Presented by Tim Lyons
IESEG Direct Marketing
Day Four
Day Four Activities
8:10-9:00 Assignment Discussion
9:00-9:15 Break
9:15-10:00 Topic Ten: Future Issues and Innovation in DM
10:00-10:15 Morning Tea
10:15-10:45 DM Strategic Case Study
10:45-12:15 Student Presentations
12.15-12.30 Wrap Up
Looking Back
Reflections on Day Three
Assignment DiscussionTake your Time
Time for a small breakFeel free to go outside...but be back in 15 mins
Topic 10Future Issues and Innovation in DM
Innovation and Future Issues in Direct
Innovation in Direct Marketing
• Creativity
Consider the Starbucks WeChat campaign
• Technology
Consider the utilisation of 4th Generation mobile telephony
• Education
Consider yourselves
• Accessibility
Consider the growing reach of direct marketing
Future Issues in Direct Marketing
• Growth and penetration of the internet
• Globalisation
• Privacy
• New technologies
• Growth of the specialist agency
• Growth of China
Mobility
Blog Exercise 1/Day 4
Detail some of the key issues for the future of DMEmphasis on online
But not exclusively online
Time for morning teaFeel free to go outside...but be back in 15 mins
Case StudyDM in Action
Case Study: L’Oreal
Case Study: Case Study: L’Oreal Beauty Club
A quick overview
What is the L’Oreal Beauty Club?
• A direct communication channel to the heart of L’Oreal’s target audience
• 88,892 members
• A predominantly female community of people interested in fashion and beauty
• community because members provide feedback and meet at events
• larger circulations than Harpers Bazaar (52,290/mth), Vogue (53,571/mth)
The reason for beingBuild stronger
relationships with
consumers
Gain a deeper Gain a deeper understanding understanding of consumerof consumer
Greater loyaltyGreater loyalty More effective More effective marketingmarketing
..and the Internet enables us to effectively manage and exploit large amounts of data..cost effectively.
Overcome Overcome communication cluttercommunication clutter
Secure attentionSecure attention
What do LBC members receive?
• A monthly email newsletter packed with compelling content
• Product & L’Oreal event news
• Fashion and beauty tips
• Exclusive competitions
• Special offers
delivered direct to the subscribers in-box!
• Prizes and offers provided by L’Oreal as well as promotional partners
• who in turn receive exposure for their brands and offers
The Beauty Club process
Database
MSN Messenger Cleo
DollyAWW
MSN/Shopping
HotmailNetwork
Newsletter
Print: editorial mentions in ACP titles
Media on NineMSN network of websites
etc
http://beautyclub.loreal.com.au
Register
Monthly E-mail newsletter
Data in eg competitions, surveys etc
Direct Marketing - IESEG - Tim Lyons
beautyclub.loreal.com.au
20
Example of LBC newsletter
NineMSN Partnership
• Exclusive media partnership with NineMSN to promote the Beauty Club through the NineMSN network of sites – reach over 80% of all Australian internet users.
• Website production & database management undertaken by NineMSN
• Bundled media & production spend to maximise production cost efficiency and ensure media value. As consequence secure over 3x media value from investment.
• Media placed in variety of locations and optimised to maximise traffic to registration website.
• Utilise an exhaustive selection of creative concepts (banners, textlinks, advertorials, email etc) to drive traffic.
• Incorporate ‘viral’ strategies to leverage word of mouth – tell a friend mechanic on website, ‘forward to friend’ competition entry mechanics
• Utilise ACP editorial mentions in key mags (eg Cleo, AWW) to help raise awareness of the club.
Hotmail & MSN Messenger
Hotmail member newsletters
CLEO Beauty
Mini Banner
Content Clip
Dolly ~ Banners
NW
Mini Banner
Special Features
Shopping ~ Health & Beauty
Category PageSpecial Features
May We SuggestLink
Performance assessment
• Performance of club monitored & assessed against a range of KPIs including:
• Unsubscribe rates (<1% monthly unsubscribes)
• Unsolicited member feedback
• Surveys (member satisfaction & endorsement questions)
• Competition entry rates (average 15% of all members enter any specific competition – 3-4 competitions/newsletter)
• Redemption of special offers
KPI Measurement & objectives
Area
AffinityAffinity SalesSales
Me
asu
rem
en
tM
ea
sure
me
nt
MetricMetric
CurrentCurrent
obj.obj.
UnsoliciteUnsolicited d
feedbackfeedback
EmailsEmails
# & tone # & tone of emailsof emails
100/month100/month
150/150/monthmonth
Competition Competition entriesentries
WebsiteWebsite
% members % members entering entering comp. comp.
15%15%
20%20%
UnsubscribUnsubscribeses
WebsiteWebsite
% % unsubscribe/ unsubscribe/
monthmonth
<2%<2%
<2%<2%
Member Member satisfactionsatisfaction
SurveySurvey
(Bi-(Bi-annual)annual)
% v. satisfied % v. satisfied vs not vs not
NANA
70% v 70% v satis, < satis, <
than 20% than 20% notnot
RecommenRecommendationdation
SurveySurvey
(Bi-(Bi-annual)annual)
% % recommend recommend
to friendsto friends
NANA
40%40%
Category Category shareshare
SurveySurvey
(Bi-(Bi-annual)annual)
L’Oreal L’Oreal share of share of category category
purchasespurchases
NANA
5% 5% increaseincrease
Incremental Incremental salessales
CouponsCoupons/ /
promotiopromotionsns
Incremental Incremental revenuerevenue
NANA
$XX,XXX$XX,XXX
Unsolicited feedbackCongratulations on such an informative and wonderful site. I love receiving my newsletter and was thrilled when I received my Shine Delice prize in the mail.
I am confident in using L'oreal products and when my friends ask what makeup I am wearing, I secretly don't want to tell them about the countless miracles I have discovered L‘Oreal products can make happen. But I felt I owed it to them to let them in on what I am surprised not many women know about out there, that my beauty secret weapon was not only your fabulous products but the know-how I gain from the site on how to most effectively use them.
It's like being part of a secret society. My friends and I wish you great success with the site and thank you for making us truly believe we are worth it!
Simonette
Unsolicited FeedbackDear Beauty Club Team,
You guys are doing a fantastic job! As a lover of cosmetics and beauty products (just like your thousands of fans!), I really enjoy receiving your monthly email blasts!
Your site is extremely user friendly, full of great new products and it looks stunning. I also LOVE receiving my prizes when I win (occasionally) your monthly
give-aways. I LOVE L'Oreal Products, both cosmetic & beauty, and I can most certainly thank you for your skin care products. I am turning 30 in a few months, and I can tell you that my skin is sssooo smooth and unaged thanks to L'Oreal
skin care! Everyone comments on how young I look. I am a walking advertisement for you!!!! Also, as a Marketing Manager, I am very impressed with your communications, branding and loyalty campaigns, I think they are great and extremely effective, you definitely stand out from the rest of the cosmetic houses!
Thanks L'Oreal & especially, thank you to the Beauty Club team for your great efforts in communications & prizes, it's a great incentive for us to keep purchasing your
line of products! Well done & keep up the great work!
Warm Regards, Maral
Competitions – Competitions – promotional partnerspromotional partners
Competitions – Competitions – promotional partnerspromotional partners
Motorola – competition to win a top of the line Motorola V70 Motorola – competition to win a top of the line Motorola V70 “fashion phone” valued at $1200“fashion phone” valued at $1200
Peter Alexander – 6 paris of PJs valued at $420Peter Alexander – 6 paris of PJs valued at $420 ACP – chance to win various annual magazine subscriptionsACP – chance to win various annual magazine subscriptions
Fernwood – Receive $100 off any membership fee (exclusive to Fernwood – Receive $100 off any membership fee (exclusive to members)members)
Village Cinemas – free movie passes & exclusive preview Village Cinemas – free movie passes & exclusive preview screenings of Unfaithful & The Banger Sistersscreenings of Unfaithful & The Banger Sisters
Amex – chance to win $1000 cashAmex – chance to win $1000 cash Australian Ballet – dinner and ballet indulgence packageAustralian Ballet – dinner and ballet indulgence package Vic Tourism - Win short break holiday to VIC (including Vic Tourism - Win short break holiday to VIC (including
accommod., car hire, airfares and complimentary dinner).accommod., car hire, airfares and complimentary dinner).
Value of Beauty ClubValue of Beauty Club Direct communication channelDirect communication channel
Developed own, cost effective media channelDeveloped own, cost effective media channel Brings brand to life through personality of communications and physical Brings brand to life through personality of communications and physical
member only eventsmember only events Can segment database on demos, preferences & behavioural measures Can segment database on demos, preferences & behavioural measures
before transmitting emails, to ensure relevance of news/offersbefore transmitting emails, to ensure relevance of news/offers Rapid deployment of news to marketRapid deployment of news to market
Huge value from L’Oreal endorsement by LBC membersHuge value from L’Oreal endorsement by LBC members
Tactical marketing toolTactical marketing tool Counter competitive moves/launchesCounter competitive moves/launches
Drive sales of underperforming products/regionsDrive sales of underperforming products/regions Support non-advertised productsSupport non-advertised products
Valuable resourceValuable resource Cost effective research base and/or recruitment platformCost effective research base and/or recruitment platform
Sampling & demonstration opportunities – key to performance of Sampling & demonstration opportunities – key to performance of categorycategory
Email Marketing
• Easy way to reach current customers
• More than just random correspondence
• But does it work? (think of yesterday’s discussion)
In Summary• Today’s session
• Reflecting on your assignment
• Your Choices
• Working as a group
• Innovation and Future of DM
• Underlying concepts
• Some key elements
• mobility
• Case Study around Web Marketing
• L’Oreal
wrap up
questions?
morning teaFeel free to go outside...but be back in 15mins
PROJECT
THINK ACTKEEP IT DIFFERENT ENGAGE YOUR AUDIENCE
Time for Presentations