roundtable 2015: leap pre-conference workshop
TRANSCRIPT
“…success will come from engaging customers in a more informed and relevant manner…the ability to deliver relevancy in a multi-channel environment not only supports the growth and
engagement of the audience, just as importantly it facilitates the profitable delivery of merchant advertising.”
“The Newspaper as Infomediary: A New Business Model for the Industry”INMA Ideas Magazine, October 2002
Tom Ratkovich
The ROUNDTABLE | Vail, CO “Best practices in data-driven marketing automation”
Navigating the complex world of “BIG data”
In the cacophony, something very important has been lost…
StrategyTo what business purpose are you putting to use the
data and technology deployed to manage it?
Newsmedia companies operate from a position of inherent competitive advantage in their ability to
connect buyers and sellers in the local marketplace
…Our view
A brave new world for consumers
In an era of infinite choices…readers are trying to receive
• What they want
• When they want it
• And be shown what may interest them with a high likelihood of success
A brave new world for advertisers
In an era of infinite options…businesses are trying to reach
• Who they want
• How they want it
• And convey what may interest consumers with a high chance of success
Re-visiting the “information intermediary”
Key Tenets:• Trust. Without trust, consumers will not share their
personal information. Any doubt concerning the integrity and credibility of the infomediary will entirely undermine its ability to serve the customer.
Re-visiting the “information intermediary”
Key Tenets:• Trust. Without trust, consumers will not share their
personal information. Any doubt concerning the integrity and credibility of the infomediary will entirely undermine its ability to serve the customer.
• Connectivity. Existing relationships with consumers and merchants make newspapers the logical entity to evolve into the dominant infomediary serving local markets.
Re-visiting the “information intermediary”
Key Tenets:• Trust. Without trust, consumers will not share their
personal information. Any doubt concerning the integrity and credibility of the infomediary will entirely undermine its ability to serve the customer.
• Connectivity. Existing relationships with consumers and merchants make newspapers the logical entity to evolve into the dominant infomediary serving local markets.
• Multi-channel. Integrating marketing communications across a variety of channels ensures relevancy and optimizes merchant ROI by minimizing redundancy.
What does an infomediary data model look like?
Presenters
Belinda Lush, EVP/Client Solutions & Strategy, LEAP Media Solutions
Greg Bright, Chief Data Officer & Principal Architect, LEAP Media Solutions
Sue Kerr, Director of Circulation Services & Marketing, Hartford Courant
Rich Forsgren, CTO and Director of Audience Strategy, Erie Times-News
BELINDA LUSHEVP / Client Solutions and Strategy, LEAP Media Solutions
Business applications for data
Drive new subscription acquisition in the most cost-effective manner
Transform raw data into customer intelligence to drive business decisions
Promote long-term loyalty and brand affinity through engagement
Generate new revenue through modeling, segmentation and targeting
Agenda
I. Using data, modeling, segmentation and analytics to acquire new
customers (Belinda Lush)
II. Using data, modeling, segmentation and customer lifetime value scoring
to drive business decisions (Greg Bright)
III. Using data, modeling, segmentation and content to engage customers
digitally and promote brand affinity (Sue Kerr)
IV. Using data, modeling, segmentation and sales staff to grow advertising
revenue (Rich Forsgren)
LEAP Targeted Growth Model 2.0August, 2015
Baseline Targeted Growth Model™ (TGM) The TGM uses many criteria to assign a ‘value score’ to each person in
the licensed market.
Scores are built from these attributes:
Using this ‘Master Value Score’ the licensed market is divided into even quintiles.
The top quintile is segmented and defined as the primary ‘prospect’ market.
Specific value ranges are assigned to the final TGM target market.
Interest in Culture Interest in High-tech Living Interest in Politics Likely Investors Personicx™ segment
Education Level Home Ownership Household Income Interest in Community Interest in Real Estate
Changes in TGM 2.0 Analysis of past prospecting activity has shown some of the scoring
components have left a good number of potential print subscription out of the prospect pool. In particular, it has skewed to a younger audience, which has had a strong negative
impact on how the traditional print reader can accumulate enough TGM point values to make the TGM cutoff threshold.
The TGM Model calculation looked at current subscribers and not at past subscription history. This skews the scoring to weight where the current subscribers fit within the scored
demographic values and loses the influence of formers in a group.
An arbitrary limitation of “top 20%” (quintile) limits exploration and targeting to valuable (likely) subscriber potential outside of the ‘top group’.
Introduction of subscription history into the TGM scoring and campaign selection.
Re-categorization of the former subscribers into additional buckets based on time since subscription expiration. The additional categories provide a way to weight the formers based on how recent
their relationship with the publication lapsed.
Adjustments in score weighting to favor more traditional (older) subscription prospects.
Divide the licensed market into 5 value-based clusters (Low – High Value).
Segment the entire market into 6 demographic segments.
Build a contact strategy based on client-specific volume objectives and investment constraints.
Changes in TGM 2.0 (continued)
TGM v1.0
What does it look like
What does it look likeTGM v1.0
TGM v2.0
Campaign design changes Campaign criteria will now be purely based on the Master Value Score. Campaign creative will use insights from the TGM Cluster groupings. All campaign records will be a associated with a demographic ‘segment’ Clients can further refine prospect activity by defining:
• Deliverable zips.• Target zips (to exclude or include).• Time since last contact.• Timing of prospect activity.
We recommend a formal contact strategy pacing:
GREG BRIGHTChief Data Officer & Principal Architect, LEAP Media Solutions
LEAP LTV ModelerAugust, 2015
LEAP CLV Modeler Designed to compute at the individual address level (both existing
subscribers AND potential subscribers).
Over twenty-three variables in calculation
Accounts for a variety of cost and revenue elements: Acquisition cost per order (CPO) Account setup fees (if applicable) Distribution costs by day of week and route levels Preprint revenues Production costs Servicing fees Retention by start channel and certain demographic attributes
Additional inputs for: ROP costs/revenues Digital costs/revenues Discount rates, cash flow rate
Lacking certain data, clients may apply LEAP benchmarking metrics
Sample output: distribution of CLV (3 Year)
Input variables: MAAX derived + client supplied
Calculation complexity Model allows for
adjusting preprint revenue by ZIP Code.
Also allows for variations in carrier credits/delivery fees by individual route
Business applications for LEAP CLV Modeler Assign “holistic” monetary value to existing and potential customers
Tailor acquisition and/or renewal rates to optimize profit
Award variable credit amounts for missed delivery
Adjust loyalty program offers
Segment for appropriate payment terms
SUE KERRDirector of Circulation Services & Marketing, Hartford Courant
Promoting brand affinity through activation & engagement
What problems are we trying to solve?
“I have several data sources, but NOT in a centralized database.”
“I don’t have any email addresses to market to.”
“I don’t know anything about most of my email customers.”
“How do I get more ‘email’ customers or prospects?”
“There are so many things I want to say, how do I fit it all in?” Subscriber retention Digital activation Newsletter sign up Subscriber communication Subscriber acquisition Advertiser promotions
“How much email is too much?”
“Once I get them, how do I keep them?”
1. Consolidate your data assets
Process stages
1. Consolidate your data assets2. Enhance your data assets
Process stages
1. Consolidate your data assets2. Enhance your data assets3. Increase your data assets
Process stages
1. Consolidate your data assets2. Enhance your data assets3. Increase your data assets4. Leverage your data assets
Process stages
1. Consolidate your data assets2. Enhance your data assets3. Increase your data assets4. Leverage your data assets5. Measure the results
Process stages
1. Consolidate your data assets
Process stages
Digital data consolidation
Digital Data SourceOriginal Source
RecordsEmail-able
Records
Active Subscribers 120,752 55,671
Former Subscribers 45,633 15,654
Digital Deals 40,797 32,284
Digital Contests 11,290 7,777
AdMail 100,001 80,452
Newsletters In Progress In Progress
Website Registration 107,475 34,348
Total Records 425,948 232,547
Total Unique Records 147,451
1. Consolidate your data assets2. Enhance your data assets
Process stages
Data enhancement: address appending
Transaction Data
All Products
Demographics
Address
Data enhancement: transaction data
Never SubscribedActive SubscribersFormer Subscribers
Data enhancement: demographic data
Data enhancement: demographic data
40 Cove RoadStonington, CT 06371
Telemarketing StartOctober 3, 2010
Active Mon-Sun SubscriberEnrolled in EZ Pay since 2011
Data enhancement: demographic data
60 years old – member58 years old - member
HH Income > $150,000Homeowners
$780.16 in ConsumerRevenues since 2009
Six daily deals Purchases since 2011
Two-week vacationevery July since 2009
Signed up for mobilebreaking news alerts
Registered for weeklyBusiness e-newsletter
Reads Grace and Sound &Country magazines online
Acxiom Lifestage:15M – Mature Wealth
Indexes high foronline purchasing
Twelve activations on rewards site since 2012
Indexes high forInterest in Community
Active Daily subscriber Registered on website
NEW PARADIGM: Dynamic Customer Profile
1. Consolidate your data assets2. Enhance your data assets3. Increase your data assets
Process stages
Increase your data assets: leverage content
Paid Subscri
ber
Newsletter Subscriber
Registered User
Website Visitor
• Website content (hard or soft paywall)• Newsletters• Advertising deals• Contents
1. Consolidate your data assets2. Enhance your data assets3. Increase your data assets4. Leverage your data assets
Process stages
Leverage data assets: applying best practices
Timely, Relevant & Valuable
How often is too often? Is there such a thing as too little email?
Vary emails by customers engagement level Acknowledge other relationships – digitally registered, receiving
newsletters
‘Ask’ as well as ‘give’ Content, offers, deals, contests
Leverage data assets: from ‘project’ to ‘process’
Subscriber Lifecycle Communication Triggered communication based on subscription start & end dates
– Welcome– Renew– Retain– Stop Save
Leverage data assets: from ‘project’ to ‘process’
Customer Engagement CommunicationMaintain regular communication to ensure ongoing brand engagement
Active Subscribers• Web content engagement • Subscriber Benefits• EZ Pay conversion (retention)• Digital subscription activation• Newsletter sign up
Non-Subscribers• Web content engagement• Print & digital Subscription acquisition• Newsletter sign up
CUSTOMER LIFECYCLE MARKETINGComprehensive email communication plan to drive renewal
Welcome emails
• 7 Alternative versions
• Average 40% open rates
Renewal emails
• Average 25% open rates
• Average 2% click rates
Retention emails
• Average 30% open rates
• Average 4% click rates
Stop save emails
• Average 25% open rates
• Average 5% click rates
ENGAGEMENT MARKETINGComprehensive email communication plan to drive brand affinity
Top stories
• Average 13% open rates
• Average 1.3% click rates
Print subscription acquisition
• Average 10% open rates
• Average 0.5% click rates
Digital subscription acquisition
• Average 15% open rates
• Average 0.75% click rates
Subscriber retention
• Average 20% open rates
• Average 1% click rates
Newsletter signup
• Average 11% open rates
• Average 1% click rates
Custom promotions
• Average 11% open rates
• Average 1% click rates
1. Consolidate your data assets2. Enhance your data assets3. Increase your data assets4. Leverage your data assets5. Measure the results
Process stages
Measure the Results:
Digital Activations & Upgrades
166,170
11,696 1,896
Registrations courant.com
7 day activations
Partial Upgrades
Digital Subs
194% increase
49% increase
Measure the Results:
Print Subscribers Activate Digital
7 Day Partial Subs
34%
23%18%
3%
SubscribersRegistered on MG2Activated Digital
Measure the Results:
Facts:
Implemented registration on courant.com – September 2014 All data assets now in MAAX database Launched paid site – December 16, 2014
Registrations have increased 49% Digital activations have increased 192% Digital subscriptions continue to grow
• June/July digital acquisition campaign – 95 orders
Customer Lifecycle Marketing (CLM) communications in place Trigger campaigns Customer engagement communications Custom promotions
RICH FORSGRENCTO & Director of Audience Strategy, Erie Times-News
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Audience and Consumer Marketing
The symbiotic relationship to the audience has changed for each business unit and centralizing on an Audience and Consumer Marketing objective allows for better support of each business units universal audience needs
Audience(Circulation) - Utilizing a consumer marketing approach for retention, re-acquisition and new acquisition campaigns will utilize audience segmentation(demographic, psychographic), monetary segmentation(live time consumer value) and multi-variant price testing to maximize success.
Digital – Online audience segmentation will allow for targeted advertising, content, and personalization. Resulting in higher CPM rates and higher click through rates generating more leads for our advertisers. Targeted and personalized content will increase engagement creating a higher perceived value for the consumer.
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Audience and Consumer Marketing
Advertising – Through segmentation of the advertisers customers we have been able to increase revenue by matching our products audience, to the advertisers customers. This will be built upon as we segment the digital audience matching the online targeted products to their customers. This will support print and online combo packaging based on data resulting in an greater opportunity to sell the advertiser across all channels.
Editorial - Utilizing the new API app, consumer research and community survey we can discover what content we produce resonates with the community. We will also find what is not resonating and be able to shift resources to create better integrated engagement on the areas of content the consumer is seeking. This higher engagement allows for better monetization of the consumer.
Audience and Consumer MarketingSits as a hub in the middle of the enterprise engaging with each business unit
Audience andConsumer Marketing
Editorial
Audience
CyberInk/Digital
Advertising
Audience and Consumer Marketingwill fulfill specific needs for each business unit
Audience andConsumer Marketing
EditorialReadership
AudiencePrint/DigitalSubscriber
Online/MobileAudience based
advertising
AdvertisingAdvertisers
Indentify audience likes/dislikes via
research, surveys, API content tool, etc.
Monetize, Retention, Re-Acquisition,
New Acquisition based on audience segmentation
Targeted content/ advertising based on
audience segmentation
Use advertisers customers audience
segmentation to match our products
Audience and Consumer Marketingwill fulfill specific needs for each business unit
Audience andConsumer Marketing
AdvertisingAdvertisers
Matt Migdal, Research Database CoordinatorRAM panel testing of Ads, Digital analytics,Cxense, Ominture, Audience segmentationVia LEAP
Amanda Farrell, Mgr. Audience/Consumer MarketingAudience segmentation via LEAP, RAM panel testing of Ads
Bill Dietz, Advertiser Database Marketing ManagerPolk data, Civic Science polling, Audience segmentation via LEAP, etc. Advertiser presentations/pitches
Use advertisers customers audience
segmentation to match our products
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We invested so you don’t have to! Postal Certified CDS HH Data Acxiom Demographics 2015 PersonicX Segment Clusters Subscriber/Non Subscriber Data 2013/2014 Moore Research Market Study R.L. Polk Automotive Data AdMall Sales Intelligence Erie County Voter Registration Records Civic Science Polling RAM (Research and Analysis of Media) Nielsen Business Data Buzzboard Vendasta
Source: AcXiom PersonicX, 2014
The Pitch….
Q & ABelinda Lush, EVP/Client Solutions & Strategy, LEAP Media Solutions
DANIEL WILLIAMS, CEO, LEAP Media Solutions, [email protected] BELINDA LUSH, EVP/Client Solutions & Strategy, LEAP Media Solutions, [email protected]
GREG BRIGHT, Chief Data Officer, LEAP Media Solutions, [email protected] SUE KERR, Director of Circulation & Marketing, Hartford Courant, [email protected]
RICH FORSGREN, CTO & Director of Audience Strategy, Erie Times-News, [email protected]