etail presentation '11-new wave of segmentation
DESCRIPTION
Persona marketing...it works!TRANSCRIPT
© Copyright 2010 Hewlett-Packard Development Company, L.P. 1© Copyright 2010 Hewlett-Packard Development Company, L.P.
Anita John & Karen ZhangFebruary 22, 2011
NEW WAVE OF SEGMENTATION
© Copyright 2010 Hewlett-Packard Development Company, L.P. 2
SEGMENTATION AS WE KNOW IT
Based on what they’ve bought
Based on what they’ve done
Based on what they might do
© Copyright 2010 Hewlett-Packard Development Company, L.P. 3
HPDIRECT STRATEGIC VISIONObjective: Create meaningful relationship with ALL existing HP customers across all touch points that maximizes repeat purchase and loyalty
= Customers for
Life!Ignite EngageRe-
engage
Build Relevance
• Market based on “who” and “what” they want
1
Our PillarsChannel Effectiveness• Maximize ROI by channel by customer
2
Data-driven Marketing
• Persona based marketing built on rich & predictive customer insights3
One Customer Voice• HP customer no matter the origin
4
© Copyright 2010 Hewlett-Packard Development Company, L.P. 4
STRUGGLE #1: DOING THE RIGHT THINGRepeat
Purchase
Prospect
New Customer
Active Inactive
Highly Active
Loyalty Winback1st Time
Purchase1st Time Visitor
Acquisition
Programs
Online Advertisin
g
Tell-a-friend/Referral Programs (Twitter, FB, Product Reviews, etc)
New Customer Programs
Repeat / Upsell / X-Sell
Promos
Best Customer Programs
Re-activation Program
Partnerships
Direct Mail/ Catalog
EmailSocial Media
Mobile SEO/SEM Print Contextual Affiliates
LearnRefine
Test
Test
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STRUGGLE #2: RFM/RFC NOT ENOUGH WHEN…MATURE MARKET NEW PRODUCTS HOMOGENOUS
CUSTOMER VIEW
PCs – change in memory, style, hard drive
Printers –AIO, wireless
What audience do you tap into?
Purchase behavior similar
Demographics are few and far between to allow for distinction
Value based (ie-best) works, but can fatigue and leave majority of file untouched
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COME ON…THERE HAS TO BE A BETTER WAY360 VIEW OF THE
CUSTOMERDIFFERENTIATION ACTIONABLE
360
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Take away: it’s a journey, not a task
Business Needs Customer Intelligence Go- To-Market Execution
Persona V.1: Demographics
Persona V.2: Product Feature
Persona V.3: Life Value
A
B
C
1. Customer Core Value
2. Behavioral Differences
3. Actionable
Direct Mail
Web
Outbound
UNDERSTANDING THE NEEDObjective: Resonate with customer core value at a deeper level
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8
Attitudinal Measurements Customer Segments
Technology Readiness:
role of technology in a person’s life
Life value / purpose :
role of technology in a person’s life
PERSONASIdentify customer core values
© Copyright 2010 Hewlett-Packard Development Company, L.P. 9
Online purchase transaction
Demo/life style+
Web browsing
Marketing Campaign
Mini data mart
Product Registration Detail
Purchase behavior
Early adopter behavior vs. followers
Velocity of purchase -Time lag- (for repeat
buyers)
Repeat behavior
Attitudinal Segment Customer segments based on survey result
Campaign Response data
Program and Channel
influences
Site behavior (visits, pages,
duration,)
Velocity of purchase
(time from intent to purchase)
Product category pages visited
Demographic
Attitudinal (interest variables)
Life stage (movers, family,
retirement, etc)
Zip Level details
Income range
Occupation
360 VIEWCreated a data mart for overall analysis
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Fewer Product Pages
Interactive: 1. Tendency is toward
comparison shopping
2. Less Likely to use search
Higher tendency toward repeat purchase
Segm
ent
1
•Young, success driven
individuals with a rich social
life
• Technology is a great
companion that helps them
stay in touch with their social
network.
Highest high performance PC penetration
Least Photo smart
Printers
Repeat Customer
Purchase Behavior
Less likely to be small home office owners
Demo/LifestyleSOHO
Marketing response
Web Browsing
BEHAVIORAL DIFFERENCESUnderstand how attitudinal segments relate to behavior
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X =
F(x) = Supervised Classification algorithms
y, segment
x
x
.
.
.
x
Total Universe
i
n
Go-To-Market Execution
Direct Mail
Web
Outbound
Go-To-Market Execution
Direct Mail
Web
Outbound
ACTIONABLEExtrapolate to Total Universe
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TESTING STRATEGYCampaign Level
Persona 1 Persona 2 Persona 3
Phase 1 – Tested creative and product – prove it works Back end analysis conducted with a hold out group
Phase 2 - Multivariate – Offer, pricings, product, creative messaging
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LEARNINGS
– Validated the segmentation: good predictor of customer behavior, response and value.• Need to continue to iterate and perfect
– Use of segments help drive more qualified traffic• Lift in conversion was as high as 56%*
• Lift in rev/send was as high as 46%*
– Automation and templates were critical to execution
*All results were at a 90% confidence level.
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NEXT STEPSConstant Journey
– Integrate into all channels (display, social, DM)
– Expand analytics & revamp forecast models (customer-driven)
– Create personalized web, call center and order processing experience
– Build out a robust automated & dynamic content management platform
– Multi-offer engine
– Iterate on segment definitions (refresh every other year)
Customer segments
© Copyright 2010 Hewlett-Packard Development Company, L.P. 15
TAKEAWAYS
– Gain senior management sponsorship
– Your database and analytics group are your right hand
– Link attitudinal and behavior at the deepest level• Customer’s needs may change, but their core values stay the same
– Consider this an iterative process• Test at a campaign and customer level overtime
• Think of customers as multi-dimensional
– Make sure you have the infrastructure to support personas in the long-term