Outlook case study

1. Outlook.com case study Matt O’Day Gabriel Valdez Malpartida

2. Agenda What is Outlook.com? Outlook.com/Windows marketing strategy Marketing executions: launch -> now So… What’s our challenge?

3. What is Outlook.com?

4. What is Outlook.com? Outlook.com is the best email service for personal productivity. Outlook.com marks the beginning of Microsoft’s move toward one email brand: Outlook. Whether you’re part of a large organization, small business, school, or just want the best personal email service, there will be an Outlook solution for you. Outlook.com: personal productivity Outlook on Office 365: small businesses / schools Outlook client with Office 2013: enterprise / large organizations Microsoft’s other email service – Hotmail – will continue to operate separately, though users will be able to upgrade into Outlook.com while keeping all of their information (including address.)

5. What is Outlook.com? Outlook.com is built with four pillars in mind Modern user interface Built with more space dedicated to email – less to other services + advertising. Options appear when you need them – not cluttered. Similar to Windows 8 style applications. Smart tools for email Exclusive filter capabilities – including automatic inbox cleanup and unsubscribe. Videos, photos and shipping updates automatically appear above messages. SkyDrive and Office Web Apps – send GBs worth of attachments and collaborate on Office docs. Connected to networks you use Sync your contact list with Facebook, Twitter, LinkedIn, Google, and Skype. Prioritizes your privacy We don’t serve ads based on your messages – and don’t serve any ads in personal conversations.

6. What is Outlook.com? Demo? Demo! http://www.outlook.com

7. Outlook.com Marketing Strategy

8. Outlook.com Marketing Strategy Industry (online services) landscape Cloud services beyond communications are growing rapidly Dropbox, SkyDrive, and iCloud usage up exponentially – online file storage / access becoming more mainstream. • Communications space is getting much more crowded • Beyond the three major email providers (Google / MSFT / Yahoo), people can send more messages in more different ways. • Social networks (Facebook / Twitter / LinkedIn / Tumblr / Pinterest / Path / Foursquare … G+?) • Video calling (Skype / Google Hangouts) • Mobile (All of the above + text messaging / iMessage) Mobile usage growing like crazy Almost 50% of time spent on smartphones is email 25% of email is opened on smartphones

9. Outlook.com Marketing Strategy Why email? Email is the gateway to cloud services Tightly integrated services – like Google Docs or SkyDrive – derive most of their userbase from people who are heavy webmail users. Email is top-of-mind More than 50% of U.S. online consumers check email before visiting any other websites when they start the day. Almost 50% of smartphone use is devoted to email.

10. Outlook.com Marketing Strategy Competitive landscape ?

11. Outlook.com Marketing Strategy Why do people get email addresses? Most new email addresses are secondary (or tertiary) The overall US population using email will grow by less than 1% - but number of accounts per person will increase. Creating a new primary address is rare The costs of switching are perceived to be high. Any new account created is 8x more likely to still be secondary (at best) than primary after 3 months.

12. Outlook.com Marketing Strategy The five drivers of email address acquisition

13. Outlook.com Marketing Strategy So, Gmail’s pretty popular… Why is that? Perception is king – and users don’t compare services People rely on perception (or perception of their influencers) to tell them what’s best. There isn’t much taste-testing. In a 2011 survey, Gmail beat Hotmail in “Who is the market leader?” by 13 pts. Strong 1st party attach 25%+ Gmail signups come from other Google services (increasing with Android) Gmail users have multiple accounts 70% of new Gmail signups come from people with Gmail accounts Converting secondary to primary 25% of people who use non-Gmail as primary and sign up for Gmail account convert in 4 months

14. Outlook.com Marketing Strategy Primary email signup drivers

15. Outlook.com Marketing Strategy Who we target “Tech Trendsetters” 20% of the market – most likely to share tech advice with others. Big digital / TV / out-of-home executions Not necessarily super geeky – but aware of trends. Examples: Oprah, probably most of you. “Tech Enthusiasts” 1% of the market – a subset of Tech Trendsetters. Leading edge of adoption. Digital / one-on-one executions. High $$/person. Examples: people who swap smartphones > once/yr

16. Past marketing executions

17. Outlook.com Marketing Executions Launch – July 31, 2012 Laser focus on Tech Enthusiasts 50 pre-briefs with press and tech influentials – let respected journalists tell our story without bias. Engagement on enthusiast forums / reddit as the Outlook.com team. Hotmail users specifically not targeted While Hotmail users have a relatively easy upgrade path to Outlook.com, we wanted our story to be Gmail compete first. http://www.youtube.com/watch?v=uDI6Itn7soQ&t=38s

18. Outlook.com Marketing Executions Launch – July 31, 2012

19. Outlook.com Marketing Executions “People are Saying” – October-Present Goal: Increase perception of Outlook.com among Tech Enthusiasts TEs want to be the first to know about new products / services. A small group of people influence them – certain journalists from credible tech sites such as The Verge, Engadget, & Techcrunch. Insight: Pull quotes from TE-respected journalists and let them tell our story Be straightforward, simple, and most importantly, use credible sources to share our point. Target TEs smartly – sites like Gizmodo, BBC America Tech, and Cnetindex high.

20. Outlook.com Marketing Executions “People are Saying” – October-Present

21. Outlook.com Marketing Executions Social? (or: “Do you guys do Pinterest!?”) “Social” is an incredible challenge for a free service of 300+ million We’ve got great customer support channels on the web – we don’t want to make Twitter / Facebook alternative support channels. We do want to get our fans information that they’d want – without fragmenting our best content. How do we do social media at the moment? In order of importance: Our blog – the best source of up-to-date information on the product Twitter – share links to the blog, event details, and interaction with the team – we don’t use an agency. Our target audience is very active on Twitter. …. …. N. Facebook – similar to Twitter, but not as popular with our target audience.

22. Our challenge

23. Our challenge Build the Outlook.com General Availability Campaign We want to introduce Outlook.com to the US To this point, only the 1% of the market – Tech Enthusiasts – has seen much Outlook.com coverage. In March, we’ll unveil the email service with a large campaign consisting of TV, digital, and out-of-home. Our goal: Get on the consideration list of our target At the end of our campaign we’d like to increase awareness of Outlook.com with our target market to answer the question: “If you needed a new email address, which service would you use?” This will mark the end of our “Preview” stage We’ll have all the features currently available plus Skype integration and Windows 8 styled calendar

24. Our challenge Important related moments in 2013 Windows 8 picks up steam Win8 will have a gigantic marketing budget and momentum through the holidays. Requires a Microsoft Account – any email (similar to iOS), but @outlook will sync email / contacts / cal. Office 2013 launches Office 2013 will include the new version of Outlook client – featuring many similarities to Outlook.com. The Outlook calendar (both client and web) will be similar and sync effortlessly. Skype available in Outlook.com Users will be able to link their Skype accounts and video call from directly inside the inbox.

25. Our challenge There are two unique difficulties We’re not going to target Hotmail users There is a separate team dedicated to Hotmail user marketing through different channels. We have no ability to change our products Engineering cycles are 4-6 months long – we’d love to add features into Outlook.com / Skype / Windows 8 / Office 2013 – but we can’t.

26. Additional info

27. Additional info Learn more about Outlook.com Our merchandising site http://www.outlookpreview.com Comparison to Gmail & Hotmail: http://windows.microsoft.com/en-US/windows/outlook-compare How to try as a Gmail user: http://windows.microsoft.com/en-US/windows/outlook-compare-gmail Our blog Our launch blog post: http://blogs.office.com/b/microsoft-outlook/archive/2012/07/31/introducing-outlook-com-modern-email-for-the-next-billion-mailboxes.aspx Social YouTube – includes short product walkthrough Twitter Facebook Email us mattoday@Microsoft.com