The intelligence that creates an individual approach and gets results. The role of direct Mail in today’s media mix / study results. How to create an omni-channel experience using Big Data and smart technology

1. Precision
Marketing
Den Haag, March 17th 2015
Thomas Haas, DM Solutions & ServicesPrincipal, Ricoh Europe plc
thomas.haas@ricoh-­europe.com
Werner Rohrer, SAS Alliance Manager
werner.rohrer@sas.com
The intelligence that
creates an individual
approach…
… and gets results.

2. Ricoh’s
role in direct
mail
The role of
Direct Mail
in today’s
media
mix / study
results
How to create an
omni-­channel
experience using
Big Data and smart
technology
Topics to be covered

3. Data growth
Copyright Ricoh Europe PLC 2014
Online
Purchasing
Customer drivenProduct driven

4. Smart
TV
Sat
Nav
Smart
Meter
Data growth
Copyright Ricoh Europe PLC 2014

5. Customers like direct mail
-­
50
100
150
200
250
2010 2015 2020 2025
Monochrome
Color
Data Source: Caslon & Company
After years of emailing,
Tweeting, Facebooking
and YouTubing, Direct Mail
celebrates a renaissance.
The American DMA’s 2013
Factbook states that 65% of
customers of all ages have
made a purchase generated via
direct mail.
48% of the UK
population responded
to direct mail in 2013.
48% 65%
Direct Mail
(Billion pages)

6. Role of direct mail in today’s mix
Bills, statements
Direct Mail
Books
Brochures
CAD / rendering
Proposals / reports
Manuals
Forms
Letterhead / other office documents
Catalogues
Posters / banners / signage
Inserts / coupons
Presentations
Directories
Newspapers / newsletters
Mono
Colour
Source: Infotrends Growth Applications for Production
Digital Print in Western Europe, Aug 2013
Top 15 Applications
2012 (billion impressions, A4) 40.7 7.8
0 20 40 60

7. Role of direct mail in today’s mix
53.9%
Consumers believe they receive too much
unaddressed mail (flyers) but 53.9% are happy
with the amount of personalised direct mail
Consumers regard personalised direct
mail as the trusted medium for customer
communication and spend on average
2-­4 minutes reading a piece of direct mail
65%
65% say that the possibility of receiving a gift or
any form of discount increases their opening
rate of direct mail
30% say that they’d miss direct mail 30%
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)
Direct Media
Report 2013/14
DMVOE
(Austrian Dialogue
Marketing Association)

8. It stays
around
Special
shapes
& scent
applications
That
special
mail
moment
The feel
of it
Direct mail is special
Average response rate for
existing customer
Direct Mail continues to deliver high
response rates and high conversion
rates compared to other channels
(incl. non-­personalised mail).
Direct Mail
2013, American DMA Factbook.
4.4%0.12%
Email
Online marketing can’t compete in
many aspects with Direct Mail, which
immediately creates emotion because
of…

9. Direct mail used in conjunction with other media
Widening to direct marketing
Don’t
know
7.6%
One
8.8%
Two
30.2%
Three
36.4%
Four
13.4%
Five+
3.7%
An average of three media types are used for a typical
communication/marketing campaign
N=1,026 marketing managers
Response and conversion rates using multiple channels
Source: InfoTrends – Understanding Vertical Markets:
Enterprise Communication Requirements 2012
Campaign Media
Combinations
Response Rates Conversion Rate
Print only 6.0% 16.2%
Print and e-­mail 7.6% 18.3%
Print and web
landing pages
7.6% 15.3%
Print, e-­mail, and
web landing pages
8.2% 16.5%
Print, e-­mail, web
landing page;; and
mobile marketing
8.7% 19.0%
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10. dma UK Research fundamentals
• attitudes towards
direct/advertising mail as
a part of the marketing
channel mix
• online survey among
DMA agency and brand
members
• a copy of Fusion Pro VDP
Creator plus one year's
maintenance will be given
to a respondent through a
random draw
• November 12 -­ January 16
• 130 participants (106 used
advertising mail in
integrated marketing
campaigns in the past 12
months)
18/03/2015 Version: [###] Classification: Internal Owner: [Insert name] 10

11. Reasons for using direct mail
11
3%
4%
7%
8%
8%
14%
19%
37%
Perceived as a premium marketing
channel
Good consumer reach
Enhances digital response rates
Cuts through digital clutter
Perceived as a trustworthy marketing
channel
Perceived as appropriate for the
product / service being marketed
Good ROI
Proven effectiveness in achieving
campaign objectives

12. Perceived barriers
2%
2%
4%
4%
6%
8%
14%
16%
43%
Limited consumer reach
No longer has a place in the marketing mix
Limited interactivity
Not specified by client
Perceived as inappropriate for the
product/service being marketed
Lack of knowledge / expertise in marketing
team
Association with ‘junk mail’
Lack of customer data / analytics
Cost

13. Perceived barriers
1. Perceives a lack of available customer data or analytics. And so
suffer from a lack of knowledge and expertise. Complain about limited
interactivity (30%).
2. Extremely price sensitive. Minor subgroup perceives advertising mail
as inappropriate for their product/service (41%).
3. Fear that it might be considered as ‘junk mail’ (22%).
Note – Cost is the largest single perceived barrier. Digital natives in
segment 2 not familiar with cost & return associated with advertising mail.
“Which of the following have been barriers to using advertising mail as part
of your integrated marketing campaigns? Please rank the top five barriers.”
18/03/2015 Version: [###] Classification: Internal Owner: [Insert name] 13

14. Achieved goals
1. 100% of customer acquisition (38%)
2. Customer retention / brand awarenes
(35%)
3. 100% revenue generation (27%).
Note – Perhaps this is the result of the kpi-­targets set by the agencies’
clients;; some of them might define the growth of their customer base as a
target, some other’s target might be revenue growth?
“Please rank your goals in terms of importance, 1 being the ‘most
important’ goal to be achieved by using advertising mail for an integrated
marketing campaign and 4 being ‘least important’ goal.”
18/03/2015 Version: [###] Classification: Internal Owner: [Insert name] 14

15. Thinking about the following outcomes that you may want to achieve
as a result of using advertising mail in an integrated marketing
campaign, which outcomes would be most important to you?
Expected outcomes
3%
9%
18%
27%
43%
13%
16%
17%
23%
29%
21%
18%
21%
24%
11%
24%
29%
16%
17%
10%
34%
26%
26%
7%
3%
3%
3%
3%
2%
3%
Drive the recipient to participate in a
competition
Request customer to update his
information
Drive the recipient to a physical store
for further information or purchase of
a product
Engage customers as part of a
loyalty programme
Drive the recipient to an online store
for further information or purchase of
a product
1 Most Important 2 3 4 5 -­ Least Important Not ranked

16. $51.40 $52.58 $60.50 $190.49 $55.24
Cost efficiency
More and more brand owners and marketers have learned
that it’s not the actual production and postage costs that
matter so much … what truly matters is the ROMI.
Cost per lead/order
Direct Mail
(letter-­sized)
Pay per click Print
advertising
Telemarketing Email
According to the DMA, 2012 Response Rate Report,
Direct Mail is in the same cost per lead range as print
advertising or pay per click (eg Google AdWords).

17. Nicky Bullard,
Executive Creative
Director at direct
marketing agency Lida
Rory Sutherland,
Vice Chairman, Ogilvy & Mather UK
and Executive Creative Director
& Vice Chairman, OgilvyOne
Clients are starting to
get an appetite back
for direct mail,
particularly with
younger audiences.
Their lives have been
so digital that direct
mail is hugely
disruptive for them.'
'A large part of
communication is not
through words on a
page but through cost
and effort. You will
probably find that
upmarket and effortful
print will grow as a
category.'
The uniqueness of print

18. Precision Marketing
Copyright Ricoh Europe PLC 2014
Precision
Marketing

19. MotivationBehaviour
SegmentProfileAnalyse
Better
understanding
your customers
Why do CMOs care about Big
Data?
Copyright Ricoh Europe PLC 2014

20. Communication noise to
relevant communications
BRAND
RELATIONSHIP
BRAND
RELATIONSHIP
SMS SMS
SMS
Up to 3,000
messages
per day
6 per household/
week
200 billion
worldwide / day
Personalised
& targeted
communications
Right product
Right customer
Right channel
Right time
SMS
SMS
SMS

21. Main beneficiaries
Precision
Marketing
services
Education
Banking &
Finance
Automotive
Telecoms
Utility
companies
Hospitality
Retail
Charities

22. Data silo 1 Data silo 2 Data silo 3
Data
analytical
software
Likelihood of customer
buying product or service
Not
likely
Highly
likely
Precision Marketing
Information Flow
Holistic
customer view
Scorecard

23. Maximising cost efficiency
10 20 30 40 50 60 70 80 90 100
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
95% (revenue)
40% (mailed)
% of revenue captured
% mailed
Captured revenue
Constant

24. Customer Lifetime Value Share of Wallet Customer Link Analytics Social Media Analytics Location Based Services
Online-­Analytics Forecasting Churn Prevention
Customer Segmentation Response-­OptimizationCross & Up Selling
Precision Marketing Value

25. Individual messaging means
relevance
Dynamic
content
composition
tool
Relevant
content
defined
Offer linked
to target
group
Individual
& relevant
documents
created
Cross channel

26. Copyright Ricoh Europe PLC 2014
Personalised landing pages
Play an important role in the world of
omnichannel marketing as they
contribute to a positive customer
experience:
John Doe,
London NW1
3BF
www.win.com/johndoe
Hello John,
Fill in the missing fields to
claim your prize:
John
Doe
Let the consumer
experience the
brand but not the
channel
Age 49
Personalise the web (PURLs)

27. PDF
Clickable Paper
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28. SAS
Copyright Ricoh Europe PLC 2014

29. Ricoh & SAS alliance
SAS
software
solutions
Access to
cutting edge
data analytics
technology

30. THE FORRESTER WAVE™: BIG DATA
PREDICTIVE ANALYTICS SOLUTIONS, 08/2014
“SAS (LEADER) PROVES AN ANALYTICS
POWERHOUSE. WITH AN UNWAVERING FOCUS
ON DATA ANALYTICS SINCE 1976, SAS OFFERS A
BROAD SET OF TOOLS FOR PREDICTIVE
ANALYTICS, AN ARCHITECTURE THAT
SUPPORTS MULTIPLE PLATFORMS, IN-­
DATABASE ANALYTICS, IN-­MEMORY ANALYTICS,
AND SIGNIFICANT MARKET PRESENCE. SAS HAS
MORE THAN 19,500 UNIQUE CUSTOMERS IN 135
COUNTRIES. FORRESTER ESTIMATES THAT
WELL OVER 3,000 ARE USING PREDICTIVE
ANALYTICS.”

31. MAGIC QUADRANT 22 OCT 2014
INTEGRATED MARKETING MANAGEMENT
“SAS is a Leader in the Integrated Marketing
Management market for its robust capabilities and
market momentum across analytical, executional and
operational marketing processes. Clients should
consider SAS for its robust IMM capabilities and strong
focus on Marketing Performance Management and
Advanced Analytics.

32. Case studies
Case
studies
Copyright Ricoh Europe PLC 2014

33. Invoice history
graphCharges
summary
Transaction
summary
Loyalty points
update
Variable
promotion
Loyalty handset
promotion
Contact information
& e-­billing
promotion
Movistar statement

34. Improve awareness of recipient
Convince potential customers to switch from their
existing bank to the nearest branch of Erste Bank.
Highlight that a branch of Erste Bank is nearby. Grosse
Datenmengen mussten verarbeitet werden
Use of digital color printing
Dynamic document composition for each recipient
Use geographical information to draw individual and
relevant maps
Drastically improved awareness
Created curiosity and resulted in high opening
rate
Potential customers came into branches
Erste Bank Direct Mail
Erste Bank, one of
Austria‘s largest retail
banks implemented an
innovative Precision
Marketing direct mail
to present an
attractive offer to
switch the bank.
Challenge
Solution
Result
Copyright Ricoh Europe PLC 2014

35. Copyright Ricoh Europe PLC 2014
Erste Bank Direct Mail

36. Bonprix wanted to evolve their mail order catalogues,
which are still an important part of their total marketing
mix (total number of copies per year: 220m).
By increasing the number of orders generated through
seasonal catalogues. Printed through a combination of
offset print (core) and digitally printed cover.
Dedicated Precision Marketing workshop with
Bonprix’s catalogue production team.
Ricoh proposed the combination of data analytics,
document redesign and digital printing technologies
Strong rise in the number of orders due to relevant
messaging on digitally printed catalogue covers
Increased customer satisfaction (offers became more personal).
Better profiling of customers by adding all of their historical purchases to
their individual customer profile.
Catalogue personalisation
This International
fashion mail order
company, based in
Germany, aimed to
use digital printing
techniques to
personalise catalogue
covers with suitable
next best offers for
their existing
customers.
CHALLENGE
SOLUTION
OUTCOME
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37. The pilot (go to market)
The
pilot
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38. Measure &
adjust
Define
Needs
(workshop)
Gather
data
Deploy
Analyse
&
model
Select
target &
strategy
Precision Marketing workshop/
pilot (go to market)

39. Marketing collateral
Copyright Ricoh Europe PLC 2014
Available on Amazon
(also as Kindle edition)
Supports ‘Clickable Paper’
The book
Online
material
What is ‘Precision Marketing’?
http://www.youtube.com/watch?v=MK-­AHurIfiI
What is ‘Predictive Data Analytics’?
http://www.youtube.com/watch?v=f4W5nEm4zfQ
How does Ricoh’s reseller model work?
http://www.youtube.com/watch?v=_NdOZbWOFDc

40. Questions?
Copyright Ricoh Europe PLC 2013