buyers 54% were digitally influenced, with 42% purchasing online and 58% buying offline. But it is the differences underneath the online influence data that reveal the opportunities for boosting sales. For example, spending to boost online branding ads/engagement can pay off when 75% of online industrial machinery researchers said that they consider two or more brands at the start of their buying journeys, compared with 55% of those who engage in offline research only. At the same time, 58% of industrial-machinery buyers said that they begin their online search with a product, rather than a brand, in mind. For these researchers, the manufacturers’ websites become primary points of influence. One of the more encouraging findings in the BCG study was that online business researchers make more follow-up purchases, especially if there is engagement post-sale. When manufacturers of industrial machinery engage their customers digitally after an initial sale, those customers are three times as likely to research supplementary products, twice as likely to purchase them, and three times as likely to repurchase the product. Buyers of industrial supplies engaged digitally post-sale are eight times as likely to purchase a supplementary product of the same brand and twice as likely to repurchase the same product. Effective after-sales digital marketing activities include promoting online account sign-ups, encouraging app downloads, maintaining regular contact through e-mail or "nurture" communications, and ensuring a positive overall customer experience with the product or service. For optimal results, B2B marketers need to measure across the entire buying journey to connect digital marketing expenditures to offline sales. BCG found measurement innovators use a variety of techniques—such as customer research, marketing-mix modeling, multi-touch attribution modeling, matched-market testing, and direct match-back approaches. For examples, go to our onsite blog post at https://www.acculistusa.com/new-survey-online-marketing-pumps-offline-b2b-sales/

Arts Fundraising Study: Invest to Reap More

Any of AccuList’s performing arts marketing and museum/zoo marketing clients that fret over investing in fundraising efforts in 2019 should take a look at the recently released "DataArts Fundraising Report" from Southern Methodist University. Basically, the report concludes, arts and cultural organizations that make smart investments in fundraising reap more dollars, with individual donors a “vital source” of contributions. Looking at fundraising by 2,421 organizations across 11 different arts and cultural sectors between 2014 and 2017, the study found good news for many marketers even though the overall ROI on every dollar spent on fundraising declined from $8.80 in 2014 to $8.56 in 2017. This reflected issues in select sectors. Seven sectors—including performing arts companies, orchestras and operas—actually saw an increase in return on fundraising over the period. The biggest ROI gain, adjusting for inflation, was a 28.8% bump for community-based organizations. But gaining sectors were offset by ROI declines for art museums, dance companies and theaters. Another encouraging sign was an increase in the average individual donor contribution over the four-year period. For arts and cultural fundraising, size matters, but in an inverse fashion, the report found. Small- and medium-sized organizations increased the returns on their investments in fundraising over the four years, while larger organizations had steadily declining ROI. Individual donors are important for success, per the report, especially outside of the big metro areas where government support, foundations and corporate donors help foot expenses. But locations vary widely in terms of revenue successfully tapped. For example, New York organizations had the highest average number of corporate donors at 12 and also had the highest percentage of expenses covered by government support (9%). On the other hand, Chicago reaped the most from foundations, with 7% of expenses picked up by foundation support. For more report detail, go to https://www.acculistusa.com/arts-fundraising-study-invest-to-reap-more/

Use 2019 USPS Promotions to Up Mail ROI

AccuList reminds direct marketers of the raft of 2019 U.S. Postal Service mailing promotions designed to increase response, engagement and ROI via new digital technologies and printing techniques, as well as traditional mail tactics. The registration and promotion periods have already begun for a Tactile, Sensory and Interactive Mailpiece Engagement Promotion that will last from February 1 to July 31. With the goal of encouraging marketing mailers' use of advanced print innovations in paper and stock, substrates, inks, interactive elements and finishing techniques, all USPS Marketing Mail letters and flats are eligible for the promotion’s upfront 2% postage discount. Registration has also begun for the Emerging and Advanced Technology Promotion, open to First-Class Mail and USPS Marketing Mail. The promotion, also offering an upfront 2% postage discount, spans the March 1 to August 31 period this year and is designed to help direct mailers leverage emerging technologies such as Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), Near Field Communications (NFC), and Video in Print, as well as multi-channel mail integration with Addressable TV or digital assistants. Hurry to take advantage of the Earned Value Reply Mail Promotion since registration closes March 31. The April 1-to-June 30 promotion rewards mailings using Business Reply Mail (BRM), Courtesy Reply Mail (CRM) and Share Mail envelopes and cards by providing them with a financial benefit when customers put those pieces back in the mail. New participants will earn a 3 cent credit per counted reply piece between April-June. Created by USPS to encourage bill and statement producers to invest in dynamic/color printing technology, the Personalized Color Transpromo Promotion also offers an upfront 2% postage discount. Registration starts May 15 for incentives running from July 1 to December 31. First-Class Mail pre-sort and automation letters—bills and statements only—that meet the dynamic print and personalization requirements will be eligible for the upfront 2% postage discount. The Mobile Shopping Promotion benefits marketers who send regular and nonprofit Marketing Mail letters and flats combining mobile with print, with registration starting June 15 for a promotion lasting August 1 to December 31, in time for the holiday season. There are many new mobile bar-code formats, in addition to payment QRs, that can be leveraged to qualify for the upfront 2% postage discount. Finally, this year’s Informed Delivery Promotion pushes the new USPS omnichannel tool that allows residential consumers the free ability to digitally preview letter-sized mail and manage scheduled packages on their computers, tablets, or mobile devices. Regular and nonprofit Marketing Mail letters and flats, and First-Class Mail pre-sort or automation letters, cards and flats will be eligible for an upfront 2% postage discount. Register starting July 15 to take advantage of the September 1 to November 30 promotion period. For more, go to https://www.acculistusa.com/mailers-can-use-usps-2019-promos-to-spur-roi/

AI, Data, Culture Impact Incentive Products Trends

Incentive and recognition products marketers should take a look at The Incentive Research Foundation’s “IRF 2019 Trends Study” for tips on where the market is headed this year. With economic growth and optimism strong, companies are continuing investment in incentive and recognition rewards, with considerable room for market expansion for product suppliers: 84% of businesses are now using non-cash rewards, but past studies show close to 60% of merchandise and gift card rewards are still sourced through retail versus specialized agencies or providers. One factor pushing the recognition market is the trend to “talent culture” creation by C-suite executives, with “The Incentive Marketplace Estimate Research Study” finding more employers than ever offering non-cash rewards aimed directly at building relationships, encouraging inclusion and knowledge-sharing, and promoting engagement. Why? IRF’s studies as well as academic research are finding that when executives combine economic incentives with recognition and well-designed non-cash rewards, they promote “corporate citizenship” behaviors and work environments that attract and retain top talent. So overall use of merchandise rewards is expected to increase, per IRF, particularly among corporate audiences, with a net increase of 33% compared to a net 20% of suppliers and third-party providers. The use of logo’d brand-name merchandise dominates, with 75% of corporate programs using these items as rewards. Other popular rewards are electronics (63%) and clothing/apparel (59%). Meanwhile, gift cards continue to be a popular option within reward and recognition programs, with open loop cards (that can be used anywhere) and brand-specific cards both enjoying high utilization, and e-gift cards gaining momentum. Of particular note, IRF's most recent study urges reward program designers and suppliers to understand how predictive analytics and AI are changing the market: "In the incentives field, predictive analytics and machine learning are helping program designers understand who is drawn to which types of rewards, and how those rewards should be shaped and presented to produce the best outcomes on an individual basis." For more, see https://www.acculistusa.com/ai-data-talent-culture-boost-incentive-recognition-impacts/

Promo Products Trends: USA-Made, Retail Quality

The “2019 Ad Impressions Study” by the Advertising Specialty Institute has many nuggets to help AccuList’s promotional products marketing clients woo targeted buyers. For example, promo products purveyors can point out how their items beat other ad media not only with high ROI, thanks to a cost per impression as low as a tenth of a cent, but also high impact, with consumers under age 55 preferring promo products over all other mediums for advertising, including newspapers, radio, magazines, television, internet and mobile. In fact, consumers are nearly 2.5 times more likely to have a positive opinion of promotional products compared with online advertising, per ASI. When it comes to consumers’ favored promotional products, ASI’s study shows the highest ownership for writing instruments (89%), drink ware (88%) and T shirts (80%). But winning even with a popular category means keeping up with trends. Among the latest spotted by Promo Marketing Magazine at the 2019 Promotional Products Association International (PPAI) Expo is the boost in re-usable, environmentally friendly products now that cities and states are banning single-use plastic bags and straws. A return to natural and vintage is not surprising in this anti-plastic mode, with a rise in the popularity of wooden pieces, from cutting boards to awards. Plus, multi-function items continue to grow in popularity, with suppliers adding tech functions to classic promotional items, so that water bottles double as Bluetooth speakers and business card holders can be used to prop phones.The marketers at Delta Marketing Group (DMG) get even more specific about trends in design. As more retail brands become available as customizable promotional products, even non-brand items are starting to emulate the retail look and feel, the agency points out. Quality over brand-logo-blasting also is taking hold, for example with branded apparel using small embroidered patches, subtle custom tags, and understated tone-on-tone colors instead of large logo imprints. Creative materials and refined finishes are forecast to come to the fore in 2019, with bright colors, matte and soft-touch finishes, and heathered and burlap fabrics. Plus, the made-in-the-USA trend stays strong, per ASI’s study. About 53% of consumers have a more favorable opinion of an advertiser if the promotional product is made in the U.S. versus elsewhere, and that sentiment is especially strong in New England, where 73% of consumers prefer buying made-in-the-USA items. For more, see https://www.acculistusa.com/watch-for-2019-promotional-products-to-embrace-re-use-multi-use-quality/

Fundraising Challenged by Gen Z, E-mail, AI

For nonprofit fundraising, 2019 will be another challenging year. Successful direct marketers will need to adapt to changes in demographics, technology and donor targeting, to name just a few trends recently cited by the Donorbox Nonprofit Blog. For example, Donorbox is sounding the alert ahead of the next demographic wave. While the Millennial generation is still the biggest cohort in the workforce, Gen Z is arriving. Born after 1996, they now make up an estimated 27% of the population and will account for 40% of all consumers by 2020. How are they different? The "2017 Global Trends in Giving Report" found that Gen Z members are interested in giving to many different causes, especially those involving youth, animals and human services. But to win the attention of these digital natives, messaging must be concise and engaging, offering an immediate experience that cuts through the marketing noise they routinely filter out. Gen Z is also the first mobile-only generation, so website, e-mail and donation forms must all be optimized for mobile. Meanwhile, remember that today's donors expect a personalized, targeted approach that takes into account demographics, giving history, etc. That means segmenting donor and prospect lists for specialized messaging to account for generational differences and other demographics. It means tailoring the "ask" to the prospective donor's income and giving history. It means refining giving/donation pages to highlight projects and wording that will resonate with the target donor group. E-mail is a channel that can be easily personalized, and despite its recent bad rap, a revisit of e-mail strategy is worthwhile. Research shows that donors willing to donate through e-mail rose from just 6% in 2012 to 28% in 2018. Second, low-cost e-mail has an ROI of 122%, much higher than direct mail, social media and paid search. Finally, fundraisers need to make more use of Artificial Intelligence (AI), perhaps by creating a chatbot to interact via messaging services like Facebook Messenger, Slack, Telegram, etc. to handle donations, register members and distribute information about programs and services. AI also can personalize donor journeys based on real-time behavior to encourage contributions and can weaponize data for more cost-effective donor development. For example, a donor's giving and volunteering history, event attendance, affiliations, relationships, and data from wealth screening tools can all be analyzed to predict a potential donor’s likelihood to give a major gift. For more, see our website blog at https://www.acculistusa.com/fundraising-challenges-include-gen-z-e-mail-ai/

SEO, Mail, Experiential Tactics Can Spur Events

Per the latest industry surveys, trade show and conference marketers can look forward to solid event industry growth in 2019--along with potential marketing strategy shifts in an increasingly competitive landscape. Event software firm Bizzabo's survey of over 1,000 mid- to senior-level marketers at major companies in 2018 found good news for the event industry: Most respondents (41%) consider live events to be the most critical marketing channel in achieving business outcomes (out of 9 possible channels), a 32% increase from 2017. Business execs are also doubling down on live events. Between 2017 to 2018, the number of companies organizing 20 or more events per year increased by 17%. Additionally, the vast majority of respondents (95%) believe in-person events provide attendees with a valuable opportunity to form connections in an increasingly digital world. This reflects a 12% increase compared to 2017. Meanwhile, Eventbrite, an online event management and ticketing firm, surveyed 1,200 event professionals last year to see how marketers are likely to spend in 2019. Word of mouth, an effective tactic for 63% of event marketers, is bolstered by investments in social media marketing, which 49% of event creators placed among the top three most effective drivers of ticket sales. E-mail rounded out the top marketing channels per those surveyed, with 38% of event professionals relying on it. However, with 89% of attendees using search for purchase decisions, Eventbrite foresees a necessary expansion of SEO efforts. There's definitely room for growth, with almost half (46%) of event professionals saying they aren’t using SEO. And, while e-mail is cited among the favored marketing channels, direct mail continues to turn in higher response for the 41% of event pros that use it. Eventbrite thinks the 50% who cite competition as their biggest challenge will want to reconsider the edge offered by adding mail to their arsenal. Meanwhile, experiential marketing is a hot new trend, engaging attendees by using branded experiences at an event, as part of an event, or in a pop-up activation not tied to any event. Yet Eventbrite found that close to 60% of event creators are not using experiential marketing, so innovators will have the edge. For more, see our website blog at https://www.acculistusa.com/for-2019-edge-event-pros-shouldt-overlook-direct-mail-seo-experiential-marketing/