the power of personalized engagement to connect with digigen by l watson 05-05-2014
DESCRIPTION
Covers 3 key areas: * What personalized engagement means to today’s digital generation * Leveraging the principles of segmentation to drive meaningful customer engagements * Big data considerations when building relevance profilesTRANSCRIPT
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
The Power of Personalized Engagement
to Connect with DigiGen
Lisa Watson Commercial Business Development Manager, HP IPG APJ Chairman, Direct Marketing Association of Singapore
05 May 2014
2
The Power of Personalized Engagement to Connect with DigiGen
What personalized engagement means to today’s digital generation
Leveraging the principles of segmentation to drive meaningful customer engagements
Big data considerations when building relevance profiles
The Engagement Challenge … Our World Has Changed
4
Because our Customer’s World Has Changed
More POWER More choice
More information
5
This Happened on Facebook 2013
6
Dad, We Want a Puppy NO!
7 hours!
7
5 days
8
Consumers are Demanding!
More POWER More choice
More information
And yet we want (and need) maximum
engagement from them
9
Why Does Engagement Matter?
Buy More Stay Longer
10
Engagement Must be Earned
This is NOT the Customer
11
Engagement Must be Earned
This is YOU !
12
And our Customer is Saying…
Be RELEVANT!
How Do We Engage DigiGen?
14
15
It’s All About Relevance
The RIGHT Customer The RIGHT Product The RIGHT Channel
The RIGHT Time The RIGHT Message
16
We Must Move from VOLUME to VALUE Marketing
The RIGHT Customer The RIGHT Product The RIGHT Channel
The RIGHT Time The RIGHT Message
Mass Communication
VOLUME
Personalization & Customization
VALUE
17
Data is Oxygen!
Customized
Personalized
Targeted
Accountable
18
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
How It Started In 2011, Coca-Cola Australia had the idea to run a campaign called “Share a Coke”. Their surveys showed that number of people still had not tasted a Coke! They selected the 150 most common first names in the country and printed the wrap around labels of their single serve bottles.
New News HP helps bring to life Coca-Cola’s biggest-ever personalized brand campaign across Europe Record-breaking HP Indigo Digital Press productivity achieved to produce 800 million high-quality personalized labels in 32 countries
HP Indigo - Coca-Cola
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
24
Coca Cola Campaign in Japan
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 25
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Data is Oxygen – For Personalization & Customization
Customized
Personalized
Targeted
Accountable
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
With Data, Personalization Becomes Possible
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Much Better Personalization!
MY Name!
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Personalization & Customization Work Together
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Eric vs Erin: The Gifts are Personalized & Customized
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Why Personalization Matters 19 Feb 2014
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 32
Keds Kids, Israel – Fashion Catalog Combination of variable data printing with Social media
Your kids are stars!
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Engagement-Based Segmentation
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Half the money I spend on advertising is wasted. The trouble is, I don’t know which half.
Why Does Customer Segmentation Matter?
John Wanamaker Philadelphia, 1870s
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
What is Customer Segmentation?
80 - 20
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
What is Customer Segmentation?
Not All Customers Are Created Equal
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
What is Customer Segmentation?
It means increasing the return on your marketing investments by treating
different customers differently
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
There are Two Reasons to Segment
Decrease your marketing investment by
reducing number in your target audience
Increase your marketing results by
improving the relevance of your marketing messages
Filtering
Differentiation
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
All Customers
Our Goal is to Take Our Customer Universe
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
And Segment to Find….
The BIG EASY
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
All Customers
We Use a Value Matrix to Identify BEST Opportunities
Difficult Big Customer Value
Easy
Cu
sto
me
r R
ead
ine
ss
Small Easy
Big Easy
Big Difficult
Small Difficult
Small
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
All Customers
Then Plan Our Communications Accordingly
Difficult Big Customer Value
Easy
Cu
sto
me
r R
ead
ine
ss
Small Easy
Big Easy
Big Difficult
Small Difficult
Small
1
2
2
1
Short Term
Long Term
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
All Customers
Example from a MY Retailer – Loyalty Program
Difficult Big Customer Value
Easy
Cu
sto
me
r R
ead
ine
ss
Small Easy
Big Easy
Big Difficult
Small Difficult
Small Total Annual Purchases
No
of
Qu
art
erl
y S
ho
pp
ing
Tri
ps
> 2 Trips > 2 Trips
< 2 Trips < 2 Trips
> MYR500
> MYR500
< MYR500
< MYR500
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
All Customers
Different Segments Require Different Strategies
Difficult Big Customer Value
Easy
Cu
sto
me
r R
ead
ine
ss
Small Easy
Big Easy
Big Difficult
Small Difficult
Small Total Annual Purchases
> 2 Trips > 2 Trips
< 2 Trips < 2 Trips
> MYR500
> MYR500
< MYR500
< MYR500
MYR20 for 30 days
Email + SMS
MYR50 for 120 days
Direct Mail + SMS
MYR80 for 30 days
Direct Mail + SMS
MYR20 for 90 days
No
of
Qu
art
erl
y S
ho
pp
ing
Tri
ps
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
“Jeans up your life” Small Belgian fashion chain 30 stores + web shop 30 brands: Esprit, Vero Moda, Diesel, Only, Levi’s, Noë …
Engagement Program from a Retailer in Belgium
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Launched Quarterly Newsletter for Loyalty Program Members Generic Personalized & Customized
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
ZEB Evolution Version 1 (Spring)
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
ZEB Evolution Version 1
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
ZEB Evolution Version 2 (Fall)
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Segmentation is a Learning Process
Enrichment Validation Evaluation Segmentation
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 51
A Side Note
About Data
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Personal Data Protection Act 2012
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Personal Data Protection Act
Consent
Purpose Limitation
Notification
Accuracy Access & Correction
Protection
Retention Limitation
Transfer Limitation
Openness
Do Not Call Registry +
9 Main Obligations of the Personal Data Protection Act
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
When ?
© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
For More Info
www.pdpc.gov.sg
57
The Power of Personalized Engagement to Connect with DigiGen
Personalized engagement is essential to reaching today’s digital generation effectively
Use the principles of segmentation to deliver relevant communications (personalized, customized) & deliver ROMI
Data is OXYGEN – collect it, use it, protect it, respect it, then enjoy the benefits to your bottom line
58
Questions?
Lisa Watson Commercial Business Development Manager, HP IPG APJ Chairman, Direct Marketing Association of Singapore