The Power of You vMail Campaign Case Study

1. The Power of You vMail Campaign Case Study

2. AGENDA • Background • Joint CEBP – PayItGreen initiative • The Campaign defined • Campaign Components • The Con Edison Perspective • Why involved? • Campaign RESULTS • Next Steps • Q&A

3. Background • To date, biller efforts have been focused primarily on promoting eBills, however eBill adoption lags significantly behind epayment adoption • The CEBP’s eBill Adoption Workgroup interested in developing and testing consistent messaging that could be adopted collectively by the billing industry to achieve a significant increase in eBill adoption. Earlier CEBP partnered with NACHA’s Marketing Management Group to develop profiles of “Mr./Ms. eBill User” and “Mr./Ms. eBill non-User” • NACHA’s PayItGreen wanted to 1)test green consumer messages to drive eBill adoption 2) create a vMail campaign to deliver the message and 3)deliver a turn-key marketing program • CEBP and PayItGreen partnered to create the Power of You vMail Campaign!

4. What is vMail? • vMail is a an interactive email with video – a medium for delivering an actual video clip seen in the recipient’s email • The video clip represents an edited version of the full video that resides on a subsequent landing page • For the purposes of this campaign, VHD Technology provided the vMail streaming technology to enable: • Easy viewing of the video clip upon opening the email • No downloads required • No buffering based on bandwidth detection

5. The Power of You vMail Campaign • Goals: • Create and deliver a vMail campaign to Con Edison customers aimed at switching recipients to eBills • Replicate the methodology with other billers • Variables to test: • The green message • Effectiveness of vMail as a marketing tool • Impact of the new PayItGreen Power of You video • The validity of the updated AccuData model: Mr. and Mrs. Bill Pay • The effect customer scoring can have on the success and conversion rates of a marketing campaign

6. Building the Campaign • Step One – Update the Accudata Consumer Model • Predictive model for identifying which consumers are more likely to adopt eBills and epayments • Step Two – Score Con Edison Customer Data (Con Ed first biller to launch) • Customers segmented based on likelihood to convert (see subsequent slides) • Step Three – Create Compelling Video (or re-purpose existing asset) • Power of You video edited to include Con Edison call to action • Step Four – Develop Simple Green Message for vMail copy • Customized by Con Edison to reflect their culture • Step Five – VHD Technology Programming • Video clip created and embedded into email along w/additional call to action links • Step Six – Execute Campaign • Con Edison used their email house to deliver the vMail, file provided by VHD

7. The Model: • Efficiently increase the number of enrollees. • Effectively reduce marketing expenses. • Apply statistical modeling techniques to identify significant characteristics of your marketing campaign enrollees. • Deliver a strategy allowing for streamlined and profitable enrollee acquisition marketing relating to your current campaign efforts. Objective Strategy

8. Findings: Probability increases if the consumer buys through the mail, uses credit cards, has higher income, or is a single male with no children. Decreases with older ages or length of residence.

9. The Enrollee Probability models accurately predicted almost 76% of enrollees when compared to actual enrollees on the test file. 59% of responders were found in 30% of prospect file Cumulative % of Enrollees Cumulative % of prospects What this means: Prospects with an above average probability to enroll have been identified.

10. Decile 1 provides a lift of 188% above a 4.8% average enrollment rate. Going down to Decile 3 will still provide a significant lift. Deciles providing above average lift

11. The Video • The Power of You video used for this vMail campaign, was developed by PayItGreen • VHD Technology created an edited clip for the campaign that is a 13 second loop take from a 2 minute video residing on a subsequent landing page

13. Summary Results as of Jan 25, 2010

14. Verizon VMail Campaign • The second biller to launch a successful campaign was Verizon • Verizon tested the same email message with video and without. The interactive email that included the Power of You video performed TWICE as well. • Overall response rate was 8% for the Verizon campaign

15. What if . . . we all went paperless and received and paid our bills electronically? • Reductions in air pollutants by 3.9 billion tons of carbon dioxide equivalents, akin to taking 355,015 cars off the road; • Reductions of 1.6 billion pounds the solid waste generated in a year, equal to 56,000 fully loaded garbage trucks. 2007 survey by Javelin Strategy and Research

16. Enrollment Summary – Proving the Strength of Model

18. Need More Information? • Interested in launching this same campaign for your organization? • Contact: Samantha Carrier • scarrier@nacha.org • Check Out: www.payitgreen.org/business