This document discusses HP's new approach to customer segmentation using personas. It outlines struggles with traditional RFM segmentation and the need for a 360-degree view of each customer. The approach involved identifying customer core values, attitudinal measurements, and behavioral differences to develop three distinct customer personas. Testing showed lift in conversion and revenue from personalized campaigns tailored to each persona. Next steps include expanding analytics, building personalized experiences, and continuously iterating the persona definitions.

1. NEW WAVE OF SEGMENTATIONAnita John & Karen ZhangFebruary 22, 2011

2. Segmentation as we know itBased on what they’ve boughtBased on what they’ve doneBased on what they might do

3. Hpdirect Strategic visionBuild RelevanceChannel EffectivenessData-driven MarketingOne Customer VoiceMarket based on “who” and “what” they want

4. Maximize ROI by channel by customer

5. Persona based marketing built on rich & predictive customer insights

6. HP customer no matter the origin1234Our PillarsObjective: Create meaningful relationship with ALL existing HP customers across all touch points that maximizes repeat purchase and loyalty= Customers for Life!IgniteEngageRe-engage

7. Struggle #1: Doing the right thing1st Time VisitorWinback1st Time PurchaseLoyaltyRepeat PurchaseActiveInactiveNew CustomerTestProspectHighly ActiveRe-activation ProgramBest Customer ProgramsAcquisition ProgramsNew Customer ProgramsRepeat / Upsell / X-Sell PromosLearnRefineTell-a-friend/Referral Programs (Twitter, FB, Product Reviews, etc)Social MediaPartnershipsEmailOnline AdvertisingDirect Mail/ CatalogAffiliatesContextualPrintSEO/SEMMobileTest

8. Struggle #2: RFM/RFC not enough when…Mature MarketNew ProductsHomogenous customer viewPurchase behavior similar

9. Demographics are few and far between to allow for distinction

10. Value based (ie-best) works, but can fatigue and leave majority of file untouched

11. What audience do you tap into?

12. PCs – change in memory, style, hard drive

13. Printers –AIO, wireless Come on…there has to be a better way360 view of the customerDifferentiationActionable360

14. Understanding the needObjective: Resonate with customer core value at a deeper levelCustomer Intelligence Go- To-Market ExecutionBusiness NeedsEmail1. Customer Core Value APersona V.1: DemographicsDirect MailBPersona V.2: Product Feature2. Behavioral Differences WebCPersona V.3: Life Value 3. ActionableOutboundTake away: it’s a journey, not a task

15. PersonasIdentify customer core valuesAttitudinal MeasurementsCustomer SegmentsLife value / purpose: role of technology in a person’s lifeTechnology Readiness: role of technology in a person’s life8