This document summarizes a panel discussion at the DMA 2011 conference about how three companies - Haband, American Mint, and Reader's Digest - used customer data to improve offers, product lines, and partnerships. The panel discussed how they identified new opportunities by analyzing customer overlap across categories, competitive intelligence, and modeling future scenarios. They determined which insights were actionable by analyzing what new information the data revealed about customer needs and behaviors. This allowed them to identify new opportunities for growth beyond their traditional business models.

1. DMA 2011 9/30/2011
POWERHOUSE PANEL:
Using Data to Improve Offers,
Product Lines, and Partnerships
WHO WE ARE …
• Joe Devanny Vice President, US Database
Marketing/Operations, Readers Digest
• Kevin Sacher President, North America,
American Mint
• Steve Schlumpf, Vice President, Marketing,
Haband, an Orchard Brands Company
• Rob Reger, SVP, Epsilon Targeting
1

2. DMA 2011 9/30/2011
WHAT WILL YOU LEARN?
BEYOND BRAINSTORMING
How Haband, American Mint and Reader’s Digest
sought to boost their ROI on new, customer‐targeted
offers, products and partnerships.
WHAT WILL YOU LEARN?
BEYOND RFM
• How did they determine RELEVANCY?
• How did they determine ANALYSIS TOOLS?
• How did they determine ACTIONABILITY?
• How can YOU employ the same methodology?
3 PROBLEMS TO SOLVE
1. What new, customer‐targeted offers, products and
partnerships should we explore?
2. How do we employ ROI‐driven customer
segmentation practices to get the appropriate offer,
at the right time, with the right product, to the most
receptive customer?
3. Future focus – how do we identify and develop the
best new opportunities for overall business growth
and profitability.
2

3. DMA 2011 9/30/2011
STEP 1: NEEDS ASSESSMENT
Common to all 3 companies
• “We need to expand growth BEYOND our ‘traditional’
and historical business model.”
• Why?
STEP 2: TOOLS EMPLOYED
• CUSTOMER OVERLAP to Categorical Spend. Self‐reported
interests. Let’s get a 360 degree view of our file.
• DATA‐DRIVEN INTELLIGENCE on what their customers
were doing outside of what they saw on their own
customer file.
• COMPETITIVE ANALYSIS – what types of offers,
promotions, creative, channels were being deployed
that their customers were responding to, but they had
not yet offered?
• FORWARD LOOKING – let’s model out a future
“what if” state?
STEP 3: ANALYSIS
What do we now know about our customers
that we did not before? How do we determine
if it is ACTIONABLE?
Sweepstakes Supplements Jewelry
Health Pets Collectibles
Shoes/Hardgoods Fundraising Sweep‐No’s Buying Patterns
Fundraising Publishing Health/Insurance
Younger Audience Focus Coffee Continuity
3

4. DMA 2011 9/30/2011
HABAND CUSTOMER
TOP CATEGORY PENETRATION /SPEND
HOUSEHOLD PENETRATION DOLLAR SPENDING ALLOCATION
%
% Client % Alliance Client % Alliance
HH $$
HH Buying HH Buying INDEX Spent HH $$ Spent INDEX
Haband Female App Mailer ‐ 0 to 24 mo 10.0% N/A N/A
2 Low‐Ticket Female Apparel 90.6% 7.1% 1,285 68 Discount Domestic Merchandise 6.7% 0.9% 751
68 Discount Domestic Merchandise 51.1% 5.0% 1,021 69 Senior Health Hardgoods 2.6% 0.4% 725
43 Low‐Ticket Gifts & Merchandise 47.7% 12.3% 388 2 Low‐Ticket Female Apparel 14.6% 2.2% 666
77 Magazines 30.2% 8.2% 368 15 Low‐ Mid‐Ticket Jewelry 0.5% 0.1% 529
Low‐ Mid‐Ticket Male & Female
8 Apparel 24.4% 3.7% 665 52 Books 2.7% 0.6% 482
69 Senior Health Hardgoods 23.6% 1.4% 1,650 70 Vitamins & Supplements 3.9% 0.9% 426
5 Low‐Ticket Male Apparel 21.2% 4.2% 507 74 Collectibles – Metal 0.5% 0.1% 384
52 Books 20.3% 3.1% 646 53 Music 0.6% 0.2% 334
79 FD Medical Research 19.0% 3.7% 514 1 Large‐Size Female Apparel 4.8% 1.6% 309
1 Large‐Size Female Apparel 16.5% 2.6% 628 76 Men's Supplements 0.1% 0.0% 304
85 B2B Office Supplies/Equipment 15.0% 22.5% 67 67 Collectibles 1.2% 0.4% 303
61 Specialty Foods & Spices 13.3% 3.1% 424 26 Country Home Decor & Gifts 0.7% 0.2% 296
13 Intimate Apparel & Undergarments 12.8% 3.1% 418 5 Low‐Ticket Male Apparel 2.3% 0.9% 265
3 Mid‐Ticket Female Apparel 12.6% 8.2% 153 43 Low‐Ticket Gifts & Merchandise 7.0% 2.7% 261
70 Vitamins & Supplements 11.0% 1.6% 705 77 Magazines 1.7% 0.7% 246
34 Low‐ Mid‐Ticket Beauty & Spa 10.1% 3.3% 303 54 Video 0.6% 0.2% 239
72 FD Misc Non‐Profit/Fundraising 8.6% 1.8% 469 38 Home Organization & Gadgets 0.3% 0.2% 212
67 Collectibles 8.4% 1.5% 554 61 Specialty Foods & Spices 2.2% 1.1% 210
30 Kitchen Accessories & Decor 8.2% 3.7% 222 79 FD Medical Research 1.1% 0.6% 188
80 FD Environmental 8.2% 2.2% 371 48 Seeds, Bulbs, & Live Plants 0.3% 0.2% 177
HABAND CUSTOMER
BOTTOM CATEGORY PENETRATION /SPEND
HOUSEHOLD PENETRATION DOLLAR SPENDING ALLOCATION
%
% Client % Alliance Client % Alliance
HH $$
HH Buying HH Buying INDEX Spent HH $$ Spent INDEX
Haband Female App Mailer ‐ 0 to 24 mo 10.0% N/A N/A
92 B2B Tools & Agriculture 0.5% 0.8% 71 92 B2B Tools & Agriculture 0.2% 1.1% 17
49 Woodworking Supplies 0.5% 0.5% 92 9 High‐Ticket Male & Female Apparel 0.5% 3.0% 16
90 B2B Uniforms 0.4% 0.5% 87 89 B2B Ad Specialty 0.2% 1.3% 16
17 Teen Apparel & Shoes 0.3% 1.3% 23 35 Recreational & Outdoor 0.6% 3.9% 15
83 B2B High Tech 0.3% 0.6% 42 7 High‐Ticket Male Apparel 0.3% 2.1% 15
46 Female Activewear 0.3% 0.9% 29 24 High‐Ticket Home Decor & Gifts 0.2% 1.2% 14
55 Wine & Wine Accessories 0.2% 0.2% 135 17 Teen Apparel & Shoes 0.0% 0.3% 12
84 B2B Commercial/Industry/Safety 0.2% 0.9% 23 88 B2B Cards/Stationery 0.0% 0.2% 11
62 Professional Business Merchandise 0.2% 0.2% 83 4 High‐Ticket Female Apparel 0.3% 3.0% 11
87 B2B Food Gifts 0.2% 0.2% 76 46 Female Activewear 0.0% 0.5% 9
31 High‐Ticket Bed, Bath, & Linens 0.2% 0.3% 57 18 Children's Apparel & Shoes 0.1% 1.4% 9
40 Audio/Visual Electronics 0.1% 0.2% 70 83 B2B High Tech 0.1% 0.9% 7
88 B2B Cards/Stationery 0.1% 0.2% 44 94 B2B HR/Training 0.0% 0.3% 5
94 B2B HR/Training 0.1% 0.5% 15 25 Modern/Contemporary Decor & Gifts 0.2% 4.9% 5
82 B2B Miscellaneous 0.0% 0.1% 24 84 B2B Commercial/Industry/Safety 0.1% 2.0% 3
95 Insurance/Warranty/Finance 0.0% 0.0% 55 82 B2B Miscellaneous 0.0% 0.3% 3
86 B2B Seminars 0.0% 0.5% 4 86 B2B Seminars 0.0% 0.4% 2
AMERICAN MINT CUSTOMER
TOP CATEGORY PENETRATION /SPEND
HOUSEHOLD PENETRATION DOLLAR SPENDING ALLOCATION
%
% Client % Alliance Client % Alliance
HH $$
HH Buying HH Buying INDEX Spent HH $$ Spent INDEX
American Mint LLC ‐ Master All 17.9% N/A N/A
74 Collectibles – Metal 6.3% 0.1% 12,283 74 Collectibles – Metal 1.8% 0.0% 6,447
76 Men's Supplements 4.5% 0.1% 3,357 67 Collectibles 6.9% 0.4% 1,722
95 Insurance/Warranty/Finance 3.3% 0.1% 3,312 76 Men's Supplements 0.7% 0.0% 1,585
67 Collectibles 45.2% 1.5% 2,971 53 Music 1.2% 0.2% 752
53 Music 8.9% 0.5% 1,678 70 Vitamins & Supplements 5.6% 0.9% 638
70 Vitamins & Supplements 17.9% 1.7% 1,058 52 Books 3.4% 0.5% 637
52 Books 29.7% 3.0% 984 15 Low‐ Mid‐Ticket Jewelry 0.5% 0.1% 534
73 Miscellaneous 18.9% 1.9% 982 54 Video 1.1% 0.2% 521
54 Video 8.0% 0.8% 974 78 Newsletters 1.9% 0.4% 480
69 Senior Health Hardgoods 13.6% 1.4% 961 77 Magazines 2.5% 0.7% 366
15 Low‐ Mid‐Ticket Jewelry 3.5% 0.4% 953 73 Miscellaneous 1.8% 0.5% 358
78 Newsletters 12.9% 1.6% 784 68 Discount Domestic Merchandise 2.8% 0.8% 337
51 Stationery 3.6% 0.6% 662 69 Senior Health Hardgoods 1.5% 0.5% 333
72 FD Misc Non‐Profit/Fundraising 12.0% 1.9% 646 43 Low‐Ticket Gifts & Merchandise 9.1% 2.8% 330
16 FD Societal Benefits 10.5% 1.6% 640 60 Fruits & Nuts 0.5% 0.2% 271
68 Discount Domestic Merchandise 30.3% 4.8% 627 97 Magazines ‐ Men's 0.2% 0.1% 269
4

5. DMA 2011 9/30/2011
AMERICAN MINT CUSTOMER
BOTTOM CATEGORY PENETRATION /SPEND
HOUSEHOLD PENETRATION DOLLAR SPENDING ALLOCATION
%
% Client % Alliance Client % Alliance
HH $$
HH Buying HH Buying INDEX Spent HH $$ Spent INDEX
American Mint LLC ‐ Master All 17.9% N/A N/A
24 High‐Ticket Home Decor & Gifts 0.8% 1.3% 64 92 B2B Tools & Agriculture 0.2% 1.2% 20
7 High‐Ticket Male Apparel 1.5% 2.4% 63 24 High‐Ticket Home Decor & Gifts 0.2% 1.2% 19
20 Children's Merchandise‐Ages 0‐6 1.6% 2.5% 63 29 Fine Furnishings 0.3% 1.7% 19
21 Children's Merchandise‐Ages 7+ 1.4% 2.4% 59 21 Children's Merchandise‐Ages 7+ 0.2% 1.0% 18
31 High‐Ticket Bed, Bath, & Linens 0.2% 0.3% 58 91 B2B Furniture 0.1% 0.5% 17
83 B2B High Tech 0.3% 0.6% 55 31 High‐Ticket Bed, Bath, & Linens 0.0% 0.2% 17
29 Fine Furnishings 0.6% 1.1% 55 17 Teen Apparel & Shoes 0.1% 0.4% 13
9 High‐Ticket Male & Female Apparel 2.5% 5.0% 51 9 High‐Ticket Male & Female Apparel 0.4% 3.3% 13
35 Recreational & Outdoor 3.2% 6.7% 48 35 Recreational & Outdoor 0.4% 3.8% 10
84 B2B Commercial/Industry/Safety 0.3% 0.9% 33 88 B2B Cards/Stationery 0.1% 0.9% 10
88 B2B Cards/Stationery 0.5% 1.7% 31 4 High‐Ticket Female Apparel 0.4% 4.0% 10
17 Teen Apparel & Shoes 0.4% 1.4% 31 46 Female Activewear 0.0% 0.5% 9
4 High‐Ticket Female Apparel 1.1% 3.7% 31 18 Children's Apparel & Shoes 0.1% 1.4% 8
46 Female Activewear 0.3% 1.0% 27 83 B2B High Tech 0.1% 0.8% 6
18 Children's Apparel & Shoes 0.8% 2.9% 27 94 B2B HR/Training 0.0% 0.3% 5
94 B2B HR/Training 0.1% 0.5% 23 25 Modern/Contemporary Decor & Gifts 0.2% 5.2% 4
Modern/Contemporary Decor &
25 Gifts 0.8% 3.8% 20 84 B2B Commercial/Industry/Safety 0.1% 2.0% 4
82 B2B Miscellaneous 0.0% 0.1% 12 86 B2B Seminars 0.0% 0.3% 2
86 B2B Seminars 0.0% 0.4% 4 82 B2B Miscellaneous 0.0% 0.2% 1
DON’T FORGET TO LOOK AT…
THE BASICS
Demographic Profile: Client vs. Category vs. Alliance
Choose Run Type: % of Client % of Category Index Client % of Alliance Index Client Client Category Alliance
Households Households to Category Households to Alliance Calc Ave Age Calc Ave Age Calc Ave Age
Age of First Individual
25 & Younger 0.4% 0.8% 49 2.2% 19 0.1 0.2 0.5
26 to 35 2.4% 4.5% 54 12.9% 19 0.7 1.4 3.9
36 to 45 4.6% 8.5% 54 18.8% 24 1.9 3.4 7.6
46 to 55 12.2% 18.5% 66 23.4% 52 6.1 9.3 11.8
56 to 65 19.8% 25.7% 77 20.7% 95 12.0 15.6 12.5
66 to 75 25.3% 23.4% 108 12.4% 204 17.9 16.5 8.7
76 & Older 35.3% 18.5% 191 9.6% 369 27.5 14.4 7.5
Household Income 66.2 60.9 52.7
Less than $20,000 9.6% 6.4% 150 5.7% 167
$20,000 ‐ $29,999 12.8% 8.4% 152 6.9% 186
$30,000 ‐ $39,999 18.7% 14.6% 128 12.8% 147
$40,000 ‐ $49,999 17.8% 16.8% 106 15.7% 113
$50,000 ‐ $74,999 24.2% 27.8% 87 28.3% 85
$75,000 ‐ $99,999 10.0% 14.5% 69 16.0% 63
$100,000 ‐ $124,999 4.4% 7.0% 63 8.5% 51
$125,000 and Greater 2.6% 4.5% 57 6.0% 43
Gender*
Male 78.2% 77.3% 101 42.3% 185
Female 21.8% 22.7% 96 57.7% 38
Home Value
Less than $50,000 3.6% 2.4% 150 2.4% 152
$50,000 ‐ $99,999 25.2% 18.8% 134 16.0% 157
$100,000 ‐ $149,999 26.8% 23.7% 113 21.2% 127
$150,000 ‐ $199,999 15.7% 16.3% 96 15.8% 99
$200,000 ‐ $249,999 9.0% 10.8% 84 11.0% 82
$250,000 ‐ $299,999 5.7% 7.2% 78 7.8% 72
$300,000 ‐ $399,999 6.8% 9.6% 71 10.8% 63
$400,000 ‐ $499,999 3.2% 4.9% 66 5.7% 56
$500,000 and Greater 4.0% 6.3% 64 9.4% 43
DON’T FORGET TO LOOK AT…
THE BASICS
Demographic Profile: Client vs. Category vs. Alliance
Choose Run Type: % of Client % of Category Index Client % of Alliance Index Client Client Category Alliance
Households Households to Category Households to Alliance Calc Ave Age Calc Ave Age Calc Ave Age
Length at Residence
Less than 2 years 9.7% 9.9% 98 16.2% 60
2 to 5 years 21.2% 21.1% 100 26.6% 80
6 to 14 years 31.3% 33.0% 95 33.3% 94
15 plus years 37.8% 36.0% 105 23.9% 158
Marital Status
Married 78.1% 83.2% 94 85.3% 92
Single 21.9% 16.8% 130 14.7% 149
First Individual Occupation
Professional / Technical 5.3% 12.1% 44 20.4% 26
Managerial 7.9% 11.2% 71 12.5% 63
Sales / Service 5.9% 6.8% 88 8.7% 68
White Collar 1.7% 2.9% 57 4.1% 40
Craftsman / Blue Collar 12.8% 15.5% 83 14.3% 90
Student 3.9% 5.6% 70 8.1% 48
Home Maker 34.1% 23.2% 147 18.8% 182
Retired 26.2% 19.9% 131 9.7% 270
Business Owner 2.2% 2.8% 79 3.5% 63
Presence of Children
Known to have Children 25.8% 27.2% 95 25.0% 103
1 Child 67.9% 65.1% 104 57.6% 118
2 Children 17.0% 17.2% 99 18.8% 90
3+ Children 15.1% 17.7% 86 23.6% 64
Age of Children Present
Age 0 ‐ 2 17.4% 18.3% 95 18.9% 92
Age 3 ‐ 5 18.3% 18.1% 101 19.5% 94
Age 6 ‐ 10 22.6% 23.4% 97 26.2% 86
Age 11 ‐ 15 26.3% 25.7% 102 23.1% 114
Age 16 ‐ 17 15.4% 14.5% 107 12.4% 125
Computer Owners
Known to have computer 50.0% 43.0% 116 27.3% 183
Pet Owners
Known to have a dog 29.9% 21.1% 142 10.8% 278
Known to have a cat 23.2% 16.2% 144 7.9% 295
5

6. DMA 2011 9/30/2011
RDA – PROMOTE NEW PRODUCTS TO EXISTING RDA
CUSTOMERS LEVERAGING NON‐RDA PURCHASE ACTIVITY
RDA Customer Group ‐ RANK OF CATEGORY BY FILE
Mag Only Mag Only Age 35‐
BHE BHE Online TL ‐ Ab
Payers < Payers > Sweeps Circle TL ‐ Paid TL ‐ Paid
• The buying behavior of
ABACUS CATEGORIES
TOTAL FILE SIZE (HH)
BHE Nevers BHE Evers
1,901,551
54
2,060,863 15,885,200
12 mo 12 mo
687,500
Players Pro L1Y
11,562,982 1,032,217
13‐24M
453,355 997,170 1,507,146
all RDA‐supplied files was
Men's Supplements 30 1 85 3 1 10 1 3 6 evaluated for a recent
Music 3 3 52 1 3 5 38 2 2
Collectibles ‐ Metal 26 9 69 2 12 6 2 1 1 12‐month period.
FD Societal Benefits 10 5 79 10 4 32 68 5 7
Home Organization & Gadgets
Newsletters
7
11
12
4
44
73
12
7
9
5
14
2
6
17
8
9
8
15
• Top categories were
Books
Magazines
16
2
10
2
56
32
5
4
2
11
4
1
20
41
16
31
16
20
identified as those where
Senior Health Hardgoods 20 7 84 8 6 51 27 10 17 the % of RDA customers
Discount Domestic Merchandise 4 8 64 13 7 15 26 12 12
Stationery 9 6 70 15 8 26 69 17 11 buying is significantly
Video 29 17 22 6 14 12 29 4 3
Vitamins & Supplements 42 11 81 9 10 17 4 30 33 greater than the average
Country Home Décor & Gifts 5 18 27 19 15 18 14 13 9
Health & Wellness 22 14 38 11 13 7 5 19 14 Cooperative household.
Collectibles 18 19 37 14 24 22 21 6 4
Large‐Size Female Apparel 13 28 14 28 25 3 31 11 10 • The top 10 product
Arts & Crafts 6 23 23 18 16 9 53 38 27
Theme Gifts & Merchandise 12 25 41 24 21 24 40 7 5 categories for each file are
Horse Enthusiast & Westernwear 34 43 7 53 44 63 3 49 42
Low‐Ticket Female Apparel 21 15 55 17 18 30 7 20 19 noted in blue, the next 10
Low‐Ticket Home Décor & Gifts 8 22 20 26 23 11 19 15 13
Specialty Foods & Spices 32 26 24 20 26 8 55 40 30 are noted in yellow. Values
Teen Apparel & Shoes
Art Gallery & Museum Merchandise
79
1
82
57
10
62
85
52
80
56
74
72
11
64
69
47
70
54
above indicate ranking of
Children's Apparel & Shoes
Children's Merchandise‐Ages 0‐6
54
52
75
65
2
5
78
69
75
67
62
34
61
47
73
76
68
69
each category by RDA file.
Children's Merchandise‐Ages 7+
Children's Merchandise‐All Ages
23
61
53
70
1
8
66
58
55
69
42
59
24
50
64
70
53
66
The above list is ranked by
Female Activewear 70 79 3 83 78 70 23 74 73 categories most often in top
High‐Ticket Beauty & Spa 80 77 66 60 68 75 8 61 63
High‐Ticket Gifts & Merchandise 76 76 35 54 65 60 10 44 43 10, then top 20 listing
Hunting & Fishing 40 48 4 56 43 45 35 48 34
Low‐ Mid‐Ticket Beauty & Spa 62 46 57 36 48 53 9 52 51
Low‐ Mid‐Ticket Male & Female
41 49 9 59 49 38 57 59 56
Apparel
Sports Merchandise & Apparel 55 63 6 72 58 55 37 65 65
SCOPE OF CATEGORIES FOR EXPANSION
RDA Customer Group ‐ COUNT OF RDA HH's BY CATEGORY
Mag Only Mag BHE BHE Online TL ‐ Ab
Total BHE Only BHE Payers < Payers > Sweeps Circle TL ‐ Paid TL ‐ Paid
ABACUS CATEGORIES Cooperative Nevers Evers Age 35‐54 12 mo
2,060,86 15,885,20
12 mo
11,562,98
Players Pro L1Y 13‐24M • For prospecting
TOTAL FILE SIZE (HH)
Men's Supplements
12 mo HH's 1,901,551
194,094
3
5,116 13,101
0 687,500
16,781 11,859 59,381
2 1,032,217 453,355 997,170 1,507,146
3,753 3,150 7,095 8,139
opportunities, Abacus can
Music
Collectibles ‐ Metal
581,971
176,607
10,606 21,989
6,250 15,047
30,776 15,808
35,732 16,552
92,699
59,818
4,796
5,601
1,229
2,315
12,329
10,909
15,106
14,690
profile RDA buyers with
FD Societal Benefits 349,232 3,807 7,478 13,773 4,731 34,685 1,935 588 3,622 4,469 specific category purchases
Home Organization & Gadgets 1,414,907 45,946 74,468 216,000 39,848 375,693 26,899 10,722 38,826 50,794
Newsletters 1,644,507 65,692 122,727 285,751 83,730 505,535 42,831 12,610 46,586 60,518 on the Cooperative, despite
Books 3,125,632 72,520 126,412 408,629 114,809 683,443 57,683 19,540 57,446 76,951
Magazines 20,450,847 671,233 938,984 3,370,277 445,635 3,818,045 382,630 88,348 291,250 424,930 that this product has not
Senior Health Hardgoods
Discount Domestic Merchandise
2,216,586 64,550 133,443 159,999 79,318 627,410 26,659 13,051 51,217
7,294,764 240,706 399,676 1,046,600 185,651 1,847,991 130,965 43,738 153,026 216,803
64,643
been purchased from RDA.
Stationery 504,132 17,223 35,625 59,618 18,049 150,086 8,173 2,184 11,761 17,713
Video 1,152,627 27,368 39,769 215,906 26,113 211,293 17,958 7,138 26,529 38,724 • For Housefile opportunities,
Vitamins & Supplements 3,339,220 66,915 115,169 429,719 71,975 587,104 47,144 27,986 52,567 73,409
Country Home Décor & Gifts 1,897,694 50,908 75,652 253,567 34,728 343,297 28,874 9,126 30,817 46,774 Abacus can identify which
Health & Wellness
Collectibles
4,716,595
2,248,020
30,112 52,085
46,765 67,044
130,417 29,147 245,358 17,565
313,752 40,303 343,108 29,972 12,187
8,344 25,527
44,099
34,002
64,504
RDA customers are
Large‐Size Female Apparel
Arts & Crafts
3,399,494
1,754,398
94,530 118,556
53,459 63,116
645,360 50,549 677,875 75,506 19,574
361,597 27,101 346,910 33,751 8,649
65,873
27,289
97,282
40,589
shopping across various
Theme Gifts & Merchandise 511,505 15,552 20,573 94,146 9,413 113,985 9,320 3,084 12,949 20,035 product categories with the
Horse Enthusiast & Westernwear 560,263 14,267 14,889 132,857 4,785 85,401 6,470 5,455 9,346 14,161
Low‐Ticket Female Apparel 3,094,477 138,369 220,871 779,109 104,291 1,064,147 71,216 34,339 91,704 128,085 Cooperative L12 mo.
Low‐Ticket Home Décor & Gifts 1,345,879 47,061 60,044 298,855 24,488 319,515 32,031 9,815 32,577 46,132
Specialty Foods & Spices
Teen Apparel & Shoes
4,244,001 106,456 155,647
1,615,379 27,594 18,235
789,612 76,260 811,568 87,439 21,713
411,575 3,707 135,355 16,283 11,642
70,968 105,405
14,591 24,829
• These counts contain
Art Gallery & Museum Merchandise 676,293 28,067 15,330 114,930 5,945 92,248 7,702 3,142 10,707 14,416 overlap between product
Children's Apparel & Shoes 2,299,175 48,103 33,346 586,421 7,964 207,908 25,940 10,427 21,001 35,834
Children's Merchandise‐Ages 0‐6 3,798,614 85,236 63,998 972,897 17,283 379,873 58,904 22,304 36,247 66,912 categories as household
Children's Merchandise‐Ages 7+ 2,398,444 69,167 54,713 776,398 12,812 317,013 35,635 13,236 27,719 49,004
Children's Merchandise‐All Ages 4,141,872 93,798 75,764 1,066,634 23,154 454,410 57,499 25,103 46,287 78,085 purchase across categories.
Female Activewear 1,189,292 20,966 13,993 306,153 3,059 100,831 11,785 9,536 12,085 19,582
High‐Ticket Beauty & Spa 782,160 11,164 9,311 115,978 4,521 73,053 6,872 5,230 9,806 13,399
High‐Ticket Gifts & Merchandise 1,960,604 28,096 23,734 335,302 13,546 184,120 19,604 15,208 31,382 44,451
Hunting & Fishing 6,792,476 147,902 143,684 1,470,200 42,475 900,880 81,844 36,169 88,695 139,434
Low‐ Mid‐Ticket Beauty & Spa 5,624,120 61,405 74,728 535,792 35,513 436,832 39,456 27,100 47,142 68,204
Low‐ Mid‐Ticket Male & Female
4,656,173 123,258 131,491 1,021,517 34,902 746,815 68,895 21,756 67,870 96,865
Apparel
Sports Merchandise & Apparel 1,633,676 32,703 29,117 354,351 8,583 179,636 20,071 7,838 17,506 26,734
READERS DIGEST CONSIDERED NEW PRODUCTS AND
PARTNERSHIPS BASED ON CUSTOMER LIFESTYLES
AND BEHAVIORS
• The RDA file as it exists at Abacus (Magazine and BHE) was compared to ICOM
data to identify the most highly correlated data attributes within our survey and
compiled files.
• Consider known customer behavior to develop new products, partnerships, etc.
– For example, consider partnering to create an insurance offering
• Incorporate above findings into upcoming promotions and creative strategies
Survey or Compiled Data Attribute
Mail Order Responder Insurance Grandchildren (any)
Prime Occ Homemaker Mail Order Plus Size Women's Clothing
Retired Donor/Social Concerns ‐ Political Conservative
Home Improvement Reading: History
Own Burial Insurance Music Preferences: Classical
Veteran in HH Length of Residence > 11 years
Travel Music Preferences: Christian or Gospel
Highest Level of Education HS Collectibles ‐ Plates
Social Concerns: Active Military Donor/Social Concerns ‐ Veterans
Owns Medicare Coverage Hobby Bird Watching
Hobby Bird Feeding Donor/Social Concerns ‐ Other Religious
Collectibles ‐ Stamps
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7. DMA 2011 9/30/2011
READER’S DIGEST EXPLORED A CONVERSION
STRATEGY OF OFFLINE & ONLINE SWEEP NO’S
• The RDA‐supplied files were compared to a small group of Sweep No’s housed within
Abacus.
• Match rates ranged from 10%‐40%, with BHE Payers <12 month’s matching at the
highest rates.
• Just because they haven’t purchased from you yet, doesn’t mean they aren’t actively
buying through Sweeps.
• Customize language to incent Sweep No’s.
• Can you rent other merchants Sweep No files? Will other merchants rent yours?
% Match to
Sweep No's
(non‐RDA,
Analyzed Groups Supplied by RDA File Qty sub‐set) Qty Match
Mag Only BHE Nevers 1,901,551 10% 196,620
Mag Only BHE Evers 2,060,863 21% 423,920
Age 35‐54, all promotable 15,885,200 11% 1,807,736
BHE Payers < 12 mo's 687,500 40% 272,525
BHE Payers > 12 mo's 11,562,982 16% 1,808,450
Online Sweeps Players 1,032,217 22% 222,856
Time Life ‐ Ab Circle Pro Buyers 453,355 15% 70,179
Time Life ‐ Customers paid L1Y 997,170 18% 175,701
Time Life ‐ Customers paid 13‐24 mo (not L1Y) 1,507,146 18% 265,559
SO WHAT HAPPENED?
• What new, customer‐targeted offers, products and
partnerships we’ve explored? What worked and what
didn’t?
• How were ROI‐driven customer segmentation practices
to get the appropriate offer, at the right time, with the
right product, to the most receptive customer employed?
Were they better than “brainstorm and test”?
• Future focus – how did each company identify and
develop the best new opportunities for overall business
growth and profitability?
HOW CAN YOU EMPLOY THIS
METHODOLOGY TO USE DATA TO
IMPROVE OFFERS, PRODUCT LINES,
AND PARTNERSHIPS?
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8. DMA 2011 9/30/2011
QUESTIONS?
THANK YOU
FOR YOUR ATTENDANCE!
Joe Devanny, Reader’s Digest
Steve Schlumpf, Haband
Kevin Sacher, American Mint
Rob Reger, Epsilon Targeting
All will be available for additional questions following this presentation.
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