Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Contextual marketing, Location Intelligence

4,248 views

Published on

As direct marketers, we’ve always taken pride in the power of “location.”  Location data for a prospect or customer—a street address in the early days— told us where to mail communications, what people are like demographically and psychographically (cluster data), and even directed what kinds of products/pricing/promotions to include in the marketing mix.  All based on a physical location, a home or office address.
 
2014 technology (Geographic Information Systems, or “GIS”) and a mobile consumer have brought to data-driven marketers a whole different kind of location intelligence, using spatial analytics and mapping to deliver revenue-driving real-time messages contextual to the specific geographic location of a smart device.  We will review applications of location data from leading marketers (clients of Pitney Bowes using our Location Intelligence data offerings, included) in the B2C mobile and social media space.  A wide array of location data applications to improve classic direct marketing decision making, outside of mobile marketing applications, will be included as well.

http://www.pitneybowes.com

Published in: Business

Contextual marketing, Location Intelligence

  1. 1. IGNITING CUSTOMER ENGAGEMENT CONTEXTUAL MARKETING 2014: The Power of Location Intelligence Data Bill Borrelle SVP, Brand Strategy and Integrated Marketing Communications Pitney Bowes Inc. October 27, 2014
  2. 2. ROAD MAP FOR “LOCATION INTELLIGENCE 101” ! • The Evolution of “Contextual Marketing” ! • The Emergence of Location Data ! • 3 Primary Applications of Location Data in Marketing ! • Hyper-Targeted Messages and Offers to Consumers 2
  3. 3. THE AGE OF THE LEFT BRAIN, IN MARKETING
  4. 4. MARKETING REQUIRES ACTIVE AND PRODUCTIVE RIGHT BRAINS AND LEFT BRAINS 4
  5. 5. MARKETING REQUIRES ACTIVE AND PRODUCTIVE RIGHT BRAINS AND LEFT BRAINS Right For our creativity, imagination and intuition 4
  6. 6. MARKETING REQUIRES ACTIVE AND PRODUCTIVE RIGHT BRAINS AND LEFT BRAINS Right For our creativity, imagination and intuition Using our gut to make decisions 4
  7. 7. MARKETING REQUIRES ACTIVE AND PRODUCTIVE RIGHT BRAINS AND LEFT BRAINS Right For our creativity, imagination and intuition Using our gut to make decisions Left For logic, analysis and computation 4
  8. 8. MARKETING REQUIRES ACTIVE AND PRODUCTIVE RIGHT BRAINS AND LEFT BRAINS Right For our creativity, imagination and intuition Using our gut to make decisions Left For logic, analysis and computation Using data to make decisions 4
  9. 9. 5
  10. 10. THE EVOLUTION OF “CONTEXTUAL MARKETING”
  11. 11. 7
  12. 12. Direct Marketing is inherently contextual – there’s always some context to your message. 7
  13. 13. Direct Marketing is inherently contextual – there’s always some context to your message. If not, there should be. 7
  14. 14. HARVARD BUSINESS REVIEW, 2000 8
  15. 15. “ ” 9
  16. 16. “Companies that practice contextual marketing should be guided by the following imperative: ” 9
  17. 17. “Companies that practice contextual marketing should be guided by the following imperative: customer at the point of need.” 9 Don’t try to bring the customer to a website, bring the message directly to the
  18. 18. 2014 DEFINITION Contextual Marketing is a form of targeted messaging where the content of the message is directly relevant to… 10
  19. 19. 2014 DEFINITION Contextual Marketing is a form of targeted messaging where the content of the message is directly relevant to… the content of the web page the user is viewing. 10
  20. 20. CONTEXTUAL PRINT ADVERTISING 11 ILLUSTRATIVE EXAMPLE
  21. 21. CONTEXTUAL PRINT ADVERTISING … directly relevant to the magazine title 11 ILLUSTRATIVE EXAMPLE
  22. 22. CONTEXTUAL RELATIONSHIP MARKETING 12 ILLUSTRATIVE EXAMPLE
  23. 23. CONTEXTUAL RELATIONSHIP MARKETING … directly relevant to customer’s individual relationship 12 ILLUSTRATIVE EXAMPLE
  24. 24. CONTEXTUAL ONLINE ADVERTISING 13 ILLUSTRATIVE EXAMPLE
  25. 25. CONTEXTUAL ONLINE ADVERTISING … directly relevant to online content 13 ILLUSTRATIVE EXAMPLE
  26. 26. CONTEXTUAL SEM ADVERTISING 14 ILLUSTRATIVE EXAMPLE
  27. 27. CONTEXTUAL SEM ADVERTISING … directly relevant to search terms 14 ILLUSTRATIVE EXAMPLE
  28. 28. BEHAVIORALLY CONTEXTUAL ONLINE ADVERTISING 9:00am 9:15am 15 ILLUSTRATIVE EXAMPLE
  29. 29. BEHAVIORALLY CONTEXTUAL ONLINE ADVERTISING 9:00am 9:15am … directly relevant to online behavior 15 ILLUSTRATIVE EXAMPLE
  30. 30. CONTEXTUAL SOCIAL MEDIA ADVERTISING 16 ILLUSTRATIVE EXAMPLE
  31. 31. CONTEXTUAL SOCIAL MEDIA ADVERTISING … directly relevant to social conversations 16 ILLUSTRATIVE EXAMPLE
  32. 32. CONTEXTUAL MESSAGING TO PROGRAMMING 17 ILLUSTRATIVE EXAMPLE
  33. 33. CONTEXTUAL MESSAGING TO PROGRAMMING ... directly relevant to programming 17 ILLUSTRATIVE EXAMPLE
  34. 34. What if the marketing message is contextual to your customer’s location? 18
  35. 35. 19
  36. 36. CITY/ZIP Local Offers 19
  37. 37. CITY/ZIP Local Offers MALL Proximity offers 19
  38. 38. CITY/ZIP Local Offers MALL Proximity offers NEIGHBORHOODS Proximity offers 19
  39. 39. CITY/ZIP Local Offers MALL Proximity offers NEIGHBORHOODS Proximity offers STORE In store promotions /auto checkin 19
  40. 40. LOCATION-BASED MESSAGING 20 ILLUSTRATIVE EXAMPLE
  41. 41. LOCATION-BASED MESSAGING 20 ILLUSTRATIVE EXAMPLE
  42. 42. LOCATION-BASED MESSAGING ... directly relevant to your customer’s location 20 ILLUSTRATIVE EXAMPLE
  43. 43. WHAT DOES LOCATION-BASED MARKETING CREATE? 21
  44. 44. WHAT DOES LOCATION-BASED MARKETING CREATE? RELEVANCE 21
  45. 45. WHAT DOES LOCATION-BASED MARKETING CREATE? RESPONSE 21
  46. 46. WHAT DOES LOCATION-BASED MARKETING CREATE? REVENUE 21
  47. 47. WHAT DOES LOCATION-BASED MARKETING CREATE? RESULTS 21
  48. 48. LOCATION, LOCATION, LOCATION: THE EMERGENCE OF LOCATION DATA
  49. 49. LOCATION, LOCATION, LOCATION Direct Marketers understand the value of location. 23
  50. 50. HOME LOCATION = VALUABLE DEMOGRAPHICS 24
  51. 51. HOME LOCATION = IMPACTFUL DELIVERY CHANNEL 25
  52. 52. LOCATION 2014 26
  53. 53. LOCATION 2014 Why has location-based marketing emerged now? 26
  54. 54. LOCATION 2014 Why has location-based marketing emerged now? What has changed? 26
  55. 55. 1. SMARTPHONE PENETRATION 27
  56. 56. CELL PHONE TRIANGULATION / GPS 28
  57. 57. CELL PHONE TRIANGULATION / GPS 28
  58. 58. 2. AVAILABILITY OF LAYERS OF LOCATION DATA Coordinate -105.248599, 40.054337 Points of Interest In-Building Maps Building Footprints Parcel Boundaries World Boundaries Base Map Thematic Layers Data within the Firewall 29
  59. 59. 30
  60. 60. There’s location. 30
  61. 61. There’s location. And then there’s location intelligence. 30
  62. 62. 3. CONSUMERS OPTING IN TO SHARE LOCATION 31 ILLUSTRATIVE EXAMPLE
  63. 63. 3. CONSUMERS OPTING IN TO SHARE LOCATION 74% of consumers with smartphones use location-based services Source: Pew Research Internet Project, 9/2013 31 ILLUSTRATIVE EXAMPLE
  64. 64. APP PROLIFERATION 32 ILLUSTRATIVE EXAMPLE
  65. 65. TRANSPARENCY AND THE POWER TO CHOOSE 33
  66. 66. TRANSPARENCY AND THE POWER TO CHOOSE When we give our customers, with full transparency, the option to choose to share their location information in exchange for better service or a price advantage, the majority will say, ‘YES.’ 33
  67. 67. WHERE MOBILE USERS ARE WHEN THEY GO ONLINE UNSHIFTED SHIFTED IN STORES (WHILE SHOPPING) 41% 78% RESTAURANT/COFFEE SHOP 37% 73% WHILE TRAVELING FOR BUSINESS OR LEISURE (AIRPORT, HOTEL) 37% 72% Source: Forrester Research: “The Mobile Mindshift Index” Where do you use your phone to access the internet? 34
  68. 68. 3 PRIMARY APPLICATIONS OF LOCATION DATA IN MARKETING
  69. 69. 3 PRIMARY APPLICATIONS OF LOCATION DATA IN MARKETING 1. Using location to present hyper-targeted messages and offers to consumers 2. Building psychographic and demographic profiles 3. Aggregate and store population location data for market research and future campaigns 36
  70. 70. 1. USING LOCATION TO PRESENT HYPER-TARGETED MESSAGES AND OFFERS TO CONSUMERS 37 ILLUSTRATIVE EXAMPLE
  71. 71. HOW IT WORKS: PUSH AND PULL PUSH PULL • O/B marketing • Cross a boundary • Customer inquiry • Location data provides solution 38
  72. 72. 2. BUILDING PSYCHOGRAPHIC AND DEMOGRAPHIC PROFILES • Location sharing presents unique insight into customers • Location data can reveal interesting habits and patterns in consumer behavior • We can create a master database of consumer behavior, all unlocked by a consumer’s location-based activities 39
  73. 73. 32 yr old, middle class single male. Rents a two bedroom townhome in a urban professional neighborhood in Boulder, CO. Uses public transportation and spends lunch hours at the gym. Frequents nightlife hotspots on Wednesdays. Enjoys ethnic foods. Visits mountains on weekends. Air travel 20% of the time. Outdoor, active lifestyle pursuits & interests. 40
  74. 74. THE RESULT: VALUABLE BEHAVIOR DATA IN REAL TIME 41 ILLUSTRATIVE EXAMPLE
  75. 75. 42 ILLUSTRATIVE EXAMPLE
  76. 76. 43 ILLUSTRATIVE EXAMPLE
  77. 77. 44 ILLUSTRATIVE EXAMPLE
  78. 78. 45 ILLUSTRATIVE EXAMPLE
  79. 79. 46 ILLUSTRATIVE EXAMPLE
  80. 80. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS 47
  81. 81. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS 47
  82. 82. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS 47
  83. 83. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS 48
  84. 84. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS • Profile mass audience 48
  85. 85. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS • Profile mass audience • Build regional profiles 48
  86. 86. 3. AGGREGATE AND STORE POPULATION LOCATION DATA FOR MARKET RESEARCH AND FUTURE CAMPAIGNS • Profile mass audience • Build regional profiles • % of customers who _______ 48
  87. 87. WOW! 49
  88. 88. HOW? 49
  89. 89. LOCATION INTELLIGENCE 101
  90. 90. GEOGRAPHIC INFORMATION SYSTEM (GIS) A computerized data management system used to capture, store, and manage, retrieve, analyze, and display spatial information. 51
  91. 91. GEOGRAPHIC INFORMATION SYSTEM (GIS) 52
  92. 92. GEOGRAPHIC INFORMATION SYSTEM (GIS) 53
  93. 93. GEOGRAPHIC INFORMATION SYSTEM (GIS) 54
  94. 94. GEOGRAPHIC INFORMATION SYSTEM (GIS) 55
  95. 95. GEOCODING The mapping of a named location (such as an address) to specific latitude and longitude coordinates. 56
  96. 96. POI GEOCODING PRECISION – USING MULTIPLE DATA SOURCES TO IMPROVE THE QUALITY Low precision Menards store location Precise Menard store location by combining two extra geocoding data sources and social data verification 57
  97. 97. THE RISK OF GETTING IT WRONG 58
  98. 98. REVERSE GEOCODING Pinpointing a location from a signal from a GPS-enabled device (smartphone). 59
  99. 99. PINPOINT A USER AT STORE OR MALL LEVEL 6 lane highway 6 lane highway 60 Traditional: You are within the target radius of Starbucks Improved Solution: You are: In Macy’s parking lot You are now an attractive target for Starbucks
  100. 100. GEOFENCING A location-based mobile service that lets marketers send messages to smartphone users when they enter a defined geographic area, such as a shopping mall or a store. 61
  101. 101. CREATE GEO-FENCE DETECT USER CROSSING THE FENCE GEOFENCING SERVICE 62
  102. 102. CREATE GEO-FENCE DETECT USER CROSSING THE FENCE GEOFENCING SERVICE 62
  103. 103. INDOOR AND VENUE GEOFENCING 63 ILLUSTRATIVE EXAMPLE
  104. 104. BOUNDARY-BASED GEOFENCE CAN PROVIDE ADVANCED GEOFENCE SOLUTIONS 64
  105. 105. BOUNDARY-BASED GEOFENCE CAN PROVIDE ADVANCED GEOFENCE SOLUTIONS RADIUS-BASED MARKET SOLUTIONS Has problems of: • “cross river” • “false alarm” 64
  106. 106. BOUNDARY-BASED GEOFENCE CAN PROVIDE ADVANCED GEOFENCE SOLUTIONS BOUNDARY-BASED GEOFENCE • Store boundary • Mall boundary • Neighborhood boundary RADIUS-BASED MARKET SOLUTIONS Has problems of: • “cross river” • “false alarm” 64
  107. 107. BOUNDARY-BASED GEOFENCE CAN PROVIDE ADVANCED GEOFENCE SOLUTIONS TARGET AREA-BASED GEOFENCE Considering factors of: • Road network & traffic • Retail trade area modeling • Consumer demo. & social data BOUNDARY-BASED GEOFENCE • Store boundary • Mall boundary • Neighborhood boundary RADIUS-BASED MARKET SOLUTIONS Has problems of: • “cross river” • “false alarm” 64
  108. 108. “RADIUS” ≠ OPTIMAL CONSUMER EXPERIENCE A radius doesn’t account for barriers and is too general to provide specific value. It can provide for a frustrating experience. 65
  109. 109. LOCATION RELEVANT TRADE AREA Trade Area Plotting – an irregular shape around a location, that provides areas of interest to a particular person or situation TRADITIONAL: You are near: Gap, Macy’s, Nordstrom…. IMPROVED SOLUTION: You are: in Macy’s parking lot and near: Nordstrom,Gap 66
  110. 110. LOCATION-BASED SERVICES (LBS) Location-Based Services are services offered through a mobile phone and take into account the device’s geographical location. 67
  111. 111. A NOTE ON “DISTANCE” There are different ways of figuring out the distance between two points, with the most basic being the “straight line” (also known as Euclidean) distance. However, there are potentially many different types of distance between two points. 68
  112. 112. “STRAIGHT LINE” VS. “REAL LIFE” Location on a map Two locations and distance as the crow flies Proper distance with directions 69
  113. 113. HYPER-TARGETED MESSAGES AND OFFERS TO CONSUMERS
  114. 114. WHAT IT’S NOT 71
  115. 115. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  116. 116. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  117. 117. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  118. 118. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  119. 119. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  120. 120. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  121. 121. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  122. 122. HOW IT WORKS 72 ILLUSTRATIVE EXAMPLE
  123. 123. WHO’S DOING IT? 73
  124. 124. FINANCIAL SERVICES: EXAMPLES 74 ILLUSTRATIVE EXAMPLE
  125. 125. FINANCIAL SERVICES: EXAMPLES • If a consumer walks into a Century 21 office, the app detects the store category “realtor” and app will display home loans mortgage information 74 ILLUSTRATIVE EXAMPLE
  126. 126. FINANCIAL SERVICES: EXAMPLES • If a consumer walks into a Century 21 office, the app detects the store category “realtor” and app will display home loans mortgage information • If a consumer walks into a Mall, the app detects that and displays a list of stores that will give a discount if the consumer using the bank’s debit card there 74 ILLUSTRATIVE EXAMPLE
  127. 127. FINANCIAL SERVICES: EXAMPLES • If a consumer walks into a Century 21 office, the app detects the store category “realtor” and app will display home loans mortgage information • If a consumer walks into a Mall, the app detects that and displays a list of stores that will give a discount if the consumer using the bank’s debit card there • If a consumer parks his/her car in the parking lot of CVS, the app detects that and display items in his/her shopping lists that he/she can buy at a discount with the bank’s credit card 74 ILLUSTRATIVE EXAMPLE
  128. 128. GETTING STARTED 75
  129. 129. GETTING STARTED Ask yourself, for your business situation: 75
  130. 130. GETTING STARTED Ask yourself, for your business situation: Does location matter? 75
  131. 131. GETTING STARTED Ask yourself, for your business situation: Does location matter? How can you add value to your customer relationship with location data? 75
  132. 132. LESTER’S VIEW ON LOCATION INTELLIGENCE
  133. 133. 19 DIRECT MARKETING PRINCIPLES 77
  134. 134. HIGHLY RELEVANT TO LOCATION-BASED MARKETING 78
  135. 135. HIGHLY RELEVANT TO LOCATION-BASED MARKETING 1. Communicate with Each Customer or Prospect as an Audience of One 78
  136. 136. HIGHLY RELEVANT TO LOCATION-BASED MARKETING 1. Communicate with Each Customer or Prospect as an Audience of One 2. Be Accessible to Your Customers, Through All Channels 78
  137. 137. HIGHLY RELEVANT TO LOCATION-BASED MARKETING 1. Communicate with Each Customer or Prospect as an Audience of One 2. Be Accessible to Your Customers, Through All Channels 3. You are What You Know – Collect Data that can Become Customer Knowledge 78
  138. 138. KEY TAKEAWAYS
  139. 139. KEY TAKEAWAYS 1. There’s location, and there’s location intelligence. ! 2. When we give our customers, with full transparency, the option to choose to share their location information in exchange for better service or a price advantage, the majority will say, ‘YES.’ ! 3. Location data is awesome 80
  140. 140. “DATA IS AWESOME”
  141. 141. THANK YOU
  142. 142. CONTACT INFORMATION BILL BORRELLE SVP, Brand Strategy and Integrated Marketing Communications Pitney Bowes Inc. ! EMAIL bill.borrelle@pb.com ! TWITTER @BillBorrelle 83

×