Custom Circulation Segments

1
Custom Circulation Segments

• March, 2005

2
Agenda

• Background
• Segments
• Next Steps

3
Agenda

• Background
• Segments
• Next Steps

4
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 cant treat the entire market
  the same

5
Goals Objectives of Custom Segmentation

• Profile households most and least likely to
  subscribe
• Identify best customerslook-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

6
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

7
Data Sources

• PBS Internal circulation file
• Readership survey
• San Diego County do-not-call list

8
Subscription Behaviors

• Frequency
• Channel
• Payment Terms
• Premium
• Payment
• Stop Reasons
• Payment Method
• Length of Subscription

9
Readership Survey

• Telephone survey
• Randomly selected San Diego County adults
• Conducted 2 times a year
• N 4,000
• Collected descriptive data

10
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

11
Agenda

• Background
• Segments
• Next Steps

12
Six Segments
Active Subscribers
Type of Customer
San Diego County
Segment
Index
One Best 7 14 200 Two Good 21 28 133 Three B
etter than average 22 27 123 Four Average 16 14
88 Five Not very good 25 13 52 Six Unlikely 9
4 44
13
Segment Sizes
San Diego County
Active Subscribers
14
Segment One
Circulation and Readership Characteristics

• 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

• Our best customers
• 7-day subscribers
• Pay full rate using cash or credit
• They do not use EZ Pay
• Long-time subscribers5 years
• Do not churn

15
Segment One
Demographics Lifestyle

• Comfortable lifestyle with means
• Travel
• Golf
• Theatre
• Classical music
• PBS

• Older50 year olds
• Affluent 100,000
• Educated B.A.
• Caucasion

16
Segment Two
Circulation and Readership Characteristics

• 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

• 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 its happens
  at the moment a renewal notice is sent

17
Segment Two
Demographics Lifestyle

• Active lifestyle with means
• Country Club
• Health Club
• Belong to an Arts Assoc.
• Classical/jazz music
• PBS

• Mid-Older35 to 84 year olds
• Moderately wealthy 50,000
• Educated Some college
• Caucasian or Asian

18
Segment Three
Circulation and Readership Characteristics

• Average Sunday and daily readers
• Read Sunday 3- to 4- times in a month
• Read daily 1- to 3- times a week
• SignOns 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

• 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

19
Segment Three
Demographics Lifestyle

• Athletic lifestyle
• Soccer
• Skiing
• Golfing
• Softball
• Health club
• PTA
• Buy toys

• 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

20
Segment Four
Circulation and Readership Characteristics

• 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

• 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

21
Segment Four
Demographics Lifestyle

• Lifestyle reflects an older, rural crowd
• Belong to a Veterans Club
• Go hunting
• Rodeo Fans
• Buy from shopping channels

• Older60 year olds
• Low- to mid-income lt 15,000 to 49,999
• High school graduates
• Racially balanced compared to San Diego County

22
Segment Five
Circulation and Readership Characteristics

• 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

• 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

23
Segment Five
Demographics Lifestyle

• Urban lifestyle
• Rap/Alternative music
• Play football, basketball and volleyball
• Have a liberal outlook

• 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

24
Segment Six
Circulation and Readership Characteristics

• 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

• 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

25
Segment Six
Demographics Lifestyle

• A lifestyle characterized by
• Fishing
• Own dogs
• Own satellite dish

• 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

26
Agenda

• Background
• Segments
• Next Steps

27
Next Steps in progress

• Direct mail to HHs using segmentation
• Call centers can now identify customers by
  segment
• Developing pricing based on segments