DATA IS THENEW BLACK.

Nick MercerMD MercerBell

Introduction

• A trend emerged a few years ago• Clients seeking advice around relationship

marketing with customer or prospect data at its heart

Is Data the new black?

Agenda

• The changing media landscape• New consumer preferences• Changes in the marketing

environment • Collecting and using consumer data• Case studies• Summary.

The changing media

landscape

In 1985 you could reach 80% of consumers with 4 TV spots

Today you need 117

We’ve witnessed a decade of change in media consumption

Personalised communications

Email marketing

• Email grew in 2008 by 10 %

• Email marketing in the US worth $12.1 billion

• More than search or online advertising

• In the UK email marketing platform sales grew 10% in 2008

Direct mail

• YR ended 30 June 08 direct mail volume in Australia grew 9%.

• Previous year grew at 6% • Previous five years DM

volumes have increased 45%.

• Estimated volume this year showing small growth

Consumer preferences

The Reaching Consumer research shows a shift in people’s preferences for

receiving marketing messages

Research key findings 2003 and 2008

1. Direct Mail is the clear media preference2. Growth in preference for email at the

expense of mass media channels– Preference for email was up from 8% to 23%– Preference for newspapers down from 16% to 7%– Preference for television down from 29% to 9%

3. Increased rejection of marketing messages in some industries

Research commissioned by Australia Post and executed by Open Mind Research Group

Changing marketers needsChanges in the marketing

environment

Increased focus on budgets

• Greater accountability & robustness around advertising & marketing budgets

• Management are demanding much greater emphasis on proving ROI from all marketing channels

• Advertising no longer king • Move towards channel planning.

Communications activities

• Shift to customer retention• Growing share of wallet• Building customer loyalty

These activities mainly achieved by DM and

EDM

Collecting and using consumer data

Data is everywhere

• More available customer data than ever before– Demographic data– Transactional data– Behavioural data– Usage data– Psychographic data

• Used to drive DM, EDM, mobile and website content

The impact of technology

In the old days

Today

Database marketing has become cheaper, easier

and faster

Everyone is doing it

Data driven communications

Army Recruitment, UKTelstra MobileToyotaRepco

Army Recruitment UK

personalisation driven by

attitudinal data

My segment

Strong call to

actions

The results

• Targeted high school students and recent leavers

• In the first 12 months over 400k completed surveys

1. Totally new level of engagement2. 400K new recruit leads 3. Wealth of attitudinal data

Attitudinal data changed recruitment advertising

• Analysis lead to advertising to key segments

• ‘mates’ segment are attracted for the social side

• Advertising used imagery of obstacle courses and playing xbox and mentioned the jobs most likely to suit

• Rolled out across TV and print.

Telstra Mobile

Ultimate personalisation and customisation

Telstra Mobile

• Massive amounts of customer data available

• Advanced usage of customer segmentation

• Combined transactional and demographic data and overlayed geo-demographic

• Recognised 8 key customer segments.

TelstraSegment specific imagery

Segment specific

messageSegment specific

copy

Different hand sets

Different plans

Unique code

Telstra

Totally tailored

messages

Tested a number of O/E

imagery to reflect the segment

but plain wins

So how did it stack up?

Won Gold in ADMA Data driven category

Toyota prospect relationship marketing

programData driven online

prospecting

Different car buying landscape

• New car purchase behaviour has changed• Average dealer visits decreased from 7

times to 1.5• Need to continue to influence prospects• Build consideration and be a ‘silent

salesman’

26 week email 10 week email

Bi-monthly enewsletter6 week email

Update your

interest webpage

Expired PIDsurvey

Toyota PRM results

?

Repco Automotive

How PURLs increased sales

The Bloody Big Rally promotion Weekly email offers to every customer based on profile info, purchase history and growth potential

Personalised mail segmented by customer profile and status, driving customer to PURL

Targeted bursts and “last chance” SMS boosted registrations and sales

Direct mail to customer accounts to encourage sign up to the promotion

Follow up direct mail to customer accounts not signed up yet

Customer email

Personalised

Time to go

Sales value

No. of entries

PURL

Next logical product

Every store, state manager, plus national marketing, have daily dashboards updating

performance against targets

Results

• Incremental growth target was 8% • Actual growth was 13%• Participation rate by customers over 60%• Now rolled out into Repco’s overseas

markets

Results

• Short term tactical win• Long term strategic opportunities

identified– Compared similar size businesses product

sales– Identified business that were only buying

certain products from Repco– Potential revenue of $4m– Now developing targeted cross sell

communications

Summary

Summary

• A new media landscape • Consumers preferred communication

channels have changed• Changes in marketing• Technology impact• Unexpected companies are collecting and

using data• Some cases studies.

Data is the new black

Data is NOT the new black

Data is fundamental topersonalised communications today

Data driven communications are the way forward

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Thank you Questions?

Nick MercerManaging DirectorMercerBell