Best Practices in Effective CRM: Digital Drives Results by L Watson 01 Feb-2012

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Presentation at the 5th Loyalty Summit in Mumbai 01-Feb-2012

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Best Practices in Effective CRM: Digital Drives Results by L Watson 01 Feb-2012

  1. 1. © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Progressive Profitable Printing Lisa Watson Chairman, Direct Marketing Association of Singapore Regional Segment Manager, HP IPG APJ 01 February 2012 The New Reality of Effective CRM: Digital Drives Results
  2. 2. Four Key Trends Loyalty Marketing Consumers are Empowered They're Demanding Relevance Marketers Demand Accountability Digital Drives Results 2 01-Feb-12
  3. 3. The Old Way of Marketing is Over… 3 01-Feb-12
  4. 4. Because the Customer’s World Has Changed More POWER More choice More information 4 01-Feb-12
  5. 5. This Means Effective Marketing Communications Have Evolved Buy Try Trust Talk Reply Buy Stay Chat Share Tell Buy Collaborate 5 01-Feb-12
  6. 6. We Must Remember Who’s In Charge… This is NOT the Customer 6 01-Feb-12
  7. 7. We Must Remember Who’s In Charge… This is YOU! 7 01-Feb-12
  8. 8. Word of Mouth is Critical! Buy Try Trust Talk Reply Buy Stay Chat Share Tell Buy Collaborate 8 01-Feb-12
  9. 9. And When It Comes to Sharing, Don’t Forget… Tells ONE Tells TEN 9 01-Feb-12
  10. 10. Four Key Trends Loyalty Marketing Consumers are Empowered They're Demanding Relevance Marketers Demand Accountability Digital Drives Results 10 01-Feb-12
  11. 11. Nothing is More Important in Marketing Today Than Relevance 11 01-Feb-12 Consumers REALLY hate spam!
  12. 12. Consumers are Telling Us What They Want – And What They Don’t! •91% unsubscribed from opt-in e-mails •77% more cautious providing their e-mail (versus last year) •81% ‘unliked’ or removed a brand’s posts •71% more selective ‘liking’ a company (versus last year) •41% have ‘unfollowed’ a company Source: ExtactTarget “The Social Break-Up” 12 01-Feb-12
  13. 13. They Hate Spam Even More Than Junk Mail! 13 01-Feb-12
  14. 14. They Hate Spam Even More Than Junk Mail! Relevance! 14 01-Feb-12
  15. 15. How Do We Deliver Relevance? 15 01-Feb-12
  16. 16. Data is Our Oxygen! Customized Personalized Targeted   16 01-Feb-12 Accountable
  17. 17. 17 01-Feb-12 Personalization vs Customization
  18. 18. Relevance = Personalization + Customization •Personalization means using an individual’s personal data directly in a communication – Name – Address – Gender – ID number, etc •Customization means using data about an individual to serve up a meaningful product/message/timing – Profile – Preferences – Past behaviors – Most recent purchases, etc… Obvious to each Individual Only Obvious to the Group 18 01-Feb-12
  19. 19. Personalization Example 19 01-Feb-12
  20. 20. Customization Means Varying Content/Images as Well 20 01-Feb-12 Change the image based on my profile
  21. 21. Personalization Drives Up Response Rates Typical response rates, static and personalized campaigns (Data source: Caslon analysis of PODi and DMA data) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Direct sale Lead generation Lead nurture Loyalty Fundraising Campaignobjective DMA (static) PODi (personalized)Copyright 2008 Caslon & Co. 21 01-Feb-12
  22. 22. Relevance is All About ‘Getting it Right’ The RIGHT Customer The RIGHT Product The RIGHT Channel The RIGHT Time The RIGHT Message Mass Communication VOLUME Personalization & Customization VALUE 22 01-Feb-12 Relevance
  23. 23. Relevance is All About ‘Getting it Right’ The RIGHT Customer The RIGHT Product The RIGHT Channel The RIGHT Time The RIGHT Message Mass Communication VOLUME Personalization & Customization VALUE Relevance in Timing! 23 01-Feb-12 Relevance
  24. 24. Time-Triggered Campaigns: Birthdays! 24 01-Feb-12
  25. 25. Eric vs Erin 25 01-Feb-12
  26. 26. Another timed event is the monthly statement… Which can also be used for promotional activities! 26 01-Feb-12
  27. 27. What is TransPromo? “Friendly” statement Improved service offerings Promotional offering Make it relevant Make it personal Prime real estate! Transaction + Promotion – Maximizing ROMI with high-quality statements 27 01-Feb-12
  28. 28. The Transactional Document – A Customer Touch-Point with Incredible Potential Transaction documents get opened…. … and are read! • Consumers spend an average of 2-3 minutes reviewing each statement they receive in the mail1 • 20% of consumers spend 5 minutes or more!1 • Customers spend almost twice as much time with paper bills than with electronic versions • This year the average consumer will see or hear one million marketing messages – almost 3,000 marketing messages per day, versus fewer than 12 transactional documents each month 1. Source: Trans Meets Promo… Is it more than market hype? Infotrends, August, 2008 2. Source: Pitney Bowes Group 1 research 28 01-Feb-12
  29. 29. The Transactional Document – A Customer Touch-Point with Incredible Potential Transaction documents get opened…. … and are read! • Consumers spend an average of 2-3 minutes reviewing each statement they receive in the mail1 • 20% of consumers spend 5 minutes or more!1 • Customers spend almost twice as much time with paper bills than with electronic versions • This year the average consumer will see or hear one million marketing messages – almost 3,000 marketing messages per day, versus fewer than 12 transactional documents each month 1. Source: Trans Meets Promo… Is it more than market hype? Infotrends, August, 2008 2. Source: Pitney Bowes Group 1 research 29 01-Feb-12 <5% throw out bills unopened
  30. 30. A Coalition Loyalty Program Example: Fly Buys New Zealand 30 01-Feb-12
  31. 31. Fly Buys Background • New Zealand’s leading loyalty marketing organisation • Operates the Fly Buys coalition loyalty marketing programme • Fly Buys has: – 53 retail partners, most of New Zealand’s largest retail chains – 71% of households in New Zealand actively engaged • Fly Buys points summary: – Unchanged since 1996 – Goes to 60% of total NZ households every quarter – Key DM channel 31 01-Feb-12
  32. 32. Fly Buys Points Summary in the Past: Complex • Output not reflective of complex analytics and underlying data work • Members missing personalized elements • Inflexible and cumbersome • Highly risky if changes required • Rewards Guide Panel • Nested Pages • Second Page Messages • Participant Inserts • Multiple sheets of paper to each member 32 01-Feb-12
  33. 33. 33 01-Feb-12 Fly buys statement today A3 folded to A4
  34. 34. 34 01-Feb-12 Fly buys statement today A3 folded to A4
  35. 35. 35 01-Feb-12 Fly buys statement today A3 folded to A4
  36. 36. 36 01-Feb-12
  37. 37. 37 01-Feb-12
  38. 38. Fly Buys Statement Today • The first mailer reactivated many dormant members, and the second reactivated even more • The circulation now is increasing! • Merchant partners are eagerly buying the white space 38 01-Feb-12
  39. 39. Four Key Trends Loyalty Marketing Consumers are Empowered They're Demanding Relevance Marketers Demand Accountability Digital Drives Results 39 01-Feb-12
  40. 40. Campaigns Can Only be Great if They Deliver Results! 40 01-Feb-12
  41. 41. Print Ad – Business 2.0 Postcard - Drive to web Coupon Key Codes Come in Many Forms $$$ 41 01-Feb-12
  42. 42. The Ultimate in Tracking – QR (Quick Response) Codes 42 01-Feb-12
  43. 43. • Created by Toyota subsidiary Denso Wave in 1994 • Used to Add Tracking to Many Things – Billboards – Print Ads – Product Packaging – Namecards What is a QR Code? 43 01-Feb-12
  44. 44. The Latest QR Codes 44 01-Feb-12
  45. 45. The Latest QR Codes 45 01-Feb-12
  46. 46. The Latest QR Codes 46 01-Feb-12
  47. 47. Four Key Trends Loyalty Marketing Consumers are Empowered They're Demanding Relevance Marketers Demand Accountability Digital Drives Results 47 01-Feb-12
  48. 48. What’s so Special About Digital? •It Delivers Relevance – Right customer – Right product/service – Right time – Right ‘price’ – Right channel – Right message – Right cost •It Makes Campaigns Trackable – Measures interactions – At the individual level 48 01-Feb-12
  49. 49. Digital Drives Results So The Really Great News is… AND not only online! 49 01-Feb-12 Relevant Accountable
  50. 50. A Surprising User of Direct Mail! 50 01-Feb-12
  51. 51. A Surprising User of Direct Mail! 51 01-Feb-12
  52. 52. A Surprising User of Direct Mail! 52 01-Feb-12
  53. 53. The New World of Loyalty Marketing Consumers today are demanding relevance Data is the key to delivering intelligent communications Variable data makes marketing relevant & trackable Digital Drives Results 53 01-Feb-12
  54. 54. Thank You! lisa1.watson@hp.com
  55. 55. Progressive Profitable Printing

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