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Personalized Multichannel Marketing
 in a Digital World

 Fuji Xerox Singapore
 September 23, 2010
fanatic@f5dc.com   +65 9111 6849       WWW.F5DC.COM
Agenda
      Session                                                             Title                              Duration
      A                                                                   Multichannel Marketing             60 minutes
                                                                          Break                              10 minutes
      B                                                                   1:1 Experience                     60 minutes
                                                                          Break                              10 minutes
      C                                                                   Measurement                        60 minutes
                                                                          Break                              10 minutes
      D                                                                   Hands-on exercise                  30 minutes
      E                                                                   Workshop Summary                   10 minutes



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Measurement
    Why measure?
    Marketing old school: The Sales Funnel
    How to calculate your Return on Investment (ROI)?
    What is Return on Marketing Investments (ROMI)?
    How to use the ROI Calculator / Planner to get information to
     aid decision-making
    How to determine success of marketing campaigns efforts via
     measurement?
    How to maximize the returns on your marketing campaigns? 
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The beauty of digital
                    DIGITAL
THE BIGGEST MARKETING OPPORTUNITY ?
                                                  EVERY MARKETER’S DREAM




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TRACKING                                                                         LIVE INFORMATION




                                                                      REACTION
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195
                                                      TOOLS
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SO WHAT ?

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Wrong focus

                            WRONG
                                      FOCUS


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Reports…Reports…Reports…DATA




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“Helpful but Incomplete;
                                                    Interesting but not useful;
                                                          Waste of time”
 Q : Please rate the effectiveness of each social media measurement tool.
                 Poll of Social Media                                         Freebuzz monitoring                                      Tracking Tweeter click           Scientific Control



       87.8% 87.1% 81.6% 79.9%
                Fans, connection, effectiveness                           (tweedeck, FB stream search, Google Alert)                                                               Survey


                               Paid Buzz Monitoring                                                      Free Analytics software                                Paid Analytic software



                      77.4%                                                                           71.9%                                                     66.3%
                           Nielsen Buzz Metrics, Cymphony, Radian 6                                     Google analytics, Quantcast, Youtube analytics                  Omniture




 Source: MarketingProf Fall 2009 Survey
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Why Measure ?


           Is the                                                             Is the            What can I do
         campaign                                                           campaign             better next
         efficient ?                                                       profitable ?            time ?
Metrics                                                                   ROMI                  Learnings
Target
Objective
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All numbers
   should
contribute
   to sales
 But how ?
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Traditional process of measurement
                                                                           Bottom up approach based on tactic
                                                                           Ie : Banner gives number
                                                  Report                   Provides numbers
                                                                           Non linked to business
                                                                           Non related to sales
                                         Metrics                           Non directly usable


                                       Tactic in
                                        place
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The right approach
                                                                           Top Bottom based on strategy
                                             Strategy
                                                                           Define what needs to be measured
                                                                           How we should implement it
                                          objectives                       Define target / objectives…..
                                                                           Feed the various agencies to create tactics
                                               Metrics

                                                         Tactics




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N                                                 U                      M         B         E      R       S


                                                                                       How to apply learning to
                                        Objectives
                                                                                              IMPROVE
                                                       Why ?

                                                       Next ?
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Measurement
     is
  Planned
  Leads to
 conclusion
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Home work
                                   Scared
Time / Budget
                Knowledge
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I do not care if
 we have zero
 person going
  to our event
  but I want to
     know it
Azar Azhib CMO Microsoft APAC
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Measurement
     is
   Phase
  specifics.
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Measurement
     is
   Tactic
  specifics.
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What you should get from measuring
                                                                             Raw Data

                                                                          Relative metrics

                                                                              Depths

                                                                              Insights
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Level 1 : raw data
                                                                                           Raw Data
                                         High number of data that are just a static representation of event
                       Click Stream                                                   Overlay information              Source
         # visits                                                          Clicks                           Link to traffic generations
         # page views                                                      Related information              Visitors….
         Bounce rate
         Rate


                                               Raw data is a necessary step where most companies will stop
                                                                 Does not bring added value
                                                       Difficult to draw information and next steps


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Level 2 : relative Metrics
                                                                                           Relative Metrics
                                                                          Give value to numbers and raw data
                         Time based                                                        Context based               Cost based
      YoY comparison                                                       Attachment rate                    Link to traffic generations
      Period comparison                                                                                        Visitors….
      Weekly….



                                                   Relative metrics takes lots of time to compile
                                                             Non systematic approach
                                          Based on numbers, you need to evaluate which one makes sense


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Level 3 : Depth
                                                                                                  Depth
                                                                                           “Social Media effect”
                 First time visitor                                                        Repeated visitor                 Promoter
      Raw information                                                      Registered ?                            Outsider information
      Relatives




           Depth elements help you to quantify the relative success of your campaign, website
           You do not measure the same way a first time visit compared to frequent visitors
                           because you do not expect the same from them


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Level 4 : Insights
                                                                                                  Insights
                                                          Compilation + Presentation + Highlights + Call to Action
                  Compilation                                                     Presentation               Highlights          Call to Action
      Raw information                                                        Style of content           What do you want     Learning
      Relative                                                               Audience                    to show ?            What to improve
      Depth                                                                  Time                       Make it simple
                                                                              Deliverables


         Insights is the most critical phase. If you do not succeed to deliver your message, all
                                      your past work is reduced to 0



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Measure the right thing
                                                                          CPP                                  CPC




                                                4% click rate delivery                                  Page rank guarantee
                                                 DOES NOT EXIST                                          DOES NOT EXIST

                                                                                Sales Impact / Brand Impact
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DATA
REPORTS
INSIGHTS
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Master the
                                                                                             process
                                                                                                to get
                                                                                            to proper
                                                                                         measurement
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First, learn
   how to
  calculate
 basic sales
    funnel
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Sales funnel basics

 Action                               %                                   #        % to
                                                                                   target
 Send eDM                             100                                 10 000   100%

 Receive                              80%                                 8 000    80%

 Open                                 30%                                 2 400    30%

 Click                                50%                                 1 200    15%

 Purchase                             10%                                 120      1.5%




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Sales funnel basics

 Action                               %                                   #        % to
                                                                                   target
 Send eDM                             100                                 10 000   100%

 Receive                              80%                                 8 000    80%

 Open                                 30%                                 2 400    30%

 Click                                50%                                 1 200    15%

 Purchase                             10%                                 120      1.5%


    Always calculate to the “received
         number”, not the sent

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Plus additional margin

 Action                               %                                   #        % to             Action      Unit         X     Total
                                                                                   target
                                                                                                    Margin      10           120   $1200
 Send eDM                             100                                 10 000   100%
                                                                                                    Margin of your product
 Receive                              80%                                 8 000    80%

 Open                                 30%                                 2 400    30%
                                                                                                    Always calculate the extra margin,
                                                                                                             not the revenue
 Click                                50%                                 1 200    15%

 Purchase                             10%                                 120      1.5%




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Plus Campaign cost

 Action                               %                                   #        % to             Action          Unit    X     Total
                                                                                   target
                                                                                                    Margin          10      120   $1200
 Send eDM                             100                                 10 000   100%
                                                                                                    Campaign cost   $5000
 Receive                              80%                                 8 000    80%
                                                                                                    Campaign ROI                  -$3800
 Open                                 30%                                 2 400    30%

 Click                                50%                                 1 200    15%                     Campaign cost based on Margin
 Purchase                             10%                                 120      1.5%




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Cost acquistion

 Action                               %                                   #        % to             Action           Unit    X     Total
                                                                                   target
                                                                                                    Margin           10      120   $1200
 Send eDM                             100                                 10 000   100%
                                                                                                    Campaign cost    $5000
 Receive                              80%                                 8 000    80%
                                                                                                    Campaign ROI                   -$3800
 Open                                 30%                                 2 400    30%
                                                                                                    Cost per Sales                 $41.67
 Click                                50%                                 1 200    15%

 Purchase                             10%                                 120      1.5%


                                                                                                           It cost $41.67 per customer


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Campaign conclusion
 What                                 Numbers                             Explanation

 Open                                 30%                                 Message is very relevant , they are interested

 Click                                50%                                 The offer is attractive, they want to know more

 Purchase                             10%                                 Extremely low number

 ROI                                  -$3.8K                              Campaign not profitable



 What went wrong ? : Offer is wrong
 Option 1                             Try to sell wrong product to wrong audience

 Option 2                             The product is really bad

 Option 3                             They did not get it

 Option 4                             Something went wrong in purchase cycle (technical)
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Another conclusion
 What                                 Numbers                             Explanation

 Open                                 30%                                 Message is very relevant , they are interested

 Click                                50%                                 The offer is attractive, they want to know more

 Purchase                             10%                                 Extremely low number

 ROI                                  -$3.8K                              Campaign not profitable

 Cost/sale                            $41.67

 %                                    1.5%                                Not bad actually

 2nd option : campaign too expensive
 Option 1                             Spend too much money to acquire customer

                                      Reducing cost will increase ROI, reduce cost / sales


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Conclusion
      Only proper sales                                                    Importance of
       funnel leads to                                                     measurement
          conclusion
                                                                            Importance of
                                                                          understanding the
                                                                              numbers

                                                                            Need to have
                                                                           context to draw
                                                                           proper analysis

        Only by getting metrics / strategy /
     context / you will maximize your marketing
                      spendings
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Then
              apply to
                real
             campaign
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Updated marketing sales funnel




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Planning campaign is the only way to succeed
                                                                                    Consumer needs
                                                                                        Strategy
               Where are                                                                                        What do I expect
             consumer today.                                                                                    from consumers
              Starting point                                                                                       at the end ?

                                                                          What are the steps I expect from him ?
           Key opportunity from each Media : Include or not                                                Marketing objectives
           How each elements brings me closer to my goal                                                   Tactics and response time
                                                                                                            Promotional Modules
                                                                                                            Information category

           Each phase has its own objective
           Measurement of each steps, how many goes from A to B
           As detailed as possible
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Step 1.1 – Definition of Process Phases




   Online banner

                          Social Media

                                                                                         Website
                                                                               DataBase       Conversion
                                                                               acquisition                 Sales   eDM
                                                                                                offer

                                                                                                                    Social Media
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Defining objectives :
  sales Funnel
                                                                      Each Step

                                                                What to do ?

                                                        What Measure ?

             Simulate Campaign before it
                        starts
        Tactics
        Campaign Modules
        Media
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Defining objectives
                                                          Step 4                             Buy


                                                          Step 3                        What to do ?        What Measure ?


                                                          Step 2                        What to do ?        What Measure ?


                                                          Step 1                        What to do ?        What Measure ?

                                                                          What are the steps I expect from him ?
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Concrete example
    I want to recruit 5.5k members or fans
    How much money do I need ?


 Cost                                                 Media                                  Conversion   Number   Final
                                                                                                                   Objective
 $5.000k                                              Internal DB         10.000             30%          3.000    3.000
 $5.000k                                              Banner Ad           30.000             5%           1.500    1.500
 $50.000k                                             TV Ad               100.000            1%           1.000    1.000
 $60.000k                                                                 140.000 fans                             5.500 fans



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In our example
                                                     25 x times more people




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Calculate
    value of
  responsive
     group
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How to measure which group is more
  responsive ?
                                                                                                                        Example, among all the person

                                                                          sub segmentation + INDEX
                                                                                                                           we targeted, it seems that
                                                                                                                         female from 25-35 are more
                                                                                                                                  responsive
                                                                                                      Step 1 : Start from the base
                                                                                                      Step 2 : Calculate their distribution
                                                                                                      Step 3 : How many of them acted ?
                                                                                                      Step 4 : Acting distribution
                  Age group ?                                                                         Step 5 : Comparison of distribution , not
                                    Sex                                                                values
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Compare
         campaign
         efficiency

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Introduction to ROMI
                          Planning - Preparation                                                  Campaign       Follow up activity

       AUDIENCE                                                           ENGAGE                    CTA              SALES

   How do you get me to do what you                                                                Activity            Sales
         would like me to do ?                                                            the right audience ?



 How much does it cost per tactic to                                                     Total cost of the       How much sales
      bring me to your CTA                                                                    activity           does it generate


© F5DC 2010 all rights limited, reproduction forbidden without approval            WWW.F5DC.COM
Long Term ROMI example
                    Contacted                                                 Value of Incremental
                                                                                                                          Initial Contact
                                                                          Brand and Product Awareness
                    Prospects
                                                                              Value of Incremental
                    Visit Website                                             Product Awareness                    Initial Response

                                                                              Value of Incremental
                    Apply for Seminar                                          Product Evaluation               Initial Action

                                                                                    Product
                    Participate in Seminar                                         Education                 End Action
                                                                                     Sales
                                                                                    Target
                    Sales Leads                                                                          Value of Incremental Sales Lead
                                                                                                         Acquisition
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Applying Value to ROMI
      1.  Expected Sales Conversion Rate

      2.  Comparison of various activities to drive web-traffic (cost per visit)

      3.  Value of Acquired Data (Active Commitment)

      4.  Value of Participation in promotional Activities

      5.  Value of Viral Distribution Volume (Free Contacts)

      6.  Value of Exposure in Social Networks (Free Contacts)

      7.  Downloads, Uploads, etc. (Active Engagement)
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ROMI Example – Event
                                       Total Campaign Costs                    $ 100,000

                                       Total Event Participants                   10,000

                                       Total Incremental Sales               $ 2,000,000

                                       Sales Margin                                  60%

                                       Incremental Margin                    $ 1,200,000

                                       Sales ROMI                         = $ 2,000,000 : $ 100,000   = 20

                                       Margin ROMI                        = $ 1,200,000 : $ 100,000   = 12


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ROMI Example – By Channel
                                                                          by Direct Mail   by Online Banner    by Print AD

   Cost for Event Invitation                                                  $ 10,000             $ 2,000       $ 20,000

   Event Participants                                                            3,000               1,000          6,000

   Event Cost (Participants)                                                  $ 20,400             $ 6,800       $ 40,800

   Total Costs                                                               $ 30,400             $ 8,800       $ 60,800

   Incremental Sales                                                         $ 600,000          $ 200,000     $ 1,200,000

   Incremental Margin                                                       $ 360,000           $ 120,000      $ 720,000

   Sales ROMI                                                                      19.7               22.7           19.7

   Margin ROMI                                                                     11.8               13.6           11.8

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Key Performance Indicators - Campaign                 
                                                            Total Contacted Targets                                   5,840       ROMI 1
                                                            Total Contacts                                           15,869
                                                            Average Contacts per Customer                                2.7
                                                                                                                               




                                                            Unique Site Visitors Identified                             677
                                                            Response Rate - Targets to Site Visitors                  11.6%
                                                            Response Rate - Contacts to Site Visitors                  4.3%
                                                            Total Unique Visitors                                     1,968       ROMI 3
                                                                                                                               




                                                            Total Event Reservation                                     189
                                                            Response Rate - Site Visitors to Reservations             27.9%
                                                            Response Rate - Targets to Reservations                    3.2%
                                                                                                                               




                                                            Total Invitations sent                                      135
                                                            Total invited Event Participants                             89
                                                            Total "walk-in"                                              59
                                                            "Walk-in" Rate                                            39.9%
                                                            Total "No-Show"                                              46
                                                            "No-Show" Rate                                            34.1%
                                                            Total Event Participants                                    148       ROMI 4
                                                                                                                               




                                                            Key Performance Indicators - Qualified Sales Leads
                                                            Sales Leads - Qualified as HOT (80% Sales Chance)            11
                                                            Sales Leads - Qualified as Warm (60% Sales Chance)            8
                                                            Total Generated and Qualified Sales Leads                    19       ROMI 5
                                                                                                                               




                                                            Conversion Rate Participants to Sales Leads              12.84%
                                                                                                                               




                                                            Total Campaign Costs                                     30,000
                                                            Costs per Qualified Sales Lead                            1,579

© F5DC 2010 all rights limited, reproduction forbidden without approval                         WWW.F5DC.COM
Philips LED - Campaign Metrics                                                                               China              Module                                                                              Update:        2010-03-31
         Generating Site Traffic                                                                                                       Consumer Profile
                                          Voucher Management                                Campaign Response                          Male Consumers
         Road Shows
                                         Created   Distributed                  Registered     Free Sign-up           Pre-Order        < 20 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     20 - 29 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     30 - 39 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     40 - 49 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     > 49 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     unknown age                          8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     Total                                8,888    100%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     Female Consumers
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     < 20 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     20 - 29 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     30 - 39 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     40 - 49 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     > 49 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     unknown age                          8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     Total                                8,888    100%
         Subtotal                          8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%
                                                                                                                                       Total Acquired Consumers
                                                   Delivered                                                            Unique Site    < 20 Years                           8,888    1.0%
         Other Traffic Drivers                                      Click Through        CTR          Site Visits
                                                Impressions                                                                 Visitors   20 - 29 Years                        8,888    1.0%
         Philips.Com                             888,888,888              888,888,888   1.00%       888,888,888         888,888,888    30 - 39 Years                        8,888    1.0%
         Media 1                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    40 - 49 Years                        8,888    1.0%
         Media 2                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    > 49 Years                           8,888    1.0%
         Media 3                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    unknown age OR gender                8,888    1.0%
         Media 4                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Total                                8,888    100%
         Media 5                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888
         Media 6                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Family Profile
         Media 7                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Single                               8,888    1.0%
         Media 8                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Married - No Children                8,888    1.0%
         Media 9                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Married - Yes Children               8,888    1.0%
         Media 10                                888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Others or unknown                    8,888    1.0%
         Subtotal                                888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Total                                8,888    100%

                                                     Site Traffic                               Response Mechanics
         Total Site Traffic                 Unique Visitors        Site Visits            Free Sign-up       Pre-Order
                                                                                                                                       Campaign Key Performance Indicators
         Road Shows                            888,888,888        888,888,888              888,888,888    888,888,888          1.0%    Total Pre-Ordered LED Products                                                                           888,888
         Other Traffic Drivers                 888,888,888        888,888,888              888,888,888    888,888,888          1.0%    Total Redemption Vouchers Sent                                                                           888,888
         Total Traffic                         888,888,888        888,888,888              888,888,888    888,888,888          1.0%    Total Vouchers Redeemed for Purchase at Retail-POS                                                       888,888
                                                                                                                                       Redemption Rate                                                                                           1.00%

         Engagement and Sales Conversion                                                                                               Total Unique Site Visitors                                                                               888,888
                                            Sent       Delivered                 Opened           Site Visits         Pre-Order        Total Site Visits                                                                                        888,888
         Sorry E-Mail                    888,888     888,888   1.0%          888,888    1.0%    888,888     1.0%    888,888   1.0%     Estimated Site Re-Visitation Rate                                                                         1.00%

         Monthly Newsletter 1            888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors)                    888,888     1.00%
         Monthly Newsletter 2            888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors)               888,888     1.00%
         Monthly Newsletter 3            888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors)             888,888     1.00%
         Total Newsletter                888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Completed Consumer Surveys (Percentage based on Total Unique Site Visitors)                   888,888     1.00%

         Reminder E-Mail                 888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Total Campaign Costs - EUR                                                                               888,888
                                                                                                                                       Total Number of Sales                                                                                    888,888
         Stock Available E-Mail          888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Average Net-Profit per Sales - EUR                                                                       888,888
         Total Engagement                888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Return on Invest (ROI) / Return on Promotion (ROP)                                                        1.00%


© F5DC 2010 all rights limited, reproduction forbidden without approval                                                                WWW.F5DC.COM
What matters
                                                     IS NOT                                  IS
         The cost of your How much extra
            campaign          sales it
                             generates

© F5DC 2010 all rights limited, reproduction forbidden without approval       WWW.F5DC.COM
STUDY CASE
                SIMULATION PHASE
                                                                                         WWW.F5DC.COM

                ROI CALCULATOR
© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
http://www.fujixerox-transpromo.com

© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
HANDS-ON EXERCISE
                                                                          WWW.F5DC.COM




© F5DC 2010 all rights limited, reproduction forbidden without approval
Touch point Analysis
    Map your customer experience journey
      •  Delivery mechanism, channel , promise from brand
    Identify the various contact point
      •  Organize, check for message consistency, channel linkages
    Touch point functions
      •  Does it fulfill the objectives?
    Determine the elements to measure
      •  You can measure almost everything, be selective

© F5DC 2010 all rights limited, reproduction forbidden without approval
Thanks.
Do you have any question ?


        http://bit.ly/aEmARR       f5dc   gregbirge
fanatic@f5dc.com   +65 9111 6849                      WWW.F5DC.COM

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Personalized multichannel in digital world_C

  • 1. Personalized Multichannel Marketing in a Digital World Fuji Xerox Singapore September 23, 2010 fanatic@f5dc.com +65 9111 6849 WWW.F5DC.COM
  • 2. Agenda Session Title Duration A Multichannel Marketing 60 minutes Break 10 minutes B 1:1 Experience 60 minutes Break 10 minutes C Measurement 60 minutes Break 10 minutes D Hands-on exercise 30 minutes E Workshop Summary 10 minutes © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 3. Measurement   Why measure?   Marketing old school: The Sales Funnel   How to calculate your Return on Investment (ROI)?   What is Return on Marketing Investments (ROMI)?   How to use the ROI Calculator / Planner to get information to aid decision-making   How to determine success of marketing campaigns efforts via measurement?   How to maximize the returns on your marketing campaigns?  © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 4. The beauty of digital DIGITAL THE BIGGEST MARKETING OPPORTUNITY ? EVERY MARKETER’S DREAM © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 5. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 6. TRACKING LIVE INFORMATION REACTION © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 7. © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 8. 195 TOOLS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 9. SO WHAT ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 10. Wrong focus WRONG FOCUS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 11. Reports…Reports…Reports…DATA © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 12. “Helpful but Incomplete; Interesting but not useful; Waste of time” Q : Please rate the effectiveness of each social media measurement tool. Poll of Social Media Freebuzz monitoring Tracking Tweeter click Scientific Control 87.8% 87.1% 81.6% 79.9% Fans, connection, effectiveness (tweedeck, FB stream search, Google Alert) Survey Paid Buzz Monitoring Free Analytics software Paid Analytic software 77.4% 71.9% 66.3% Nielsen Buzz Metrics, Cymphony, Radian 6 Google analytics, Quantcast, Youtube analytics Omniture Source: MarketingProf Fall 2009 Survey © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 13. Why Measure ? Is the Is the What can I do campaign campaign better next efficient ? profitable ? time ? Metrics ROMI Learnings Target Objective © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 14. All numbers should contribute to sales But how ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 15. Traditional process of measurement  Bottom up approach based on tactic  Ie : Banner gives number Report  Provides numbers  Non linked to business  Non related to sales Metrics  Non directly usable Tactic in place © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 16. The right approach  Top Bottom based on strategy Strategy  Define what needs to be measured  How we should implement it objectives  Define target / objectives…..  Feed the various agencies to create tactics Metrics Tactics © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 17. N U M B E R S How to apply learning to Objectives IMPROVE Why ? Next ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 18. Measurement is Planned Leads to conclusion © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 19. Home work Scared Time / Budget Knowledge © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 20. I do not care if we have zero person going to our event but I want to know it Azar Azhib CMO Microsoft APAC © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 21. Measurement is Phase specifics. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 22. Measurement is Tactic specifics. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 23. What you should get from measuring Raw Data Relative metrics Depths Insights © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 24. Level 1 : raw data Raw Data High number of data that are just a static representation of event Click Stream Overlay information Source   # visits   Clicks   Link to traffic generations   # page views   Related information   Visitors….   Bounce rate   Rate Raw data is a necessary step where most companies will stop Does not bring added value Difficult to draw information and next steps © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 25. Level 2 : relative Metrics Relative Metrics Give value to numbers and raw data Time based Context based Cost based   YoY comparison   Attachment rate   Link to traffic generations   Period comparison   Visitors….   Weekly…. Relative metrics takes lots of time to compile Non systematic approach Based on numbers, you need to evaluate which one makes sense © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 26. Level 3 : Depth Depth “Social Media effect” First time visitor Repeated visitor Promoter   Raw information   Registered ?   Outsider information   Relatives Depth elements help you to quantify the relative success of your campaign, website You do not measure the same way a first time visit compared to frequent visitors because you do not expect the same from them © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 27. Level 4 : Insights Insights Compilation + Presentation + Highlights + Call to Action Compilation Presentation Highlights Call to Action   Raw information   Style of content   What do you want   Learning   Relative   Audience to show ?   What to improve   Depth   Time   Make it simple   Deliverables Insights is the most critical phase. If you do not succeed to deliver your message, all your past work is reduced to 0 © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 28. Measure the right thing CPP CPC 4% click rate delivery Page rank guarantee DOES NOT EXIST DOES NOT EXIST Sales Impact / Brand Impact © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 29. DATA REPORTS INSIGHTS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 30. Master the process to get to proper measurement © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 31. First, learn how to calculate basic sales funnel © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 32. Sales funnel basics Action % # % to target Send eDM 100 10 000 100% Receive 80% 8 000 80% Open 30% 2 400 30% Click 50% 1 200 15% Purchase 10% 120 1.5% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 33. Sales funnel basics Action % # % to target Send eDM 100 10 000 100% Receive 80% 8 000 80% Open 30% 2 400 30% Click 50% 1 200 15% Purchase 10% 120 1.5% Always calculate to the “received number”, not the sent © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 34. Plus additional margin Action % # % to Action Unit X Total target Margin 10 120 $1200 Send eDM 100 10 000 100% Margin of your product Receive 80% 8 000 80% Open 30% 2 400 30% Always calculate the extra margin, not the revenue Click 50% 1 200 15% Purchase 10% 120 1.5% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 35. Plus Campaign cost Action % # % to Action Unit X Total target Margin 10 120 $1200 Send eDM 100 10 000 100% Campaign cost $5000 Receive 80% 8 000 80% Campaign ROI -$3800 Open 30% 2 400 30% Click 50% 1 200 15% Campaign cost based on Margin Purchase 10% 120 1.5% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 36. Cost acquistion Action % # % to Action Unit X Total target Margin 10 120 $1200 Send eDM 100 10 000 100% Campaign cost $5000 Receive 80% 8 000 80% Campaign ROI -$3800 Open 30% 2 400 30% Cost per Sales $41.67 Click 50% 1 200 15% Purchase 10% 120 1.5% It cost $41.67 per customer © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 37. Campaign conclusion What Numbers Explanation Open 30% Message is very relevant , they are interested Click 50% The offer is attractive, they want to know more Purchase 10% Extremely low number ROI -$3.8K Campaign not profitable What went wrong ? : Offer is wrong Option 1 Try to sell wrong product to wrong audience Option 2 The product is really bad Option 3 They did not get it Option 4 Something went wrong in purchase cycle (technical) © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 38. Another conclusion What Numbers Explanation Open 30% Message is very relevant , they are interested Click 50% The offer is attractive, they want to know more Purchase 10% Extremely low number ROI -$3.8K Campaign not profitable Cost/sale $41.67 % 1.5% Not bad actually 2nd option : campaign too expensive Option 1 Spend too much money to acquire customer Reducing cost will increase ROI, reduce cost / sales © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 39. Conclusion Only proper sales Importance of funnel leads to measurement conclusion Importance of understanding the numbers Need to have context to draw proper analysis Only by getting metrics / strategy / context / you will maximize your marketing spendings © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 40. Then apply to real campaign © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 41. Updated marketing sales funnel © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 42. Planning campaign is the only way to succeed Consumer needs Strategy Where are What do I expect consumer today. from consumers Starting point at the end ? What are the steps I expect from him ?   Key opportunity from each Media : Include or not   Marketing objectives   How each elements brings me closer to my goal   Tactics and response time   Promotional Modules   Information category   Each phase has its own objective   Measurement of each steps, how many goes from A to B   As detailed as possible © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 43. Step 1.1 – Definition of Process Phases Online banner Social Media Website DataBase Conversion acquisition Sales eDM offer Social Media © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 44. Defining objectives : sales Funnel Each Step What to do ? What Measure ? Simulate Campaign before it starts   Tactics   Campaign Modules   Media © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 45. Defining objectives Step 4 Buy Step 3 What to do ? What Measure ? Step 2 What to do ? What Measure ? Step 1 What to do ? What Measure ? What are the steps I expect from him ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 46. Concrete example   I want to recruit 5.5k members or fans   How much money do I need ? Cost Media Conversion Number Final Objective $5.000k Internal DB 10.000 30% 3.000 3.000 $5.000k Banner Ad 30.000 5% 1.500 1.500 $50.000k TV Ad 100.000 1% 1.000 1.000 $60.000k 140.000 fans 5.500 fans © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 47. In our example 25 x times more people © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 48. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 49. Calculate value of responsive group © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 50. How to measure which group is more responsive ? Example, among all the person sub segmentation + INDEX we targeted, it seems that female from 25-35 are more responsive  Step 1 : Start from the base  Step 2 : Calculate their distribution  Step 3 : How many of them acted ?  Step 4 : Acting distribution Age group ?  Step 5 : Comparison of distribution , not Sex values © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 51. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 52. Compare campaign efficiency © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 53. Introduction to ROMI Planning - Preparation Campaign Follow up activity AUDIENCE ENGAGE CTA SALES How do you get me to do what you Activity Sales would like me to do ? the right audience ? How much does it cost per tactic to Total cost of the How much sales bring me to your CTA activity does it generate © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 54. Long Term ROMI example Contacted Value of Incremental Initial Contact Brand and Product Awareness Prospects Value of Incremental Visit Website Product Awareness Initial Response Value of Incremental Apply for Seminar Product Evaluation Initial Action Product Participate in Seminar Education End Action Sales Target Sales Leads Value of Incremental Sales Lead Acquisition © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 55. Applying Value to ROMI 1.  Expected Sales Conversion Rate 2.  Comparison of various activities to drive web-traffic (cost per visit) 3.  Value of Acquired Data (Active Commitment) 4.  Value of Participation in promotional Activities 5.  Value of Viral Distribution Volume (Free Contacts) 6.  Value of Exposure in Social Networks (Free Contacts) 7.  Downloads, Uploads, etc. (Active Engagement) © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 56. ROMI Example – Event Total Campaign Costs $ 100,000 Total Event Participants 10,000 Total Incremental Sales $ 2,000,000 Sales Margin 60% Incremental Margin $ 1,200,000 Sales ROMI = $ 2,000,000 : $ 100,000 = 20 Margin ROMI = $ 1,200,000 : $ 100,000 = 12 © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 57. ROMI Example – By Channel by Direct Mail by Online Banner by Print AD Cost for Event Invitation $ 10,000 $ 2,000 $ 20,000 Event Participants 3,000 1,000 6,000 Event Cost (Participants) $ 20,400 $ 6,800 $ 40,800 Total Costs $ 30,400 $ 8,800 $ 60,800 Incremental Sales $ 600,000 $ 200,000 $ 1,200,000 Incremental Margin $ 360,000 $ 120,000 $ 720,000 Sales ROMI 19.7 22.7 19.7 Margin ROMI 11.8 13.6 11.8 © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 58. Key Performance Indicators - Campaign   Total Contacted Targets 5,840 ROMI 1 Total Contacts 15,869 Average Contacts per Customer 2.7     Unique Site Visitors Identified 677 Response Rate - Targets to Site Visitors 11.6% Response Rate - Contacts to Site Visitors 4.3% Total Unique Visitors 1,968 ROMI 3     Total Event Reservation 189 Response Rate - Site Visitors to Reservations 27.9% Response Rate - Targets to Reservations 3.2%     Total Invitations sent 135 Total invited Event Participants 89 Total "walk-in" 59 "Walk-in" Rate 39.9% Total "No-Show" 46 "No-Show" Rate 34.1% Total Event Participants 148 ROMI 4     Key Performance Indicators - Qualified Sales Leads Sales Leads - Qualified as HOT (80% Sales Chance) 11 Sales Leads - Qualified as Warm (60% Sales Chance) 8 Total Generated and Qualified Sales Leads 19 ROMI 5     Conversion Rate Participants to Sales Leads 12.84%     Total Campaign Costs 30,000 Costs per Qualified Sales Lead 1,579 © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 59. Philips LED - Campaign Metrics China Module Update: 2010-03-31 Generating Site Traffic Consumer Profile Voucher Management Campaign Response Male Consumers Road Shows Created Distributed Registered Free Sign-up Pre-Order < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Female Consumers Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Subtotal 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total Acquired Consumers Delivered Unique Site < 20 Years 8,888 1.0% Other Traffic Drivers Click Through CTR Site Visits Impressions Visitors 20 - 29 Years 8,888 1.0% Philips.Com 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 30 - 39 Years 8,888 1.0% Media 1 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 40 - 49 Years 8,888 1.0% Media 2 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 > 49 Years 8,888 1.0% Media 3 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 unknown age OR gender 8,888 1.0% Media 4 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Media 5 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Media 6 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Family Profile Media 7 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Single 8,888 1.0% Media 8 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - No Children 8,888 1.0% Media 9 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - Yes Children 8,888 1.0% Media 10 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Others or unknown 8,888 1.0% Subtotal 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Site Traffic Response Mechanics Total Site Traffic Unique Visitors Site Visits Free Sign-up Pre-Order Campaign Key Performance Indicators Road Shows 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Pre-Ordered LED Products 888,888 Other Traffic Drivers 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Redemption Vouchers Sent 888,888 Total Traffic 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Vouchers Redeemed for Purchase at Retail-POS 888,888 Redemption Rate 1.00% Engagement and Sales Conversion Total Unique Site Visitors 888,888 Sent Delivered Opened Site Visits Pre-Order Total Site Visits 888,888 Sorry E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Estimated Site Re-Visitation Rate 1.00% Monthly Newsletter 1 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 2 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 3 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Total Newsletter 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Completed Consumer Surveys (Percentage based on Total Unique Site Visitors) 888,888 1.00% Reminder E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Total Campaign Costs - EUR 888,888 Total Number of Sales 888,888 Stock Available E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Average Net-Profit per Sales - EUR 888,888 Total Engagement 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Return on Invest (ROI) / Return on Promotion (ROP) 1.00% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 60. What matters IS NOT IS The cost of your How much extra campaign sales it generates © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 61. STUDY CASE SIMULATION PHASE WWW.F5DC.COM ROI CALCULATOR © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 62. http://www.fujixerox-transpromo.com © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 63. HANDS-ON EXERCISE WWW.F5DC.COM © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 64. Touch point Analysis   Map your customer experience journey •  Delivery mechanism, channel , promise from brand   Identify the various contact point •  Organize, check for message consistency, channel linkages   Touch point functions •  Does it fulfill the objectives?   Determine the elements to measure •  You can measure almost everything, be selective © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 65. Thanks. Do you have any question ? http://bit.ly/aEmARR f5dc gregbirge fanatic@f5dc.com +65 9111 6849 WWW.F5DC.COM