From Direct Marketing to Dialogue Marketing

1

Dialogue Marketing via Direct Mail

during the Customer Journey

2

STEP 1 : THE CUSTOMERS’ JOURNEY

3

The medium is the message messiah

4

5

24,70%

21,60%

14,30%

13,40%

8,50%

8,00%

2,95%

2,90%

1,60%

1,50%

TV

Dailies

Postering

Radio

Magazines

Internet

Direct Mail

Regional press

D2D

Cinema

Where are your investments (ex. Car sector)

24%

22%

Source : Mediaxim 2010

14%

6

12%

9%

6%

4%

4%

1%

0%

0%

37%

Direct Mail

Unaddressed mail

TV

Email

Internet

Dailies

Radio

SMS

Social Networks

Are they in line with the customers’ preferences ? (ex. Car sector)

37%

9%12%

Source : Market Probe 2010

NL: Door welk medium/welke media wilt u worden gecontacteerd wanneer een automerk u een reclameboodschap wil leveren? FR: Par quel(s) média(s) désirez-vous être touché si une marque dans le secteur de l’Automobile souhaitait vous délivrer un message publicitaire ?

7

How does your customer makes his decision? (ex. Car sector)

87%

54%

46%

38%

26%

15%

12%

9%

11%

6%

5%

POS

Spec. Magazine

Brand website

Spec Website

Partner/friends and family

D2D

DM

Dailies

TV

Press insert

Forums

Source : Research solution IP 2010

NL: Stel dat u in de volgende maand een auto gaat kopen. Welke informatiekanalen zou u raadplegen alvorens een beslissing te nemen?FR: Imaginons que vous allez acheter une voiture dans le prochain mois. Quels sont les canaux d’information que vous consulteriez avant de prendre votre décision ?

PAID MEDIA

8

Time is valuable? How to get connected to your customer?

9

10

0

5

10

15

20

25

30

35

40

45Like

Attract

Irritate

Incite

TV

Increasing customer control, advertising is more and more interruptive and irritating

Digital Natives

(15-24 years old)

Source: Media Preference Study bpost – Market Probe December 2010 n: 1006

11

0

5

10

15

20

25

30

35

40

45Like

Attract

Irritate

Incite

TV

E-mail

Digital Natives

(15-24 years old)



12

0

5

10

15

20

25

30

35

40

45Like

Attract

Irritate

Incite

TV

E-mail

Social Networks

Digital Natives

(15-24 years old)



13

0

5

10

15

20

25

30

35

40

45Like

Attract

Irritate

Incite

DM

TV

E-mail

Social Networks

Digital Natives

(15-24 years old)



14

It’s not only the medium. There’s the paradox of choiceAre you helping your (future) customer?

HELP

15

Source : Mc Kinsey 2009

The importance of understanding the customer journey

16

17

The customer decision journeydoesn’ stop at the moment of purchase !!!

The right message

At the right moment

At the right place

At the right moment

Using the right media

18

The elevator pitch !

19

STEP 2 : DIALOGUE MARKETING

20

The “holy USP”

Source: 2010. comScore ARS

Kill your darlings !

21

The Value-Delivery Process

New: value creation and delivery process

Choose the Value

Provide the Value

Communicate the Value

Strategic Marketing Tactical marketing

CRM PRICE WINNING KLM

“We verkopen geen vlucht, we verkopen een heel proces.

22

Perfect example !

TOMTOM-experience

Navigation is more then going from A to B.

TomTom is a human thing, in stead of a car thing.

ALEXANDER RIBBINK, COO TOMTOM

23

Another example !

ZAPPOS-experience

If you don’t find it with us. We ‘ll help you to find it somewhere else.

“Your customers keep you in business, care about them, not their money. “

24

Providing Value = good for your client

Convince your management

V - P > Vc - PcV - P > Vc - Pc

And your bonus !

V: Value Vc: Value competitor

P: Price (incl. margin) Pc: Price competitor (incl.margin)

Brand “INTIMACY”

Route 66

Customer Purchase /

Transaction

triggers

Customer lifecycle

MY NAME ISUNIQUE

CRM is dead ! Long live CRM !

Customer Dialogues during the lifecycle

It is important to realize that CRM is based

on satisfying three human needs: recognition, respect and trust

CRM is about life !


Route 66

LifeStage

Customer Purchase /

Transaction

triggers

Customer lifecycle

MY NAME ISUNIQUE




CRM is about life !CRM is dead ! Long live CRM !

27

LifeStage

Graduation

28

LifeStage

Getting married

29

M&M’s – my M&M

30

LifeStage

Having a baby

31

LifeStage

Retirement

32

KBC – “Wij spreken uw taal”


Route 66

LifeStage

Customer Purchase /

Transaction

triggers

Customer lifecycle

MY NAME ISUNIQUE




CRM is about life !

Events


34

Events

Events

35

Events

Sport events

36

Events

Grants by government


Route 66

LifeStage

Customer Purchase /

Transaction

triggers

Customer lifecycle

MY NAME ISUNIQUE




CRM is about life !

Events

Mood


38

Product FailureMood


Route 66

LifeStage

Customer Purchase /

Transaction

triggers

Customer lifecycle

MY NAME ISUNIQUE




CRM is about life !

Events

Mood

Location


40

Location

400.000 moving families per year

On average owners spend 20.898€, renters 4.944€

Moving


Route 66

LifeStage

Customer Purchase /

Transaction

triggers

Customer lifecycle

MY NAME ISUNIQUE





CRM is about life !

Events

Mood

Location

TouchPointMultiChannel

42

A traditional marketing proces

Dear Client,

WE think YOU should like US.

Because WE are GREAT…WE think you’ll like our product.

So BUY NOW !!

Ps: Do it now! It’s only 60 euros.

Dear Client,

WE think YOU should like US.

Because WE are GREAT…WE think you’ll like our product.

So BUY NOW !!

Ps: Do it now! It’s only 60 euros.

Selection Message Send Reporting

Relevant ?

43 Example for Libelle (netherland)

Conversionproces from ‘Trial’ to ‘Fix subscription’

Libelle – a conversation brand !

44

Example for Libelle (netherland)

Conversionproces from ‘Trial’ to ‘Fix subscription’

WELCOMEEXPLANATION

trial

STARTTRIAL

ENDTrial

period

Libelle – a conversation brand !

Week

1Week

2Week

3Week

4

Discover

Cooking

Discover

Being a mom

Satisfaction

Survey

1 YearSubscription

Week

…

45

Marketing / CRM / Dialogue Marketing

Enterprise-initiatedMarketing-Driven

« Intrusive »1% - 5%

Response

Campaign-driven

Customer triggeredProduct as service

« convenient »5 % - 25%Response

Trigger Event-driven

Customer-initiatedRelationship-driven

Dialogue-driven« Appropriate »10 % - 55%

Response

46

Get the dialogue started

47

1to1 PaperExamples

48© bpost - DM Discovery 8 - 30.08.2010

Traffic creationx10

Communication Recall = 74%

Want to act = 39%

POS traffic = 15-20%

POS conversionx3

Offers = 12%

Source: 1 to 1 Lab – Xerox – Stratégies - bpost

Sales profit+++

Sales = 6%

It’s all about relevance

49

CAMPAIGN OBJECTIVES

INCREASE OF CUSTOMER DATABASE

INCREASED STORE TRAFFIC

Send postcards inc purl = 5.000

Use of purl = 1.111 (22%)

Push to 265 social media

New addresses : 6.089

Coupon redemption : 1.300 (26%)

Viral DM : the art of sequencing, integrating social media

50

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From Direct Marketing to Dialogue Marketing