Gary Seitz, VP Ctrac Direct, Spoke at National Postal Forum (#NPF2018). His topic covered Putting the Data Into Data Driven Marketing. Gary helped mailers learn how data can be used in modern ways to better segment and map customer journeys.

1. S A N A N T O N I O / 2 0 1 8
S A N A N T O N I O
2 0 1 8
PUTTING THE DATA INTO
DATA-DRIVEN DIRECT MAIL
Gary A Seitz, Vice President
CTRAC Direct, a Midwest Direct company
Sunday May 6, 2018

2. S A N A N T O N I O / 2 0 1 8
I’m Gary Seitz........and I LOVE data

3. S A N A N T O N I O / 2 0 1 8
“Over the dozen years I’ve been
reviewing books, I cannot recall
ever covering a book that I believe
should be read by all well-
informed Americans. I have
finally found such a book. This
should be required reading for all
of us who care about how the
United States came be a great
nation. Read this book.
~ Vick Mickunas, Book Nook

4. S A N A N T O N I O / 2 0 1 8
A recent study on Data found…
Data, by nature, is static. On its own, data does not
change; although, if used properly, data can create
change. It can be used to predict outcomes, identify
trends, target markets and drive personalization.

5. S A N A N T O N I O / 2 0 1 8
START WITH DATA QUALITY
• Getting in front on quality
data presents opportunities
to improve marketing
decisions
• High quality data is critical
in making decisions
• Equally important in using
and obtaining data

6. S A N A N T O N I O / 2 0 1 8
A Data Quality process:
• Ensures complete, correct and
current data
• Eliminates duplicates
• Supplements data enrichment
• The success of Data Driven
Marketing starts with Data Quality
• If you need help, check out the
data quality sessions this week
START WITH DATA QUALITY

7. S A N A N T O N I O / 2 0 1 8
WHY DATA DRIVEN MARKETING?
• Decreased customer
acquisition costs
• Increased marketing ROI
• Better insights to customers
• Higher response rates
• Personalized customer
engagement

8. SO ~ WHERE DO WE GET
DATA TO DRIVE DIRECT
MAIL?
First Party Data:
Customer Transactions
Second Party Data:
Someone Else’s Customer
Data
Third Party Data:
Compiled for Marketers
Append it
Ask for it

9. S A N A N T O N I O / 2 0 1 8
CUSTOMER DATA
Lead with Customer Data
• Loyal customers shop more
frequently
• They spend more money
• They know who you are
• They refer business
Leverage your customer data first

10. S A N A N T O N I O / 2 0 1 8
1
Analyze Your Data
to Identify Your
Best Customers
2
Create a Profile
that Examines
Them
Demographically
3
Utilize the
Intelligence to
Customize Your
Prospecting
CUSTOMER DATA
Leverage the data in 3 steps

11. S A N A N T O N I O / 2 0 1 8
USING SALES TRANSACTIONS
• How long since the
last transaction
• Total Lifetime Transactions
• Value of those transactions
Frequency
Recency
Monetary
RFM

12. S A N A N T O N I O / 2 0 1 8
RFM SEGMENTATION
• Past behavior is best
predictor of future
• Segmentation is a way to
distinguish between best
and worst customers
• RFM is quick, descriptive
way to segment a database
• Can be created in Excel

13. S A N A N T O N I O / 2 0 1 8
RFM SEGMENTATION
Recency R CODE Customers
0 - 6 months A 35,457
7 - 12 months B 29,472
13 - 24 months C 21,947
25 - 36 months D 19,822
37 - 48 months E 15,773
49_ months F 37,990
TOTAL 160,461
RECENCY
• Most powerful predictor of
who is likely to buy
• Time since last transaction
• 6 or 7 ranges (A-F)

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RFM SEGMENTATION
FREQUENCY
• Second best predictor
• Lifetime transactions (not units)
• 3 or 4 values

15. S A N A N T O N I O / 2 0 1 8
RFM SEGMENTATION
Monetary M CODE Customers
$5,000+ A 19,847
$2,500 - $4,999 B 25,877
$1,000 - $2,499 C 42,415
$ 500 - $ 999 D 33,516
$ 100 - $ 499 E 21,884
<$100 F 16,922
TOTAL 160,461
MONETARY
• Least powerful
• Sum of all revenue
• Avoid mailing to low value
customers
• 6 or 7 ranges

16. RFM SEGMENTATION
FrequencyRecency Monetary

17. S A N A N T O N I O / 2 0 1 8
Larry Smith A1C Last 6 mos, first time, $100 - $250
Curly Jones C3A 13 – 24 mos, 3 times, $500+
Moe Johnson F2D Over 4 years, 2 times, $50 - $100
RFM SEGMENTATION

18. S A N A N T O N I O / 2 0 1 8
GENDER SEGMENTATION
• A DYI center sought to increase response
rates and strengthen it’s position
• Focus on spring gardening “The Garden
of Eden – Easy for everyone”
• Gender specific direct mailing to
customers targeting women and men
differently as “Eve and Adam in their own
garden paradise”
• 10% off coupon
• Reminder email and “thank you”
• Response rate of 29% doubled previous
year responses

19. B2B GIFT BASKET
• Printed 1 fall catalog/yr
• Budget for 50,000
catalogs
• 85,000+ customers
Which 45,000 customers to
mail, and how to find 5,000
new prospects?
Applied RFM to database
using 5 yrs of sales history
Optimal RFM codes
Appended SIC and
employee size to buyers
for prospect list
RECENCY MAILED ORDERS PCT SALES AVG
A 20xx 16,912 1,650 9.8% $107,170 $65
B 20xx 16,501 1,390 8.4% $78,883 $57
C 20xx 12,154 476 3.9% $23,701 $50
D 20xx 207 2 1.0% $65 $33
E 20xx 107 1 0.9% $22 $22
TOTAL R 45,881 3,519 7.7% $209,841 $60
FREQ MAILED ORDERS PCT SALES AVG
1 ORDER 32,922 1,445 4.4% $78,142 $54
2 ORDERS 6,600 706 10.7% $40,742 $58
3 ORDERS 2,722 462 17.0% $29,853 $65
4 ORDERS 1,538 326 21.2% $20,092 $62
5+ ORDERS 2,099 580 27.6% $41,012 $71
TOTAL F 45,881 3,519 7.7% $209,841 $60
MONETARY MAILED ORDERS PCT SALES AVG
A $500+ 489 162 33.1% $20,537 $127
B $250 - $499 1,500 400 26.7% $32,216 $81
C $100 - $249 6,219 984 15.8% $66,654 $68
D $ 50 $ 99 9,948 854 8.6% $44,532 $52
E $ 25 - $49 19,604 912 4.7% $39,724 $44
F $ 1 - $24 8,121 207 2.5% $6,178 $30
TOTAL M 45,881 3,519 7.7% $209,841 $60

20. NON-PROFIT CHARITABLE
ANNUAL CAMPAIGN
75,000 donors over 10 years
Which 50,000 customers to mail,
and how to find new prospects?
Applied RFM using 10 yrs of
donations
Frequency = # of lifetime gifts
Optimal RFM segments
Appended age to Donor file
Identified “charitable donors”
age ranges for rented list
AGE COUNT PCT
20-29 563 1%
30-39 3,767 9%
40-49 8,148 20%
50-59 10,049 24%
60-69 9,115 22%
70-79 5,080 12%
80+ 4,547 11%
TOTAL 41,269 100%

21. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN MARKETING
Beyond RFM, drilling
deeper into sales
transactions yields
valuable insight for
Data Driven Direct
Mail marketing

22. B2B SERVICES
• FIRST AID
• SAFETY PRODUCT
• TRAINING
• EMERGENCY
Objective: Determine cross-
sell and up-sell opportunities
for Direct Mail campaign

23. DATA DRIVEN MARKETING
• 23% purchase 1 service, 66% purchase
from 2
• Identified and marketed Customers with
1 or 2 services: Targeted “Next” Service
SERVICE LINES
• Product matrix (combinations)
• Identified and marketed Customers by
“Next” Product
PRODUCTS
• Top Items & Customers by Season
• Summer: Electrolytes
Winter: Training
SEASONALITY

24. DATA DRIVEN MARKETING
APPENDING THIRD PARTY DATA
Customer data brings insight
to behavior – what, when,
how often, and how much.
Appending external data
helps complete the picture.
Who your customer is,
where they are and how to
find more of them
Over 1,000 demographics
are available to append

25. DATA APPENDS => LIST SELECTIONS
DEMOGRAPHICS
Age
Income
Presence of children
Education
Occupation
Length of Residence
LIFESTYLE
Boat/RV
Reading
Health & Beauty
Home Decor
Pet Owners
Sports
PHILANTHROPIC
Donors to:
Environmental
Health
Political
Religious
Arts

26. DATA APPENDS => LIST SELECTIONS
FINANCIAL
Income
Net Worth
Discretionary spend
Investments/
Funds, Stocks,
Bonds
Mortgage/Home
PROPERTY
Home Value
Pre- & New Movers
Square footage
Purchase &
Mortgage data
Length of residence
*Mapping/distance
OTHER
Seniors
Ailments & Medical
conditions
Hearing & Vision
Doctor, Dentist,
Nursing, Pharmacist

27. FIRMOGRAPHICS
• SIC or NAICS industry
• Employee size
• Sales volume
• Location type
• Top contact name
• Ownership
demographics
• Square footage
• Telephone #

28. METROPOLITAN ZOO
• Developing a new membership
campaign
• Who are our current members?
• Appended Household demographics
Families with young children within 35-miles
Grandparents within 20-milesYoung married couples within 10-miles

29. Used same demographic
selects for list rentals for all
locations
Appended demographics to
understand: who is the
customer and how do we
better prospect?
Retail business with 50
retail locations, 5 in
Chicago

30. The “average” customer is
similar in the 2 locations
northwest of Chicago
The customer southwest is
younger by 10 years
The customer north is of
similar age, but with a
higher income
The customer downtown is
much different
37-yo male
Single
$75-$100k
No child
53-yo female
Married
$100-$125k
0-1 child
47-yo female
Married
$200-$250k
1+ child
55-yo female
Married
$75-$100k
0-1 child
45-yo female
Married
$100-$125k
1+ child

31. PRO SPORTS TEAMS
Append consumer &
business firmographics
to partial & full season
ticket and suite
holders.
Mapped each group to
determine geographic
reach ~ 75-miles
Rented matching target
lists for direct mail &
tele-marketing efforts

32. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN MARKETING
APPENDING SECOND PARTY DATA
Transaction level
competitive spend
Online marketing
intelligence
Data from 800+
companies in 60+
categories available to
append

33. DATA DRIVEN MARKETING
APPENDING SECOND PARTY DATA
Appending external
data helps you better
understand who your
customer is, and how
to find more of them
Most Mail Service
providers can help
you find and use the
right Demographics

34. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN MARKETING
PROFILE REPORTS
PROFILE REPORTS
also help you better
understand who your
customer is, and how
to find more of them

35. Demographic or
Firmographic data is
matched to your file
and summarized
Less expensive than
data appending
Matching targeted lists
can then be acquired

36. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN MARKETING
SWEEPS & SURVEYS
Ask for data
Warranty cards,
Sweepstakes and
Surveys are a good
source for information
about customers

37. FINANCIAL INSTITUTION
• Wanted to expand business
accounts
• No process in place to find
good new prospects
Mailed a survey to rented list of
20 businesses a month within
radius of each branch
Included a cash “incentive” to
complete and return the survey
Surveys compiled and
provided to branch
managers as “warm leads”

38. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN SURVEYS
A package of dental samples
was sent to Orthodontist
offices across the US and
Canada
But they forgot to ask: Who are you?

39. S A N A N T O N I O / 2 0 1 8
TIPS ABOUT SURVEYS & SWEEPS
• Keep them short
• 3 or 4 times a year
• Make an offer
• Filter the data
• Set a fixed date
• CLEANSE the data
• Psst ~ don’t forget to ask who they are

40. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN MARKETING
BIG DATA
Huge amounts of new
data coming at us from
Email content, Social
media, pictures and
video files
Unstructured and
variable formats

41. S A N A N T O N I O / 2 0 1 8
BIG DATA
• More than the SIZE
VELOCITY and VARIETY
• Value vs. Risks
• Some marketers need a new
strategy for BIG data
• Need to generate, understand
and leverage all of this new data
“Era of college students entering marketing to avoid math are gone”

42. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN DIRECT MAIL
It’s okay to start “Small”
• It’s still relevant
• Use what you have, then add to it
• Make bigger data out of small data

43. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN DIRECT MAIL
Now what? (hint: the take aways)
• Use your customer data for Segmentation and communication
• Harvest the data information to understand your customers in
order to target more of them
• Use Direct Mail for Personalization to trigger unique and tailored
messages to your customers and prospects
• Use external information to fill “data holes” to better service and
understand your customers

44. S A N A N T O N I O / 2 0 1 8
DATA DRIVEN DIRECT MAIL
“Direct Mail is still the most
trusted media among
consumers even as consumers
report they are receiving more
email. Using proper data makes
it more relevant than ever”
- Epsilon Channel Preference Study

45. S A N A N T O N I O / 2 0 1 8
Gary A Seitz
GSeitz@ctracdirect.com
216.251.2500 X4985