Are you thinking what your customers are thinking?

Ruaraidh ThomasDirector

Lateral Group

www.lateralgroup.co.uk

Month Day, 2008Page 1 Operations 

Review

Today’s AgendaToday s Agenda•We will cover:

•Multi‐channel Relevance– The marketer’s challenge– Multi channel relevancy & ImpactMulti channel relevancy & Impact

•The Use of Data To Support Relevance– How to manage data across channels– Getting the most from your customers data

•Case Studies include:– HSBC:Multi‐channel Opt‐in– HSBC: Multi‐channel Opt‐in– Yell: Multi‐channel Cross‐sell– Multi Channel Case: Superdrug “Sexy Summer Figures”

Multi‐Channel RelevanceMulti Channel Relevance

Moving Beyond Print

The Marketers ChallengeThe Marketers Challenge

•- The increasing fragmentation of media has erodedThe increasing fragmentation of media has eroded the impact of traditional mass media marketing•- Consumers are becoming increasingly protectionist g g y pin their approach to direct marketing•- Organisations are responding to the economic g p gclimate by reducing marketing spend and increasing required returns

How Consumers Decide To BuyHow Consumers Decide To Buy

•‐ Consumer behaviour • EducationProblem RecognitionProblem 

RecognitionConsumer behaviour theory outlines a discrete buying process

RecognitionRecognition

• Information DeliveryInformation Search

Information Search

•‐Marketers can adopt strategies to guide the 

SearchSearch

• Criteria SettingAlternative EvaluationAlternative Evaluation

consumer at each stage• FacilitationPurchase 

DecisionPurchase Decision

• AdvocacyPost Purchase Behaviour

Post Purchase Behaviour

Different Views Of Decision MakingAIDA Model Hierarchy of 

Effects ModelInnovation 

Adoption ModelCommunications 

Model

C i i A i A A E

Different Views Of Decision Making

Cognitive Stage

(Learn)

Attention Awareness

Knowledge

Awareness Exposure

Reception

Cognitive Response

Affective Stage

Interest Liking Interest

Attitude(Feel) Desire Preference

Conviction

Evaluation

Intention

Behaviour stage

(Do)

Action

Purchase

Trial

Adoption

Behaviour

The Communications MixAdvertising Sales 

PromotionPublic 

RelationsPersonal Selling

Direct Marketing

The Communications Mix

Promotion Relations Selling Marketing• Print & Broadcast

• Leaflets & inserts

• Non‐personalised 

• Coupons

• Contests

• Games

• Sweepstakes &

• Press kits

• Speeches

• Reviews

• Seminars

• Sales Presentations

• Referrals

• Word of mouth

• Mailings

• Telemarketing

• eCommerce

• EmailWebsite

• Packaging

• Directories

• Posters & Leaflets

Sweepstakes & Lotteries

• Premiums & gifts

• Sampling

• Tradeshows 

R b t

Seminars

• Sponsorships

• Publications

• Community Relations

L bb i

• SamplesEmail

• SMS

• DRTV

• Personalised Website

T t d i tLeaflets

• Billboards

• Point of Purchase

• Signage

• Product Pl

• Rebates

• Financing

• Loyalty offers

• Trade‐ins

• Lobbying

• Company publications

• Targeted inserts

Placement

Managing Channel Strengthsss Sales Promotion

Managing Channel Strengthseffectiven

es

Personal SellingDirect Marketing

otional cost 

Advertising & Publicity

Awareness Comprehension Conviction Ordering Reordering

Prom

o

Awareness Comprehension Conviction Ordering Reordering

Stages of buyer readiness

Adapted from: A Framework For Marketing 

Management, Philip Kotler, Prentice Hall, 2003.

Multi-Channel MarketingMulti Channel Marketing

•Multi-channel marketing combines elements fromMulti channel marketing combines elements from the communications mix and channels to achieve maximum impact by:

•- Consistently conveying the same overall messagey y g g•- Supporting the brand and channel proposition•- Emphasising the strengths of each channelp g g•- Taking the customer on a journey

Multi-Channel Permission Marketing

•Permission marketing Create AwarenessCreate Awarenessgseeks to engage with the consumer on their terms Build DesireBuild Desire

by being Anticipated, Relevant and Personal. Gain PermissionGain Permission

Essentially: Build a RelationshipBuild a Relationship

– Delivering the right message

Capture the ValueCapture the Valueg

– To the right people– In the right way

Challenges for Multi-Channel Marketing

•- Recognising the same individual across channelsRecognising the same individual across channels•- Treating each individual as an individual•- Supporting multiple campaigns cost effectivelySupporting multiple campaigns, cost effectively•- Understanding which activities and channels provide the most valueprovide the most value•- Creating individually tailored and effective marketing programmesg p g

The Multi‐Channel Ideal

•‐ People! … Customers and/orPeople!  … Customers and/or Prospects

•‐ Their contact detailsh f•‐ Their preferences

•‐ Their purchases•‐ Communication historyCommunication history

•‐ Our expectations of them

Moving toward the idealMoving toward the ideal….

Case: HSBC Opt‐in CampaignCase: HSBC Opt in Campaign

•Objectives: •Channelsj

•Collect email opt‐in from existing customers

•Direct Mail

•SMS

•Target Audience•Existing HSBC customers

•Email

•Existing HSBC customers without email optin BUT with known email address

Campaign StructureCampaign Structure

•Audience split into two segments for based•Audience split into two segments for based on customer profile & permissions

•Cell 1: Email to WebOpt-in Email

Web

Page

Web Confirmation

Page

•Cell 2: Direct Mail to SMS

Opt-in Code via SMS

Opt-in Postcard

Confirmation via SMS

Direct Mail & SMSDirect Mail & SMS

•One-piece mail pack containing a secureOne piece mail pack containing a secure authentication code•Recipients texted code to 6HSBC to opt in to•Recipients texted code to 6HSBC to opt-in to email communications

Email OnlyEmail Only

•Email sent as a service message to customers

•Product based executions hi hli ht d ifi b fit thighlighted specific benefits to opting‐in to email

•Direct integration allowed gcustomers to opt‐in with a single click

Optimising Channel UsageOptimising Channel Usage

•With multi-channel data and permissionsWith multi channel data and permissions available marketers have the ability to create campaigns that:campaigns that:

– Deliver a single message through the most appropriate channel New Customer Cross Sell3

Welcome/Activation2Acquisition1

New Customer Sales

ActivitiesObjective

New Customer Cross Sell3Welcome/Activation2Acquisition1

New Customer Sales

ActivitiesObjective

appropriate channel– Engage the customer through multiple channels

Increase Frequency9Change Channel8Change Key Behaviour7Up Sell by Product6Cross Sell by Product5

Sales

New Customer Up Sell4

Increase Frequency9Change Channel8Change Key Behaviour7Up Sell by Product6Cross Sell by Product5

Sales

New Customer Up Sell4

Win Back12Retention11Dormancy10

Activation

q y

Win Back12Retention11Dormancy10

Activation

q y

Case: Yell.com Cross SellCase: Yell.com Cross Sell

•Powerfully simple example of marketing channel optimisation

•Ongoing cross sell programme between Yellow Pages and Yell.com

•Customers receive initial communication based on data availability

Agencies:

Creative: Chemistry London

h l & l lTechnology & Deployment: Data Lateral

Email RecipientsEmail Recipients

•HTML email sent to Yellow Pages customers with an email address

•Email allows customers to immediately purchase and preview advertising online 

Mailing RecipientsMailing Recipients

•Customers who have not provided an email address are sent a mailing pack allowing them to register their email address

•An email is automatically triggered to the customer as soon as their response is captured

The Role of Data in Multi‐channel

Multi-Channel Direct Marketing Goals

1. Recognise the same individual across channels1. Recognise the same individual across channels2. Treat each individual as an individual3 Understand which activities and channels provide3. Understand which activities and channels provide

the most value4. Create individually tailored and effective4. Create individually tailored and effective

marketing programmes

Implementation Challenges“What are the major pain points that your marketing organisation faces today?”

Implementation Challenges

Painful…using the data acrossdata across channels

Source: Forrester

What’s In A Multi-Channel D t bDatabase

Promotional History & 

Promotional History & 

Campaign Selections & Campaign Selections & 

TransactionsTransactions

yParticipation

yParticipation ResponsesResponses

Modelling and ProfilingModelling 

and Profiling

Channel Preferences & Permissions

Channel Preferences & Permissions

SuppressionsSuppressions

Single CustomerSingle 

CustomerContact Contact  Web TrackingWeb TrackingCustomer View

Customer View

DetailsDetails Web TrackingWeb Tracking

Some Challenges With Multi-Channel Data

Single CSingle 

C ContactContactChannel 

PreferencesChannel 

Preferences Promotional Hi &

Promotional Hi &

Campaign S l i &Campaign S l i & ModellingModellingCustomer 

ViewCustomer View

Contact DetailsContact Details

Preferences & 

Permissions

Preferences & 

Permissions

History & ParticipationHistory & 

ParticipationSelections & ResponsesSelections & Responses

Modelling and ProfilingModelling 

and Profiling

Identifying a unique

Identifying a unique

Collecting and maintainingCollecting and maintaining

Compliance & Legal

Compliance & Legal Capturing all Capturing all 

Attributing responses in Attributing responses in  Who to target, 

when andWho to target, when andunique 

consumerunique 

consumermaintaining 

detailsmaintaining 

detailsLegal 

requirementsLegal 

requirements interactionsinteractions multi‐channel campaigns

multi‐channel campaigns

when and how?

when and how?

Month Day, 2008Page 25 © Lateral Group Limited, 

2008

Know Your ConsumerKnow Your Consumer•How do you recognise individuals across y gchannels?Email Address Phone Account #

•Think About•Data quality at capture•AuthenticationAuthentication•Deduplication rulesShared details

Filling In The DetailFilling In The Detail

•Develop a multi‐level data matrix

Light ProfileLight Profile

Name

Full ProfileFull Profile

Product Interest

•Plan campaigns to collect required details

•Always… always make it in the Email Address Transactions

y yconsumers interest to let you know more

•Continually review and consolidate 

Mailing Address

Opt‐In

Campaign

Responses

Analysis Profilesysingle view 

•Include all contact & tracking data Etc…

Build a Better UnderstandingBuild a Better Understanding

•A multi‐channel database provides a Channel 

PreferenceChannel 

PreferenceHow do they like to be communicated with?

wealth of information for marketers to deepen their understanding of individual customers.

Current ValueCurrent Value

How valuable are they to us now?

•Some key questions to consider:

•Which channel(s) does this person prefer?

Potential Value

Potential Value

How much “headroom” do they have?

Segment /Segment / H h ld lprefer?

•What is the most cost effective way to communicate this message?

•Which channels develop the best 

Segment / Profile

Segment / Profile

How should we appeal to them?

Response M d l

Response M d l

Should we target them f thi d t?

pprospects for this product?

ModelModel for this product?

GGGG GGG

Understanding BehaviourUnderstanding Behaviour

•Utilises information about individual consumers behaviours to group like consumers together.

•Dominos Example

•Product & Basket Analysis•FrequencyFrequency

•Promotion Responsiveness

Make it Relevant … Make it Personal …

•Moving interactions from anonymous to individualMoving interactions from anonymous to individual allows marketers to increase relevancy of content•Sequence communications across channels to qmaximise impact for the individual

•- Offline to online: pURL & login pages•- Email to Web: Personalised landing pagesg p g•- Online to offline: Fulfilment functionality•- Offline to mobile: Text2Email & call backOffline to mobile: Text2Email & call back

Case StudyCase Study

Engaging with Anonymous Customers

Case Study: Superdrug Sexy Summer Figures

•Objectives: •Channelsj

•Grow database•Drive in store purchases

•Banner advertising•Web

•Word of mouth

•Target Audience

Word of mouth

•Email

•PrintS•Female travellers 20 to 30 

prior to their summer holiday•In Store•SMS

•Direct Mail

•Fulfilment

•Events

Agencies:

Strategy & Creative: SPF15, The Mindset Marketing Agency

Technology & Deployment: Data Lateral

Creating AwarenessCreating Awareness

URL promoted on:Create Awareness p

• Point of purchase• Receipts• Carrier Bags

Create Awareness

Build DesireBuild Desire • Carrier Bags• Print advertising• Home Page• Lastminute.com Gain PermissionGain Permission

banners and emails

• Word of Mouth• Events

Build a RelationshipBuild a Relationship• Events • PR

Capture the ValueCapture the Value

In Store AdvertisingIn Store Advertising

Print Advertising (Cosmopolitan)Print Advertising (Cosmopolitan)

Banner AdvertisingBanner Advertising

Building DesireBuilding Desire

Incentives Create AwarenessCreate AwarenessPromotion:

• Pre‐Registration Site

Create AwarenessCreate Awareness

Build Desire Site• Lastminute.com• Print Inserts

Gain PermissionGain Permission

Build a RelationshipBuild a Relationship

Capture the ValueCapture the Value

WebsiteWebsite

Gaining PermissionGaining Permission

Data Collection:Create AwarenessCreate Awareness

• Name & Address• Email & Mobile• Shopping

Create AwarenessCreate Awareness

Build DesireBuild Desire • Shopping Preferences

• Holiday DetailsGain Permission

Build a RelationshipBuild a Relationship

Capture the ValueCapture the Value

Building a RelationshipBuilding a Relationship

Multi‐Channel Create AwarenessCreate AwarenessJourney

1.Welcome Email2 Beauty Bag

Create AwarenessCreate Awareness

Build DesireBuild Desire 2.Beauty Bag3.Buy Before You Fly4.Weather SMS5.Welcome Home Gain PermissionGain Permission

Email6.Stay Beautiful PostcardBuild a Relationship

Capture the ValueCapture the Value

Capturing ValueCapturing Value

Value Captured:Create AwarenessCreate Awareness p

• 160,000 opted‐in prospects

• 62% email open

Create AwarenessCreate Awareness

Build DesireBuild Desire • 62% email open rate

• Tell a friend & WOM generated Gain PermissionGain Permission

60% of registrations

• Increased spend generated over

Build a RelationshipBuild a Relationshipgenerated over 460% ROI

Capture the Value

Multi Channel HighlightsMulti Channel Highlights

•Attention to the individual – placing them at the heart of the p gcampaign•Strategic use of channels at each touch point to create an i t t d t jinterconnected customer journey

– Combining online and offline mechanics– Combining online and offline mechanics– Email provided rich detail– Product samples provided tangible rewardsp p g– Personalised vouchers tied online to offline purchase– SMS provided instant alerts

To RecapTo Recap

•Key Multi‐Channel Obstacles: • Permission Marketing•Identifying individuals across channels•Access to data across organisation•Maintaining & updating individual level 

1. Relevance

2. Anticipation

3 Personaldata inc. Permissions

•Key Benefits:

3. Personal

• Multi Channel Marketing

li i h i h•Support a single relationship across multiple channels 

•Create journeys that span channels to maximise engagement during

1. Delivering the right message

2. To the right people

3. In the right waymaximise engagement during

4. At the right time

Questions

Month Day, 2008 For Internal Use OnlyPage 44 Operations Review