Hyper-personalized Marketing

A guide to better customer experiences. Table of Contents

Introduction to Hyper-personalized Marketing

The Market Situation 3

What is Hyper-personalized Marketing? 5

The Customer Response 7

Five Must-dos for a Successful Hyper-personalized Marketing Approach 19

Case Studies 20

2 The Market Situation

Our world moves at an accelerated pace and the number of channels has multiplied. Consumers are constantly bombarded by messaging and data. Getting their attention is difficult. Earning and retaining their loyalty is an even greater challenge. Which makes attracting, retaining and growing customers while delivering a powerful Return on Investment (ROI) the greatest challenge of all.

FIGURE 1: SUPPLIER’S MESSAGES TO MARKETERS DELIVERED IN SILOS

Blast SMS Web Print Long Runs Blast Emails Now, it is all about Is the way to do It is cheaper and you can The affordable and cost Smartphones business today reach more prospects effective method to hit a large audience.

When marketers search for effective assessments of various It can get uglier when traditional static techniques are used media of delivery, they often fall short, delivering media statistics on platforms intended for dynamic content particularly if rather than useful business ROI metrics. Over time, more we continue to lead conversations using a product-centric channels, more media and confusion over what to use where approach rather than adopting a customer-centric strategy. and when leads to the creation of media silos and data that is It’s time for marketers to harness and unleash data across isolated by channel. multiple integrated omni-channels in meaningful ways to Meanwhile, marketers wonder why their “cost per customer” is create hyper-personalized messaging and communications increasing or their ROI is weak. Agencies are struggling, realizing that customers demand, and that deliver measurable results. that consistency at every stage of the consumer journey is key. Suppliers are still selling technology and processes, forgetting that consumer engagement requires smart data, creativity and successful partnering. And media agencies are still operating as though the new media of the day is the way to go, defending their space without seeing that it is all about co-operating with each other to provide individual customer journeys.

3 FIGURE 2: CUSTOMER JOURNEY

WWW.

SMS Newsletter

Direct Mail Billboards

Where do I invest? Offline Online New Media

Personalization can deliver five to eight times 77% the ROI on marketing of marketers say real-time spend and can lift sales personalization is crucial; by 10% or more, according however, 60% report it’s to McKinsey & Company. a challenge to execute.

The good news: marketing technology, automation and advanced analytics make achieving effective hyper- personalization at scale not only possible but easy.

Source: Real-Time Marketing Insights Study, Adobe

4 What is Hyper-personalized Marketing?

Hyper-personalized Marketing is a more personal approach to customer relationship building that narrows broad communications down to individualized interactions.

It’s also today’s “new normal,” thanks to advances in technology that result in the ability to tailor experiences for customers based on a variety of information and data, such as demographics, location, affinities, interests and past behaviors, all of which can be used to isolate and customize experiences in as much detail as desired, across as many channels as desired.

FIGURE 3: THE OPTIMAL EXPERIENCE

PersonalizationPersonalize individual journeys, tailor offers or promotion, generate recommendations, etc. Customer Experience Level

Group visitors by common interests, customer intent, traffic sources, or by demographic and

Segmentation psychographic attributes. Segment visitors by events, activities taken and behaviors over time.

Track page views by category, type of page visited, traffic sources or even click behavior. Collect visitor attributes such as social graph data, attributes of registered individuals, and so on. Monitor activities over time, such as time spent on pages, time to purchase,

Data Collection elapsed time between events, etc.

5 Hyper-personalization in an integrated cross-media environment

Hyper-personalized Marketing is an integrated approach that delivers relevant, effective communications using the right channel at the right time. It is a holistic form of customer communication that is customer-centric as opposed to product-centric.

Product-centric marketing is when a company differentiates products from the competing ones, whereas a Hyper-personalized Marketing approach is about a unique offering to each customer, Personalization reduces placing the potential or existing client as the central point. In a cross-media environment, Hyper-personalized Marketing acquisition costs as much effectively cultivates customer relationships by connecting with customers through channels and ways they perceive as valuable. It integrates digital and social media with traditional as 50%, lifts revenues by media (like print) to create successful customer conversations and strengthens existing relationships as well as new ones. 5–15%, and increases the Hyper-personalized Marketing communications are ideal for relevant offers to attract customers and gather customer data. efficiency of marketing Multiple channels are normally used to deliver and support such Hyper-personalized Marketing strategies. spend by 10–30%, in Companies should avoid strategies developed for a unique channel and instead should ensure that strategy prevails addition to creating more over the choice of channels. It is also preferable to have a strategy that favors a continuous experience rather than a one-time WOW! positive experiences,

Source: McKinsey & Company

6 The Customer Response

Today’s consumers expect highly personalized experiences in all the channels they prefer and are willing to spend more money when they believe they are seen and heard as individuals. Despite those expectations, however, a majority of consumers are disappointed with the ongoing lack of personalization in their interactions. Businesses and brands that don’t deliver value, risk becoming obsolete. 90% 80% 500% of individuals in the U.S. find of consumers are more likely to Increasing personalization in more marketing content personalization make a purchase when brands channels can increase overall as very/somewhat appealing. offer personalized experiences consumer spending up to 500%.

Source: Epsilon Source: Epsilon Source: The E-Tailing Group

THE EMOTIONAL IMPACT OF PERSONALIZATION Personalization has the power to turn customers into loyalists. Conversely, impersonal experiences lead to customer frustration.

Percent of people who feel some level of frustration in the following scenarios:

Shopping experience remains unchanged after you 81% provided negative feedback

Online shopping cart not connected to mobile app 66%

Displays an ad for a product that you are not interested in 60%

Gets your name wrong in brand communication 75%

Mistakes you for the wrong gender 65%

7 Consumer frustration can quickly turn into disloyal or lost customers. If the brand gets information wrong when directly marketing to a customer:

Will be less likely to make a purchase from the brand 37%

Will rehash the negative experience to friends or family 20%

Will unsubscribe from the brand’s email 23%

Will unfollow the brand on social media 11%

Personalization has significant positive effects. After a consumer has a personalized shopping experience:

Will be likely to become a repeat buyer 44%

Will be likely to leave a positive review 32%

Will be likely to tell friends or family 39%

Will be likely to post a positive comment on social media 22%

Source: The 2017 State of Personalization Report

THE DOORWAY TO CUSTOMER RELATIONSHIPS The proliferation of new devices and the rapidly evolving technology landscape has led to new expectations in the In a world where consumers’ customer shopping experience, and as consumers’ expectations rise, retailers are struggling to meet them. behavior constantly changes,

To attract, retain and grow a customer, companies have to do more than sell products. They have to create an enriching how do we truly engage and customer journey that engages consumers at multiple points along the way with interactions that are meaningful and relevant nourish a valuable customer to them as individuals, and that meet them where they are in their lives. relationship in a timely Another important point of consideration: the true payoff of personalization comes when the customer learns something they manner? How do we entertain didn’t know. It’s important to not use data merely to hold a mirror up to users, but instead to open a doorway to something new new, active, young consumers and surprising. without neglecting the more traditional ones, while remaining relevant to all?

8 MANAGED ANALYTICS OVERVIEW OF A CUSTOMER- CENTRIC APPROACH

Managed analytics is about leveraging customer insight to The diagram below outlines the procedure, data elements and implement specific customer-focused actions, then learning from the benefits of using customer insights and analytics to achieve the customer response to improve future interactions. a customer-centric approach and gain competitive advantage.

FIGURE 4: CUSTOMER-CENTRIC APPROACH 1 2

Gather Customer Data Drive Customer Insight (both internal and external) • Customer needs • Contact information • Customer value • Preference • Customer defection • Purchasing behavior • What products customers will need next • Customer interaction history

• Online social media behavior

Reporting & Feedback

Analysis Action

Decision Support

Evaluate Response Suggest Proactive Action • Increase in customer satisfaction • Align marketing and sales resources to customers based on opportunity • Incremental customer contribution • Develop customized marketing collateral based on • Increase in customer share customer needs

• Increase in customer loyalty • Feed customer insights to product development

• Train marketing and sales staff on applying customer insight 4 3

As a primary step, the information about the customer is gathered The next step is to leverage this insight to implement customer- based on the previous records or by using strategic channels of focused initiatives by targeting recipients with customized data collection. Next, the most valuable data is identified and is marketing pieces, providing a cross-media experience and used to understand the needs, wants and preferences of the gathering additional data in this process. This data can be used customers. This data is used to identify the “actionable customer to make further communications more relevant. The response insight” which helps to implement customer-focused actions. gathered is evaluated as a closing step to ensure a holistic customer engagement process. This can be achieved by engaging customers in learning relationships in which information travels as a two-way dialogue.

9 FIGURE 5: DELIVERING HYPER-PERSONALIZED MARKETING THROUGH MULTIPLE CHANNELS In a multimedia approach, the channel of delivery is selected to support and not to lead the strategy. Isolating marketing activities and creating silos is a mistake that is too often seen on the market.

Initial Database Step 1: Direct Mail Step 2: PURL Step 3: Email Step 4: Refined / or Direct Mail Relevant Data

1. Grab Attention: Outbound, eye-catching, direct mail – grabs attention, provides the right tone and drives recipients to respond via the web

2. Catch Them: Personalized micro sites for “catching” the responding recipients – validate data, collect data and conduct business exchange

3. Relevant Targeting: Follow-up wave of outbound communication (direct mail and/or e-mail) based on analytics of the refined data. Do up-selling and cross-selling

4. Relevant Targeting: Follow up their talks, their trends and their buzz or simply communicate information using social network and/or smartphone

Customization in a Hyper-personalized Marketing approach is Regardless of the industry or the size of the enterprise, companies used to demonstrate to the customer that the company values that implement Hyper-personalized Marketing as a strategic their individual importance through relevant service and product approach reap many benefits. Those benefits are multiplied in offerings. Therefore, effective communication catches the effectiveness when relevancy, up-selling and cross-selling clients’ attention through personalization which attends techniques as the use of multi-channels are applied. specifically to client needs, profile and evolution. Customized Hyper-personalized Marketing helps companies to have a mass customization that concentrates on relevancy to individuals.

FIGURE 6: OVERALL BENEFITS OF HYPER-PERSONALIZED MARKETING

Relevancy Brings Up-selling and Cross-selling Delivers Multi-channels Offer

• Higher response • Higher revenue • Right message. Right channel. Right time.

• Higher conversion • Greater wallet share of client • Precision of information and data collection • Higher retention • Increase in communication efficiency at lower cost • Multiple customer touch points • Higher customer satisfaction • Integration of data • Rich customer experience • Better comprehension of information • Reduction in attrition • Customer behavior insights • Reduced complaints • Increase of ROI

10 Relevancy in client communication often brings an increase in “Consumers demand fast action and personalized response rate which also leads to a higher conversion. As shown communication in nearly every channel almost as soon in Figure 7, higher retention is related to an improved customer as they choose to identify themselves to a brand (such satisfaction due to a better comprehension of the marketing message and intent. Other benefits are also often noted in the as by providing an email address or creating a login).” reduction of complaints at call centers. Source: The 2017 State of Personalization Report

FIGURE 7: A CROSS-MEDIA HYPER-PERSONALIZED Using an integrated MARKETING APPROACH DELIVERS cross-media software such Increase Brand as XMPie to deploy a Awareness Hyper-personalized Marketing

A True a Improve Customer- Campaign improves data Customer Centric Cross-media Experience Approach Hyper-personalized collection and accuracy, Marketing approach allowing the creation of a customer behavior profile Improve Positive Data Customer Collection Reaction which in turn will help refine the effectiveness of communication between the Hyper-personalized Marketing offers a great opportunity for up-selling, which is a technique of persuading the consumers company and its clients. to upgrade their current product or add additional features. As well, it opens the door for cross-selling opportunities which is when companies can sell multiple products and services according to the evolution of their client.

These proven techniques can boost a company’s revenue and win a greater share of the customer’s wallet.

A Hyper-personalized Marketing approach also enables the integration of data to better follow the lifecycle and needs of each individual, hence increasing marketing efficiency. It reduces costs by eliminating the painstaking task of combining siloed information in one integrated database. Hyper-personalized Marketing often reduces attrition, which leads to an increase in Return on Investment (ROI) for the company.

Furthermore, with Hyper-personalized Marketing, the use of a multichannel approach assures that the right channel is used for the right clients at the right timing of their customer lifecycle.

11 FIGURE 8: CURRENT STATE: SILOED DATA COLLECTION DUE TO LACK OF WORKFLOW INTEGRATION

Variable Data Print Workflow

Print Design

Customer Data VDP Personalization Engine

Adding Personalized Web

Data for Web

Web Design

Convert & Transfer

Web Personalization Engine

Push “Replies” Adding Email Design Back to Web Data Personalized Email

Email Personalization Engine

Figure 8 is a demonstration of a multichannel workflow built The problem with this approach resides in the complexity of the without an integrated approach (commonly seen on the market). workflow and the silos of data collection.

FIGURE 9: DESIRED STATE: XMPIE® PERSONALEFFECT OUTPUT

Print

Email

Web

Customer uProduce Server Database InDesign XLIM Websites Mobile

Source: XMPie Blog

12 As shown in Figure 9, an XMPie® workflow integrated in one into the customer database for immediate use. Best of all, system. This centralized approach with a single server solution because you are working with only one system, you can easily (the XMPie® uProduce Server) seamlessly connects with the track and analyze every customer interaction in a campaign, customer database and generates print, email, personalized web across all channels. pages and mobile communications. It also allows important information gathered from personalized web pages to be returned

Responding To Consumer Demand

FIGURE 10: IMPORTANCE OF CONTENT PERSONALIZATION AMONG U.S. CONSUMERS IN 2016, BY INDUSTRY

Importance of getting content personalization right by market category

Health + Wellness 34% 38% 18% 5% 4%

Food 29% 42% 21% 4% 4%

Electronics + Technology 24% 42% 25% 6% 3% Very Important Travel 22% 41% 25% 9% 5% Somewhat Important

Media + Entertainment 21% 41% 27% 7% 4% Neither Somewhat Unimportant Financial Services 26% 30% 29% 8% 6% Very Unimportant Automotive 21% 33% 30% 10% 6%

Home + Real Estate 20% 30% 33% 9% 7%

Fashion + Beauty 17% 30% 31% 12% 10%

Source: OneSpot; Marketing Insider Group, October 2016

As shown in Figure 10 above, when asked about the importance of personally relevant content by category, Health and Wellness tops the list with 72% of consumers indicating that personally relevant content is somewhat or extremely important. Seventy one percent (71%) indicated Food and 66% indicated Electronics and Technology as important categories for content personalization. Financial Services also stands out since 26% of consumers indicate that it’s extremely important to deliver personally relevant content for that category.

13 FIGURE 11: FEELINGS TOWARD THE BRAND

Feelings toward brands when they provide personally relevant content

I See Brand as Relevant 21% 51% 22% 4% 3%

I Like the Brand 17% 50% 26% 3% 3% Strongly Agree Somewhat Agree I Prefer the Brand 14% 46% 32% 4% 3% Neutral I Feel Closer to the Brand 12% 45% 34% 6% 4% Somewhat Disagree

I Feel More Loyal to the Brand 13% 41% 35% 6% 4% Strongly Disagree

I Trust the Brand 12% 39% 38% 7% 4%

Source: OneSpot; Marketing Insider Group, October 2016

Figure 11 shows that nearly three quarters (72%) of consumers consumers draw a positive connection between content relevance see brands as relevant if they do a great job of delivering and brand likability, and 60% of consumers feel a stronger personally relevant content. Sixty-seven percent (67%) of connection with the brand as a result of content relevance.

FIGURE 12: MOST EFFECTIVE PERSONALIZATION TACTICS ACCORDING TO MARKETING EXECUTIVES IN THE UNITED STATES AS OF APRIL 2017

Dynamic content in email marketing 65%

Website content based on real-time data 62%

Personalized email content based on real-time data 60%

Personalize email content based on software/machine learning 58%

Website content based on software/machine learning 57%

Source(s): MarketingCharts; OneSpot; TRG; ID 809509 Note: United States; April 2017; 350 Respondents

14 THE IMPORTANCE OF PERSONALIZED URLS (PURLS) It can be inferred from the results that individualized content across a wide range of media provides multiple touchpoints and When combined with a printed personalized piece, the duo of increases the number of ways to interact with a customer. The print and PURLs generates outstanding response rates. The ability provided by the use of PURLs to gather accurate and benefits of using a PURL in a Direct Marketing campaign is not tractable information that can be used to trail the activity of only that it generates measurable higher traffic, but each click the recipient is one of the popular reasons for success. It is also represents a defined individual and is not an anonymous statistic. important to make it easy for the recipient to respond and Each individual can now be traced. For Data Gathering interact. As in all campaigns, attractive and catchy designs will campaigns, a similar pattern is observed, emphasizing on the fact help seal the deal. that PURLs help collect accurate information that could be used to make future communications more relevant.

Thus, the high performance of personal URLs and personalized response rates prove that a relevant offer tailored to the needs of the customer is more effective in all cases.

From the above analysis, we can see that the improvement is remarkable when Hyper-personalized Marketing is used instead 2X of a generic mass approach.

As demonstrated in Figure 12, marketers who were surveyed cited PURL response rates are the following reasons as the top five contributors to the success of their campaigns: nearly 2X traditional direct • The use of creative personalization mail pieces1 and are among • Gaining attention with cross-media • The use of PURLs the top response rate • Having a relevant, good and attractive offer tacking methods (61%).2 • Making it easy for the customer Source: 1 United Mail, 2 DMA

FIGURE 13: MOST EFFECTIVE TACTICS FOR DRIVING RELEVANCY, Q2 2017

66%

64% 65%

62% 62% 60% 60% 58% 58% 56% 57%

54%

52% Dynamic content in Website content Personalized email Personalized email Website content email marketing based on real-time content based on content based on based on data, i.e., location real-time data, i.e. software/machine software/machine location learning learning

Source: The Relevancy Group Executive Marketer Survey April 2017, N=350

15 Dynamic content in email marketing is widely regarded by drive email personalization. Most marketers agree that various marketers across the mid-market and enterprise as “highly tactics can be employed to drive relevancy through effective,” and leads the list of tactics employed by digital personalization, and that each, when leveraged appropriately marketers to drive relevancy, with 65 percent deeming it the can deliver real value to marketers and consumers. most effective tactic in their arsenal. And while an overwhelming majority of email marketers While dynamic content is effective, there is a bigger opportunity understand that serving personalized content to email subscribers both in performance and operational efficiency when moving is an effective tactic, data indicates that many struggle to make from segment-based dynamic content to true hyper- it happen, and ultimately settle for simple implementations. personalization. Seventy-eight percent of executive marketers currently leverage Sixty percent of marketers report that leveraging real-time data in basic first name personalization to customize messages on email – contextual signals like location at time of open, weather, an individual level, a tactic that is easy to employ, but one which current browsing behavior, etc. – is either “effective” or “highly likely doesn’t unlock significant business opportunities. effective,” and 58 percent report the same of machine learning to

FIGURE 14: UTILIZATION OF TACTICS TO DRIVE RELEVANCE

80%

70% 78%

60% 59% 50% 55% 48% 40% 47%

30%

20%

10%

0% First name Personalized email Dynamic content Human curated Personalized email personalization in content based on in email marketing product personalization content based on email marketing real-time data, i.e. in email software/machine location learning

Source: The Relevancy Group Executive Marketer Survey April 2017, N=350

As indicated in Figure 14, 59 percent report personalizing email available, and process them appropriately to derive insight. It is content based on real-time data like location. precisely these tactics, however, that have the potential to make the greatest impact on email engagement, positive customer We find this encouraging but are troubled by the adoption experiences, and ultimately, business goals for marketers. numbers of dynamic product and content personalization. Over Marketers must unleash and leverage valuable behavioral data half of executive marketers across business verticals are missing from subscribers to fuel truly personalized programs. As the out by not making personalized product recommendations in their figures above reveal, hyper-personalized programs drive messages or leveraging a recommendation engine to select and considerably more revenue and engagement than “broadcast” serve personalized content to newsletter subscribers. Likely email programs. because these tactics are more difficult to implement and often require incremental investments to tag data, make them

16 FIGURE 15: LEADING WAYS TO UTILIZE DATA TO FACILITATE MARKETING PERSONALIZATION SUCCESS

Lookalike audiences 87%

In-store or customer service tied to digital 83% channel behavior

Dynamic content/promotion generator 75%

Digital agility tool - JavaScript layer 75%

Live chat 73%

Customized product recommendation engine 71%

Online targeting to alter digital experiences based 69% on behavioral attributes

Web experience engine 62% (determine which individuals see which content)

Offline analytics to determine target 61% audience propensity

Segmented email experience engine 60% (determine which individuals get which emails, when)

A/B or multi-variable testing 59%

Ad retargeting 58%

Online targeting (based on demographic, technographic or other static attributes) 57%

Triggered emails (abandoned cart, browse) 55%

Source: The Relevancy Group Executive Marketer Survey November 2016, N=131 Marketers (worldwide)

17 Five “Must Do’s” for a Successful Hyper-personalized Marketing Approach

As mentioned in the introductory section, marketers tend to approach channels in silos and often apply a product-centric strategy. Over the many years of deploying Hyper- personalized Marketing campaigns, our team observed that marketers tend to look at marketing campaigns as a one-time mass approach without true long-term strategies. In turn, their customers tend to switch off on messages and drift away, leading to disengagement with the brand.

Here are 5 tips on how to deploy a successful marketing approach that will lead to a more effective and relevant customer interaction and a more loyal brand experience.

1. HAVE AN INTEGRATED STRATEGY. 2. LOOK AT THE USABLE DATA Assess the challenges you wish to overcome in your marketing Once a strategy is defined, a company does not need a lot of approach. Define goals on which you will measure the success of data to start being relevant. Even if customer coordinates are all the program. And above all, do not select the channels of delivery you have to start with, you can still produce a relevant message. before the strategy is defined. The communication strategy A simple postal code can sometimes be enough to target and help should be a customer-driven approach and directly impact attract more customers to specific stores, increase dining at campaign goals and resolve the challenges. The media of delivery restaurants or understand the first level of their profiles. And an should be looked at as the tools you use to communicate your email can be the first step to an engagement, taking them to their Hyper-personalized Marketing strategy. personal website (PURL) and getting to know each client better. When using more than one channel, such as: variable print, Look at the different fields available in your database: Name, emails, SMS and social media, the strategy is the locomotive Address, Email, Date of Purchase, etc. and review how they are engine and the channels of delivery should not be treated in relevant and useful. If 60% of your database is usable, use it! This silos. data is not often used for the true value it can bring to a strategic Silos isolate data collection and hence, reduce the capacity of a communication. Any usable data can help refine the relevancy of company to be relevant to their clients in future communications. the first communication if strategic intelligence is driving it. Then continue to build on it.

18 3. TAKE A MOMENT TO UNDERSTAND THE PERSONAS 5. KEEP THE PROJECT ALIVE. OF YOUR TARGET AUDIENCE. A Hyper-personalized Marketing approach is a continuous Corporate clients should break the internal silos and force a conversation. It revolves around the gathering of knowledge, working session with the different product managers or heads of progressive insight on customers’ behaviors and a gradual departments to define the different profiles of clients, their age adaptation of the communication that will make customers the groups, the different products or services they have, the reasons focus of your strategy. Each additional communication will be why they would buy the products and services, the next potential more relevant to your clients and more valuable to your company, purchase, etc. The reasons why they would not buy the products so do not think and lead the project as if it has an expiration date. or services should be discussed as well. Instead, visualize it as an evergreen and fluid exchange of value between you and your clients. Remember, with Hyper- Create a worksheet with all of the client information collected personalized Marketing, your ultimate goal is to become a and you will have the corporate up-selling and cross-selling customer-focused rather than product-pushing company. plan mapped. This will be the basic structure and guideline to develop the multiple copies (relevant writing) of their messages. One easy way to evaluate and measure the overall benefits of Hyper-personalized Marketing is to use the Xerox Direct Marketing ROI Planner. It’s a powerful tool designed to demonstrate and 4. YOU’VE HEARD IT BEFORE: IN-DEPTH project the complete ROI of a direct marketing campaign. MEASUREMENTS. Although it seems obvious, many marketing people are not adequately measuring the true performance of their campaign. They should assess clearly what they currently measure, the efficiency of their marketing approach and what their capacity of measuring is in their company.

To measure the success of a Hyper-personalized Marketing program, they should understand and measure: response rate, conversion rate, value of their Tier 1 to Tier 3 customers—keep these results separate and do not create average ratio based on all the customers as it will skew the true value—lifetime value, value of prospects, requests and complaints at the call center, customer defection, retention, traffic and trends on the website, and more.

If marketers have already started to segment, they should also benchmark their measures per sub-segment of age, gender and demography (when available). As a reminder, they should measure what they can prior to implementing the new approach and measure all they can after implementing to understand and profile even more their customers in the Download the Xerox DM ROI Planner future. A new Hyper-personalized Marketing program should have a positive impact on the customer experience, and also positively impact the efficiency and ROI of several departments.

19 Case Studies

This section consists of a collection of success stories that illustrate the power of Hyper-personalized Marketing and demonstrates how Xerox helps clients transform their communication approach to achieve measurable results.

20 “ The flexibility, impressive print quality, and speed that the Trivor 2400 delivers cannot be matched by any other device on the market. It allows us to offer new value, new solutions, and more personalization for our customers. This is the future for us.” – Raphael Baillieul, Vprint Sales Manager

Vprint's Trivor® 2400 HF Inkjet Press was installed in January of 2017. They quickly reached volumes of 6M prints per month, and volume continues to grow as they engage more clients with their new capabilities.

NEW CAPABILITIES AND CUSTOMERS FIND SUCCESS WITH HYBRID APPLICATIONS EXTRAORDINARY RESULTS Vprint was able to quickly and seamlessly The flexibility of Trivor has enabled One hybrid retail catalog has generated integrate the Xerox® Trivor® 2400 HF Inkjet creative hybrid solutions that combine the such an impressive boost in online sales, Press into their existing manufacturing inkjet production of dynamic personalized the client has repeated the same campaign processes, expanding into new high-value content with either offset or digital printing seven times! The inside of the catalog features personalization capabilities without for higher-area coverage sections. variable pages filled with personalized product expanding costs. recommendations based on the customer’s This type of production environment purchase history while the static cover pages allows customers to take advantage In their first year of operation, they are printed on offset. successfully utilized Trivor to sell new hybrid of the effectiveness of full digital applications and drive an increase in personalization while maintaining the Highly personalized applications utilizing a Vprint profitable business, including jobs that run economics of offset for static elements. variety of stocks, such as loyalty card mailers, white paper-in vs. requiring offset shells. can also be brought together using this With these new capabilities, Vprint has approach. The possibilities are virtually endless. been able to balance volume,“The cost, flexibility, and impressive print quality and the speed that the Trivor inkjet quality in a whole new way. digital press delivers cannot be matched. It allows us to offer new value, new solutions and more personalization for our customers.” – Thierry Ngoma, Vprint Plant Manager

COMPLETELY CUSTOMIZED MULTIPRESS MAGAZINES Industry: DELIVER INCREDIBLE RETURNS Commercial Print Client: As a result of partnership between Xerox, Vprint, and Dataline, these Dataline Solutions magazines were fully personalized with stories, articles, images, and text Direct Marketing Provider: based on the recipient’s job title, location, and interests. Thirty thousand, Vprint three hundred hard copy and digital versions were created with unique Variable Information Suite: PURLs to measure year-over-year results – which were astounding. XMPie Digital Print Technology: • € 218,000 increased revenue Xerox® Trivor ® Production Press • Website hits increased 4X • Page views/Visitors increased 3X

Client Profile The Challenge The Results

Vprint, located in Belgium, is a leader of • Cultivate deeper loyalty and boost • Intelligent personalization yielded personalized direct marketing in Europe. business with personalized magazine 4x website hits The company specializes in large-volume, content • 3x page views per visitor personalized variable print (3 million pieces • Transform data into a personalized, per day, 700 million per year) with $25 • € 218,000 revenue increase multichannel direct marketing campaign million Euro revenue annually. Their client, ® ® to generate leads and drive purchase To learn more about the Xerox Trivor 2400 HF Inkjet Press, Dataline Solutions, is a market-leading activity online software company in Belgium specializing contact your Xerox representative or visit xerox.com/inkjet in automation software. The Solution

©2018 Xerox Corporation. All rights reserved. Xerox®, Xerox and Design®, and Trivor® are trademarks • Fully integrated campaign from of Xerox Corporation in the United States and/or other countries. 07/18 BR25015 development to management to production

• 30,300 hyper-personalized magazines fully personalized with stories, articles, images and text based on personal data, with unique PURL to measure results

• Personalized website with purchase offers and exclusive leadership content

• Data collected during each interaction to fuel future customization

21 CASE STUDY: Rethink CMYK

Challenge Clubline needed to directly target (from existing data) over 4,000 recipients living within a 25-mile radius of their new Rethink was commissioned by Clubline to deliver a Cross Walsall, Birmingham store and encourage them to attend Media marketing campaign to raise awareness and gauge the launch event. The event would also include the launch visitor attendance in advance of their new 2,000 sq. ft. store of Clubline Football’s own Customer Loyalty Program, opening event. introducing digital receipts, mobile rewards and bespoke offers & promotions to their customers for the very first time.

Solution

The Invitation Campaign Rethink produced the multichannel campaign using A supporting email was also sent to those recipients who had PersonalEffect TransMedia Pro - XMPie’s all-in-one not already registered their attendance after receiving the solution for creating and launching integrated, personalized print pieces. campaigns across every channel. Print collateral was produced on the Xerox iGen4.

For the invitation, Rethink produced a fully personalized letter and 8-page mailer for inserting into a printed envelope and mailing to the 4,000+ recipients. Included in the printed promotion was information on the opening day activities and an introduction to Clubline’s new Loyalty Program. Letter, mailer, and envelope were fully personalized to the recipient and included a ‘call to action’ for registering attendance online and thereby reserving an exclusive goody bag that could be claimed on the day of the event. Linking the recipients’ offline printed items to an online registration web page (PURL) was achieved using a printed QR code and friendly URL, either of which directed them to their personalized registration page. The target audience is incredibly passionate about RethinkThis PURL Cross-Media was created Marketing using XMPie’s Open XM technology. football and so we designed all the campaign This gave their web developers the freedom to fully collateral to be extremely eye-catching and relevant leverage any web, email and mobile media technology in order to harness that passion and to motivate the “Thiswhile solution still ensuring channels that alla significant personalized amount touch-points of Clubline’s in digital or printedrecipient promotions to take action. andthe communications rewards to the Loyalty stream customer,– Print and transforming Digital – were their brand engagementJoel Dickinson, in real time.” Business Development Director of synchronized– Amanda Dickinson, perfectly. Managing Director of Rethink CMYK Rethink CMYK

Industry:As well as registering attendance on their PURL, recipients Retailwere given the opportunity to amend personal details, Client:update communications preferences and refer-a-friend to Clubline Football the opening event. In the case of referring a friend, Rethink Direct Marketing Provider: Rethinkdelivered Cross-Media an additionalMarketing campaign to capture personal

Variableinformation Information and Suite: attendance from the referrals as ‘new data’. XMPieA generic® PersonalEffect web TransMediapage (GURL) was produced to provide Pro with Circle a link from Facebook and Twitter promotions and the Digital Print Technology: Xeroxnew® iGen respondent® Press data was quickly captured in order to personalize communications. Page 2 of 4

Client Profile The Solution The Results

Clubline Football is a leading UK football • Highly targeted and fully personalized • 24.46% click-through rate compared to (soccer) equipment supplier, offering a invitation campaign with print, email Sports Industry average of 3.35% wide selection of leading brand names in and PURL • 54.07% web conversion rate vs .5% sports equipment and teamware. • Loyalty Program mobile app and web average portal to provide a personalized The Challenge • Ability to refine significant amount experience tying them to loyalty of existing customer data and add • Deliver a multichannel event invitation rewards, offers and promotions new data through referral campaign campaign along with customer loyalty • Groundbreaking plug-in solution to program launch that raised awareness • Expanded customer reach to include capture live receipt data that integrated and helped them gauge visitor eCommerce and telephone sales seamlessly into existing Point of Sale attendance in advance to their new (POS) machines store opening. • Concise and tailored analytical reports using XMPie’s PersonalEffect Analytics, measuring key performance metrics

22 CASE STUDY: PremCom PremCom

RESULTS

• Referrals have increased. An uplift of 34% in new customers being referred to Countrywide was seen in February “With2017 as compared Circle to Februaryautomation, 2016 and of 114% we’re new customers bringing referred in prospectsMarch 2017 compared to to our March 2016.clients much more quickly • thanTurnaround ever from submitting before.” referral to receiving voucher decreased from three months to two weeks. • The entire experience for the customer has improved. • –The Marco Mortgage Poli, Consultants Managing have more Director confidence at in PremCom the new system. Since it was launched there has been a significant increase in the number of consultants actively using the scheme.

Industry: Commercial Print

Client: Countrywide Mortgage Services

Direct Marketing Provider: PremCom

Variable Information Suite: XMPie® Circle, PersonalEffect TransMedia Pro

Digital Print Technology: Xerox® iGen® Press

Critical Success Factors Lessons Learned

1. LeveragingClient Circle’s Profile storyboard feature allowed 1.The Solid Challenge technology works. There was no need to reinvent The Results PremCom to map out the entire new omnichannel the wheel when a proven solution foundation such as customerPremCom journey is for a theirleading client multichannel within a matter of print • XMPieCountrywide already existed. wanted to improve the • 114% increase of referrals year hours.management organization based in the UK 2. Periodicallycustomer customers experience were fornot receivinga referral the emails/ over year 2. Automationthat provides across all full the channelsservice broughtclient support efficiency, to letterscustomer due to acquisitionincorrect input program from the sales force; this is • Increased efficiency from 3-month leadingseveral to time high-profile and cost savings. brands and blue-chip nowinvolving being rectified vouchers during training sessions. 3. Having a progressive and technology-oriented customer to 2-week turnaround lookingcompanies, to improve includingcustomer satisfaction, Countrywide achieve cost savingsMortgage and better Services, management the offered UK’s largesta window of The SolutionPeople want to work with us because with the • Vastly improved customer experience, XMPie platform, we can offer extra services to opportunitymortgage for PremCom broker. to show what they could do their clients—not just print. response time and other vital metrics with automation. • XMPie® Circle, an interactive digital storyboardMarco Poli, for Managing managing Director, and PremCom • Customer reach to include eCommerce www.xmpie.com [email protected] automating cross-media campaigns and telephone sales © 2017 XMPie®, A Xerox Company. All rights reserved. XMPie, the XMPie logo, and• the PersonalEffect slogan “one to one in one” TransMedia Pro for are trademarks or registered trademarks of XMPie. All other names are property of their respective owners. • Increased utilization delivering cross-media campaigns A4 EN 12-Jul-17 that span print, email and web Page 4 of 4 • Open XM technology for print and digital touchpoint personalization

23 Ford Motor Company, USA

“The campaign was a huge success, and now we are rolling it out across Ford’s entire portfolio of extended service products. Simply put – the campaign will drive millions of dollars into our extended warranty business.” – Mark Bardush, National Sales and Marketing Manager Extended Service Business, Ford Motor Company Data-Driven Self-Mailer

Industry:

F Automotive E Client: Ford Motor Company, USA G I G A Direct Marketing Provider: Budco

Variable Information Suite: XMPie® PersonalEffect TransMedia Pro

Digital Print Technology: Xerox® iGen® Press

H

J K

B C

D Client Profile The Solution E The Results L The Ford Motor Company produces and • Customized, one-to-one messaging and • 35.7% increase in sales sells Ford, Mercury, Lincoln and Volvo cars printed letters • The response rate of the fully variable and trucks. The company is # 11 on the • More graphical creative approach using self-mailer was 5.7% greater than the Fortune 500 list of top U.S. companies, A E a self-mailer format existing basic letter with Type worldwide of truck automotive revenue in Gender image B Name F City the billions. • Variable messaging and images • Reduce production costs by 3.2% Year of vehicle G Variable messaging C throughout to generate a livelier, more D Warranty expiration date H Pricing of plans • Adopting techniques from the test The Challenge eye-catching look and feel with minimal I Name campaign for the F150 and other ESP text, but powerful image • Increase sales of Extended Service J Price expiration date campaigns

Contracts in one of the worst economic K •Warranty Sought start date to create a sense of urgency • Projecting that the new approach will climates in the history of the U.S. auto L VINamong F-150 trucks owner to mitigate generate millions of dollars in additional industry future repair costs by purchasing an annual sales extended service contract • Extremely tight credit and low consumer confidence • The team also sought to emphasize that 5 interest-free financing was available, and • Effort to boost extended service contract purchases could be made easily sales for Ford cars and trucks

• ESP direct mail pieces were sent to vehicle owners at various intervals throughout the first three years of ownership. Upgrade personalized direct mail letter used to generate Extended Service Plan sales

24 Heritage Education Funds Client Benefi ts Close-up

Heritage Education Funds Inc. is one of Canada’s premier providers of Printing Price Comparison: Xerox 1:1 vs. Traditional Offset Registered Education Savings Plans (RESPs). With assets approaching $1 billion, Xerox Commercial General Offset the company offers some of Canada’s highest-performing, safest and most flexible Based on 20,000 Pieces Printers Market RESPs. Headquartered in Toronto, the company employs 80 people and has more Printing $7,800.00 $3,975.00 than 1,700 sales representatives across the country. Business Reply Envelopes $1,917.00 $1,917.00 Outer Envelopes $2,079.00 $2,079.00 Lettershop $2,664.00 $2,664.00

Heritage Education Funds Total: $14,460.00 $10,635.00

“By compelling so many of our clients to increase their monthly contributions, theCost of printed piece $0.72 $0.53 customer lifetime value of the Xerox hyper-personalized piece is 400 times greaterData fi le preparation than our traditional marketing piece.” – Jason Maguire, Executive Vice President, Marketing, Heritage Education Fund File prep for addressing $0.00 $1,600.00 The Challenge executive vice president, Marketing, Heritage Data processing and testing The Xerox 1:1 Lab Education Funds. “The piece must compel Industry: VPOD Program build $1,500.00 $0.00 Fundamental to Heritage’s business success Education them to respond and ideally to increase their Creation of a VPS fi le ready to print $4,800.00 $0.00 As a global leader in digital and is educating its clients on the necessity of Client: RESP contributions.” Heritage Education Funds Inc. variable colour printing technology, putting aside money today in order to pay Direct Marketing Provider:Total $6,300.00 $1,600.00 The direct mail piece issued by Heritage has Budco we are helping our customers leverage for their children’s future post-secondary Variable Information Suite: ® Cost per record $0.32 $0.08 the benefi ts of customized marketing education. typically been pre-printed on an offset press XMPie PersonalEffect TransMedia Pro Digital Print Technology:Postage $9,800.00 $9,800.00 through the Xerox 1:1 Lab. and then passed through a laser or inkjet ® ® A key challenge for Heritage is clearly Xerox iGen Press printer to include simple personalization Cost per piece 0.49 0.49 demonstrating to its clients, in concrete fiscal such as children’s names and year-to-date terms, the value of investing in an RESP, as Total cost of piece $1.53 $1.10 contributions. A generic call to action is Client Profile • Include simple personalization such agent’s signature – an important detail as children’s names and year-to-date in an industry that depends greatly on Heritage Education Funds Inc. is one of many clients find it difficult to forecast the contributions the agent-client relationship accompanied by a 1-800 number and the Canada’s premier providers of Registered ROI potentially significant costs they will face 10 or Education Saving Plans (RESPs). • Heritage had not seen an increase in its • Graphs depicting the current and future head office location, along with the same Fundamental to Heritage’s business direct mail response rate in the past value of each child’s RESP.Customer Forecasts on Acquisition Cost $50.16 $63.58 more years down the road. success is educating its clients on the three years the cost for each child’s education were stock photos on each piece. necessity of putting aside money today included, compelling clients to respond • Return on investment was stagnant in order to pay for their children’s future Number of units sold 741 422 Each year Heritage conducts a direct mail post-secondary education. With assets However, standard direct mail response rates • Goal was to increase response rates over The Results approaching $1 billion, the company offers the traditional mail piece and to Cost of acquisition per unit $20.65 $26.07 • Customer lifetime value of hyper- campaign informing clients that, as December some of Canada’s highest-performing, persuade clients to increase their current have been less than stellar. Heritage had not personalized piece is 400 times greater safest and most flexible RESPs. RESP contribution 31 approaches, so does their opportunity to Headquartered in Toronto, the company than its traditional marketing piece seen an increase in its response rate in the employs 80 people and has more than The Solution • Overall rate of return increased by 191% take advantage of the federal government’s 1,700 sales representatives across the past three years and its return on investment country. • Each client in the hyper-personalized • Over 91% of responding clients did what Canada Education Savings Grant Program– sample would receive a direct mail piece was asked of them was stagnant. with dynamic content and images that The Challenge • Responding clients increased their which provides federal government grants of clearly reflected the age and gender of Heritage has gained significant benefits • Responding clients increased their monthly monthly payment by $40 on average • Demonstrating to its clients, in concrete their children. For example, a client with fiscal terms, the value of investing in a up to $400 per eligible child, per calendar year a five-year-old daughter enrolled in a • 10 times higher responsesince rate for thetesting a 1:1 colour marketing solution payments by $40 on average RESP, as many clients find it difficult to RESP would receive a direct mail piece hyper-personalized piece forecast the potentially significant costs – when they contribute to an RESP. that featured photos of a five-year-old in the first three weeks fromof the campaign Xerox: they will face 10 or more years down girl. As well, the text would automatically • 10 times higher response rate for the 1:1 piece the road reflect the gender and number of • 76% increase in the number of RESP “Our direct mail piece must deliver the children – whether male, female or plural units sold • Lifetime value of 1:1 piece is 400 times greater in the first three weeks of the campaign • The direct mail piece by Heritage message that time to leverage the government has typically been pre-printed on an • Instead of the generic contact • Cost of acquiring a customerthan reduced its traditional marketing piece offset press information, each hyper-personalized by 21% • 76 percent increase in the number of RESP grant is running out,” says Jason Maguire, piece includes the respective Heritage • Overall rate of return increased by 191 percent units sold 25 • Over 91 percent of responding clients did what • Cost of acquiring a customer reduced by was asked of them 21 percent

2 7 Solution Components Personalized Pocket Guide

Personalized pocket guide Front and back covers Inside page

Maine Office of Tourism

“The results of the Hyper-personalized Lab illustrated that personalized direct marketing resonates with our audience. Potential visitors to Maine responded very positively receiving information about their individual interests. As a bonus, we learned more about them, which will help us with future marketing efforts.” – Pat Eltman, Director of the Maine Office of Tourism Specifi c Name Specifi c Top image Name Personalized Static Copy and regional region changes letter promotion image Cover, personalized pocket guide Personalized postcard Generic travel planner website information based on indicating based on Industry: information season and interest areas activity Travel and Tourismprovided based region of interest on visitor interest Client: response Maine Office of Tourism

Direct Marketing Provider: DMM

Digital Print Technology: Xerox® iGen® Press

Inside page Personalized Package • Generic travel planner* Client Profile The Challenge • A response device in the form of a postcard soliciting additional • Personalized postcard – includes variableAs the marketing organization for the • Reaching every hiker or beachcomber or information from the recipient graphic based on region of visitor interestlargest industry in the state of Maine, antique-seeker with the information that and L.L. Bean offer was designed the Maine Office of Tourism serves a wide is most relevant to their interests • Specifi c region information on activities changes from visitor to visitor Updated events and image based • Relevant, data-driven customized pocketrange of travel-related businesses and The Results on time of year visitor chose to guide – 1 sheet folded to 5" x 6.875" • Persuade them to choose Maine • Relevant images and copy a broad spectrum of potential visitors travel to Maine • 8 panels of specifi c information user requested • 24.1% improved response rate with diverse interests. Charged with • Current marketing efforts are traditional • Activities shown based on season and visitor’s interest *Note: travel planner was included in both packages. over control responsibility for supporting and growing in nature: TV, trade show, mass tourism in all areas of the state throughout marketing of email and direct mail • Over 50% of those who responded the year, the Maine Office of Tourism provided feedback 4 serves as the marketing organization for • Increasing visitor traffic in a competitive 5 the state’s many travel related businesses. marketplace • Anecdotal comments more refined There is a great deal riding on their and actionable successful outreach to a broad array of The Solution • 73% indicated personalized pocket potential visitors with a wide range of • Create the traveler-specific pocket guide, guide was helpful diverse interests. with 145,152 possible variations and • 96% are planning to visit Maine in postcards the coming year • Recipients of the fulfillment mailing • The Maine Office of Tourism projected would be individuals who had visited the 23.4% more revenue generated Maine Office of Tourism website (visitmain.com) and requested the free travel planner

• Each pocket guide would be a unique document incorporating the activities, regions and seasons specified by the potential visitor to Maine

26 The Solution

Doing the Homework The team worked together to strategize • Encourage campus visits during Scholar A Name personalization the relevant content for the creative and Saturdays. Previous Miami research had Once they had committed to the Lab, Miami design elements; Miami University took determined that students who visited A B Gender-based image of actual student University and b+p+t communication solutions A responsibility for ensuring that the “look campus, especially during the highly including name, year of graduation and threw themselves into the process. It was and feel” of the new materials would be regarded Scholar Saturdays dedicated to student quote already late in the school’s recruitment consistent with the overall branding; and b+p+t Honors programming, were much more likely B program timeline when the project began, so C Major specifi c image brought in Trekk Cross-Media, a full-service to apply to Miami than students who had not Jane Doe, the implementation timeline for the ambitious ’11 marketing agency experienced in variable visited the campus. new campaign was shorter than usual. The D Survey to further understand cross-media communications, to create the Miami University deadline for students to apply to the Honors • Convert as many qualifi ed suspects into C individual student interests 1-to-1 programming for the personalized Program was November 1. In previous years, prospects, and prospects into applicants applications using XMPie variable software. A Name personalization Miami had sent an Initial Search Piece to as possible, enabling the school to increase The Xerox 1:1 Lab devised a test to compare a large purchased list of high-ability high enrollment in Miami University’s Honors “In the past, I have found it helpful to look at web traffic as an indicator of prospective the effectiveness of a direct mail program school seniors in early July and a follow-up Program without lowering the standards customized to refl ect the individual interests of student interest in our programD at this early stage in the app process. I just pulled Inquiry Piece to a narrowed-down list in early for admission. each targeted student vs. the “one-size-fi ts-all” September. This time, with a later start and our web stats, and I was honestly shocked at the results. Comparing the time period static direct mail approach Miami had used in additional variable marketing pieces to plan The Campaign Rollout the past. and produce, the fi rst recruitment mailing from Working collaboratively, Miami University, when our application became available to the period year, unique visitors to our site have the 1:1 Lab wouldn’t drop until the second Preparing for the Test b+p+t communication solutions, Trekk increased by 40%, the number of first-time visitors has increased by 42% and the week of August. Cross-Media and the Xerox 1:1 Lab drew up For the purpose of this campaign, students schedules, lined up resources and produced In the meantime, a great deal of strategic and who had no previous known contact with number of returning visitors has increased by 21%.” printed pieces for a multi-faceted campaign. practical “homework” had to be done: Miami University, but whose basic academic – Kristy Burton, Associate Director of the Honors & Scholars Program at Miami University profi le (provided by the College Board andIndustry: In early August, the variable brochures and • Target audiences for the mailings had to be other data suppliers) fi t the requirementsTravel of andstatic Tourism brochures were mailed. The control defi ned according to how much information the Honors Program, would be considered portion of the campaign consisted of a Miami already had about them. Had they Industry: “suspects.” Students known to have expressedClient: traditional static self-mailer brochure with a been in contact with Miami, or were they A Education some level of interest in the Miami UniversityMaine Officeblank ofBRC Tourism similar to Miami Honors recruitment “cold calls” selected for their academic C Honors Program would be considered brochures from previous years. The control profi les? Were they male or female? What Client: “prospects.” Direct Marketingbrochure, with Provider: a personalized URL, was sent to C B B were their expressed areas of interest? A Miami University Inc. DMM more than 20,000 qualifi ed high school seniors. The plan was to extend a multi-hit campaign • Once audience data had been The test portion of the campaign consisted of Direct Marketing Provider: through the application deadline, giving Miami categorized, it had to be correlated to Digital Printa variable Technology: brochure with a pre-populated BRC maximum exposure in the abbreviated time ® ® b+p+t communicationE solutions Miami’s existing creative assets (campus Xerox iGenand a Presspersonalized URL. This brochure was sent available. By incorporating email follow-up, and student photography, academic and to another list of more than 20,000 qualifi ed D Digital Print Technology: dedicated phone support from pre-selected B co-curricular messaging, targeted calls to high school seniors. Follow-up emails were ® ® Miami students and admission programming Xerox iGen Press C action) to maximize the relevance of the conducted several days after the mail drop. appropriate to each targeted student, the personalized mailings and increase the B goals of the campaign were to: In the second phase of the campaign, likelihood of response. postcards promoting campus visits on Scholar • Drive response to a personalized URL • Finally, 1-to-1 marketing pieces incorporating Saturdays were sent to prospects with an email designed to convey more relevant personalized messages and images had to follow-up to non-responders several days later. information to interested students about the be designed and developed, including a new A second planned Scholar Saturdays postcard, A Image specifi c to major A Personalized URL Miami Honor’s Program and to capture more customized Honors brochure, postcard and PURL reminder and email follow-up was relevant information about the potential PURL utilizing variable data and messaging. canceled due to overwhelming response to the B Image specifi c to gender B Text based on major applicant through a high-value survey. Client Profile The Solution The Results fi rst postcard mailing. Students who completed the survey would C Image based on student visited or not C Name personalization then be contacted by Honors peers whose visitedMiami campus University defies expectations. For • Create a more strategic approach to • Surpassed the target enrollment D interests most closely “matched” those of one thing, it’s not where you might think it direct marketing Address efforts pre-populated versus “a more number by over 30% the respondents. is. Miami University isn’t perched at the is better approach” of mailing to high E Image based on major • 90.5% of the student enrollment had sunny southern tip of Florida — it’s nestled number of prospects received the data-driven mailer 4 in the picturesque college town of Oxford 5 • The Miami University campaign in southern Ohio. A public university with a • 1,466% increase in response over integrated relevance in direct mail, email long, proud history (poet Robert Frost once the control and personalized URLs to engage with called it “the most beautiful college there potential college-bound students is”), Miami University also has an exciting • Over 6,000% advantage with the data-driven mailer for suspects vision for the future. And nowhere is that • 1-to-1 marketing pieces incorporating converting to prospects vision more apparent than in the school’s personalized messages and images were prestigious Honors Program. designed and developed, including a • Decreased print pieces by 29% using new, customized Honors brochure, the targeted approach The Challenge postcard and PURL utilizing variable data and messaging. Follow-up emails • Increase enrollment to the Honors were conducted several days after the Program at Miami University, attracting mail drop high-performing college bound students • Postcards promoting campus visits • Increase the number of prospective on Scholar Saturdays were sent to Honors applicants prospects with an email follow-up • Increase the number of students to to nonresponders several days later the on-campus visitor event

• Identify best practices for more strategic direct marketing versus mass marketing

27 The Magic of Baseball

Baseball holds a special place in the hearts York City and the surrounding tri-state area The Team Ethic The Game Plan – Target Groups group sales campaigns against data-driven of the group leader (including a high-impact of many Americans. Fans of all ages have (and nearly three decades of holding the pieces customized with pertinent variable photo with the group leader’s name on the In a game situation, teamwork is essential. Working with Tina Mannix, Senior Director, fond memories of long, balmy summer baseball attendance record for the New information. Groups were segmented back of a Mets jersey). This acknowledged the As a member of the Mets behind-the-scenes Marketing for the New York Mets, and Kirk evenings spent on small town bleachers or in York area), the New York Mets entered a according to categories such as youth special status of the group leader, reinforced team, the Xerox Graphic Communications King, Senior Manager, Season Tickets & Group big city ballparks, cheering for their favorite new era with their move to a new ballpark, baseball, scout groups, churches, schools, the importance of the relationship between New York Mets Marketing group offered to lead and fund Sales, the 1:1 Lab team analyzed marketing team. Baseball has it all: Drama. Heartbreak. Citi Field. The club was confi dent that fans business groups, etc., which enabled the 1:1 the Mets and the groups who support the the 1:1 Lab program test. Xerox brought in materials, histories and schedules from prior Redemption. Triumph. It’s a game of physical would embrace the experience at the new team to vary messages and images according team, and reminded the group contact that it the Pente Corporation, an experienced ticket sales efforts. The Mets had already prowess and mental agility, with plenty of fi eld; the challenge was to get them there in to what was most likely to appeal to each was time to seize the initiative and make plans Toronto-based marketing and advertising started marketing to season ticket holders for pauses in the action for reviewing, rehashing, the fi rst place. With a long season of seats segment. Variable copy refl ected each group’s so as not to miss out on the coming season. fi rm, to act as chief strategists for the the 2010 season, so it was decided that the relaxing (and refreshments) in the stands. In to fi ll despite a stubbornly sluggish economy, projected interest in specifi c theme days and The data-driven mailer resulted in a 57.2%campaign. Pente increase would leverage their in groupXerox ticket 1:1 Lab would focussales exclusively over on group the control The fi rst mailing for the Xerox 1:1 Lab test short, baseball is a form of entertainment the Mets looked to new ways to engage and group seating options. A wealth of available expertise in relevant direct marketing to ticket sales. program was sent on April 7th to a list of so compelling and so linked to our national energize their fan base. Mets imagery – including photos of different defi ne the 1:1 program strategy and content 6,800 group leaders. Half of the mailers were psyche that it seems like it should sell itself. Group sales were clearly important to the groups at actual games, action shots of the mailer, with 36.3% moreAs a sponsor ofgroups the New York Mets, responding Xerox – analyzing available to data the and providing campaign’s call to action from the static mass-marketing pieces similar to those Only that’s not the way it works. Mets operation; the Group Sales department team, and pictures of the new ballpark – gave was dedicated to improving both the fan creative design and copywriting for both the the Mets had sent in the past. The other 3,400 had a dedicated sales staff of 12 people and the Lab a powerful resource for customizing In a major metropolitan area like New York, experience and the business effectiveness of static and variable marketing pieces. The mailers were customized utilizing variable variable mailings than from the static mailings. Revenue froma database the of 2,500–3,000 data-driven groups that had the mailer visual impact of each was 1:1 mailing piece. baseball has to compete with so many this storied baseball franchise. Faced with the 1:1 programming, variable digital printing information mined from the team’s group taken advantage of group offers in the past. other activities and distractions vying for challenge of driving up attendance numbers (using XMPie® and iGen4®) and mail services sales database and purchased databases. On For the Lab, the Mets purchased additional Executing the Play entertainment dollars. Professional baseball for the 2010 season at Citi Field, Xerox offered would be handled by RP Graphics Group, a April 30th, a follow-up mailing was sent to the 40.9% higher than revenue from the static mailer. And the Newmailing lists toYork bring the number Mets of targeted exceeded The data the Mets were their holding on teams like the New York Mets need winning the Mets the opportunity to participate in a specialty printer based in Mississauga, Ontario, same divided list, with a simple disclaimer for recipients to 6,800. Since the total audience organizations that had bought group tickets strategies both on the fi eld and in the Xerox 1:1 Lab. Available by invitation only to with more than 30 years of experience serving those who had already responded to the fi rst for the campaign was relatively small, the in the past included the organization name, 2010marketplace. group They have toticket break through thesales Xerox Graphic goal, Arts customers, with the Xerox an 1:1 80%multiple industries increase with a wide range ofover the previous season. mailing. The call to action on both the fi rst 1:1 team decided to send two mailings to contact name, address and email address. clutter in a highly competitive urban market, Lab sets up and carries out targeted marketing custom print solutions. The New York Mets and second mailings was to purchase group the same list several weeks apart, effectively This data was used to customize the variable entice fans to spend hard-earned money to tests pitting a company’s static “one size fi ts would work closely with the rest of this tickets for the upcoming 2010 New York Mets doubling the impact of the campaign. marketing pieces with the name of the buy tickets – and then work tirelessly to make all” direct mail pieces against relevant direct experienced 1:1 team to ensure that the new baseball season at Citi Field. targeted group, copy refl ecting the group’s sure the game experience lives up to fan mail pieces that utilize 1:1 variable data to campaign adhered to the requirements of The Lab was set up to test static direct category and likely interests, and the name expectations. That’s the business of baseball. customize communications to each recipient. their brand and the look/feel/tone of their mail pieces like those used in previous Presented with the opportunity to improve overall marketing efforts. New Field, New Era their marketing game, the Mets stepped up to After nearly 50 seasons of playing professional the plate – and the game was on. baseball for fans from the boroughs of New A FirstIndustry: name C Timing – last year, couple of years or D Message determined on whether or Sports years past not they visited in the past at Citi Field or B Group name previous stadium

A Client: New York Mets F

Direct Marketing Provider: D A C WiredB Pente Corporation E B B G H B Digital Print Technology: Xerox® iGen® Press

A First name E 2 or 3 recommended group areas for F Contact name and address H Copy for 9 different group types 6 group sub-types B Last name G Copy for 19 different groups

2 3

Client Profile • Build brand awareness and loyalty The Results through targeted data-driven marketing After nearly 50 seasons of playing • Exceeded group ticket sales goal professional baseball for fans from the The Solution • Increased total group ticket sales by boroughs of New York City and the 80% over the previous year surrounding tri-state area (and nearly three • The New York Mets campaign used decades of holding the baseball creative segmented messaging and • The data-driven mailers generated a attendance record for the New York area), images to reach out to fans from diverse 57.2% increase in group ticket sales the New York Mets entered a new era with groups, encouraging them to make over the control mailer their move to a new ballpark, Citi Field. The group ticket reservations for the club was confident that fans would upcoming season • Increased the number of groups embrace the experience at the new field; responding by 36.3% versus the challenge was to get them there in the • Customize the variable marketing pieces the control first place. With a long season of seats to with the name of the targeted group, • Increased group sales revenue by fill despite a stubbornly sluggish economy, copy reflecting the group’s category and 40.9% over the control the Mets looked to new ways to engage likely interests, and the name of the and energize their fan base. group leader (including a high-impact photo with the group leader’s name on the back of a Mets jersey) The Challenge • Data-driven direct mail generated more • Driving up group ticket sales for the interest and sold more tickets than static upcoming Mets season mass mailings to diverse groups of sports • Strengthen the relationship between fans groups of fans and the • Create a Hyper-personalized direct Mets baseball team marketing program that can be • Increase group tickets sales over the replicated in other customer segments previous season’s totals of the market

28 Solidarity Fund QFL

“The Xerox Hyper-personalized Lab project enabled us to familiarize ourselves with a new production process and state-of-the-art technology. We also saw how efficient the method is and were able to perform a very positive cost/benefit analysis. We can now confidently foresee using the Xerox Hyper-personalized Lab approach to produce other Data-Driven 1:1 Communications in Action highly personalized communications on a wide scale.’’ – Sylvie Laferrière, Eng., PMP, Project Coordinator, Shareholder Projects

E Industry: Finance G

A H C Client: Solidarity Fund QFL

F Digital Print Technology: Xerox® iGen® Press

D

I

B

A C E G Personal information on the shareholder for The message and photo change depending The photo refl ects the shareholder’s age and Varies according to the shareholder’s age and identifi cation purposes on the age and sex of the shareholder and union/non-union status the time remaining before a retirement at the Client Profilewhether he or she is a union member The Solution age of 65 The Results B D F H The form changes according to the savings The content of the entire letter changes The map changes according to the shareholder’s The text describes benefi t changes according to option: payroll deduction (PD) or preauthorized according to the shareholder’s profi le and geographic location, indicating the Fund’s investments the shareholder’s access to PD or PW withdrawals (PW) The Solidarityparticular Fund circumstances, QFL his (the or her access Fund) to is a • Thein companies data or the jobs was created usedand maintained to in prepare a very • 155% increase in the number of PD and PW, and whether he or she is a the region union member labor-sponsored development capital fund personalized mail-out campaign I shareholders who chose to switch from Growth hypothesis according to age and whose primary mission is to help create, designed to convince the targetedpast contributions annual lump sum RRSP payments to

4 maintain and project jobs by investing in shareholder sample to change its RRSP monthly, automatic 5 payments Quebec-based small and medium-sized contributions to one of the systematic • A spectacular impact on reactivation: 3 companies. Its mission also involves RRSP savings options times the number of shareholders who offering its 573,000 shareholders a fair • Unlike the control piece, all the elements had discontinued their payroll deduction return. The Fund is a partner in 2,100 of the original campaign were simplified payment returned to monthly automatic companies and has helped create and and presented in a single document payments as compared to the control maintain over 105,000 jobs. adapted to each shareholder’s profile piece 17% reduction in total print and insertion costs The Challenge • A great variety of messages were planned on the basis of the many • Extrapolation of the Hyper-personalized • In its efforts to enhance shareholder shareholder-specific variables, adapting Lab test results to other highly loyalty, the challenge faced by the Fund almost every line of our document to personalized communications projects is to encourage shareholders who make each individual’s specific situation targeting all shareholders annual lump sum payments to change to systematic savings • Delivered the most relevant messages • The Hyper-personalized Lab personalized possible to each individual marketing piece is now mailed as • Consolidate its shareholder base by part of an ongoing monthly program building loyalty in several specific groups • Used each person’s specific situation to to re-engage clients show how the product was perfectly • Objective was to assess the potential suited to his or her needs • The Fund’s call center did not receive of a more personalized direct marketing any customer calls or complaints; campaign that would motivate a first in the Fund’s marketing shareholders to change their communication campaign history contribution methods

• Enhance shareholders’ loyalty to ensure long-term, sustainable growth

29 Volkswagen, Belgium

“The test tells us that traditional direct mail still works, even during one of the most turbulent periods in the history of the U.S. auto industry. The key is to not overcomplicate it. Apply basic techniques based on a good offer, good segmentation and good timing. Personalized Catalogs And relevant personalization can drive improved performance, creating meaningful customer dialogue that increases responses and product sales.” – Jeff Sierra, Vice President of Marketing and Product Development, Budco

Industry: Automotive

B Client: A A D’Ieteren and Volkswagen, Belgium A B A A

B B Variable Information Suite: B ® B XMPie software B D B Digital Print Technology: B A Xerox® iGen® Press

B A

B

E

Client ProfileA • Low response rate averaging 1.5% The Results B C D’Ieteren is a publicly traded company • Conversion rate of showroom visits • Point-of-Sale traffic increased by a factor

based inB Belgium whose roots date back at 12% of 10 E to 1805. Today, D’Ieteren distributes • 15 to 20% of total recipients (compared Volkswagen, Audi, SEAT, Skoda, Bentley,C The Solution A Name to a historic response rate of 1.5%) came Lamborghini, Bugatti, Porsche and Yamaha B Customized message based on three into the showroom with the personalized different categories of customer wishes vehicles; is the majority shareholder of Avis • The client and the Xerox Hyper- for their automobile choice brochure in hand, representing an Europe; and is the world leader in the repair personalized Lab devised a highly increase of 1,067% in showroom visitors and replacement of vehicle glass through personalized approach, designed to A Imagery changes based on auto reach prospects four to six months its Belron division. • 12% of recipients took a test drive B Copy changes based on auto before a potential purchase decision C Cost changes dependent on make and model – more than 1,000% over traditional

The D Challenge Name • A unique customized catalogue featuring methods the top three vehicle models most likely • Multi-layer E Auto model pricing mass based communication on recipient interest • 50% of those taking a test drive 4 to appeal to the prospect and messaging 5 purchased a vehicle versus a normal • Mass media product-centric approach relative to top individual selection 12% conversation rate with no distinction criteria, such as space, security, power, etc. • Conservative estimates are a profit • Offset high-quality catalogue distributed increase in excess of 26% per door-to-door • The personalized piece would also vehicle sold include a customized financial proposal • Catalogue was promoting 22 models of for each recipient • 81% of recipients recalled a personalized cars inside marketing piece and 39% were • Special offer to further entice the • Generic content and features interested in reacting to offer recipient to the showroom, such as an • Two million copies of generic catalogues, extended warranty if the recipient distributed 3 times brought the brochure to the showroom a year and ultimately purchased a vehicle

• No personalized advice outside showrooms

30 For more information, email us at: [email protected].

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