Transcript March 29, 2005 Ottawa Chapter Canadian Marketing

Targeting Smarts = Sales Success
-orHow targeting can get me to the
table early in the game
Daniel G. Wiest
President, Wiest & Associates Inc.
June 21, 2005
Today’s agenda







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
Targeting & Media Planning
Practical solutions with Data
LTV & RFM – how mail wins
Direct Mail as an integrated solution
Privacy
Using what’s in your database
B-to-B vs. B-to-C
Media Comparisons
Measurement
John Wanamaker




1838-1922
Developed the “department store”
pioneered fixed prices and moneyback guarantees
reformed the U.S. postal system while
serving as Postmaster General (188993) in the administration of President
Benjamin Harrison
John Wanamaker
"I know I waste half the
money I spend on
advertising. The problem
is, I don't know which
half."
The solution is
Targeting
When done properly, mail wins
hands down


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Quality of the lead
Mail converts better
Profitability of the customer
Lifetime Value
Lower cost to maintain that customer
Now forget about us for a
moment…

What does your customer go through
when they’re deciding to use Canada
Post products?
Put yourself in your customer’s
media planning shoes
“Will this
targeting stuff
really help me in
my performance
review at the
end of the year?”
What you’ll learn next:


Your customer’s choices
How to ensure Canada Post remains a
choice
Your customer sees Canada Post as

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Just one of many media choices
An additional expense that must continually
be justified
Additional production, execution and
tracking overhead
Often a tough up-front ROI performer
Not yet coming to the table with enough
smarts about their business to justify all that
Here’s what media planning to
target effectively really looks
like…
Your can easily help your
customer see Canada Post as…
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
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A necessary choice that can help them
reach their target customer
A marketing expense that can easily –
and definitively – be tracked
A medium that can help track and lift
their other media response
A stellar performer when judged by
LTV: Lifetime Value
Some of the tools that will help
you succeed include:

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Understand your customer’s targeting
needs – cold
Knowing how your products solve
those targeting needs
Be a champion of tracking and analysis
Helping match Canada Post products
that will improve her performance
review
Helping match Canada Post
products that will improve her
performance review
is not about you
This is about what metrics,
attributes, performance
measures your customers is
being graded on
And how you can help her
meet those objectives
This
What might those performance
measures include?
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
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Acquisition – I need to create more
customers
Retention – I need to keep my
customers from disappearing
Upsell – I need to sell more to my
existing customers
Awareness – I need to make sure my
potential customer know about me
All of those measures can be
successful if you focus on:
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
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Targeting
Measurement
ROI
…and you can win on all counts
A simple media plan
Media
Quantity
Production
Costs
Media
Total
Proj. Response
%
#
Cost/
Resp.
Conversion
%
#
Cost/
Conv.
Revenue
Per Cust. Total
RETENTION
Direct Mail House File
Best customers
5,000
Dormant customers
15,000
Sub-Total
20,000
$12,500
$22,500
$35,000
$0
$0
$0
$12,500 3.50%
$22,500 1.10%
$35,000 1.70%
175
165
340
$71.43 80.0%
$136.36 75.0%
$102.94 77.6%
140
124
264
$89.29 $200.00
$181.82 $150.00
$132.70 $176.54
$28,000
$18,563
$46,563
ACQUISITION
Addressed Mail
Response List A
Response List B
Compiled List
Sub-Total
10,000
10,000
10,000
30,000
$8,000
$8,000
$8,000
$24,000
$960
$960
$600
$2,520
$8,960
$8,960
$8,600
$26,520
0.50%
0.40%
0.15%
0.35%
50
40
15
105
$179.20
$224.00
$573.33
$252.57
40.0%
40.0%
30.0%
38.6%
20
16
5
41
$448.00
$560.00
$1,911.11
$654.81
$75.00
$75.00
$50.00
$72.22
$1,500
$1,200
$225
$2,925
Unaddressed
Trading Area A
Trading Area B
Trading Area C
Sub-Total
10,000
10,000
10,000
30,000
$3,000
$3,000
$3,000
$9,000
$10,000
$10,000
$10,000
$30,000
$13,000
$13,000
$13,000
$39,000
0.50%
0.40%
0.40%
0.43%
50
40
40
130
$260.00
$325.00
$325.00
$300.00
40.0%
40.0%
30.0%
36.9%
20
16
12
48
$650.00
$812.50
$812.50
$812.50
$75.00
$75.00
$50.00
$68.75
$1,500
$1,200
$600
$3,300
Email
List A
List B
Sub-Total
20,000
20,000
40,000
$2,000
$2,000
$4,000
$5,000
$5,000
$10,000
$7,000 0.30%
$7,000 0.20%
$14,000 0.25%
60
40
100
$116.67 50.0%
$175.00 50.0%
$140.00 30.0%
30
20
30
$233.33
$350.00
$466.67
$60.00
$50.00
$93.33
$1,800
$1,000
$2,800
Newspapers
Newspaper A - Insert
Newspaper B - Insert
Newspaper C - Insert
50,000
50,000
50,000
$5,000
$5,000
$5,000
$3,750
$3,750
$3,750
$8,750 0.50%
$8,750 0.40%
$8,750 0.40%
250
200
200
$35.00 40.0%
$43.75 30.0%
$43.75 30.0%
100
60
60
$87.50
$145.83
$145.83
$50.00
$40.00
$50.00
$5,000
$2,400
$3,000
For many in the room, those
plans are much more
complicated…
Broadcast
Television
Cable
Radio
Newspaper
Internet
Search
Engine
Optimization
Magazine
Banners
e-mail
Paid
Search Engine
Advertising
Point of Purchase
Co-op advertising
Package Inserts
Outdoor
Community Newspapers
Online Sponsorships
Mail
…and more
How can I be viewed as an
expert in such complex stuff?
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Understand your customer’s decisionmaking process
Understand where CPC fits within that
process, as well as other elements in the
plan
Bring solutions to the table
Add value
Help her get a better grade at the end of
the year
I love
taking
notes…
“Do you guys
have any idea
how tough it is
for me to figure
out which media
to chose for my
target audience?”
What you’ll learn next:



How your customers target
What really matters in targeting
Where Canada Post excels in targeting
Understanding the Target Market
What do you know about :
Consider importance of graphic
& verbal presentation of product
Which media
appeals most to
target market?
TARGET
MARKET
When is target market
most responsive time
& seasonality ?
What is their
lifestyle?
How do they prefer
to respond: mail, email, phone, etc.?
Selecting Media for Direct Marketing
1. Be
informed by
database
information
2. Be informed by
media providers,
research
3. Develop media
test plan
ACQUIRE, RETAIN,
GROW, WIN BACK,
AWARENESS
6. Rollout
5. Use learning to
refine media plan
4. Test media
Using response media to target effectively
DIRECT MARKETING 1-to-1
MEDIA
Telemarketing
Web
Fax
Addressed
Mail
E-mail
CUSTOMER DATABASE
DR TV
Magazines &
Unaddressed
DR Radio
Newspapers
DIRECT RESPONSE MASS MEDIA
Focusing on the Target Market

Target market includes people who:
– Already use your product/service: existing
customers
– People similar in profile to existing
customers: prospects
Focusing on the Target Market

Essential to understand target market in
order to:
– Successfully develop relevant messages and offers
– Generate an acceptable response
– Effectively select media

Target market profiles, data collection and
legalities of use vary according to whether
they are:
– Business-to-business target
– Business-to-consumer target
Core Targeting Variables

Geographic
– e.g., province, city, postal code

Demographic
– e.g., Age, sex, income, number of
children, marital status

Psychographic
– e.g., Lifestyle, motivators, leisure
pursuits, life-stage needs
Sources of Targeting Information
Ease of
collection
Least
Compiled Database
Easiest
Responder Database
In-house Database
Toughest
Most
Effectiveness
of Data
Targeting:
Effectiveness vs. Complexity
Ease of
targeting
Targeting
Variables
Easiest
Geographic
Least
Demographic
Toughest
Psychographic
Most
Effectiveness
of Targeting
Geopost™ is getting there for
psychographic targeting
Dan – L7G 4S7
• Married
• Marketer
• Daughter - 15
• Cats
• Jeep Grand Cherokee
• Classical Music
• Does OK
George – L7G 4S7
• Married
• Farmer
• Son - 40
• Cows
• 87 Cadillac
• Country
• Filthy Rich
Known Psychographics on a house file still generally win
the targeting game.
House list: always there for
targeting




If maintained properly
If thoughtfully populated
If analyzed for the most relevant
variables
If response is tracked
Where Canada Post can win:


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
Move from unaddressed to addressed
Requires a move up the targeting
ladder
Demographics are a start, but…
Stretch for those psychographic
variables that satisfy your customer’s
target audience
Worksheet
Questions
A1&7
“I don’t really
collect any
customer
information.
How can Canada
Post possibly
target anything
for me?”
What you’ll learn next:


How to succeed – even when they’re
not much data to work with
Positioning yourself as a strategic
partner
If they do – or – will have a
customer file…
They
are already
collecting information
You have a place to
start developing
targeting
You have a place to
start knocking out
your media
competition
Let’s start with a real CPC
example



It’s a not-for profit
Have responder history
CPC’s task: find them more of their
best customers
A look at renewals and lapsed donors at the end of 2004
Donor Description
Renewals in
2004
Lapsed
Year 1
Lapsed
Year 2
Lapsed
Year 3
Total
Number of Donors
3,464
851
1,445
1,998
7,758
% of Total Donor List
45%
11%
19%
25%
100%
$ 57,189
$105,310
$133,241
$295,740
$67.20
$72.88
$66.69
Donation Dollars
$ 334,311
Lost Donations $
Average Donation
$ 96.51
•
45% of the total donor list is considered active because they
gave in 2004
•
Lost revenue from lapsed donors is almost equal to annual
donation for 2004
Donors Lapsed From 2003 to 2004
Total Active Donors End of 2003
3,503
Total Active Donors End of 2004
Subtract: New acquisitions in 2004
: Reactivations in 2004
Subtotal
3464
270
403
673
Number of 2003 Donors Renewing in 2004
Number of 2003 Active Donors Lost in 2004
• Same donor renewal rate 2003/2004
(2791/3503) = 80.0% vs 67% in 2003
• This means 20% of donors giving in 2003 did not renew in 2004
673
2791
2791
712
Change in Donor Base Size from 2003 to 2004
Donor Segment Description
# Donors
2003 Active Donors Lost in 2004
712
New Acquisitions and Reactivations
673
Net Change To Donor Active Donor Base Size
-39
• The active donor base declined in size by 39 donors going
forward from 2003 to 2004.
Change in Donor Base Size of Previous Years
Year Ending
Year Beginning
Of Campaigns
Beginning Year Donors
vs Ending Year Donors
Decrease in Active
Donor Base Size
Year to Year
% Decrease in
Donor Base Size
2001 to 2002
(4975 – 4700)
-275
-5.5%
2002 to 2003
4700 – 4226)
-474
-10.1%
2003 to 2004
(4226 – 3503)
-723
-17.1%
2004 to 2005
(3503 – 3464)
-39
-1.1%
2005 - 2006
(3464 -
• There is a significant change in donor base erosion from 2001 to 2004.
New Donor Acquisitions
Table of Performance For Top 12 FSA’s In Winnipeg
Criteria used for analyzing donor base:
P ratio: Penetration ratio = number of donors within an FSA divided by total households
in an FSA.
Active %: active ratio is the percentage of all donors within an FSA that made a donation
2004.
FSA
Active 04
$Renewal
R3P
R3N
R3M
R3K
R3R
R3J
R3L
R2J
R2V
R3T
R2N
R2G
FSA Total
258
202
282
120
188
260
176
145
182
257
95
182
2347
26970
26573
30523
10421
19270
24493
16655
15529
11928
28763
8042
16888
236055
Total
Donors
400
373
505
222
372
477
351
303
390
517
236
377
4523
City Total
Ratios
3340
70%
319776
74%
7401
61%
% Active
P ratio
Total HH
65%
54%
56%
54%
51%
55%
50%
48%
47%
50%
40%
48%
51%
6.9%
6.4%
4.9%
4.4%
3.8%
3.8%
3.2%
3.2%
3.1%
3.0%
2.8%
2.7%
3.7%
5792
5859
10317
5101
9759
12599
10943
9531
12710
17229
8287
13797
121924
45.1%
13%
2.8%
28.5%
262635
46%
Their top 12 FSA’s in Winnipeg
9
12
6
4
2
5
3
7
8
1
10
11
A look at the top Postal Walks in R3P
Active 04
$Renewal
R3P 552
R3P 563
R3P 557
R3P 560
R3P 562
R3P 558
R3P 556
R3P 566
R3P 564
R3P 554
Total
41
23
28
48
21
4
5
26
26
7
229
2524
1824
4276
4989
3297
350
495
2876
2588
650
23869
Total
Donors
53
34
38
70
23
9
16
43
35
15
336
FSA Total
258
26970
City Total
3340
319776
FSA/walk
% Active
P ratio
Total HH
77%
68%
74%
69%
91%
44%
31%
60%
74%
47%
68%
20.7%
19.0%
14.5%
11.3%
10.6%
8.6%
6.2%
5.9%
5.1%
4.7%
9.3%
256
179
262
617
217
105
259
725
680
322
3622
400
65%
7.0%
5792
7401
45.1%
2.8%
262635
Postal Walks With Highest Affinity For Donations
unaddressed
addressed
Sample List of Postal Walks To Target With Addressed Mail
FSA/walk
R3C 1
R3P 552
R3P 563
R3P 557
R3R 623
R3N 540
R3N 542
R3P 560
R3M 518
R3P 562
R3N 543
R3T 658
R3N 541
R2N 762
R3M 504
R3P 558
R3M 503
Active 04
$Renewal
Total
Donors
Active
Pratio
Total HH
12
41
23
28
37
13
23
48
57
21
14
15
12
34
25
4
17
1770
2524
1824
4276
4782
1330
4589
4989
6699
3297
3113
2212
2762
2472
2420
350
1323
42
53
34
38
57
27
40
70
77
23
33
26
26
55
37
9
36
28.6%
77.4%
67.6%
73.7%
64.9%
48.1%
57.5%
68.6%
74.0%
91.3%
42.4%
57.7%
46.2%
61.8%
67.6%
44.4%
47.2%
24.3%
20.7%
19.0%
14.5%
12.8%
12.2%
11.5%
11.3%
11.3%
10.6%
9.8%
8.9%
8.8%
8.8%
8.7%
8.6%
8.5%
173
256
179
262
445
222
348
617
679
217
336
292
294
626
425
105
426
New Acquisitions Recommendations
Addressed:
• Create a targeted list based on performance
criteria of penetration active giving ratios (10,000)
Unaddressed:
• Use the above criteria to target specific postal
walks for unaddressed direct mail.
•
Quantity not to exceed 150,000 pieces in total.
• Two drop dates for unaddressed – dates to be
determined.
The lesson





With simple information from a
customer’s file, we can be brilliant
It includes unaddressed as well as
addressed
It positions us as a strategic partner
It gets us to the planning table earlier
The results keep us coming back
Worksheet
Questions
B1-4
“My creative people
– and most
consumers –
consider mail to be
junk. I already have
all the tire-kickers I
need. What I really
need is quality
customers.”
What you’ll learn next:



How you measure a quality customer
What measures your clients use
Where Canada Post kicks the pants off
the competition
Artsy is one thing, but we’re going…
Up-front response is just one
measure




Mail can do great for immediate
revenue
Where mail really excels is over the
lifetime value of the customer
The quality of those customers is far
superior to other media
Mail customers = more $s for your
customer
Your mission, should you decide
to accept it:




Help your customer justify the
expenditure:
to their VP Marketing
…as well as to their CEO & CFO
…help your customers sell you
Mail kicks the pants off other
media when it comes to LTV
What customers are measuring
Front-end/short-term Back-end/long-term


Measurement of a
campaign’s results just
following the time of
initial sale or contact
Response rates




Measurement of a
customer/inquirer’s
performance (value)
after the initial sale or
contact
Conversions
Repeat purchase
Lifetime Value (LTV)
Why LTV? You’re no longer just
selling to marketing & advertising.
You’re selling to the bean counters.
You don’t need to be math
expert. The concepts are
straightforward.
Yah, kids.
The ideas
ain’t so tough!
How your customers calculate LTV
EXAMPLE
1000 customers over a 5 year period
Average income per customer = $50.00 per year
Average retention = 70% per annum of customers
Lifetime value calculated at 5 years
How your customers calculate LTV
YEAR
1
2
3
4
5
Unit sales p.a.
1.0
0.7
0.49
0.34
0.24
Direct revenue
$50.00
$35.00
$24.50
$17.15
$12.00
$6.00
$30.00
$21.00
$14.70
$10.20
$24.00
$16.80
$11.76
$8.24
$5.60
Indirect costs
$3.00
$2.10
$1.48
$1.02
$0.72
Net revenue
$29.00
$46.10
$32.26
$22.59
$15.88
Net present
$29.00
value p.a. (10%)
$41.90
$26.66
$16.97
$10.84
Indirect revenue
Direct costs
Total lifetime value (sum of NPV’s) = $125.37
If you’re not 100% comfortable
with the math, here’s what you
really need to know…


What looked like a $29 customer on
day one, is actually a $125 customer
Other media simply don’t match that
$125 customer that mail creates on
the back end
The important takeaways for
Canada Post



Mail rules when you look at the LTV in
customers it brings in
It beats broadcast, magazines,
newspapers
It produces much more revenue over
the long haul
Worksheet
Question
A 2.b)
“What kind of
information
should I be
collecting up
front to target
better?”
What you’ll learn next:


Helping your customers collect the
right information
How to become a smarter direct
marketer – through simple observation
What information can you be
helping your customers collect:




To better target future efforts
To better forecast response
To better predict how valuable a
customer will be
To control costs, forecast revenue, and
control bad debt
Columbia House
Zero personalization
Standard package
It varies, but you can Learn from
the Masters



Become an astute observer of what
other marketers are doing to target
What pieces of information they’re
collecting
Direct Marketing rule of “twice or
more”
Don’t
navel
gaze…
“I’m a marketing
person -- not a
database person.
This targeting
stuff is just one
more thing I
don’t have time
to handle in my
busy day.”
What you’ll learn next:


Where the most important information
is found
A tool to guide you
If you’re just starting out with
your customers, take baby steps.
To borrow
from our
friends at
Capital One:
“What’s in
your
database?”
Targeting begins at home


Your best source of targeting
intelligence is current customers
You can’t help them target intelligently
unless you know the facts
How many of you:





Have seen your client’s data dictionary
Know what fields are populated
Know what are the key factors that
influence their selects and performance
metrics
Know what their ideal customer looks like
Know how they use this for targeting in
selecting their other media
Don’t need to be expert in the
concepts, but…



Need to understand the basics
Need to know that that your
customers are using them to make
decisions
If they’re not, you can be a hero for
introducing them to this marketing
smarts
How this applies to CPC:

The higher up you are on data
richness, the further up the
addressed ladder you are
“I have 50,000
names in my
database. I
only have
enough budget
to mail 10,000.
Which ones do
I mail?”
What you’ll learn next:


RFM – the grand-daddy of data
forecasting
The one factor that has the biggest
impact
Insist on measurement
Be the leader of other media in
tracking and analysis
 Push for promo codes
 Be confident to collect data
 Make sure they’re capturing and using
the information
Because if you’re targeting effectively:

Direct Mail is the winner in the
targeting & Lifetime Value race





Better quality customer
It’s a considered purchase
Greater Revenue
Higher LTV
ROI winner
What information matters Most
in a database?
The one Minute Manager
intro to RFM analysis
One way to go: RFM Analysis

Three principle measures of previous
buying
–RECENCY: latest purchase or activity record – the most
predictive
–FREQUENCY: Indicates number of purchases made
within a timeframe
–MONETARY: Total expenditure by customer within
same ‘frequency’ time frame
Assumptions and Applications of
Recency, Frequency and Monetary
FACTOR
ASSUMPTIONS
APPLICATION
(by priority)
RECENCY
FREQUENCY
MONETARY
• More recent clients more
likely to buy again. Lifestyle
changed for people buying
long ago; readiness to
purchase again
• Select contacts by most
recent purchase date
• Repeat purchases
• Communicate frequently
with client
• Like your product
• Clients who spend a lot of
money may do so again.
Include clients who do large
one off
• Contact each client near end
of usage cycle
• Analyse purchase pattern
and needs
• Consider special promotions
• Purchase under special
circumstances
THE MOST VALUABLE CUSTOMERS ARE THOSE WHO SCORE HIGH ON
ALL THREE CRITERIA
Don’t get scared!

2 minutes, and you’ll uncover the 2
relevant figures in the following RFM
analysis
RFM: selecting your best targets
Recency, Frequency, and Monetary Values (RFM)
20 points if within past 3 months
10 points if within past 6 months
5 points if within past 9 months
3 points if within past 12 months
1 point if within past 24 months
Number of purchases within 24 months x 4 points each (Maximum = 20 points)
Dollar volume of purchases within 24 months x 10% (Maximum = 20 points)
Recency = 5
Frequency = 3
Monetary = 2
Recency of transaction:
Frequency of transaction:
Monetary value of transaction:
Weighting assumption:
Customer
Purchase
Recency
(months)
Assigned
Points
(x5)
Weight
Points
Frequency
Assigned
Points
(x3)
Weight
Points
Assigned
Points
(x2)
Weight
Points
Total
Weight
Points
Cumulative
Points
A
A
A
1
2
3
1
2
3
20
20
20
100
100
100
1
1
1
4
4
4
12
12
12
$ 30
100
50
3
10
5
6
20
10
118
57
27
118
250
372
B
1
12
3
15
2
8
24
500
20
40
79
79
C
C
C
C
1
2
3
4
3
6
12
24
20
10
3
1
100
50
15
5
1
1
2
1
4
4
8
4
12
12
24
12
100
60
70
20
10
6
7
2
20
12
14
4
132
74
53
21
132
206
259
280
Monetary
And there are easier starts, if
RFM gives you the shakes



Decile Ranking
Sort database in 10 equal segments in
descending order – “best” to “worst”
Start with the top 10% and work your
way down
History also repeats itself




7:1 principle
Cheaper to keep existing customer
than find new one
Segment by previous buying behaviour
Predicts future behaviour
Targeting approaches within a
house file




80 / 20 rule
Decile Ranking
RFM
Predictive Modeling
The big lesson on targeting and
analysis:
Know
what your customer
is being graded on and…
You can help set the rules
against which the
competition will be judged
Worksheet
Question
#A5&6
“E-mail and
online is
working great
for me – and
it’s growing. I
don’t need
high CPM mail
any more.”
What you’ll learn next:


Defending your turf against e-mail
How direct mail actually makes e-mail
work harder
Mail is still critical






…and it will be in all our lifetimes
Lead role
Support role
Integrated role
However… shifting reliance on mail
Especially apparent in youth
Important functions of mail in
targeting:



Creates lift in response
Extends response curves
Creates a response in cases where
other media simply fall short
Multi channel targeting works harder
and different – than customers think
How is this relevant to Canada
Post?




The lift was created by the email
But the responses were still
resulting from the mail
Even though they were ordering via
phone or Internet…
The promo code was from the mail
piece
Lesson: You have the choice as
to how customers view you





As
As
As
As
As
a targeting expert
a business partner
an advisor
a solutions provider
a results generator
Worksheet
Question
#A 8
“I want to
collect data on
my customer.
What can I
legally collect?
What should I
ethically
collect?”
What you’ll learn next:


The basics of privacy legislation
Why every client needs to know it
PIPEDA
Personal Information
Protection and Electronic
Documents Act
Consumers are willing to share
• Majority of consumers are “privacy
pragmatists” (63%)
• …although concerned about privacy
• … they are prepared to provide
information in exchange for offers of
value from companies who treat their
information with care
Source: 2002 Harris Poll
Privacy is on consumers’ radar

Perceived risk of privacy violation determined via
channel:
– Telephone/e-mail highest, fax lowest

Increasingly taking steps to protect privacy:
– Falsifying information
– Getting off marketing lists
– Selective disclosure of personal information
But…consumers want to hear from
the companies they trust!
CANADA’S PRIVACY LAW


Based on the principle of consent
Gives individuals ability to control the collection, use
and disclosure of their personal information

Not channel specific

Key to success:
– Effective management of customer expectations
– transparency
THE 10 PRINCIPLES
Accuracy
 Accountability

 Identify the

 Obtain consent

Openness
 Limit collection

Individual access
 Limit use,

purpose
disclosure and
retention
Appropriate
safeguards
Responsive to
compliance
challenges
THE PRIVACY “GLOSSARY”

Personal information

Knowledge and Consent

Reasonable Person

Sensitive vs. Non-sensitive data
THE PRIVACY “GLOSSARY”

Personal information
“Information about an identifiable individual, but does not include
the name, title or business address or telephone number of an
employee of an organization.”

This includes information in any form, such as:
– age, name, e-mail address, ID numbers, income, ethnic origin, or
blood type
– opinions, evaluations, comments, social status, or disciplinary
actions
**Important
exemption for business information – although e-mail
address is questionable. Be careful when you go beyond that.
THE PRIVACY “GLOSSARY”

Knowledge and Consent
Implied (for existing customers)
- renewals, active relationship
Opt-out (to disclose non-sensitive information)
- opportunity to say no to rental/exchange
Express or positive
- sensitive data, financial records or new use
- disclosure of e-mail address
THE PRIVACY “GLOSSARY”

Reasonable Person
Collection, use and disclosure of information should be limited to those for
purposes that a "reasonable person" would consider appropriate in the
circumstances.

What does this Mean?
Would a customer renting a movie from a video store consider it reasonable
to be required to provide a telephone number? An address? A Social
Insurance Number?
Would a customer paying cash for a product or service consider it reasonable
to be asked for a name, address and phone number?
Would someone surfing a Web site expect their information to be collected
without their knowledge and consent?
Federal Privacy Act






Up for mandatory review in 2006
Negotiations start this year
Big danger: loss of opt-out consent
They’re pushing for a higher standard
of opt-in
Threat: naming of names
Current: finding (vs. ruling) doesn’t
name company
Your customers will be able to
rely less on Telemarketing





This is Business to Consumer…
US Federal no-call list decimated pool
85+ million and counting
5 year effective registration
Canadian legislation imminent
Canada: do-not-call






Legislation introduced in the House of
Commons in December
Debated on February 7th: all party support
We’re looking for BtoB exemption /
established relationship
FTC affords it in the US
We appear this Spring in front of a Federal
Committee
18 months implementation?
Upcoming opportunity
Keep PIPEDA in the forefront as a
strategic initiative, not just an
impediment
 Any customers relying on
outbound telemarketing now?

FOR MORE INFO
CMA
www.the-cma.org
Office of the Federal Privacy Commissioner
www.privcom.gc.ca
Information and Privacy Commissioner of Ontario
www.ipc.on.ca
Industry Canada
http://e-com.ic.gc.ca
PIPEDA…
I need ya…
“Is Business to
Business
targeting the
same as
Business to
Consumer?”
What you’ll learn next:



Business-to-Business vs. Business-toConsumer
What’s different
What’s the same
Classic Targeting Model:
Business to Consumer Market



INITIATOR: Person who first thinks of buying
the service or product
INFLUENCER: Person who can influence the final
decision
DECIDER: Person who makes part or all of the
buying decision

BUYER: Person who makes the purchase

USER: Person who “CONSUMES” the purchase
One or more people can double up on more
than one role at any given time.
Classic Targeting Model:
Business to Business Market





USER: Organization members who use product or service. Often
initiators of the purchase.
INFLUENCERS: Effect buying decision. Help define specifications.
Technical staff are particularly important influencers.
BUYERS: Formally authorized to select purchase and negotiate
terms. May help influence but play major role in selection of and
negotiation with vendors.
DECIDERS: Have formal or informal power to approve final
suppliers
GATEKEEPERS: Have power to filter information going to key
personnel e.g. VPs, Executive Assistant, etc.
Consumer vs. Business To
Business Direct Marketing
Consumer Direct Marketing


Individuals frequently buy for
themselves
Buying decision involves
relatively few others
Business To Business Direct Marketing

Individuals buy on behalf of organization

Decisions frequently involve multiple
individuals

Multiple buyer groups

Single buyer groups

Formal and informal buying process

Informal buying process

Relationship based

Transaction-based

Average order size tends to be large
Average order size is relatively
small

Lifetime value can be very large

Difficult to reach individuals


Lifetime value is relatively low

Small target market universe

Easy to reach individuals

Relationship process

Large target market universe

Transactional focused
focused
How this impacts CPC
To target properly:
 Often multiple targets within the same
household
 Often multiple targets within the same
company
 All determined by the customer’s
objectives
“How does
CPC Lifetime
Value – LTV –
stack up
against other
media?”
What you’ll learn next:


How Canada Post compares to other
media choices
Where Canada Post wins – and wins
big
Acquisition example: where CPC stands
Media
Time to
Market
Contact ROI
Cost
LTV
Mail
medium
slow
Med /
High
med
Outstanding
Print
Med /
high
low
Newspaper fast
low
med
medium
Broadcast
low
med
low
low /
med
low /
med
low /
medium
low /
high
Low / Med
E-Mail
Med /
slow
fast
Web
medium
medium
Low / Med
Parting Shots



Get yourself to the table as early in
the planning process as possible
Help establish the importance of
metrics in places where CPC can win:
LTV & ROI
Mail beats other media with customer
value over the long haul
Parting Shots



Mail works better when integrated
Make sure you track – it’s often the
mail that’s responsible for the lift in
response
The more data you have, the more
you can upsell CPC solutions
Parting Shots



It doesn’t take much data to win.
Ask for help before you need it.
How? Just keep your antennas up –
always be on the lookout for data-rich
opportunities. Mail wins.
Parting Shots




Know your customer’s target better
than she does. You can always use it
to your targeting advantage.
Know what’s in the database.
Know what factors in that database
matter most.
RFM. You can bank on it.
Targeting Smarts = Sales Success
-orHow targeting can get me to the
table early in the game
Daniel G. Wiest
President, Wiest & Associates Inc.
June 21, 2005
“Does Canada
Post fit in with
the customer
lifecycle
anyplace ?”
What you’ll learn next:


Lifecycle marketing
Where Canada Post products fit in
Making Media Choices:
Targeting The Customer Lifecycle
Brand Advertising / PR
Unaddressed
Direct Media / Mail
Awareness
Consideration
Education
Repurchase/retention
Purchase
Experience
CRM
Addressed
Direct Media / Mail
Classifying your Target Market
According to Lifecycle
Addressed
ADVOCATE
CLIENTS
CUSTOMERS
PROSPECTS
SUSPECTS
Unaddressed
Direct Response
 Every
medium is unique
 Each has its own strengths and
weaknesses
 Each has its own selling tools
 Direct Marketing has borrowed from
the toolbox of traditional/general
advertising
Other Factors Affecting Response
 Seasonality
–Q1/Q3 typically generate higher
response
Question
A8
Worksheet
Question
#A6