revolutionize your direct marketing with social/mobile! - 10 strategies and 20 case studies

Yosi N. HeberPresident

Oxford Hill Partners, LLC

October 3, 2011

Revolutionize Your Direct MarketingWith Social Networking/Mobile!10 Strategies & 24 Case Studies

DMA 2011 – Boston

© Copyright 2011 by Oxford Hill Partners, LLC. All Rights Reserved. The EQ Pulse™ measuring system, methodology, and business process are patent pending. 3

What We’ll Cover Today

The Opportunity to Broaden Your Existing Direct Marketing Efforts

A “Framework” for Strategic Digital Revenue Growth– Social/Mobile’s “Ten Strategic Revenue Drivers”

Twenty-four Mini Case Studies – Illustrating the Ten Drivers

Leveraging the “Social Circle” for Word of Mouth. The “EQ Pulse™” – Web 2.0 Strategic Framework Big Picture Example & Case Study The World of Mobile Marketing A New Mobile Marketing “Framework” How to Apply these Principles to Your Business

*Time for Q & A at the End*


Oxford Hill Partners, LLC – What We Do

Oxford Hill Partners, LLC is a strategic marketing firm which advises companies with executive level general management and marketing strategy, and the integration of new digital media into their overall business. Our patent pending EQ Pulse™ and EQ Pulse™ – Web 2.0 analytic processes have already been conducted for hundreds of brands around the globe.

We’ve been brought in by twenty five of the largest and well known multinational companies in the world to provide marketing, branding, sales, organizational, financial, website, digital, Web 2.0, and general strategy advice:

Air Cell

American Standard

Cherry Aerospace

Clorox Company

Con Agra Foods

Dannon Company

Direct Marketing Assoc.

Harvard Drug Group

Krispy Kreme Doughnuts

Nelsons Dr. Bach

Nestle

Novartis Consumer Health

Pitney Bowes

Procter & Gamble

Reader’s Digest

Reckitt Benckiser

Rubbermaid/Graco

Textron Corporation

Telezygology

United Health Group


Our Thinking and Our Leadership

Our “cutting edge” thinking has been featured around the world: At Industry Conferences such as DMA, Conference Board, IIR, Ad:Tech, E-Metrics Summit, and Search

Engine Strategies. At Business Schools such as Harvard, Wharton and Columbia. At in-house senior executive Corporate Seminars. In well known publications such as Advertising Age, DM News and Wharton Publishing. On a variety of podcasts and blogs such as Webmaster Radio, I-Media Connection and Podfeed.

Twenty three year track record including VP, CMO and General Management positions across multiple industries.

Fifteen years of classical consumer marketing including twelve at Kraft General Foods and Dannon (US and Europe).

– Invented the $550 million kid yogurt category.– Grew Dannon Light to become America’s #1 yogurt. Was a pioneer in sales “category/customer

management”.– Introduced most successful new kid cereal of the decade…Post Marshmallow Alpha Bits.

Ten years of extensive, profit generating, digital achievements including four years as CMO of IAC/InterActiveCorp’s Entertainment Division, part of Barry Diller’s internet marketing conglomerate where he worked with sister companies Expedia, Hotels.com, Lending Tree, Ticketmaster, and Match.com.

Wharton MBA Board member – Wharton Global Consulting Practicum.

Yosi Heber (who founded OHP) has extensive senior level experience guiding some of the largest brands in the world:


The Opportunity

Better leverage your existing website?

Tap into the power of Web 2.0, social networking,

word of mouth, and mobile to increase consumer

engagement?

Help you generate significant new and incremental

revenue for your business?

Drive incremental profit for your company?

How do you take your existing Direct Marketing programs

and widen their scope to leverage the power of social

networking, word of mouth, and mobile to:


Brand’s Overall Web 2.0

Capabilities and Its

Ability to Drive Revenue

Initial Customer

“Engagement”

Customer Education &

Entertainment

2

3

EQ Pulse™ – Web 2.0 Patent Pending MethodologySocial Networking & Mobile Ten “Strategic Revenue Drivers”

Word of Mouth &

Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8

=10

Relationship Building & Customer Retention

Brand Building & Branded

“Advocacy”

Inbound To Customer (Brand Push)=

= Outbound From Customer (Consumer Push)

1 4

5

6

“Call to Action” & Revenue

Maximization

9



Entertainment

2

1

Initial Customer

“Engagement”

3“Call to Action”

& Revenue Maximization

Word of Mouth &

Viral

Cross Consumer

“Interaction”

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8

10Relationship Building & Customer Retention


“Advocacy”

4

5

6

9

Active Customer

“Participation”


Case Study #1 – Initial Customer “Engagement” – Cutting Edge Pharmaceutical Products

Approach:

Generate trial of a new product leveraging search engine marketing to provide a free incentive.

Case Study:

Lunesta Sleep Aid (Rx)


Case Study #1 (Cont.) – Lunesta Sleep Aid – Paid Search Engine Marketing With Free Trial Incentive


Case Study #1 (Cont.) – Lunesta – Paid Search Engine Marketing With Custom Landing Page


Case Study #2Creative Customer Engagement Via Mobile Devices

Approach:

Get people’s attention by requesting they take a picture of a “QR Code” with their mobile phone.

– Phone returns with a video, more detailed product information, or a chance to win prizes.

Case Study:

Jet Blue’s “Win A Free Trip” QR Code Posters


Case Study #2Jet Blue Mobile QR Code Sweepstakes

Snap PictureSnap Picture


Case Study #3Customer Education “On the Go”

Approach:

Leverage a creative iPhone “App” to solve a pressing issue which can’t wait until the customer gets home.

Case Study:

Clorox Stain Removal “Advisory” Tool – Mobile iPhone App


Case Study #3 Clorox My Stain – iPhone App


3

Word of Mouth & Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”


“Advocacy”

4

5

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial

Customer “Engagement”


3Active

Customer “Participation”

Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #4 – Active Customer “Participation” – Consumer Generated Content

Approach:

Ask your loyal consumers to submit their own videos about your product.

Case Study:

Dove “Dare to Create A Short Film”


Case Study #4 (Cont.) – Dove – Consumer Generated Content “Dare To Create A Short Film”


Case Study #5Customer “Participation” to Influence Major Issues

Approach:Leverage Web 2.0/social networking to make it easy for constituents to influence core decision makers.

Case Study:President Barack Obama’s Facebook page to influence the health reform debate.


Case Study #5 (Cont.) – President Obama’s Facebook Page – Tweet Senator on Health Care


Case Study #5 (Cont.) – Type Zip Code – Generates Automated Tweet to Your Senator


Case Study #6Customer “Participation” – “Feel Good” Tools

Approach:

Allow customers to leverage cool tools and participate with the brand in ways beyond typical.

Case Study:

Air France “CO2 Calculator” to help reduce emissions.


Case Study #6 – Air France Green/Sustainability Calculator Tool


Case Study #6Air France – Emissions Results and Ways to Offset


3Active


Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #7 – Word of Mouth & Viral to Acquire New Customers

Approach:

Leverage a viral “tell-a-friend” functionality, and if your customers tell their friends, they get a reward.

Case Study:

Time Life – Europe


Case Study #7 – Time Life – Europe“Tell A Friend” with Reward


Case Study #8Viral & Social Networking “Sales”

Approach:

Leverage Twitter to “tweet” about promotions and special deals.

Case Study:

Dell Computers – Dell Outlet‒ Dell has sold over $5 million of excess

inventory via this medium (at a cost of virtually zero).


Case Study #8 – Dell on TwitterDrove $5 Million in Revenue


Case Study #9Viral & Social Networking “Sampling”

Approach:

Leverage Facebook to get loyal customers to tell others abut your product line extensions.

Case Study:

Starbucks – “Share a Pint of New Starbucks Ice Cream.”


Case Study #9 – Viral & Social NetworkingSampling – Starbucks Ice Cream on Facebook


3Active


Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #10Cross Consumer Interaction – Blogs/Forums

Approach:Create a non threatening community environment for consumers to discuss sensitive issues (and subtly sell your brand).

Case Study:Procter & Gamble’s “Being Girl” website (Tampax & Always)

Now in 29 countries. According to P&G, this community

was four times as effective as TV advertising.


Case Study #10 – Cross Consumer “Interaction” – P&G Being Girl


Case Study #11Cross Consumer Interaction – Twitter

Approach:

Subtly plug your brand via a branded Twitter page.

Case Study:

Philadelphia Cream Cheese


Case Study #11 – Philadelphia Cream Cheese Twitter Page With “Subtle Sell”

Uses cream cheese


3Active


Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #12Brand Building & Branded Advocacy

Approach:

Create a viral web-based tool that allows you to sell products to more than just the one person who is shopping.

Case Study:

Dunkin’ Donuts – “Dunkin’ Run”


Case #12 Dunkin’ DonutsDunkin’ Run at Work


Case Study #13“Viral” B2B Humor Via You Tube

Approach:Subtly leverage your brand name by disseminating a humorous viral video with content that is directly relevant to your target audience’s day to day challenges.

Case Study:Blendtec

Their series of videos were seen by 60 million people and increased sales by

20% (at a cost of virtually zero).


Case Study #13 (Cont.) – You Tube – Humorous Video Blendtec Episode – 4,811,914 Views


Case Study #14Branded Advocacy through Online Gaming

Approach:Create a online game that relates to the brand’s mantra.

– Consumers test their skills and engage in the brand by playing the game and involving their friends.

Case Study:Maxwell House Coffee Machine Game

– Cleverly focuses on their wide variety of flavors.– Subtly gets friends involved in the game to build

the brand.


Case Study #14 – Maxwell House Coffee Machine – Flavor Variety & Viral Element


Case Study #14 (Cont.)Maxwell House Game – Success & Rewards


Initial Customer

“Engagement”


Entertainment

2

3

Word of Mouth &

Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”


“Advocacy”

1 4

5

6 Mobility & Mobile

Accessibility

8

7

Personalization &

Customization



Maximization

9


Case Study #15Personalization & Customization

Approach:

Create a value added customized, socially oriented program that can be personalized for each customer’s individual needs.

Case Study:

Special K “Challenge”

According to Kellogg’s, the ROI from this digital program surpassed TV by a “Factor of 2.”


Case Study #15 – Special K – Multiple Personalization Features Plus Coaches and Community


Case Study #15 (Cont.) – Forums For Special Targets – Moms and Brides


Case Study #16Mobility & Mobile Accessibility

Approach:

Offer relevant web services via iPhone Apps

Case Study:

Kraft Foods “I-Food Assistant” – iPhone App


Case #16 – Kraft “I-Food Assistant”Mobile Phone Applications


Case Study #17Services on the Go Via Mobile Web Access

Approach:

Offer Key Website Content via mobile web so people can access product, technical, and pricing information as well as timely alerts on their mobile phone while they are away from their computer.

Case Study:

Cisco Systems


Case Study #17 – Cisco SystemsMobile Web – Mobile Access


Case Study #18Relationship Building Via Text Messaging

Approach:

Leverage Mobile Phone “Text Messaging” to provide unique services that build ongoing relationships between the brand and its consumer target.

Case Study:

Ralston Purina


Case Study #18 – Ralston Go2Pets.comMobile Text Pet Service Finder


Case Study #19“Location Based” Mobile Services

Approach:

Leverage Location Based Services and provide incentives/rewards for people to “check in” with their mobile phone and tell their friends where they are.

Case Study:

Bergdorf Goodman/Neiman Marcus Foursquare Application with Rewards


#19 – Foursquare – Bergdorf/Neiman Marcus – Location Based Mobile Phone – Viral “Check In”

58




Maximization

9


Entertainment

2

3

Word of Mouth &

Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


“Advocacy”

1 4

5

6

Initial Customer

“Engagement”


Case Study #20Call to Action – To Drive In Store Traffic

Approach:Provide deep discount incentives through the new social “daily deal” websites via Groupon or Living Social.

Case Study:The Gap’s “$50 of Merchandise for $25” offer delivered via Groupon.

– Sold over 445,000 coupons for over $11 Million.– Drove incredible traffic into Gap stores

nationwide.


Case Study #20 – “Call to Action”Gap “Groupon” Deep Discount


Case Study #21Revenue Maximization Via Cross Sell

Approach:

Cross Sell/Upsell Beyond the Initial Intended Purchase

Case Study:

Amazon.com


Case Study #21Amazon – Revenue Maximization Via Cross Sell


Case Study #22Enhance Existing Customer Relationships

Approach: Leverage e-mails with existing customers that

inform, incentivize, and entertain. Moms sign up and get customized e-mail

tips, tools, and offers/subtle promotions for J&J Baby Products.

“Moms to be” can get ovulation alerts sent via mobile phone text messages.

Case Study:Johnson & Johnson Baby Center


Case Study #22J&J Baby Centre – E-Mail Newsletters


Case Study #22 – J&J Baby Centre“Ovulation” Alerts Via Cell Phone


How to Evaluate Your Existing Social/Mobile Efforts

So how do you know if your company is doing a good job at

leveraging these ten social/mobile revenue drivers and optimizing

customer engagement?


Introducing Our New Patent Pending Solution, EQ Pulse™ - Web 2.0 :

Social/Mobile “Strategic” Evaluation

The first, simple digital analytic methodology that provides a “30,000 foot” view of a brand’s OVERALL use of Web 2.0 marketing mediums including Social Networking, Word of Mouth and Mobile Marketing.

Total EQ Pulse™ - Web 2.0 score measures the overall effectiveness of Web 2.0 digital efforts across all drivers that can potentially increase revenue. Similar to a “FICO” score that measures a person’s credit worthiness.

In evaluating over 160 best practices of the brand’s Web 2.0 digital efforts, we issue separate scores for each of ten, broad Web 2.0 strategic revenue driver categories. These help identify strengths, weaknesses and gaps vs. key competitors and vs. industry best practices.

We explore best practices such as social networking, word of mouth, mobile marketing, blogs, podcasting, online video and gaming, widgets, Facebook and YouTube presence, consumer generated content, community, personalization, wikis, and search 2.0, etc.

We then provide Actionable, Revenue Building Recommendations as well as visual, case study examples.


average

strong

weak

Initial Customer

“Engagement”

5.5 - Average

1

Customer Entertainment & Education

7.9 - Strong

Personalization &

Customization

8.0 - Strong

7

Mobility & Mobile

Accessibility

5.4 - Average

8

STRATEGIC SCORING OVERVIEW

4

6

3

2

5 “Call to Action” & Revenue

Maximization

6.8 - Strong

Relationship Building & Customer Retention

3.9 - Weak

10

9

Active Customer

“Participation”

4.2Weak

Word of Mouth & Viral

5.7 Average

Brand Building & Branded “Advocacy”

3.9Weak

Cross Consumer

“Interaction”

3.5Weak

Westgate Company (EQ Pulse™ - Web 2.0 Example)

Total Scores(1-100 Scale)

Westgate = 52Eastport = 77Midway = 65

Best Practices = 78

52=Inbound To Customer (Brand Push)=

=Outbound From Customer (Consumer Push)


WESTGATE COMPANY (EQ Pulse™ - Web 2.0 Example)Strategic Revenue Driver #3 – Active Customer “Participation”

Westgate(4.2)

Midway(6.2)

Best Practices

(7.9)

Eastport(8.8)

0 105

WeakComments and Analysis: Eastport leveraged extensive online input gathering mechanisms including “Tell Us What You Think of

Eastport.com” links, and “Add Your Own Testimonial” links sprinkled throughout the site. A number of these testimonials were prominently featured on the Eastport homepage.

– Westgate and Midway did not ask consumers for feedback about their products, although Midway did feature an online “poll” about the benefits of the category.

Within the “blogosphere”, Eastport had the most mentions by far with over 2400. Midway had 450, while Westgate had only 33.

– Eastport and Midway’s comments were overwhelming positive, while Westgate’s were somewhat mixed.

– Core negative comments for Westgate revolved around the recent voluntary product recall and long waits for customer service representatives in general.

– Eastport was also the only brand that had their own blog. In consumer generated “visual” media, Eastport had over 500 “YouTube” placements mainly related to

their well known flagship product, some of which were very creative and humorous (Midway and Westgate had 27 and 11 YouTube mentions respectively).

– A recent campaign soliciting consumers to create their own videos generated a substantial amount of free press and goodwill for the Eastport brand.

In consumer generated “text” content, Midway’s website solicited consumers to provide a wide array of created “alternative use” ideas for its premium product.

– Westgate did not solicit any consumer generated content from its customers at all. Across the competitive landscape, only Eastport had a listing in Wikipedia (the listing was fairly

extensive).


The World of Mobile Marketing – Mobile Phones Have Begun to Surpass Computers

Mobile is ramping up much faster than desktop computers did (Morgan Stanley – 4/10).– In fact, today there are more mobile phones in the world than computers

(CNBC – 6/10). Cell phones are now used more for “data” purposes (such as web browsing, text

messaging, e-mail, games, social messaging, music, etc.) than for phone calls (New York Times – 5/13/10).

Smartphone penetration (iPhone, Android, etc.) will reach a staggering 50% by mid 2011 (Comscore – 12/09).

40% of iPhone users now browse the web more on their phones than on their computers (Advertising Age – 2/10).

There are already 200,000 iPhone “Apps” in circulation; 75% of them are “paid” apps (Apple – 4/10).

Mobile offers something other marketing mediums cannot… A much higher probability of a message being delivered to the right person at the right time.

Mobile coupons, transparent pricing, and branded mobile “apps” will disrupt retail and drive new traffic and sales (Morgan Stanley – 4/10).

71


Mobile’s Ten Strategic Engagement & Revenue Drivers

EQ Pulse™ - Mobile – Patent Pending MethodologyMobile Marketing “Strategic” Framework

6

Call to Action & Revenue

Maximization

Social Networking & Word of

Mouth

8

Brand’s Overall Mobile

Potency & its Ability

to Drive Revenue

=

72

Mobile Engagement & Customer Acquisition

1

7

Customer Retention & Relationship

Building

First Impression &

Handheld Navigation

2

Location Specific

Marketing

9

Entertainment Value &

Stickiness

4

Internal Cost

Reduction

10

Brand Building & Product

Merchandising

5

Timely Information & Making Lives

Easier

3


Case Study #23 – Mobile Customer Retention & CTALeveraging Mobile Phones to Drive Retail Sales

Approach:Allow consumers to use their mobile phones to pay for goods and services via “Mobile Commerce.”

– Phone acts as the actual “money” and payment mechanism.

– Phone can also be reloaded or be “topped up” to add available funds.

– Acts as a loyalty program with rewards.

Case Study:Starbucks Mobile Pay

– Already has millions of users worldwide and has driven significant incremental revenue.

– Provides free drinks via rewards loyalty mechanisms.


Case Study #23Starbucks Mobile Commerce


Case Study #24Leveraging Mobile to Cut Internal Costs

75

Approach:Leveraging SMS text messaging “reminders” via mobile phones to replace people who normally make the calls.

Case Study:Kaiser Permanente (Health Care) SMS Patient RemindersￚCut doctor appointment costs by 30%, and

saved $275,000 at just a single clinic in one month


Case Study #24Kaiser Permanente


Ask Yourself:

Applying These Methods to Your Business

Are you broadening your Direct Marketing efforts with some of the simple social networking and mobile techniques we’ve talked about today?

How do your social networking/mobile efforts stack up vs. your key competitors and the industry?

How well do you take advantage of the ten “Strategic Revenue Drivers.”

Do you feel you are making money?

Take Action: Apply the ten social/mobile strategic revenue driver concepts to

your existing Direct Marketing efforts. If needed, call us to help with a full scale EQ PulseTM – Web 2.0

or EQ Pulse - Mobile Assessment…


Comments or Questions?

Feel free to contact me:

Yosi HeberPresident

[email protected](248) 569-9366

www.oxfordhillpartners.com

revolutionize your direct marketing with social/mobile! - 10 strategies and 20 case studies

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oxford hill partners

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customization mobility

consumer generated content

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