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The future of direct marketing, Thursday 2 february 2012


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Please find attached the full set of slides from the "The future of direct marketing" event on Thursday 2 February 2012. This event was organised by The Direct Marketing Association and LBi. You can see the event converstion at #dmalbi

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The future of direct marketing, Thursday 2 february 2012

  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•
  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 to 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.”
  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. Rethinking the traditional marketingmodel: from campaigns toconversationsJames Young, Digital Marketing Manager, Global Marketing,Sony EricssonPipa Unsworth, Global head of CRM, LBi Group
  16. 16. Rethinking theClick to edit Mastertraditional marketingtext stylesmodel: fromcampaigns toconversationsJames Young - Digital MarketingClick to edit MasterMarketing, SonyManager, Global text stylesEricssonPipa Unsworth - Global Head ofCRM, LBi Group
  17. 17. 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
  18. 18. LBIS RESPONSE: XPERIA STUDIO• Xperia Studio was born – “Reality Remade”• Create content with phone at the heart• Wide open brief to collaborators
  19. 19. 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 – – Xperia Studio Facebook tab – Twitter – YouTube – ePR
  20. 20. TED VIDEO
  23. 23. 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 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
  26. 26. 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
  27. 27. 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
  28. 28. About LBi CRMClick to edit Mastertext stylesClick UnsworthPipa to edit Master text stylesGlobal Head of
  29. 29. Mobile direct marketing: thechallenge and opportunitiesIlicco Elia, Head of Mobile, LBi Group
  30. 30. Using “big data” to make the big decisionsAllison Wightman, Head of eBusiness, Virgin Atlantic
  31. 31. The Future of Direct MarketingUsing ‘BIG’ data to drive loyaltyAllison WightmanHead of eBusinessVirgin Atlantic Airways
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35. Driving Effectiveness through Data andInsight
  36. 36. 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.
  37. 37. 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
  38. 38. 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
  39. 39. 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 Departures39
  40. 40. 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
  41. 41. Refreshment Break
  42. 42. Social direct messagingPhilipp Mohr, Chief Executive Officer, Comufy
  43. 43. Enterprise Social Media Management System ® Comufy is a registered trademark of Astrapia Ltd.
  44. 44. 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
  45. 45. Overview • Evolution of Social Media • Opportunities • Build communities and be relevant • Outlook `Confidential
  46. 46. Why social media? ` • 50% logon very day • Average 700 minutes / month • 140 friendsInfographic via BambooConfidential
  47. 47. Maturity Young channel that is starting to mature, just like email did `Confidential
  48. 48. The Evolution of a FanPage
  49. 49. Facebook Fan Page Evolution
  50. 50. Facebook Fan Page Evolution
  51. 51. Facebook Fan Page Evolution
  52. 52. Broadcast Social Messaging
  53. 53. Current State `Confidential
  54. 54. Is this it?
  55. 55. 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
  56. 56. Clear Value Exchange
  57. 57. Be Relevant
  58. 58. Be Relevant
  59. 59. User signup Store data Confidential
  60. 60. 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
  61. 61. Social Flow `Confidential
  62. 62.
  63. 63. Customer service is the newmarketingWarren Buckley, Managing Director Customer Services, BT
  64. 64. The empowered consumer requiresa new means of engagementEd Van Siclen, SVP Business Development and Global Alliances, Lithium
  65. 65. The Age of the EmpoweredConsumerEd Van SiclenSVP, BD & Global Alliances@edvansiclen
  66. 66. Time Magazine’s Man of the Year
  67. 67. welcome to thesocialrevolution:around theglobe, peopleare seizingpower
  68. 68. civildisobedience:the social webhas organizedand amplifiedour global voice confidential
  69. 69. the power of theconnected world:collectively, we aredoing great &inspiring things atunprecedentedscale
  70. 70. applied gametheory:gamers modelprotein structurewhich had eludedscientists fordecades
  71. 71. the good, thebad and theugly:the dawn of themobile, socialand incrediblyempoweredconsumer: confidential
  72. 72. beware of thethunder lizard!businessmodels arebeing radicallytransformed confidential
  73. 73. 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
  74. 74. 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
  75. 75. 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
  76. 76. 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
  77. 77. we help our clients with a roadmap to get there REALIZE your brand nation PROVE the business value DIRECT the ENGAGE LISTEN conversation on existing networks to understandunderstand the tap into existing create an owned hub harness the power to transform the overallsocial customer social networks drive business customer impact experience
  78. 78. drive revenue
  79. 79. reduce service costs
  80. 80. accelerate innovation
  81. 81. lithium has a full enterprise-class suiteplatform manages the social customer experience and the needs of the busines touch points social apps reputation engine communitieengage s forums blogs ideas contests q&acustomers facebook mobile ratings surveys video tkb groups customer intelligence center management toolsmanage studiosocial social media behavioral api creatorprograms monitoring analytics moderation managerintegrate rest api developer nation
  82. 82. what makes lithium different? scientific gaming truemethodolog dynamics saas (reputation) (data) y (consumer web confidential dna/research)
  83. 83. superfans are the key to success superfans consist of <1% of community populations on average superfans generate 50% of all community content and 85% of all useful content confidential
  84. 84. confidential
  85. 85. imagine a set of experiences that are infusedwith the participation of your social customers confidential
  86. 86. imagine this across all digital touch pointscommunity .com social web mobile digital @store SOCIAL CUSTOMER EXPERIENCE
  87. 87. we are lithiumdelivering social customerexperiences for theworld’s most iconic brandsfounded in 2001bay area hq, new york, london, zurich, paris300 customers 30+M registered usersnamed market leader by forrester, gartner100% cloud platformtop tier VC funding, including Benchmark &NEA confidential confidential
  88. 88. Win the new Kindle withbuilt-in WiFi!!Visit 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. confidential
  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