Database Marketing Or Lack Thereof at the Denver Newspaper Agency

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Database MarketingOr Lack Thereofat theDenver
Newspaper Agency
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Database Marketing
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Our Database

• 2.5 million households in Colorado
• Subscriber data
• Post/News/NY Times/Wall Street Journal/
  Barrons/Investors Business Daily/Financial
  Times/USA Today
• Demographics
• Income, age, marital status, children in
  household, lifestyle activities and much more
  from the Experian Corporation
• Segmentation/Clustering systems
• Claritas
• PERSONICX
• County real estate tax records
• Home value, square footage, and more
• Licensed professionals
• Licensed professionals by profession
• Registered Voters
• Classified Private Party users

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Available Government Data

• Denver Metro Real Estate Tax Record
• Assessed Value
• Last sale price
• Last sale data
• Year built
• Square feet
• Bedrooms
• Baths
• Taxes
• Exterior wall

• CO Licensed professionals
• Accountants
• Acupuncturists
• Architects
• Cosmotologists/Barbers
• Dentists
• Electricians
• Engineers
• Hearing aid dealers
• Midwives
• Nursing home admin.
• Doctors
• Nurses
• Optometrists
• Outfitters
• Pharmacists
• Physical Therapists
• Plumbers
• Podiatrists

• Denver Voter Registration Records
• Affiliation
• Voting history

• Colorado State Parks
• Registered watercraft
• Registered off-road vehicles

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Market Segmentation

• We use two different consumer segmentation
  systems that place each household into segments,
  or clusters, based on behavior and demographic
  characteristics.
• Claritas PRIZM
• The oldest and most well know segmentation system
• 66 groups based on urbanicity and affluence, and
  the theory that Birds of a feather flock
  together.
• Over 1,600 government and private sources were
  used to develop current year estimates and five
  year projections of hundreds of demographic
  variables.
• Identified at the ZIP4 level for the entire
  state
• Axciom PERSONICX
• One of the countrys most respected data sources
• 70 groups based on lifestage and income level,
  two key consumer indicators that are important to
  advertisers
• Driven by Acxioms InfoBase household data, known
  as the most accurate, current source of consumer
  data in the industry
• HOUSEHOLD level data available for the front
  range

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Database Marketing Services

• Market analysis
• Demographic and geographic profiling of existing
  customer lists
• PRIZM/PX cluster rankings
• List selection
• Identification, targeting, and segmenting
  according to specified criteria
• Data processing, hygiene, de-duping, address
  standardization
• Reduce costs associated with unwanted or
  unnecessary mailings

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Direct Mail Projects

• Real Estate
• Cultural/Non Profit partners
• Niche products
• HGTV Ideas
• Active Living
• Home Improvement
• Ski Areas/Tourism
• Auto

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Cultural and Non-Profit

• Bonfils Blood Center
• Profile of their existing donors
• By remote or fixed location
• By region
• PRIZM and PERSONICX rankings
• Identified additional prospective donors in their
  best clusters
• Colorado Symphony Orchestra
• Used Personicx codes to differentiate mailings
  for family series, Brahms Festival, and
  Masterworks series

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Bonfils Personicx Profile
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Real Estate/Mortgage Clients

• Kentwood Gallery
• Looking for people who can afford 1M homes
• Experian HH Income
• Tax records home value
• PRIZM and PERSONICX
• Beazer Homes
• Way too many radius selects
• Renters in single family homes

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Services

• Audibel hearing
• Age and geography
• Americas Best Basements
• Master Vac
• TruGreen
• Renewal Windows
• Home value, year built, and geography
• DAmore Furniture
• Mountain homes and interest in home decorating
• Frontier Airlines (Sampling program)
• Non-subs
• Interest in travel
• 100K HH Income

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Recreation

• Steamboat
• 2nd Home Owners
• Crested Butte
• Interest in skiing
• Interest in outdoor activities
• Vail
• Upscale Personicx codes for wine festival
• Upscale golfers for Cordillera
• Loveland
• Profile of existing customer database

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Niche Publications

• HGTV
• (DEMO.INTEREST_GARDENING EQ Y OR
  DEMO.INTEREST_GOURMET_COOK EQ Y OR
  DEMO.HOME_DECORAT_FURNISH EQ Y ) AND
  DEMO.BN_INCOME IN "100,000-124,999
  HHI","125,000-149,999 HHI","150,000-174,999
  HHI","175,000-199,999 HHI","200,000- 249,999
  HHI","250,000 HHI" AND NO( DNM.ADDR_KEY "" )
  AND ANY(AMST.COUNTY IN "ADAMS" ,"ARAPAHOE","BOULDE
  R","DENVER","DOUGLAS","JEFFERSON","BROOMFIELD")

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One Step Forward 2 Steps Back

• Best Selling Points
• Direct mail goes towards contract fulfillment
• Trusted relationship
• Variety in one database
• Challenges
• Margins
• Reps who are not used to direct mail
• Getting reps to use our data, not third party
  lists
• Too few resources
• Too many small sales, not enough big ones
• Lack of feedback
• Office politics
• Doubled direct mail revenue in second year, but
  we have a long way to go

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E-Marketing

• Just launched an e-marketing initiative
• Chose not to manage in MAAX, needed an email
  management system
• Appended email addresses to our customer file
  from two outside sources
• Added internal emails from contests, online
  registrations, Customer Care
• 300,000 email addresses currently in database
• Appended demographics, PRIZM, PX
• Currently selling multi-ad position newsletters
• Would like to eventually integrate email and
  direct mail databases

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E-Marketing

• 300,000 email addresses currently in database
• 200,000 in Colorado
• Currently only offering three demo selects
• Younger years 75,000
• Family life 80,000
• Mature years 45,000

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Circulation Projects

• Churn Comparisons by Segment
• Subscriber status
• Service type (Weekenders, Sun. only, 7 day)
• Payment type
• Rate code
• Source code (telemarketing, mail, etc.)
• Stop reason
• Pricing tests

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Highest Churning PRIZM Codes
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AGE

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Strategy

• Build segments within this audience based on
  renewal behavior, demographic and lifestyle
  information
• Identify most high-risk segments
• Test different pricing strategies against this
  segment
• Offer 1 Reduce price to 26
• Offer 2. 39 for 2 years instead of one
• Offer 3 Hold price of 39.99

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Weekender Early Results

• 26 offer 42 renewal rate
• 39/2 years 34 renewal rate
• Control group 34 renewal rate

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What Weve Learned

• Need to find balance between the size of your
  segments and the impact.
• Operational issues- need more resources for more
  specific targeting. Plan in advance.
• Takes forever to get results 132 day billing
  cycle. Need to manage expectations.
• Cultural issues- continued struggle with
  marketing vs. circulation, new ways vs. old.
  Need strong cross-departmental communication and
  cooperation.