DMAB UPU MEETING APRIL 24, 2007

©Experian 2006. All rights reserved. Confidential and proprietary.

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DMAB UPU MEETING APRIL 24, 2007

Various Types of Marketing Databases

April 24, 2007

Steve Lopez

Vice President Postal Products and Affairs

EXPERIAN AMERICAS


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What levels are databases broken down to in order to market from them?

•Three major type of databases used in marketing

CREDIT (Prescreen and Business Credit)

CONSUMER MARKETING (used to make offers for various things based upon age, education, lifestyle, household income, etc.)

BUSINESS (strictly used when marketing products and services from a Business to another Business)


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The differences between Credit Data and Consumer Data•The Credit Services business unit operates as a consumer reporting agency (CRA). Therefore, its database is subject to the requirements of the Fair Credit Reporting Act (FCRA). In other countries this may not be a concern, but this is how it works in the US.

•In contrast, consumer marketing databases are compiled from multiple public and proprietary sources, and is not governed under the FCRA. They do not contain individual-level credit attributes and the data has not been collected for credit purposes and is not intended to be indicative of any consumer’s credit worthiness, credit standing, credit capacity, or other characteristics listed in Section 603(d) of the FCRA, 15 USC Section 1681a.


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Where does the Information come from?

Data compilers have comprehensive information resources which give you the customer insight needed to deliver marketing with unrivaled accuracy and currency

Examples of unique information resources:

Consumer demographic information

Consumer behavior information

Lifestyle and attitudinal information

Transactional information

Life event triggers

Geo-statistical information


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Address Hygiene is the key to response rates.•Performing weekly processes to apply attributes to your database which have the most recent address known, the proper street number, ZIP Code, street directional, and other secondary data such as an apartment number will drive the best results for the mail campaign.

•Less than 45% of records with invalid apartment numbers perform in the US.

•Less than 30% of records mailed that have missing secondary information all together perform.

•ENCOURAGE use of standardization on address and tools to update and validate the address on the database.


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US NationalConsumer

DemographicDatabase

215 million consumers, 110 million households

2,500 data attributes per record

3,500 public and proprietary sources

25 audience groups

11 message themes

3 direct marketing channels

5 mass media advertising channels

4 time of day indicators

Multi Channel data

assets

Coverage on more than 40 million households, 50 million individuals

1,200+ data elements

Household Indicators and Modeled Propensities

Self-reported

information

Sample informational assets


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Aggregated consumer credit at the ZIP+4 level

310 data attributes

18 million businesses

4 million small home offices

Identification, demographic, credit information

National BusinessDatabase

Aggregated consumer vehicle ownership at the ZIP+4 level

322 data attributes

Auto Market Statistics

Summarized Credit

Summarized Credit



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330,000 average monthly

Weekly update

New Homeowner

3.2 million new births annually

Weekly update

New Parent New Parent

1.4 million monthly

Monthly update

New Mover New Mover


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Sample information assets

61 million subscribers

98 million subscriptions

158 titles

Subscription Cooperative

Database

US Catalog Cooperative

Database

110 million catalog buyers

1,344 million catalog orders

671 catalog titles

Business Business CreditCredit

Business Business CreditCredit


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Sample information assets

30,000 annual customer surveys

8,000 brands in 450 product categories

Key media measures: television viewing, newspaper readership, cable & satellite, internet, etc.

500+ psychographics measures

National Consumer

Study

14.1 million individuals

89.7 million catalog orders

67 participants 1.8 million multi-

buyers 8.2 million

business sites

B2B Cooperative

Database

B2B Cooperative

Database

• 70+ HH models

• CentrisTM Omnibus consumer survey

Communications, home electronics, entertainment and cable products and service propensities

Home Data Home Data


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Advantages of an original data compiled set

Original source compiler

Reduced latency

Most granular data

More consistency in summarization

Control of sources

Improved notice and choice at point of collection

Scale of data: largest consumer database only increases response rates

Depth and breadth of information

Accuracy and precision: build best record from best sources

Relational database can be updated 24 x 7


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A variety of sources create the best CONSUMER record

Jane T. Consumer142 S. Main St.

Anytown, USA 10000(401) 999 0000

College graduateInternet User

Travel Enthusiast Golfer

HomeownerFixed rate-FHA loan

Sale Type: New

Presence of children

Gardening MagazinesBooks

Contributor

Product surveys/registrations

County Deed Records

New Parent File

Mail order buyers

Telephone Directory & Public records

Pharmacist Licensed Occupations

EHI: $125,000Purchases OnlineOwns a luxury car

Platinum Card

Predictive Models

Median Equivalency-750Total # All Tradelines-10

Average Age of Vehicle- 2

Summarized Data


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How multiple databases can combine to create a solution

425MM+ Vehicles

U.S. and Canada

Includes title, registration, mileage readings, key vehicle events

• 205MM Credit-Active Customers

• Nearly 2.7 billion tradelines

• Over 6 billion inquiries

• Roughly 54.7 million public records.

• 15MM Businesses• Identification,

Demographic, Credit Information

• 215MM Consumers, 110MM Households

• 1000 Data Attributes Per Record

• 3200 Public & Proprietary Sources

Integrated Information Solutions

National Credit

Database

NationalBusinessDatabase

Consumer Demographic

& Lifestyle

National Vehicle

Database


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Sample: Automotive Solution Suites

Uses the industry’s most complete and current vehicle history information built directly into pre-owned vehicle sales and marketing process

It answers the three key questions of conquest marketing: Where do my best prospects live, who are they and how do I reach them? — quickly, easily and effectivelyGenerating additional sales, parts and service revenue from existing customers. Target the right customers at the right time, with the right message

Helping dealers and manufacturers make decisions based on who their customers really are … not just who they think they are

Accurate and timely identification of customer credit worthiness, while protecting from potential risk and fraud


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Effective marketing

Customer Database (Limited View)

DeeperUnderstandingof Customers

Age Income Lifestyle Children Education

Enhance Customer Data

Segmentation

Find Look-alike Prospects

Targeted Offers for Acquisition & Retention

Find new niches

Cross-sell/Up-sell Current Customers


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Segmentation approach hierarchy

Perf

orm

ance

Sophisticated Techniques

Custom

ization

Individual - Household Demographic Selections

Target

Pre-built models not client specific

Prime Performance

Modeling

Dev

elop

men

t Tim

e

Obj

ectiv

e R

esul

ts


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QUESTIONS?

THANK YOU.

DMAB UPU MEETING APRIL 24, 2007

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