Persona Segmentations-It Can Work

1. NEW WAVE OF SEGMENTATION Anita John & Karen Zhang February 22, 2011

2. Segmentation as we know it Based on what they’ve bought Based on what they’ve done Based on what they might do

4. Maximize ROI by channel by customer

5. Persona based marketing built on rich & predictive customer insights

6. HP customer no matter the origin1 2 3 4 Our Pillars Objective: Create meaningful relationship with ALL existing HP customers across all touch points that maximizes repeat purchase and loyalty = Customers for Life! Ignite Engage Re-engage

7. Struggle #1: Doing the right thing 1st Time Visitor Winback 1st Time Purchase Loyalty Repeat Purchase Active Inactive New Customer Test Prospect Highly Active Re-activation Program Best Customer Programs Acquisition Programs New Customer Programs Repeat / Upsell / X-Sell Promos Learn Refine Tell-a-friend/Referral Programs (Twitter, FB, Product Reviews, etc) Social Media Partnerships Email Online Advertising Direct Mail/ Catalog Affiliates Contextual Print SEO/SEM Mobile Test

9. Demographics are few and far between to allow for distinction

10. Value based (ie-best) works, but can fatigue and leave majority of file untouched

11. What audience do you tap into?

12. PCs – change in memory, style, hard drive

14. Understanding the need Objective: Resonate with customer core value at a deeper level Customer Intelligence Go- To-Market Execution Business Needs Email 1. Customer Core Value A Persona V.1: Demographics Direct Mail B Persona V.2: Product Feature 2. Behavioral Differences Web C Persona V.3: Life Value 3. Actionable Outbound Take away: it’s a journey, not a task

15. Personas Identify customer core values Attitudinal Measurements Customer Segments Life value / purpose: role of technology in a person’s life Technology Readiness: role of technology in a person’s life 8

17. Early adopter behavior vs. followers

18. Velocity of purchase -Time lag- (for repeat buyers)

19. Repeat behavior

20. Demographic

21. Attitudinal (interest variables)

22. Life stage (movers, family, retirement, etc)

23. Zip Level details

24. Income range

25. Occupation

26. Site behavior (visits, pages, duration,)

27. Velocity of purchase (time from intent to purchase)

29. Program and Channel influencesCustomer segments based on survey result

31. Highest high performance PC penetration

33. Technology is a great companion that helps them stay in touch with their social network.Marketing response Repeat Customer

34. actionable Extrapolate to Total Universe x x . . . x i F(x) = Supervised Classification algorithms y, segment X = n Total Universe

36. Back end analysis conducted with a hold out group

38. Next steps Constant Journey Customer segments Integrate into all channels (display, social, DM) Expand analytics & revamp forecast models (customer-driven) Create personalized web, call center and order processing experience Build out a robust automated & dynamic content management platform Multi-offer engine Iterate on segment definitions (refresh every other year)

39. Takeaways Gain senior management sponsorship Your database and analytics group are your right hand Link attitudinal and behavior at the deepest level Customer’s needs may change, but their core values stay the same Consider this an iterative process Test at a campaign and customer level overtime Think of customers as multi-dimensional Make sure you have the infrastructure to support personas in the long-term