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Etail Presentation  Feb 22 320 Pm Email Summit Rev3
 

Etail Presentation Feb 22 320 Pm Email Summit Rev3

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Persona Segmentations-It Can Work

Persona Segmentations-It Can Work

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Etail Presentation  Feb 22 320 Pm Email Summit Rev3 Etail Presentation Feb 22 320 Pm Email Summit Rev3 Presentation Transcript

  • NEW WAVE OF SEGMENTATION
    Anita John & Karen Zhang
    February 22, 2011
  • Segmentation as we know it
    Based on what they’ve bought
    Based on what they’ve done
    Based on what they might do
  • Hpdirect Strategic vision
    Build Relevance
    Channel Effectiveness
    Data-driven Marketing
    One Customer Voice
    • Market based on “who” and “what” they want
    • Maximize ROI by channel by customer
    • Persona based marketing built on rich & predictive customer insights
    • HP customer no matter the origin
    1
    2
    3
    4
    Our Pillars
    Objective: Create meaningful relationship with ALL existing HP customers across all touch points that maximizes repeat purchase and loyalty
    = Customers for Life!
    Ignite
    Engage
    Re-engage
  • Struggle #1: Doing the right thing
    1st Time Visitor
    Winback
    1st Time Purchase
    Loyalty
    Repeat
    Purchase
    Active
    Inactive
    New Customer
    Test
    Prospect
    Highly Active
    Re-activation Program
    Best Customer Programs
    Acquisition Programs
    New Customer Programs
    Repeat / Upsell /
    X-Sell
    Promos
    Learn
    Refine
    Tell-a-friend/Referral Programs (Twitter, FB, Product Reviews, etc)
    Social Media
    Partnerships
    Email
    Online Advertising
    Direct Mail/ Catalog
    Affiliates
    Contextual
    Print
    SEO/SEM
    Mobile
    Test













































  • Struggle #2: RFM/RFC not enough when…
    Mature Market
    New Products
    Homogenous customer view
    • Purchase behavior similar
    • 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
  • Come on…there has to be a better way
    360 view of the customer
    Differentiation
    Actionable



























































    360
  • Understanding the need
    Objective: Resonate with customer core value at a deeper level
    Customer Intelligence
    Go- To-Market Execution
    Business Needs
    Email
    1. Customer Core Value
    A
    Persona V.1: Demographics
    Direct Mail
    B
    Persona V.2: Product Feature
    2. Behavioral Differences
    Web
    C
    Persona V.3: Life Value
    3. Actionable
    Outbound
    Take away: it’s a journey, not a task
  • Personas
    Identify customer core values
    Attitudinal Measurements
    Customer Segments
    Life value / purpose:
    role of technology in a person’s life
    Technology Readiness:
    role of technology in a person’s life
    8
  • 360 view
    Created a data mart for overall analysis
    +
    • Purchase behavior
    • Early adopter behavior vs. followers
    • Velocity of purchase -Time lag- (for repeat buyers)
    • Repeat behavior
    • Demographic
    • Attitudinal (interest variables)
    • Life stage (movers, family, retirement, etc)
    • Zip Level details
    • Income range
    • Occupation
    • Site behavior (visits, pages, duration,)
    • Velocity of purchase (time from intent to purchase)
    • Product category pages visited
    Mini data mart
    • Campaign Response data
    • Program and Channel influences
    Customer segments based on survey result
  • Behavioral differences
    Understand how attitudinal segments relate to behavior
    • Fewer Product Pages
    Web Browsing
    • Less likely to be small home office owners
    • Highest high performance PC penetration
    • Least Photo smart Printers
    Segment 1
    Demo/Lifestyle
    SOHO
    Purchase Behavior
    • Higher tendency toward repeat purchase
    Interactive:
    Tendency is toward comparison shopping
    Less Likely to use search
    • Young, success driven individuals with a rich social life
    • Technology is a great companion that helps them stay in touch with their social network.
    Marketing response
    Repeat Customer
  • actionable
    Extrapolate to Total Universe
    x
    x
    .
    .
    .
    x
    i
    F(x) = Supervised Classification algorithms
    y, segment
    X =
    n
    Total Universe
  • Testing strategy
    Campaign Level
    Persona 1
    Persona 3
    Persona 2
    • Phase 1 – Tested creative and product – prove it works
    • Back end analysis conducted with a hold out group
    • Phase 2 - Multivariate – Offer, pricings, product, creative messaging
  • Learnings
    Validated the segmentation: good predictor of customer behavior, response and value.
    Need to continue to iterate and perfect
    Use of segments help drive more qualified traffic
    Lift in conversion was as high as 56%*
    Lift in rev/send was as high as 46%*
    Automation and templates were critical to execution
    *All results were at a 90% confidence level.
  • Next steps
    Constant Journey
    Customer segments
    Integrate into all channels (display, social, DM)
    Expand analytics & revamp forecast models (customer-driven)
    Create personalized web, call center and order processing experience
    Build out a robust automated & dynamic content management platform
    Multi-offer engine
    Iterate on segment definitions (refresh every other year)
  • Takeaways
    Gain senior management sponsorship
    Your database and analytics group are your right hand
    Link attitudinal and behavior at the deepest level
    Customer’s needs may change, but their core values stay the same
    Consider this an iterative process
    Test at a campaign and customer level overtime
    Think of customers as multi-dimensional
    Make sure you have the infrastructure to support personas in the long-term