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The New Direct Marketing in a Multi-Channel World

Insurance Direct Marketing Forum

Wayne Rosenberger – Harte-Hanks

September 15, 2008

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The Old Paradigm vs. The New

Old

Media optimization

Branded direct Creative

Off-line database

Measurement by media

Post mortem analytics

Offers driven by models

New

Media integration

Brand driven by the Web

Real time data

Aggregated measurement

Real time analytics

Offers driven by interaction

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Multichannel Marketing Vision

Today

CampaignPerformance

CampaignPerformance

Campaign-CentricCampaign-Centric

AudienceAudience ChannelChannel

Overall AudienceOverall

Audience

• Generic Content

• Drive RX

• Generic Content

• Drive RX

Goal

CampaignPerformance

CampaignPerformance

BusinessImpact

BusinessImpact

Customer-CentricCustomer-Centric

AudienceAudience MultichannelMultichannel

Persona 1Persona 1

Persona 2Persona 2

Persona 3Persona 3

• Cross-Channel Optimization

• Relevant Product

• Meet Indv. Needs & Interests

• Right Time & Channel

• Cross-Channel Optimization

• Relevant Product

• Meet Indv. Needs & Interests

• Right Time & Channel

Means of Getting There

Data IntegrationData IntegrationBehaviorsBehaviors DescriptorsDescriptors

Ongoing Program Optimization With

Analytics

Ongoing Program Optimization With

Analytics

User Research & SegmentationUser Research & Segmentation

Strategy ShiftStrategy Shift

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The New Components

• Search

• Rich Media

• Behavioral Advertising

• Contextual Advertising

• Blogs

• RSS

• Podcasting

• Videocasting

• Mobile Messaging

• Widgets

• Web 2.0 & Social Networking

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Web As A Selling ToolPreference-Driven Message

Subscription Form

PreferenceProfiles

Preference Center

Dynamic Content Messaging Engine

New CustomerExisting Customer

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Trigger personalized

abandoned cartmessage

Web As A Selling ToolBehavior-Driven Message Model

WebAnalytics

Your Website

BehaviorProfiles

Lifecycle Scoring

abandonedcart

Transactional Messaging Engine

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Dialog MessagingCommunicator

• Combine customer preferences, behaviors and marketing rules to control message content and timing

• Identify tactics based on customer lifecycle stages

• Link messages to online and offline behavior using business rules

• Trigger sequences to connect lifecycle stages

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Horizon (BCBS New Jersey)

Paid Search Case Study

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Business Situation

• Horizon BlueCross Blue Shield is the leading insurer in the state of New Jersey in the Individual Under 65 market

• Existing programs included direct mail and print as lead generation mechanisms

• Captive inside and outside sales groups closed all sales

• A marketing database supports all marketing activity

• Results from existing lead generation programs had flattened out

• Need for additional channels to generate leads and sales

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What’s Really New About This?

• Instant engagement with customer

• At the moment and the place they’ve decided they need to buy

• Perfect mix of location and timing

– Location is right in from of them

– Timing is all the time, any time, every time, whenever they’re ready

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Search Engine MarketingProgram Description

• Paid search through Google and Yahoo

• Data capture landing pages

– Distraction-free, competition-free

– Low bandwidth demand

• Instant lead transfer to inside and outside sales

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Search Engine MarketingMethodology

• Buy keywords that ensure top 3 positioning

• Write compelling ads, and test them

• Track visitors through to conversion

• Use landing pages that will help complete the sale

• Optimize based on conversion results

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Many Channels – Same Result

Click

Sales Fulfillment

Offline Response

= offline process

= online process

Search

Landing Page

Data Capture

Direct Mail

Enrollment

Go to URL

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The Search Result

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Additional ChannelDirect Mail

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Landing and Data Capture Page

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E-mail / Blackberry Instant Message to Sales

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Results – A Multichannel Success

• The search engine project exceeded projections

• Equivalent of mailing 146,400 pieces

• CPL is equivalent to mail

– CPL is <$20.00

• Conversion rate to sales is exceeds all other media

• No degradation of direct mail results

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Where Else This Might Lead

• Greater integration of online and offline media

– Traditional media used to push searches and landing page visits

• Online enrollment application

– Self-directed

– Assisted by inside sales

• New markets

– Seniors

– Adult children of seniors

• Member services

• Retention

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Customer Centricity – Automotive Industry

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Our Objectives

Provide the dealer network with a best-in-class, national direct marketing program that

builds dealer-customer relationships

Drive customer pay revenue

More multi-channel integration

Increase speed to market

Generate greater return on investment

Optimize dealer enrollment and participation

Continually reinvent program offerings

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Marketing Communications

• Provides Dealers with greater access to create “intelligent” multi-channel communications, reduce dealer cost, and increase overall response

Response

ChannelsSegment ChannelsPrograms

Direct Mail

Email

Call Center (Outbound)

Automated Voice Messaging

Text/Mobile

Dealer

Call Center

Website

PersonalizedWebsites

New

Best

Opportunity

At Risk

Winback

Maintain

Timed-Based Communications

Triggered Communications

Event Communications

Automated

Behavior-Based

Condition-Based

Follow-up

Sales

Accessories

Events

Newsletters

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Communication Plan – Built in Solution

• Automated/Loyalty Campaigns

– Service Reminder – vehicle based

– Relationship Marketing – customer based

• On Demand Communications

– Express Campaigns

– Custom Campaigns

• Triggered Communications

– Immediate, triggered responses based on response/non-response to above campaigns

– Confirmations

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Personalization, Relevancy, Response

• Data-driven communications based on customer insights, activities and placement in the customer lifestage

Personalization Engine

Segmentation Demographics Vehicle

New Owner Gender Make

Profile based (single, Young family, etc.)

Age Model

Best Customer Income Year

Defection Risk Presence of Children  

     

Vehicle Lifestage Regional Offer

New Snow, Heat, Seasonal No Offer

Mid-stage Behavior Driven Reward

In-market Service Elsewhere Incentive

    Referral Program

Vehicle Sales Channel  

Own Email  

Lease Postal Mail  

Used Phone  

   

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Personalization, Relevancy, Response

• Data-driven trigger based programs that integrate within a lifecycle communication framework

Vehicle Driven Behavior Driven Handraiser Customer Relationship

•Mileage•Timing

•Change of Service Venue•Service Experience•Survey Response•Observed- Data Driven

•Offline•Online•In Person

•Anniversary•Safe Driving Tips for Teens•Child Safety•Birthday Cards

 

   

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New Customer Lifestage

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Mid-Cycle Customer Lifestage

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Back In-Market Customer Lifestage

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• www.harte-hanks.com/InsuranceDMForum08

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