Business Link NorthwestDemand-Pull Marketing

Contextually Relevant Marketing Activity and Stakeholder Engagement

Is targeting a Science or an Art form?

A presentation by

Neil Geoghegan, Corporate Resources Director, Business Link Northwest

Ged Mirfin, Chief Data Officer, Business Link Northwest

Experience + Evidence = Intelligence

Aim: Move away from Anecdotal &

Judgmental to Evidence-basedDecision Making

Aim: Move away from Anecdotal &

Judgmental to Evidence-basedDecision Making

Rel

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Relevant Evidence

Opinion-based

Evidence-influenced

Experience-influenced

Intelligencebased

Truism No. 1: You Have to Know What You’re Talking About Before People Take You Seriously

Informing the Choice Architects……… ……. or Con Trick of the century?

There is a level of Risk for Marketing Professionals:

•Option 1: Listen to the Customer and Do Exactly What They Says! – Risk being an also ran that adds little to the mix

• Option 2: Pretend to Know More Than the Customer and Risk Him Finding You To Be A Fraud. – Add something to the mix that is highly speculative.

•Option 3: Tell The Customer Something He Doesn’t Know That He Should Know and Needs To Know To Be Successful. – Create a compelling need to move the proposition forward

Push-Marketing – Historical Problem Public Sector - delivery methods take precedence over customer

demand. Concept of Market Failure. Build It and They Will Come! End-users lack understanding of Public Sector Service Offerings. Some Public Sector Brands carry Baggage Difference between Public Sector Brand Awareness and

Understanding. The Business Link Brand has historically had poor customer

intelligence. The absence of sufficient Quality Data meant:

No holistic overview Marketing efforts were Supply-Push Generic Marketing Campaigns Nationally Driven Campaigns lacked Impact and affected Brand

Awareness Operational Efficiency Suffered

It is difficult “Pushing” a Proposition that Nobody Understands and is perceived to be of Poor quality!

Truism No. 1 – “Understanding Your Customers Improves Customer Engagement.”

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Promoting

Customer

Engagement

Think Not What You Can Do For Your Customer But What Your Customer Can Do For You! – Brand Advocates

How Balanced is Your Customer Engagement?

Customer engagement - Def.: Marketing practices that aim to create, stimulate or influence customer behaviour

The Proposition

Balanced Interaction – CognitiveWhere Supplier and customer are both actively

seeking to complete the transaction

Supplier Customer

•Will Work to Source•Will discuss Requirements•Will help development•Will value Supplier & Brand

•Will Work to Supply•Will Respond to Change requests•Will develop product•Will value customer

Dissonant Interaction –Supplier Advantage “Where the Supplier does very little to complete the

transaction”

•Will Go to Great Lengths to Source•Few Supply Options•Suppliers are Often perceived as lazy & inefficient•Will Search hard for alternatives

•Will Do Very Little•Impose Change•Restrict Supply•Charge a Premium•Brand Narcissism

The Proposition

Supplier Customer

Characteristic: Price Elastic Demand

Dissonant Interaction – Customer Apathy “Where the Customer has many supplier

options” •Will be “Lazy Shoppers”•ImpulsiveRequire Instant Gratification•Have very little Brand Loyalty•Expect Product Development

•Will Work Very Hard•Be Constantly Aware of the Competition•Focus on Customer Satisfaction•Invest in Product Development & Design

The Proposition

Supplier Customer

Characteristic: inelastic Supply

Erratic Interaction – Disconnect “Where the Customer has many supplier options”

•Will Not Know Where to Go•Will Do Extensive Research •Will be Dissatisfied•Brand will be Affected•Confused Propositioning•Erratic Buyer Pattern

•Will have No Clear Marketing Strategy•Will rely on Generic Demand -Push•Will Experience Waste•Further Devalue Brand Equity

The Worst Part of the Disconnect is that people will fill the unknowns with assumptions

The Proposition

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Supplier Customer

Erratic Interaction – Disconnect “How do we plug the gaps….without guessing?”

Plug the gaps with facts, take away the

uncertainty &Market without

caveats

Brand Association

Issue Focussed Brand Identity

Market Reputation

Product Differentiation

Customer Awareness &

Understanding

Customer Advocacy

Affinity Marketing with Expert Brands

Thought Leadership Campaigns via the

Media

Targeted Direct Marketing Activity

Viral Marketing Builds Stakeholder Advocacy

Customer

Contextual Relevance

• Relevance and Engagement are delivered via Intelligent Marketing

Content to suit what we know about end users.

Contextual RelevanceCustomer Need

Recognise Needs Product Appeal

Contextually Relevant Marketing is highly Localised and Personal

This style of marketing is not possible without Exceptional Levels of Customer Insight.

Ultimately this is about understanding your audience & then delivering Messages that are Current and Relevant

Demand-Pull Marketing – the Solution 1

• Historically public sector organisations have concentrated on service delivery rather than the end user.

• DPM is ultimately about adapting to local demand

• DPM involves identifying the latent demand for a product or service rather than delivering a generic marketing message

DPM Example – Latent Demand

• Anne Example Ltd - Poultry Farmers

• Problem: Erratic Payment Patterns from Primary Customer

• Symptoms: Fluctuating Overdraft Levels – Breach of banking Covenant

• How Do We Reach This Customer?

• Generic Thematic Marketing from a Brand that is Poorly Understood?

• Or, Specific DPM Activity highlighting Root Causes and Commonality!

• Marketing Content: Sector-Wide Issues with Payment Problems. Best Practice Solutions within Industry Sector. Specific Solutions available from BLNW to Help Solve Problem.

• Outcome: Proprietor Entered into Contract Negotiations with Buyer included Strengthened Contract Clauses re: Payment Terms. Joined Pressure Group to Ensure Business Segment Voices Heard.

• Result: Improved Cash-Flow.

Demand-Pull Marketing – the Solution 2

• The marketing message is written in a way that “pulls” customers towards your proposition.

• Pull marketing strategies target customers and create awareness, interest and the motivation to respond.

• Pull marketing encourages consumer involvement. Viral distribution and supplier evangelism – this depends entirely on how good you are!

• Pull Strategies generate strong positive opinions of the supplier and their proposition enhancing Brand Awareness and Understanding

• It is essential to energise your chosen market. The Viral nature of this type of Marketing Activity can generate huge expectation levels.

• “Demand-Pull” has three Key Benefits:

1. Low Cost Lead Generation.

2. Responsive, Relevant, Current and On-Message Marketing.

3. Customer Retention & Brand Evangelism.

Truism No. 2: Good Decisions Are Impossible To Make Without Intelligent Data

How Did We Acquire the Data to Engage with Our Customers

We integrated the Business Link universe and Experian’s National Business Database

Consolidates North West Business

Universe

406k

111k

Section of database unique to Business Link – Lifestyle and Grey economy businesses

Section of database unique to Business Link – Lifestyle and Grey economy businesses

We integrated the Business Link universe and Experian’s National Business Database

19k

Consolidates North West Business

Universe

406k

111k

We integrated the Business Link universe and Experian’s National Business Database

19k

Of 150,000 Customer Interactions in the last 18 Months - 120,000 (80%) came from Experian Records

Why?

BLNW Prospect Universe

Truism No. 3:

If Segmentation and Context = Relevance

Customer Interaction occurred because we delivered Contextual Relevance for the

Businesses we contacted

then by definition

Relevance = Engagement

Context: Delivering Support to Businesses in the Current Economic Climate

• Problem 1: Identifying Struggling Businesses

• Problem 2: Finding them early enough. There are No Second Chances in a Recession!

• Problem 3: Economic Impact on Key Business Segments. How badly have they been and what is the likelihood of Commercial Failure? Can Business Support can make a difference?

• Problem 4: Policy Makers don’t have context to Make or Measure the Impact of Policy

• The Answer: Commercial Risk Data is available that offers up-to-the-minute, granular information on the Risk of Commercial Failure – Experian’s Commercial Risk Profiling System offers this service.

• The Outcome: The ability to Trend this Data means we can flag companies that are in decline as well as those experiencing growth. We can also highlight which of these companies have received business support and are now experiencing recovery.

Risk Category Description

Failed/serious adverse info Administrator or receiver appointed, bankrupt proprietor, dissolved business

Maximum risk High value of unsatisfied CCJs, accounts overdue, start-up business with adverse data, proprietor with adverse data or maiden accounts show loss

High risk Large company with weak balance sheet, medium sized firm with very weak balance sheet, combination of above average risk features, start-up with adverse trading

Above average Large company with very weak balance sheet, medium to small firms with (high levels of credit search, payment difficulty, weak balance sheets), start-up firm without adverse information

Below average Large business with weaker balance sheet/modest loss, SMEs with steady trading, small firms with directors with good record, no adverse data

Low risk Well established, accounts filed, mid to large firms with £1m of assets and £5m of turnover, good record, directors with strong records

Minimum risk Large well established firms, strong balance sheets, low value of public information

Commercial Delphi Risk Categories

Very Low Risk Low Risk Below Average Risk

Above Average Risk High Risk Maximum

RiskDissolved/

Serious Adverse Info

North West 7.76% 11.62% 23.37% 22.88% 11.31% 20.16% 2.91%

Merseyside7.50% 9.50% 20.03% 24.32% 12.11% 24.01% 2.53%

Warrington & Cheshire 7.17% 10.62% 23.82% 20.80% 15.32% 20.79% 1.48%

Cumbria 11.67% 16.65% 29.24% 24.19% 6.80% 10.28% 1.18%

Lancashire 8.45% 14.20% 27.70% 24.77% 8.31% 14.24% 2.34%

Manchester 7.07% 10.74% 21.31% 21.94% 11.57% 23.06% 4.31%

The Commercial Risk Profile of the North West

This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.  

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk

Dissolved / Serious Adverse

Information

7.76% 11.62% 23.37% 22.88% 11.31% 20.16% 2.91%

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

7.50% 9.50% 20.03% 24.32% 12.11% 24.01% 2.53%

North West

Merseyside

Sefton

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

11.4% 11.0% 18.6% 8.9% 13.7% 27.0% 1.0%

Further Segmentation Increases Relevance

This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.  

Sefton

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Dissolved / Serious Adverse Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%

Analysis of the Sefton Segment increases relevance further

This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.  

Sefton

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Dissolved / Serious Adverse Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%

Analysis of the Sefton Segment increases relevance further

Risk Micro Band Number of Companies Percentage

1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%

Sefton – Maximum Risk Businesses

This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.  

Sefton

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum Risk Dissolved / Serious Adverse Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%

Analysis of the Sefton Segment increases relevance further

Risk Micro Band Number of Companies Percentage

1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%

Sefton – Maximum Risk Businesses

Drill into the highest of the high riskBusinesses in Sefton

This information is based on data provided by Experian and has been subject to further analysis by Business Link North West.  

Sefton

Very Low Risk Low Risk Below Average Risk Above Average Risk High Risk Maximum RiskDissolved / Serious

Adverse Information

7.16% 9.99% 21.03% 23.12% 9.43% 27.52% 1.75%

The granular view of Sefton allows us to put forwardMarketing messages which have real resonance

Risk Micro Band Number of Companies Percentage

1 1,147 40.6%

2 329 11.6%

3 399 14.1%

4 576 20.4%

5 375 13.3%

Sefton – Maximum Risk Businesses

This information is based on data provided by Experian. The data has been subject to further analysis by Business Link North West.  

So What Did We Do Next?• So we decided to Contact all the Finance and Professional

Companies

• Highlighted the 3 Current Issues in the Financial Markets that were causing concern:

• Liquidity• Trade Credit Insurance• Payment Terms from Primes

• What did we offer: Specific Advice, Access to Finance, Cash Flow Management, Business Performance Benchmarking, Loan Guarantee Scheme

• Key Point: These Products already existed. The Delivery of the Message unlocked latent demand

Direct Marketing

Plugging the gaps 1

Need: To Achieve High Levels of Awareness and Developed

Understanding

Solution: Maximising the Take-Up of Product & Increasing

Service Consumption through Optimising Lead Generation

and Improved Customer Targeting

Plug the gaps without guessing

Customer Awareness & Understanding

Targeted Direct Marketing Activity

Customer

Crunch Time For Bolton Businesses• Jointly branded campaign

with Business Bolton

• Key Messaging delivered to businesses within the Bolton area, about the kind of help and support available to them during the economic downturn.

• Campaign delivered via a combination of Direct Mail and eComms Channels

Crunch Time For Bolton Businesses

Brand Building & Enhancement

Plugging the gaps 2

Need: To Associate BLNW Brand Locally Accessible Service Offering which is Focussed on Local Need

Solution: Evolving a Strong Local Brand Identity focussed on Issues and Themes specific

to North West Businesses

Plug the gaps

without guessing

Focussed Brand

Identity

Customer

Brand Aware

Supplier

The BLNW Brand: Guiding You On Your Journey

• Email Marketing Campaign designed to drive Traffic to New BLNW Web-Site and Knowledge Portals

• Tailored Advice on Cash-flow Management and Late Payment.

• Campaign delivered via Highly Targeted Email Broadcast and Inserts in Subscription-Based Electronic News Letter. Key element of “the Journey” Marketing Campaign

Beat the credit crunch > Manage cashflow

Manage cashflow: understand the essentials

Prevent late payments

Events Marketing

Plugging the gaps 3

Need: To Differentiate Product Offering from Other Players in

the Marketplace

Solution: Expert Coaching through Educational Seminars

at Co-Branded Events. Delivered by Acknowledged

Specialists from Market Leading Blue Chips

Associating Service Offering with Other High Visibility

Premium Brands

Plug the gaps without guessing

Product Differentiation

Affinity with Market Leading Brands

Customer

Supplier

Survive and Thrive• Objective to engage with SME

community demonstrating that BLNW is in a good position to support business through the ‘credit crunch ”.

• Series of 11 events in Sub Regions to inspire and motivate Businesses to take action and encourage them to position themselves to survive & improve!

• Held in partnership with Key Regional Business Support Stakeholder Organisations.

• Aim to strongly affirm Key Differentiator of BLNW Quality Service Offering by associating BLNW Brand with recognised and respected Business Support Agencies.

PR & Communications

Plugging the gaps 4

Need: to Enhance BLNW Market Reputation

Solution: Thought Leadership Campaigns Delivered through

PR & Communication

Plug the gaps without guessing

Market Reputation

Thought Leadership Campaigns

Customer

Supplier

United We Stand• Objective to Underpin BLNW’s

positioning as leader in Business Intelligence across the region

• Demonstrate the expertise of BLNW

• Provide unique insights into the economic health of the region

• BLNW and Lancashire Telegraph campaign offers editorial, events, workshops and podcasts/webchats

Graphic provided Courtesy of Lancashire Telegraph – part of the Newsquest Media Group

Lancashire Telegraph launches campaign to support businesses

• “TODAY the Lancashire Telegraph launches a major campaign to help businesses fight back against the recession” – BRAND ASSOCIATION

• “New figures reveal that almost 4,000 East Lancashire businesses are staring into the financial abyss at a time of unprecedented economic hardship”. – TRUSTING OUR MESSAGE

• “The campaign comes as figures from Business Link Northwest show that 14per cent of East Lancashire companies – 3,977 – are at maximum risk of failure”. – POSITIONING OURSELVES AS THE AUTHORITY ON THE SUBJECT

• With more than 28,000 firms across East Lancashire, The Lancashire Telegraph and Business Link Northwest are looking to give them the help they need to ride out the recession. – THE HOOK

• “Business Link research shows that…….” BRAND ASSOCIATION AND AWARENESS Blackburn with Darwen has the highest number of businesses at maximum risk – 15 per cent (1,198) of its 7,950 businesses. - GRANULAR DATA CONTEXT AND ENGAGEMENT

• “The figures have been compiled by global credit management company Experian and have been built into an innovative Business Performance Index developed by the Business Link data analysis team” – BRAND ASSOCIATION.

“It’s a great idea. We all have a responsibility to the community at a time of recession and newspapers have a great responsibility, which you are showing, to try and help businesses get all the help they need.”

 

David Cameron, Tory Leader

Feedback – Brand Awareness?

“Small and medium size businesses are important because of the number of people they employ. The Lancashire Telegraph’s campaign is immensely important too because unless people work together at a local and national level to do the best for East Lancashire businesses, we will not get through this recession.”

 

Nick Clegg, Liberal Democrat Leader

Feedback – Brand Awareness?

“The Lancashire Telegraph campaign is vitally important. It remains a truth that too many business people freeze when faced with difficulties and getting them to ask for help early is a must.”

 

Jack Straw, Blackburn MP

Feedback – Brand Awareness?

Viral Marketing, Advocacy & Reference Management

Plugging the gaps 5

Need: Build Customer Advocacy

Solution: Building Stakeholder Advocacy Networks through

Viral Marketing

Plug the gaps without guessing

Customer Advocacy Viral Marketing builds stakeholder advocacy

Customer

Supplier

Selling the Vision• Searching for Evangelists

• Delighting Stakeholders and Customers with Insight

• Become the Primary Source of Business Intelligence in the Region

• One Version of the Truth and One Author of Widely Circulated Data Assets

• Use of Self Replicating Viral Marketing via Effective Working Groups and Representation at Critical Policy Forums

• Nudge the Change Architects (Thaler & Sunnstein) and Be Confident in the expansive capabilities of B2B Mood Contagion

Fulfillment of Key BLNW Strategic Data Objectives:

1. BLNW Recognized as the leader on regional business intelligence and playing a vital role in informing business support policy making

2. Enhancement both Reputation and Policy Influencing Role of BLNW within Business Support Community

The Advocacy ModelBuild Data Coalition: Communicate the

Benefits Internally

Creation of Database – customers – internally focussed

BL Management and internal data consumers

Value Chain for the North West Business Data Universe

First Phase - Create

Viral Marketing Advocacy & Reference Management

Internal Sector specialists and cluster management teams

First interaction with third party data consumers and political oganisations

Data becomes more relevant for decision making bodies

Second Phase – Sell Benefits

Internal Geographically dispersed bodies require data to confirm Business support activities or to quantify the impact of future plans and policies

Data becomes more relevant for decision making bodies

Sector

Viral Marketing Advocacy & Reference Management

Third Phase – Build Dependency

InternalLocal hierarchy of business support functions demand input to decision making and assessment of economic impact.

Data becomes more relevant for decision making bodies

Sector Geography

Viral Marketing Advocacy & Reference Management

Fourth Phase – Widen User Base

Internal

Demand for joined up information sources and “one version of the truth” among all business support organisations.

Tie together regional strategy and delivery with a system of quantifiable evidence based results

Data becomes more relevant for decision making bodies

Sector Geography Local

Viral Marketing Advocacy & Reference Management

Fifth Phase – Consolidate Business Intelligence

Internal

Regional Data can be used to challenge and improve National directives.

Involve regional factual data in National extrapolation.

Data becomes more relevant for decision making bodies

Sector Geography Local Regional

Viral Marketing Advocacy & Reference Management

Sixth Phase – Influence National Agenda

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Relevant Evidence

Demand Pull

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Experience + Evidence = Intelligence

Aim: Move away from

Anecdotal &Judgmental to

Evidence-based

Decision Making

Aim: Move away from

Anecdotal &Judgmental to

Evidence-based

Decision Making

Mis-Sell Inappropriate

Products

Cover-Up

Failure

Re-package Out-dated OutModed Products as New

Data Driven Marketing to Better Fit Product

and Pull Demand

If In the Land of the Blind A One Eyed Man Could Be King What Would Become Of A Man Who Was Perfectly Sighted, Had Binoculars, A Network Of Spies and Extensive

CCTV Coverage