best practices in effective crm: digital drives results by l watson 01 feb-2012
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© 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Progressive Profitable Printing
Lisa Watson Chairman, Direct Marketing Association of Singapore Regional Segment Manager, HP IPG APJ 01 February 2012
The New Reality of Effective CRM: Digital Drives Results
Four Key Trends Loyalty Marketing
Consumers are Empowered
They're Demanding Relevance
Marketers Demand Accountability
Digital Drives Results
2 01-Feb-12
The Old Way of Marketing is Over…
3 01-Feb-12
Because the Customer’s World Has Changed
More POWER More choice
More information
4 01-Feb-12
This Means Effective Marketing Communications Have Evolved
Buy Try Trust
Talk
Reply Buy Stay
Chat
Share Tell Buy
Collaborate
5 01-Feb-12
We Must Remember Who’s In Charge…
This is NOT the Customer
6 01-Feb-12
We Must Remember Who’s In Charge…
This is YOU!
7 01-Feb-12
Word of Mouth is Critical!
Buy Try
Trust
Talk
Reply Buy Stay
Chat
Share Tell Buy
Collaborate
8 01-Feb-12
And When It Comes to Sharing, Don’t Forget…
Tells ONE Tells TEN
9 01-Feb-12
Four Key Trends Loyalty Marketing
Consumers are Empowered
They're Demanding Relevance
Marketers Demand Accountability
Digital Drives Results
10 01-Feb-12
Nothing is More Important in Marketing Today Than Relevance
11 01-Feb-12
Consumers REALLY hate spam!
Consumers are Telling Us What They Want – And What They Don’t!
•91% unsubscribed from opt-in e-mails
•77% more cautious providing their e-mail (versus last year)
•81% ‘unliked’ or removed a brand’s posts
•71% more selective ‘liking’ a company (versus last year)
•41% have ‘unfollowed’ a company
Source: ExtactTarget “The Social Break-Up”
12 01-Feb-12
They Hate Spam Even More Than Junk Mail!
13 01-Feb-12
They Hate Spam Even More Than Junk Mail!
Relevance!
14 01-Feb-12
How Do We Deliver Relevance?
15 01-Feb-12
Data is Our Oxygen!
Customized
Personalized
Targeted
16 01-Feb-12
Accountable
17 01-Feb-12
Personalization
vs
Customization
Relevance = Personalization + Customization
•Personalization means using an individual’s personal data directly in a communication – Name
– Address
– Gender
– ID number, etc
•Customization means using data about an individual to serve up a meaningful product/message/timing – Profile
– Preferences
– Past behaviors
– Most recent purchases, etc…
Obvious to each Individual
Only Obvious to the Group
18 01-Feb-12
Personalization Example
19 01-Feb-12
Customization Means Varying Content/Images as Well
20 01-Feb-12
Change the image based on my
profile
Personalization Drives Up Response Rates
Typical response rates, static and personalized campaigns
(Data source: Caslon analysis of PODi and DMA data)
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Direct sale
Lead generation
Lead nurture
Loyalty
Fundraising
Cam
paig
n o
bje
cti
ve
DMA (static) PODi (personalized)Copyright 2008 Caslon & Co.
21 01-Feb-12
Relevance is All About ‘Getting it Right’
The RIGHT Customer The RIGHT Product The RIGHT Channel
The RIGHT Time The RIGHT Message
Mass Communication
VOLUME
Personalization & Customization
VALUE
22 01-Feb-12
Relevance
Relevance is All About ‘Getting it Right’
The RIGHT Customer The RIGHT Product The RIGHT Channel
The RIGHT Time The RIGHT Message
Mass Communication
VOLUME
Personalization & Customization
VALUE
Relevance in
Timing!
23 01-Feb-12
Relevance
Time-Triggered Campaigns: Birthdays!
24 01-Feb-12
Eric vs Erin
25 01-Feb-12
Another timed event is the monthly statement…
Which can also be used for promotional activities!
26 01-Feb-12
What is TransPromo?
“Friendly”
statement
Improved service
offerings
Promotional
offering
Make it
relevant
Make it personal
Prime real estate!
Transaction + Promotion – Maximizing ROMI with high-quality statements
27 01-Feb-12
The Transactional Document – A Customer Touch-Point with Incredible Potential
Transaction documents get opened…. … and are read!
• Consumers spend an average of 2-3 minutes reviewing each statement they receive in the mail1
• 20% of consumers spend 5 minutes or more!1
• Customers spend almost twice as much time with paper bills than with electronic versions
• This year the average consumer will see or hear one million marketing messages – almost 3,000 marketing messages per day, versus fewer than 12 transactional documents each month
1. Source: Trans Meets Promo… Is it more than market hype? Infotrends, August, 2008 2. Source: Pitney Bowes Group 1 research
28 01-Feb-12
The Transactional Document – A Customer Touch-Point with Incredible Potential
Transaction documents get opened…. … and are read!
• Consumers spend an average of 2-3 minutes reviewing each statement they receive in the mail1
• 20% of consumers spend 5 minutes or more!1
• Customers spend almost twice as much time with paper bills than with electronic versions
• This year the average consumer will see or hear one million marketing messages – almost 3,000 marketing messages per day, versus fewer than 12 transactional documents each month
1. Source: Trans Meets Promo… Is it more than market hype? Infotrends, August, 2008 2. Source: Pitney Bowes Group 1 research
29 01-Feb-12
<5% throw out bills unopened
Fly Buys Background
• New Zealand’s leading loyalty marketing organisation
• Operates the Fly Buys coalition loyalty marketing programme
• Fly Buys has:
– 53 retail partners, most of New Zealand’s largest retail chains
– 71% of households in New Zealand actively engaged
• Fly Buys points summary:
– Unchanged since 1996
– Goes to 60% of total NZ households every quarter
– Key DM channel
31 01-Feb-12
Fly Buys Points Summary in the Past: Complex
• Output not reflective of complex analytics and underlying data work
• Members missing personalized elements
• Inflexible and cumbersome
• Highly risky if changes required
• Rewards Guide Panel
• Nested Pages
• Second Page Messages
• Participant Inserts
• Multiple sheets of paper to each member
32 01-Feb-12
33 01-Feb-12
Fly buys statement today A3 folded to A4
34 01-Feb-12
Fly buys statement today A3 folded to A4
35 01-Feb-12
Fly buys statement today A3 folded to A4
36 01-Feb-12
37 01-Feb-12
Fly Buys Statement Today
• The first mailer reactivated many dormant members, and the second reactivated even more
• The circulation now is increasing!
• Merchant partners are eagerly buying the white space 38 01-Feb-12
Four Key Trends Loyalty Marketing
Consumers are Empowered
They're Demanding Relevance
Marketers Demand Accountability
Digital Drives Results
39 01-Feb-12
Campaigns Can Only be Great if They Deliver Results!
40 01-Feb-12
Print Ad – Business 2.0
Postcard - Drive to web
Coupon
Key Codes Come in Many Forms
$$$
41 01-Feb-12
The Ultimate in Tracking – QR (Quick Response) Codes
42 01-Feb-12
• Created by Toyota subsidiary Denso Wave in 1994 • Used to Add Tracking to Many Things
– Billboards – Print Ads – Product Packaging – Namecards
What is a QR Code?
43 01-Feb-12
The Latest QR Codes
44 01-Feb-12
The Latest QR Codes
45 01-Feb-12
The Latest QR Codes
46 01-Feb-12
Four Key Trends Loyalty Marketing
Consumers are Empowered
They're Demanding Relevance
Marketers Demand Accountability
Digital Drives Results
47 01-Feb-12
What’s so Special About Digital?
• It Delivers Relevance – Right customer
– Right product/service
– Right time
– Right ‘price’
– Right channel
– Right message
– Right cost
• It Makes Campaigns Trackable – Measures interactions
– At the individual level
48 01-Feb-12
Digital Drives Results
So The Really Great News is…
AND not only online!
49 01-Feb-12
Relevant Accountable
A Surprising User of Direct Mail!
50 01-Feb-12
A Surprising User of Direct Mail!
51 01-Feb-12
A Surprising User of Direct Mail!
52 01-Feb-12
The New World of Loyalty Marketing
Consumers today are demanding relevance
Data is the key to delivering intelligent
communications
Variable data makes marketing relevant &
trackable
Digital Drives Results
53 01-Feb-12
Thank You!
lisa1.watson@hp.com
Progressive Profitable Printing
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