DM Workshop preparation

Meeting for Electrabel

December 7, 2010

1

Recap from last meeting (May 2010)

• Communication challenges within utilities sector

• Simplify

• Trust

• Involvement

• Not released yet: CARE programme

• Proposals

• 121 Lab (example: Lampiris)

• Green DM Barometer

• Discussion: Energiek

2

On the Menu today

• Update DM Pige

• Results impact study DM Carbon Meter

• Latest DM insights

• Very soon: DM beta coefficient

• DM Workshop?

• Mass Post Centre – Brussel X

• Together with agencies?

• Around Specific theme

• Care?

• Building communication consistency in DM

• DM Green in practice?

• New cross-media pilots?

1. DM Pige update

2009 & 1st semester 2010

Review of campaigns

5

33,9

4,9

34,9

4

Mass Media (CIM) Direct Mail (DM pige)

Gross media investments in ENERGY (Mio €)

Important note: Figures are calculated through combination of 2 sources: Cim-MDB (Mass Media) and DM pige (DM). DM pige is relatively comparable but is not CIM compliant

mio eur

20092008

+22,5%

+3,2%

11,9%

In 2009, 22,5% boost in DM supported a 11,9% increa se in total media. However, Direct Mail spendings dropped down i n 2010 compared to 2009.

18,8 21

3,6 2,2

22,4

2,7

Mass Media (CIM) Direct Mail (DM pige)mio eur

20092008 2010

Media investments Q1 to Q3 2008/2009/2010Evolution Media investments 2008-2009

ECT: ENERGYSCT: ENERGY

SSCT: ENERGY

6

12,4% 13,8%9,6%

1%

10%

3%2%3%

9%

17%

5%

4% 5%21%

13%8%

12%

23%

50%

27% 27%

24%

0%

20%

40%

60%

80%

100%

2008 2009 2010

TV

Radio

Dailies

Magazines

Internet

Cinema

Postering

Direct Mail

Important note: % are calculated through combination of 2 sources: Cim-MDB (Mass Media) and DM pige (DM). DM pige is relatively comparable but is not CIM Compliant

2621,5 23,2 mio eur

Media mix evolution Q1 to Q3 2008/2009/2010

TV decreased of more than a half from 2008 to 2009. In 2010, TV remained stable. Dailies and DM decreased. Radio an d Internet increased.

7

45,6%

10,1%

9,4%

6,0%

11,7%

5,7%

2,5%

1,9%

3,3%

46,0%

22,1%

5,2%

7,9%

5,4%

4,1%

1,6%

0,9%

1,0%

ELECTRABEL

LUMINUS

GDF - SUEZ

NUON

EANDIS

ELIA SYSTEMOPERATOR

ESSENT

ECO VISION

SUEZ

SUNSWITCH2008

2009

63,6%

24,1%

3,9%

0,7%

1,6%

68,8%

3,0%

2,0%

0,6%

1,4%

0,8%

1,4%

1,0%

21,3%

0,9%

0,9%

0,6%

ELECTRABEL

LUMINUS

NUON

EANDIS

GDF - SUEZ

ECOPOWER

PBE

ESSENT

ORES

SUEZ

Mass Media (Cim MDB) Direct Mail (DM pige)

Top 10 investors 2008 – 2009 in Mass Media en Direct Mail

In 2008 and 2009, Electrabel was by far SoV leader in Mass Media and DM. Luminus was second, with a large incre ase in Mass Media.

TOTAL 2008 = 33,9 mio €TOTAL 2009 = 34,9 mio €

TOTAL 2008 = 3,9 mio €TOTAL 2009 = 4,9 mio €

8

60,1%

29,0%

3,6%

1,4%

75,6%

2,1%

1,1%

0,7%

57,60%

26,90%

3,90%

2,30%

0,80%

1,60%

0,50%

1,30%

0,6%

1,2%

1,7%

0,9%

16,6%

0,7%

1,0%

ELECTRABEL

LUMINUS

NUON

EANDIS

ECOPOWER

ORES

PBE

ESSENT

LAMPIRIS

SUEZ

34,5%

15,3%

14,5%

5,0%

14,9%

1,5%

3,1%

6,0%

2,0%

47,0%

26,2%

4,4%

4,7%

5,9%

2,5%

2,3%

23,5%

32,1%

0,8%

4,6%

7,2%

8,1%

1,6%

ELECTRABEL

LUMINUS

EANDIS

ELIA SYSTEMOPERATOR

GDF - SUEZ

NUON

LAMPIRIS

ESSENT

SUEZ

ECO VISION

2008

2009

2010

Mass Media (Cim MDB) Direct Mail (DM pige)

Top 10 investors Q1 to Q3 2008/2009/ 2010 in Mass Me dia en Direct Mail

Share of Electrabel decreased in 2010, especially in Mass Media. More players are appearing in Mass Media. In DM, Lu minusremained the only relevant challenger of Electrabel .

TOTAL 2008 = 18,8 mio €TOTAL 2009 = 22,4 mio €TOTAL 2010 = 21 mio €

TOTAL 2008 = 2,6 mio €TOTAL 2009 = 3,6 mio €TOTAL 2010 = 2,2 mio €

9

8%

21%

2%5%

2%

11%

3,60%

1,80%

20%

3%

12%

25%

26%

57%

100%

39%

13%

8%4%

16%46%

38%

61%

9%

25%17%

65%

21%

43%

85%

7%

35% 37% 40%

3%

84%

6%

0%

20%

40%

60%

80%

100%

LUM

INU

S

ELE

CTR

ABEL

LAM

PIR

IS

NU

ON

ELI

A S

YS

TE

M

OPE

RATO

R

SO

LAR

IG

PO

WE

R 4

YO

U

EN

EL

ES

SEN

T

TW

INE

RG

Y S

UN

TIL

E

TV

Radio

Dailies

Magazines

Internet

Cinema

Postering

Direct Mail

Important note: % are calculated through combination of 2 sources: Cim-MDB (Mass Media) and DM pige (DM). DM pige is relatively comparable but is not CIM Compliant

0,977,3 0,7

mio eur

Media mix comparison Q1 to Q3 2010

In 2010, Luminus invested more than Electrabel. Howe ver, Electrabel had a higher DM share. The DM investment s of other players remained marginal.

6,2 1,7 1,6 0,75 0,43 0,34 0,33

DM Pige – ENERGY SECTOR

VISUALS

11

12

13

14

15

16

17

COMPETITORS’ MAILINGS - LUMINUS

18

COMPETITORS’ MAILINGS - LUMINUS

19

COMPETITORS’ MAILINGS - LUMINUS

20

COMPETITORS’ MAILINGS - NUON

21

COMPETITORS’ MAILINGS - NUON

22

COMPETITORS’ MAILINGS - NUON

23

COMPETITORS’ MAILINGS - EANDIS

24

COMPETITORS’ MAILINGS - ESSENT

25

COMPETITORS’ MAILINGS - LAMPIRIS

26

COMPETITORS’ MAILINGS - ENECO

27

COMPETITORS’ MAILINGS - SHELL

28

COMPETITORS’ MAILINGS – IRS SOLAR / WT SOLAR

2. DM Carbon Meter

What & how?

What about C02 emissionsin Belgium?

each Belgian citizen

=3 Atomiumspheres

Belgium=

30 MillionAtomiumspheres

Why a DM Carbon Meter ?

Purpose

• Calculate carbon (CO2-equivalent) emissions of a standard mailing

• Propose low-carbon alternatives

• Collect easy comparative benchmarks

• Enable continuous improvement

Life Cycle of a DM campaign

Input screen

Details of distribution

Details of the mailing

Results screen

The real impact of postal distribution

13%

Also available for unaddressed mail

C02 Offsetting

Which impact onconsumers…

The enveloppe

Regular

Green

Normal paper

170grs

Full coloured

FSC paper

115grs

50% coloured

The letter

FSC paper

150grs

Full coloured

Regular

The letter

Green

50% recycled paper

100grs

50% coloured

+ PPS

La réalisation de ce courrier bénéficie d’un impact C02 réduit.

Emission unitaire de C02: 135g, soit moins de 40%

Par rapport aux courriers précédents.

Imprimé à l’encre végétale sur du papier recyclé à 50%

et d’un poids réduit de 32%.

Less colour has negative impact

all respondents having children of 5-7 months

Recall having

received it

Opened it Recall

content

Intent to act Intent to use

coupons

“Do you remember receiving a DM?”

“What did you do with the DM?”

“Can you describe the DM?”

“Do you have the intention to react?”

“Do you have the intention to use the coupons?”

Read it

GreenIndex = green/regular

GreenIndex = green/regular

92 97 93103 98 89

RegularIndex = 100

RegularIndex = 100

100 100 100100 100 100

Lost in

opening

Lost in

Intention

at the end

100

89

Response

rates

French speaking seems more sensitive to colour

Regular FRIndex = 100

Regular FRIndex = 100

100 100 100100 100 100

Regular NLIndex = 100

Regular NLIndex = 100

100 100 100100 100 100

Green FRIndex = Green/regular

Green FRIndex = Green/regular

81 99 9497 107 76

Green NLIndex = Green/regular

Green NLIndex = Green/regular

95 94 97110 90 95

The higest

Negative

Influence is FR

Recall having

received it

Opened it Recall

content

Intent to act Intent to use

coupons

“Do you remember receiving a DM?”

“What did you do with the DM?”

“Can you describe the DM?”

“Do you have the intention to react?”

“Do you have the intention to use the coupons?”

Read it

Read

carefully &

with

interest

25%

Read

25%

Not read /

threw away

25%

Skimmed

through it

25%

The green mailing has a better reading score

What have you done after opening the DM?

Opened DM

Regular 100

Green 200 BETTER READ

Flemish people are more sensitive towards green items

NL 65% FR 58%

NL 65% FR 41%

REGULAR 38% GREEN 40%

I’m concerned about environment

It’s a positive trend that the environment

gets attention in the media

Nestlé pays attention to its C02 emission

Even a short sentence in PS is read by 1/3 readers

Did you notice that Nestlétried to reduce the CO2 impact

of the mailing to the

maximum?

Did you notice a difference

with the previous mailings that

you received from Nestlé?

YES: 31% YES: 21%

Tested Material: Green version

+ b&w logo

+letter

Same paper

Same weight

Same printing

Green version as a real positiveimpact on prospects, not on clients

Prospects Green*102 87 33889 200116

Prospects Regular 100 100 100100 100100

Clients Green*90 97 98113 10093

Clients Regular 100 100 100100 100100

Recall having

received it

Opened it Recall

content

Intent to act

“Do you remember receiving a DM?”

“What did you do with the DM?”

“Can you describe the DM?”

“Do you have the intention to react?”

Read it

*Index = GreenRegular

Not same

effect

Letter

Content !

Prospects see Van Helden more as a green actor than clients

regular 15% green 19%

Van Helden plays a positive role in the protection of the

environment

prospects 24% clients 1 3%

Van Helden is a company preoccupied with the subject

prospects 26% clients 10%

Van Helden pays attention to its C02 emission

Green: 26% have seen the letter 21% the prospects have read it

YES: 19%

PROSPECTS: 21%

CLIENTS: 17%

Description of content DM

+

Did you notice that Van Helden tried to reduce the CO2 impact of the

mailing to the maximum?

FSC isn’t known at all!

Do you know what FSC means ?

NESTLE – B2C: 20%

VAN HELDEN - B2B: 25%

NESTLE – B2C: 72%

VAN HELDEN - B2B: 56%

Never heard about it

Do not know

Some Conclusions…

• The power of DM : the envelop, the colour and the letter, especially in FR

• ‘Green’ text gives a better and higher reading rate

• NL more eco-sensitive than FR

• Weak understanding of the FSC concept

• This doesn’t help positive perception towards paper (one shot)

3. Latest DM Insights

56

57

Active website users recall better a magazine than others (fmcg case)

DM funnel

Received magazine

Recall magazine

Open magazine

Read magazine

“Did you receive the magazine'?"

"What did you do with the last magazine you received

– Did you read it*?"

"Did you open the last issue of the magazine you received?"

Magazine & e-news

100 61708686

557070 9191

Magazine & no e-news

100 38435086865050 8888

n=300

n=300

Magazine & e-news & visit site

100 7885 9292 698585 8888n=300

Source: Market research on 1200 customers, October 2009

58

65% of the e active users still prefers the paper magazine

73%

69%

79%

58%

60%

69%

60%

55%

“To what extent do you think the following statements apply to the internetsite?”

Rating on a scale 1 to 4*, % Certainly + somewhat (%1+2)

57%

57%

65%

49%

I use the website as anaddition to the paper

magazine

The website is goodsubstitute to the

magazine

I prefer the papermagazine

I prefer the website

Magazine + e-newsletter +

active on site

n=300

Magazine + e-newsletter +

not active on site

n=128

Magazine + no e-newsletter +

not active on site

n=19

*1: Certainly, 2: Somewhat, 3: Not really, 4: Certainly not

Source: Market research on 1200 customers, October 2009N = respondents having visited the website

59

Sending an e-newsletter together with the magazine reinforces the potential for tactical purposes

57

64

78

50

61

74

“Do you remember receiving a booklet with

coupons together with the latest edition of the

magazine?”

“Did you use some coupons or do you plan to

do so?"

Coupon recall Intention to use coupons

N = respondents having received magazineSource: Market research on 1200 customers, October 2009

Magazine & e-newsletter & visit site (n=300)

Magazine & e-newsletter (n=300)

Magazine & no e-newsletter (n=300)

conversion rate from recall to usage

95

97

88

60

DM comes in second after cinema (70-75%)

To read you need your maximum attention

The of DMΒeta coefficient( )n

nS β−−= 11

61© bpost - DM Discovery 8 - 30.08.2010

Hyperpersonalization

62© bpost - DM Discovery 8 - 30.08.2010

1 to 1 personalisationincreases results

1 to 1 Lab � Global Conversion Funnel

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%

63

Integrate your investmentsOffline media drive 67% of searches

Source IAB 2010

64

Viral DM : the art of sequencing, integrating social media

Segmentation basedon profile

PersonalizedDM including PURL

Or augmented reality

Microsite including action

Like, push to socialmedia

Register

Response rate >200%

http://www.entrepreneur.com/magazine/entrepreneur/2010/july/207184.html

65

How can we help youDM Workshop – tailor made

TekstDM Campaign coaching – DM Training – DM

Process

Comm.strategy

Targeting Developm.Production

FrankingDistribution

Respons &Return mgt

Post evaluation

Recruitment

DM

Cross/

Upsell DM

Loyalty

DM

DM

Briefing

DM

Targeting

DM

Checker

DM

Pretest

Multimedia

Pilot

DM

Barometer

DM

Response/

Benchmark

DM ROI

Calculator

DM

IntegratorDM Carbon

meter