Pluris Marketing

Pluris is a Marketing Optimization and Strategy firm dedicated to serving multi-channel retailers in the design and execution of expense reduction and innovative practices to improve ROI.

For more, contact VP of Sales Brian Jones at 617.797.7773 - bjones@plurismarketing.com

Transcript

1. © Pluris 2012 Confidential - All Rights Reserved Pluris Capabilities Brief Optimizing the Value of Consumer Engagement July 2012
2. © Pluris 2012 Confidential - All Rights Reserved Marketing Optimization- Key elements 2 Marketers looking to optimize their direct response efforts are challenged to consider the effectiveness across three key levers that a marketer controls: Contacts, Media Channels and Offers Marketers design Offers, Promotions, and Circulation to improve consumer response to specific offers Marketers choose Media Channel to determine distribution of Offers Circulation/Contact Strategy is strategically planned– and generally mandated by objectives and cost constraints What, Who, Where + How often Who, Where + How often Pluris optimizes all three key levers Media Channel Offer Contact Where + Who
3. © Pluris 2012 Confidential - All Rights Reserved Pluris Process 3 Our process is based upon years of experience in meeting client objectives through a foundational process of understanding consumer behavior, segment identification and marketing optimization. Business Objectives Historic Consumer Behavior Consumer Segments (Personas) Marketing Optimization & Simulation Measurement
4. © Pluris 2012 Confidential - All Rights Reserved Contact Optimization 4 Offer Contact Channel
5. © Pluris 2012 Confidential - All Rights Reserved Contact Optimization 5 Contact optimization determines the optimal frequency, cadence and distribution of contacts given consumer behavior and business objectives and constraints Contact optimization determines the: • Frequency • Cadence, and • Distribution …of contacts by media type and across media types As determined by Consumer Behavior Objectives & Constraints Offer Contact Channel
6. © Pluris 2012 Confidential - All Rights Reserved Contact Optimization – Approach 6 Pluris utilizes a robust approach to identify multiple dimensions of consumer- level behavior and their response to variable offers in order to optimize contacts Media-based Response Attribution Media-based Revenue Attribution Consumer Likelihood to Respond Models Consumer Seasonal Purchase Behavior Media-based Contact Fatigue Media-based Cadence Marketing $ Budget by Media by Month Contact Minimums by Media by Month Order Volume Objectives by Media/Month Revenue Objectives by Media by Month Offer Type, Category & Level Elaborate, Consumer-level Identification and Monitoring of Behavior Defined in the Context of Business Objectives & Constraints Effective contact optimizations account for varying offer types. Contact fatigue is directly related to offer value and offer type. Contact Optimization Offer Contact Channel
7. © Pluris 2012 Confidential - All Rights Reserved 7 Contact Fatigue -500% 0% 500% 1000% 1500% 2000% 2500% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ROMI Contacts in the Period Marginal ROMI Cumulative ROMI 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0 $100 $200 $300 $400 $500 $600 $700 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 % of Total Sales Marketing Cost Per Sale Contacts in the Period Marketing Cost… Avg. Marketing… For each Segment, the optimal number of contacts is determined After 7 contacts, the client realized negative incremental return on it’s Marketing Investments Return On Marketing Investment* by # of Contacts Marketing Cost per Order by # of Contacts After 9 contacts almost 90% of total orders are realized and an incremental cost per order of over $200, On average, the client invests nearly $400 per order past 9 contacts
8. © Pluris 2012 Confidential - All Rights Reserved Contact Optimization – Case Study 8 Results For a single Market, Contact Optimization added over 4K sales and $2.6M in new revenue at 10x ROMI Challenge: For this marketing organization, Direct Mail performance was lagging. Getting more sales out of direct mail without increasing costs or number of contacts was critical to meeting the company’s objectives. Offer Contact Channel Consumers were assigned to segments based upon their response behavior Optimal volume of annual contacts are determined to maximize Sales Since contacts are equivalent, cost structure variance is indifferent The shift in contacts results in an incremental 4,000 annual sales Segment/Target: A B C D E F TOTAL Campaigns (Optimized) 20.00 8.24 8.00 8.00 4.00 4.00 9.53 Campaigns (Status Quo) 10.16 9.07 9.07 8.18 9.76 13.56 9.53 Change 9.84 (0.83) (1.07) (0.18) (5.76) (9.56) 0.00 Total Subs/Prospects 51,559 103,079 27,369 55,806 26,684 23,917 288,414 Optimized Contacts 85,932 70,781 18,246 37,204 8,895 7,972 229,030 Status Quo 43,671 77,893 20,676 38,053 21,710 27,026 229,030 Variance 42,260 (7,112) (2,430) (849) (12,815) (19,054) 0 Optimized Contacts 20,954 12,316 2,986 6,281 751 779 44,066 Status Quo 11,832 13,960 3,384 6,424 1,832 2,641 40,073 Variance 9,122 (1,644) (398) (143) (1,081) (1,862) 3,993 Optimized Contacts $422,784 $348,242 $89,770 $183,044 $43,762 $39,224 $1,126,826 Status Quo $214,863 $383,235 $101,724 $187,221 $106,813 $132,969 $1,126,825 Variance $207,921 ($34,993) ($11,954) ($4,177) ($63,051) ($93,745) $0 Year 1 Year 2 Year 3 Incremental Revenue (annualized) $2,590,195 $4,177,232 $5,149,626 SEGMENT Cost Sales Contacts
9. © Pluris 2012 Confidential - All Rights Reserved Offer Optimization 9 Offer Contact Channel
10. © Pluris 2012 Confidential - All Rights Reserved All of Your Marketing Can Be Described 10 Through Meta Data Promotion Product Price E-mails, websites, coupons, direct mail, posts etc. all have meta data
11. © Pluris 2012 Confidential - All Rights Reserved We Disaggregate Offer Elements Subject Line Call to Action Offer Promotion Hi/lo Price Number of Prices % off Number of % off Savings/Amount Day of Week Hero Image Number of Images Dominant Colors Fonts and Sizes Above/below fold 11 Our proprietary Offer Catalog houses all offer elements- rigorously tracks, measures and scores meta data + combines it with purchase history and overlay data.
12. © Pluris 2012 Confidential - All Rights Reserved We build an Offer Catalog 12 Which is a repository of all Offer elements
13. © Pluris 2012 Confidential - All Rights Reserved Offer Optimization - Assignment 13 Offers are assigned based upon a multitude of information from marketers selection of objectives, constraints and over-rides to a myriad of behavioral models and customer information Account: XYZ Offer P(buy) Value 1. BOGO for $49.99 0.50 $50 2. Free Shipping on $75 0.35 $12 3. 30% off full priced styles 0.10 $70 4. $20 Off Online Orders 0.07 $20 5. Deferred billing 90 days 0.02 $44 Optimization Levers • Objective • Constraints • Overrides Offer Dimensions • Price • Product • Promotion • Place Offer Catalog • All offers available for a customer or a prospect Models and Data • All information and models available for a customer or prospect • Price • Product • Promotion • Place Assignment
14. © Pluris 2012 Confidential - All Rights Reserved Optimization – Managing Levers • Select Business Objectives o Primary Goal  Maximize Value  Maximize Purchases  Combination o Weight Priorities (flexibility)  Specific Product  Specific Offer • Select Business Constraints o Contact Thresholds o Segment Requirements o Geography o Over-ride Conditions (highly flexible) 14 The Pluris Solution allows for the Marketer to set specific business goals and constraints, while providing the flexibility of prioritizing any product or offer
15. © Pluris 2012 Confidential - All Rights Reserved Product based on next best product or content consumed Based on channel preference model Price point based on elasticity or ability to pay Key selling points and messaging based on persona Offer based upon propensity to respond Dynamic output for each customer 15 Creative and Imagery driven by product and consumer profile
16. © Pluris 2012 Confidential - All Rights Reserved Offer Optimization at Retail POS & Call Center 16 Optimized offers are presented for every shopper (prior customer or existing customer). •Every consumer is presented an optimized offer designed for that consumer •Best Offer is persistent in right pane. •“Sales/Marketing” tab, all ranked optimized offers are provided to the associate Call Center Screen Pop
17. © Pluris 2012 Confidential - All Rights Reserved Typical Results $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Jul'11 Aug Sep Oct Nov Dec Jan'12 Feb Mar Apr May Incremental Orders 3Q’11 4Q’11 1Q’12 2Q’12 17 Versus the control group, consumers receiving optimized offers have provided almost $7 million (of annualized revenue) through incremental orders in the past eleven months.
18. © Pluris 2012 Confidential - All Rights Reserved Key Takeaways • Pluris provides all three aspects of marketing optimization • We fundamentally understand strategic and tactical marketing • We have expertise and knowledge across all marketing functions: • Identifying and managing segments • Creating differentiated contact and offer strategies • Optimizing marketing to consumers through contacts, channels and offers • Managing marketing campaigns from strategy through measurement 18
19. © Pluris 2012 Confidential - All Rights Reserved Thank you! Contact: Brian Jones Vice President 617-797-7773 bjones@plurismarketing.com 19
20. © Pluris 2012 Confidential - All Rights Reserved Appendix 20
21. © Pluris 2012 Confidential - All Rights Reserved C O N S U M E R MORE Dashboards M A R K E T E R Reporting Offer Portal Client Systems CUSTOMER DW ECOMMERCE SYSTEMS AND POS + Demos & Lifestyle + Life-Stage + Purchase Behaviors + Security & Preferences Enhancement Data Data Adapters Offer Catalog Consumer Data Analytics Optimization Internal External Chat Web Messaging + Catalogs Response Management Request Management WEB SERVICES OFFER OPTIMIZATION ENGAGEMENT PLANNING Optimization Map 21 SaaS – Simple Integration; Speed to Value. Offer Contact Channel
22. © Pluris 2012 Confidential - All Rights Reserved Services Continuum 22 We blend a myriad of services and technology to optimize the value of consumer engagement all delivered through SaaS. + Strategy, Process, and Resource Management + Predictive Modeling and Segmentation + DM Strategy + Data Analytics Platforms + Customer Marketing Database + BI, Marketing Automation + Touch Point Integration + Offer Optimization: • Mix Development &Management • Offer Delivery and Integration • Offer and Content Catalog + Contact Optimization + Multi-channel Optimization ANALYTICS & STRATEGY OPTIMIZATION MARKETING ENABLEMENT CAMPAIGN SERVICES + Campaign Meta Data + Campaign List Services + Media and Response Attribution + Post Campaign Analysis