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 provide clients a total solution for high volume one-to-one marketing.

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Targeted Marketing Evolution

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

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