seamless customer experience in the age of addressable media. an rei journey

May 3, 2023

THE MODERN BRAND’S JOURNEY TO A DATA-DRIVEN BRAND EXPERIENCE

Today’s Speakers

Jennifer AlexanderVice President/General Manager

Epsilon

John Reynolds Marketing Manager of

Direct Analytics, REI

Meet Epsilon

Consecutive meet or beat the street quarters

DATABASE Database Design & Hosting Data Processing CDI Services Loyalty Services CRM Strategy & Planning

DIRECT Multichannel

Communications Direct Marketing Services Marketing Strategy Creative Services Print Services

DIGITAL Email Technology Platform Strategic Consulting and

Analytics Professional Services Web Development and

Creative Acquisition

DATA Consumer Data (Consumer,

Survey, New Mover) B2B Data Abacus Cooperative/

Transactional Data Modeling

Objectives, Needs and Strategy

Integration, Coordination, Investment and Results

Analytics & Strategy

Retail Services AirMiles

10 years

• Marketing Channel Trends & Addressable Media• Adapting to the Age of Addressability• How REI Maps the Customer Experience

Today’s Discussion

Addressable Media

• Past - Traditional direct marketing: print, direct mail, telemarketing

• Present - Emergence of new media channels: email, mobile, social, SMS, web to complement addressable DM/print

• Future - Addition of addressable television and radio will reshape marketing spending

Trends Towards New Forms of Addressable Media

Traditional Channels Are Still Alive …

Source: Customer Acquisition – Direct Mail + Web = Winning Formula, Allant Group

And now they enhance the new emerging channels.

Facebook

Newspaper

Direct Mail

Company Website

Retail Location

Customer Service

Email

Twitter

MySpace

YouTube

Friends/Family

Radio

Mobile

Web / Display

Online Forums

Blogs

TV

• Close to 7 trillion SMS messages sent worldwide in 2011

• 500,000+ applications available

• 500 million users access the mobile web

Mobile Space Growing by Leaps and Bounds

Mobile is NOT a Specific Platform or Technology

Marketers need to adapt to ALL mobile devices

Social Media Continues to Grow Amongst all Ages & Households

Usage among those over the age of 65 has grown 150% from 2009 to 2011 from 13% usage in 2009 to 33% usage in 2011.

• People who use social media consume email more, not less.

Media Synergy

• Homes receiving addressable TV ads tuned away 32% less of the time than non-targeted TV households

More Info – Trends – Addressable Media

* A survey conducted by Parks Associates, a Market Intelligence Organization

61.8 million homes are considered “addressable.”- National Cable Television Association

“The TV is, and will continue to be, the dominate screen for video content as long as there is

programming to support it. “ - Mercury Media, The Power of Television

• Addressable TV campaigns – 65% more cost efficient than traditional TV ads

• Ad & Media Executives are shifting spend dollars: Almost 40% willing to pay upwards of 20% more for addressable ads over traditional TV ad costs

• Now in 2012, additional media outlets are adopting targeted ads with the development of their platforms.

• 83.5% (174M) of the US Internet Audience viewed online video in March 2011

• YouTube.com ranked as the top online video content property in March with 143.2 million unique viewers.

• YouTube remains the most popular destination on the web for video content.

• Americans viewed 4.3 billion video ads in March 2011

Video Viewing on the Web – Snapshot of March 2011

Source: comScore

• 80 million internet users listened to internet radio stations in 2011; nearly 158 million by 2015

Internet Radio

• Business Infrastructure Databases Data People/Expertise

• Marketing Practices Integrated/multichannel campaigns Analytics Shift from campaign focus to customer experience focus

The Emerging Strategic Imperative for Marketers to Adapt to the Age of Addressability

The Emerging Strategic Imperative for Marketers to Adapt to the Age of Addressability

CAMPAIGN FOCUS CUSTOMER EXPERIENCE FOCUS

Planning and effectiveness measurement in media silos

“Episodic”

Media planning dictated by consumer actions to send messages at the most opportune time via the most relevant channel(s).

“Always On”

• Establish a vision for the customer experience• Build toward that vision over time

A Framework That Can HelpMarketers Rise to the Challenge

REI’s Journey to a Data-Driven Brand Experience

• REI invested in an integrated Customer Data Warehouse: Co-op structure provides majority of retail purchases

to customer Marketing contact and engagement history Online purchase and engagement from all sources Demographics Customer Profiles

It’s All About the Data

• Building consensus on prioritizing actionable data

• Building staff, skills, tools, and process to leverage, measure, and optimize actionable data

• Infrastructure challenges such as processing speed and output

• Increasing dependency on technology to plan, execute, measure, and optimize marketing

Exponential Increases in Collected Data is Not Without its Challenges

Digital Communications Vehicles

• For both email and social, REI has a both a corporate and local retailer voice

• Lifecycle Campaigns that optimize the customer experience New Members Product Review Major Category Purchase

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Email

New Members

MajorCategoryPurchase

Product Review

• REI draws on its deep skill in direct mail marketing to measure incremental sales and forecast new program strategies These methods have significantly changed REI’s

understanding of what works in their email programs

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Email (cont.)

Email Spurs Consumers to Social Networks

• REI’s Outlet 22 Sale• Provided subscribers

with options to spread the word about a great sale

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Social

• For both social and email, REI has a both a corporate and local retailer voice

• REI’s social presence includes: Facebook Twitter YouTube Web-based community

Blog Flickr (photo sharing) Q & A

• WAP site• Mobile applications

Snow Report REI.com product & transactional

• QR codes in direct mail, in-store & advertising• Digital catalogs• Digital partnerships

Trails.com Pandora

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Mobile

• Increase focus on customer-profile based communications

• Customer needs driven organization

• Marketing segmentation• Acquisition strategies• Merchandising selections• Digital experiences & content

development to meet customer needs

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It’s a Marathon, not a Sprint

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Questions?

Jennifer AlexanderVice President/General

Epsilonjalexander@epsilon.com

303.551.1860

John Reynolds Marketing Manager of

Direct Analytics, REIjreynol@rei.com