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Evolving your email
    targeting for increased
                    revenue

              Julie Anne Reda
VP of Product Strategy, Yesmail

                   Stephen Yu
VP of Data Strategies, Infogroup
What We Will Cover Today


• The marketing landscape
• The evolution of targeting
• Next Steps / Takeaways




                               Yesmail Confidential 2
Consumers
have
changed…


            Yesmail Confidential 3
Standards are higher




                       Source: DMA, Jan 2012; MyBuys & eTailing Group, June 2011



                                                       Yesmail Confidential 4
Most Desired Marketing Capability



97% of marketers said
the following was highly or
somewhat valuable
• better targeting through
  more detailed customer
  preferences
• delivering real-time
  personalized offers
                                    Source: RSR Research, Dec 2011



                                         Yesmail Confidential 5
Consumers’ expectations for marketing




                                        Yesmail Confidential 6
To use data successful, marketers must


Excel in:
  1. Data Collection
  2. Data Refinement
  3. Data Delivery
Provide marketing answers,
not just data
To be effective you must know
how to wield the power of all
available data faster.
                                         Yesmail Confidential 7
Example – StudentBeans.com


• UK-based student portal
• Welcome campaign
  based on offers
• Offers selection criteria
  – Popularity
  – Profitability
• Customized on
  – Sex of the subscriber
  – Location
                              Source: MarketingSherpa



                              Yesmail Confidential 8
Example – StudentBeans.com




                                     Use Orange Links
                                      instead of Blue



                33.9% increase in click-through rate
                for men (up from 4.49% to 6.01%)
                Negligible increase in click-through
                rate for women

                                            Yesmail Confidential 9
But getting
a clear
picture is
difficult…

              Yesmail Confidential 10
74% of marketers
are collecting
demographic data

64% are collecting
transactional data

But….
          Source: BRITE and NYAMA,
          Marketing ROI in the Era of Big Data,   Yesmail Confidential 11
          Mar 2012
Challenges




             Source: BRITE and NYAMA, Marketing
             ROI in the Era of Big Data, Mar 2012



                          Yesmail Confidential 12
Not only
 that….

           Yesmail Confidential 13
Evolution of Targeting


• Demographic
• Attitudinal
• Transactional
• Predictive




                         Yesmail Confidential 14
Predictive Analytics
The Power of Prediction


Marketing Programs that use predictive analytics
receive
      – 76% increase in click-through rate
      – 73% increment sales lift




Source: Aberdeen Group, Predictive Analytics for Sales and
Marketing, Jan 2012



                                                             Yesmail Confidential 16
• No guessing game – You
  MUST know your target
• Vast amount of online &
  offline data collected

But are they being used
properly?




                            Yesmail Confidential 17
• Analytics play a huge
  roles in prospecting &
  CRM
• Short paced marketing
  cycle getting shorter
• Huge difference between
  advanced marketers and
  those who are falling
  behind
Winners are the ones who
wield the power of all
available data faster.


                            Yesmail Confidential 18
“Analytics” means different things…


• BI (Business Intelligence) Reporting
• Descriptive Analytics
• Predictive Modeling
• Optimization


Predictive Modeling for
1-to-1 Marketing

                                         Yesmail Confidential 19
Why Model


• Increase Targeting Accuracy

• Reduce costs by contacting less/smart

• Stay relevant

• Consistent results

• Reveal hidden patterns in data

• Repeatable – key for automation

• Expandable

• “Supposedly” save time and effort



                                          Yesmail Confidential 20
Why not


• Universe is too small

• Predictable data not available

• 1-to-1 marketing channels not
 in plan

• Tight budget

• Lack of resources

                                   Yesmail Confidential 21
Common Barriers to Analytics and Modeling


        Are not familiar with selection or modeling techniques
            • Just need marketing answers


        Have a limited budget
           • Can’t afford expensive custom models



        Don’t have time to develop custom models
           • Tight deadlines but still need campaigns to perform



        Employ non-traditional and online channels
           • Need new forms of data delivery


                                                          Yesmail Confidential 22
TargetReady Models


• Games are different now
  • Not ranking “Customers” for 1 Merchant at a time any more
  • Customize offers & products for 1 Customer at a time now

• Speed is the name of the game
• Pre-built “Marketing Answers” for Immediate Delivery
• Categorical Models


TargetReady Models:
  Pre-developed categorical models that are ready for
  immediate deployment

                                                         Yesmail Confidential 23
Key Benefits of TargetReady Models

• Provide “Marketing Answers”:
  No need for users to plow through sea of data


• Extensive Category List & Coverage:
  Covers Behavioral & Attitudinal Elements (over 90 categories)
  A score for every household, for every category


• Pre-built for Immediate Deployment:
  No time to wait for custom models


• Significant Cost Savings:
  No upfront development cost, pay as you use it


• Simple to Use:
  9 means good, 0 means bad

                                                                  Yesmail Confidential 24
TargetReady Models: Perfect balance




                                      Yesmail Confidential 25
Example of TargetReady Models




26                                   Yesmail Confidential 26
Next Steps
Building a Better Targeting Program


1. Build a comprehensive and progressive profiling
   strategy and process
2. Use analytics to match profiles to content and
   desired behavior
3. Test for statistical significance
4. Optimize automation
5. Repeat

Be subtle!

                                          Yesmail Confidential 28
Introducing Personalization Ready Models


• Data service provided in
  conjunction with Infogroup
• Industry-specific bundles
• Benefits
  – Convenience
  – Frequently updated
  – Includes TargetReady
      • Predictive attributes
        without the cost

                                      Yesmail Confidential 29
Target in confidence


• Trusted 85% of Fortune 100
   • Derived from Infogroup’s Consumer Database
• Permission based and publically available data
   • Consumer database is updated every month
– Over 100 attributes
      – 210 million individuals within 115 M households




                                                          Yesmail Confidential 30
Conclusion




  1          Start Small




         2           Test and Repeat




                   3         Integrate into
                             Overall Program


                                        Yesmail Confidential 31
Thank you!

Questions? – Marketing@yesmail.com

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Evolving Your Email Targeting for Increased Revenue

  • 1. Evolving your email targeting for increased revenue Julie Anne Reda VP of Product Strategy, Yesmail Stephen Yu VP of Data Strategies, Infogroup
  • 2. What We Will Cover Today • The marketing landscape • The evolution of targeting • Next Steps / Takeaways Yesmail Confidential 2
  • 3. Consumers have changed… Yesmail Confidential 3
  • 4. Standards are higher Source: DMA, Jan 2012; MyBuys & eTailing Group, June 2011 Yesmail Confidential 4
  • 5. Most Desired Marketing Capability 97% of marketers said the following was highly or somewhat valuable • better targeting through more detailed customer preferences • delivering real-time personalized offers Source: RSR Research, Dec 2011 Yesmail Confidential 5
  • 6. Consumers’ expectations for marketing Yesmail Confidential 6
  • 7. To use data successful, marketers must Excel in: 1. Data Collection 2. Data Refinement 3. Data Delivery Provide marketing answers, not just data To be effective you must know how to wield the power of all available data faster. Yesmail Confidential 7
  • 8. Example – StudentBeans.com • UK-based student portal • Welcome campaign based on offers • Offers selection criteria – Popularity – Profitability • Customized on – Sex of the subscriber – Location Source: MarketingSherpa Yesmail Confidential 8
  • 9. Example – StudentBeans.com Use Orange Links instead of Blue 33.9% increase in click-through rate for men (up from 4.49% to 6.01%) Negligible increase in click-through rate for women Yesmail Confidential 9
  • 10. But getting a clear picture is difficult… Yesmail Confidential 10
  • 11. 74% of marketers are collecting demographic data 64% are collecting transactional data But…. Source: BRITE and NYAMA, Marketing ROI in the Era of Big Data, Yesmail Confidential 11 Mar 2012
  • 12. Challenges Source: BRITE and NYAMA, Marketing ROI in the Era of Big Data, Mar 2012 Yesmail Confidential 12
  • 13. Not only that…. Yesmail Confidential 13
  • 14. Evolution of Targeting • Demographic • Attitudinal • Transactional • Predictive Yesmail Confidential 14
  • 16. The Power of Prediction Marketing Programs that use predictive analytics receive – 76% increase in click-through rate – 73% increment sales lift Source: Aberdeen Group, Predictive Analytics for Sales and Marketing, Jan 2012 Yesmail Confidential 16
  • 17. • No guessing game – You MUST know your target • Vast amount of online & offline data collected But are they being used properly? Yesmail Confidential 17
  • 18. • Analytics play a huge roles in prospecting & CRM • Short paced marketing cycle getting shorter • Huge difference between advanced marketers and those who are falling behind Winners are the ones who wield the power of all available data faster. Yesmail Confidential 18
  • 19. “Analytics” means different things… • BI (Business Intelligence) Reporting • Descriptive Analytics • Predictive Modeling • Optimization Predictive Modeling for 1-to-1 Marketing Yesmail Confidential 19
  • 20. Why Model • Increase Targeting Accuracy • Reduce costs by contacting less/smart • Stay relevant • Consistent results • Reveal hidden patterns in data • Repeatable – key for automation • Expandable • “Supposedly” save time and effort Yesmail Confidential 20
  • 21. Why not • Universe is too small • Predictable data not available • 1-to-1 marketing channels not in plan • Tight budget • Lack of resources Yesmail Confidential 21
  • 22. Common Barriers to Analytics and Modeling Are not familiar with selection or modeling techniques • Just need marketing answers Have a limited budget • Can’t afford expensive custom models Don’t have time to develop custom models • Tight deadlines but still need campaigns to perform Employ non-traditional and online channels • Need new forms of data delivery Yesmail Confidential 22
  • 23. TargetReady Models • Games are different now • Not ranking “Customers” for 1 Merchant at a time any more • Customize offers & products for 1 Customer at a time now • Speed is the name of the game • Pre-built “Marketing Answers” for Immediate Delivery • Categorical Models TargetReady Models: Pre-developed categorical models that are ready for immediate deployment Yesmail Confidential 23
  • 24. Key Benefits of TargetReady Models • Provide “Marketing Answers”: No need for users to plow through sea of data • Extensive Category List & Coverage: Covers Behavioral & Attitudinal Elements (over 90 categories) A score for every household, for every category • Pre-built for Immediate Deployment: No time to wait for custom models • Significant Cost Savings: No upfront development cost, pay as you use it • Simple to Use: 9 means good, 0 means bad Yesmail Confidential 24
  • 25. TargetReady Models: Perfect balance Yesmail Confidential 25
  • 26. Example of TargetReady Models 26 Yesmail Confidential 26
  • 28. Building a Better Targeting Program 1. Build a comprehensive and progressive profiling strategy and process 2. Use analytics to match profiles to content and desired behavior 3. Test for statistical significance 4. Optimize automation 5. Repeat Be subtle! Yesmail Confidential 28
  • 29. Introducing Personalization Ready Models • Data service provided in conjunction with Infogroup • Industry-specific bundles • Benefits – Convenience – Frequently updated – Includes TargetReady • Predictive attributes without the cost Yesmail Confidential 29
  • 30. Target in confidence • Trusted 85% of Fortune 100 • Derived from Infogroup’s Consumer Database • Permission based and publically available data • Consumer database is updated every month – Over 100 attributes – 210 million individuals within 115 M households Yesmail Confidential 30
  • 31. Conclusion 1 Start Small 2 Test and Repeat 3 Integrate into Overall Program Yesmail Confidential 31
  • 32. Thank you! Questions? – Marketing@yesmail.com