"Integrating all of the sets of services for marketing is one of those ‘valleys of death' for most companies," says Joe Grossestreuer, Seurat's executive VP of outsourcing services.
"You need a lot of different skills to integrate all those components: database management skills, including data hygiene and address standardization, market segmentation, behavior modeling, experimental designs, and end-user testing.On top of all this, all of these activities need to be measured.You can't do any of this without an ROI component."
thinks marketers should outsource their interactive campaigns."Once people understand how complex it is to integrate all the technology," he
says, "the question becomes, ‘Why would you want to build all this?Why don't you just rent it out?'"
"If you're a product manager or a marketer, you understand your business and your customer," says Grossestreuer
"We've worked with a bank who had a lot of renters as clients, which means that they are also at an age where they could be first-time house buyers," says Grossestreuer
."You can then select that group and ask them if they'd like to receive emails.We sent emails to a total of 6,100 registrants; 4,500 of them opted in. Of that 4,500, the average open rate for the seven emails we sent was 80%.Of those who opened the emails, 8% booked mortgages, in the three-month period that we ran the campaign." Seurat
often tries to optimize purchasing models."We're trying out different purchasing methods and seeing which ones work with customers," Grossestreuer
"What we mean by ‘precision marketing' is that a customer falls into this category, and so this is the right treatment for them," explains Grossestreuer
."In some areas of the country, for example, coupons work better than they do in other areas."
thinks that traditional agencies don't understand interactive marketing (we'd have to say we agree)."Traditional agencies are trying to treat the e-channel as just one other medium, but if you talk to the classic brand manager, it's not that simple.You can't just send out a bunch of emails or banner ads and call it a day.You really have to talk to the end-customer and get to know him better," Grossestreuer
Earlier in this article, we mentioned that some COOs were handed the Power Baton last year.Grossestreuer
is an ex-CPA.One of the advantages of operations and financial people running marketing is they understand how to analyze marketing from an ROI point of view, and they can talk the CEO's language. Grossestreuer
demonstrates: "If I understand that each new head count is worth $500 in margin, then it's easy for me to decide how much money I want to get paid for each new head count that I generate that they would not have generated with their [normal] marketing investment.
"In a typical campaign," says Grossestreuer
, "The consumer company would normally spend six million dollars.