Download Posten WorkPlan - Strategia group

UPU
April 2013
Introduction
• Review Customer and Mailer Survey Data
• Review Direct Mail Economics
• Review Postal Implications and Strategic Options
• Review Business Positions Initiatives and Developments
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Media Choice
•
Harte- Hanks 2000 the
benefits of direct mail
– Consumers are
targeted based on
knowledge
– Messages personalised
and differentiated
– Tailored call to action
drives a specific
response
– Campaigns have
measurable ROI
– Captured responses
add to knowledge
– Creates a one to one
relationship with
consumers
Broadcast
Events & Sponsorship
Advertising
Mass
Outdoor
Directories
Publications
1115%
Direct Mail
Target
Email & SMS
S.E.O
Website
Social Media
Banner & Click3Pay
10 Trends on Consumer Communication Sentiment
Consumer Sentiments
Marketers
Sentiment
1
•
40 out of 50 open direct mail –Brand Relevance Personalisation Coupons
Underestimate
2
•
15 out of 50 happy to receive direct mail and email
Underestimate
3
•
1in 50 happy to receive text/ sms message
Overestimate
4
•
30 out of 50 reject business friend request and 40 out 50 ignore banners
Overestimate
5
•
Preferred Retention Communication 60% email 40% mail &7% phone
6
•
40 out of 50 object to marketing text messages
Underestimate
7
•
Coupons 30 % redeem regularly $2 enough to motivate behaviour
Underestimate
8
•
Retail Cards 60% of population still not subscribed
Overestimate
9
•
25 out of 50 uncomfortable with personal data exposure
Underestimate
10
•
11-20 % of consumer spending motivated by direct promotions
Underestimate
fast.MAP 8th Annual Marketing-GAP Tracker
4
Observations
•
There is a gap between marketers perception and desire to move communication into a
social mobile world and the preference of communication for more traditional
relationship based pushed information
–
–
–
–
–
–
–
–
–
–
•
Consumer-preference and behaviour data needs to be used to maximise restricted budgets.
Consumers’ preference is for mail and email.
A small but growing minority are receptive to mobile and social-network contact and permissionbased contact with these as part of a multi-media campaign can generate improved results
The percentage of those who open direct mail is still high compared to , acceptance of mobile, SMS
and social media
Marketers miss these current facts and push mobile , social media and Twitter.
Customers and prospects can be alienated if these media are used .
Consumers are becoming steadily less willing to divulge personal information
97% redeems coupons but relevance rather than value drive use .
Since 2006, marketers have underestimated the motivational power of coupons.
Targeted promotion has a big impact on consumer spend .
There remains opportunity for Direct Mail to win share in the marketing mix but
knowledge relevance targeting and ROI have to be proven to counteract the digital bias
fast.MAP 8th Annual Marketing-GAP Tracker
5
Economics of Direct Marketing
•
Direct Mail
15%
27%
2%
1%
2%
5%
•
•
ROI is key to campaigns ( driven by product contribution
and conversion rate)
– 1:1 Breakeven
– 3:1 Expected
– 5:1 Great Campaign.
Product price and contribution aligns DM to certain
sectors e.g. Financial Mail Order, Automotive
Conversion rates and cost per sale key to media choice
6%
12%
8%
10%
10%
Financial
Home shopping/Mail order
Charity
Retail
Utilities
Travel/Tourism
Media/Publishing
Government
Manufacturing (FMCG)
Leisure
Restaurant/ Take away
Other sectors
Source: TNS Consumer Panel
Mailer s Future Sentiment on Advertising Spend & Mailing
Customer Acquisition
Customer Retention
Insurance 66%
Mail Order 60%
IT Outsourcing
80%
G
Insurance -70%
Mail Order-90%
Mail Order
30%
Utilities 100%
S
Insurance 34%
D
Decline
Retail 100%
Mail Order
10%
Publishing
100%
Static
Telcom 100%
Banking 100%
Grow
Banking 30%
Decline
Advertising Spend
Insurance 30%
Mail Order 10%
Retail 100%
Static
Banking 70%
Telcom 100%
Publishing 100%
Grow
Source Strategia Survey
Market Direction- Interactive Data Over Multiple Channels
The management of data will be at the heart of future DM. Critical success factors will be single
customer view, data quality, targeting, personalisation & behaviour identification
Customer Identification & Segmentation
Sophistication
Proactive
Behaviour
Driven
Wave 4
Response
Analysis
Real-time
Reactive
Inbound
Create Data
Wave 3
Segmented
Outbound
Mass Mailing
The Customer Interaction Engine
Execute
Wave 2
Customer
Interaction
Engine
Analyse Data
Wave 1
Plan
No List
Customer
Lists
Loyalty
Target
CRM
Customer Knowledge
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Postal Implications and Strategic Options
•
•
•
Mail will have a smaller share in the wider marketing mix
Need to educate market and close gap between receiver sentiment and
mailer intention
Data and targeting of both senders and customers key to improve response
rates
ROI is the critical driver of media choice
•
•
•
•
Lower prices to impact ROI
Enhance relevance of campaigns
Support data management to impact ROI
Integrated direct and interactive marketing media solutions
•
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Potential Postal Positions
Enhanced Delivery
• Develops a range of New Delivery Products
• Focus on efficiency and campaign returns
Market Maker
• Catalyse the development of Direct Marketing Competences in
the economy
• Builds services and infrastructure to support developing
industry and challenge broad cast media
Data and Campaign
Manager
• Develop range of outsourcing services to manage and enhance
the use of data in defining focused high response direct
marketing campaigns
• Develop services to support integrated multi media direct mail
campaigns
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Post – Future Potential Services
Identify
Manage
Create
Manage
Data
Campaign
Campaign
Make
Distribute
Interact
Distribute
Respond
Find
Understand
List Brokerage
& Procurement
Single
Customer
Database
Administration
Unaddressed
Direct Mail
Planning
System
Mailing List
Preparation
Unaddressed
and Leaflets
Permission
Marketing
Reply Coupons
Geo-Marketing
Effective
Measurement
Campaign
Media
Selection
Address
Cleaning &
Verification
Addressed DM
DM Portal
Inbound
Telemarketing
GeoDemographic
Data
Administration
& Processing
Campaign
Planning
Outsourcing
Print On
Demand
Bulk EMessage
Distribution
In-House
Permission
Marketing
Campaign
Response
Design
List
Enhancement
Database
Building &
Warehousing
Campaign
Management
DM Aspects of
Mailroom
Outsourcing
Multi-Channel
Message
Distribution
E-Mail
Campaign
Outsourcing
Campaign
Response
Services
Multi-Channel
Address
Services
Data Mining
Outsourcing
Telemarketing
Campaign
Management
Social
Media
E-Coupons
Promotions/
Incentives
Campaign
Response
Analysis
The Strategia Group
Plan
Produce
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Respond
Retain
Customer
Loyalty Mgt
Acquiring the Competences for Diversification
Direct Marketing will be increasingly data driven and multi- media.Post option is either to seek to dominate an
increasingly price sensitive and at best a relatively decling market or participate in the wider market
Identify
Manage
Create
Manage
Data
Campaign
Campaign
NEW
COMPETENCE
Produce
Distribute
HISTORIC
COMPETENCE
Build
Acquire
Partner
Respond
Bring Development of Multi Media Marketing
Creation of Bring Dialogue through acquisition – a specialised business unit (140 employees) responsible for direct marketing. Key
focus is to create & manage multichannel campaigns across physical, mobile, web, email & social networks
Service
Integrated
Physical
Direct Mail
Comment




Audience analysis, profile report-base., customer acquisition, cross- & up-sell, churn, non-response analysis
Address list provision based on multiple socio-demographic variables
Database cleaning services
Traditional range of addressed and unaddressed physical delivery services
Digital Direct
Marketing
Customer Dialogue
 Across all digital channels - web, email, mobile & social media
 Provision of tools & solutions provided on a SaaS & monthly fee model
 IDA is a web-based tool for customer dialogue in digital channels using SMS, e-DM newsletters, supported by
impact statistics & analysis
 Creating a significant competence to support customers in designing, developing & implementing market
communication strategies
Keytecq
 A partner company specialising in online marketing campaigns
CRM
 Provide CRM portal on a SaaS basis to wide customer base with continuous overview of all contact points
 Integration based on open standards with web & SMS technology with Oracle database platform & Microsoft.
Net for information exchange & integration
 Delivery on a modular basis
Agency
MRM (Marketing Resource Management System)
 Controls marketing activities from planning to implementation & follow-up
 Focus on effective budget control in campaign planning, marketing communication, material
handling/distribution, time to market/reporting
 Wide range of creative production & management services related to multi media advertising content
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Deutsche Post Direct Marketing
Goal is to increase position in the growing internet advertising market. The Nugg acquisition signals continued growth in this area &
the implementation of the E3 strategy - providing marketing solutions using digital channels & cross-media target groups
Service
Integrated
Physical
Direct Mail
Comment
 Traditional range of addressed/unaddressed mail management products & tools. Key innovation is to create
online management of the products & to seek online/offline integration in reply tools & CRM systems
 Maintain Address – verify; online address factory; Info Manager; relocation database, premium address
 Buy Address - business & household across the Germanic speaking countries
Mailing Factory
 Creating direct mail items online including cleansing, buying addresses & printing
 Infopost Manager to help & prepare dialog marketing campaigns
 Prospect service a web based solution to select zip code areas for distribution of unaddressed mail
 XML Postage Optimization of Infopost items within a workflow
Digital Direct
Marketing
Werbemanager (Advertising Manager)
 Campaign manager for SMEs for advertising in local search engines & banner campaigns
 Tool handles campaign planning & optimisation, performance reporting & payment to the marketer
 Pricing model based on a minimum period of 12 weeks with 3 package options (S/M/L) charged monthly
 Search Engine Advertising: 350 clicks €249; 800 clicks €499; 1300 clicks €749
 Ad banner: 20.000 flashes €199; 40.000 flashes €349; 80.000 flashes €599
CRM
Nugg.ag
 Acquisition of the behavioural targeting service provider in online marketing, nugg.ad (Berlin) in July 2010
underlining DPG Strategy 2015 to increase internet marketing & third party services
 Nugg.ag expertise in analysing consumer behaviour online (a market dominated by Google)
DialogManager Online
 Strategic sale ales alliance with Microsoft on CRM Software Service
 Customers buy Dynamics CRM service to realise the complete functions of the CRM solution of Microsoft
combined with postal functionalities (address check, cleansing & postage optimization & delivery)
Agency
 Agency Services
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E-Commerce and Digital Marketing – GSI Marketing Services Division
Comprises 8 specialist companies, employs 1,100 employees across 6 US offices, London & Singapore with revenues $150M ($49M
margin), positioned to capture offline-online shift in marketing & advertising spend
Features
Comment
MBS
 Offers database-driven marketing services & solutions that help marketers innovate, advance & automate the
marketing process for greater return on their marketing investment
PepperJam
 Affiliate marketing network that provides advertisers & publishers with industry leading pay-for-performance
tracking, reporting, communication & payment solutions
Silverlign
Group
 Integrated marketing strategy & design agency
TrueAction
 Full-service digital agency focused on areas of strategy, usability, design, media & photography
Clearsaleing
 Online advertising analytics technology that provides a platform for operational & multi-channel marketing
attribution - an accurate way to measure, compare & optimize profit & ROI of online advertising campaigns
e-Dialog
 Develop & implement targeted e-mail marketing campaigns
Fetch Back
 Fetch Back's solution is designed to put marketing messages in front of lost prospects that have left a web
site in order to attract them back & convert them into customers
M3 Mobile
 Marketing solutions company focused on targeting consumers through the mobile channel in order to raise
brand awareness & drive revenue
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Marketing : Smart Delivery Innovation
Premium Leaflets is an outsourced marketing system which refreshes the leaflet market and
makes it interactive
• Leaflets and Coupons growing but limited value
from a marketing/ ROI perspective
Premium Leaflets Features
• Leaflet
• to find buyers
• Coupons
• to incentivise registration
• Registered relationship• to build permission
• Exclusive E- Coupons
• to build loyalty
• E- Mail offers
• to increase contact and targeting
• Social Media
• to drive interaction
• Managed data pool
• to enable Campaign Analysis
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Conclusions
•
Direct Mail is still valuable but needs to compete with other media and
perception
•
Improving accessibility to direct mail can widen the market
•
Understanding and Improving the economics is a prerequisite critical
features: production and mail costs, conversion rates, cost of sale,
contribution and ROI
•
Post who simply stay only as deliverer of physical items will face at best
relative loss of position and revenue in the advertising market
•
Post can seek positions in wider interactive marketing through developing a
range of services around data, integrated media and interactive response
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Thank You
Adrian King
The Strategia Group
+44 7796 308618
[email protected]
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