A principle factor contributing to the complexity of marketing automation solutions is the decision tree. Marketing automation solutions offer various graphical and script based workflow tools that are just dressed up decision trees that automate complex multistage decision problems. Below I will be comparing decision trees vs. a customer state approach.

Decision trees

Decision trees such as figure 1 are a useful to for predicting outcome and are often used to map workflows.

Decision trees are also used to do dynamic segmentation. For example all subscribers who are female and click on the Fashion1206 link in the last email sent to them. Decisions are used to determine the proper response according to a particular customer’s micro-segment in respond to an event (e.g. a contact that signed up then click on the confirmation link and then did not open the next three emails that were sent.)

Decisions trees quickly become complex. The human brain is best when tracking 7 or fewer items. Figure 1 shows a multi-level decision tree for a simple process. Imagine trying to build a sophisticated email programs, let alone a cross channel marketing program. Building a complex marketing automation programs often requires dedicated resources in order to ensure consistent rules setting at every level of the decision tree. Unfortunately dedicated resources are something that is in short-supply in most marketing departments.

Customer State

Customer state is a means to map workflow processes according to a customer’s state at the time of a customer event (e.g. signs up for a newsletter). A customer state diagram (figure 2) maps an event / action scenario similar to the decision tree above yet is much simpler to understand. Reading from left to right the scenario is as follows:

1)      Contact

a) When a contact subscribes then send them a confirmation email and move then to an Unconfirmed state

2)      Unconfirmed

a) When the contact clicks on an email ling then if they are a female then send them the Welcome email and refer and friend email else send the Welcome email only. Move the contact to a Subscriber state
b) If the contact does nothing for 3 days then if they are a female then send the Welcome email and refer and friend reminder
c) If they bounce then flag them in the CRM

3)      Subscriber

a) When the contact clicks on the link then send them a targeted promotion.
b) If they refer a friend then send them the Confirmation email promotion
c) If they bounce then flag them in the C

Only events that are relevant (i.e. possible or interesting) to the customer’s state need be considered when describing a scenario.  For example, the only events that need to be considered when the subject is in an Unconfirmed state in Figure 2 are whether they click on a link, do nothing for three days or bounce. Customer state uses a simple event / action paradigm such as “When a customer signs up (event) then Send a confirmation email (action)”.

Since each action/reaction set is according to the contact’s state there are a finite number of events to consider for any given customer state. Rather than building large decision trees that must describe all possible outcomes and are hard to understand, customer state permits the design simple marketing scenario, such as acquisition, conversion, retention. Contacts can be in different states within each scenario. The various simple scenarios can be combined to create a rich marketing ecosystem.

The benefit of this approach is that scenario design is simple and manageable whereas decision tree modeling is constrained by its complexity. Customer state marketing significantly streamlines cross channel marketing program design and implementation. It enables an agile marketing and removes the need for dedicated marketing resources to build the marketing automation workflow.

Conclusion

As I said in the opening of this article, the true test of a marketing automation solution is the ease of use when building complex scenarios. Customer state has the distinct advantage of being easy to understand, is simple to implement, and is significantly faster to market that decision tree-based solutions.

Whatsnexx was not created to replace any of these solutions. It’s the opposite actually. Whatsnexx was created to help you leverage these solutions with maximum effectiveness and efficiency so that whatever you do, you are always putting each individual customer at the center of the equation. You can do this without needing to consolidate any data; so you can do it much faster, and with much greater flexibility and agility. Result? Ultimate customer engagement and maximum ROI!

You likely have all the data. Maybe it’s scattered, or maybe you’ve taken the time and invested the money to consolidate it.  How do you keep it constantly up-to-date across all systems without continual integration and consolidation? And how will you ensure you apply that knowledge to every single communication on every channel and at every touch point from now on? That’s where Whatsnexx comes in.

Before pushing the button and sending out that Thank You and Upsell, stop and see who Jennifer is to make sure your message is relevant and you get the biggest bang for your buck. That’s what Customer State Marketing is all about.

Just because 1,000 customers bought the same jeans as Jennifer, should you send the same message to each of them?  By building your campaigns and programs using the Whatsnexx interface and connecting it with your email provider, CMS, Facebook page, shopping cart, POS, CRM, or any other system, it will receive the customer event data (who, what, when, where, why and how), find her in the State she is in, and then trigger your communication engines to send the precise message according to your mapped out strategy!

We’re just scratching the surface…

Now imagine that every time Jennifer does something, or even does nothing, Whatsnexx knows about it. Whatsnexx allows you to determine if that changes her State, and based on that, send out the absolutely most relevant communications. Plus, you may have several programs going that may affect Jennifer – Customer Satisfaction, Contest Management, Reactivation, Loyalty Program, Retention, Birthday Program, Seasonal Promotions… in Whatsnexx you can connect all your programs and scenarios so they look for Jennifer in each one, determine her State in each one, and based on the rules you set out, ensure she only receives the communications you want.

So one of the key unique advantages of using Whatsnexx is the depth of what you can do which is why while other solutions say they help you deepen customer engagement, that may be somewhat true, but only Whatsnexx and Customer State Marketing can actually deliver.

Companies are selected based on creativity and innovation whether in a new technology area or optimizing existing technology in an innovative manner. This year’s Branham300 data illustrates that many of Canada’s ICT elite turned the corner in 2011 and changed gears from survival to growth mode.

“I’m proud of the Branham300 appreciation. It recognizes the unique value of the innovation we bring to marketers through our Cross Channel Marketing platform,”   said Alain Paquin, President and CEO of Whatsnexx, and well-known serial entrepreneur in the marketing and technology sectors. “Some of the reasons our clients are drawn to the Whatsnexx solution are that it is cost effective and can be implemented in a matter of weeks with instant results and ROI,” further explained Paquin.

“Our prestigious clients such as L’Oréal, NAPA, Rubanco BuroPLUS and YPG have recently experienced the benefits of our solution, and this type of industry recognition further supports our ambition of becoming a market leader.”

See the Branham300 Top 25 Up and Coming ICT Companies list at: http://branham300.com/index.php?year=2012&listing=4

About Branham300 2012
Branham Group's ranking of the top 300 Canadian Information Technology (IT) companies reflects the ever-changing, yet ever-present IT Sector. Just as the IT industry continues to evolve, so does the Branham300. The Branham300—the most comprehensive listing of publicly traded and privately held IT companies in Canada—is published annually.

For more on the Branham300, including the complete list of all companies recognized in 2011, please visit www.backbonemag.com/branham300 or www.branham300.com.

National Automotive Parts Association ("NAPA"), the world's largest auto parts distributor, selects Whatsnexx, a leader in cross channel marketing solutions, to boost its new NAPA Know How campaign by offering personalized communications to its customers across multiple channels.

NAPA just launched a new nationwide TV ad campaign as part of their new brand positioning called NAPA Know How. The goal is to increase share of market by driving more consumers to their stores. “They needed a solution to back their TV campaign with online and offline acquisition initiatives.” said Alain Paquin, President and CEO of Whatsnexx.

“NAPA’s challenge was to quickly launch an acquisition campaign by leveraging their POS and CMS applications without regard to existing IT constraints – while getting a positive ROI right from the first campaign.” said Alain Paquin, President and CEO of Whatsnexx. “From there, we will help NAPA build retention and profiling programs with targeted, customized offers throughout the year thanks to our agile methodology that focuses on delivering a series of quick successes step-by-step.”

Feel xpose friendly atmosphere

Montreal, March 14, 2012 – Cloud technology is expected to create millions of new jobs around the world and will be an important force in inspiring the business innovation needed to restore global economic health, according to a new IDC study released today. The study, commissioned by Microsoft, found that by the end of 2015, nearly 14 million new jobs will be created worldwide, and just over 70,000 across Canada.

In Montreal, new jobs related to the cloud will increase an average of 20 per cent annually, resulting in almost 7,800 by 2015.

The cloud is a web-based way to process, manage and store data – an IT solution so cost-effective that businesses of all sizes are moving away from the expensive maintenance of legacy systems, and instead opting to build on top of the cloud’s common infrastructure. By using the cloud’s global scalability, businesses can, in turn, invest those savings directly into business innovation.

Building a customer relationship marketing program begins with a list of people with whom you wish to establish and maintain a relationship. This relationship is built on identifying their needs and then fulfilling them. And like all lasting relationships, it takes ongoing listening and communication skills, and trust of course.

Whether you’re selling a product or promoting a sale, supporting a non-profit newsletter, planning an event or blogging about your cooking, you need to gain a contact’s trust and make it worth their time to interact with you. So before you start building your list you better have a good product to sell and great service to back it up.

And of course make sure you’re targeting the right people, otherwise you’re wasting your efforts and marketing dollars. As you build up your list your target will begin to define itself, so at first just do the best you can with what you have!

The great news is that building a list is easy and something you can do for a few dollars. Getting people to actually join your list, or opt-in to it, is a little harder as it usually requires the use of incentives such as discounts, contests or cross-channel initiatives. But believe it or not, it’s really quite simple to do. And can be very affordable if done properly with amazing return on your investment.

What you need to get started

Here’s what it typically takes to capture new contact information and start building that invaluable list.

   1. A sign up form
   2. A database
   3. An email marketing solution
   4. A landing page

Basically think of this as an automated List Feeder. You provide them an easy way to sign up (a web form link from an email push is easiest, paper is messy but can be accommodated), they submit the form by pushing a button and land on a thank you web form, and the dialogue has already begun!

Less is more for better results

It is best to start simple where the sign-up needs to provide only very minimal information (helps build that trust I mentioned earlier). Right now the most important thing is to get their email address so start with that.

The thank you email could contain a link leading to a Profiler Web form where you ask for more information so you could in return send them more personalized and relevant offers - for  example a coupon specifically for a product or category that interests them, or a VIP invitation to a local event. This is a very common and effective technique. First and last name allow for personalized communications, a method proven to yield a higher response rate. Postal code allows for segmentation. Other useful contact attributes include Salutation (Mr. /Mrs.), interest categories and age group to name just a few. Note that some attributes such as birthdate and telephone number are highly sensitive for some people. Don’t ask for them if you don’t need them, and make them optional if you must ask for them.

Remember that the more information you ask for the less likely the contact will be willing to provide it (i.e. the more questions you ask the lower the response rate). It is therefore best to ask a few pertinent questions.

Always give them options

Always give your contact an easy way to end the relationship. The easier you make it to opt-out from future communications the likelier the contact will opt-in again at a future date. If you make it difficult then they will never sign up again. Put an unsubscribe link on all communications, and on your web site and web forms. You don’t want to encourage them to unsubscribe by plastering it brightly all over the place; however it should be easy to find: trust, trust, trust.

Advertise

To get people to sign up to your list you need to get the word out and drive eyeballs to your sign-up form. You can do this through flyers, banner ads, posters and signage, radio, TV, direct mail, point of sale, call center, Facebook, Twitter, LinkedIn and even skywriting.  Whatever you do, your offer needs to be compelling to your audience. Speak in terms of your markets interests, needs, pains and how you can help them. Give them an incentive to interact and then respond in a timely and personal way and you are well on your way to building a strong relationship program with your customer.

Next up

• Validating email addresses and double opt-ins, respecting privacy laws, rental lists vs. organic
• Leveraging your lists from day 1: going viral, profiling, etc.