HK Post Seminar March 9, 2012

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1 HK Post Seminar March 9, 2012 Presented by: Eugene Raitt Chairman of HKDMA Former Chairman, DMA Hong Kong Direct Marketing Association

2 CASE STUDIES Hong Kong Direct Marketing Association

3 Case Study: Banking Bank of New Zealand launches business loans through accounting firms Product promoted: Debtor Finance, a specialized loan that lets businesses borrow funds using their outstanding invoices as security. Target: Medium sized accounting firms in metropolitan areas, with small to medium business customers. Accounts are a key influencer in loan selection decisions. Campaign objective: motivate 10% of accountants to request more information on the product.

4 Campaign tactics List of accounting firms was qualified via phone. Direct mail followed, in the form of a check for $40,000 made out to the customer. Check sealed in clear perspex plastic. No outer envelope. Reverse side was a personalized letter from the finance manager. Finance manager followed up by phone. Source: The DMA Echo Awards

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7 Plastic-enclosed check campaign results Within two weeks of the campaign finishing, 70% of all accountants had asked for more information. At the time of Echo award application, over $1,000,000 in new lending had already been applied for, with more deals in the pipeline. Anecdotal feedback: One of the most arresting things the accountants had ever received through the post.

8 Best practice takeaway for bankers Dimensional mail is expensive, but very impactful. Dimensional mail often generates a higher ROI than other mail formats in business markets.

9 Case study: Healthcare PR, branding and lead gen work together for TeleHealth Services To drive business for a patient education product called TIGR Education System, the company used integrated marketing. A PR effort to establish his company as a thought leader A multi-channel branding campaign Targeted and sales team follow-up to generate warm leads Source: Marketing Sherpa

10 Recent sales wins drove the PR strategy Sales team filled out a win form after every closed deal. Form asked for: Name of client, contacts at hospital, products they chose Specific pain points How the client envisions our products as remedy to their pains "It started off slowly, but once they started seeing their name in lights, so to speak, it really caught on, and the sales team enjoyed it."

11 PR distribution used Google Alerts Press releases went through usual newswire services, such as PR Newswire. Also used Google Alerts to find relevant health care industry trade publications. - When an article on subjects like "health care IT" appeared in their alert, the team went to the publication s website to find contact information for an editor. - Added that editor s name and address to their list of media outlets for press release distribution. - Gave press releases to the sales team to use for sales support.

12 Thought leadership articles prepared, based on common customer pain points Hospitals are slow to approve press releases, so they expanded their PR strategy around articles: The current nursing shortage, and how the TIGR system automates certain tasks and frees nurses to focus on patient care. How patient information systems can improve patient satisfaction scores, which play a role in a hospital s accreditation process. Bylined articles, media interviews with executives.

13 Branding campaign addressed product features and benefits Media: online and print ads in trade pubs, plus direct mail. Key benefit themes: Improving the patient experience Improving patient education Improving patient outcomes, such as reduced readmission rate

14 Brand campaign started narrow, and then broadened to buying committee members Initial target (8,000): Chief Nursing Officers VPs of patient care services Patient educators Expanded target to members of buying committee (15,000): CIOs Patient safety and quality management personnel Compliance officers

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16 Direct mail tactics 3 direct mail pieces designed to resemble tools that nurses and other hospital personnel used every day. A nurse s clipboard A patient s file A prescription pad Direct mail pieces were sent about 1-2 months apart, to correspond to ad was running in trade publications or online. Mail copy was focused on product features and benefits, and the call-to-action was minimized. An 800 number and customized address. No offer. Call to action to learn more. NOTE: These are NOT direct mail best practices.

17 Branding postcard shaped like nurse s clipboard

18 Postcard 2, shaped like patient folder: outside

19 Postcard 2: Inside

20 Lead generation using and phone Targeted 1,500 top hospitals, based on: Sales team input about their most desired potential accounts Institutions with a high private pay rate (as opposed to high Medicare payment rate), which were more likely to have cash on hand for investments Likelihood of having a need and budget for new IT investments, such as hospitals expanding or building new facilities Objective: take a meeting with a sales rep.

21 messaging The first introduced the TIGR system, with a stronger call-to-action, to contact a sales representative at their direct telephone number. also included a link to a recently published trade article on the value of improving patient outcomes, generated by their PR campaign.

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23 Phone follow-up by sales Sales representatives followed up by phone 1 week after prospects received the . Non-connects received a reminder 1 week later. Prospects who still had not responded received a second follow-up call another week later. s were staggered to groups of prospects on a weekly basis. Each rep phoned the prior week s recipients, while the next batch of 10.

24 to non-responders A third campaign went to non-responders with a message customized for each prospect, based on data about their specific institution Messages varied based on hospital scores in key areas like treatment of heart failure and patient satisfaction ratings. Through data analytics, marketing identified areas of improvement that could raise a hospital s score, such as delivering smoking cessation assistance to patients with heart disease. Members of the sales team delivered this two weeks after their final contact with prospects during the mid-level lead generation campaign. was followed with a phone call a week later.

25 TeleHealth Services campaign results The lead-generation campaign is still ongoing, but early results are promising. "It s actually going very well at this point. I knew it was going to take multiple touches from all the levels to produce results," says the marketing leader. The campaign has already generated 20 warm leads, defined as institutions that are actively looking for a system and have a budget in place. Another leads in the pipeline are being nurtured with further details about the product s benefits and value. One of those warm leads is "about 70%-75%" through the sales process and is likely to close. That one deal alone would pay for all three of the branding and lead-generation campaigns. response rates: o The TIGR introductory generated a 12.5% open rate o The customized highlighting an institution s specific pain point generated a15% open rate o Conversion rates for the two s follow a similar track, with the customized delivering a higher conversion rate All seven of the articles have been picked up by a trade publication.

26 Best practice takeaway for healthcare Make every touch a directresponse opportunity.

27 Case study: Telecommunications New Zealand Telecom seeks mobile phone upgrades and to prevent customer defection Audience: New Zealand Telecom customers who have contracts that are about to expire. Every month, 10,000 customers fall into this category. Objective: Upgrade them to a new mobile phone, lock them into a 24-month contract, reduce churn, and achieve a 20% sales response. Marketing tactic: A lead generation direct mail sending customers to a microsite. Customer enter a mobile number and their customized upgrade offer comes up. Creative strategy: Sweet Deal pack containing irresistible jelly bean candy. Hong Kong Direct Marketing Association

28 Hong Kong Direct Marketing Association

29 Sweet Deal campaign results Sweet Deal yielded an unprecedented 36% response (sales) a 80% incremental gain in sales compared to prior upgrade campaigns. The online element drove additional sales through a new channel, with 23% of those who visited the online microsite, converting to a sale. As a result, the Sweet Deal campaign has now been turned into a regular upgrade program for Telecom New Zealand. PRODUCTION COST: US$2.72 per pack. Online site development cost US$20,000. Hong Kong Direct Marketing Association

30 Best practice takeaway for telecom marketers Direct mail combined effectively with a web-based response form allows lowcost delivery of customized offers.

31 Case study: Consumer services H&R Block needs to acquire and retain As a storefront consumer tax preparation service, H&R Block only has one large selling season: Tax time (January through April). The target audience: consumers with complicated tax returns, who need their refunds fast. They have 3 major competitors Branded retail tax services (Jackson Hewitt, Liberty) Mom & Pop tax preparers Tax prep software and online solutions

32 The solution: Integrated direct marketing Segmentation, modeling and profiling to identify highvalue prospects 45 target profiles, 11 messages and offers Direct mail and in season to stimulate usage (Jan. 1-23) post season to retain for next year Offer testing by life event segments: New Homeowners: Home Depot gift card vs. sweepstakes offer New Movers: Target gift card vs. sweepstakes offer New Parents: Diaper coupon vs. Target gift card vs. sweepstakes offer Newlyweds: Double Check Challenge/sweepstakes vs. Double Check Challenge Target gift card

33 Creative strategy: Versions for new parents, new home-owners and new movers, about new deductions that applied to their recent life changes. For example, a new mover received a piece with a large visual of someone with moving boxes with the headline "New digs? New deductions!" The inside of the piece provided information about the implications of the new tax law changes. A tear-off panel was the call to action. It reinforced the offer and reminded about the appointment. 215

34 The direct mail look and feel is extended in this to prospects, about H&R Block s capabilities in electronic tax filing.

35 An offer-driven promoting H&R Block for tax preparation.

36 Retention to current-season customers, persuading them to come back next year. Notice thank you subject line.

37 The results: 188% better than goal - Overall the acquisition direct marketing campaign for 2003 generated 700,000 tax client leads, 188% over goal. - The acquisition direct mail campaign average response rate was 4% higher than forecasted, and the cost per acquisition was 29% under projected cost. - The life stage acquisition messaging had an average response rate 7% higher than forecasted. - The retention direct mail campaign response rate was 69%, 4.35% higher than projected. - The acquisition converted prospects at an average rate of 59% which was 18% above set goals. - The retention campaign converted prospects to clients at a rate of 77%, which was 19% above set goals. - Total campaign cost, in rollout, was over $1 million.

38 Best practice takeaway for services marketers Segmentation allows greater message relevance and tends to improve response rates.

39 Your presenter Eugene Raitt Chairman of HKDMA Former Chairman, DMA Hong Kong Direct Marketing Association

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