Marketing PerformanceImprovement in Action

Ten Ways to Enhance Your Bottom LinePresented by Ted Perkovich

VP Consulting ServicesCFM Direct

WCBF Six Sigma in Sales and MarketingSeptember 8-9, 2005

Welcome

Agenda• Who We Are• Quick Exercise

Ten Proven Methodsfor Improving Performance “Taking it Home”

Topline Revenue + Bottomline Performance = Maximum ROI

Increase Customer Base, Lifecycle, and Revenue

Response Marketing Agency

Targeting, Creativity, Integration

Reduce Cost and Improve Efficiency

Productivity, Automation, and Optimization

Marketing “Value Engineers”

Data Driven Strategy + Flawless Execution = Maximum ROI

Creative and Marketing Communications

Marketing and Business Strategy

Research, Data, and Analytics

Channel Integration and Efficiency

Campaign and Production Management

Performance Improvement

Who Does CFM Work With?

Quick Exercise

How Would You Go About Improving ROI?

Quick Exercise

Great Creative!

Ten Proven Methods to Improve Performance

Thought Provokers and Possible Projects in Marketing Performance Improvement

DefineMeasure

AnalyzeImprove

Control

What’s the Potential?

Case Histories • Kit Optimization Savings of

$1.2MM annually• Reduction in Campaign Timeline

from 17 to 7 Weeks• Inventory Management savings of

$400,000• 30% Lift from Early Engagement

Programs

Improve Campaign Management Process

Review of Current Processes

• Acquisition• CRM Programs

Redefine and Optimize Processes

• Reduce Campaign Timelines• Provide Scalability• Address Quality Issues

Set a Discipline for Testing

Guidelines • Establish Controls (Bases)• Versioning• Functionally Isolated Test Cells• Purified Analysis Feeds Future

Campaigns

Optimize Your Channel Mix

Integrate Multiple Channels

• Interactive• Print• Mail• Alt Media

Customer Communication TimelinesTest Order

Re-examine List Processing Rules

Guidelines • Establish Traceability• FLUX Report• Document Templates• Ensure Postal Processing• Merge/Purge Match Logic• Cross-Campaign Consistency

Data Drives Creative Development

Guidelines • Run Analysis to Determine

ResponseCapture Response DataMarry Data with Demographics, Other Append DataRun Analytics to Determine “Why Did They Buy?”

Refine Creatives Based on Response AnalyticsQuestion: What if You Could Predict Response based on “Attitudinal Buying” vs. Historical Data?

Engage New Customers Immediately

Guidelines

• Develop “Early Engagement” Programs

• Stream of New Customer Communications

• Coordinated• Targeted• Tested• Impactful• Value-Added• Incremental Lift

Month 0 Month 1 Month 2 Month 3 Month 4 Month 5

Early Engagement Example

Month 0 Month 1 Month 2 Month 3 Month 4 Month 5

BT Checks

Welcome

Activation Call

(OBTM)

Rate

ReinforcementRate Sale

Recurring

Payments

Usage

Spend & Get

Reward

Reinforcement

Welcome Benefit

Reinforcement

Recurring

Payments

Benefit

Reinforcement

DM

Welcome

Statement

InsertEmail Communication

Card &

Disclosure

Best Customer

Coupons

Promo Checks

Free Additional

Cards

Customer

Thank You

Reward

Reinforcement

Standardize Kit Formats

What to Do

• Consolidate & Standardize Pre-Print

• Consolidate & Standardize Laser (Imaging)

• Waved Fulfillment• Digital Printing• Increase Variable Field Usage

Variable Field Usage Example

File Layout

Letter Text

Pre-empt Customer Churn

Action Plan

• Database Modeling Identification of “At Risk” Customers

• Build Marketing Programs to Re-engage

• Migrate to New Products if Necessary

Enhance Inventory Management

To Do’s

• Streamline Overall Process• Integrate Vendor Reporting with

Usage• Eliminate Obsolete Materials• Periodic Onsite Audits• Effective and Accurate Waste

Accounting• Targeted Automation

Inventory Management Example

Automate Marketing Processes

To Do’s

• New Systems• Lose the Excel

Matrices• Mature Tools

ChordiantUnicaMarketing PilotAprimoCampaign Runner

Internal Development

Marketing Automation Example

ProcessEnrollments

EnrollmentDatabase

MaintainSeedList

Business/KitChanges

CreateFulfillment

File

CreateVendor

ComponentryMap

Audit andManagement

Reports

ComponentryReports

ProcessFulfillment

File

LaserMaterials

AssembleKits

VendorDatabase

Audit, Monitor,and Manage

VendorProcessing

FulfillmentFile Creation

Reports

“Future” FulfillmentProcess

September 20, 2002

“ProductionProcessing”

Apply business rules Reformat Enhanced content - kit

code Includes seeds

Automaticassignment of KitCode

ReplacesFulfillment Matrix

Basic validation Code 1 Suspense processing Reformat data for

machinery

W.I.P.W.I.P. W.I.P.

Vendor

TMVendor

Data

Integrated Work-in-Progress

3602 Analysis Inventory Status/

Reprint Analysis

Taking it Home

Enhancing the Bottom Line: There’s More to ROI Than Meets the Eye

Thank You!

In Closing

• Questions and Comments• Contact Information:

Ted PerkovichVice President of Consulting Services

One Tower Lane, Suite 2400 Oakbrook Terrace, IL 60181

Telephone: 630-954-4289E-mail: tperkovich@cfmdirect.com