Event Driven Marketing can be divided into two basic types according to the processing event and the form of communication of this event to the client. The first type of an EDM event is a service event, such as information concerning incoming payments for insurance or loan instalments, which are captured and communicated with a client without any commercial purpose. This service is provided to increase client satisfaction and comfort. Here we have to consider whether clients should be charged for this service. The second and more interesting type of EDM events are those that create potential revenue.
The goal of EDM is to offer service to the client at exactly the right moment, when it is needed most, or, to prompt a reaction to stimulate product activity. These events have to be dealt with appropriately and on time.
Concept EDM consists of two crucial factors:
- Signs of opportunity
Detecting events promptly, responding quickly, and making an offer is both critical and productive. In such cases, time is measured in hours; the sooner the better with less than 48 hours being imperative. On-line versions are also viable.
Picture 1 – Conceptual scheme of EDM
The success rate of campaigns based on EDM is five times higher than that of ordinary campaigns. EDM campaigns are less complicated and more focused. Clients are frequently pleased to learn of new products, or that someone is aware of their current status, be it good or bad. A typical result arising from EDM is a significantly higher response rate, less spam (when implementation of EDM combined with others marketing campaigns is done correctly), reduced communication costs and, last, but not least, gaining and strengthening a client’s loyalty.
The main goals of EDM:
- Selling other products to current clients
- Guaranteeing a high level of individual care for clients
- Strengthening customer loyalty
- Providing clients with a sense of security through solid marketing communications
Most people imagine EDM as one-time events happening over a short time period, even within minutes, such as when making a withdrawal or payment, or, during an event which happens within a day of a premium payment, a client’s birthday etc. However, less common events, based on long-term monitoring of client behaviour or a particular product, should be included in the EDM system, such as when a client withdraws 15,000 CZK every month on a credit card and this amount drops to zero over a three-month period, or falls by over 70%. This may indicate the client is now using a competitor's credit card recommending a new action to retain the client by motivating the client to continue using your product by reducing the credit card fee.
Online versus semi-online recording of EDM events
The most common problem we deal with from the onset is the request for available resources and its influence on the timing of recorded events. In practice, we primarily request a record of events in real time so we can process it as soon as possible. This request can be a real threat to all projects as it may be seen as „unreal“ for certain events. It is imperative to be aware that working with online recorded events can be very expensive to implement and operate.
The first step should be to determine those events to be recorded and define their parameters based on the following questions:
Is it necessary to record the event online? Will online recording be beneficial for the client? Will it increase the odds of making a successful business offer? What are the costs of recording events versus the gains? What is the most appropriate way of communicating with clients (e.g. SMS, Email, a client’s website)?
Results may be surprising. For example, only 10 % of events may be suitable for recording online meaning that the costs of implementing EDM can be significantly reduced.
Introducing EDM in Marketing
Event Driven Marketing is often integrated in one of two options. The first option is through an independent system of Campaign Management (CM) that arranges records, event processes, and distribution of the message to the client independently of the existing CM system. The second, and most suitable option for integration, is connecting the EDM system as a source for the actual Campaign Management. From the perspective of existing campaigns in CM, EDM is merely another type of data source for campaigning, much like systems for detecting debtors or a scoring system. In this case, it is essential to expand the CM with events generated within the EDM system and implement processing based on event types. This is done through the channels associated with the campaign which are best suited for immediate distribution to the client.
When the main processor of EDM system events for the processing stage and distribution of client communication is CM, the marketing specialist can use the contact policy set in the CM for controlling the overload of a client, overlapping accounts and prioritizing campaigns and EDM campaigns today or next month. We encourage you to take advantage of the CM blacklist for EDM distribution events and similar occasions.
The second step in EDM implementation is to specify the group of clients who are controlled within the EDM system by the events that occur. In practise, this aspect is often underestimated, in particular for events encapsulating the entire client base. However, at the onset of the EDM system implementation, a variety of situations begin to emerge where no suitable event is detected from the perspective of the client, nor from that of the company. One such example is the anniversary of an event in the form of an SMS addressing an insured activity or a loan that is currently being dealt with by the dependents. The second group are typical borrowers.
In the final stage it is important to prioritize and analyse events to prevent clients from receiving messages associated with multiple events, where, in reality, only one action of the client has been made. A suitable distribution channel for single EDM events, as well as those based on EDM parameters and parameters of client and marketing communication, must also be established:
- Online events
- Business offers or information services
- Client access to client web zone
- Quick response situations and requirements of them
Defining suitable channels according to these parameters leads to maximized effectiveness in marketing communications and increases the business value of the EDM system.