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Dmaw Presentation July 13 0 Final
 

Dmaw Presentation July 13 0 Final

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Presentation at the DMAW Bridges conference. The story behind the first billion dollars. a case study on customer profiling, segmentation and precision targeting

Presentation at the DMAW Bridges conference. The story behind the first billion dollars. a case study on customer profiling, segmentation and precision targeting

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    Dmaw Presentation July 13 0 Final Dmaw Presentation July 13 0 Final Presentation Transcript

    • By Frank Peterson Jr., Vice President MGI Jorge Restrepo, President EurekaFacts Direct Marketing Optimization: The story behind the first Billion dollars Presented at the 2006 Direct Marketing Association Conference
    • The Story
      • Virginia Commerce Bank is a Virginia state-chartered bank that commenced operations in May 1988. The Bank pursues a traditional community banking strategy, offering a full range of business and consumer banking services through sixteen branch offices, two residential mortgage offices and one investment services office.
      • VCB has grown significantly since we started our campaign in 2003. Assets grew from $780 million in 2003 to $1.8 Billion in 2006. The winning strategy, owed to strong management and a reputable brand, includes direct marketing in its mix.
      • A targeted direct marketing effort using data analysis and creative genius contributed to this outcome.
      • This success story shows how optimized direct marketing can be part of a winning strategy. The information presented will discuss key elements of the marketing optimization process.
    • The Landscape
      • Aggressive promotion by many competitors, some very large.
      • New players entering the field and consolidation of others through mergers and acquisitions.
      • Competition for new customers in the market can be extreme.
      • Increased distrust in corporations and their offerings.
    • The Campaign
      • Integrated marketing campaign where direct mail is the catalyst for response.
      • Built on strengths of the brand.
      • Utilize available data and personalization technologies to market one-on-one.
      • Support offers with materials including web site, POP materials, staff involvement.
      • Prioritize and implement a constant effort.
      • Test, measure and improve.
    • Components
      • Customer profiles.
      • Segmentation, targeting and positioning strategy.
      • Developed a set of offers that increased loyalty and increased deposits among current customers.
      • Developed an acquisition strategy that brought new customers.
      • Direct marketing to strengthen service penetration.
      • Supporting communications include POP, web and other materials.
      • Campaign evaluation.
    • Customer Profiling
      • Develop customer profiles with demographic, attitudinal and usage data
        • Data overlays to better understand the demographics of the customers
        • Understanding of the lifestyles
        • Product/Service usage
        • Understand other key factors such as geographic location
      • Identify threats and opportunities
        • Identify hot buttons & barriers
        • Understand context
    • Segmentation
      • Identify the market segments and niches
      • Segment the customer database using demographic, attitudinal, behavioral data. True segments are:
        • Homogeneous within, heterogeneous across
        • Respond similarly to marketing stimuli
        • Can be reached
      • Evaluate possible segmentation schemas and pick target segments.
      • Characterize segments.
      • Identify predictors of response.
    • Customer data Usage Demographic, household data Geography, geo-demographics, etc Targeted offers Targeted offers
    • Offer Targeting
      • Identify optimum offers per segment
      • Develop offer sequence
      • Support personalized one-to-one offers within a segmented marketing approach
      • Provide optimum mix information
    • Continuous Improvement
      • Success achieved through test and measure
      • Monitor key business measures
      • Direct mail optimization / campaign metrics
      • Testing includes offer, package, list, timing
    • Lessons Learned
      • Define clear objectives
      • Build and deliver on your brand promises
      • Segmentation, targeting and positioning is key
      • Make maximum use of data, creative and personalization technologies
      • Integrated campaigns across channels have higher impact
      • Loyalty building is an ongoing effort
      • Test, monitor and improve
    • Discussion Questions & Discussion