Please find attached the full set of slides from the "The future of direct marketing" event on Thursday 2 February 2012. This event was organised by The Direct Marketing Association and LBi. You can see the event converstion at #dmalbi

1. The future of direct marketing
Thursday 2 February 2012, LBi London
Gold sponsor Silver sponsor Event partner

2. Introduction from chair
Chris Combemale,
Chief Executive Director, DMA

3. Thank you
Gold sponsor
Silver sponsor
Event partner

4. Interact!
•Twitter: #dmalbi @DMA_UK
@LBiLondon
•LinkedIn & Facebook groups
•www.dma.org.uk

5. The future of direct marketing
The Importance of Lifetime Value
Chris Combemale, Executive Director, DMA

6. The value of a customer
Where do you start?

7. Not all customers are equal
Rank these profiles for Value of the
subscriber
• Entered competition to win a holiday on-line 3 years ago – not
clicked since
• One-time customer, last bought 2 years ago
• Active customer, buys every 4 months
• Active customer, buys once a year but top 10% for order value

8. Transactional Data
Frequency
Value
Recency

9. “Lifetime” alters value
• How long to customers stay active for?
• What revenue will they generate per year?
• Work this out for the whole database
• Then for customer segments
• That gives a lifetime value (LTV)
• What about different acquisition source?

10. Different Metrics, Different Conclusions
• Click-through rate
• New or repeat visitors
• Bounce Rate
• Engagement
• Micro-conversion
• Conversion to Sale

11. “All of the above is focusing on short term
success.
Even measuring “Visitor Conversion Rates” is
akin to declaring success after a one night
stand.
Visit based conversion rates promote
bad marketing behaviour.”
www.kaushik.net

12. How about adding these?
• First month sales
• 6 months sales
• 3 years sales

13. A Hypothetical Example
Best Average
Customers Customers
Purchases per year 4 2
Average Order Value £70 £50
Annual Revenue £280 £100
Gross Profit Margin 10% 10%
Gross Profit £28 £10
Acquisition Cost £8 £4
Net Profit £20 £6

14. A Hypothetical Example Part 2
Best Average
Customers Customers
Life Expectancy 3 years 2 years
Revenue Year 1 £280 £100
Revenue Year 2 £220 £60
Revenue Year 3 £180 £0
Lifetime Revenue £680 £160
Gross Profit Margin 10% 10%
Lifetime Gross Profit £68 £16
Acquisition Costs £8 £4
Lifetime Net Profit £60 £12
»

15. Rethinking the traditional marketing
model: from campaigns to
conversations
James Young, Digital Marketing Manager, Global Marketing,
Sony Ericsson
Pipa Unsworth, Global head of CRM, LBi Group

16. Rethinking the
Click to edit Master
traditional marketing
text styles
model: from
campaigns to
conversations
James Young - Digital Marketing
Click to edit MasterMarketing, Sony
Manager, Global text styles
Ericsson
Pipa Unsworth - Global Head of
CRM, LBi Group

17. SONY ERICSSON BRIEF
• Video content to build brand
awareness and drive engagement
• Opting out of feature battle
• Objectives for Xperia to engage and
create lasting relationships with
influential early adopters

18. LBI'S RESPONSE: XPERIA STUDIO
• Xperia Studio was born – “Reality
Remade”
• Create content with phone at the
heart
• Wide open brief to collaborators

19. LBI’S RESPONSE
• Wide variety of content collaborators;
– Riding in the Moab with 360 cameras
– BMX tricks
– Invisible Universe application
– Hack-a-thon at an interactive art
studio located on a barge
– Surf photography
• Launched in September 2011
– XperiaStudio.com
– Xperia Studio Facebook tab
– Twitter
– YouTube
– ePR

20. TED VIDEO

21. XPERIA STUDIO RESULTS

22. DRIVING SOCIAL CURRENCY FOR XPERIA STUDIO
DEFINE OUR
STRENGTHEN GIVE ME
COLLECTIVE
MY BOND STATUS
IDENTITY

23. CREATING SOCIAL CURRENCY FOR XPERIA STUDIO CONTENT USING COMUFY
• Social CRM platform Comufy is used
to drive social currency for Xperia
Studio
• Xperia Studio Facebook users can
sign up to be first to know about new
Xperia Studio content
• Users receive personalised newsfeed
posts about new exclusive content,
which can be easily Shared,
Commented or ‘Liked’ for viral spread

24. XPERIA STUDIO CONTENT GENERATES CONVERSATION

25. XPERIA STUDIO RESULTS – COMUFY REACH
Potential reach 2.6m
Total friends of fans
Friends of fans 245k reached
friends reached through shares
Xperia Studio Fans
10K registered

26. XPERIA STUDIO RESULTS – EMAIL VS. SOCIAL DIRECT MESSAGING
Social Direct average click through: 20% Email average click through: 5.9%*
*Epsilon 2011 Email Trends and Benchmark

27. XPERIA STUDIO IN 2012
• Xperia Studio will continue to be a key
part of Sony Ericsson’s social strategy
in 2012
• New collaborator content on Xperia
Studio is coming
• Social direct messaging will continue
to be used to drive social currency
• Sign up here
http://www.facebook.com/sonyericsson

28. About LBi CRM
Click to edit Master
text styles
Click Unsworth
Pipa to edit Master text styles
Global Head of CRM
Pipa.Unsworth@LBi.com
@Peepa

29. Mobile direct marketing: the
challenge and opportunities
Ilicco Elia, Head of Mobile, LBi Group

30. Using “big data” to make the big
decisions
Allison Wightman, Head of eBusiness, Virgin Atlantic

31. The Future of Direct Marketing
Using ‘BIG’ data to drive loyalty
Allison Wightman
Head of eBusiness
Virgin Atlantic Airways

32. How Virgin Atlantic uses its wealth of demographic,
behavioural and attitudinal data to engage customers,
defend its market position and remain relevant in tough
economic times

33. Understating the obvious...
― It is not the best time to be in
the airline business
― Economic decline
― Political uncertainty
― Physical traumas
― The only constant is change
Need for innovative ideas to capture
the travellers imagination

34. Flying Club overview
― 2.7 million members
― Global programme
― US, UK, ROW
― Extensive earning opportunities
― Last year, 23 triggers
― new ‘Welcome programme’ based on
the insights from previous activity
― Email postal and SMS
― Working to totally integrate our
relationship with customers where ever
they touch us
― Online, social, retail, airport, kiosk
Whatever the technology, the same rules apply...
Right message to the right customers through the right channel at the right time

35. Driving Effectiveness through Data and
Insight

36. Business As Usual
― The trigger programme
― Automated customer
communication programme
― Enables us
― to exceed our annual revenue
targets
― improve performance year on
year
― Continues to evolve whilst
retaining relevance to customers
within their Virgin Atlantic lifetime
journey.

37. Never standing still...
― The newest trigger...
― SMS alert 2.5 hours before the
flight
― Encouraging foreign currency
exchange at the airport
― Significant conversion of 5%
― demonstrates the use of timely
communication within the
programme.
― This augments the existing Forex
email trigger campaign

38. Planning and Strategy Recency
0 - 6 Months
24 – 36 Months 6 - 24 Months
Flying Club Segmentation
/ Future
―
5+ Seasonal Flyers Flying High
― 7 groups, 29 types Ex Execs
― recency, frequency and value 3- 4
No. of Flights
Occasional Flyers Fledgling Flyers
― demographic, economic, social 1- 2 Almost Grounded
― wider travelling behaviours
Monitor the health of the 0 Currently Grounded
―
database
― Early warning of negative
behaviours
― Common currency

39. Tactical Activity
― Flight Curve analysis can optimise sale fare relevance
and effectiveness
900 Flight Curves ‐ London Heathrow to Boston (All Cabins)
Median No. of Sector Bookings/Departures
800
Sale fare?
700
600
1 Jul 45% 8 Sep
500
9 Aug 38% 8 Nov
400
9 Oct 18%
300
200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sector Bookings Sector Departures
39

40. So what’s next?
― The future of Direct Marketing at Virgin is bright
― But it will look different to what it is today
― More channels
― More choice
― More integration
― More interaction
― More personal
Big Data will always support the Big decisions of this small but Big brand

41. Refreshment Break

42. Social direct messaging
Philipp Mohr, Chief Executive Officer, Comufy

43. Enterprise Social Media Management System
® Comufy is a registered trademark of Astrapia
Ltd.

44. Social Media Management System
The Comufy Social Suite
Key benefits
Data driven Full insight Proven ROI One-to-one
communicatio into users’ High click communicatio
n behaviour rate n
Some of our Enterprise clients
Some of our partners

45. Overview
• Evolution of Social Media
• Opportunities
• Build communities and be relevant
• Outlook
`
Confidential

46. Why social media?
`
• 50% logon very day
• Average 700 minutes / month
• 140 friends
Infographic via Bamboo
Confidential

47. Maturity
Young channel that is starting to mature, just like email did
`
Confidential

48. The Evolution of a Fan
Page

49. Facebook Fan Page Evolution

50. Facebook Fan Page Evolution

51. Facebook Fan Page Evolution

52. Broadcast Social Messaging

53. Current State
`
Confidential

54. Is this it?

55. Social Media Opportunities
A lot of data and a big user base
Compelling offering + Be relevant
• Clear value exchange • 1:1 communication
• Build strong • Engagement
communities • Relevancy
• Offer rewards • Personalisation
• Dynamic content
• Targeted, direct
messaging

56. Clear Value Exchange

57. Be Relevant

58. Be Relevant

59. User signup
Store data
Confidential

60. Example Results
• 35% click rates
• Very high share rates:
• Campaign to 10,000 users
• Directly shared by 3,228 users
• 945,291 total clicks through viral spread
• Key are tempting messages and good content
Confidential

61. Social Flow
`
Confidential

62. phil@comufy.com

63. Customer service is the new
marketing
Warren Buckley, Managing Director Customer Services, BT

64. The empowered consumer requires
a new means of engagement
Ed Van Siclen, SVP Business Development and Global Alliances, Lithium

65. The Age of the Empowered
Consumer
Ed Van Siclen
SVP, BD & Global Alliances
@edvansiclen

66. Time Magazine’s Man of the Year

67. welcome to the
social
revolution:
around the
globe, people
are seizing
power

68. civil
disobedience:
the social web
has organized
and amplified
our global voice
confidential

69. the power of the
connected world:
collectively, we are
doing great &
inspiring things at
unprecedented
scale

70. applied game
theory:
gamers model
protein structure
which had eluded
scientists for
decades

71. the good, the
bad and the
ugly:
the dawn of the
mobile, social
and incredibly
empowered
consumer:
confidential

72. beware of the
thunder lizard!
business
models are
being radically
transformed
confidential

74. Social Media Spend
Reach $2.1Bn in US
of CEOs surveyed reported that
their top priority for the next five
years was ‘getting closer to their
customers’
Source: Forrester US Interactive Marketing Forecast ,
2011

75. Social media helps us to:
57% be more relevant
to our customers
build better
54% customer
relationships
build awareness
50% and demand for
customer focus is
our products
CMO Council, 2011
the major driver
behind social
$2.1
spentB2011
in
social media as %
of marketing budget

76. Customers want an authentic
conversation and engagement
with buyers ‘like them’
but customers
want to interact 14% of consumers trust
advertisements
with each other,
not just you
90% of consumers trust
peer recommendations

77. social brings new complexities
how do I manage and how do I measure the
who do I engage and how?
scale? impact?
superior design features
of marketers
41% surveyed had no
proven ROI of
social initiatives

78. we help our clients with
a roadmap to get there
REALIZE
your brand
nation
PROVE
the business value
DIRECT
the
ENGAGE
LISTEN conversation
on existing networks
to understand
understand the tap into existing create an owned hub harness the power to transform the overall
social customer social networks drive business customer
impact experience

79. drive revenue

80. reduce service costs

81. accelerate innovation

82. lithium has a full enterprise-class suite
platform manages the social customer experience and the needs of the busines
touch points social apps reputation engine
communitie
engage s forums blogs ideas contests q&a
customers facebook
mobile
ratings surveys video tkb groups
customer intelligence center management tools
manage studio
social social media behavioral api creator
programs monitoring analytics moderation manager
integrate rest api developer nation

83. what makes lithium different?
scientific gaming true
methodolog dynamics saas
(reputation) (data)
y
(consumer web
confidential
dna/research)

84. superfans are the key to success
superfans consist of
<1%
of community
populations
on average
superfans
generate
50%
of all community content
and
85%
of all useful content
confidential

85. confidential

86. imagine a set of experiences that are infused
with the participation of your social customers
confidential

87. imagine this across all digital touch points
community .com social web mobile digital @store
SOCIAL
CUSTOMER
EXPERIENCE

88. we are lithium
delivering social customer
experiences for the
world’s most iconic brands
founded in 2001
bay area hq, new york, london, zurich, paris
300 customers 30+M registered users
named market leader by forrester, gartner
100% cloud platform
top tier VC funding, including Benchmark &
NEA
confidential
confidential

89. Win the new Kindle with
built-in WiFi!!
Visit www.lithium-sce.com and complete the short
survey*
*Every participant will receive an electronic copy version of “The
Science of Social” featuring the work of Dr Michael Wu. This book
provides readers with a new perspective of understanding their
customers, their customers expectations, behavior, and potential.
confidential

90. Panel Debate: Is the future of
all marketing direct?
• James Young, Digital Marketing Manager, Global Marketing,
Sony Ericsson
• Pipa Unsworth, Global Head of CRM, LBi Group
• Ilicco Elia, Head of Mobile, LBi Group
• Allison Wightman, Head of eBusiness, Virgin Atlantic
• Philipp Mohr, Chief Executive Officer, Comufy
• Warren Buckley, Managing Director Customer Services, BT
• Ed Van Siclen, SVP Business Development and Global
Alliances, Lithium

91. Closing remarks from chair
Chris Combemale, Chief Executive Director, DMA

92. Drinks and networking