july 2009 v12 group positioning

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New Positioning May 7th, 2009 Driving Marketing ROI through Advanced Customer Insight

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V12 Group Company Overview

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Page 1: July 2009 V12 Group Positioning

New Positioning

May 7th, 2009

Driving Marketing ROI through Advanced Customer Insight

Page 2: July 2009 V12 Group Positioning

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

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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

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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

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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

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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

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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

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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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