custom circulation segments
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Custom Circulation SegmentsMarch, 2005
Agenda Background Segments Next Steps
Agenda Background Segments Next Steps
Recent Business Changes Do Not Call List – rely less on telemarketing Different sales strategy – shift from 7-day
subscriptions to 4-day and Sunday only subscriptions
Recognition that we can’t treat the entire market the same
Goals & Objectives of Custom Segmentation Profile households most and least likely to
subscribe Identify best customers—”look-a-likes” Pinpoint where these households are
geographically located Define a manageable number of segments Leverage existing data sources
– Subscriber data– Readership survey– PRIZM lifestyle segments
Develop a common direct response plan for circulation and marketing
Claritas/Integras Partnership Partnered with an outside company for
statistical modeling to develop the segments
Integras has completed segmentation projects for:
– Valassis– Gannett– Wichita Eagle– Alamo Rent - A - Car– ACE Hardware
Data Sources PBS – Internal circulation file Readership survey San Diego County do-not-call list
Subscription Behaviors Frequency Channel Payment Terms Premium Payment Stop Reasons Payment Method Length of Subscription
Readership Survey Telephone survey Randomly selected San Diego County adults Conducted 2 times a year N = 4,000 Collected descriptive data
Do-Not-Call List Pulled the San Diego County Do-Not-Call List Merged/purged with U-T Do-Not-Call List N = 50,000 Reverse append based on telephone number Descriptive data
Agenda Background Segments Next Steps
Segment #Active
Subscribers
Six SegmentsType of
Customer Index
One Best 7% 14% 200
Two Good 21% 28% 133
Three Better than average 22% 27% 123
Four Average 16% 14% 88
Five Not very good 25% 13% 52
Six Unlikely 9% 4% 44
San DiegoCounty
G1
G2
G3G4
G5
G6
Segment Sizes
Group Count %Comp Count %Comp Count %Comp Count %CompSegment 1 77,458 7.42 61,359 9.51 44,172 14.06 33,286 4.56Segment 2 215,461 20.64 142,383 22.06 87,307 27.8 128,154 17.56Segment 3 230,408 22.08 157,046 24.33 83,947 26.73 146,461 20.07Segment 4 162,905 15.61 92,012 14.25 45,288 14.42 117,617 16.12Segment 5 259,297 24.84 146,660 22.72 40,125 12.78 219,172 30.04Segment 6 98,217 9.41 46,014 7.13 13,230 4.21 84,987 11.65Total 1,043,746 100 645,474 100 314,069 100 729,677 100
SD PotentialSD ActivesSan Diego County SD Co on File
San Diego County
G1
G2
G3
G4
G5G6
Active Subscribers
Our best customers 7-day subscribers Pay full rate using
cash or credit They do not use EZ
Pay Long-time subscribers
—5+ years Do not churn
Frequent daily and Sunday readers
– Rank 1st for reading every day and every Sunday
Frequent SignOn visitors
– Rank 2nd for visiting 5 to 7 times in a week
They respond to direct mail and are most likely to be registered on the Do-Not-Call List
Segment OneCirculation and Readership Characteristics
Older—50+ year olds Affluent — $100,000+ Educated — B.A.+ Caucasion
Comfortable lifestyle with means:
– Travel– Golf– Theatre– Classical music– PBS
Segment OneDemographics & Lifestyle
Very good customers 7-day subscriptions Most pay full rate, but
some are on discount rates
Long-time subscribers – 2+ years
Tend not to churn, but when they do it’s happens at the moment a renewal notice is sent
Frequent daily and Sunday readers
– Rank 2nd for reading every day and every Sunday
Average SignOn users
– Rank 3rd for visiting 5- to 7- times a week
They respond to direct mail and are likely to be registered on the Do-Not-Call List
Segment TwoCirculation and Readership Characteristics
Mid-Older—35 to 84 year olds
Moderately wealthy — $50,000+
Educated — Some college +
Caucasian or Asian
Active lifestyle with means:
– Country Club– Health Club– Belong to an Arts
Assoc.– Classical/jazz music– PBS
Segment TwoDemographics & Lifestyle
Little better than average customer
Most likely to be a 2-day weekend subscriber
Likely to start a subscription with a reduced rate
Cite no time and moving as reasons to stop a subscription
Likely to have been a subscriber for 7 months- to 5- years
Average Sunday and daily readers
– Read Sunday 3- to 4- times in a month
– Read daily 1- to 3- times a week
SignOn’s best visitors– Rank 1st for visiting 1- to
7- times a week– Index above average for
visiting news, entertainment, real estate, careers and autos
They are on the Do Not Call List and do not respond to telemarketing
Segment ThreeCirculation and Readership Characteristics
35 to 49 year olds with children
Mid- to upper-income households — $50,000 to $149,999
Most likely to have some college or an associate degree
Caucasian
Segment ThreeDemographics & Lifestyle
Athletic lifestyle:– Soccer– Skiing– Golfing– Softball– Health club– PTA– Buy toys
Average customers Slightly more inclined
toward Sunday only or 4 day subscriptions
Slightly more likely to start because of a special promotion
Will stop a subscription after promotional period or when a renewal notice is received
Some churn
Average Sunday and daily readership
– Sunday and daily readership indexes at or near 100
Below average use of SignOn San Diego
– Rank 1st for not using SignOn in the past week
Respond to store front crews, but not door-to-door sales efforts
Segment FourCirculation and Readership Characteristics
Older—60+ year olds Low- to mid-income —
< $15,000 to $49,999 High school graduates Racially balanced
compared to San Diego County
Lifestyle reflects an older, rural crowd:
– Belong to a Veterans Club
– Go hunting– Rodeo Fans – Buy from shopping
channels
Segment FourDemographics & Lifestyle
Not very good customers
Twice as likely to take the Sunday-only edition and least likely to have a 7-day
More likely to buy single copy
Churn out after reduced rate expires
Stay on the books less than 6 months
Occasional daily and Sunday readers
– Rank 1st for reading 1 Sunday once a month and 1st for not reading the daily paper
Occasional SignOn visitors
– Rank 2nd for visiting 1 to 4 times a week
– Visit Careers and Real Estate
Telemarketing, door crews and store fronts work for starts
Segment FiveCirculation and Readership Characteristics
Young — less than 35 years old
Lower income — less than $49,999
Poorly educated — less than high school graduate
Higher concentrations of African American and Hispanic households
Urban lifestyle:– Rap/Alternative music– Play football,
basketball and volleyball
– Have a liberal outlook
Segment FiveDemographics & Lifestyle
Unlikely Union-Tribune subscribers
Least likely to subscribe
Most likely to churn after rate expires
Most likely to be stopped for nonpayment
On the file less than 6 months
Typically non-readers– Rank 1st for not
reading the Sunday and daily U-T
– Most likely to read or borrow a newspaper
Infrequent SignOn visitors
– Rank 6th for visiting SignOn
Rank first for telemarketing starts
Segment SixCirculation and Readership Characteristics
Young — less than 35 years old
Lower income — less than $49,999
Poorly educated — high school graduate or less
Higher concentrations of African American and Hispanic households
Segment SixDemographics & Lifestyle
A lifestyle characterized by:
– Fishing– Own dogs– Own satellite dish
Agenda Background Segments Next Steps
Next Steps in progress Direct mail to HH’s using segmentation Call centers can now identify customers by
segment Developing pricing based on segments
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