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CONTACT STRATEGY
          One Method of
          Trigger Based
         Direct Marketing

Bruce Reznik
Director, Database Marketing
Boardroom Inc.
203-635-4090
Brucerez@gmail.com
                               1
Objective

   Drive incremental sales by reaching out to
    recent paid customers.

   Personalized “Thank You” with a special
    message and offer.




                                                 2
Evolution
   Phase 1: Increase circulation by offering free
    trial subscription to all paid Book Buyers.

   Phase 2: Segment buyers and offer them
    targeted products.

   Phase 3: Dynamically personalize offer with
    name and product purchased.


                                                     3
Evolution (continued)
   Phase 4: Build models to screen out low scoring
    customers.

   Phase 5: Use models to re-target top scoring
    buyer groups.

   Phase 6: Add new buyers to the groups being
    promoted.


                                                   4
Evolution (continued)
   Phase 7: Test creative and products to different
    segments (such as genre, gender etc.).

   Phase 8: Add scoring to better target re-mail
    segments.

   Phase 9: Test formats.



                                                    5
Evolution (continued)
   Phase 10: Test offers.

   Phase 11: Test media.

   Phase 12: Test continuity products

   Phase 13: Test subject lines and envelope
    designs to get more customers into the
    email / envelope.

                                            6
Quantity Promoted
         800,000
         700,000
         600,000
         500,000
         400,000
         300,000
         200,000
         100,000
               0
                   2007   2007    2007    2007   2008   2008
                    Q1     Q2      Q3      Q4     Q1     Q2


   Q1 2008 is more than triple Q1 2007
   Q2 2008 is more than double Q2 2007
                                                               7
Net Subscriptions

        14,000
        12,000
        10,000
         8,000
         6,000
         4,000
         2,000
           -
                 2007   2007   2007      2007   2008   2008
                  Q1     Q2     Q3        Q4     Q1     Q2


   Q1 2008 is 2.5 times Q1 2007
   Q2 2008 is 1/3 higher than Q2 2007
                                                              8
Sample Contact Strategy Grid
                                   Choice #1        Choice #1
List Name           List Select    (Female)         (OT Female)      Choice #2   Choice #3   Choice #4

                    100% Female      BNH old env      BNH old env
Health Book
                    Top 85% otw
                                                                        HCF          BLP         BWH
                                     BNH new env      BNH new env

                                      BLP old env      BLP old env
NONH Book           Full 100%                                           HCF         BNH          BWH
                                     BLP new env      BLP new env

HBB & prior PB      Rml 40%              BLP              BLP            HCF        BNH            

NHBB & prior PB     Rml 40%             BNH              BNH             BLP        HCF            

BB All & prior PB   3rd Wave 25%        HCF              BNH             BLP                       

Health Pub          BWH                 BNH               BNH           HCF          BLP           

Health Pub          HCF                 BWH              BNH            BLP                        

Health Pub          BNH                 BWH              BLP            HCF                        

NONH Pub            BLP                 BWH              BNH            HCF                        

NONH Pub            TMW                 BWH              BNH            BLP         HCF            

NONH Pub            WTH                 BWH              BNH            BLP         HCF       

Health Pub          Rml 60%              BLP              BLP           BNH         HCF            

NONH Pub            Rml 60%             HCF              HCF            BNH         BLP            

PB All              3rd Wave 30%        HCF              HCF            BNH         BLP       

 Depending on what you’ve bought and who you are there are
  58 possible cell assignments above
 Samples available to review…                                                                           9
Campaign Proximity Analysis

   Determine quantitative impact of test
    campaigns.

   Set strategy to minimize cost and
    maximize profits.




                                            10
Campaign Proximity Analysis
           Net $ Per Order - House Names                    Net $ Per Order - Best (Multi) Names

$10.00                                             $10.00
 $9.00                                              $9.00
 $8.00                                              $8.00

 $7.00                                              $7.00

 $6.00                                              $6.00
                                                    $5.00
 $5.00
                                                    $4.00
 $4.00
                                                    $3.00
 $3.00
                                                            <7 <=7 =7    =6   >7 >10 >12 =14 >14 >16
         <7 <=7 =7   =6   >7 >10 >12 =14 >14 >16




  The greater the time between campaigns,
    the higher the net profit per order - But keep in
 mind the total profit dollars.

  NOTE: Data contains 5 years of campaign history
                                                                                                   11
Mail Overlap Analysis
              Overlap Name Net Response Index

    200

    150

    100

     50

      0
          0      2       5      7     7        12   14

                     Days Since Last Mailing

  The actual net response rate for overlap names (i.e.
best/recent multi-buyers) are typically 30-50% better
than non-overlap names. But mailing them too
frequently reduces this edge. This is the line to straddle
in order to maximize profits.                                12
Thank You!


Bruce Reznik
Director, Database Marketing
Boardroom Inc.
203-635-4090
Brucerez@gmail.com
                                  13

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Contact Strategy Presentation 2012

  • 1. CONTACT STRATEGY One Method of Trigger Based Direct Marketing Bruce Reznik Director, Database Marketing Boardroom Inc. 203-635-4090 Brucerez@gmail.com 1
  • 2. Objective  Drive incremental sales by reaching out to recent paid customers.  Personalized “Thank You” with a special message and offer. 2
  • 3. Evolution  Phase 1: Increase circulation by offering free trial subscription to all paid Book Buyers.  Phase 2: Segment buyers and offer them targeted products.  Phase 3: Dynamically personalize offer with name and product purchased. 3
  • 4. Evolution (continued)  Phase 4: Build models to screen out low scoring customers.  Phase 5: Use models to re-target top scoring buyer groups.  Phase 6: Add new buyers to the groups being promoted. 4
  • 5. Evolution (continued)  Phase 7: Test creative and products to different segments (such as genre, gender etc.).  Phase 8: Add scoring to better target re-mail segments.  Phase 9: Test formats. 5
  • 6. Evolution (continued)  Phase 10: Test offers.  Phase 11: Test media.  Phase 12: Test continuity products  Phase 13: Test subject lines and envelope designs to get more customers into the email / envelope. 6
  • 7. Quantity Promoted 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2007 2007 2007 2007 2008 2008 Q1 Q2 Q3 Q4 Q1 Q2  Q1 2008 is more than triple Q1 2007  Q2 2008 is more than double Q2 2007 7
  • 8. Net Subscriptions 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 2007 2007 2007 2007 2008 2008 Q1 Q2 Q3 Q4 Q1 Q2  Q1 2008 is 2.5 times Q1 2007  Q2 2008 is 1/3 higher than Q2 2007 8
  • 9. Sample Contact Strategy Grid Choice #1  Choice #1 List Name List Select (Female) (OT Female) Choice #2 Choice #3 Choice #4 100% Female BNH old env BNH old env Health Book Top 85% otw HCF BLP BWH BNH new env BNH new env BLP old env BLP old env NONH Book Full 100%   HCF BNH BWH BLP new env BLP new env HBB & prior PB Rml 40% BLP BLP  HCF BNH   NHBB & prior PB Rml 40% BNH BNH BLP HCF   BB All & prior PB 3rd Wave 25% HCF BNH BLP     Health Pub  BWH BNH  BNH HCF BLP   Health Pub  HCF         BWH BNH BLP     Health Pub  BNH          BWH BLP HCF     NONH Pub BLP BWH BNH HCF     NONH Pub TMW BWH BNH BLP HCF   NONH Pub WTH BWH BNH BLP HCF   Health Pub  Rml 60%    BLP  BLP BNH HCF   NONH Pub Rml 60%    HCF HCF BNH BLP   PB All 3rd Wave 30% HCF HCF BNH BLP    Depending on what you’ve bought and who you are there are 58 possible cell assignments above  Samples available to review… 9
  • 10. Campaign Proximity Analysis  Determine quantitative impact of test campaigns.  Set strategy to minimize cost and maximize profits. 10
  • 11. Campaign Proximity Analysis Net $ Per Order - House Names Net $ Per Order - Best (Multi) Names $10.00 $10.00 $9.00 $9.00 $8.00 $8.00 $7.00 $7.00 $6.00 $6.00 $5.00 $5.00 $4.00 $4.00 $3.00 $3.00 <7 <=7 =7 =6 >7 >10 >12 =14 >14 >16 <7 <=7 =7 =6 >7 >10 >12 =14 >14 >16  The greater the time between campaigns, the higher the net profit per order - But keep in mind the total profit dollars. NOTE: Data contains 5 years of campaign history 11
  • 12. Mail Overlap Analysis Overlap Name Net Response Index 200 150 100 50 0 0 2 5 7 7 12 14 Days Since Last Mailing  The actual net response rate for overlap names (i.e. best/recent multi-buyers) are typically 30-50% better than non-overlap names. But mailing them too frequently reduces this edge. This is the line to straddle in order to maximize profits. 12
  • 13. Thank You! Bruce Reznik Director, Database Marketing Boardroom Inc. 203-635-4090 Brucerez@gmail.com 13