1. The New Direct Marketing in a Multi-Channel World
Insurance Direct Marketing Forum
Wayne Rosenberger – Harte-Hanks
September 15, 2008

2. The Old Paradigm vs. The New
Media optimization
Branded direct Creative
Off-line database
Measurement by media
Post mortem analytics
Offers driven by models
New
Media integration
Brand driven by the Web
Real time data
Aggregated measurement
Real time analytics
Offers driven by interaction

3. Multichannel Marketing Vision
Today
Goal
Campaign
Performance
Business
Impact
Customer-Centric
Audience
Multichannel
Persona 1
Persona 2
Persona 3
Cross-Channel Optimization
Relevant Product
Meet Indv. Needs & Interests
Right Time & Channel
Campaign-Centric
Strategy Shift
Audience
Channel
Overall Audience
Generic Content
Drive RX
Campaign
Performance
Our approach to digital marketing is steeped in a broader multi-channel vision where we help our clients move to a customer-centric messaging strategy.
We can spend more time going through this one on one
This diagram depicts this strategic shift where (you see in the diagram on the top left) "Today" most companies are in a campaign-centric mind set where they are sending mostly generic content with limited personalization or customization (and although they might do some segmentation the messages commonly aren’t relevant to the customer beyond basic demographic data - and the messages are driven by the primary goal of selling a product). This approach results in tracking performance in terms of campaign effectiveness such as response rates for DM, opens and clicks for , units of impressions for ad campaigns, etc. rather than tracking effectiveness in terms of business objectives related to acquiring or retaining customers or creating ongoing relationships that the customer would find valuable.
We help our clients move from this campaign-centric and product-centric approach (on the top left diagram) to a customer-centric
approach (top right diagram). By putting the customer at the center of what you do we begin to use data based on behavior, self-reported preferences,
purchases, etc. to create deeper segmentation or personas....(personas are what we refer to as “segmentation plus”… It’s taking segmentation by ‘o-graphics’ such as: demographic, geographic, psychographic, etc. data and adding to it behavioral data – what people do, what they click on, what they search, etc. as well as preference data. This enables multi-channel optimization, sending more personalized and relevant messages, offering up more relevant offers and in short, sending the right message to the right person at the right time through their preferred channel (be it , call center, cell phone, iPod, PDA, mail etc).
This also allows our clients to begin tracking performance in term of business impact rather than campaign results alone (see blue arrow point up on far right). Business impact = How we influence behavior and increase conversion – aligned to tangible business objectives such as such as how to increase in-store traffic, drive online sales or improve customer retention. The idea is to help our clients get to know their customers so well they can eventually move beyond measuring success by episodic campaign data and start to understand the customer’s experience and how to get them engaged in all stages of the customer lifecycle.
The good news is… the means of getting there is at the heart of Harte-Hanks core capabilities. Harte-Hanks is a data-based and direct marketing company. We specialize in all of behind the scenes data analytics, segmentation, data integration, data cleansing, data management that's need to make this multichannel vision possible.
The end goal is to apply data to influence strategy, segmentation, messaging, etc. and to leverage multiple channels to drive more relevant one-to-one dialogues with your valued customers – To engage customers in a new way... On their terms.
Means of Getting There
Data Integration
Behaviors
Descriptors
Ongoing Program Optimization With Analytics
User Research & Segmentation

4. The New Components Search Rich Media Behavioral Advertising
Contextual Advertising
Blogs
RSS
Podcasting
Videocasting
Mobile Messaging
Widgets
Web 2.0 & Social Networking
Digital and Multi-channel marketing is a key to optimizing the customer experience and here are a few tactics driving this change… 4

5. Web As A Selling Tool Preference-Driven Message
Existing Customer
New Customer
Dynamic Content Messaging Engine
Let’s start with preference-driven messaging
I’m sure you do some of this today. Sending the right message at the right time can make such a big difference in campaign success.
We are big advocates of the use of preference centers as well as other tools to gather data points about your prospects and customers.
That data can come into the Postfuture database from any number of sources and then can be used to segment your list or dynamically render content in an outbound message.
Preference
Profiles
Preference Center
Subscription Form

6. Web As A Selling Tool Behavior-Driven Message Model
Trigger
personalized
abandoned cart
message
Your Website
Transactional Messaging Engine
Web
Analytics
We can also trigger messaging based on website behavior. Postfuture has integration points with many of the most popular web analytics products like Coremetrics or Omniture.
(step through chart quickly)
Behavior
Profiles
Lifecycle Scoring
abandoned
cart

7. Dialog Messaging Communicator
Combine customer preferences, behaviors and marketing rules to control message content and timing
Identify tactics based on customer lifecycle stages
Link messages to online and offline behavior using business rules
Trigger sequences to connect lifecycle stages

8. Horizon (BCBS New Jersey) Paid Search Case Study

9. Business Situation
Horizon BlueCross Blue Shield is the leading insurer in the state of New Jersey in the Individual Under 65 market
Existing programs included direct mail and print as lead generation mechanisms
Captive inside and outside sales groups closed all sales
A marketing database supports all marketing activity
Results from existing lead generation programs had flattened out
Need for additional channels to generate leads and sales

10. What’s Really New About This?
Instant engagement with customer
At the moment and the place they’ve decided they need to buy
Perfect mix of location and timing
Location is right in from of them
Timing is all the time, any time, every time, whenever they’re ready

11. Search Engine Marketing Program Description
Paid search through Google and Yahoo
Data capture landing pages
Distraction-free, competition-free
Low bandwidth demand
Instant lead transfer to inside and outside sales

12. Search Engine Marketing Methodology
Buy keywords that ensure top 3 positioning
Write compelling ads, and test them
Track visitors through to conversion
Use landing pages that will help complete the sale
Optimize based on conversion results
Testing reveals which word/creative/placement selections work best for a given product, service or campaign.
Optimize campaigns based on conversion results.
Remember that some marketers have thousands of words; some may only have ten.
Never point visitors to the home page unless the campaign is a “brand” experience with no conversion metric.

13. Many Channels – Same Result

14. The Search Result

15. Additional Channel Direct Mail

16. Landing and Data Capture Page

17. E-mail / Blackberry Instant Message to Sales

18. Results – A Multichannel Success
The search engine project exceeded projections
Equivalent of mailing 146,400 pieces
CPL is equivalent to mail
CPL is <$20.00
Conversion rate to sales is exceeds all other media
No degradation of direct mail results

19. Where Else This Might Lead
Greater integration of online and offline media
Traditional media used to push searches and landing page visits
Online enrollment application
Self-directed
Assisted by inside sales
New markets
Seniors
Adult children of seniors
Member services
Retention

20. Customer Centricity – Automotive Industry

21. Our Objectives
Provide the dealer network with a best-in-class, national direct marketing program that builds dealer-customer relationships
Drive customer pay revenue
More multi-channel integration
Increase speed to market
Generate greater return on investment
Optimize dealer enrollment and participation
Continually reinvent program offerings 21

22. Marketing Communications
Provides Dealers with greater access to create “intelligent” multi-channel communications, reduce dealer cost, and increase overall response
Response
Channels
Segment
Programs
Direct Mail
Call Center (Outbound)
Automated Voice Messaging
Text/Mobile
Dealer
Call Center
Website
Personalized Websites
New
Best
Opportunity
At Risk
Winback
Maintain
Timed-Based Communications
Triggered Communications
Event Communications
Automated
Behavior-Based
Condition-Based
Follow-up
Sales
Accessories
Events
Newsletters 22

23. Communication Plan – Built in Solution
Automated/Loyalty Campaigns
Service Reminder – vehicle based
Relationship Marketing – customer based
On Demand Communications
Express Campaigns
Custom Campaigns
Triggered Communications
Immediate, triggered responses based on response/non-response to above campaigns
Confirmations

24. Personalization, Relevancy, Response
Data-driven communications based on customer insights, activities and placement in the customer lifestage
Personalization Engine
Segmentation
Demographics
Vehicle
New Owner
Gender
Make
Profile based (single, Young family, etc.)
Age
Model
Best Customer
Income
Year
Defection Risk
Presence of Children
Vehicle Lifestage
Regional
Offer
New
Snow, Heat, Seasonal
No Offer
Mid-stage
Behavior Driven
Reward
In-market
Service Elsewhere
Incentive
Referral Program
Vehicle Sales
Channel
Own
Lease
Postal Mail
Used
Phone 24

25. Personalization, Relevancy, Response
Data-driven trigger based programs that integrate within a lifecycle communication framework
Vehicle Driven
Behavior Driven
Handraiser
Customer Relationship
Mileage
Timing
Change of Service Venue
Service Experience
Survey Response
Observed- Data Driven
Offline
Online
In Person
Anniversary
Safe Driving Tips for Teens
Child Safety
Birthday Cards 25

26. New Customer Lifestage26

27. Mid-Cycle Customer Lifestage27

28. Back In-Market Customer Lifestage28

29. Complimentary Download
Point of View Paper