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2007 astech 03
 

2007 astech 03

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    2007 astech 03 2007 astech 03 Presentation Transcript

    • www.astech-intermedia.com“Operationalizing” Market Segmentation INMA Circulation Summit 8 March 2007
    • Putting Segmentation in Perspective “If there‟s one strategy that should guide your marketingChanging Your Perspective. tactics for the next 12 months, it‟s micro-segmentation. What we used to call the „average‟ customer no longer exists. Customers increasingly see themselves as unique individuals, and perception of this newfound individuality has exploded in the past 10 years. Connecting effectively to a country of individualists requires a keen ability to speak to the specific needs of a larger number of smaller groups. This trend will only increase over the coming years, and likely never reverse.” Michael Greenberg, Loyalty Lab Slides available at www.astech-intermedia.com
    • Putting Segmentation in Perspective “If there‟s one strategy that should guide your marketingChanging Your Perspective. tactics for the next 12 months, it‟s micro-segmentation. What we used to call the „average‟ customer no longer exists. Customers increasingly see themselves as unique individuals, and perception of this newfound individuality has exploded in the past 10 years. Connecting effectively to a country of individualists requires a keen ability to speak to the specific needs of a larger number of smaller groups. This trend will only increase over the coming years, and likely never reverse.” Michael Greenberg, Loyalty Lab Slides available at www.astech-intermedia.com
    • What is Market Segmentation?Changing Your Perspective. Seg J Seg A Seg B Seg I Seg H Seg C Seg G Seg F Seg D Seg E Slides available at www.astech-intermedia.com
    • In Order to Customize… •Changing Your Perspective. Offer • Channel • Timing • Creative Slides available at www.astech-intermedia.com
    • Business Drivers • Newspaper circulation is in decline.Changing Your Perspective. • Telemarketing has been compromised. • Channel diversification is expensive. Slides available at www.astech-intermedia.com
    • Data Drivers •Changing Your Perspective. Transactional • Behavioral • Demographic • Geographic Slides available at www.astech-intermedia.com
    • Technology Drivers • Marketing automation systemsChanging Your Perspective. • Integration of data quality, consolidation, analytics, reporting, segmentation, output creation, campaign execution and evaluation • Digital communications • E-mail • SMS • RSS feeds • Podcasting • Etc. • Print technology • Telephony Slides available at www.astech-intermedia.com
    • Data-Driven Marketing Automation •Circulation TransactionsChanging Your Perspective. •Advertising Transactions •Telemarketing Dispositions Planning/Reporting •Customer Service •Web Interactions Segmentation & Analysis CLEANSE-STANDARDIZE MARKETING INTEGRATE-ENRICH DATA CENTER •Demographics Modeling & Data Mining •Contests/Events •New Movers •Postal Delivery Data •Advertiser Customer Files Multi-Channel Campaign Management & Online Marketing Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Two Key Assumptions • Retention begins with acquisitionChanging Your Perspective. • Marketing ROI is optimized in a “process” environment Slides available at www.astech-intermedia.com
    • Subscriber Marketing is a Process Prioritize SegmentsChanging Your Perspective. Campaign Tracking Control Analysis Market Segmentation Strategy Acquisition Strategies Process Responses Implementation Planning Identify Prospects Campaign Execution Process Leads Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Project or Process? Project ProcessChanging Your Perspective. • Short-term focus • Long-term focus • IT-dependent • IT-supported • Measurement constrained • Metrics-based • Discontinuous improvement • Continuous improvement • Cost-constrained • ROI-driven • Resource-intensive • Automated • Economic inefficiencies • Economies of scale Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Begin at the End • Establish realistic, measurable goalsChanging Your Perspective. • “Improve 52-week retention by 10% in the next 12 months” • Outline the strategies to achieve those goals • “Increase direct debit orders to 50%” • “Increase direct mail starts by 25%” • “Increase first-time renewals by 40%” • Define the tactics that support the strategies • “Offer Easy Pay incentives to new subscribers based on PRIZM…” • “Drop five tailored packages of 5,000 pieces per month to segments defined by the following criteria…” • “Implement a new subscriber communications plan that is customized to subscription characteristics and includes these elements…” Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Benchmark Your Capabilities DataChanging Your Perspective. Channel Technology Development Organization •Skills •Culture Slides available at www.astech-intermedia.com •Bandwidth
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Slice the PieChanging Your Perspective. Seg J Seg A Seg B Seg I Seg H Seg C Seg G Seg F Seg D Seg E Slides available at www.astech-intermedia.com
    • Contributing Factors •Changing Your Perspective. Strategic considerations • Data availability and access • Marketing technology • Channel development • Skills Slides available at www.astech-intermedia.com
    • Sample Strategic Considerations • Is there a particular demographic target forChanging Your Perspective. which growth is imperative? • Females, Hispanics, Boomers, Gen X/Y, etc. • How are circulation objectives weighted…towards volume or profitability? • Are we delivering our customer‟s customer? • What is the competitive environment? • Do we seek a short-term bump or sustainable growth? Slides available at www.astech-intermedia.com
    • Contributing Factors •Changing Your Perspective. Strategic considerations • Contact history • Data availability and access • Marketing technology • Channel development • Skills Slides available at www.astech-intermedia.com
    • Slicing the Pie The 3 Mega-SlicesChanging Your Perspective. Former Subs Never Sub Subscribers Slides available at www.astech-intermedia.com
    • Slicing the Pie The 3 Mega-SlicesChanging Your Perspective. Former Subs Never Sub Subscribers Slides available at www.astech-intermedia.com
    • Slicing the Pie SubscribersChanging Your Perspective. 6-12 Months Over 1 Year 1-6 Months < 1 Month Slides available at www.astech-intermedia.com
    • Slicing the Pie SubscribersChanging Your Perspective. 6-12 Months Over 1 Year 1-6 Months < 1 Month Slides available at www.astech-intermedia.com
    • Slicing the Pie Subs: Tenure < One MonthChanging Your Perspective. Easy Pay Office Pay Slides available at www.astech-intermedia.com
    • Slicing the Pie Subs: Tenure < One MonthChanging Your Perspective. Easy Pay Office Pay Slides available at www.astech-intermedia.com
    • Slicing the Pie Subs < Month - Office PayChanging Your Perspective. Door-to-Door Direct Mail SC Inserts Web Telemarketing < Other Slides available at www.astech-intermedia.com
    • Slicing the Pie Subs < Month - Office PayChanging Your Perspective. Door-to-Door Direct Mail SC Inserts Web Telemarketing < Other Slides available at www.astech-intermedia.com
    • Slicing the Pie Subs < 1 Month - Office Pay - Source TMChanging Your Perspective. 1-2 Permanent Stops Three or More Perm Stops No Permanent Stops Slides available at www.astech-intermedia.com
    • Slicing the Pie Subs < 1 Month - Office Pay - Source TMChanging Your Perspective. 1-2 Permanent Stops Three or More Perm Stops No Permanent Stops Slides available at www.astech-intermedia.com
    • Total Market: 100%  Subscribers: 43%Changing Your Perspective.  Active less than one month: 7% Office pay: 60% Telemarketing start: 35% 3 or more permanent stops: 40%  Size of segment relative to total market: 0.25% Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Associating an Action Segment Description:Changing Your Perspective. Active subscribers; tenure less than 30 days; office pay; telemarketing start; three or more permanent stops Action: Offer – Permanent 30% discount if converted to auto debit Channel – Telemarketing Timing – 14 days after start Slides available at www.astech-intermedia.com
    • Associating an Action Segment Description:Changing Your Perspective. Never subscribed; placed private party ad in last 7 days; web user; lives in targeted geo-demographic neighborhood Action: Offer – Free classified ad with weekend subscription Channel – E-mail Timing – 7 days after ad placement Slides available at www.astech-intermedia.com
    • Every Household Belongs to a “Slice”Changing Your Perspective. Seg J Seg A Seg B Seg I Seg H Seg C Seg G Seg F Seg D Seg E Slides available at www.astech-intermedia.com
    • ???Changing Your Perspective. How do I implement and manage customized communications with hundreds of segments simultaneously? Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • Seven Steps to Getting Started 1. Define the ground rulesChanging Your Perspective. 2. Define specific, quantifiable goals 3. Benchmark your capabilities 4. Develop the segmentation framework 5. Associate actions with defined segments 6. Put the right metrics in place 7. Eat the elephant a bite at a time Slides available at www.astech-intermedia.com
    • astech-intermedia.comChanging Your Perspective. Slides available at www.astech-intermedia.com
    • Thank You! Tom Ratkovich |president ter@astech-intermedia.com ASTECH InterMedia, Inc. 999 18th street, # 2240 denver, colorado 80202 www.astech-intermedia.com