This document introduces MarketGEM, a data fusion process that combines internal customer data with external data sources to develop a 360-degree view of customers. It summarizes how MarketGEM can be used to better understand customer segments, identify best customers and potential clones, and uncover new business opportunities through enhanced data analysis and targeted market research. Case studies show how MarketGEM has helped organizations increase sales, reduce churn, and improve marketing effectiveness.

2. Data Fusion The Final Frontier An Introduction to MARKETGEM ™ Michael Collins BA(Hons), DipM, MCIM, FIDM Managing Consultant - Database Marketing Counsel Visiting University Lecturer in Database Marketing & CRM

3. The Classic Strategic Circle RESPONSE TUNE STRATEGY DATABASE COMMUNICATION ANALYSE RESPONSE

4. The New Strategic Circle CONTROLLED RESPONSE INTERPRET, ANALYSE AUTOMATION DATABASE BROAD RANGE OF COMMUNICATION MEDIA UNCONTROLLED RESPONSE, NEW DATA, INTELLIGENCE Demand-led business Corporate asset

5. How do you understand your customers? Behaviour Purchases Responses Queries Complaints Profile Demographics Lifestyle Personal Psychographics Attitudes Aspirations Preferences Retention Acquisition Cloning

6. How Do Customers Segment Themselves? Email Phone Mail Sales Visit SPECTRUM OF RELATIONSHIP I need constant contact I know where you are when I want something

7. Demographics Age Gender Marital status Income Geography Education Occupation

8. Lifestyles Individuals can share a demographic grouping but have a totally different set of interests, pursuits, hobbies, pastimes and enjoyed activities

9. Demographics Lifestyles Demographics & Lifestyles may not be enough

10. Psychographics Preferences Attitudes Purchases Response Attitudes Aspirations Self-view New small car that I can afford Flashy big used car with personalised plate

11. B2B Demographics Sector or industry No. of employees Turnover Geography Years in business

12. B2B Discriminators Type of premises Location Customer base Growth/decline Family business or shareholders Subsidiary or parent Education level of board Age of board Acquisitive or acquirable

13. B2B Psychographics Brand Length of relationship Image Individual needs Personal view Price conception Tradition Referral or Viral marketing “No-one ever got fired for buying…”

14. Psychographics Adding to your database from research Address the customer segments with “golden questions” Research data can be both discrete and general If research is discrete then it can be matched back to the subject This will provide specific qualification criteria for those who respond …. … . and information that can be extrapolated across other similar subjects, to fine tune the profiles

15. Why MarketGEM ™ ? 360 ° VIEW OF THE CONTACTS The WHAT, WHEN, WHO, WHICH & HOW MUCH Customers Prospects Suspects Promotions Complaints Branches Products Campaign Response Source Quotations Referrals Lifetime Expenditure Enquiries

16. Why MarketGEM ™ ? … but you also want to know WHY? … . and who else WILL behave in a similar way … .to build a model that will identify the “nuggets of opportunity” just waiting to benefit your relationship with your customers

17. A Process of data fusion……. The MarketGEM ™ Process

18. Your Systems Data (Customers & Transactions) Start with your own data……. The MarketGEM ™ Process Names Addresses Postcodes Source Campaign history Response History Purchase History Enquiries Complaints Referrals Data acquired

19. Your Systems Data (Members & Transactions) … enhancement & enrichment… The MarketGEM ™ Process External Qualification (Demographics & Classifications) Demographics Lifestyle Product Purchase Magazine Subscriptions Postcode verification

20. Your Systems Data External Qualification (Members & Transactions) (Demographics & Classifications) … enhancement & enrichment… This is the basis for a fast start - maximising available data for business decisions Define your SEGMENTS and determine your “GOLDEN QUESTIONS” The MarketGEM ™ Process

21. The MarketGEM ™ Process Targeted Market Research Your Systems Data External Qualification (Attitudes & Aspirations) (Members & Transactions) (Demographics & Classifications) ..add bespoke research data…

22. The MarketGEM ™ Process Targeted Market Research Your Systems Data External Qualification (Attitudes & Aspirations) (Members & Transactions) (Demographics & Classifications) … a model is built Deliver actionable direction for immediate benefit, stage by stage

23. How does it work? Data appraisal – database and all research Enhance member and transaction information Understand the Business Opportunities Undertake bespoke market research Fuse the outcome by discrete indicators or segment C reate the MarketGEM ™ analysis universe Explore and analyse the data

24. Notional scenario Customer & Prospect Details & Transactions CUSTOMER DATA MARKETING UNIVERSE Orders Sales Campaigns Complaints Data Audit Enhancement INSIGHT Ad hoc analysis Segmentation Customer profiling ROI & Business case for longer term Cross sell / up-sell Research data External data Tools for analysis, reporting, selection and querying

25. Application – consumer markets Merge with Market Basket Analysis Amazon - potentially interesting products Beer and nappies Combinations & sequence

26. Enhanced MBA – Travel Industry Identify the combinations of type of travel and destination and then count the number of times each combination exists for the period Results reveal highest number of combinations Provides direction for cross sell Website or brochure layout Relationship management Add MarketGEM™customer profile data

27. Application - Retailing Clothing store chain From Customer Lists and Sales Records (EPOS) identify purchases from “Sales” and “Mainline” business Simple segmentation of sale and main-line customers Market Research by telephone and incentivised mail Included attitudinal and demographic/lifestyle issues

28. Identifying the best “clones” Identify mainline shoppers Identify shoppers by recency and frequency and future intention to shop main line Create MarketGEM™ model - combine with demographic and lifestyle results - age, marital status, car ownership etc Application - Retailing

29. Application - Retailing Next highest occupation type qualified by future intention and competitor purchase behaviour Age variation identified: 25-45 and 45+ Deductions Infrequent purchasers perhaps saving up for a particular item Younger clones could develop into higher rank prospects as careers progress Older clones remain on the brink between sale and mainline, probably more aspirational than committed Second Rank Clones

30. Application Customers used to identify the demographic and consumer profile that can then be applied to the wider data universe for customer retention Use the profiles and behavioural traits to drive “cloning” for new “best” customers Cloning continues until either attributes become insignificant or insufficient for a viable segment Application - Retailing Outcome Targeted marketing based on the clone contingents generated incremental £1.25m turnover in first quarter

31. Application – B2B International business publisher and event organiser Internal data: Exhibition Visitors (registration data) Stand visit records (badge swipes) Exhibitors Magazine subscribers Magazine advertisers Market Research of exhibition visitors Create a total view of contacts and identify best customers, potential churn and other business opportunities Are the best customers really as the company expects?

32. Application – B2B Company Name Postcode Business Demographics Sector Registration Code Advertising spend Job Function Job Title Turnover Product/Service 1. Business demographics: Enhancement /verification 2. PAF data (UK & Foreign) Address verification & formatting 3. Weather/Travel Info 4. Advertising Monitoring Market share, expenditure comparison 5. Sector performance Adding External Data

33. Why were a whole contingent of visitors attending but never appearing on the stand visit records? Were the highest spending advertisers the best customers? How were the key exhibitors “playing” the system? Application – B2B Examples of Business Opportunities Tiny businesses using show to network with similar businesses. Benefit: Sponsored “small business forum” yielded £25k opportunity Majority of high spending advertisers spent considerably more with competitors, using the client’s titles for recruitment, not brand advertising. Benefit: Sales objectives amended to attack competitor activity Some big names felt that their presence was vital to the event’s success and so were not signing contracts until the last minute or after the event. Benefit: Reducing the business risk through improved business process

34. Address uppermost business imperatives Growth – Effectiveness – Market Share Knowing more about your customers & prospects Protection against churn Product development Improving service Opportunities for cross sell and up sell Why MarketGEM ™ ? … through Data Fusion

35. Why MarketGEM ™ ? Maximised yield from web and brochure layout £25k+ to bottom line, risk reduction & cashflow benefits £1.25m increased turnover

36. Thank You www.marketgem.co.uk Data Fusion The Final Frontier An Introduction to MARKETGEM ™