NEW WAVE OF SEGMENTATION<br />Anita John & Karen Zhang<br />February 22, 2011<br />
Segmentation as we know it<br />Based on what they’ve bought<br />Based on what they’ve done<br />Based on what they might...
Hpdirect Strategic vision<br />Build Relevance<br />Channel Effectiveness<br />Data-driven Marketing<br />One Customer Voi...
Maximize ROI by channel by customer
Persona based marketing built on rich & predictive customer insights
HP customer no matter the origin</li></ul>1<br />2<br />3<br />4<br />Our Pillars<br />Objective: Create meaningful relati...
Struggle #1: Doing the right thing<br />1st Time Visitor<br />Winback<br />1st Time Purchase<br />Loyalty<br />Repeat<br /...
<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><b...
Demographics are few and far between to allow for distinction
Value based (ie-best) works, but can fatigue and leave majority of file untouched
What audience do you tap into?
PCs – change in memory, style, hard drive
Printers –AIO, wireless </li></li></ul><li>Come on…there has to be a better way<br />360 view of the customer<br />Differe...
Understanding the need<br />Objective: Resonate with customer core value at a deeper level<br />Customer Intelligence <br ...
Personas<br />Identify customer core values<br />Attitudinal Measurements<br />Customer Segments<br />Life value / purpose...
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Etail Presentation Feb 22 320 Pm Email Summit Rev3

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Persona Segmentations-It Can Work

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  • Etail Presentation Feb 22 320 Pm Email Summit Rev3

    1. 1. NEW WAVE OF SEGMENTATION<br />Anita John & Karen Zhang<br />February 22, 2011<br />
    2. 2. Segmentation as we know it<br />Based on what they’ve bought<br />Based on what they’ve done<br />Based on what they might do<br />
    3. 3. Hpdirect Strategic vision<br />Build Relevance<br />Channel Effectiveness<br />Data-driven Marketing<br />One Customer Voice<br /><ul><li>Market based on “who” and “what” they want
    4. 4. Maximize ROI by channel by customer
    5. 5. Persona based marketing built on rich & predictive customer insights
    6. 6. HP customer no matter the origin</li></ul>1<br />2<br />3<br />4<br />Our Pillars<br />Objective: Create meaningful relationship with ALL existing HP customers across all touch points that maximizes repeat purchase and loyalty<br />= Customers for Life!<br />Ignite<br />Engage<br />Re-engage<br />
    7. 7. Struggle #1: Doing the right thing<br />1st Time Visitor<br />Winback<br />1st Time Purchase<br />Loyalty<br />Repeat<br /> Purchase<br />Active<br />Inactive<br />New Customer<br />Test<br />Prospect<br />Highly Active<br />Re-activation Program<br />Best Customer Programs<br />Acquisition Programs<br />New Customer Programs<br />Repeat / Upsell / <br />X-Sell <br />Promos<br />Learn<br />Refine<br />Tell-a-friend/Referral Programs (Twitter, FB, Product Reviews, etc)<br />Social Media<br />Partnerships<br />Email<br />Online Advertising<br />Direct Mail/ Catalog<br />Affiliates<br />Contextual<br />Print<br />SEO/SEM<br />Mobile<br />Test<br />
    8. 8. <br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Struggle #2: RFM/RFC not enough when…<br />Mature Market<br />New Products<br />Homogenous customer view<br /><ul><li>Purchase behavior similar
    9. 9. Demographics are few and far between to allow for distinction
    10. 10. Value based (ie-best) works, but can fatigue and leave majority of file untouched
    11. 11. What audience do you tap into?
    12. 12. PCs – change in memory, style, hard drive
    13. 13. Printers –AIO, wireless </li></li></ul><li>Come on…there has to be a better way<br />360 view of the customer<br />Differentiation<br />Actionable<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />360<br />
    14. 14. Understanding the need<br />Objective: Resonate with customer core value at a deeper level<br />Customer Intelligence <br />Go- To-Market Execution<br />Business Needs<br />Email<br />1. Customer Core Value <br />A<br />Persona V.1: Demographics<br />Direct Mail<br />B<br />Persona V.2: Product Feature<br />2. Behavioral Differences <br />Web<br />C<br />Persona V.3: Life Value <br />3. Actionable<br />Outbound<br />Take away: it’s a journey, not a task<br />
    15. 15. Personas<br />Identify customer core values<br />Attitudinal Measurements<br />Customer Segments<br />Life value / purpose: <br />role of technology in a person’s life<br />Technology Readiness: <br />role of technology in a person’s life<br />8<br />
    16. 16. 360 view<br />Created a data mart for overall analysis<br />+<br /><ul><li>Purchase behavior
    17. 17. Early adopter behavior vs. followers
    18. 18. Velocity of purchase -Time lag- (for repeat buyers)
    19. 19. Repeat behavior
    20. 20. Demographic
    21. 21. Attitudinal (interest variables)
    22. 22. Life stage (movers, family, retirement, etc)
    23. 23. Zip Level details
    24. 24. Income range
    25. 25. Occupation
    26. 26. Site behavior (visits, pages, duration,)
    27. 27. Velocity of purchase (time from intent to purchase)
    28. 28. Product category pages visited</li></ul>Mini data mart<br /><ul><li>Campaign Response data
    29. 29. Program and Channel influences</li></ul>Customer segments based on survey result<br />
    30. 30. Behavioral differences<br />Understand how attitudinal segments relate to behavior<br /><ul><li>Fewer Product Pages</li></ul>Web Browsing<br /><ul><li>Less likely to be small home office owners
    31. 31. Highest high performance PC penetration
    32. 32. Least Photo smart Printers </li></ul>Segment 1<br />Demo/Lifestyle<br />SOHO <br />Purchase Behavior <br /><ul><li>Higher tendency toward repeat purchase </li></ul>Interactive: <br />Tendency is toward comparison shopping <br />Less Likely to use search <br /><ul><li>Young, success driven individuals with a rich social life
    33. 33. Technology is a great companion that helps them stay in touch with their social network.</li></ul>Marketing response<br />Repeat Customer <br />
    34. 34. actionable<br />Extrapolate to Total Universe<br />x<br />x<br />.<br />.<br />.<br />x<br />i<br />F(x) = Supervised Classification algorithms<br />y, segment<br />X = <br />n<br />Total Universe<br />
    35. 35. Testing strategy<br />Campaign Level<br />Persona 1<br />Persona 3<br />Persona 2<br /><ul><li>Phase 1 – Tested creative and product – prove it works
    36. 36. Back end analysis conducted with a hold out group
    37. 37. Phase 2 - Multivariate – Offer, pricings, product, creative messaging</li></li></ul><li>Learnings<br />Validated the segmentation: good predictor of customer behavior, response and value.<br />Need to continue to iterate and perfect<br />Use of segments help drive more qualified traffic<br />Lift in conversion was as high as 56%*<br />Lift in rev/send was as high as 46%*<br />Automation and templates were critical to execution<br />*All results were at a 90% confidence level.<br />
    38. 38. Next steps<br />Constant Journey<br />Customer segments<br />Integrate into all channels (display, social, DM)<br />Expand analytics & revamp forecast models (customer-driven)<br />Create personalized web, call center and order processing experience<br />Build out a robust automated & dynamic content management platform<br />Multi-offer engine<br />Iterate on segment definitions (refresh every other year)<br />
    39. 39. Takeaways<br />Gain senior management sponsorship<br />Your database and analytics group are your right hand<br />Link attitudinal and behavior at the deepest level<br />Customer’s needs may change, but their core values stay the same<br />Consider this an iterative process<br />Test at a campaign and customer level overtime<br />Think of customers as multi-dimensional<br />Make sure you have the infrastructure to support personas in the long-term<br />

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