Power of Personalisation - Transpromo Communications as a Real Revenue Generator - L Watson for Marcus Evans Shopper Marketing 11-06-12ss

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Power of Personalisation: Transpromo Communications as a Real Revenue Generator

11 June 2012

Lisa Watson

Regional Segment Manager, HP IPG APJ

Chairman, Direct Marketing Association of Singapore


Today We'll Talk About....

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Marketing Today

Power of Relevance

Transactional Opportunities

Digital Drives Results


The Old Way of Marketing is Over…

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Because the Customer’s World Has Changed

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More POWER More choice

More information


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The Force_ Volkswagen Commercial.mp4


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53+ million views

The Force_ Volkswagen Commercial.mp4


Effective Marketing Communications Has Evolved

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Buy Try

Trust

Talk

Reply Buy Stay

Chat

Share Tell Buy

Collaborate


So Remember Who’s In Charge…

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This is NOT the Customer


So Remember Who’s In Charge…

This is YOU!

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Word of Mouth is Critical!

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Buy Try

Trust

Talk

Reply Buy Stay

Chat

Share Tell Buy

Collaborate


When It Comes to Sharing, Don’t Forget …

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Tells ONE Tells TEN



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Marketing Today

Power of Relevance




Nothing is More Important in Marketing Today Than Relevance

Consumers REALLY hate spam!

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Consumers are Fighting Back!

• 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”


They Hate Spam Even More Than Junk Mail!

Relevance!

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How Do We Deliver Relevance?

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Data is Our Oxygen!

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Customized

Personalized

Targeted

Accountable


Targeted: Move from VOLUME to VALUE

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The RIGHT Customer The RIGHT Product The RIGHT Channel

The RIGHT Time The RIGHT Message

Mass Communication

VOLUME

Personalization & Customization

VALUE

Relevance


Personalization + Customization = Relevance

• 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

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Personalization is Relatively Easy

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Customization Means Varying Content/Images as Well

Change the image based on my profile

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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.

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Accountable: A Word About Tracking

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• 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?

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The Latest QR Codes

25 03-Jul-12 HP Confidential

Color increases scan rates 25-30%

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Marketing Today

Power of Relevance




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

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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

<5% throw out bills unopened

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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

HP Confidential

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Case Studies

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Farmers Retail

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Farmers – a leading New Zealand department store

Head-to-Head Test • There was a control

group of 50k who received standard black overprint on base stock with generic offers.

• The actual colour mailing, also 50k, received full colour highly personalised letters...


Farmers’ Red Dot Sale

Personalized

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Farmers’ Beauty Club Points Statement

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Colruyt Group

http://www.colruyt.be/colruyt/static/1024/nl.shtml

http://www.colruyt.be/colruyt/static/1024/nl.shtml


Colruyt Stores - Belgium

32 pages 4 pages Great Prices Selected for You


Results – Part 1

On top of our lowest price guarantee for each product at every moment, we provide MORE:

– Efficiency: • Concentrating useful promotions in smaller document less time & effort to plan

• Make sure our customers obtain maximal benefit especially over longer periods

– Sustainability: • Greener promotions: 1m+ * 16 pages * 26 leaflets = Over 600m pages saved

– Servicability: • Helping our customer choose & gain time by limiting the number of coupons

= Basics of Colruyt communication


Results – Part 2

More HH use coupons

More coupons used per HH

More € spent per HH

Higher Loyalty !


Maximo’s UK

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Maximo’s UK

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Maximo’s UK

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Who Should Consider TransPromo?

…but you MUST be able to track campaign results!

Any organization with customer data that mails an invoice, statement etc…

(doesn’t have to be a big bank!)

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Marketing Today

Power of Relevance




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

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Using Data & Digital to Communicate Intelligently Delivers Relevance

Personalized & Customized

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Accountable

And Using Data & Digital to Communicate Intelligently Delivers Results

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HP Confidential 03-Jul-12

Virtuous Circle

Virtuous Circle

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The Really Great News is…

BUT not only online!

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A Surprising User of Direct Mail!

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Summary

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Consumers today are demanding relevance

Data is the key to delivering intelligent communications

Variable data makes marketing relevant &

accountable



[email protected]

Questions?

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Thank you

Technology

Power of Personalisation - Transpromo Communications as a Real Revenue Generator - L Watson for Marcus Evans Shopper Marketing 11-06-12ss