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					 data strategy agenda personalised marketing




Using
data
for an
individual
experience
                                                      A
‘Show me you know me’ is                                              s marketers have realised, the more
                                                                      you can personalise the offer,
                                                                                                            Using graphics, images and type specially
                                                                                                            commissioned for the edition, each subscriber
the new customer mantra,                                              content or service, the better the
                                                                      retention rate and profitability.
                                                                                                            was able to click through from an email to the
                                                                                                            DIY cover site.
but demonstrating that                                                Consumers have also become used
                                                                      to the idea that they can have what
                                                                                                               According to Wallpaper* editor-in-chief Tony
                                                                                                            Chambers: “We always aim to exceed
knowledge is a major                                   they want, the way they want it – whether that’s
                                                       an online news feed or a Subway sandwich.
                                                                                                            expectations and Handmade certainly did that.”
                                                                                                            Once subscribers had created their own unique
marketing challenge.                                      For print-based marketing, this presents
                                                       something of a challenge, since the whole model
                                                                                                            cover – including a choice from nine different
                                                                                                            Rolex ads for the back – individual copies were
David Reed finds out how                               is based around economies of scale, which is, of
                                                       course, only achievable by mass-producing the
                                                                                                            then digitally printed (using the reader’s choice
                                                                                                            of seven paper stocks) and mailed.
brands are successfully                                same item. That approach does not sit well with
                                                       the new consumer’s view of themselves as a
                                                                                                               A particularly neat aspect of the project was
                                                                                                            recognising that subscribers would not want
adding the personal touch                              unique individual.
                                                          As Wallpaper* magazine discovered in
                                                                                                            their personalised cover spoiled by the mailing
                                                                                                            label which needed to be added for delivery
                                                       August, some careful planning and use of new         purposes. As this is printed on to the cover to be
                                                       printing solutions can narrow the gap between        readable through a polywrapper, Wallpaper*
                                                       customer expectations of a one-to-one experience     included a sticker saying “The Handmade Issue”
                                                       and delivery of a one-to-many product.               which could be placed over the address details
                                                          For its ‘Handmade’ issue, the title developed     and made part of the finished design.
                                                       an online design app that gave subscribers the          More than 2,000 subscribers took the
                                                       chance to put together their own unique cover.       opportunity to create their own cover using the

48 | Data Strategy | January 2011 | marketingweek.co.uk/datastrategy
                                                                              data strategy agenda personalised marketing




                                                    c
                                                    The increased results that can be achieved by
                                                    combining personalised digital print are being
                                                    overlooked and sometimes not understood
                                                    Julia Cole, HP



                                                    could really participate and design their own             An initial 10,000 personalised items of direct
                                                    product label. We felt this would elevate interest     mail were sent out in March, with a further 18,000
                                                    and generate a new awareness of the brand.”            sent up to mid-May. As well as the pre-registrant’s
                                                        Remarkably, 3.5 million unique users visited       badge, personalised creative and content, each
                                                    the website – equivalent to half the country’s         pack contained a personalised URL that triggered
                                                    population – and 102,078 discrete designs were         28,000 unique web pages with content oriented
                                                    submitted. Across four weeks, 400 winning              around that visitor’s interests. Personalised
                                                    designs were printed and shipped.                      URLs (PURLs) also allowed IIR to track response
                                                        Which raises the question of why more              to the campaign.
                                                    campaigns are not putting data to work in this            “The campaign achieved an impressive 10%
                                                    way. Julia Cole, UK and Ireland marketing              response rate and the pre-registrant-to-attendee
                                                    manager for Indigo Digital Press at HP, believes       conversion rate increased to 53% from 46% at
                                                    there is one explanation: “The demographic in          the 2006 show,” says Waller. “This 7% increase
                                                    the industry has changed. The purchase of              clearly demonstrates the effectiveness of this
                                                    marketing print has moved from being the               campaign. However, even before Ipex 2010
                                                    role of the print buyer to that of the marketer.
                                                    The focus has shifted more to online
                                                    communications, and the increased results that
                                                    can be achieved by combining high-quality,              case study
                                                    personalised digital print are being overlooked
                                                    and sometimes not understood.”                         Countrywide Farmers is a chain of 47 stores
                                                        Personalisation is powerful because it plays on    serving the rural community with everything
                                                    the customer’s desire to be recognised by the          from farming and equestrian supplies
                                                    brand. Achieving this even without holding             through to country clothing and Christmas
                                                    personal information is a major step forward. But      gifts. Although it has not been using
                                                    it is not the whole game – timing plays a key part.    personalised communications, it has used
                                                    As online retailers know, striking while a potential   digital print to improve its in-store
                                                    customer is showing interest pays dividends.           promotional merchandising.
                                                        Print has long been the spiritual home of             “Our product range has become varied and
                                                    personalisation with most direct mail using at         complex. We identified variable data printing
                                                    least some variable data elements, even if it is       as the most efficient way to manage price
                                                    just the inclusion of a name in letter text. More      and promotional information,” says Rebecca
                                                    recently, the creative edge has been around            Barningham, group marketing manager.
                                                    using new generation digital printing to include          The company has segmented the retail
                                                    personalised messages in images. A recent              estate into four types based on size and
app and now own a totally personalised issue of     Boden catalogue varied the cover copy line             location, from smaller, local outlets through
the magazine. The publisher then used random        “Jonny loves...” followed by the recipient’s name      to the largest, rural stores. For each store,
selections from the same design elements for the    in a heart, for example.                               Countrywide needs to provide accurate
remaining 20,000 issues that month.                     As the people who have been driving the            point-of-sale material on a rolling basis. This
   “It was even more successful than we             personalised print market forwards, you                used to involve a lot of wastage from
anticipated,” says publishing director Gord Ray.    might expect print services providers to be            producing the same materials for all stores.
“Now that we know we can do it successfully,        cynical about such techniques. IIR Exhibitions            Working with SP Group, which has
we’re looking at how we can do something            UK discovered this was not true when it                developed a specialised point-of-sale solution
bigger and better next time. And advertisers can    ran a personalised, cross-media marketing              using HP Indigo digital presses and
see that we’ve got a great track record of          campaign aimed at UK pre-registrants for               workflow, the retailer can now generate
success now.”                                       the IPEX 2010 international print and media            store-specific packs of material that are
   As print finds ways to personalise its output,   trade show.                                            printed, cut and sorted down to specific walk
packaged goods might be expected to look on             The campaign segmented registered visitors         routes through each outlet. All the retailer
with envy. Yet Coca-Cola Israel used the same       by five market sectors and highlighted relevant        has to do is provide a spreadsheet of the
digital printing technology to run a promotional    features at the show, while also using an              product, price and promotional information.
campaign, called Refresh Your Sprite, giving        individualised creative. Materials were sent via          More efficient promotions have been one
consumers in Israel the chance to design a          print, email and online using the multichannel         result, not least by providing more detailed
personalised can and win a case of their design     software solution DirectSmile CrossMedia.              product information and benefits as well as
if selected.                                            “During my 13 years’ experience of organising      on-label branding. “One children’s clothing
   “Our idea was to involve consumers in the        exhibitions, I have never attempted such a             range grew sales by 28% compared with 2009
brand campaign in a wholly new way,” says           sophisticated, personalised marketing initiative to    just because of the additional information we
Merav Dvori, category marketing manager at          drive pre-registrants to a show,” says Nick Craig      were able to display,” says Barningham.
Coca-Cola Israel. “For the first time, customers    Waller, marketing director, IIR Exhibitions UK.

                                                                                           marketingweek.co.uk/datastrategy | January 2011 | Data Strategy | 49
data strategy agenda personalised marketing




c
                                                                                                               viewpoint
                                                                                                                             Matt Dooley, director of
We have been aligning our                                                                                                    guest marketing,
                                                                                                                             InterContinental Hotels
communications to right-time                                                                                                 Group

messages and trigger emails
                                                                                                               We use email a lot for communicating with
Matt Dooley, InterContinental Hotels Group
                                                                                                               customers. It is the least expensive way, as
                                                                                                               a result there is quite an appetite for it in
                                                                                                               the organisation. In an organisation as
   took place, we could see from the tracked             them into a basket, before going off somewhere        complex as ours – we have eight different
PURL visits that interest in the campaign was            else without buying.”                                 brands, four regions, multiple sub-brands –
extremely high. After receiving the direct mail             Using this technique, those non-convertors are     there are more requests than we have
piece, pre-registrants were referring back to            identified and promoted to. “It is a way of           capacity to deliver.
their PURL again and again and some even                 saying, if I show you the products again, aren’t         The email function sits in guest
contacted me to say how pleased they were.”              they even more appealing?” she says. (Read            marketing, while the web team is under a
   Many marketers are trying to make the                 more about Karen Millen’s e-commerce strategy         separate vice-president for relationship
customer experience as individual as possible,           in Innovation Update, page 52.)                       marketing. Those are our two main
even during the early stages of the buying cycle            But there are other obstacles even in              outbound communications streams. We
when little might be known about the consumer.           companies that have highly data-driven                have a formal programme of email that
Women’s fashion retailer Karen Millen has been           marketing at their heart. Sky wants to give its       breaks down on two lines. We still live to
using a technique called personalised                    10 million customers the best experience it can,      some extent in the batch world, for
retargeting to drive up conversion rates from            which includes using personal information to          example regular e-statements for our
website visitors and reduce its level of                 show it knows and understands them.                   Priority Club and brand newsletters. What
abandoned shopping baskets online.                          “We have got the data to support 10 million        we’ve done in the past 18 months is to
   “Everybody has the experience of going                customers seeing 10 million different                 align those communications more with
shopping without buying anything. When your              communications,” says Simon Kaffel, data and          right-time messages and trigger emails
friends ask if you saw something you liked, you          analysis director, marketing strategy, at BSkyB.      based on opportunities.
say yes and go back and buy it,” says Emma               “Where we are unable to meet that need is around         When a customer has reached a key
Bonar, e-commerce manager for the women’s                getting sign-off for creative and legal clearance.”   stage in their lifecycle, such as earning a
fashion retailer. “It’s like playing pinball with your      Several years ago the media company was            free night or having jumped a hurdle to get
customers and using that subliminal desire.”             preparing to send out its monthly subscriber          double points over a given period, we can
   Working with myThings, which operates the             magazine with a segmented, rather than fully          ping an email without waiting for a batch.
retargeting system, the brand is able to treat           personalised letter, using conditional content        We are working to identify customers that
potential customers with a higher degree of              based on a number of data variables. “We had          are in those windows so we can trigger an
personalisation than usual. When somebody                got the data to do it, and we had the mechanics       outbound email. We are also using triggers
visits the Karen Millen website, they are tagged         in place around the printing. What we were            around customer visits by sending an
and the data associated with their visit                 unable to cope with was the sign-off and              email three days prior to their stay and five
aggregated into a database.                              approval of each variation of paragraph A with        days after.
   Specific areas of a site, product lines or even       paragraph B and paragraph G – there were over            We want to strike a balance in the
items that have been put into a basket are               2,000 different variations.”                          personalisation, particularly in product
recorded. The system then crunches the data so              Even at a segment level, each of those             marketing emails. There are elements that
that personalised ads can be served via banners          combinations would require individual approval.       the customer would expect to be factual
across ad networks highlighting products and             As a result, Sky now uses tens of variations,         because we get information about their
offers that are likely to be of interest.                rather than thousands. Customers may demand it,       stay. We work hard to make it seem
   “Everybody has an issue with basket                   marketers may want to do it and production may        relevant and what they would expect to
abandonment,” says Bonar. “We’ve never been              be able to deliver it, but one-to-one marketing is    see at that time. We also use those
able to identify where people went after they            still limited by the need to ensure that, as well     opportunities to promote specific services
have been looking at items on our site or putting        as being decent, fair and honest, it is legal. G      around a hotel visit, such as driving
                                                                                                               people towards eating in our restaurants
                                                                                                               rather than going out. That is all upside
                                                                                                               for the business.
 Triggers leading to a purchase                                                                                   We want to be sensitive not to come off
                                                                                                               as Big Brother. The trend in digital
Personalised recommendations are a powerful              websites, which 88% of consumers said they            marketing is towards taking all the data
trigger of purchasing, especially if they arrive at      had used to research or complete a purchase.          that can be collected on when somebody
the right time. Some 63% of consumers said the             The study found that consumers are hungry           visits you – or the website – and
reason they bought something recommended                 for content: 91% look for product descriptions        incorporating that into messages. But
to them by a retailer was because “it came at            and pricing, 74% seek user ratings and                there is a fine line between having a
the right time in my decision-making                     reviews, and 61% want expert reviews.                 relationship and being creepy.
process”. Having the right price was                       Commenting on the findings, Patti Freeman              When we think about the data we have
mentioned by 60% and being relevant by 57%.              Evans, vice-president research director at            and the customer database where we collect
   The findings come from a survey                       Forrester, notes that, “not all retailers are set     information, we don’t bring in anything that
commissioned to Forrester Consulting by                  up to do personalisation, but companies who           might be sensitive, like viewing certain pay
RichRelevance and Bazaarvoice that looked                do recommendations have helped take that              TV channels.
into the behaviour of online shoppers. It found          burden off their shoulders. They have created            Our goal is to find target segments and
that retailers have a strong opportunity to              the algorithms to help retailers so they don’t        market around things that offer us a
influence buying, not least through their own            have to do it themselves.”                            commercial opportunity.


50 | Data Strategy | January 2011 | marketingweek.co.uk/datastrategy

				
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