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Green acres and milk and cookies understanding your community through market segmentation

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What don't you know about your library's customers? Surveys and focus groups just scratch the surface. Staying relevant today means meeting customers where they are and developing the right services …

What don't you know about your library's customers? Surveys and focus groups just scratch the surface. Staying relevant today means meeting customers where they are and developing the right services for them. This program will show how market segmentation data combined with your ILS patron data and geographic information system (GIS) technology will leverage your resources; enable collaboration among libraries; guide strategic, service and facilities planning; and change the way you interact with your community.

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  • 1. Green Acres and Milk & Cookies: Understanding your Community through Market Segmentation
  • 2. Introduction Presented by Marc Futterman President/CEO, CIVICTechnologies
  • 3. Agenda
    • Introduction
      • Marc Futterman , President/CEO, CIVICTechnologies (PLA Sponsor)
    • Washington County Family Portrait
      • Eva Calcagno , Cooperative Manager, Washington County Cooperative Library Services
    • Green Acres is the Place to Be
      • Gina Millsap , Executive Director, Topeka & Shawnee County Public Library
    • Discussion/Questions & Answers
    Introduction
  • 4. Panelists
    • Marc Futterman (moderator)
    • President and CEO, CIVICTechnologies
    • Marc co-founded CIVICTechnologies in 2001 to assist organizations use information technologies to make better informed decisions to improve the quality of urban life. Marc’s award-winning work to bring market segmentation to public libraries, small business patrons, and students is benefiting communities nationwide.
    • Eva Calcagno
    • Cooperative Manager, Washington County Cooperative Library Services
    • Eva manages a federation of libraries encompassing the county, nine cities and two non-profit organizations that work together to provide public library services to the 500,000+ residents of Oregon’s second largest county. With 25 years of library experience, at WCCLS ‘Cooperative’ is the middle name. She holds an MLS from the University of Washington, and has experience in public, academic and special libraries.
    • Gina Millsap
    • Executive Director, Topeka & Shawnee County Public Library
    • Gina leads an organization of 230 incredible employees serving a library-loving community. She’s worked in libraries for 30+ years and received her MLS in the previous century. Her degree may be an antique, but her outlook isn’t.  She’s a Library Journal 2007 Mover and Shaker and president of the Library Leadership & Management Association (LLAMA) of the American Library Association.
    Introduction
  • 5. "I know that half my advertising works, I just don't know which half."
    • … John Wanamaker
    • Supply-based approach
    • Demand or market-based approach
    • Understanding what customers and prospective customers need and want
    • Market segmentation is key to achieving success:
      • Find new customers
      • Retain current customers
      • Locate a business, outlet, bookmobile stop, etc.
    Introduction
  • 6. Today we’ll explore:
    • What don't you know about your library's customers?
    • Surveys and focus groups just scratch the surface.
    • Staying relevant today means meeting customers where they are and developing the right services for them.
    • How market segmentation data combined with your ILS patron data and geographic information system (GIS) technology will leverage your resources
    Introduction
  • 7. Benefits and learning objectives
    • At the end of this program, you will:
    • See how market segmentation can be used in conjunction with the PLA Service Responses to deliver demand-driven programs, services and collections.
    • Understand the Tapestry Market Segmentation system and how to apply it to their community.
    • See how GIS tools and market segmentation can focus library resources to serve the unserved and underserved.
    Introduction
  • 8. Introduction
  • 9. What is and why use market segmentation?
    • Organizations use market segmentation to:
      • Gain insights into their customers
      • Use that knowledge to grow
      • Position their organization's strategy and decision-making to be customer-centric
    Introduction
  • 10. Here’s a simple but real example of market segmentation
    • Discern the difference between how customers appear vs. how they act
    Introduction
  • 11. A segmentation system needs to:
    • Be robust to reveal customer differences
    • Be stable so it is reliable and predictive
    • Paint a picture of the customer that informs organizational level decisions
    • Enable an organization to manage a diverse and growing portfolio of customers
    Introduction
  • 12. How can public libraries use market segmentation?
    • Customer service
      • Small businesses
      • Entrepreneurs
      • Non-profit patrons
    • By the library itself
      • Enable collaboration among libraries
      • Guide strategic, service and facilities planning
      • Change the way you interact with your community
    Introduction
  • 13. Libraries for whom detailed market segmentation have been prepared Introduction
  • 14. What makes for a good market segmentation system? Introduction Source: IBM Institute for Value Analysis Time Values Characteristics
    • Multi-dimensional (scales up)
    • Who are they?
    • What do they look like?
    • What do they need?
    • How do they act?
    • What do they buy?
    • When do they need it?
    • Why do they want it?
    • ROI, profitability
    • Mind share/wallet share
    • Consuming/buying phases
    • Amount spent
    • Cost to serve/sales
    Measures
    • Customer lifecycle view
    • Recency and frequency of use
    • Customer lifestage
    • Channel selection
  • 15. What market segmentation systems are available?
    • ESRI’s Tapestry™ Segmentation
    • Claritas Nielsen’s PRIZM ® NE
    • Experian’s MOSAIC ®
    • Specialty systems
      • Industry-based (e.g., health care)
      • Corporate/proprietary
    Introduction
  • 16. Why is segmentation catching on with libraries just now?
    • Previously, the cost and level of expertise needed to employ it was beyond reach
    • Together, libraries and CIVICTechnologies have changed this equation
    • Know who customers are before how we respond to them
    • Tapestry is the segmentation system of choice
      • Robust: characteristics, measures, and time values
      • Seamlessly scales up to “LifeMode Groups”
      • Easy to use
      • No additional expertise or knowledge
      • Web-accessible
      • Affordable across a range of library sizes and types
    Introduction
  • 17. What is Eva Calcagno going to talk about?
    • Eva is the Cooperative Manager at WCCLS
    • She’s here to discuss how market segmentation:
      • Helps us know all of our residents, not just the frequent users
      • It helps us communicate with residents and serve them more effectively
    Introduction
  • 18. Washington County Family Portrait Presented by Eva Calcagno, Cooperative Manager, Washington County Cooperative Library Services
  • 19. Connecting people, books and resources
    • Washington County:
      • 2 nd largest in Oregon, 520,000+ residents
      • West of Portland, Multnomah County
      • Majority of population on eastern edge
      • Traditionally considered suburban “bedroom” communities
      • Agricultural heritage, high-tech future
      • Economic Engine of Oregon
    Washington County Family Portrait
  • 20. Cooperative is our middle name
    • Washington County Cooperative Library Services
      • Federation of the County
      • Nine cities and 2 non-profits
      • Provide public library service to residents
    • The County’s role
      • Provide majority of operational funding, member support services, special populations outreach
    • Includes planning, data analysis, and communications
    Washington County Family Portrait
  • 21. What were our goals?
    • Ability to make planning decisions based on data for ALL residents, not just frequent users
    • Begin to move beyond needs of individual libraries to needs of shared, similar populations
    • Think our patrons, not my patrons
    • Combine market segmentation with voter polling data to shape future ballot measure messages
    Washington County Family Portrait
  • 22. What did we learn?
    • One size doesn’t fit all
    • We were doing a better job of reaching some segments than others
    • We had room for improvement in “family” segments
    Washington County Family Portrait
  • 23. Market segmentation in action
    • Annual Newsletter mailing to every household (215,000)
    • Retooled to target key LifeMode Groups
    • Cover photos and article messages customized
      • Family
      • Other
      • Spanish
    • Used ZIP Code & carrier route overlays to ID which version to mail where
    Washington County Family Portrait
  • 24. Washington County Family Portrait
  • 25. Family version: 123,000 households
    • American Quilt
    • Factories and Farms
    • Family Portrait
    • Global Roots
    • High Hopes
    • Traditional Living
    Washington County Family Portrait
  • 26. “ Other” version: 92,000 households
    • High Society
    • Metropolis
    • Senior Styles
    • Solo Acts
    • Upscale Avenues
    Washington County Family Portrait
  • 27. Spanish version
    • Not mailed
      • English versions mailed note that the Spanish version is available upon request
    • 5,300 distributed through libraries, community outreach partner organizations, and on website
    Washington County Family Portrait
  • 28. Beaverton City Library identified a branch location
    • Geographic data confirmed need for a branch
    • City found lease space in an established mall
    Washington County Family Portrait
  • 29. Local library programming: West Slope Adult Program
    • High Society
      • “ Affluent and active – financially, civically, and physically”
    • Digital Camera workshops: waiting lists
    • Winter Reading Program, Crochet & Knitting Nights
    • Maybe estate planning?
    Washington County Family Portrait
  • 30. Green Acres is the Place to Be Presented by Gina Millsap, Executive Director, Topeka & Shawnee County Public Library
  • 31. OUR CUSTOMERS DEMAND GREAT SERVICE! Topeka & Shawnee County Public Library Green Acres is the Place to Be
  • 32. Green Acres is the Place to Be
  • 33.  
  • 34.
    • Library service is really all
    • about connecting with people and
    • building relationships built
    • on real knowledge about
    • each other. And the
    • data that drives that is
    • market segmentation.
    • – Gina Millsap
    “ “ Green Acres is the Place to Be
  • 35. The Next Decade Plan
    • No focus groups or community surveys
    • Traditional tools don’t tell us:
      • Who our customers are
      • What is important to them
      • How to build relationships:
        • Convert non-users into customers
        • Increase the satisfaction of current customers
    • The right stuff
    • GIS-based market segmentation provides:
      • Demographic, socioeconomic and residential information linked to where people live
      • Interests, buying habits and leisure time activities
      • Strategies for communicating with specific audiences
    Green Acres is the Place to Be
  • 36. Perception v. Reality We thought: people who live in east Topeka are generally underserved and are not big library users. We learned: 77% of the segment “Inner City Tenants” are Library customers and have the 5th highest check out per customer. Green Acres is the Place to Be
  • 37. Perception v. Reality We thought: customers living farthest from the Library use the mailing service the most. We learned: distance is not a good predictor for how certain services are used. Green Acres is the Place to Be
  • 38. Perception v. Reality We thought: people in rural Shawnee County prefer films over books. We learned: they check out more books than films. Green Acres is the Place to Be
  • 39. June 2008 community planning workshop: show them the data
    • 100 community representatives explored five topics using the Tapestry data
    Green Acres is the Place to Be
  • 40. Green Acres is the Place to Be
  • 41. 30 market segments are present in Shawnee County Green Acres is the Place to Be
  • 42. Our top ten segments (by household) Green Acres is the Place to Be
  • 43. Green Acres: These are my neighbors! Green Acres is the Place to Be
  • 44. Green Acres: THE BASIC STUFF
    • Characteristics
      • 23,999 people comprise 13% of the population
      • 70% are married with & without children
      • Most are blue collar boomers with children ages 6 – 17
      • Median age is 39
      • 90% are white
    • Library Stats
      • 9,409 have library cards (39% of them)
        • They are 10.7% of library customers
        • They circulate 10.5% of items (12,428 items per year)
    We know we have to do better. With only 1 building serving 528 square miles, equitable access is a BIG issue. Green Acres is the Place to Be
  • 45. Green Acres: THE GOOD STUFF
    • Socioeconomic
      • College educated & hard working
      • 70% employed in skilled labor, farming, manufacturing, construction
      • 12%+ earn income from self employment
    • Residential
      • A little bit country…these are rural residents
      • Own single family homes with some mobile homes
      • Own 2 or more vehicles…mostly domestic SUV’s, trucks, and garden tractors
    Green Acres is the Place to Be
  • 46. Green Acres: THE REALLY GOOD STUFF…these are my neighbors!
    • Preferences
      • Home improvements: do-it-yourselfers
      • Gardening: vegetables
      • Hobbies: hiking, backpacking, hunting, motorcycles
      • Read: fishing, hunting & boating magazines
      • Watch: HGTV, ESPN and Speed channels on satellite dish
      • Listen: news-talk radio
      • Computers: own & use them, probably purchased by catalog
      • Shop online: clothes, videos, CD’s, educational software
    Green Acres is the Place to Be
  • 47. Green Acres: Open Market Potential
    • The darker the color the greater the potential for developing new patrons in this segment
    Green Acres is the Place to Be
  • 48. Green Acres: The challenges
    • Distance from the library: 20+ miles
    • Only one bookmobile stop per week
    • Presence of volunteer-run community library demonstrates demand for more library service
    • Limited broadband: dial–up, air cards, and microwave also used
    Green Acres is the Place to Be
  • 49. How Green Acres uses the Library: Collections Green Acres is the Place to Be
  • 50. How Green Acres uses the Library: Bookmobile
    • The darker the color the higher the percentage of bookmobile checkouts
    Green Acres is the Place to Be
  • 51. How Green Acres uses the Library: Adventuremobile
    • The darker the color the higher the percentage of checkouts
    Green Acres is the Place to Be
  • 52. Connecting with Green Acres: The Green Acres Marketing Plan
    • Identify services, collections, and programs that match their interest
      • Lawn & garden neighborhood •vehicle repair manuals • hunting & fishing • do-it-yourself
    • Partnerships
      • Local Harley-Davidson • Lowe’s • Home Depot • Dick’s Sporting Goods
    • Television advertising
      • ESPN • HDTV • Speed Channel
    • Online and Mobile Devices
      • Digital branch •Chilton’s Auto Repair • e-newsletters
    • Convenience
      • Books by mail • Bookmobile stops • remote book returns
    Green Acres is the Place to Be
  • 53. Connecting with all 30 segments throughout the county Green Acres is the Place to Be
  • 54. Creating new users: The science of change
    • Everybody’s doing it!
    • The nudge factor
    • The need to know
    • It’s gotta be easy
    Green Acres is the Place to Be
  • 55. Summing it up Presented by Marc Futterman
  • 56. Primary messages
    • Eva
      • Market segmentation helps us know all our residents, not just frequent users
      • It helps us communicate with residents and serve them more effectively
    • Gina
      • Library service is really all about connecting with people and building relationships built on real knowledge about each other. And the data that drives that is market segmentation.
    • Marc
      • Segmentation is affordable and can’t afford to be ignored
      • Taking a “demand-based” instead of a “supply-based” approach
    Conclusion
  • 57. Questions & Answers © 2009 CIVICTechnologies. Marc Futterman Gina Millsap Eva Calcagno
  • 58. Thank you! Talk more!
    • For more information see our article “Finding the Underserved” in LJ:
    • http://www.libraryjournal.com/article/CA6602835.html
    • Gina Millsap
      • Topeka & Shawnee County Public Library
      • 785-580-4480
      • [email_address]
    • Eva Calcago
      • Washington County Cooperative Library Services
      • 503-846-3233
      • [email_address]
    • MarcFutterman
      • CIVICTechnologies
      • 888-606-7600
      • [email_address]

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