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Targeted Marketing Evolution

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Introduction to complete, best in class, retail marketing solution using CRM data, optimization and utilizing variable direct mail to create consumer purchase action. EYC and CGX Publishing partner to ...

Introduction to complete, best in class, retail marketing solution using CRM data, optimization and utilizing variable direct mail to create consumer purchase action. EYC and CGX Publishing partner to provide clients a total solution for high volume one-to-one marketing.

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Targeted Marketing Evolution Targeted Marketing Evolution Presentation Transcript

  • Retail Marketing Personalized, One-to-one, Communication Solution
  • Agenda
    Who we are, what we offer
    Consolidated Graphics
    EYC
    The evolution of targeted marketing
    Where we were: Static
    Where we are: True one-to-one communication
    How we can help you can improve the performance of your direct mail
    The insights to better understand your customer
    The tools to improve the relevancy of your direct mail
    Case study
  • Denver-based business development group of Consolidated Graphics, Inc. (NYSE: CGX). With 70 printing businesses strategically located across 27 states, Toronto and Prague, and a presence in Asia, CGX offers an unmatched geographic footprint, unsurpassed capabilities, and unparalleled levels of convenience, efficiency and service. CGX’s vast and technologically advanced sheetfed and web printing capabilities are complemented by the world’s largest integrated digital footprint. CGX delivers end-to-end print production and management solutions that are based on the needs of our customers to improve their results. For more information, visit http://www.cgx.com
    Companies
    EYC is a world leader in managing and working with continuous customer data such as loyalty card data generated by grocery retailers. The company has built intellectual capital around the management of these large databases, and the analysis of customer behavior to deliver insight backed strategic advice to its clients based around the world. For more information, visit http://www.eyc.com
    View slide
  • Best in class solution
    Specializes in high-speed, high-resolution production of personalized material, including print-on-demand orders, using digital inkjet web technology.
    Specializes in using purchase behavior data to combine product and brand preferences with sourced vendor offers, providing retailers with an engine that defines and delivers the relevant content and individualized offers their customers will receive.
    A data-driven, high volume, 100% variable direct mail solution
    developed to serve retail marketers.
    View slide
  • Targeted marketing evolution
    Companies have wanted to be more relevant to their customers but:
    • They didn’t have the data to understand their individual customer’s wants and needs
    • If they had the data, it was cost prohibitive for them to deliver personalized, one-to-one communications
    Family
    Senior
    Hispanic
    Single
    Therefore, customer communications have typically been “one size fits all”
    SEGMENT
    STATIC:
    (One-to-Many)
    Generic mailer
    CREATIVE VERSIONING
    (Some-to-Many)
    Creative treatment #1
    Creative treatment #2
    Creative treatment #3
    Creative treatment #4
    SEGMENT VERSIONING
    (Some-to-Many)
    Family creative
    Senior creative
    Single creative
    Hispanic creative
    FULLY CUSTOMIZED, PERSONALIZED, ONE-TO-ONE MARKETING
  • Even with demographic information customers may look similar
    Faith
    Chicago, IL
    Name
    Address
    Scott
    Denver, CO
    Beth
    Atlanta, GA
    Holly
    Dallas, TX
    Female
    35
    $100,000
    Married
    Yes
    At-home mom
    Gender
    Age
    HHD Income
    Married status
    Presence of kids
    Occupation
    Male
    32
    $75,000
    Single
    No
    Sales rep
    Female
    35
    $110,000
    Single
    No
    Analyst
    Female
    35
    $100,000
    Single
    No
    Project Manager
    Demographic information does not tell you what is most important
    to your most important customers.
  • Move beyond “RFM”Leverage brand preference to improve your marketing
    Relevancy Level
    Faith
    Chicago, IL
    Name
    Address
    Scott
    Denver, CO
    Beth
    Atlanta, GA
    Holly
    Dallas, TX
    Female
    35
    $100K
    Married
    Yes
    At-home mom
    Gender
    Age
    HHD Income
    Married status
    Presence of kids
    Occupation
    Male
    32
    $90K
    Single
    No
    Sales rep
    Female
    36
    $110K
    Single
    No
    Analyst
    Female
    38
    $100K
    Single
    No
    Accountant
    Static
    Last week
    Bi-weekly
    $7,000
    Last week
    Weekly
    $8,000
    Recency
    Frequency
    Monetary spend (annual)
    Last month
    Bi-weekly
    $4,000
    Last week
    Weekly
    $7,000
    Versioning
    50% of cats (organic) Kashi, Stoneyfield,
    75% of cats
    Sara Lee, Kelloggs
    25% of cats
    Totinos, Axe
    50% of cats
    Kraft, Coke
    Products purchased
    Preferred brands
    One-to-one
  • Coupons are important, but haven’t been effective
    Companies have responded by distributing 20% more coupons, but they have not increased engagement.
    During the recession coupon usage increased 14.7 share points.
    Note: 87% of coupons distributed in 2010 were FSIs
    Source: NCH Marketing Services Inc, Coupon Facts Report 2011
  • Bringing households and brands together
    Faith
    Family
    Single
    Optimized mail #1
    Scott
    Optimized mail #2
    Content optimization engine
    Beth
    Optimized mail #3
    Holly
    Optimized mail #4
    SEGMENT
    Optimized mail 2,400,000
    The number of unique pieces that can be created and distributed is unlimited
    9
  • Offer eligibility
    Households are scored twice based on their purchase behavior
    Product/Item level
    Category level
    Categories can be customized
    Item Loyalty
    Product loyalists
    Not
    purchased
    Occasional
    Loyal
    Regular
    Infrequent
    Recent, frequent, High $
    RETAIN
    Recent, frequent, Low $
    GROW
    Category Buying Behavior
    Recent, infrequent
    ACQUIRE
    Not recent
    Not purchased
  • Offer relevancy drives customer migration: Faith
    What we know about the customer
    • Has family
    • Loyalist: Coke, Easy Mac
    • Switcher: Diapers, yogurt
    • Does not shop: Bread, paper towels
    Opportunity
    • Deliver offers that growth breadth and depth of shop and migrate customer to best customer segment
    RETAIN
    Product loyalist so reward to retain with offer for their preferred brand.
    Faith
    GROW
    Customer has purchased, but under indexes vs. peers so receives robust offer for larger pack sizes and multiples.
    ACQUIRE
    Customer has not purchased the item but analysis shows peer group has, so receives robust offers to acquire to category and brand.
  • Offers change as customer migrates: Faith
    Opportunities
    • Maintain loyalty: Huggies, Coke, Easy Mac
    • Further develop loyalty to Sara Lee and Danimals
    • Grow paper towel purchases
    What we know about the customer
    • Has migrated to Primary segment
    • Has grown loyalty to Huggies
    • Have acquired to bread, Sara Lee
    • Has tried paper towels, still underindexes
    Faith
    RETAIN
    Huggies offer is now for $2 off vs. $5 for MEGA pack
    GROW
    Sara Lee coupon is now for multiples.
    Test new Danimals offer.
    ACQUIRE
    Test new Brawny offer.
  • Each customer is unique: Scott
    What we know about the customer
    • Single,shops half the store
    • Loyal: Axe,Totino’s
    • Switcher: Hillshire Farms, Coke
    • Does not buy: Toilet paper, Coffee Mate
    Opportunities
    • Migrate to Primary by growing trips
    • Grow loyalty to Hillshire Farms, Coke
    • Acquire toilet paper purchases from competitor
    Scott
    Retain
    Grow
    Acquire
  • Overlay lifestyle onto product/brand preferences: Holly
    What we know about the customer
    • Single
    • Shops half the store mainly organic
    • Loyal: Kashi, Stoneyfield, Dole
    • Switcher: Toilet paper, paper towels
    • Does not buy: Cheese, detergent
    Opportunities
    • Retain as Primary shopper via more reward coupons
    • When acquiring to cheese, use organic brand
    Holly
    Retain
    Grow
    Acquire
  • Drive Revenue: How we know that variable drives more than static
    Track sales during period, measure difference between groups
    Mail one group
    the static mailer,
    the other the variable
    Split customers into like populations
    Customers available
    to mail
    Control group
    (does not receive a mailing)
    Control Sales
    Static mailer
    = $5MM > control
    Variable mailer
    $2.5MM > static
    A single campaign produced $2.5MM in additional sales that came from simply being more relevant
  • Increase vendor engagement by providing them with the data that they want and need
  • Optimizing your communication will drive results
    2.4MM mailings, only 2 duplicates
    14 slots per mailing, 33MM individual slots that were filled
    30-85% increase in sales per campaign
    100-200% increase in offer redemption rates*
    5-15% mailer response rate** (industry standard = 2%)
    Improved ROI by >35%***
    Increases vendor participation in the marketing programs
    Case Studies
    * Redemption rate: Total number of coupons redeemed divided by total number mailed
    ** Response rate: of all people mailed, how many people used AT LEAST one coupon
    *** ROI: (Sales generated – cost of the marketing) divided by the cost of the marketing
  • THANK YOU!
    CONTACT INFO
    Geoff Seper
    VP – Customer Marketing
    EYC
    952-428-7913
    Geoff.seper@eyc.com