abacus - database trends - lett direct, inc. · pdf file2 abacus cooperative two year trends...

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2017 and forward

Abacus database trends

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Abacus Cooperative two year trends

Catalog, online, & retail Publishing Not-for-profit Business-to-business

Over last two years,

catalog, online and

retail sales on

Abacus Cooperative

increased

Publishing sales

expanded

Contribution dollars

improved

Gross sales

were flat9% 31% 61% 0%

Number of

transactions rose

Number of

subscriptions

Number of

donations

were up

Number of

transactions

went4% 4% 36%

5%

And the number of

households

purchasing in this

market improved

And the number of

subscribers

increased

And the

number of

active donors

grew

And the B2B

contacts

increased2% 4% 23% 2%

January1, 2015 – December 31, 2016

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Catalog, online, & retail

Over last two years,

catalog, online and

retail sales on

Abacus Cooperative

increased

9%

Number of

transactions rose 4%

And the number of

households

purchasing in this

market improved2% Indoor & outdoor décor

and furnishings

+21% in 12mo revenue

Gifts – general

and food related


Fashion accessories

& beauty


Children’s &

teen merchandise


Adult apparel

+8% in 12mo revenue

Abacus Cooperative two year trends

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The new catalog mailer

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• E Commerce retailers like catalog!

• These millennials are skeptical, then thrilled with the result!

• It works… the customer acquisition cost is often lower than online channels

• NTV is greater, higher AOV, more repeat purchasing, not price driven

• Scale

• Reach new audiences

• Brand Exposure

• Continuation rate is 78%

• Average annual growth is 165%

• New face of catalog companies

The catalog company is evolving

Estimated

11 Billion

Catalogs

mailed in 2016

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E-commerce market – based on 45 offers

Consumer market – based on 381 offers

37% 29% 6% 20%

0% Gross sales 0% Households 2% $ / HH 0% Trans / HH

Consumer

market

overall

E-commerce

market

Growth on the Co-op

YOY : 2016 vs. 2015

Gross Sales Households $/ HH Trans/ HH

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83%

25%

70%

50% 50%

62%

8%

53%

33% 31%

Age under 55 Income > $150K+ Married POC College orGraduate School

E Comm Abacus Co-op

E-commerce catalog buyers

E-commerce buyer

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The buyers

Younger 4

Wealthier 4

Young families 4

Educated 4

Epsilon

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E-commerce catalog buyers

Average age

50

55

47

48

49

50

51

52

53

54

55

56

$104,637

$74,177

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Average income

E-commerce Abacus

Avg.

E-commerce Abacus

Avg.

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Note: excluding large mass appeal offers- avg. age 46, avg. income $95K

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Affinity to higher ticket items, such as

apparel, home furnishings, kitchen, patio

décor and furnishings.

Active with many hobbies and likes to

pamper themselves—with purchases

around gardening, active wear, and wine

& wine accessories.

What do they buy?

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E Commerce Buyers

% annual spend

19%E Comm.

81% Traditional Retailers

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What's new in B2B

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• 2016 was a challenging year for B2B mailers

• Businesses paused spending—exaggerated version

of consumer market dynamic

• Consolidation across B2B service providers

- Abacus-Merit joint projects

• Focus was optimization of models/best practices

- Modeling over SIC selects

- Understanding of B2B universe subsets

- New modeling approaches

The good news is 2017 is up, clients are seeing an

increase in sales and circulation is up!

B2B trends

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Does age matter?

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Age considerations

• 103 million people over the age of 50 in the U.S

• 75 million are baby boomers (in the 50–69 range)

• 28 million are from the silent generation (in the 70+ range)

• But as marketers, you know that there is incredible variability within these generations,

and you may be struggling to connect with them.

Our research found one impactful way to segment boomers+: by finances.

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$25,759

$63,832

$55,928

$41,538

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Millennials Gen X Baby Boomers Silents

Median Income

$21,620

$171,212

$332,944

$360,448

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000


Net Worth

Market potential: income

Age

15 - 35

Age

35 - 50

Age

50 - 70Age

70+

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$508

$709

$765

$675

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900


Avg Spend/ HH

Market potential: spending

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Data everywhere

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Data everywhere

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Abacus

Modeled

Universe

Expand reach

to offline

universeSocial

Display

Advertising Email

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Data everywhere

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transactional

data

Catalog

supplement

strategy

Epsilon

Contact

Complete

Incremental

digital

acquisition

Display Social sites

+ Google

Marketplaces Display Social sites

+ Google

Marketplaces

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Ad

Networks/

DSPs

Ad

Networks/

DSPs

Ad

Networks/

DSPs

Epsilon online partners

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Site tagging

20

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• Deliver improved performance of Abacus models by

incorporating web browsing data into modeling.

Enhancing the Abacus Cooperative

21

127% $/bk

71%$/bk

Housefile: Results confirm an

increase in performance in buyers

who have browsed in the last 0-

90 days in comparison to

customers without browsing

behavior.

Prospecting: Results

show an incremental universe

improvement by including web

browsing variables into

acquisition models.

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Amazon

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50+ global market places

The Amazon effect

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The Amazon effect Total of all

ecommerce sales

in 2016

Amazon-Prime

households

Amazon users

purchase via the

Amazon App

Customers who

reference reviews

before a purchase

Items fulfilled by

Amazon globally

in 2016

38% 50% 50% 80% 1billion

Sourc

es:

Inte

rnet

Reta

iler

& D

MR

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Ease Loyalty MobileMarket

Reviews

Amazon

Acquired

Customers

Easy to buy! Why do customers keep

coming back?

64 % of Americans shop

from their mobile device

Digital Focus Group

What is the Life Time

Value of these Market

Place Acquired

Customers?

The Amazon Effect – Client ActionS

ourc

es:

Inte

rnet

Reta

iler

& D

MR

Thank you

abacus - database trends - lett direct, inc. · pdf file2 abacus cooperative two year trends...

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