Permission Marketing Part Three

1
Permission MarketingPart Three

• Turning Strangers Into Friends, and Friends Into
  Customers
• Permission Levels
• Summarized by Bob Griffin
• By Seth Godin

2
Five Steps in Dating

1. Make an offer for the first date - incentive
2. Getting attention, you offer a reason to keep
   going (curriculum)
3. Reinforce the incentive

3
Five Steps in Dating

1. Increase the level of permission
2. Over time, leverage the permission to change
   customer behavior toward profit

4
The Five Levels of Permission Marketing

1. Intravenous (Purchase on Approval)
2. Points
3. Personal Relationships
4. Brand Trust
5. Situation

5
Intravenous

• Subscription type service
• Automatic, replenishment
• Saves time. Saves money
• Good for people who dont like to make decisions
• Extremely relevant (avoids stock outs)

Columbia House
Pottery Barn attitude
6
Points

• SH Green Stamps
• Big Y (Red, Blue, Silver Gold Coins)
• Catalina Coupons
• How could this be used more interactively?

7
The Personal Relationship

• Cambridge Technology Partners (page 121)
• The way of life for auto repair, lawyers,
  doctors, dentists, insurance sales
• Bad service or interaction can cancel the
  permission
• This can easily lead to the intravenous level

8
Brand Trust Level

• AOL (page 125)
• Bell Atlantic
• Co-branding can be dangerous
• Sprint in Radio Shack
• Martha Stewart in K-Mart

9
Situation Level

• May I help you
• Brookstone, Sharper Image, Banana Republic, Radio
  Shack
• Car sales
• High physical / social proximity
• Call centers
• Always trying to upgrade the permission

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4 Keys to setting up your PM web Site

1. Test and Optimize Your Offer
2. Make the Permission Overt and Clear
3. Use computers (not people) to send and receive
   information
4. Focus on Mastery - online consumers need to feel
   smart

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Evaluating a PM Program

• Whats the bait?
• What does an incremental permission cost?
• How deep is the permission that is granted?
• How much does incremental frequency cost?

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Evaluating a PM Program

• Whats the active response rate to
  communications?
• What are the issues regarding compression?
• Is the company treating the permission as an
  asset?
• How is the permission being leveraged?

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Evaluating a PM Program

• How is the permission level being increased?
• What is the expected lifetime of one permission?