july 2009 v12 group positioning
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New Positioning
May 7th, 2009
Driving Marketing ROI through Advanced Customer Insight
Headquartered in Metro New York with operations in Los Angeles and Orlando
Board of Directors comprised of tenured direct marketing industry leaders Bob Wientzen, past President & CEO, DMA Bart Faber, Chairman & CEO, Metromail Charlie Stryker, Founder, InfoUSA
Growing organically and through acquisition
Clients include Acxiom, AutoNation, Bank of America, Canyon Ranch Spa, D&B, Equifax, FantasticSams, Guitar Center, ING, Joann’s Fabrics, Miami Heat, Sprint and others
Employees: 120
V12 Facts
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Our Focus
Help clients improve return on marketing investment by using data
to better manage the customer lifecycle
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Help clients get closer to their customers through enterprise customer management
Offer access to expertise which reduces implementation risks
Generate staged returns on investment through phased roll-out vs. “big bang”
Create competitive advantage by helping bring new concepts to market quickly
Our Philosophy
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Customer
Lifecycle
8. Evangelists
6. Loyalty
7. Extreme Loyalists
5. Preference 4. Retention
3. Repeat Purchase
1. Trial
2. Acquisition
Helping migrate Customers through the Lifecycle
How We Deliver
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Tracking information flow through the customer management process is a critical component of enterprise customer management
Marketing Planning
1Analytics
2
Customer Segmentation
3
Campaign Management
4
Touch Points
5Work-flow Automation
Customer
6
7Actions
8
Reservation, Hotel Stay, Casino Play
Customer Database
Tracking Data Flow
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Our Service Offerings
Strategic Services
Developing Customer Insight
Customer Profiling
Marketing Database
Modelling & Analytics
Data Processing
Customer-centric services to help you understand and communicate with your customers and prospects
Developing Target Audiences & Augmenting Customer Data
Consumer Data
Data Enhancement/Append
Business Data
Specialty Data
Data Services Campaign Services
Developing and Executing Campaigns
Email Marketing
Direct Mail
Turnkey Direct Marketing
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Modeling & Analytics: Our capabilities center on defining ideal customers and segments, predicting response and prioritizing marketing efforts
Marketing Database Services: Custom hosted marketing databases with online access and hands on support for campaign target audience selection
Data Processing: Basic hygiene to customer data processing Consumer Data: Our multi-channel consumer database has 209 mm records and 110 mm
households that combines postal, email, phone and mobile data and over 260 fields to improve targeting including: Demographic, Geographic, Lifestyle, Interests, Behavioral and Transactional
Data Enhancement: Appending any field of information from our Consumer Database to a customer database to improve their ability to target market and communicate using additional channels
Email Marketing Services: Prospecting and retention campaigns targeting over 100 million opted-in consumers in the U.S.
Turnkey Direct Marketing (DM360): Localized direct marketing tool combining customer profiling, targeted consumer data and customized direct mail/email design and deployment for customer acquisition and retention in a user friendly tool that adheres to corporate branding
Service Offering Descriptions
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Brands We Support
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Developing Customer Insight
Use empirical evidence contained in customer database to:
Identify traits of buyers who use specific service(s)
Target audience or segment(s) that are unique in composition of age, income, home ownership, marital status, ethnicity, wealth, purchase behavior, discretionary spending, etc.
Services that are most appropriately marketed together
We apply the findings as follows:
Target Audience: Use the findings of the Customer Profile to develop the target audience and segments with look-a-like prospects that live within trade area covered
Append: Add the traits that best describe your customers to your file
Create campaigns: Target customer base gaps identified in the profile
Develop Messaging: Use the intelligence to create segment specific messages and images that are relevant and more personal thereby increasing conversion rates
Interaction: Establish multiple touch points with customers and prospects
Using Customer Profiles to Focus Efforts
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The process is easy: First send us a list of your customers with Name, Address,
City, State and ZIP Code We’ll match your customer file to our Consumer database
of 209 million consumers. Typically we match 60-65% of your file to ours.
Using the matched dataset demographic, behavioral and interest information is append to the file.
Next we organize the information into a spreadsheet and analyze it to find common traits such as age, income, home ownership, marital status, ethnicity, etc.
Then we narrow our focus and organize the data into consumer segments that have a high percentage of the very same traits. Such as age 25-34, Married with Income over $50K.
Finally a Customer Profile Report is produced with percentages, charts and graphs clearly explaining the results.
Customer Profiling Process
Customer Profile reports on key traits such as income, age, home ownership, presence of children, marital status, household composition, lifestyle interests.
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Normal Lifetime Trend
< $35KPrice Driven
New Customer Acquisition
AgeUnder 35 35-49 50 and Up
Style Function Comfort
$35K - $75KValue Driven
> $75KService Driven
Inco
me
Customer Acquisition:Many consumers will at some point, naturally grow into a client’s prospecting poolEducate, Acquire & Loyalize consumers before they hit targetCreate Lifetime Value!!Create Lifetime Value!!
LTV
Life Stage Segmentation
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Modeling
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Customer Models drill down further than a Customer Profile and predict an outcome to rank future importance. V12 executes many types of models and here are the most common applications. Best Customer –identify the key traits of your top customers and find prospects that resemble them. We utilize demographic, lifestyle, life-stage, behavioral and purchasing drivers to create “look-a-like” prospects.
Lost Customers – regain customers whose transactions have dropped dramatically or totally lapsed in the last year. Ex: Best Customers w/ transaction reductions of 30%+ in the past year.
ZIP Models – they lack the predictive power of individual level models, but their low cost and ease of use make them the Grandfather of all direct marketing models. ZIP modeling is also desirable for flexibility with other media, particularly newspapers, co-op mailers, broadcast and outdoor ads.
Cross-sell / Up sell Models - Marketers can increase ROI by turning single buyers into multi-buyers over time. Modeling past buyers of different products and services allows you to identify the next best product to promote to each customer as well as which customers to "rest" from the promotion.
LTV - Lifetime Value Models
RFM - Recency, Frequency, Monetary Models
1) Analyze current Tropicana Customer via advanced consumer profiling: Determine the characteristics of recent and historical customers Establish a baseline profile for future comparisons of new targets Compare Tropicana customers with rest of US consumers Allows for implementation of targeting data immediately
2) Identify the consumer segments that are driving the Tropicana business and classify them Geographically – regional and national hot-spots Demographic and Socio-economically Related interests and behaviors (Casino Gambling, Travel, Entertainment, etc.) Unrelated interests and behaviors (Avid Reader, Known Voter, Charitable, etc.)
3) Build a model that looks at visitor profiles, consumer segments and regional demography to: Rank and score previous visitors to identify best candidates for future stays Ranks and score prospects that have the highest predictability to become customers
4) Optimize the Tropicana marketing mix using multi-channel touch points and design elements to understand which components are driving customers via National and Regional marketing efforts
5) Feed all of the above into the Marketing Database to establish a “Closed-Loop” intelligence process
Getting the Customer Profiling Process Started
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Developing the Target Audience
209 million consumer records 110 million US households 53 million ePostal records 83 million email records 128 million phone records
Over 260 specific data fields 1,000 census variables (ZIP & CRRT level) Regular updates for optimal delivery Multi-source file of response & compiled
data
Demographic – age, gender, education, ethnicity, income, etc. Lifestyle – presence of children, homeowners, donor causes, etc. Interests – reading choices, hobbies, music styles, sports interests, etc. Transactional – credit card types, credit active, mail order choices Real Estate – Home value, mortgage info, heating type, own a pool, etc.
Consumer Database
V12V12MasterfileMasterfile
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Database Design & Maintenance
V12’s multi-channel, multi-sourced national consumer database is a hybrid file built from compiled and proprietary response data sources.
The V12 Group database is built from many data points and sources Proprietary data sources including email, web and acquisitions Secondary sources including national compilers, econometric firms and specialty data
File meets all DMA privacy and security compliances Only carry data on those 18 years old (some 17 year olds who turn 18 in 2008) We do not maintain Social Security numbers, Drivers License numbers or Credit Card data or FICO
scores on the file. This provides a high level of protection from identity theft
File is updated monthly with address changes and a major file re-build performed quarterly Other than email sources, all of our secondary suppliers update quarterly The entire file goes through NCOA, Deceased Scrub, Address Standardization and CASS The latest CASS report has our address quality at 99.2% accuracy
Each V12 Individual record has it’s own ID, we call this the Sequence ID Households are not unique addresses, our method for classification is by LNAME & ADDRESS We will be adding a Household ID in the future
Technology we use to maintain the file Main Frames and PCs with Enterprise Server, Microsoft SQL Server and the open source MySQL Has been SAS-70 security certified
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How We Measure Up
Major Compiled Files Postal
V12 Group 208,904,037
Acxiom 199,385,710
Epsilon 172,000,000
Equifax 163,713,200
Experian 215,000,000
FMP Direct 195,000,000
InfoUSA 210,000,000
KBM 230,000,000
V12’s coverage compares favorable versus competitors.
Most clients compare our consumer database versus competitive options based on: Total volume of records Breadth and depth of our data selectors Cohesiveness of offerings
Strengths V12 offers great individual coverage and selectivity Age and Date of Birth Gender, Presence of Children, Number in Household Geo Selectivity (ZIP, County, DMA) ePostal allows same targeting available via postal file
Weakness (Missing elements) Response data like Auto type, Traveled to…., Student data Co-Op selects like specific magazines read, TV programs etc. Can access most things via 3rd party relationships
Major Compiled Files eMail
V12 Group 87,260,337
Acxiom 102,000,000
Equifax 75,000,000
Experian 106,000,000
Tower 150,000,000
Walter Karl 57,000,000
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Developing Incremental Customer Insight
Enabling Marketing Success
“Turning data into actionable marketing knowledge” through a combination of superior technical programming, direct marketing execution best practices and ongoing marketing consultation to connect disparate data sources with marketing communications
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Core Service Offerings
A Unified Marketing Database Approach
Collect & House Information with Ease of
Access
CustomizedDatabasePlatforms
Strategic Marketing Consultation to Maximize
ROI
Response Measurements to Improve Marketing,
Message & Deliverability
EmailExecution & Real-time
Activity Tracking
Strategic Planning
E-marketing
Database Design, Management & Online Access
Data Preparation & Enhancement
Research & Analysis to Explore New Opportunities
Analytics & Reporting
Qualification Capability to Refine Customer &
Prospect Bases
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Best Practices – Operational Excellence
Personalized databases that are unique to each clientCustom programs & interfacesExperience Direct Marketing Team Tools at the desktop
which allow marketers to complete common marketing activities
Multi-channel marketingexperience focused on providing customer insight that drives return on investment
Remain impartial, not aligned with any one data provider, we are not a broker of any file
Full service email executionHigh deliverabilityReal-time reporting
Strategic Planning
Database Design, Management & Online Access
Data Preparation & Enhancement
Complex modeling techniques and predictive analyticsFlexible reporting anddata access
Analytics & Reporting
Customizedcommodity servicesLibrary of over 80,000 programs & routines to do it faster and make it more foolproof
E-marketing
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Phased Approach
Our strategy for designing, implementing and maintaining a marketing database is to take the time to learn, understand and live our clients’ business and progressively add features.
DISCOVERY
Meet budget & schedule
STEP 1DATABASE
DEVELOPMENT & PRODUCTION EXECUTION
Understand the present
STEP 2ANALYSIS &
TESTING
Think strategically
STEP 3
STRATEGIC CRMMANAGEMENT
Create the future
STEP 4
MSC’s Phased Approach provides flexibility.
DISCOVERY
Meet budget & schedule
STEP 1DATABASE
DEVELOPMENT & PRODUCTION EXECUTION
Understand the present
STEP 2ANALYSIS &
TESTING
Think strategically
STEP 3
STRATEGIC CRMMANAGEMENT
Create the future
STEP 4
MSC’s Phased Approach provides flexibility.
Phased Approach provides flexibility
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To ensure a smooth transition to a centralized marketing database we communicate frequently involving all departments in the development process
Potential Rollout Framework
Steps1. Set the goals and objectives of the centralized marketing database
as well as what the change means for the individuals and their location
2. Confirm the budget andmarketing databasespecifications.
3. Develop the centralized marketing database including data hygiene and consolidation.
4. Develop the web portal.
5. Measure results and determine key metrics and attainable goals for rollout implementation.
6. Rollout implementation
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Summary
Impact We Typically Provide
Better understanding of customer behaviors and attitudes
Improved targeting, segmentation and profiling
Comprehensive access to data
Improved deliverability of marketing communication
Simplified vendor management
Accountability
Improved cost effectiveness and stronger campaign ROI
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