TransPromo A Behavioral Marketing Enabler Applications Track TR510882
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1 TransPromo A Behavioral Marketing Enabler Applications Track TR Kevin J. Klein Director Production Intelligence Consulting Pitney Bowes Document Messaging Technologies 1
2 Perspective In the new economy of conscience consumption, understanding our customers and prospects is more vital to growth than ever Do no harm The goal is to have customers say you thought of me 2
3 What is TransPromo? TransPromo is the INTELLIGENT combination of transactional customer communications and RELEVANT marketing to DRIVE cross selling, upselling, customer education, loyalty and cost savings TransPromo HAS BECOME A REALITY due to: VDP (Variable Data Printing) technology plus Cost effective quality color production technology plus Customer specific data (Client Analytics, Location Intelligence, Inherent Document Intelligence) 3
4 Why TransPromo Works Transactional mail is a highly trusted medium The average consumer is exposed to 3,000 advertising messages/day vs. 12 statements/month 95%+ of transactional mail is opened consumers spend between 1 and 3 minutes reading transactional Documents Current customers are more profitable a 5% increase revenue can equal 50% in profit Only 7% of direct mailings are read and 8.5% of prospect list s are opened *source: InfoTrends, The TransPromo Revolution, August
5 As Relevancy Increases, So Do Profits Factors that make statements relevant: PROFITS Content that Relates to my Needs Based on my Preferences Recognize Extent of Relationship Highlight Local Resources Accuracy of Information Timeliness of Offers You know me RELEVANCE 5
6 Relevance-Customer Profiling Profiles indicate the degree to which a given cluster finds the client s offer attractive relative to the general population Once defined, profiles are extremely useful in identifying areas of opportunity for crosssell and prospecting 6
7 Measuring Propensity to Respond Names only Static full color Personalization & full colour Database intelligence & localization 0% 100% 200% 300% 400% 500% Source: Personalized and Database Printing, Romano / Boudy 7
8 Shift in Marketing Focus Marketer s 12-month budget projections Don t know Make no changes 6% 2% 21% Reduce marketing budgets Overall remains unchanged but with reallocation of resources 55% 15% Increase marketing budgets Source: DMA Quarterly Business Review Majority expect to shift money within fixed budgets 8
9 Behavioral Marketing Driven by customer data Recency Monetary Frequency Holy trinity of behavioral data points traditionally used by direct marketers Fast forward to current day and add: Ability to analyze sequence of purchases leading up to a specific action taken by a consumer, which can lead to stronger re-marketing efforts Ability, on the fly, to determine whether a consumer prefers to transact via phone, mail or web Ability to analyze open rates, open times and reader preferences of communications 9
10 Shift in Marketing Focus Marketing spend analysis 300 Internet Marketing - DR Index (100=2004 Spending Level) TransPromo Channel? Insert Media - DR TV - DR Other - DR Direct Mail - DR Telephone Mktg - DR Magazine - DR Radio - DR Source: The Power of Direct Marketing Newspaper - DR 10
11 Implementation Strategies Customer Data IT, External Digital Assets/Copy Marketing/Agency Business Rules Marketers Upstream Downstream Transactional Data Composition Printing Finishing Mailing Delivery 11
12 Relevant B2C TransPromo Example-Maureen Hubbard Viso Gold has sold space to the New England Bed and Breakfast Association. They have available rooms for the fall season. They wish to attract adults with available credit and good account status (no past due amount). Maureen lives at 103 Lexington Road in York, PA and fits in the Empty Nest East PSYTE cluster. She has a $0.00 past due amount and $8, in available credit. Maureen, colorful offer inside! 12
13 Relevant B2C TransPromo Offers and Products are Relevant to Business Type and Size Document Attributes Define the Relationship i.e. Addressed to Company Department Function Individual Location Provides Some Insight Brands (i.e. Bottle Water) Proximity (i.e. Cleaning Services) Affluence of Community (Real Estate) 13
14 Customer Communication Management Customer Intelligence > Production Intelligence > Channel Intelligence Communication Planning Data Integration Analytics Location Intelligence Address Quality Life Events Document Creation/Composition Print Stream Engineering Output Management Printing Multi-Channel Delivery Finishing Sortation Storage/Archive Call Center Tracking Response Metrics Closed loop Data to Increase Relevance and RO(M)I 14
15 Every connection is a new opportunity 15
16 Thank You Kevin J. Klein Director Production Intelligence Consulting
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