The Power of Personalized Engagement to Connect with DigiGen by L Watson 05-05-2014

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

The Power of Personalized Engagement

to Connect with DigiGen

Lisa Watson Commercial Business Development Manager, HP IPG APJ Chairman, Direct Marketing Association of Singapore

05 May 2014

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The Power of Personalized Engagement to Connect with DigiGen

What personalized engagement means to today’s digital generation

Leveraging the principles of segmentation to drive meaningful customer engagements

Big data considerations when building relevance profiles

The Engagement Challenge … Our World Has Changed

4

Because our Customer’s World Has Changed

More POWER More choice

More information

5

This Happened on Facebook 2013

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Dad, We Want a Puppy NO!

7 hours!

7

5 days

8

Consumers are Demanding!

More POWER More choice

More information

And yet we want (and need) maximum

engagement from them

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Why Does Engagement Matter?

Buy More Stay Longer

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Engagement Must be Earned

This is NOT the Customer

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Engagement Must be Earned

This is YOU !

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And our Customer is Saying…

Be RELEVANT!

How Do We Engage DigiGen?

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It’s All About Relevance

The RIGHT Customer The RIGHT Product The RIGHT Channel

The RIGHT Time The RIGHT Message

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We Must Move from VOLUME to VALUE Marketing

The RIGHT Customer The RIGHT Product The RIGHT Channel

The RIGHT Time The RIGHT Message

Mass Communication

VOLUME

Personalization & Customization

VALUE

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Data is Oxygen!

Customized

Personalized

Targeted

Accountable

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How It Started In 2011, Coca-Cola Australia had the idea to run a campaign called “Share a Coke”. Their surveys showed that number of people still had not tasted a Coke! They selected the 150 most common first names in the country and printed the wrap around labels of their single serve bottles.

New News HP helps bring to life Coca-Cola’s biggest-ever personalized brand campaign across Europe Record-breaking HP Indigo Digital Press productivity achieved to produce 800 million high-quality personalized labels in 32 countries

HP Indigo - Coca-Cola





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Coca Cola Campaign in Japan

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 25


Data is Oxygen – For Personalization & Customization

Customized

Personalized

Targeted

Accountable


With Data, Personalization Becomes Possible


Much Better Personalization!

MY Name!


Personalization & Customization Work Together


Eric vs Erin: The Gifts are Personalized & Customized


Why Personalization Matters 19 Feb 2014


Keds Kids, Israel – Fashion Catalog Combination of variable data printing with Social media

Your kids are stars!


Engagement-Based Segmentation


Half the money I spend on advertising is wasted. The trouble is, I don’t know which half.

Why Does Customer Segmentation Matter?

John Wanamaker Philadelphia, 1870s


What is Customer Segmentation?

80 - 20



Not All Customers Are Created Equal



It means increasing the return on your marketing investments by treating

different customers differently


There are Two Reasons to Segment

Decrease your marketing investment by

reducing number in your target audience

Increase your marketing results by

improving the relevance of your marketing messages

Filtering

Differentiation


All Customers

Our Goal is to Take Our Customer Universe


And Segment to Find….

The BIG EASY


All Customers

We Use a Value Matrix to Identify BEST Opportunities

Difficult Big Customer Value

Easy

Cu

sto

me

r R

ead

ine

ss

Small Easy

Big Easy

Big Difficult

Small Difficult

Small


All Customers

Then Plan Our Communications Accordingly


Easy

Cu

sto

me

r R

ead

ine

ss

Small Easy

Big Easy

Big Difficult

Small Difficult

Small

1

2

2

1

Short Term

Long Term


All Customers

Example from a MY Retailer – Loyalty Program


Easy

Cu

sto

me

r R

ead

ine

ss

Small Easy

Big Easy

Big Difficult

Small Difficult

Small Total Annual Purchases

No

of

Qu

art

erl

y S

ho

pp

ing

Tri

ps

> 2 Trips > 2 Trips

< 2 Trips < 2 Trips

> MYR500

> MYR500

< MYR500

< MYR500


All Customers

Different Segments Require Different Strategies


Easy

Cu

sto

me

r R

ead

ine

ss

Small Easy

Big Easy

Big Difficult

Small Difficult

Small Total Annual Purchases

> 2 Trips > 2 Trips

< 2 Trips < 2 Trips

> MYR500

> MYR500

< MYR500

< MYR500

MYR20 for 30 days

Email + SMS

MYR50 for 120 days

Direct Mail + SMS

MYR80 for 30 days

Direct Mail + SMS

MYR20 for 90 days

Email

No

of

Qu

art

erl

y S

ho

pp

ing

Tri

ps


“Jeans up your life” Small Belgian fashion chain 30 stores + web shop 30 brands: Esprit, Vero Moda, Diesel, Only, Levi’s, Noë …

Engagement Program from a Retailer in Belgium


Launched Quarterly Newsletter for Loyalty Program Members Generic Personalized & Customized


ZEB Evolution Version 1 (Spring)


ZEB Evolution Version 1


ZEB Evolution Version 2 (Fall)


Segmentation is a Learning Process

Enrichment Validation Evaluation Segmentation


A Side Note

About Data


Personal Data Protection Act 2012

http://www.google.com.sg/url?sa=i&rct=j&q=personal+data+protection+act+singapore&source=images&cd=&cad=rja&docid=4g1weWctA-b3vM&tbnid=V2Df6M5YAsZFFM:&ved=0CAUQjRw&url=http://www.mono-live.com/2012_01_01_archive.html&ei=FBAdUYemKIq9iAfNiIGgDw&bvm=bv.42452523,d.bmk&psig=AFQjCNEkyjCdM5aYhGvIxfmdUV0Kx7jM6g&ust=1360945479760493


Personal Data Protection Act

Consent

Purpose Limitation

Notification

Accuracy Access & Correction

Protection

Retention Limitation

Transfer Limitation

Openness

Do Not Call Registry +

9 Main Obligations of the Personal Data Protection Act



When ?


For More Info

www.pdpc.gov.sg

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The Power of Personalized Engagement to Connect with DigiGen

Personalized engagement is essential to reaching today’s digital generation effectively

Use the principles of segmentation to deliver relevant communications (personalized, customized) & deliver ROMI

Data is OXYGEN – collect it, use it, protect it, respect it, then enjoy the benefits to your bottom line

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Questions?

Lisa Watson Commercial Business Development Manager, HP IPG APJ Chairman, Direct Marketing Association of Singapore

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