Microsoft power point the future of direct marketing

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These are the slides from the joint event from The Direct Marketing Association and LBI London- The Future of Direct Marketing on 2 February 2012. Speakers include Virgin Atlantic and BT. Gold Sponsor Lithium, silver sponsor Comufy.

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Microsoft power point the future of direct marketing

  1. 1. The future of direct marketingThursday 2 February 2012, LBi London Gold sponsor Silver sponsor Event partner
  2. 2. Introduction from chairChris Combemale,Chief Executive Director, DMA
  3. 3. Thank youGold sponsorSilver sponsorEvent partner
  4. 4. Interact!•Twitter: #dmalbi @DMA_UK@LBiLondon•LinkedIn & Facebook groups•www.dma.org.uk
  5. 5. The future of direct marketingThe Importance of Lifetime ValueChris Combemale, Executive Director, DMA
  6. 6. The value of a customerWhere do you start?
  7. 7. Not all customers are equalRank these profiles for Value of the subscriber• Entered competition to win a holiday on-line 3 years ago – not clicked since• One-time customer, last bought 2 years ago• Active customer, buys every 4 months• Active customer, buys once a year but top 10% for order value
  8. 8. Transactional DataFrequency Value Recency
  9. 9. “Lifetime” alters value• How long do customers stay active for?• What revenue will they generate per year?• Work this out for the whole database• Then for customer segments• That gives a lifetime value (LTV)• What about different acquisition source?
  10. 10. Different Metrics, Different Conclusions • Click-through rate • New or repeat visitors • Bounce Rate • Engagement • Micro-conversion • Conversion to Sale
  11. 11. “All of the above is focusing on short term success.Even measuring “Visitor Conversion Rates” is akin to declaring success after a one night stand. Visit based conversion rates promote bad marketing behaviour.” www.kaushik.net
  12. 12. How about adding these? • First month sales • 6 months sales • 3 years sales
  13. 13. A Hypothetical Example Best Average Customers CustomersPurchases per year 4 2Average Order Value £70 £50Annual Revenue £280 £100Gross Profit Margin 10% 10%Gross Profit £28 £10Acquisition Cost £8 £4Net Profit £20 £6
  14. 14. A Hypothetical Example Part 2 Best Average Customers CustomersLife Expectancy 3 years 2 yearsRevenue Year 1 £280 £100Revenue Year 2 £220 £60Revenue Year 3 £180 £0Lifetime Revenue £680 £160Gross Profit Margin 10% 10%Lifetime Gross Profit £68 £16Acquisition Costs £8 £4Lifetime Net Profit £60 £12 »
  15. 15. Top Tips• Remember the Pareto Principle• Acquire the right customers• Be willing to pay for them• Know what they look like, where they they came from, what they want• Know lifetime value by lead source and by segment• Invest to keep them
  16. 16. Rethinking the traditional marketingmodel: from campaigns toconversationsJames Young, Digital Marketing Manager, Global Marketing,Sony EricssonPipa Unsworth, Global head of CRM, LBi Group
  17. 17. Rethinking theClick to edit Mastertraditional marketingtext stylesmodel: fromcampaigns toconversationsJames Young - Digital MarketingClick to editGlobal Marketing, SonyManager, Master text stylesEricssonPipa Unsworth - Global Head ofCRM, LBi Group
  18. 18. SONY ERICSSON BRIEF• Video content to build brand awareness and drive engagement• Opting out of feature battle• Objectives for Xperia to engage and create lasting relationships with influential early adopters
  19. 19. LBIS RESPONSE: XPERIA STUDIO• Xperia Studio was born – “Reality Remade”• Create content with phone at the heart• Wide open brief to collaborators
  20. 20. LBI’S RESPONSE• Wide variety of content collaborators; – Riding in the Moab with 360 cameras – BMX tricks – Invisible Universe application – Hack-a-thon at an interactive art studio located on a barge – Surf photography• Launched in September 2011 – XperiaStudio.com – Xperia Studio Facebook tab – Twitter – YouTube – ePR
  21. 21. TED VIDEO
  22. 22. XPERIA STUDIO RESULTS
  23. 23. DRIVING SOCIAL CURRENCY FOR XPERIA STUDIO DEFINE OUR STRENGTHEN GIVE ME COLLECTIVE MY BOND STATUS IDENTITY
  24. 24. CREATING SOCIAL CURRENCY FOR XPERIA STUDIO CONTENT USING COMUFY• Social CRM platform Comufy is used to drive social currency for Xperia Studio• Xperia Studio Facebook users can sign up to be first to know about new Xperia Studio content• Users receive personalised newsfeed posts about new exclusive content, which can be easily Shared, Commented or ‘Liked’ for viral spread
  25. 25. XPERIA STUDIO CONTENT GENERATES CONVERSATION
  26. 26. XPERIA STUDIO RESULTS – COMUFY REACH Potential reach 2.6m Total friends of fans Friends of fans 245k reached friends reached through shares Xperia Studio Fans 10K registered
  27. 27. XPERIA STUDIO RESULTS – EMAIL VS. SOCIAL DIRECT MESSAGINGSocial Direct average click through: 20% Email average click through: 5.9%* *Epsilon 2011 Email Trends and Benchmark
  28. 28. XPERIA STUDIO IN 2012• Xperia Studio will continue to be a key part of Sony Ericsson’s social strategy in 2012• New collaborator content on Xperia Studio is coming• Social direct messaging will continue to be used to drive social currency• Sign up here http://www.facebook.com/sonyericsson
  29. 29. About LBi CRMClick to edit Mastertext stylesClick UnsworthPipa to edit Master text stylesGlobal Head of CRMPipa.Unsworth@LBi.com@Peepa
  30. 30. Mobile direct marketing: thechallenge and opportunitiesIlicco Elia, Head of Mobile, LBi Group
  31. 31. Ilicco Eliahead of mobile, LBi@ilicco
  32. 32. Technology has changedeverything
  33. 33. How technology feels
  34. 34. Early Video Calling“ The Video camera icon is where you would see the person you’re speaking to… if they had a phone that is compatible with your video call.”
  35. 35. How technologymakes you feel
  36. 36. Prada NYC / Soho
  37. 37. The end-to-end journeyneeds to be considered morethan ever before.
  38. 38. Martin Cooper Martin, a Motorola researcher and executive, made the first analog mobile phone call using a heavy prototype model. He called Dr.Joel S. Engel of Bell Labs
  39. 39. There’s an app for that Monik Markus
  40. 40. Thank you
  41. 41. Using “big data” to make the big decisionsAllison Wightman, Head of eBusiness, Virgin Atlantic
  42. 42. The Future of Direct MarketingUsing ‘BIG’ data to drive loyaltyAllison WightmanHead of eBusinessVirgin Atlantic Airways
  43. 43. How Virgin Atlantic uses its wealth of demographic,behavioural and attitudinal data to engage customers,defend its market position and remain relevant in tougheconomic times
  44. 44. Understating the obvious...― It is not the best time to be in the airline business ― Economic decline ― Political uncertainty ― Physical traumas― The only constant is changeNeed for innovative ideas to capturethe travellers imagination
  45. 45. Flying Club overview ― 2.7 million members ― Global programme ― US, UK, ROW ― Extensive earning opportunities ― Last year, 23 triggers ― new ‘Welcome programme’ based on the insights from previous activity ― Email postal and SMS ― Working to totally integrate our relationship with customers where ever they touch us ― Online, social, retail, airport, kiosk Whatever the technology, the same rules apply...Right message to the right customers through the right channel at the right time
  46. 46. Driving Effectiveness through Data andInsight
  47. 47. Business As Usual― The trigger programme― Automated customer communication programme― Enables us ― to exceed our annual revenue targets ― improve performance year on year― Continues to evolve whilst retaining relevance to customers within their Virgin Atlantic lifetime journey.
  48. 48. Never standing still...― The newest trigger...― SMS alert 2.5 hours before the flight― Encouraging foreign currency exchange at the airport― Significant conversion of 5%― demonstrates the use of timely communication within the programme.― This augments the existing Forex email trigger campaign
  49. 49. Planning and Strategy Recency 0 - 6 Months 24 – 36 Months 6 - 24 Months Flying Club Segmentation / Future― 5+ Seasonal Flyers Flying High ― 7 groups, 29 types Ex Execs ― recency, frequency and value 3- 4 No. of Flights Occasional Flyers Fledgling Flyers ― demographic, economic, social 1- 2 Almost Grounded ― wider travelling behaviours Monitor the health of the 0 Currently Grounded― database― Early warning of negative behaviours― Common currency
  50. 50. Tactical Activity ― Flight Curve analysis can optimise sale fare relevance and effectiveness 900 Flight Curves - London Heathrow to Boston (All Cabins) Median No. of Sector Bookings/Departures 800 Sale fare? 700 600 1 Jul 45% 8 Sep 500 9 Aug 38% 8 Nov 400 9 Oct 18% 300 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sector Bookings Sector Departures54
  51. 51. So what’s next?― The future of Direct Marketing at Virgin is bright― But it will look different to what it is today― More channels― More choice― More integration― More interaction― More personalBig Data will always support the Big decisions of this small but Big brand
  52. 52. Refreshment Break
  53. 53. Social direct messagingPhilipp Mohr, Chief Executive Officer, Comufy
  54. 54. Enterprise Social Media Management System ® Comufy is a registered trademark of Astrapia Ltd.
  55. 55. Social Media Management System The Comufy Social Suite Key benefits Data driven Full insight Proven ROI One-to-one communicatio into users’ High click communicatio n behaviour rate nSome of our Enterprise clientsSome of our partners
  56. 56. Overview • Evolution of Social Media • Opportunities • Build communities and be relevant • Outlook `Confidential
  57. 57. Why social media? ` • 50% logon very day • Average 700 minutes / month • 140 friendsInfographic via BambooConfidential
  58. 58. Maturity Young channel that is starting to mature, just like email did `Confidential
  59. 59. The Evolution of a FanPage
  60. 60. Facebook Fan Page Evolution
  61. 61. Facebook Fan Page Evolution
  62. 62. Facebook Fan Page Evolution
  63. 63. Broadcast Social Messaging
  64. 64. Current State `Confidential
  65. 65. Is this it?
  66. 66. Social Media Opportunities A lot of data and a big user base Compelling offering + Be relevant • Clear value exchange • 1:1 communication • Build strong • Engagement communities • Relevancy • Offer rewards • Personalisation • Dynamic content • Targeted, direct messaging
  67. 67. Clear Value Exchange
  68. 68. Be Relevant
  69. 69. Be Relevant
  70. 70. User signup Store data Confidential
  71. 71. Example Results• 35% click rates• Very high share rates: • Campaign to 10,000 users • Directly shared by 3,228 users • 945,291 total clicks through viral spread• Key are tempting messages and good content Confidential
  72. 72. Social Flow `Confidential
  73. 73. phil@comufy.com
  74. 74. Customer service is the newmarketingWarren Buckley, Managing Director Customer Services, BT
  75. 75. The empowered consumer requiresa new means of engagementEd Van Siclen, SVP Business Development and Global Alliances, Lithium
  76. 76. The Age of the EmpoweredConsumerEd Van SiclenSVP, BD & Global Alliances@edvansiclen
  77. 77. 8Time Magazine’s Man of the Year
  78. 78. welcome to thesocialrevolution:around theglobe, peopleare seizingpower
  79. 79. civildisobedience:the social webhas organizedand amplifiedour global voice confidential
  80. 80. the power of theconnected world:collectively, we aredoing great &inspiring things atunprecedentedscale
  81. 81. applied gametheory:gamers modelprotein structurewhich had eludedscientists fordecades
  82. 82. the good, thebad and theugly:the dawn of themobile, socialand incrediblyempoweredconsumer: confidential
  83. 83. beware of thethunder lizard!businessmodels arebeing radicallytransformed confidential
  84. 84. 88%Social Media SpendReach $2.1Bn in US of CEOs surveyed reported that their top priority for the next five years was ‘getting closer to their customers’ Source: Forrester US Interactive Marketing Forecast , 2011
  85. 85. Social media helps us to: 57% be more relevant to our customers build better 54% customer relationships build awareness 50% and demand forcustomer focus is our products CMO Council, 2011the major driverbehind social $2.1 spentB2011 in social media as % of marketing budget
  86. 86. Customers want an authentic conversation and engagement with buyers ‘like them’but customerswant to interact 14% of consumers trust advertisementswith each other,not just you 90% of consumers trust peer recommendations
  87. 87. social brings new complexities how do I manage and how do I measure thewho do I engage and how? scale? impact? superior design features of marketers 41% surveyed had no proven ROI of social initiatives
  88. 88. Win the new Kindle withbuilt-in WiFi!!Visit www.lithium-sce.com and complete the shortsurvey**Every participant will receive an electronic copy version of “TheScience of Social” featuring the work of Dr Michael Wu. This bookprovides readers with a new perspective of understanding theircustomers, their customers expectations, behavior, and potential.
  89. 89. Panel Debate: Is the future ofall marketing direct?• James Young, Digital Marketing Manager, Global Marketing, Sony Ericsson• Pipa Unsworth, Global Head of CRM, LBi Group• Ilicco Elia, Head of Mobile, LBi Group• Allison Wightman, Head of eBusiness, Virgin Atlantic• Philipp Mohr, Chief Executive Officer, Comufy• Warren Buckley, Managing Director Customer Services, BT• Ed Van Siclen, SVP Business Development and Global Alliances, Lithium
  90. 90. Closing remarks from chairChris Combemale, Chief Executive Director, DMA
  91. 91. Drinks and networking
  92. 92. Upcoming DMA eventsDMA data conferenceThursday 1 March 2012Go integratedWednesday 28 March 2012Please visit www.dma.org.uk/event-listing or visit the registrationdesk for more information

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