Precision Marketing by Ricoh for DeMeter

Precision Marketing

Den Haag, March 17th 2015

Thomas Haas, DM Solutions & ServicesPrincipal, Ricoh Europe plcthomas.haas@ricoh-europe.com

Werner Rohrer, SAS Alliance [email protected]

The intelligence that creates an individual approach…… and gets results.

Ricoh’srole in directmail

The role ofDirect Mailin today’smedia

mix / studyresults

How to create anomni-channel experience using

Big Data and smart technology

Topics to be covered

Data growth

Copyright Ricoh Europe PLC 2014

Online Purchasing

Customer drivenProduct driven

SmartTV

SatNav

SmartMeter

Data growth


Customers like direct mail

-

50

100

150

200

250

2010 2015 2020 2025

Monochrome

Color

Data Source: Caslon & Company

After years of emailing, Tweeting, Facebookingand YouTubing, Direct Mail celebrates a renaissance.

The American DMA’s 2013 Factbook states that 65% of customers of all ages havemade a purchase generated via direct mail.

48% of the UK population responded to direct mail in 2013.

48% 65%

Direct Mail(Billion pages)

Role of direct mail in today’s mix

Bills, statements

Direct Mail

Books

Brochures

CAD / rendering

Proposals / reports

Manuals

Forms

Letterhead / other office documents

Catalogues

Posters / banners / signage

Inserts / coupons

Presentations

Directories

Newspapers / newsletters

Mono

Colour

Source: Infotrends Growth Applications for Production Digital Print in Western Europe, Aug 2013

Top 15 Applications 2012 (billion impressions, A4) 40.7 7.8

0 20 40 60

Role of direct mail in today’s mix

53.9% Consumers believe they receive too much unaddressed mail (flyers) but 53.9% are happy with the amount of personalised direct mail

Consumers regard personalised directmail as the trusted medium for customer communication and spend on average 2-4 minutes reading a piece of direct mail

65% 65% say that the possibility of receiving a gift or any form of discount increases their opening rate of direct mail

30% say that they’d miss direct mail 30%

Direct MediaReport 2013/14

DMVOE

(Austrian Dialogue

Marketing Association)


DMVOE

(Austrian Dialogue



DMVOE

(Austrian Dialogue



DMVOE

(Austrian Dialogue



DMVOE

(Austrian Dialogue



DMVOE

(Austrian Dialogue



DMVOE

(Austrian Dialogue


It stays around

Special shapes& scent

applications

That special

mail moment

The feel of it

Direct mail is special

Average response rate for existing customer

Direct Mail continues to deliver high response rates and high conversion rates compared to other channels(incl. non-personalised mail).

Direct Mail 2013, American DMA Factbook.

4.4%0.12%

Email

Online marketing can’t compete in many aspects with Direct Mail, which immediately creates emotion because of…

Direct mail used in conjunction with other media

Widening to direct marketing

Don’t know 7.6%

One8.8%

Two30.2%

Three36.4%

Four13.4%

Five+3.7%

An average of three media types are used for a typical communication/marketing campaign

N=1,026 marketing managers

Response and conversion rates using multiple channels

Source: InfoTrends – Understanding Vertical Markets: Enterprise Communication Requirements 2012

Campaign Media Combinations

Response Rates Conversion Rate

Print only 6.0% 16.2%

Print and e-mail 7.6% 18.3%

Print and web landing pages

7.6% 15.3%

Print, e-mail, and web landing pages

8.2% 16.5%

Print, e-mail, web landing page;; and mobile marketing

8.7% 19.0%


dma UK Research fundamentals

• attitudes towards direct/advertising mail as a part of the marketing channel mix

• online survey among DMA agency and brand members

• a copy of Fusion Pro VDP Creator plus one year's maintenance will be given to a respondent through a random draw

• November 12 - January 16 • 130 participants (106 used advertising mail in integrated marketing campaigns in the past 12 months)

18/03/2015 Version: [###] Classification: Internal Owner: [Insert name] 10

Reasons for using direct mail

11

3%

4%

7%

8%

8%

14%

19%

37%

Perceived as a premium marketing channel

Good consumer reach

Enhances digital response rates

Cuts through digital clutter

Perceived as a trustworthy marketing channel

Perceived as appropriate for the product / service being marketed

Good ROI

Proven effectiveness in achieving campaign objectives

Perceived barriers

2%

2%

4%

4%

6%

8%

14%

16%

43%

Limited consumer reach

No longer has a place in the marketing mix

Limited interactivity

Not specified by client

Perceived as inappropriate for the product/service being marketed

Lack of knowledge / expertise in marketing team

Association with ‘junk mail’

Lack of customer data / analytics

Cost

Perceived barriers

1. Perceives a lack of available customer data or analytics. And so suffer from a lack of knowledge and expertise. Complain about limited interactivity (30%).

2. Extremely price sensitive. Minor subgroup perceives advertising mail as inappropriate for their product/service (41%).

3. Fear that it might be considered as ‘junk mail’ (22%).

Note – Cost is the largest single perceived barrier. Digital natives in segment 2 not familiar with cost & return associated with advertising mail.

“Which of the following have been barriers to using advertising mail as part of your integrated marketing campaigns? Please rank the top five barriers.”


Achieved goals

1. 100% of customer acquisition (38%)

2. Customer retention / brand awarenes(35%)

3. 100% revenue generation (27%).

Note – Perhaps this is the result of the kpi-targets set by the agencies’ clients;; some of them might define the growth of their customer base as a target, some other’s target might be revenue growth?

“Please rank your goals in terms of importance, 1 being the ‘most important’ goal to be achieved by using advertising mail for an integrated marketing campaign and 4 being ‘least important’ goal.”


Thinking about the following outcomes that you may want to achieve as a result of using advertising mail in an integrated marketing campaign, which outcomes would be most important to you?

Expected outcomes

3%

9%

18%

27%

43%

13%

16%

17%

23%

29%

21%

18%

21%

24%

11%

24%

29%

16%

17%

10%

34%

26%

26%

7%

3%

3%

3%

3%

2%

3%

Drive the recipient to participate in a competition

Request customer to update his information

Drive the recipient to a physical store for further information or purchase of

a product

Engage customers as part of a loyalty programme

Drive the recipient to an online store for further information or purchase of

a product

1 Most Important 2 3 4 5 - Least Important Not ranked

$51.40 $52.58 $60.50 $190.49 $55.24

Cost efficiency

More and more brand owners and marketers have learned that it’s not the actual production and postage costs that

matter so much … what truly matters is the ROMI.

Cost per lead/order

Direct Mail (letter-sized)

Pay per click Print advertising Telemarketing Email

According to the DMA, 2012 Response Rate Report, Direct Mail is in the same cost per lead range as print advertising or pay per click (eg Google AdWords).

Nicky Bullard,Executive Creative Director at direct marketing agency Lida

Rory Sutherland,Vice Chairman, Ogilvy & Mather UK and Executive Creative Director& Vice Chairman, OgilvyOne

Clients are starting to get an appetite back for direct mail, particularly with younger audiences. Their lives have been so digital that direct mail is hugely disruptive for them.'

'A large part of communication is not through words on a page but through cost and effort. You will probably find that upmarket and effortful print will grow as a category.'

The uniqueness of print

Precision Marketing


PrecisionMarketing

MotivationBehaviour

SegmentProfileAnalyse

Betterunderstandingyour customers

Why do CMOs care about Big Data?


Communication noise to relevant communications

BRANDRELATIONSHIP

BRANDRELATIONSHIP

SMS SMS

SMS

Up to 3,000messagesper day

6 per household/ week

200 billion worldwide / day

Personalised& targetedcommunications

Right product

Right customer

Right channel

Right time

SMS

SMS

SMS

Main beneficiaries

Precision Marketing services

Education

Banking & Finance

Automotive

Telecoms

Utility companies

Hospitality

Retail

Charities

Data silo 1 Data silo 2 Data silo 3

Data analytical software

Likelihood of customer buying product or service

Notlikely

Highlylikely

Precision Marketing Information Flow

Holisticcustomer view

Scorecard

Maximising cost efficiency

10 20 30 40 50 60 70 80 90 1000%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

95% (revenue)

40% (mailed)

% of revenue captured

% mailed

Captured revenueConstant

Customer Lifetime Value Share of Wallet Customer Link Analytics Social Media Analytics Location Based Services

Online-Analytics Forecasting Churn Prevention

Customer Segmentation Response-OptimizationCross & Up Selling

Precision Marketing Value

Individual messaging means relevance

Dynamic content

composition tool

Relevant content defined

Offer linked to target group

Individual& relevant documents created

Cross channel


Personalised landing pagesPlay an important role in the world of omnichannel marketing as they contribute to a positive customer experience:

John Doe, London NW1

3BF

www.win.com/johndoe

Hello John,

Fill in the missing fields toclaim your prize:

John

Doe

Let the consumer experience the

brand but not the channel

Age 49

Personalise the web (PURLs)

PDF

Clickable Paper


SAS


Ricoh & SAS alliance

SASsoftwaresolutions

Access tocutting edgedata analyticstechnology

THE FORRESTER WAVE™: BIG DATAPREDICTIVE ANALYTICS SOLUTIONS, 08/2014

“SAS (LEADER) PROVES AN ANALYTICS POWERHOUSE. WITH AN UNWAVERING FOCUS ON DATA ANALYTICS SINCE 1976, SAS OFFERS A

BROAD SET OF TOOLS FOR PREDICTIVE ANALYTICS, AN ARCHITECTURE THAT SUPPORTS MULTIPLE PLATFORMS, IN-

DATABASE ANALYTICS, IN-MEMORY ANALYTICS, AND SIGNIFICANT MARKET PRESENCE. SAS HAS MORE THAN 19,500 UNIQUE CUSTOMERS IN 135 COUNTRIES. FORRESTER ESTIMATES THAT WELL OVER 3,000 ARE USING PREDICTIVE

ANALYTICS.”

MAGIC QUADRANT 22 OCT 2014INTEGRATED MARKETING MANAGEMENT

“SAS is a Leader in the Integrated Marketing Management market for its robust capabilities and market momentum across analytical, executional and operational marketing processes. Clients should consider SAS for its robust IMM capabilities and strong focus on Marketing Performance Management and Advanced Analytics.

Case studies

Casestudies


Invoice history graphCharges

summary

Transaction summary

Loyalty points update

Variable promotion

Loyalty handset promotion

Contact information & e-billing promotion

Movistar statement

Improve awareness of recipient

Convince potential customers to switch from their existing bank to the nearest branch of Erste Bank. Highlight that a branch of Erste Bank is nearby. Grosse Datenmengen mussten verarbeitet werden

Use of digital color printing

Dynamic document composition for each recipient

Use geographical information to draw individual and relevant maps

Drastically improved awareness

Created curiosity and resulted in high openingrate

Potential customers came into branches

Erste Bank Direct Mail

Erste Bank, one ofAustria‘s largest retailbanks implemented an innovative Precision Marketing direct mailto present an attractive offer toswitch the bank.

Challenge

Solution

Result



Erste Bank Direct Mail

Bonprix wanted to evolve their mail order catalogues, which are still an important part of their total marketing mix (total number of copies per year: 220m).

By increasing the number of orders generated through seasonal catalogues. Printed through a combination of offset print (core) and digitally printed cover.

Dedicated Precision Marketing workshop with Bonprix’s catalogue production team.

Ricoh proposed the combination of data analytics, document redesign and digital printing technologies

Strong rise in the number of orders due to relevantmessaging on digitally printed catalogue covers

Increased customer satisfaction (offers became more personal).

Better profiling of customers by adding all of their historical purchases to their individual customer profile.

Catalogue personalisation

This International fashion mail order company, based in Germany, aimed to use digital printing techniques to personalise catalogue covers with suitable next best offers for their existing customers.

CHALLENGE

SOLUTION

OUTCOME


The pilot (go to market)

Thepilot


Measure &adjust

DefineNeeds

(workshop)

Gatherdata

Deploy

Analyse&

model

Selecttarget &strategy

Precision Marketing workshop/ pilot (go to market)

Marketing collateral


Available on Amazon(also as Kindle edition)

Supports ‘Clickable Paper’

The book

Onlinematerial

What is ‘Precision Marketing’?http://www.youtube.com/watch?v=MK-AHurIfiI

What is ‘Predictive Data Analytics’?http://www.youtube.com/watch?v=f4W5nEm4zfQ

How does Ricoh’s reseller model work?http://www.youtube.com/watch?v=_NdOZbWOFDc

Questions?
