Please find attached the full set of slides from the "The future of direct marketing" event on Thursday 2 February 2012. This event was organised by The Direct Marketing Association and LBi. You can see the event converstion at #dmalbi
7. Not all customers are equal
Rank these profiles for Value of the
subscriber
⢠Entered competition to win a holiday on-line 3 years ago â not
clicked since
⢠One-time customer, last bought 2 years ago
⢠Active customer, buys every 4 months
⢠Active customer, buys once a year but top 10% for order value
9. âLifetimeâ alters value
⢠How long to customers stay active for?
⢠What revenue will they generate per year?
⢠Work this out for the whole database
⢠Then for customer segments
⢠That gives a lifetime value (LTV)
⢠What about different acquisition source?
10. Different Metrics, Different Conclusions
⢠Click-through rate
⢠New or repeat visitors
⢠Bounce Rate
⢠Engagement
⢠Micro-conversion
⢠Conversion to Sale
11. âAll of the above is focusing on short term
success.
Even measuring âVisitor Conversion Ratesâ is
akin to declaring success after a one night
stand.
Visit based conversion rates promote
bad marketing behaviour.â
www.kaushik.net
12. How about adding these?
⢠First month sales
⢠6 months sales
⢠3 years sales
13. A Hypothetical Example
Best Average
Customers Customers
Purchases per year 4 2
Average Order Value ÂŁ70 ÂŁ50
Annual Revenue ÂŁ280 ÂŁ100
Gross Profit Margin 10% 10%
Gross Profit ÂŁ28 ÂŁ10
Acquisition Cost ÂŁ8 ÂŁ4
Net Profit ÂŁ20 ÂŁ6
14. A Hypothetical Example Part 2
Best Average
Customers Customers
Life Expectancy 3 years 2 years
Revenue Year 1 ÂŁ280 ÂŁ100
Revenue Year 2 ÂŁ220 ÂŁ60
Revenue Year 3 ÂŁ180 ÂŁ0
Lifetime Revenue ÂŁ680 ÂŁ160
Gross Profit Margin 10% 10%
Lifetime Gross Profit ÂŁ68 ÂŁ16
Acquisition Costs ÂŁ8 ÂŁ4
Lifetime Net Profit ÂŁ60 ÂŁ12
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15. Rethinking the traditional marketing
model: from campaigns to
conversations
James Young, Digital Marketing Manager, Global Marketing,
Sony Ericsson
Pipa Unsworth, Global head of CRM, LBi Group
16. Rethinking the
Click to edit Master
traditional marketing
text styles
model: from
campaigns to
conversations
James Young - Digital Marketing
Click to edit MasterMarketing, Sony
Manager, Global text styles
Ericsson
Pipa Unsworth - Global Head of
CRM, LBi Group
17. SONY ERICSSON BRIEF
⢠Video content to build brand
awareness and drive engagement
⢠Opting out of feature battle
⢠Objectives for Xperia to engage and
create lasting relationships with
influential early adopters
18. LBI'S RESPONSE: XPERIA STUDIO
⢠Xperia Studio was born â âReality
Remadeâ
⢠Create content with phone at the
heart
⢠Wide open brief to collaborators
19. LBIâS RESPONSE
⢠Wide variety of content collaborators;
â Riding in the Moab with 360 cameras
â BMX tricks
â Invisible Universe application
â Hack-a-thon at an interactive art
studio located on a barge
â Surf photography
⢠Launched in September 2011
â XperiaStudio.com
â Xperia Studio Facebook tab
â Twitter
â YouTube
â ePR
22. DRIVING SOCIAL CURRENCY FOR XPERIA STUDIO
DEFINE OUR
STRENGTHEN GIVE ME
COLLECTIVE
MY BOND STATUS
IDENTITY
23. CREATING SOCIAL CURRENCY FOR XPERIA STUDIO CONTENT USING COMUFY
⢠Social CRM platform Comufy is used
to drive social currency for Xperia
Studio
⢠Xperia Studio Facebook users can
sign up to be first to know about new
Xperia Studio content
⢠Users receive personalised newsfeed
posts about new exclusive content,
which can be easily Shared,
Commented or âLikedâ for viral spread
25. XPERIA STUDIO RESULTS â COMUFY REACH
Potential reach 2.6m
Total friends of fans
Friends of fans 245k reached
friends reached through shares
Xperia Studio Fans
10K registered
26. XPERIA STUDIO RESULTS â EMAIL VS. SOCIAL DIRECT MESSAGING
Social Direct average click through: 20% Email average click through: 5.9%*
*Epsilon 2011 Email Trends and Benchmark
27. XPERIA STUDIO IN 2012
⢠Xperia Studio will continue to be a key
part of Sony Ericssonâs social strategy
in 2012
⢠New collaborator content on Xperia
Studio is coming
⢠Social direct messaging will continue
to be used to drive social currency
⢠Sign up here
http://www.facebook.com/sonyericsson
28. About LBi CRM
Click to edit Master
text styles
Click Unsworth
Pipa to edit Master text styles
Global Head of CRM
Pipa.Unsworth@LBi.com
@Peepa
30. Using âbig dataâ to make the big
decisions
Allison Wightman, Head of eBusiness, Virgin Atlantic
31. The Future of Direct Marketing
Using âBIGâ data to drive loyalty
Allison Wightman
Head of eBusiness
Virgin Atlantic Airways
32. How Virgin Atlantic uses its wealth of demographic,
behavioural and attitudinal data to engage customers,
defend its market position and remain relevant in tough
economic times
33. Understating the obvious...
â It is not the best time to be in
the airline business
â Economic decline
â Political uncertainty
â Physical traumas
â The only constant is change
Need for innovative ideas to capture
the travellers imagination
34. Flying Club overview
â 2.7 million members
â Global programme
â US, UK, ROW
â Extensive earning opportunities
â Last year, 23 triggers
â new âWelcome programmeâ based on
the insights from previous activity
â Email postal and SMS
â Working to totally integrate our
relationship with customers where ever
they touch us
â Online, social, retail, airport, kiosk
Whatever the technology, the same rules apply...
Right message to the right customers through the right channel at the right time
36. Business As Usual
â The trigger programme
â Automated customer
communication programme
â Enables us
â to exceed our annual revenue
targets
â improve performance year on
year
â Continues to evolve whilst
retaining relevance to customers
within their Virgin Atlantic lifetime
journey.
37. Never standing still...
â The newest trigger...
â SMS alert 2.5 hours before the
flight
â Encouraging foreign currency
exchange at the airport
â Significant conversion of 5%
â demonstrates the use of timely
communication within the
programme.
â This augments the existing Forex
email trigger campaign
38. Planning and Strategy Recency
0 - 6 Months
24 â 36 Months 6 - 24 Months
Flying Club Segmentation
/ Future
â
5+ Seasonal Flyers Flying High
â 7 groups, 29 types Ex Execs
â recency, frequency and value 3- 4
No. of Flights
Occasional Flyers Fledgling Flyers
â demographic, economic, social 1- 2 Almost Grounded
â wider travelling behaviours
Monitor the health of the 0 Currently Grounded
â
database
â Early warning of negative
behaviours
â Common currency
39. Tactical Activity
â Flight Curve analysis can optimise sale fare relevance
and effectiveness
900 Flight Curves â London Heathrow to Boston (All Cabins)
Median No. of Sector Bookings/Departures
800
Sale fare?
700
600
1 Jul 45% 8Â Sep
500
9 Aug 38% 8 Nov
400
9Â Oct 18%
300
200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sector Bookings Sector Departures
39
40. So whatâs next?
â The future of Direct Marketing at Virgin is bright
â But it will look different to what it is today
â More channels
â More choice
â More integration
â More interaction
â More personal
Big Data will always support the Big decisions of this small but Big brand
43. Enterprise Social Media Management System
ÂŽ Comufy is a registered trademark of Astrapia
Ltd.
44. Social Media Management System
The Comufy Social Suite
Key benefits
Data driven Full insight Proven ROI One-to-one
communicatio into usersâ High click communicatio
n behaviour rate n
Some of our Enterprise clients
Some of our partners
45. Overview
⢠Evolution of Social Media
⢠Opportunities
⢠Build communities and be relevant
⢠Outlook
`
Confidential
55. Social Media Opportunities
A lot of data and a big user base
Compelling offering + Be relevant
⢠Clear value exchange ⢠1:1 communication
⢠Build strong ⢠Engagement
communities ⢠Relevancy
⢠Offer rewards ⢠Personalisation
⢠Dynamic content
⢠Targeted, directÂ
messaging
71. the good, the
bad and the
ugly:
the dawn of the
mobile, social
and incredibly
empowered
consumer:
confidential
72. beware of the
thunder lizard!
business
models are
being radically
transformed
confidential
73.
74. Social Media Spend
Reach $2.1Bn in US
of CEOs surveyed reported that
their top priority for the next five
years was âgetting closer to their
customersâ
Source: Forrester US Interactive Marketing Forecast ,
2011
75. Social media helps us to:
57% be more relevant
to our customers
build better
54% customer
relationships
build awareness
50% and demand for
customer focus is
our products
CMO Council, 2011
the major driver
behind social
$2.1
spentB2011
in
social media as %
of marketing budget
76. Customers want an authentic
conversation and engagement
with buyers âlike themâ
but customers
want to interact 14% of consumers trust
advertisements
with each other,
not just you
90% of consumers trust
peer recommendations
77. social brings new complexities
how do I manage and how do I measure the
who do I engage and how?
scale? impact?
superior design features
of marketers
41% surveyed had no
proven ROI of
social initiatives
78. we help our clients with
a roadmap to get there
REALIZE
your brand
nation
PROVE
the business value
DIRECT
the
ENGAGE
LISTEN conversation
on existing networks
to understand
understand the tap into existing create an owned hub harness the power to transform the overall
social customer social networks drive business customer
impact experience
82. lithium has a full enterprise-class suite
platform manages the social customer experience and the needs of the busines
touch points social apps reputation engine
communitie
engage s forums blogs ideas contests q&a
customers facebook
mobile
ratings surveys video tkb groups
customer intelligence center management tools
manage studio
social social media behavioral api creator
programs monitoring analytics moderation manager
integrate rest api developer nation
83. what makes lithium different?
scientific gaming true
methodolog dynamics saas
(reputation) (data)
y
(consumer web
confidential
dna/research)
84. superfans are the key to success
superfans consist of
<1%
of community
populations
on average
superfans
generate
50%
of all community content
and
85%
of all useful content
confidential
86. imagine a set of experiences that are infused
with the participation of your social customers
confidential
87. imagine this across all digital touch points
community .com social web mobile digital @store
SOCIAL
CUSTOMER
EXPERIENCE
88. we are lithium
delivering social customer
experiences for the
worldâs most iconic brands
founded in 2001
bay area hq, new york, london, zurich, paris
300 customers 30+M registered users
named market leader by forrester, gartner
100% cloud platform
top tier VC funding, including Benchmark &
NEA
confidential
confidential
89. Win the new Kindle with
built-in WiFi!!
Visit www.lithium-sce.com and complete the short
survey*
*Every participant will receive an electronic copy version of âThe
Science of Socialâ featuring the work of Dr Michael Wu. This book
provides readers with a new perspective of understanding their
customers, their customers expectations, behavior, and potential.
confidential
90. Panel Debate: Is the future of
all marketing direct?
⢠James Young, Digital Marketing Manager, Global Marketing,
Sony Ericsson
⢠Pipa Unsworth, Global Head of CRM, LBi Group
⢠Ilicco Elia, Head of Mobile, LBi Group
⢠Allison Wightman, Head of eBusiness, Virgin Atlantic
⢠Philipp Mohr, Chief Executive Officer, Comufy
⢠Warren Buckley, Managing Director Customer Services, BT
⢠Ed Van Siclen, SVP Business Development and Global
Alliances, Lithium