2. Dan Parzych VP Analytics Presented by: MULTI-CHANNEL CONVERGENCE: THE CONSUMER BATTLE BETWEEN ONLINE AND OFFLINE Michael Bloom General Manager Datran Direct

5. $ $ $ Postal Costs UP Paper Costs UP Acquisition Costs UP Response Rates, Lifetime Values, and Profits ALL DOWN Direct Mail Industry at a Crossroads

6. Mailable Universes Shrinking and the Direct Mail Industry is In Crisis ACTIVES EXPIRES

7. Multi-Channel Success in Traditional Direct Mail Verticals Publishing Telecommunications & Cable Credit Cards Catalogs Non-Profit Insurance Direct Mailers Cutting Volume and Shifting Budgets to Online Into Multi-Channel Platforms

8. What is Multi-Channel Marketing? INTEGRATED…..OUTBOUND…..DIRECT MARKETING…..VIA MULTIPLE CHANNELS Direct Mail Email Marketing Telemarketing Focus today on DM and Email Search engine marketing and TV Infomercials are not outbound direct marketing channels Mobile Marketing

10. The NEW Age-Old Adage of Direct Marketing REACH THE………… RIGHT CONSUMER WITH THE….. RIGHT OFFER AT THE….. RIGHT TIME VIA THE….…….….. RIGHT CHANNEL

11. The 10 Laws of Multi-Channel Marketing MYTH or FACT??? Introducing the …… Michael Dan

12. DIRECT MAIL AND EMAIL RESPONDERS ARE DIFFERENT CONSUMER SEGMENTS #1 MYTH!

13. Datran Media & Alliant Data Joint Research Study Direct Mail Consumers Email Consumers 52% Match Rate The Same Customers Transacting via Direct Mail Are Also Transacting via Email

15. Demographic Profiles are MUCH More Alike than Different Direct Mail vs. Email Age Income Direct Mail Email Email INDEX Gender 36 5% 14% 70+ 60 9% 15% 61-70 109 24% 22% 51-60 113 27% 24% 41-50 122 22% 18% 31-40 186 13% 7% 20-30 70 16% 23% $100K+ 93 14% 15% $75 - 100K 114 24% 21% $51 - 75K 113 26% 23% $26 - 50K 111 20% 18% HHI < $25K 82 56% 68% FEMALE 138 44% 32% MALE

16. INTERNET SOURCED LIST RENTALS DO NOT PERFORM WELL IN DIRECT MAIL #2 MYTH!

19. Internet Sourced List Outperformed Compiled Lists in EVERY Market 46% LOWER CPA 30% LOWER CPA 42% LOWER CPA

20. INTERNET SOURCED SELF REPORTED CONSUMER DATA IS NOT ACCURATE #3 MYTH!

22. TARGETING RECENT RESPONDERS IS MORE IMPORTANT FOR EMAIL THAN FOR DIRECT MAIL #4 FACT!

24. SENDING RELEVANT MESSAGES IS CRITICAL FOR DIRECT MAIL BUT LESS IMPORTANT FOR EMAIL #5 MYTH!

26. CONSUMERS USE EMAIL FOR SHOPPING BUT RELY ON DIRECT MAIL FOR BUYING #6 MYTH!

28. Successful Multi-Channel Contact Strategies Enable MULTIPLE Buying Paths Email Direct Mail Website Telemarketing ORDERS

29. MULTI-CHANNEL CONSUMERS ARE MORE VALUABLE THAN SINGLE-CHANNEL CONSUMERS #7 FACT!

30. Multi-Channel Marketing Delivers Higher Response Rates & Higher Order Size SEGMENT B EMAIL ONLY SEGMENT A DIRECT MAIL ONLY SEGMENT C DM + EMAIL 15-25% Higher Order Size 15-25% Higher Response

31. OFFERS THAT WORK IN DIRECT MAIL WILL ALSO WORK IN EMAIL #8 FACT!

33. LEADING DIRECT MARKETERS ARE ALREADY SUCCESSFUL AT MULTI-CHANNEL MARKETING #9 MYTH!

35. #10 MULTI-CHANNEL MARKETING REQUIRES HEAVY DEVELOPMENT AND INVESTMENT MYTH!

37. Thank You! Q & A