l watson - digital drives results: business opportunities in intelligent print 7-12

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Digital Drives Results: Business Opportunities in Intelligent Print

26 July 2012 Lisa Watson Regional Segment Manager, HP IPG APJ Chairman, Direct Marketing Association of Singapore


2 01-Aug-12

What is Intelligent Print?

Empowering Data with Design/Empowering Design with Data

Bringing data & color together to deliver higher-value pages

• PSPs: Increase PSP profits by turning data & design into higher-margin sales

• Brand Owners: Increase brand owner profits by turning data & design into

more relevant, impactful & accountable communications that deliver higher ROI

• Consumers: Increase customer experience quality by using data & design to

generate more relevant communications that are proven to deliver customer delight!


Intelligent Print Journey (PSPs AND Brand Owners) N

um

ber

of

Cam

pai

gn

Seg

men

ts

Level of Intelligence /Data Required

True 1-to-1 (unlimited

segments of 1)

Smart Printing D->V

Dig

ita

l Pre

ss

Mass/ Broad Market

(1 big segment)

Not ‘Smart’ Analog/offset

Versions (multiple small

segments)

Smart Planning A->D

3 01-Aug-12


Today We'll Talk About....

4

Marketing Today

Power of Relevance

Customer Communications: A Useful Framework

Digital Drives Results


The Customer’s World Has Changed

More POWER More choice

More information

5 01-Aug-12


6

53+ million views

The Force_ Volkswagen Commercial.mp4


There’s a Lot of Buzz about Word of Mouth … However, It’s Not Easy!

7

Tells ONE Tells TEN


So Remember Who’s In Charge…

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This is NOT the Customer



9

Marketing Today

Power of Relevance




Nothing is More Important in Marketing Today Than Relevance

Consumers REALLY hate spam!

10


They Hate Spam Even More Than Junk Mail!

Relevance!

11


How Do We Deliver Relevance?

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Data is Our Oxygen!

13

Customized

Personalized

Targeted

Accountable


Targeted: Move from VOLUME to VALUE

The RIGHT Customer The RIGHT Product The RIGHT Channel

The RIGHT Time The RIGHT Message

Mass Communication

VOLUME

Personalization & Customization

VALUE

Relevance

14 01-Aug-12


Personalization vs 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

15 01-Aug-12


My Favorite Example of Personalization…

MY Name!

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Customization Means Varying Content/Images as Well

Change the image based on my profile

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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

Cam

paig

n o

bje

cti

ve

DMA (static) PODi (personalized)Copyright 2008 Caslon & Co.

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Move from VOLUME to VALUE



Mass Communication

VOLUME


VALUE

Relevance in Timing!

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Time-Triggered Campaigns

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01-Aug-12


Eric vs Erin

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01-Aug-12


Rafi Albo of SegMarketing

22

Rafi_120612.mov


Move from VOLUME to VALUE



Mass Communication

VOLUME


VALUE

Relevance in Timing!

23 01-Aug-12


Time-Triggered Campaigns

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01-Aug-12

Private & Confidential

PRIVATE AND CONFIDENTIAL

TO BE OPENED BY ADDRESSEE ONLY


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

<5% throw out bills unopened

25


Data is Our Oxygen!

26

Customized

Personalized

Targeted

Accountable


Print Ad – Business 2.0

Postcard - Drive to web

Coupon

The Basis of All Tracking is the Key Code Your key to tracking and measurement The common denominator of every direct marketing activity, in every medium, for every product

01-Aug-12 27


US DMA 2012 Response Rate Report

28

01-Aug-12


US DMA 2012 Response Rate Report

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01-Aug-12

“In another first for this edition, DMA compares direct mail

response rates over time. The time series reveals that direct

mail response rates have dropped nearly 25 percent over

the past nine years. Even so, mail campaigns draw a better

overall response than digital channels. For instance,

response rates for direct mail to an existing customer

average 3.40 percent, compared with 0.12 percent for

email, which is roughly a 30-fold difference. Costs are also

higher, which translates to roughly equivalent costs-per-

sale/lead for direct mail, email, and paid search.”


Using New Tools: pURLs

30 01-Aug-12


The Latest QR Codes

31 01-Aug-12

Color increases scan rates

25-30%

31


The Latest QR Codes

32

01-Aug-12



33

Marketing Today

Power of Relevance




Customer Communications Framework N

um

ber

of

Cam

pai

gn

Seg

men

ts

Level of Intelligence /Data Required

True 1-to-1 (unlimited

segments of 1)

Individual

Mass/ Broad Market

(1 big segment)

Calendar

Versions (multiple small

segments)

Customer

34 01-Aug-12

Birthday Back-to-School New Customer Welcome

Special Sales Notice New Baby

Transaction

New Store/Branch Opening

Monthly Specials

Loyalty Program Product Launch


Case Studies

35


Colruyt Group

36 01-Aug-12

http://www.colruyt.be/colruyt/static/1024/nl.shtml

http://www.colruyt.be/colruyt/static/1024/nl.shtml


Colruyt Stores – Belgium

• Guaranteed lowest price in market

• Plus they have specials every 2 weeks FOR MEMBERS ONLY

• 2.1 million members receive mailings twice a month

• No advertising

37


Colruyt Stores - Belgium

32 pages 4 pages Great Prices Selected for You

38 01-Aug-12


Results – Part 1

On top of their lowest price guarantee for each product at every moment, they provide MORE:

– Efficiency: • Concentrating useful promotions in smaller document less time &

effort to plan • Make sure customers obtain maximal benefit especially over

longer periods

– Sustainability: • Greener promotions: 1.600.000 * 16 pages * 26 leaflets =

665.600.000 pages saved – Servicability:

• Helping customers choose & gain time by limiting the number of coupons

= Basics of Colruyt communication

39 01-Aug-12


Results – Part 2

More HH use coupons

More coupons used per HH

More € spent per HH

40 01-Aug-12


Maximo’s UK

41

41 01-Aug-12


Maximo’s UK

42

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Maximo’s UK

43



44

Marketing Today

Power of Relevance




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

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So the Great News is…

AND not only online!

46 01-Aug-12


A Surprising User of Direct Mail!

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01-Aug-12


Summary

Intelligent Print is data & design together delivering

high-value pages

Relevance & Accountability are essential for campaign

success today

Data is oxygen – the key to delivering intelligent

communications

Digital Drives Results!

48 01-Aug-12


Thank you


Links of Interest • Volkswagen TV Commercials on YouTube channel

− 2011 http://youtu.be/R55e-uHQna0

− 2012 Teaser http://youtu.be/6ntDYjS0Y3w

− 2012 http://youtu.be/0-9EYFJ4Clo

• Rafi Albo video on YouTube http://youtu.be/sS7VmrdyRIU

• QR Codes − InterlinkONE has done some cool stuff with QR codes and has set up a web site set

up to talk about it (http://qreateandtrack.com/) – there’s even an online toolkit

(http://theqrtoolkit.com/)

− One of our customers, The ACE Group, has developed a brochure with great

examples of color QR codes as well as info about effectiveness:

http://www.acegroupnyc.com/qr_brochure/

− Mashable is a great blog about all sorts of digital marketing & one of their posts was

dedicated to QR Codes http://mashable.com/2011/07/23/creative-qr-codes/

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01-Aug-12

http://youtu.be/R55e-uHQna0



http://youtu.be/6ntDYjS0Y3w

http://youtu.be/0-9EYFJ4Clo



http://youtu.be/sS7VmrdyRIU

http://qreateandtrack.com/

http://theqrtoolkit.com/ilinkONE/LPR.asp?L=135

http://www.acegroupnyc.com/qr_brochure/

http://mashable.com/2011/07/23/creative-qr-codes/



