HP Presentation July 21
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Transcript of HP Presentation July 21
©2009 HP Confidential
Becoming Relevant in 2011 & beyond
Boris HughesBusiness Development Manager - NADirect Mail
Agenda
•The Marketing Mix is changing
•Online Reputation is relevant
•Users want a relevant multimedia experience but message overload destroys that experience
•Social media requires your attention
•Hispanic/Latino Marketing hits a tipping point
•ROI is relevant
•Examples of what is being done today
The Marketing Mix is changing
3 HP Confidential
Winterberry – US marketing spend by channel (CAGR 2007 – 2009)Interquest, 2010
US Marketing Spend by channel (CAGR 07-09)
In spite of the challenges, full color, targeted direct mail is growing
Source: Caslon, Interquest, Pira, Primir, Internal HP estimates
The total direct mail print market is flat/declining to 2013... But digital print is growing - and digital color is growing quickly, at 25% annually
Billi
on p
ages
, wor
ldw
ide
Why??Mailing cost increases, shorter runs, personalization, mixed channel marketing, CRM growth…
Print Service Providers are seizing every business opportunity!
Outlook 2011: What Will Drive Growth?Marketers require platforms that enable:
Privacy-compliant, integrated, multi-channel data for targeting, enhancement and attribution
Improved database and analytics solutions for an increasing number of variables that automatically adjust models based on internal and external events
Cross-channel campaign execution platforms targeting advertising for real-time and calendarized media buying
5
Relevance
Today’s Cross Media Experience…..
• Refers to utilizing a variety of media formats including Social & Mobile−Provides a high level of interactivity
− Is inherently engaging −Provides improved results
Direct mail
Web:Search
Display adPress release
Blog postAffiliates
Mobile:SMS
QR codesApps
Print:Press adSignageCatalog
Collateral
Social media
InfoTrends Study-Key Findings
• Cross-media is here to stay
• Personalization isn’t enough… It’s about engagement and interaction
• Data-driven cross-media is a reality
• Agencies and marketers actively engage third party resources for all facets of campaigns
• Measurement systems are lacking
Direct Mail is Relevant to that Mix
$571 BillionUS sales driven by direct mail in 2010Up from $556 Billion in 2009
$48 BillionWhat US businesses anticipate spending on direct mail in 2011
USPS Deliver Magazine May 2011
The key barrier to growth of targeted direct mail is customer perceptions regarding costs
• The question everyone asks: … Does targeted direct mail cost more?• On a per-piece basis - YESColor digital print is more expensive than offset (when the run isn’t short)
• On a program cost basis, NOT NECESSARILY Often fewer pieces are printed and mailed in a targeted campaign, meaning the total program cost might be lower
• The question everyone should be asking: … Does targeted direct mail give me a higher ROI, or “bang” for each marketing dollar?• YES! While cost per piece may be higher, cost per lead and cost per sale will be lower…
Online Reputation is Relevant
•87% of respondents believe the CEO’s reputation is an important part of a company’s reputation.
• Are you Proactive or Reactive? •Today, you are who Google says you are.
What is the WEB saying about You?
Hill & Knowlton
Users want a multimedia experience but message overload is close at hand•91% of people have opted out of emails•63% of people say they would consider defecting from a brand that sends them generic irrelevant content
•22% claim they have already defected
1. Is your message relevant?2. How many of your customers have already defected?3. Are your customers being bombarded with
messages?Source: USPS Deliver Magazine
13
— Traditional Channels(Passive)
14
— New Media Channels(Interactive)
Message and Media Overload
Mediaeverywhere
Always on
Too much content
15
What is your company doing to stand out?
QR Codes: Blending Print and Mobile with Big Brands and Small Businesses
•Sears
•Constellation Brands
•Smyth Jewelers
Multichannel campaigns are the marketer’s equivalent of a boxer’s “one-two” punch: Combine multiple channels to increase effectiveness
Creating Interactive Print
• Some benefits of multichannel direct mail include:• Higher response rates when DM is combined with other channels• Extends reach to new markets (both offline and online)• Personalized URLs enable a real-time response to prospects, achieving better conversion rates, and real time result measurement
• Cost-efficient lead generation, list growth and database development method − Gather and qualify additional information, get new email addresses into your database
• Microsites (pURL’s) and QR codes• pURLS: Personalized URLs and landing pages for each DM recipient• QR codes: Quick Response Barcodes – no need to type a URL!
Social media requires your attention
Perception is reality…. Never more so in the world of Social Media• “43% of all U.S. online consumers engage with at least one brand
on either Twitter or Facebook, so you must not only understand where to establish a social media presence, but how to communicate once you're there.”
•Remember that social media complements other marketing channels; it doesn't replace them.
Are you listening, do you know where/what they are saying about your
product/company/campaign?
It’s a bit more difficult in 2011
20
Even in the core keeping a voice is a challenge
Who Are You Talking To?
22
Online Observation Services
Page 23 March 2011
Social Media Listening enables you to…
• Take action on real-time market issues and trends that impact the business
• Measure market perception before and after product launch campaigns to help focus and maximize marketing expenditures
• Evaluate customer perception and shape messaging accordingly to build and manage product and corporate brand value
• Identify opportunities
• Provide valued measurement and statistics to internal customers such as product development and the executive team
• Proactively manage corporate communications crises
Create Word of Mouth Champions
•33% of consumers are WOM Champions
•9 of 10 WOM Champions belong to 1 or more loyalty marketing programs
•WOM Champions account for 39% of memberships in loyalty marketing programs
•Loyalty marketing program members are 3X more likely to be WOM Champions than consumers who don’t belong to loyalty programs
COLLOQUY Research Shows 20% Decline in Word-of-Mouth Opinion Sharing about Companies and Products since 2008
1. Ensure opportunity for a dialogue (not a monologue)
2. Involve customers in online social sharing communities, panels
3. Transform your marketing mindset from "incentive" to "service.“
25
Hispanic/Latino Marketing hits a tipping point
•2010 US Census shows a 43% growth in the Hispanic or Latino population from 2000 Census vs. 4.9% growth in the same time period for non Hispanic or Latino
•Hispanic or Latino population now 16.3% of US Population
By not meeting the language and regionalization requirements you risk loosing 16% (and growing) of your possible customer base
Measurement is Essential!
“Every week I have to go to a gunfight [the senior leadership meeting]… and I am tired of going to this gunfight with only a knife.”
Maintain focus on ROI
• 53% of organizations do not use forecast of campaign ROMI, net present value (NPV) or customer lifetime value (CLTV), and/or other performance metrics
• 57% don’t use business cases to evaluate marketing campaigns for funding
• 61% don’t have a defined and documented process to screen, evaluate, and prioritize marketing campaigns
• 69% don’t use experiments contrasting the impact of pilot marketing campaigns with a control group
• 73% don’t use scorecards rating each campaign relative to key business objectives prior to a funding decision
Source: Mark Jeffrey: Data Driven Marketing: The 15 Metrics Everyone in Marketing Should Know
Key Examples of How People are doing it differently
30 24 July 2011
HP Server and Storage lead generation
Example of finishing process (folding)
Customised URL (cURL)
Quote varies by industry/job
Text varies by industry
Images vary by job
Text varies byindustry/job
Colour changes per job type
The different job function/industries:• Public: IT, Procurement, Security, Services• Finance & Telco : CIO, CFO, Risk, LOB• Manufacturing: CIO, CFO, Supply Chain, LOB
31 24 July 2011
HP Server and Storage lead generationRISK ManagerFinance & Telco
LOB Finance & Telco
CIOFinance & Telco
CFOFinance & Telco
Overall response rate of 20%12% conversion (= registration for executive briefing) rateQuick campaign setup for future campaignsReusable templates
Target
CustomerA North American chain of upscale discount stores
ObjectiveBring creative and production processes in house and launch a personalized direct mail campaign in five weeks
SolutionA self-mailer
• Product categories based on previous purchases• Peel-off coupon with 20 variable offers based on buying habits• Coupon barcodes tracked and measured offer response
Results• Personalized print campaign for over 2 million customers in five weeks• 50 percent lift over previous static direct mail pieces
University of Advancing TechnologyCustomer
Objective
Solution
Results
A higher education institution
Deploy a marketing program delivering lower costs per lead, easy fulfillment and a positive first-touch prospect experience that projects the school’s mission of advancing technology
•Direct mail•RURL Web sites•E-mail•Telemarketing
•Increased online enrollment by nearly 30%, exceeding the initial goal of 20%•Streamlined recruiting process, providing added efficiency and cost savings
DPI’s customer, Nestlé wanted to promote its Drumstick brand sundae cones in a personalized baseball card promotion, with the look and feel of a real baseball cards, and at a low cost.
CHALLENGE
SOLUTION DPI website to order personalised cards
Sample cards from campaign
600-1000 orders per dayTotal of over two million personalized cardsDPI grew their business by 42%, without expanding their workforce!
RESULTS
Consumers visited a DPI-developed website, uploaded an image, entered a youth’s team name and player statistics, viewed a PDF proof and could order a 16-pack of cards
Nestlé & DPI
The Guardian wanted to increase newspaper sales; recognize customer loyalty and encourage its readers to purchase more editions per week.
CUSTOMER CHALLENGE
•Subscription scheme via vouchers offering readers three different packages for over the counter payment
• Each personalized voucher features the date of the issue, the subscriber’s name and subscription number and a barcode for tracking purposes
CUSTOMER SOLUTION
Personalized coupons are customized for each day of the week
Guardian News & F.E. Burman
• Over 40,000 subscribers have joined the scheme
• Creation of a customer database that will allow newspaper to revise its sales strategy
• The scheme has helped to support the Guardian’s network of UK news retailers
CUSTOMER RESULTS
“We have seen how powerful effective personalization can be, and it has changed the way we think about communicating to our readers and advertising. We plan to use this to look at new ways of adding
value to both our readers and advertisers in the future,”
Richard Furness, head of product sales, Guardian News and Media Limited
Guardian News & F.E. Burman
Innovation: Linking QR codes to Facebook “likes.”
http://www.youtube.com/v/4OZmbBPym1k&feature/player_embedded
Apps tied to print…. the new cross channel marketing
http://www.youtube.com/v/9ohhf0p8CFM&feature/player_embedded
Apps tied to print…. the new cross channel marketing
http://www.youtube.com/v/hcVcUNoE2jw&feature/player_detailpage
using LinkedIn, HP creates 2000 product recommendations
Challenge
• Engage commercial clients on LinkedIn
• Encourage business professionals to recommend HP products and services to their peers
• Quickly build a critical mass of recommendations
Solution
• Establish LinkedIn Company Page to engage
professionals in a business context
• Activate LinkedIn recommendation capability, inviting visitors to endorse HP products and services
• Use LinkedIn Recommendation Ads to accelerate results
Results
• 2,000 product recommendations in two weeks
• 20,000 new followers on HP Company Page
• 500,000 viral updates about HP products and services
HP can help you break away from the crowd
43 7/24/2011 HP Confidential
Thank you
Boris HughesBusiness Development Manager - NADirect [email protected]