Presented by Tim Lyons

IESEG Direct Marketing

Day Two

Day Two Activities

8:10-9:00 Topic Four: The Importance of Data

9:00-9:15 Break

9:15-10:00 Topic Five: The Media of DM

10:00-10:15 Break

10:15-11:00 Topic Six: Legal Issues in DM

11:00-12:30 Student Presentations

Looking Back

Reflections on Day One

Topic 4The Importance of Data

Data Base Marketing

• What is a Database?

• Access to information for the database

• DB - The basis for Customer Relationship Management

• The Life Time Value of the Customer (LTV)

What is a Data Base• A list

• An indexed list

• Flat File

• Relational Data Base

• The basis for all successful direct marketing activity

Access to Information for the DataBase

• Internal Information

• Purchases

• Customer transactions

• Customer service activity

• External Activity

• Socio-economic

• Geo-demographics

• Pyschographics

Blog Exercise 1Day 2

Where are we likely to access this kind of information in an online campaign?

Case Study:Frueauf Village

• Located in Australia’s premier ski region

• Falls Creek

• Elevation 1650 metres

• Australia’s most prestigious ski resort apartment development

FV’s Data Base

• Competition

• Online

• offline

• Current guests

• “show throughs”

• Falls Creek Resort Management Board

DB - The Basis for Customer Relationship Management

• The value of customer retention

• The value of understanding the history of their buyer relationship

• The ability to profile future buying habits of these customers

• The value of being able to profile new customers

The Life Time Value of the Customer

• Future revenues and future profits

• At GMC dealerships, 65% of Gross Margin comes through the service garage

• Repeat customer patronage

• How many cars would a person buy in a lifetime?

• How many car services would they have?

Blog Exercise 2Day 2

What is the lifetime value of your customer?

Understanding the customer at Frueauf Village

• Falls Creek Resort Management Board

• Dean Hewett and George Stockman

• Roy Morgan Research

Roy Morgan Snow Segmentation Survey Size of the Snow Visitation Market

Pop’n 14 yrs+ : 15.556 mPop’n 14 yrs+ : 14.476 m

Base 2012: 6,982Base 2007: 2,358

Growth Markets

Fewer people have never visited the snow, with more having visited at

some time, but not recently

Regular skiers have increased from 5.5% to

6.2%

Ski enthusiasts rep a small % of

the market

Falls Creek Winter SurveyFalls Creek Winter Survey Mean Dollars Spent by Length of Stay Mean Dollars Spent by Length of Stay

$297.85

$634.83

$1,772.92

$2,139.58

$2,700.00

$1,950.00

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

Day Trip/One day 2 - 3 days 4 - 6 days 7 - 10 days 11 to 19 days 20 or more days

Me

an

Do

lla

rs (

$)

Sp

en

t

As would be expected, expenditure generally increases with length of stay. The average spend by day trippers was around

$300, compared with an average expenditure of approximately $2,000 for

those who spent 7 - 10 days at Falls Creek.

Source: Falls Creek Winter Survey - [BASE: TOTAL RESPONDENTS]

Falls Creek Winter SurveyFalls Creek Winter Survey Month Intend to Make Bookings for subsequent Month Intend to Make Bookings for subsequent

Snow Season Snow Season

3

0.1

1

6

8

13

16

13

10

11

9

0.30

2

4

6

8

10

12

14

16

18

Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02

Month / Year

% Almost two-thirds (63%) of Falls Creek visitors in one year,

intended to make bookings for the following season between March

and July.

Source: Falls Creek Winter Survey - [BASE: TOTAL RESPONDENTS]

Oct Dec Mar June Sep

BREAK• Feel free to go outside...but be back in 15 mins

Topic 5The Media of DM

Media of Direct Marketing

• Magazines

• Newspapers

• TV/Radio

• Telemarketing/Teleservices

• Digital

US Media Spend 2013

Global Media Spend 2013

Magazines

• Long term nature of magazines

• Inserts

• Timing and Frequency

• Position

• Testing

• How to buy direct response space

Newspapers

• Different types of newspapers

• Local

• Regional

• National

TV/Radio

• Broadcast radio

• Narrow cast radio

• Position

• Testing

Telemarketing/Teleservices

• Inbound

• Customer service

• 1900/1800

• Integrated into other direct marketing services

• Particularly outbound

• Outbound

• Selling

• Customer service

• Integrated into other direct marketing services

• Staffing

• Privacy issues

Digital

• So many options

• SEO

• Online Advertising

• Database marketing

How are different segments effected

Blog Exercise 2Day 2

Given the definition of Direct Marketing, are catalogues an example of DM Media?

PROJECT

THINK ACTIMPACT OF DIGITAL? IMPACT OF GLOBALISATION?

Time for further reflection•How has the media changed over the years?

BREAK• Feel free to go outside...but be back in 15 mins

Topic 6Legal Issues in DM

Legal Issues in Direct Marketing

• The most significant issue to affect direct marketing is that of privacy

• Worldwide trend towards protecting privacy

• Particularly in first world countries

• Much of the trend driven out of the EU

What is Privacy?

• Different to confidentiality

• A reaction to the electronic age

• Privacy is the right to control the dissemination of personal information, whether or not “confidential”

• Originally tied to financial information now more broadly defined

A company’s statement of privacy

• An organisation should set out in a document clearly expressed policies on its management of personal information. The organisation must make the document available to anyone who asks for it.

An organisation should set some internal privacy guidelines

• Policy needs to cover:

* collection

* use

* accuracy

* security

* openness

* access and correction

* health information

What are the broader marketing issues?• Consideration of use & disclosure of personal

information collected after commencement of respective company’s privacy law

• Most international legislation allows use & disclosure for direct marketing where:

• Primary purpose of collection

• Related purpose within reasonable expectations

• Consent

• The ability to opt out

• Direct marketing exception applies

Opt Out• Privacy guidelines suggest following elements:

• individual likely to have received & read information

• ability to opt out clearly stated

• individual likely be aware of implications of not opting out

• opting out freely available

• no financial cost to opt out

• consequences of not opting out harmless

• individual fully restored to position if later opts out

How does this affect the digital environment?

• Most privacy legislation indicates that consent cannot be implied to receive online marketing material:

• usually difficult to confirm message read; and

• may be adverse consequences for individual opening or replying to email

Direct Marketing Exception

• Organisation may use personal information (other than sensitive information) for direct marketing where:

• impracticable to seek individual’s consent

• organisation does not charge for requesting not to receive direct marketing communications

• individual not made such a request

• each communication displays opt out notice

• each communication contains organisations contact details

Blog Exercise 3Day 2

More legal issues to consider?

In Summary

Data Management

Key to growing your business

Key to access

Profitable segments

Media

Variety

Traditional media still plays a part

Legal issues in Direct Marketing

Privacy is a central legal aspect

wrap upquestions?

morning teaFeel free to go outside...but be back in 15mins

PROJECT

THINK ACTKEEP IT DIFFERENT ENGAGE YOUR AUDIENCE

Time for PresentationsOver to You