The New Direct Marketing in a Multi-Channel World

1. The New Direct Marketing in a Multi-Channel World Insurance Direct Marketing Forum Wayne Rosenberger – Harte-Hanks September 15, 2008

2. Old Media optimization Branded direct Creative Off-line database Measurement by media Post mortem analytics Offers driven by models New Media integration Brand driven by the Web Real time data Aggregated measurement Real time analytics Offers driven by interaction The Old Paradigm vs. The New

3. Goal Today Customer-Centric Business Impact Audience Multichannel Persona 1 • Cross-Channel Optimization • Relevant Product • Meet Indv. Needs & Interests • Right Time & Channel Campaign Performance Persona 2 Persona 3 Means of Getting There Data Integration User Research & Segmentation Ongoing Program Optimization With Analytics Behaviors Descriptors Multichannel Marketing Vision Campaign-Centric Strategy Shift Audience Channel Overall Audience • Generic Content • Drive RX Campaign Performance

4. The New Components Search Rich Media Behavioral Advertising Contextual Advertising Blogs RSS Podcasting Videocasting Mobile Messaging Widgets Web 2.0 & Social Networking

5. Web As A Selling ToolPreference-Driven Message Dynamic Content Messaging Engine Existing Customer New Customer Preference Profiles Preference Center Subscription Form

6. Web As A Selling ToolBehavior-Driven Message Model Trigger personalized abandoned cart message Transactional Messaging Engine Behavior Profiles Web Analytics Lifecycle Scoring abandoned cart Your Website

7. Dialog MessagingCommunicator Combine customer preferences, behaviors and marketing rules to control message content and timing Identify tactics based on customer lifecycle stages Link messages to online and offline behavior using business rules Trigger sequences to connect lifecycle stages

8. Horizon (BCBS New Jersey)Paid Search Case Study

9. Business Situation • Horizon BlueCross Blue Shield is the leading insurer in the state of New Jersey in the Individual Under 65 market • Existing programs included direct mail and print as lead generation mechanisms • Captive inside and outside sales groups closed all sales • A marketing database supports all marketing activity • Results from existing lead generation programs had flattened out • Need for additional channels to generate leads and sales

10. What’s Really New About This? • Instant engagement with customer • At the moment and the placethey’ve decided they need to buy • Perfect mix of location and timing • Location is right in from of them • Timing is all the time, any time, every time, whenever they’re ready

11. Search Engine MarketingProgram Description • Paid search through Google and Yahoo • Data capture landing pages • Distraction-free, competition-free • Low bandwidth demand • Instant lead transfer to inside and outside sales

12. Search Engine MarketingMethodology • Buy keywords that ensure top 3 positioning • Write compelling ads, and test them • Track visitors through to conversion • Use landing pages that will help complete the sale • Optimize based on conversion results

13. Many Channels – Same Result

14. The Search Result

15. Additional ChannelDirect Mail

16. Landing and Data Capture Page

17. E-mail / Blackberry Instant Message to Sales

18. Results – A Multichannel Success • The search engine project exceeded projections • Equivalent of mailing 146,400 pieces • CPL is equivalent to mail • CPL is <$20.00 • Conversion rate to sales is exceeds all other media • No degradation of direct mail results

19. Where Else This Might Lead • Greater integration of online and offline media • Traditional media used to push searches and landing page visits • Online enrollment application • Self-directed • Assisted by inside sales • New markets • Seniors • Adult children of seniors • Member services • Retention

20. Customer Centricity – Automotive Industry

21. Our Objectives Provide the dealer network with a best-in-class, national direct marketing program that builds dealer-customer relationships Drive customer pay revenue More multi-channel integration Increase speed to market Generate greater return on investment Optimize dealer enrollment and participation Continually reinvent program offerings

22. Marketing Communications Provides Dealers with greater access to create “intelligent” multi-channel communications, reduce dealer cost, and increase overall response Dealer Direct Mail New Best Email Opportunity Automated Voice Messaging Response Channels Maintain Call Center (Outbound) Segment Programs Channels At Risk PersonalizedWebsites Text/Mobile Timed-Based Communications Winback Behavior-Based Condition-Based Follow-up Automated Website Sales Events Call Center Accessories Newsletters Triggered Communications Event Communications

23. Communication Plan – Built in Solution Automated/Loyalty Campaigns Service Reminder – vehicle based Relationship Marketing – customer based On Demand Communications Express Campaigns Custom Campaigns Triggered Communications Immediate, triggered responses based on response/non-response to above campaigns Confirmations

24. Personalization, Relevancy, Response Data-driven communications based on customer insights, activities and placement in the customer lifestage

25. Personalization, Relevancy, Response Data-driven trigger based programs that integrate within a lifecycle communication framework

26. New Customer Lifestage

27. Mid-Cycle Customer Lifestage

28. Back In-Market Customer Lifestage

29. Complimentary Download • www.harte-hanks.com/InsuranceDMForum08 Point of View Paper