Database Marketing

Or Lack Thereof

at the

Denver Newspaper Agency

Database Marketing

Advertising Online

Circulation

Acquisition, Retention, Sampling

Our Database • 2.5 million households in Colorado

– Subscriber data

• Post/News/NY Times/Wall Street Journal/ Barron’s/Investors Business Daily/Financial Times/USA Today

– Demographics

• Income, age, marital status, children in household, lifestyle activities and much more from the Experian Corporation

– Segmentation/Clustering systems

• Claritas

• PERSONICX

– County real estate tax records

– Home value, square footage, and more

– Licensed professionals

• Licensed professionals by profession

– Registered Voters

– Classified Private Party users

Available Government Data

• CO Licensed professionals – Accountants

– Acupuncturists

– Architects

– Cosmotologists/Barbers

– Dentists

– Electricians

– Engineers

– Hearing aid dealers

– Midwives

– Nursing home admin.

– Doctors

– Nurses

– Optometrists

– Outfitters

– Pharmacists

– Physical Therapists

– Plumbers

– Podiatrists

– Mental health professionals

– Veterinarians

• Denver Metro Real Estate Tax Record

– Assessed Value

– Last sale price

– Last sale data

– Year built

– Square feet

– # Bedrooms

– # Baths

– Taxes

– Exterior wall

• Denver Voter Registration Records

– Affiliation

– Voting history

• Colorado State Parks

– Registered watercraft

– Registered off-road vehicles

Market Segmentation • We use two different consumer segmentation systems that place each household

into segments, or clusters, based on behavior and demographic characteristics.

• Claritas PRIZM

– The oldest and most well know segmentation system

– 66 groups based on urbanicity and affluence, and the theory that “Birds of a feather flock together.”

– Over 1,600 government and private sources were used to develop current year estimates and five year projections of hundreds of demographic variables.

– Identified at the ZIP+4 level for the entire state

• Axciom PERSONICX

– One of the country’s most respected data sources

– 70 groups based on lifestage and income level, two key consumer indicators that are important to advertisers

– Driven by Acxiom’s InfoBase household data, known as the most accurate, current source of consumer data in the industry

– HOUSEHOLD level data available for the front range

Database Marketing Services

• Market analysis:

– Demographic and geographic profiling of existing customer

lists

– PRIZM/PX cluster rankings

• List selection

– Identification, targeting, and segmenting according to

specified criteria

• Data processing, hygiene, de-duping, address

standardization

– Reduce costs associated with unwanted or unnecessary

mailings

Revised 1/1/05

Number of Records

Up to

10,000

10,000-

20,000

20,000-

50,000

50,000-

75,000

Over

75,000

Lists Price per thousand records on purchased list

Base Price (includes one demographic or geographic

select) 50$ 40$ 35$ 30$ Quoted

Additional Demographic Selects (each) 5$ 5$ 5$ 5$ per

Geographic selects (ZIP codes, single radius, etc.) 5$ 5$ 5$ 5$ job

Additional radii selects, EACH 1$ 1$ 1$ 1$ (ask Ann)

Lifestyle Selector (self-reported, approx. 10% match,

choose up to 3) 20$ 20$ 20$ 20$

PRIZM Codes 15$ 15$ 15$ 15$

PERSONICX Codes 20$ 20$ 20$ 20$

Colorado Business Lists Usually $130/M, verify with Ann

Data Processing and Database ManagementPrice per thousand records on your customer list

Under

25000

25,000-

50,000

Over

50,000

Customer Profile: Includes demographic and geographic

profile of your customers, PRIZM code AND PERSONICX

code analysis, and all data processing. $1,000 flat fee $2,000 flat fee $3,000 flat fee

Data Processing Only (free with customer profile):

Data append, merge/purge, data hygiene and address

standardization. Quoted per job

Minimum Order: $250 All lists for one time use only.

Denver Newspaper Agency Database Pricing

Direct Mail Projects

• Real Estate

• Cultural/Non Profit partners

• Niche products

– HGTV Ideas

– Active Living

• Home Improvement

• Ski Areas/Tourism

• Auto

Cultural and Non-Profit

• Bonfils Blood Center

– Profile of their existing donors

• By remote or fixed location

• By region

– PRIZM and PERSONICX rankings

– Identified additional prospective donors in their best

clusters

• Colorado Symphony Orchestra

– Used Personicx codes to differentiate mailings for

family series, Brahms Festival, and Masterworks

series

Bonfils PERSONICX Comparison

Donors are very upscale, 7 of the top 9 clusters are high ranking for both fixed and mobile donors.

Fixed and mobile donors are fairly similar. 13 of the same 13 clusters index high for both.

Fixed location donors are somewhat older and more upscale.

Mobile donors are more likely to be families with children.

Market % Market

Total

Bonfils % Bonfils Index

832,825 82,130

4 Boomer Barons Skyboxes & Suburbans 29,877 4% 5,435 7% 184

17 Flush Families Apple Pie Families 32,062 4% 5,613 7% 178

7 Boomer Barons Leveraged Lifestyles 21,285 3% 3,604 4% 172

1 Boomer Barons Summit Estates 17,545 2% 2,925 4% 169

11 Jumbo Families Kids & Clout 19,670 2% 3,180 4% 164

19 Jumbo Families Country Comfort 8,350 1% 1,143 1% 139

27 Jumbo Families Soccer & S.U.V.'s 24,771 3% 3,388 4% 139

3 Mature Wealth Corporate Clout 17,686 2% 2,286 3% 131

48 True Blues Farmland Families 2,298 0% 297 0% 131

5 Golden Years Sitting Pretty 16,792 2% 2,147 3% 130

8 Golden Years Full Steaming 6,488 1% 826 1% 129

12 Jumbo Families Tots & Toys 16,682 2% 2,118 3% 129

2 Mature Wealth Established Elite 24,064 3% 3,011 4% 127

22 Our Turn Fun & Games 24,536 3% 3,070 4% 127

23 Aging Upscale Acred Couples 19,894 2% 2,436 3% 124

38 True Blues Blue Collar Bunch 11,067 1% 1,340 2% 123

6 Cash & Careers Shooting Stars 6,939 1% 828 1% 121

18 Taking Hold Married Sophisticates 6,725 1% 790 1% 119

20 Cash & Careers Dynamic Duos 9,272 1% 1,088 1% 119

30 Taking Hold Spouses & Houses 5,322 1% 618 1% 118

13 Flush Families Solid Single Parents 15,368 2% 1,784 2% 118

15 Aging Upscale Country Ways 5,961 1% 655 1% 111

10 Cash & Careers Hard Chargers 11,939 1% 1,244 2% 106

31 Our Turn Mid Americana 9,185 1% 903 1% 100

Bonfils Personicx Profile

Real Estate/Mortgage Clients

• Kentwood Gallery

– Looking for people who can afford $1M homes

• Experian HH Income

• Tax records home value

• PRIZM and PERSONICX

• Beazer Homes

– Way too many radius selects

– Renters in single family homes

Services

• Audibel hearing – Age and geography

• America’s Best Basements

• Master Vac

• TruGreen

• Renewal Windows – Home value, year built, and geography

• D’Amore Furniture – Mountain homes and interest in home decorating

• Frontier Airlines (Sampling program) – Non-subs

– Interest in travel

– $100K+ HH Income

Recreation

• Steamboat

– 2nd Home Owners

• Crested Butte

– Interest in skiing

– Interest in outdoor activities

• Vail

– Upscale Personicx codes for wine festival

– Upscale golfers for Cordillera

• Loveland

– Profile of existing customer database

Niche Publications

• HGTV

– (DEMO.INTEREST_GARDENING EQ Y OR

DEMO.INTEREST_GOURMET_COOK EQ Y OR

DEMO.HOME_DECORAT_FURNISH EQ Y ) AND

DEMO.BN_INCOME IN "$100,000-$124,999

HHI","$125,000-$149,999 HHI","$150,000-$174,999

HHI","$175,000-$199,999 HHI","$200,000- $249,999

HHI","$250,000+ HHI" AND NO( DNM.ADDR_KEY <> "" )

AND ANY(AMST.COUNTY IN "ADAMS"

,"ARAPAHOE","BOULDER","DENVER","DOUGLAS","JEFF

ERSON","BROOMFIELD")

One Step Forward… 2 Steps Back

• Best Selling Points – Direct mail goes towards contract fulfillment

– Trusted relationship

– Variety in one database

• Challenges – Margins

– Reps who are not used to direct mail

– Getting reps to use our data, not third party lists

– Too few resources

– Too many small sales, not enough big ones

– Lack of feedback

– Office politics

• Doubled direct mail revenue in second year, but we have a long way to go

E-Marketing

• Just launched an e-marketing initiative

• Chose not to manage in MAAX, needed an email management system

• Appended email addresses to our customer file from two outside sources

• Added internal emails from contests, online registrations, Customer Care

• 300,000 email addresses currently in database

• Appended demographics, PRIZM, PX

• Currently selling multi-ad position “newsletters”

• Would like to eventually integrate email and direct mail databases

E-Marketing

• 300,000 email addresses currently in database

• 200,000 in Colorado

• Currently only offering three demo selects

– Younger years 75,000

– Family life 80,000

– Mature years 45,000

Circulation Projects

• Churn Comparisons by Segment

– Subscriber status

– Service type (Weekenders, Sun. only, 7 day)

– Payment type

– Rate code

– Source code (telemarketing, mail, etc.)

– Stop reason

• Pricing tests

Current

Weekenders

(Post and News)

Annualized

Stops and

Suspends Churn

91,580 88,050 96%

Tenure

1 to 3 Months 15,150 4,590 30%

4 to 7 Months 21,842 36,228 166%

8 to 13 Months 18,905 18,912 100%

14 to 25 Months 20,749 19,872 96%

26 to 37 Months 10,994 7,332 67%

37 + Months 3,847 1,272 33%

Billing Cycle

3 Months 11,228 34,560 308%

6 Months 5,217 2,124 41%

12 Months 75,206 51,426 68%

Price

$66 to $104 Annual 14 90 643%

$36 to $65 Annual 34,828 37,938 109%

Under $36 Annual 71,945 67,776 94%

Method of Pay

Easy Pay 10,971 1422 13%

Installment 6,918 12132 175%

Mail 73,579 74334 101%

Comp 112 156 139%

Highest Churning PRIZM Codes

Prizm Code

Current

Weekenders Less

than 1 year (Post

and News)

Annualized

Stops and

Suspends Churn

HIGH RISK 28,637 45,336 158%

53 Mobility Blues 773 3,204 414%

47 City Startups 620 2,358 380%

66 Low-Rise Living 408 1,152 282%

56 Crossroads Villagers 283 714 252%

65 Big City Blues 426 924 217%

35 Boomtown Singles 1,176 2,520 214%

44 New Beginnings 1,103 2,286 207%

64 Bedrock America 299 582 195%

48 Young & Rustic 562 1,086 193%

42 Red, White & Blues 243 468 193%

Younger Years Family Life Mature Years

Midlife Success Accumulated Wealth Affluent Empty Nesters03 Movers & Shakers 02 Blue Blood Estates 01 Upper Crust

08 Executive Suites 05 Country Squires 07 Money & Brains

11 God's Country 06 Winner's Circle 09 Big Fish, Small Pond

12 Brite Lites, Li'l City 10 Second City Elite

19 Home Sweet Home Young Achievers Conservative Classics25 Country Casuals 13 Upward Bound 14 New Empty Nests

30 Suburban Sprawl 17 Beltway Boomers 15 Pools & Patios

37 Mayberry-ville 18 Kids & Cul-de-Sacs 21 Gray Power

20 Fast-Track Families 26 The Cosmopolitans

Young Achievers 29 American Dreams 27 Middleburg Managers

04 Young Digerati 28 Traditional Times

16 Bohemian Mix Mainstream Families Cautious Couples22 Young Influentials 32 New Homesteaders 38 Simple Pleasures

23 Greenbelt Sports 33 Big Sky Families 39 Domestic Duos

24 Up-and-Comers 34 White Picket Fences 40 Close-In Couples

31 Urban Achievers 36 Blue-Chip Blues 41 Sunset City Blues

35 Boomtown Singles 50 Kid Country, USA 43 Heartlanders

51 Shotguns & Pickups 46 Old Glories

Striving Singles 52 Suburban Pioneers 49 American Classics

42 Red, White & Blues 54 Multi-Culti Mosaic Sustaining Seniors44 New Beginnings 55 Golden Ponds

45 Blue Highways Sustaining Families 57 Old Milltowns

47 City Startups 63 Family Thrifts 58 Back Country Folks

48 Young & Rustic 64 Bedrock America 59 Urban Elders

53 Mobility Blues 65 Big City Blues 60 Park Bench Seniors

56 Crossroads Villagers 66 Low-Rise Living 61 City Roots

62 Hometown Retired

AGE

• Build segments within this audience based on renewal behavior, demographic and lifestyle information

• Identify most high-risk segments

• Test different pricing strategies against this segment – Offer 1: Reduce price to $26

– Offer 2. $39 for 2 years instead of one

– Offer 3: Hold price of $39.99

Strategy

Weekender: Early Results

• $26 offer: 42% renewal rate

• $39/2 years: 34% renewal rate

• Control group: 34% renewal rate

What We’ve Learned

• Need to find balance between the size of your

segments and the impact.

• Operational issues- need more resources for more specific targeting. Plan in advance.

• Takes forever to get results: 132 day billing cycle. Need to manage expectations.

• Cultural issues- continued struggle with marketing vs. circulation, new ways vs. old. Need strong cross-departmental communication and cooperation.