intelligence-driven solutions for audience optimization: leap overview
TRANSCRIPT
Intelligence-driven solutions for audience optimization
Questions for Consideration
How much do you know about your customers? – Your potential customers? Your customer’s customers? – Is all of your relevant data in one place? Is it accessible?
Are you wasting money? – Do you spend your sales dollars where return is the highest? – Do you reach the right people at the right time with the right offer using the right channel? – Are your communications personalized? – Are you constrained by your ability to migrate from project to process?
Are you maximizing the value of your customer relationships? – Do you proactively seek to cross-sell, up-sell, re-sell, engage?
Are you leaving ad dollars on the table? – Can you do more for your advertisers?
Do you have access to performance metrics to optimize decision-making? – How much time is spent preparing basic reports? – Are you looking at the right metrics – or just the most convenient ones?
Shared
Resources
World Class
Systems
Best
Practices
Marketing
Optimization
The LEAP Approach
Resource investments shared across coalition of partner companies
– Marketing technology
– Infrastructure – hardware/software/support
– Professional services
– Third-party data acquisition
– Email executions
– Direct mail production
– Statistical modeling
– Coalition metrics and benchmarks
Benefits
– Access to world class technology & expertise
– Economies of scale drive down data & production costs
– Rapid identification & implementation of marketing best practices
Shared Resource Management
The LEAP Client Coalition
• Calkins Media • Erie Times-News • The Day (New London, CT) • The Gazette Company (Cedar Rapids, IA) • Aurora Media Group • The Bakersfield Californian • The Frederick News-Post • The New Hampshire Union-Leader • Colorado Springs Gazette • Swift Communications • Albuquerque Journal • Small Newspaper Group
The LEAP Client Coalition
• Calkins Media • Erie Times-News • The Day (New London, CT) • The Gazette Company (Cedar Rapids, IA) • Aurora Media Group • The Bakersfield Californian • The Frederick News-Post • The New Hampshire Union-Leader • Colorado Springs Gazette • Swift Communications • Albuquerque Journal • Small Newspaper Group • Hartford Courant • Albany Times-Union • Digital First Media • GateHouse Media
How Coalition Partners Benefit
• Meaningful improvements in audience performance – Cost per unit – Return on investment – Volume – Revenue
• Reduction of internal costs – Reporting and analysis – Campaign costs of file production, design, traffic management
• On-demand access to KPI’s and business metrics – Campaign and retention analytics – Coalition benchmarks
• Revenue diversification and growth – Multi-platform solutions
Discovery
6.
Discovery
Marketing Technology Design & Deployment
6.
CUSTOMER
INTELLIGENCE SYSTEM
Address
Demographics
Subscribers
Dispositions
User Registration
Newsletters
Deals
Contests
Loyalty
Merchants
Marketing Automation Platform
OLD PARADIGM: Static Subscription Profile
40 Cove Road Stonington, CT 06371
Telemarketing Start October 3, 2010
Active Mon-Sun Subscriber Enrolled in EZ Pay since 2011
$653.10 in subscription revenues in past 3 years
Wet paper delivery Complaint last Tuesday
Address-based
NEW PARADIGM: Dynamic Customer Profile
Address-based
60 years old – member 58 years old - member
HH Income > $150,000 Homeowners
$780.16 in Consumer Revenues since 2009
Six daily deals Purchases since 2011
Two-week vacation every July since 2009
Signed up for mobile breaking news alerts
Registered for weekly Business e-newsletter
Reads Grace and Sound & Country magazines online
Acxiom Lifestage: 15M – Mature Wealth
Indexes high for online purchasing
Twelve activations on rewards site since 2012
Indexes high for Interest in Community
Active Daily subscriber Registered on website
User-based
Discovery
Marketing Technology Design & Deployment
Targeted Growth Model Development
6.
• Define & invest in audiences based on key criteria
– Transaction history
– Product usage
– Demographics
– Lifestyle attributes
– Channel preference
– Merchant relationships
– Contact history
Segment A
Segment B
Segment C
Segment D Segment E
Segment F
Segment G
Segment H
Targeted Growth Model Development
TGM – Geographic Penetration
TGM – Demographic Segmentation
TGM – Lifestage Segmentation
Not All Customers are Equal
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Not All Customers are Equal
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Strategy may be varied based on attributes
Hard to Acquire, Good Retention
Hard to Acquire, Poor Retention
Easy to Acquire, Poor Retention
Easy to Acquire, Good Retention
Discounting or pricing with migration to full price. Worth spending more to acquire.
Move marketing $ elsewhere, or micro-target based on desirable characteristics.
Incremental penetration may be costly. May be somewhat price inelastic.
Early, consistent engagement and reinforcement of value. EZ Pay focus.
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LEAP Finds the Sweet Spot
Hard to Acquire, Good Retention
Hard to Acquire, Poor Retention
Easy to Acquire, Poor Retention
Easy to Acquire, Good Retention
Discounting or pricing with migration to full price. Worth spending more to acquire.
Move marketing $ elsewhere, or micro-target based on desirable characteristics.
Incremental penetration may be costly. May be somewhat price inelastic.
Early, consistent engagement and reinforcement of value. EZ Pay focus.
LEAP Zero-Based Budget Model
Discovery
Marketing Technology Design & Deployment
Targeted Growth Model Development
Campaign Curriculum Development & Automation
6.
Curriculum Components
Acquisition – Proprietary segmentation model – Integrated, multichannel communications scheme – Allocates investment to high-value customers – Optimizes marketing ROI
Acquisition: Targeted, Personalized
Curriculum Components
Acquisition – Proprietary segmentation model – Integrated, multichannel communications scheme – Allocates investment to high-value customers – Optimizes marketing ROI
Customer Lifecycle Management – Automated, multichannel curriculum of critical touch points – Optimizes cross-sell/up-sell opportunities – Improves operational efficiency – Drives retention and customer profitability
Multichannel CLM Curriculum
Date- and Event-Triggered Communications
Fully-Integrated Online Fulfillment
Curriculum Components
Acquisition – Proprietary segmentation model – Integrated, multichannel communications scheme – Allocates investment to high-value customers – Optimizes marketing ROI
Customer Lifecycle Management – Automated, multichannel curriculum of critical touch points – Optimizes cross-sell/up-sell opportunities – Improves operational efficiency – Drives retention and customer profitability
Engagement and Monetization – Digital content marketing platform – Responsive-designed, automated, RSS-driven e-newsletter templates – Promote engagement with content and social sharing – Build awareness and adoption of all products – Generate new revenue through sponsorships and advertising
LEAP Digital Content Automation
Channel-Integrated Campaign Calendar
Discovery
Marketing Technology Design & Deployment
Targeted Growth Model Development
Campaign Curriculum Development & Automation
Multichannel Campaign Executions
6.
LEAP Direct Mail Design & Fulfillment
LEAP Email Design & Execution
CUSTOMER
INTELLIGENCE SYSTEM
Address
Demographics
Subscribers
Dispositions
User Registration
Newsletters
Deals
Contests
Loyalty
Merchants
Marketing Automation Platform
Discovery
Marketing Technology Design & Deployment
Targeted Growth Model Development
Campaign Curriculum Development & Automation
Multichannel Campaign Executions
Analytics & Continuous Improvement 6.
LEAP Email Engagement Dashboard
Campaign Response Analytics
LEAP Retention Analytics Suite
Weekly KPI Reporting
DOES
IT
WORK?
What the Numbers Say…
• Key metric #1: The number of starts that last at least ONE YEAR
– Comparison based on starts generated in the 12 months prior to LEAP engagement vs. 12 months subsequent to implementation
Source One Year Pre-LEAP One Year Post-LEAP
Direct Mail
Telemarketing
Voluntary
ALL STARTS
What the Numbers Say…
• Key metric #1: The number of starts that last at least ONE YEAR
– Comparison based on starts generated in the 12 months prior to LEAP engagement vs. 12 months subsequent to implementation
Source One Year Pre-LEAP One Year Post-LEAP
Direct Mail 34.4
Email 44.4
Telemarketing 16.1
Voluntary 34.8
ALL STARTS 27.0
What the Numbers Say…
• Key metric #1: The number of starts that last at least ONE YEAR
– Comparison based on starts generated in the 12 months prior to LEAP engagement vs. 12 months subsequent to implementation
Source One Year Pre-LEAP One Year Post-LEAP
Direct Mail 34.4 67.0
Email 44.4 72.6
Telemarketing 16.1 39.2
Voluntary 34.8 56.5
ALL STARTS 27.0 45.0
What the Numbers Say…
• Key metric #2: The arithmetic differential between new starts and permanent stops YOY
Newspaper YOY Starts YOY Stops Net +/-
Company A
Company B
Company C
Company D
What the Numbers Say…
• Key metric #2: The arithmetic differential between new starts and permanent stops YOY
Newspaper YOY Starts YOY Stops Net +/-
Company A -1,427 -13,119 +11,692
Company B
Company C
Company D
What the Numbers Say…
• Key metric #2: The arithmetic differential between new starts and permanent stops YOY
Newspaper YOY Starts YOY Stops Net +/-
Company A -1,427 -13,119 +11,692
Company B +307 -1,331 +1,638
Company C +928 -275 +1,203
Company D +372 -204 +576
Monthly Performance Dashboard
CLIENT CASE STUDIES
Recent successes for LEAP coalition partners
The Day Publishing Company
• LEAP coalition partner since January, 2013
o Developed roadmap to redefine its brand around a consumer-centered business model that
Unified the content management and digital publishing infrastructure
Derives a fair value from proprietary content and services
Creates a customized user experience, with single sign-on authentication
Builds a synergistic business model that regards customers as strategic assets
• Results
o Total audience revenue growth of +25% since 2012
o +34% improvement in subscriber retention since 2010
o +67% activation of digital member access among print subscribers since 2011
o +440% growth of email database as a result of its progressive registration process (meter) since 2011
o +177% increase in automatic renewal participation since 2012
“LEAP delivers a level of sophistication in customer intelligence and marketing automation better and cheaper than we could build ourselves. These capabilities are crucial to effectively execute our strategic plan.”
- Gary Farrugia, Publisher, The Day Publishing Company
Erie Times-News
• LEAP coalition partner since January, 2013
o Developed and administer a data-driven, end-to-end audience management strategy to
Support targeted, multichannel campaigns for audience and advertising revenue development
Reduce costs through shared cost approach for technology, email, direct mail and data licenses
Benefit from LEAP’s resources and expertise to operate and deliver on proven best practices
• Results
o +$800,000 in new advertising revenues from target marketing programs since 2013
o +42% improvement in subscriber retention since 2011
o +90% increase in automatic renewal participation since 2012
o +1,653 net/net increase (starts vs. stops) year-to-date in 2015
“LEAP’s shared cost approach enables our company to achieve a level of end-to-end marketing sophistication that is technologically unachievable for independent media enterprises such as ours.”
- Rich Forsgren, Director/Audience Strategy & Technology, Erie Times-News
The Frederick News-Post
• LEAP coalition partner since March, 2013
o Invest in intelligent marketing to transform business strategy and drive audience growth
Adopt a demographic, data-driven approach to customer acquisition and retention
Diversify sales machinery with emphasis on measurable, targeted marketing channels
Design an integrated registration process to grow email database
Use analytics to measure, track and make better decisions for marketing investments
• Results
o Overall subscriber retention has improved +30% since 2012
o 39% reduction in cost per unit of circulation since 2012
o 31% increase in number of registered site users since 2012
o 16% increase in home delivery revenue since 2013
o 48% reduction in subscriber churn since 2013
“LEAP has made our marketing efforts more intelligent. We know a lot more about who our customers are and how to communicate with them. The richness of the demographic helps streamline our direct mail and telemarketing efforts. We are spending our money in a much smarter way thanks to LEAP.”
- Kerry Turner, Circulation Director, The Frederick News-Post
Digital First Media - Michigan
• LEAP coalition partner since February, 2014
o Outsource acquisition and retention management to reduce costs and drive audience growth
Shift from a churn-replacement sales model to a retention-based lifecycle management model
Redeploy sales budget from low-ROI pressure channels to high-ROI targeted channels
Implement marketing automation to proactively retain loyal customers and reduce attrition
Restore circulation volume levels to repair damage from over-aggressive price increases
• Results
o Reversed year-to-year net/net performance +11,794 since 2014
o 32% reduction in subscriber retention since 2014
o 144% increase in targeted acquisition (direct mail, telemarketing and email) since 2014
o 75% improvement in subscriber retention since 2011
o 1,511 new start and renewal transactions processed through LMS web forms since 2014
“We are really pleased with the overall results and improvements to our business performance since engaging with LEAP. Our home delivery volume losses were a problem, and LEAP has addressed that through a retention-based acquisition strategy and emphasizing customer lifecycle management to promote loyalty.”
- Jim Geottes, Regional Circulation Sales & Retention Manager, Digital First Media
The Hartford Courant
• LEAP coalition partner since May, 2014
o Develop an ongoing audience development plan to support its registration & metering strategy
Identify and integrate underutilized data assets
Assist with re-engineering manual processes to benefit from marketing automation
Design and execute a comprehensive, multi-channel engagement plan for acquisition, retention, engagement and monetization
• Results
o Increased registration database from 80,000 to 128,000 through discovery
o Successfully appended name, address and demographics data to 44,659 previously anonymous emails
o Converted 21% of print subscribers to fully-activated print + digital customers
o +440% growth of email database as a result of its progressive registration process (meter) since 2011
o +177% increase in automatic renewal participation since 2012
“LEAP has been a great partner throughout this process. They come with valuable experience and expertise, which has translated into positive results. We are pleased with our results, which are on track to exceed our 2015 goals.”
- Sue Kerr, Circulation Director, Hartford Courant
leapmediasolutions.com 303.886.0202