ppt - marketing project -- customer profiling techniques-

BACHELOR OF INTERNATIONAL BUSINESS

COURSE : MARKETING PROJECT

SUPERVISOR : PROF. DR. HOLGER LUTTERS

By

Maria Koptseli

Melvis Magne

Hazel Seit Amet

Charlotte Herlin

CUSTOMER PROFILING TECHNIQUES

TRANSPROMO

Discussion Topics

Introduction

-TransPromo & Customer Data

-TransPromo & Generational Considerations

Part A : Status Quo of Profiling 2011

1. Different Types of Profile Targeting

2.Analysis of Loyalty Programs

3. Offline Profiling -Data Collectors

4. Online Profiling -Data Collectors

5.Mobile Targeting

6. Future of Profiling

Part B : Profiling & Legal Issues

Part C : TransPromo @ XEROX

1.Opporunities for TransPromo

2. Profiling Options @ XEROX TransPromo

3.Conclusions

3 of 27 pages

Customer Profiling

Targeted Advertising

Increased Response

Profiling is the recording & classification of behaviors. A customer profile is a data set on the typical customer for a product or service

Targeted advertisements are placed so, as to reach customers based on their profile

Get close to potential customers

INTRODUCTION

Maria Koptseli | 24-01-2012 4 of 27 pages

TRANSPROMO & TARGETING

• Targeting is the link that makes Transpromo

successful

• TransPromo documents combine customer

relationship management, data mining technology

with variable data, printing and location intelligence

• >40% of direct marketers have tools to optimize

the targeting of their direct mail campaigns

• 93.6 % have seen an improvement in response due

targeting


Maria Koptseli | 24-01-20126 of 27 pages

TRANSPROMO & GENERATIONAL CONSIDERATIONS

• Multichannel delivery :

personalised TransPromo documents can be

delivered via traditional mail, through email or SMS

text messaging

Consider the target audience when deciding how is

best to communicate with them via TransPromo

• Cross media tools improve customer

experience & measure the impact the of

TransPromo: personalized TransPromo documents,

can be extended to include the use of cross-media

tools like pURLs (personal URLs) and microsites

• The challenge lies in targeting customers with

relevant information without infringing on their

privacy

Part A Status quo of profiling 2011

Melvis Magne | 24-01-2012 7 of 27 pages

DEMOGRAPHIC

& GEOGRAPHIC

PROFILE TARGETING

Age

Income

Gender

Ethnicity

Education level

Marital status

Location

1. TYPES OF PROFILE TARGETING

Melvis Magne| 24-01-2012 8 of 27 pages

PSYCHOLOGICAL

& LIFESTYLE

PROFILE TARGETING

Psychological motivations

Hobbies

Habits

Interests

Purchasing behavior

Attitudes




CONTEXTUAL

TARGETING

“We know what you read”

This targeting method fits the content of a

specific webpage with the ads displayed, that

way, that those ads will appear only on

relevant pages

Advantages

-highly effective

-large available format : text, image, video

-most familiar contextual ads

CT leaders Google AdWords, Microsoft

AdCenter, Yahoo Publisher



BEHAVIORAL

& SEARCH

TARGETING

“We know what you are searching online”

Cookie based browsing history

A behind the scenes software dialog takes

place between Web browser and Web server,

that can reveal a number of pieces of

information :

- IP address,

- type of browser,

- computer type & its operating

system,

- PC unique identifiers, called cookies

Search history targeting

Paying attention to what the user has

searched and delivering ads based on search

history



COST-EFFECTIVE

TARGETING

“We know where the best results are”

Look at the response generated and target

the best “area” to advertise

The response is based on:

- clicks

- leads

- ROI

- direct responses

Real time optimization based on :

- demographic profile targeting

- behavioral targeting

- location

- contextual targeting


Demographics

Geography

Category Penetration

Visit Frequency&

Trend

Spending HabitsCategory Affinity

Label Penetration

Permanent Profile

Purchase TrendTown class, town area, store, distance from store

Average monthly visit

Average monthly spends(Total spend/#of months from enrollement )

Number of items bought /# of items in the category

Sales penetration

Months on loyalty program

Miles gathered

Bought which type of item

Visiting single or multiple stores

Age, marital status, occupation

2.ANALYSIS OF LOYALTY PROGRAMS -For the exchange of personal information users get discounts, miles and bonus!


Sales penetration

3.OFFLINE PROFILING -DATA COLLECTORS

TARGET GROUP

& MARKET INFORMATION

PROFILE TARGETING

WWW.SCHOBER.DE

WWW.NIELSEN.COM

-demographic profile targeting

- geographic profile targeting

- behavioral profile targeting

- psychographic profile targeting

Schober is the leading provider of target group

and market information in Europe

Nielsen is the leading provider in the world

Arvato Infoscore is a merge of the services of a credit agency & a direct marketing companywww.arvato.com


Germany, Austria, Switzerland and Hungary

http://www.schober.de/

http://www.nielsen.com/

http://www.arvato.com/

3.OFFLINE PROFILING -DATA COLLECTORS

WWW.CREDITREFORM.COM

Schufa is a source of credit and financial

information supplied by business and contract

partners

Creditreform : financial information on over

13 million public & private companies from 41

European countries and China

Information may only be sent to or obtained from

the Schufa with the permission of the customer

"Schufa clause" is a part of any sales or contract

WWW.SCHUFA.DE

Maria Koptseli| 24-01-2012 15 of 27 pages

CREDIT & FINANCIAL

PROFILE TARGETING

http://www.creditreform.com/

http://www.schufa.de/

Ads Networks Social Media Networks

4.ONLINE PROFILING –DATA COLLECTORS

Demographics,Location, Behavioral Targeting, Interests Targeting

Social Network Analysis

Demographics, Location,Contextual Targeting (CT),Behavioral Targeting (BT)

1,000 interest categories

Demographic,Location,CT, BT based on pc, mobile data & sites

Demographic,Location,CT, BT based on pc, mobile data & sites

10 PB data warehouse

ContextualTargeting ,Social Network Analysis,

Influence Analysis

Demographics,Location, Behavioral Targeting

Double Click

AdWords

AdSense

Right Media

Yahoo Publisher


Microsoft AdCenter

Twitalyzer

TouchGraphTouchGraph

5.MOBILE TARGETING

ASL targeting

-Age, sex and location are known & accurate

-Ads that are relevant to customer needs

Time targeting

Social network analysis targeting

Personal info targeting

-estimated income based on your invoice values

-increased response by combining more criteria

Google Android monopoly in behavioral targeting

-ejects third-party cookies

-difficult to track the user


6. THE FUTURE OF TARGETING


PREDICTIVE BEHAVIORAL TARGETING

SOCIAL NETWORK ANALYSIS TARGETING

ADAPTIVE TARGETING

Targeting based on predictions about customers’

interests and future behavior

Social network analysis targeting will increasingly play a

role in how to target consumers - social interactions

reflect interests

Neural network algorithms, similar to the ones credit

card companies use to spot fraud, will be utilized to

adapt consumer targets to the changing market

conditions

Part BProfiling & Legal Issues

1. PROTECTING PRIVACY

European Union Privacy Regulation

• Limited collection of personal data

• Data must be up-to-date and destroyed when no longer needed

• Consent for sharing data is required

• Sensitive data (e.g. religion) can only be provided with consent

• Notify consumers about the collection and intended purpose of data


Source : EU Data Protection Directive

2. PROTECTING PRIVACY

§ 15 Telemediengesetz (German code on media law, ‘TMG’)

Service providers are only entitled to collect and use personal data of a user

if this is necessary in order to secure the usability of telemedia and its

respective invoicing (usage data)

In 2011, US Federal Trade Commission proposed a "Do Not

Track Me Online" mechanism to allow internet users to opt-out of

behavioral targetingMelvis Magne| 24-01-2012 21 of 27 pages

Part C Consumer Profiling @ XEROX

1. OPPORTUNITIES FOR TRANSPROMO

Other

Education Bills/Statements

Mortage Bills/Statements

Credit Card Bills/Statements

Health are Bills/Statements

Utility Bills/Statements

Insurance Bills/Statements

Taxation Documents

15.6%

29.6%

38.2%

46.1%

48.4%

50.9%

53.3%

57,9%

8.9%

14.8%

14.9%

21.9%

17.3%

23.3%

18.5%

14.2%

7.6%

14.9%

15.3%

23.2%

16.7%

19.5%

19.2%

20.1%

Via Mail Via Internet Both


Source : www.infotrends.com

Utility Bills/Statements

Health Care Bills/Statements

http://www.infotrends.com/


2. TRANSPROMO & 1:1 MARKETING

Data management

Data mining analytics

Customer relationship management

-buying history

-product preferences

-demographics

-length of relationship

Xerox Global Services through its Customer

Communications Service are not limited to print,

offering multichannel output such as web, email

and SMS delivery

Source : www.fujixerox-transpromo.com

http://www.fujixerox-transpromo.com/

OPPORTUNITIES

FOR XEROX

TRANSPROMO

• Integrate customer data from

-customer sales history

-customer relationship management system

-marketing and sales resources

-customer credit history

• Data mining software

-adaptive targeting

-predictive targeting

• Look for opportunities to link the statement

to other initiatives, such as URLs, pURLs,

promotion codes and loyalty programs

• Multichannel delivery to

-solicit additional customer information

“If you have the right data, you have the ability to

implement a powerful TransPromo program”

3.CONCLUSIONS


[email protected]

Maria Koptseli

Melvis Magne

QUESTIONS

[email protected]

mailto:[email protected]

mailto:[email protected]

Thank you very much for your attention!

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