dovetail client workshop: the power of data

©2014 Epsilon. Private & Confidential

The Power of Data

Using The Right Data

Wednesday, October 15, 2015

British Library, London

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Introduction to Different Types of DataContents

What is Transactional Data?

How Do You Use it?

Case Study – Publishers Using Data Today

Questions and Answers

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Introduction

to Data

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Three key types of

data

Demographic/

Firmographic/

Compiled

Self-reported

Information

Transactional

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While each of

these three types

of data are useful

on their own, they

are more powerful

combined.

DEMOGRAPHIC

SELF-REPORTED

DEMOGRAPHIC

SELF-REPORTED

DEMOGRAPHIC/

FIRMAGRAPHIC/

COMPILED

TRANSACTIONAL

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Why Abacus?

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Common

Marketing Themes

Overheard

What I Heard During dovetail’s last Supplier Showcase…

1. Wrong Offer

2. Quality of Data Isn’t Good

3. Invest in Your Data

4. Using the Right Data is Paramount to Success

5. Using Historical Data is Vital to Success

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The Abacus Alliance in numbers

telephonedata

emaildata

SMSdata

postaldata

4800transactional, demographic

& lifestyle variables

£20bnspend

580mtotal transactions

relocation30% increase in mover data

captured

26mindividuals

520multi-channel retailers,

publishers & charities

18mhouseholds

93new members joined

since 2014

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ABACUS –

The concept

insight into

market

modelled

subscriber files

responsive

prospects

Member B

Member C

Member A

Abacus

Alliance

Database

Multi-channel retailers, consumer publishers and charities

share their transaction data to form the Alliance.

Abacus models actual purchase history to predict future

purchases.

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How well do you know your subscriber?

What you know about

your subscriber

What Abacus knows

about your subscriber

Three time

subscriber

Subscriber for

past 18

months; £40

spent in total.

Female Opted-in email address

Spent £105 in Gifts &

Gadgets 4 months ago

Spent £83 in Mid-Market

Clothing 2 months ago

Aged 35

Spent £110 in

Gardening 6 months ago

Postal address

Has children at

home

Household

income of £60k

Uses internet as an

order channelSpent £248 in Music &

Entertainment in lifetime

Female

Bought 6 times from

High End Clothing in

the last 24 months

Postal address

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Transactional Modelling: How does it work?

We analyse consumers transactions across 520 brands within the Abacus Alliance

database to find new prospects who ‘look like’ your current subscribers.

Your best subscriberShared attributes

Multi buyer

Uses internet as purchase channel

Household income of £60k

Spent £110 in Gardening 6 months ago

Spent £100 on consumer subscriptions

in the past 12 months.

Spent £83 in Mid-Market Clothing 2

months ago

Prospects most likely to subscribe

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Recruit

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Why Should I use Transactional Data?

30-40% Increased

Response Rate

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Subscriber –

Transactional

Variables

o Household has interest in newspapers and magazines.

o Amount spent with a publishing title in last 12 months.

o Number of publishing transactions in last 12 months.

o Amount spent with a Health offer.

o Multiple purchaser in Food & Wine category.

o Number of purchases in Mature Clothing category.

o Six or more purchases in Continuity category.

o Two or more Children’s clothing purchases in last 12

months.

o Multiple purchaser in Gardening category.

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Meet Jane –

Your Best Current

Subscriber

Jane:









months.


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Meet Kim –

Your Best Target

Audience

Kim:









months.


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Publishing Client Recruitment – Case Study for Publishing

Problem: Publishing client was looking for additional data sources as

they were struggling to find a new and sustainable pool to prospect from.

Solution: The Abacus database looks at consumer households

completely differently and considers the historical purchasing data to be

much more predictive. Abacus built acquisition models based on the

client’s best subscribers and found a reactive pool of new names.

Outcome: Abacus was able to find four times as many prospects to mail

without any degradation in results. Thereby allowing the client to grow

their file of subscribers dramatically.

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Testimonial: History Today

“Being a niche magazine with a small target market it’s always difficult to find

good new prospects. Working closely with Abacus both here in the UK and in

the US has helped us to find a rich vein of potential subscribers and get

great response levels. Professional, helpful and friendly, Abacus is the ideal

partner for our promotional mailings.”

(Andy Patterson, Publisher)

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Retain

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Main Reasons

Subscribers Lapse


1. No Longer Interested in Content

2. Heavy Promotion After Subscribing

3. Too Expensive

4. Promo Product Given To Re-Up Wasn’t Relevant

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Main Reasons

Subscribers Lapse


1. No Longer Interested in Content

How does Abacus help solve this problem?

31 Unique Product Categories

Modeling done by unique segment

Propensity scores and category variables appended to each record

This data allows for personalization

Which leads to relevancy

Overall goal of reduced attrition achieved

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Main Reasons

Subscribers Lapse


2. Heavy Promotion After Subscription


Custom modeling to identify those most-likely to lapse

Contact strategy can be created based on this research

Those not likely to lapse can be avoided in marketing plan

Saves marketing budget – allows for movement of budget

Channel-specific plans can be put together


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Main Reasons

Subscribers Lapse


3. Your subscription is too expensive


Custom modeling to identify those most cost-conscious

Don’t offer a deal to those willing/likely to pay full rate

Offer payment plans based on modeling, analysis and findings

Free gift offer to those likely to be gift-givers

Achieve highest retention rates possible at the

highest-possible subscription price


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Main Reasons

Subscribers Lapse


4. Free Gift/Promo Not Relevant to Audience


What categories are current subscribers spending the most

Segment subscriber file into three or four category groups

Customize the offer for each of these category buyer groups

Subscribers feel like you know and understand them as people


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How To Find More

Gift Givers

What About Gift-Givers???

Giving a Subscription as a Gift – How Can We Help?

We start with your current gift-givers to find those most likely to give a gift.

Most people give gifts, but those who give subscriptions are special

But, what makes them special?

Abacus can identify gift givers across multiple product categories

We can also identify those who typically give subscriptions as a gift

Then we rank and score those gift givers against your current gift

givers to find the best universe to market this offer to.

Set up a test for the Holiday season today.

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Meet Michael –

Your Reactivated

Subscriber

Michael:




o Heavy seasonal gift-gifter during holiday season.

o Three or more purchases in food category last 12 months.

o Multiple purchaser in Women’s Clothing category.

o Monthly purchaser in Gifts & Gadgets category.

o Four or more purchases last 12 months in Home category.

o Heavy seasonal purchaser in Gardening category.

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Meet Marco –

Your Best Target

Audience to

Reactivate

Marco:




o Heavy seasonal gift-gifter during holiday season.

o Three or more purchases in food category last 12 months.

o Multiple purchaser in Women’s Clothing category.

o Monthly purchaser in Gifts & Gadgets category.

o Four or more purchases last 12 months in Home category.

o Heavy seasonal purchaser in Gardening category.

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Retain – Cross Sell Modeling – Case Study for Publishing

Problem: A publisher had multiple products to offer their buyers but didn’t

know enough about their customers to offer the right product.

Solution: The Abacus database contains hundreds of incremental,

transactional pieces of data on that customer allowing for a better

decision on what next product to offer.

Outcome: The publishing client was able to increase their overall multi-

product sales penetration by more than 20%.

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DATA TAGGING -

Case Study

o Readers’ Digest was looking to minimize attrition.

o Used Abacus lifestyle and behavior data to identify

the most highly correlated data attributes

o From this comparison we leaned that a high

number of readers enjoyed bird feeding as a hobby

Outcome: Reader’s Digest was able to customise

their content around bird-feeding and increase

retention rates by double-digits over the previous year.

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• Abacus only requires name, address, date & pound amount

• No sensitive data accepted

• Privacy policy posted on your web site is a must

• Opt out for each customer at point of data collection

• Standard business rules protect your data

• Abacus – blind data alliance

Data Privacy

http://www.dma.org.uk/

http://www.dma.org.uk/

Thank you

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Doug Oldfield

t: 0208 943 8010

m: 079 2049 8980

e: [email protected]