Presentation to INFORMS Board of Directors

1. Building a “Total System” Marketing Model Presentation to INFORMS Board of Directors Presented by: Ann O’Daniel and Gary Bennett August 1, 2007

2. Strategic Objectives: • Create a cost-effective and sustainable Marketing Plan that integrates marketing initiatives for all INFORMS products and services • Enhance INFORMS value proposition through customer knowledge-based marketing strategies and tactics • Use Marketing as a “Growth Engine” for INFORMS organization not just Operations Research profession

3. -Peter Senge, “The Fifth Discipline” “We tend to focus on snapshots of isolated parts of the system, and wonder why our deepest problems never seem to get solved. Systems Thinking is a conceptual framework…to make the full patterns clearer, and to help us see how to change them effectively”. Sound familiar?

4. Phase One: Analyze all Critical Factors Phase Two: Create Customer-Centric Relationship Marketing Model Phase Three: Operationalize a Sustainable Integrated Marketing Plan The “Total System” Approach

5. Activities Interviewed Key Stakeholders including Board Members, Staff and select INFORMS Members Conducted Market Analysis – Including Industry Trends and Emerging Opportunities Reviewed and Analyzed all INFORMS Products and Services Reviewed all Customer/Member Research Researched Sister Society Offerings and other Competitive Threats Phase One : Analyze all Critical Factors

6. The Critical Distinction: We separated Marketing Opportunities from Business Opportunities

7. We evaluated all INFORMS Strengths Weaknesses, Opportunities and Threats Phase One: Situation Analysis

9. Librarians and Agents Academic PhDs PhD Students Practitioners Military/Government and Consultants to Phase One: Opportunity Analysis We shifted our focus from INFORMS Products to Key Customer Segments Then prioritized Segments based on current revenue value and potential Lifetime Value (LTV)

10. From our Situation Analysis: What is the emotional need all customer segments have in common? “Establish/Enhance Professional Identity” Phase One: Opportunity Analysis

11. The INFORMS Value Proposition: “INFORMS is THE association that will help you Establish and Enhance your Professional Identity” Umbrella Value Proposition applies to all products, services and segments throughout all stages of professional development (Can be customized for communications to different segments) Phase One: Opportunity Analysis

12. Librarians INFORMS helps you enhance your professional identity by providing you with valuable information and tools to help you be as efficient and effective as possible PhDs INFORMS helps you establish and enhance your professional identity by providing a host of latest best-in-class research information, resources, networking, publishing and mentoring opportunities in your special interest and field of study, roadmap for volunteer opportunities Masters Students INFORMS helps you establish your professional identity by providing mentors and assistance in finding the best career or higher education path, internships, research opportunities and networking among the best in your potential field of interest Practitioners INFORMS helps you establish and enhance your professional identity by providing you with career planning tools, networking opportunities, jobs and candidate listings best-in-class Journals, and case studies of applications that are relevant to your profession, roadmap for volunteer opportunities Military and Government (Not enough known yet about their needs that differentiates them from Academics or Practitioners) Phase One: Opportunity Analysis

13. We Made a Critical Paradigm Shift: from Product-Centric to Customer-Centric Marketing Model that incorporates existing as well as new programs and tactics

14. Phase Two: Create Customer Relationship Marketing Model Build Brand Awareness Consistent BrandingPublic Relations and OR Advocacy Word of Mouth Reward Loyalty Recognition of Value Tier Progression & Recognition Optimize Ease of Renewal Optimize Acquisition Targeted TestingSegmented/Tiered Offers Data Capture-Bounce Back HVC Profiling Build Interdependence Personalized Engagement Tools Targeted Fulfillment Affinity Segmentation Intellectual & Social Capital Creation Refine Customer Knowledge Data Analysis Customer Value Assessment Data Mining LTV Profiling

15. Targeted, Data-Driven Direct Marketing Public Relations and Outreach INFORMS Grassroots Network of Highly Engaged Members and their WOM Phase Two: Create Customer Relationship Marketing Model The“Growth Engine” of Member Relationship Marketing Model:

16. 90% of people cite Word of Mouth (WOM) as one of the best sources of ideas and information -eMarketer Word of Mouth Report 2005 Consumers are 50% more likely to be influenced by WOM than traditional ads -Intelliseek September 2005 “Whether the connection is long or short, the person-to-person information exchanged online carries a weight that traditional corporate messaging simply can’t match”. -eMarketer Word of Mouth Report 2005 Phase Two: Create Customer Relationship Marketing Model

17. The Power of the Customer’s Voice “Satisfied customers become, in effect, part of the company’s marketing department, not only increasing their own purchases but also providing enthusiastic referrals…customer loyalty provides companies with a powerful financial advantage - a battalion of credible sales and marketing and PR troops who require no salary or commissions.” - Fred Reichheld, The Ultimate Question Phase Two: Create Customer Relationship Marketing Model

18. The Trend is our Friend Major Advertisers are re-allocating marketing investments to more measurable programs and channels – better ROI P&G is beginning to build relationships across brands to “cohort segments” INFORMS has active, highly intelligent, technically savvy WOM network in place INFORMS Strongest “buzz agent” may be the Academic Advisor INFORMS has strong brand reputation built on quality service and best-of-breed products For both Academics and Professionals, key motivation is: Establish/Enhance Professional Identity and Build Social Capital Phase Two: Create Customer Relationship Marketing Model

19. Fred Reichheld’s Net Promoter Score Promoters – Loyal enthusiasts who keep buying and urge friends to buy (actively promoting) Passives – Satisfied but unenthusiastic and can be wooed by competition (not actively promoting) Detractors– Unhappy Customers trapped in a bad relationship (actively detracting) Phase Two: Create Customer Relationship Marketing Model

20. The Ultimate Question: “How likely is it that you would recommend INFORMS to a friend or colleague?” On a scale of 1 to 10 9 or 10 is considered “Promoter” 7 or 8 is considered “Passive” 0 to 6 is considered “Detractor” Discount Passives and calculate % of total: P – D = NPS Phase Two: Create Customer Relationship Marketing Model

21. Begin by asking the “Ultimate Question” of all members in a Member Satisfaction Survey Establish a benchmark for monitoring NPS score YOY Then track and analyze individuals’ promotional ACTIONS (not just stated intentions) as critical growth engine of MRM Encourage, Recognize and Reward actual engagement in and promotion of all INFORMS products and programs Phase Two: Create Customer Relationship Marketing Model

22. Test Tactics to Increase Member Engagement Segment and refine targeting for Current DM programs Test new incentives to join, promote and become more active in all INFORMS products and services Create an ongoing Recognition and Rewards Program throughout member lifecycle utilizing all communications channels Test different communications messages to emerging international and ethnic segments with approaches customized to reflect their styles and values Measure results by tracking individual member engagement Phase Two: Create Customer Relationship Marketing Model

23. Marketing Strategies by Segment and Life Stage Phase Two: Create Customer Relationship Marketing Model

24. Measure all Marketing Efforts through Ongoing Data Analysis “7 Measures of Success: What Remarkable Associations Do That Others Don't” The Center for Association Leadership found a clear correlation between successful associations and those thatbuilt the organization around the collection and use of data (#4 of the “7 Measures” was Dialog and Engagement) Phase Two: Create Customer Relationship Marketing Model

25. Member Engagement Improves Retention as well as Acquisition Efforts In a recent regression analysis conducted by Marketing General, Inc. for one association, an interaction or transaction was a positive predictor of renewal in every case Research also showed that an important predictor of membership retention is behavior. An association that actively seeks to engage members-at almost every level-is more likely to enjoy higher levels of retention Phase Two: Create Customer Relationship Marketing Model

26. Become a Testing and Learning Organization No Silver Bullet. Commit to systematically building on success and learning from failuresby employingfact-based analysis Continually test and refine acquisition and retention tactics to all segments Test a “Tiered Membership Marketing” concept with tiered benefits and “tier migration” incentives Continually evaluate Long Term Value of customer segments Phase Two: Create Customer Relationship Marketing Model

27. Employ the “Total System” Customer/Member Relationship Model as a Strategic Advantage, not just Expense Phase Two: Create Customer Relationship Marketing Model

28. Organize and Appropriately Staff to: Mine existing customer/member data Consistently capture and continuously analyze ongoing transactional and behavioral data Create “Member Dashboard” to continuously track all activities Manage, analyze and refine ongoing marketing tests Continuously refresh and enhance IOL as MRM portal Design and analyze ongoing member research by segment Phase Three: Operationalize MRM

29. What will happen if we don’t ? Traditional forms of “push” advertising will not improve INFORMS Customer Experience, Satisfaction, WOM and Relevance to members Without testing and learning systems built into the plan, marketing programs will be harder to sustain cost-efficiently Non-members (like Practitioners) who are not aware of INFORMS and Non-engaged members will continue to be at high risk of joining other societies Low regular usage of IOL (25%) will not improve Customer Experience and help INFORMS become a web-centric organization Phase Three: Operationalize MRM

30. 2007 Action Items Align Products with Customer Segments

31. Begin to transform IOL into a primary marketing portal with user experience testing and user needs evaluation. Begin to research and validate ideas for enhanced features and functions from member user and visitor perspective Create new user and visitor-centric information architecture for wireframe testing with users Recognize High-Value Customers/Members Mail a “Targeted Act of Kindness” note or reward from the President that thanks them for their continuous engagement with INFORMS and gives them a preview of some of the enhancements planned for 2008 Augment staff to mine existing data and begin identifying and profiling high value members Validate assumptions Identify new segments Revisit PR and Advocacy Program Plans Determine appropriate measurement and tracking criteria Integrate New Business Initiatives with Marketing Plans Identify key segment opportunities Create additional marketing budgets, testing strategies and timing 2007 Action Items

32. 2007 Action Items Establish consistent evaluation practice for all tactics Importance to Customer Value to INFORMS

33. Leverage Edelman Awards in Marketing Short term tactics: Place short Edelman related videos on YouTube Dr. Marco Zaider’s acceptance speech (Sloan Kettering, 2007 winner) Introductory video about field of OR and Edelman Competition Video of Anatomy of an Edelman winner Video Profile of Warner Robbins, 2006 winner Other Edelman DVD ideas for development in 2007: Grow Practice Meeting attendance: Mail Edelman DVD’s in high-impact package with response device to register for Practice Meeting Include DVD with January issue of Interfaces with “early bird” offer for Practice meeting registration Market the Profession: Mail 3 dimensional package with DVD to rented list of CIOs with invitation to Gala along with a call for entries to be passed on to Quantitative Department 2007 Action Items

34. New Member Outreach: Mail previous year’s Edelman DVD packaged with January issue of Interfaces and membership or subscription application Strengthen Readership of Interfaces: Split test mailing a copy of Interfaces shrink-wrapped with subscription application against Interfaces packaged with Edelman DVD and application Add links on HighWire Interfaces page to Edleman Acceptance Videos and summary written presentations on IOL Strengthen membership renewal: Create new “Members Only” benefit on IOL. Post Edelman videos on Teacher specific areas of IOL and encourage others to post videos. Announce via email links to members Position DVD as premium for early renewal on membership renewal area of IOL Mail DVDs as “Thank You for being loyal member” with letter from the President and membership renewal application 2007 Action Items

35. Short-term Marketing Tactics for Publishing Enhanced Librarians’ section of INFORMS Online Demonstrates we value their business and are dedicated to providing them with all the information they need to do their job efficiently Recruit a librarian advisory panel for INFORMS Journals Demonstrates we value their input, recognizes them to their peer community and builds ongoing dialog channel with this key customer segment. Publish Ahead of Print Initiative Helps reduce the backlog of accepted manuscripts Policy and Pricing for Legacy Archival Product New Cover Development for Operations Research 2007 Action Items