Targetnet | Permission Based Info Analysis Process

PERMISSION BASED INFORMATION
Analysis & Reporting Process

Author
Beth Goldman

Date
March 19, 2001

Table of Contents
.........................................................................................................................................................................2
Examples of Permission Based Information......................................................................................................3
Relationship Marketing Process & Consumer Segmentation Analysis.............................................................4
Questions.......................................................................................................................................................4
Goals/Benefits of Relationship Marketing and Consumer Segmentation Analysis........................................4
Relationship Marketing Process....................................................................................................................4
Online Relationship Marketing Process.........................................................................................................5
Identify Target Consumer Groups.................................................................................................................7
Acquisition.....................................................................................................................................................8
Retention.....................................................................................................................................................14
Retention Programs.....................................................................................................................................17
Analysis Requirements................................................................................................................................18

Permission Based Information
Analysis & Reporting Requirements Detailing and Notes 2 of 18

Examples of Permission Based Information

Personally Identifiable
Information (PII) Non-Personally Identifiable Information (Non-PII)
Contact Other Psychographics (the use of demographics to study and
Information Information measure attitudes, values, lifestyles and opinions, for
(Sensitive) marketing purposes)
(Highly
Sensitive) Opt-in Behavioural Demographic
 Name  Credit Card  What (options Usage (own + competitive?)  Age
Number they have
 Title (Mr./  Purchase  Occupation
opted into)
Miss/Ms./  Temporary  Frequency  Family size
Mrs.) Password  Where (they  Quantity
can be  Who  Income
 Address
reached)  Where  Marital
(street,
postal  When  Consumption status
code, etc.) (frequency of (single/mar
 Frequency
contact) ried)
 Internet  Quantity
(email ………………..  Who  Gender
address)  Where  Race
 Which
Attitude
 Phone campaigns they  Location
(home, have seen  Leisure Interests
cellular,  Arts (film, literature,
 Which
work) television, art, etc.)
campaigns they
 Sports
 Fax have
 Travel
(home, responded to
work)  Media Habits
 Television
 Magazines
 Internet
 Radio
 Brand/Product/Company
Perceptions
 Brand/product/company –
specific (i.e. best value,
innovative, best for family,
best tasting, etc.)
 Competitor Perceptions
 Other Company Perceptions
 Buying/shopping Habits
 Food, Clothing, etc.

Information Allows you to send the following Types of Messages…
Contact Personalized
Opt-In Anticipated & Targeted (media)
Psychographic Relevant & Targeted (messaging)


Relationship Marketing Process & Consumer Segmentation Analysis
Questions

 What is the process (are the processes) involved in gathering and analyzing the permission based
information?
 How is the information used? For Online campaigns? For other Sales and Marketing activities?
 What other information is being looked at throughout these processes? And where does it come from?

Goals/Benefits of Relationship Marketing and Consumer Segmentation Analysis

Some of the main benefits of Relationship Marketing and the Consumer Segmentation Analysis that results
from the collection of Permission Based Information are listed below.

Generate Direct Sales through:
 Increased cross-selling/up-selling
 Reduced processing or transaction costs
 Faster cycle times for processing purchases and other transactions (because you already have
information about them)

Increase Brand Awareness
 Drive ‘top of mind’ brand awareness
 Positive brand imagery
 Higher customer satisfaction and other ‘soft’ ratings

Relationship Marketing Process

Peppers and Rogers have detailed the Relationship Marketing Process in The One to One Fieldbook. The
process they outline primarily relates to an offline marketing practices. They suggest that advertisers
concentrate on the most valuable consumers first, segment them based on needs by examining past
transactional patterns, and then interact with them. An overview of the process can be seen below.

Identify Customers

Differentiate Customers
Define value of a customer
Rank customers by this variable
Allocate different strategies to different tiers of customers

Interact with Customers

Customize Solutions
customize aspect of product or service to meet their
individual needs


Online Relationship Marketing Process

The Relationship Marketing Process has been used as a basis to define the Online Relationship Marketing
Process. The Process for a single Program can be seen below and is detailed throughout the document.

Single Program

Identify

Interact

Differentiate
Acquisition

Customize

Interact

Differentiate

Retention

Process Description

Identify
Identify Target Consumer Groups (based on Value)
 Define Value
 Rank Consumers by Value
 Select Value Group(s)
 Detail Value Group(s) (Psychographic Profile)

Interact
Interact with Target Consumers
 Plan and Design Acquisition and Retention Program
 Plan and Design Acquisition Campaign(s)
 Deliver Campaigns
 Track Campaign Information
 Collect Permission Based Information

Differentiate
Differentiate Target Consumers for Current Program
 Cluster Consumers into Target Consumer Groups based on value
 Segment Target Consumer Groups based on needs

Differentiate Target Consumers for Future Programs
 Re-evaluate Value Definition
 Re-evaluate Value Groups
 Modify Value Group Details (Psychographic Profile)

Customize
Customize value exchange ‘offer’ (product, price, promotion and place) based on Needs Segmentation

Interact
Interact with opted-in Target Consumers


Differentiate
Differentiate Target Consumers for Current Program
 Further Segment Target Consumer Groups based on needs

Differentiate Target Consumers for Future Programs
 Re-evaluate Value Definition
 Re-evaluate Value Groups
 Modify Value Group Details (Psychographic Profile)

Multiple Programs
For multiple programs, the differentiation stages (specifically: Differentiate Target Consumers For Future
Programs) will provide input into the identification of target consumer groups, which may impact future
programs. This insight does not, however affect the current program.

Identify

Interact Interact

Differentiate Differentiate
Acquisition

Customize Customize

Interact Interact

Differentiate Differentiate

Retention

Program 1 Program 2


Identify Target Consumer Groups

Target Consumer Groups are identified in order to focus marketing efforts on the most valuable consumers
(typically the most profitable current and potential consumers). The process for identifying these consumers
can be seen below.

Define Valued Consumer
Criteria / Formula

Apply Value Formula to
Rank Current Consumers

Identify Value Groups
(clusters)

Select Target Value Groups

Create Psychographic
Profile for each Value
Group

Process Outputs
 Target Consumer Segment Profiles (profiles of target market groups segmented by value)

Participants and Tasks
 Brand Team (Information Analyst, Brand Manager, Assistant Brand Manager):
 Define value criteria/formula
 Apply Value Formula to Rank Current Consumers
 Identify Value Groups (clusters)
 Select Target Value Groups
 Create Psychographic profile of each Value Group (Agency may also be involved)

Define Valued Consumer Criteria / Formula
A formula is used to develop determine overall rank based on value. This formula is ideally based on current
and potential consumer value, but advertisers may have separate formulas – one for current value and one
for potential value. Ranks can be used to determine segments (i.e. High Value (candidate for relationship
marketing), Medium Value (potential candidate), Low Value (not a candidate).

Apply Value Formula to Rank Current Consumers
The value formula is applied to current consumers (using available resources (i.e. online and/or offline
databases, etc.) in order to rank them based on value.

Identify Value Groups (clusters)
Based on the Value Rankings, Value Groups are identified (i.e. 0-2 = Value Group 1 (low value), 3-5 = Value
Group 2 (medium-low value), 6-8 = Value Group 3 (medium-high value), 9-10 = Value Group 4 (high value)).

Select Target Value Groups
Marketing efforts are most cost-effective when they are focussed on the most Valued Consumers. Target
Value Groups are Value Groups that have been selected are selected for focus through Relationship
Marketing Campaigns (i.e. Value Groups 3 and 4).

Create Psychographic Profile for each Value Group
A Psychographic profile is created for each value group in order to define criteria for targeting campaigns to
the groups.


Acquisition

Acquisition campaigns can be targeted based on validated or invalidated target demographics.

Interact with Target
Consumers

Differentiate Target
Consumers:
Current Program
Future Programs

Other Future Program
Analysis


Interact with Target Consumer Groups

Acquisition & Retention
Program Pre-planning &
Design

Acquisition Campaign Pre-
planning and Design

Acquisition Campaign
Setup

Acquisition & Retention Program Pre-planning & Design

Outputs
 Acquisition & Retention Program Brief

Participants
 Agency with Input from Brand Team

Process
An Acquisition & Retention Brief (or Brand Creative Brief) is prepared in order to plan and design
an Acquisition and Retention Program, Develop Acquisition and Retention Program Brief. The brief
contains the following information:
 Identify Target Value Groups being Targeted
 Objectives and Goals:
 Generate revenue
 Shift consumer perceptions by…x
 Market research objectives
 Etc.
 Information Value Exchanges
 Timelines
 Budget
 Roles and Responsibilities
 Strategy - Campaign Outlines
 Sub-objectives for Acquisition Campaigns
 Basic Outlines for Retention Campaigns (TBD)
 Media


Acquisition Campaign(s) Pre-planning & Design

Outputs
 Completed/implemented creatives (including campaign storyboard)
 Campaign Brief
 Campaign Objectives
 Insertion Orders
 Purchase Orders
 Down payment made to Targetnet.com Inc.
 Other Contracts completed (i.e. privacy, data ownership)

Participants
 Agency (see Project Bermuda – Business Process, Participant Roles and Key Tasks)

Process
Relationship Marketing Campaign-specific:
 Identify Target Value Groups being Targeted
 Identify Criteria/Formula for Clustering Consumers based on Value Group Definitions
 Identify Criteria for filtering based on fixed needs (i.e. medium, timing, other)
 Information to be collected (contact, opt-in, psychographic, etc.)
 Information to be observed (psychographic (behavioural) – click-stream, web-tracking,
shadow profiling)
General:
 See Project Bermuda – Business Process, Participant Roles and Key Tasks

Acquisition Campaign Set-up

Outputs
 Tested, fully functional live campaign
 Publisher Tags

Participants

Process
See Project Bermuda – Business Process, Participant Roles and Key Tasks


Differentiate Target Consumers – Current Program

Segment Consumers based
on Needs

And/or And/or

Filter Consumers based on Psychographic
Pre-determined Criteria Analysis to
Determine Segments
And/or And And/or

Value Criteria (Cluster Filter Target Consumers Filter based on Other Pre-
Consumers into Target based on opt-in for further determined Criteria
Value Groups) dialog (y/n)

Opt-in History Check

Filter based on Specific Filter based on
Media, Timing, Offer, etc. Psychographic Information
Opt-in

Generate list of Consumers
for Targeted Retention
Campaign(s)

Outputs
 Consumers segmented into groups for Retention Campaigns, based on needs

Participants
 Agency Analyst or Brand Team Information Analyst

Segment Consumers Based on Needs
The consumers that respond to acquisition campaigns are segmented in order to deliver retention
campaigns that are targeted and relevant to the audience. Consumers may be segmented purely based
on filtering (i.e. Program including retention campaigns are planned out and segmentation is based on
pre-determined criteria) or based on a combination of filtering based on pre-determined criteria and
through the analysis of psychographic information in order to determine similarities between consumers.

Filter Consumers Based on Pre-determined Criteria

Value Criteria
Consumers are filtered into Target Value Groups based on criteria/formula identified in Campaign
Brief (i.e. Group 1 - consumption = high, Group 2 – consumption = medium, Group 3 –
consumption = low). This filtering may be done in order to develop retention campaigns specific to
each value group and their psychographic profile(s).

Opt-in for Further Dialog (y/n)
A filter is applied (opt-in for further dialog = yes) in order to identify retention candidates. These
candidates are then filtered based on opt-in history in order to determine if they are already being
targeted by other retention program(s) (if they are already being targeted, they will likely not be
targeted by current program).


Filter Based on Other Pre-determined Criteria
 Based on fixed needs criteria identified in Campaign Brief

Opt-in - Specific Media, Timing, Offer, etc.
Acquisition campaigns may include options that can determine the offer, media and timing of
the future retention campaign(s). For example, the consumer may be asked to select which
media they prefer to be contacted by (email, mail, etc.), or which offer (type and
details/feature) they would like to receive (coupon, newsletter, etc.), and/or the timing of the
offer (monthly newsletter vs. weekly newsletter).

Psychographic Information
Any type of Psychographic information can be used to pre-determine consumer segments. For
example, consumers may be asked if they like sports or movies. Retention campaigns may be
pre-designed based on the responses, so that if a consumer specifies that they like sports,
they will receive the ‘sports’ retention campaign and if they specify that they like movies, then
they will receive the ‘movies’ retention campaign.

Psychographic Analysis to Determine Segments
Any type(s) of psychographic information may be compared with any other type(s) of psychographic
information in order to identify trends, similarities, etc. across Consumers. These findings can be used
to detail the psychographic profiles of existing consumer segments, further segment existing consumer
segments, or define new consumer segments.

For example, consumers could be first segmented based on value (i.e. high consumption = high value,
medium consumption = medium value and low consumption = low value) and then further segmented
based on a comparison of the psychographic information for each consumer group. If the other
information collected from the rich media creatives were age and gender, analysis may be done in order
to determine how many consumer fall into each age group by gender. An example of the data can be
seen below:

Total # Consumers who responded: 10000
Filter – Consumption = high (>1/day and 1/day)
Total # Consumers based on filter: 5000

Gender
Age M F
<12 - -
13-18 1500 2000
19-35 500 1000
36-50 - -
>50 - -

Through this analysis, 3 segments can be created – Males, age 13-35 (since there are only 500
Consumers who are 19-35, it makes sense to merge these consumers), Females, age 13-18 and
Females, age 19-35.

Profiles of these segments would then be used to customize the retention campaigns to them. Ideally,
this analysis would be done using collected psychographic information, observed (web-tracking,
shadow-tracking) psychographic information (specifically behavioural information) and other sources of
psychographic information (online, offline, etc.).

Generate List of Consumers for Targeted Retention Campaign(s)
Once consumer segments have been identified, advertisers will generate a list of the consumers within
each unique segment that contains the contact information required for retention.

 Need to detail! How will this information be used?


Notes
 Advertiser may not want to retain all consumers who have opted-in – how these people are dealt
with needs to be considered (would there be any people who do not fit into value clusters)?
 Information from Consumers who have not opted into offer(s) will be continued to be used for
analysis unless they have specified that they do not want to have their information saved
 Ideally, consumers would be able to have multiple value rankings (ability to track value rankings
over time)

Relationship Candidate Determination

Question Information Required
Who Who has opted in for further Opt-in information
dialogue?

Value Determination

Question Information Required
Who Who are my valued consumers? Psychographic Information (valued consumer
definition/criteria used to cluster consumers)

Needs Determination

Question Need Information Required
What What is my valued consumers’ Offer Psychographic information
value exchange ‘offer’ need
(product, price, promotion, and
place)
 For relationship marketing
activities?
 For other CRM activities?
Where Where can my valued consumers Medium (fixed) Opt-in Information (Contact
be reached? Information also required)
When When can I reach them Frequency/Timing Opt-in Information
(frequency, timing)? (fixed)
How How can I best communicate with Message Psychographic information
these consumers (messaging)?

Differentiate Target Consumers – Future Programs

Participants
 Agency Analyst or Brand Team Information Analyst and Market Researcher (only Brand Team
Information Analyst and Market Researcher will be involved in Cross-Program Analysis)

Consumer Value Research/Segmentation
Consumer Information will be used in order to do the following:
 Validate/update Consumer value definition based on psychographic analysis in order to update
Target Consumer Profiles
 Differentiate consumers for future programs (including acquisition and retention campaigns)

Psychographic Profile Validation for each consumer value cluster
Asking the following questions validates the Psychographic Profiles of each consumer value
cluster:
 Did the psychographic information collected match the existing psychographic profiles
(requires questions to determine value and questions to validate psychographic profile)?
 If not, should the profiles be changed?
 Is the hypothesis (based on the psychographic profile) correct (i.e. Does my high value group
like football?)


 If yes, then information is added to psychographic profile. If no, then profile is updated to
reflect this.

Further Needs Segmentation (to build psychographic profiles)
Consumer Segment Psychographic profiles are built through:
 Identifying which products are purchased by the same people (in order to identify Cross-
branding marketing opportunities)
 Identify the most significant characteristics of the consumers who have already adopted
product/brand, etc. (in order to target to non-consumers who meet this criteria/match the
characteristics)
 Creative Performance Analysis (i.e. Which creatives perform best with which consumer
segment (consumer segments as a filter/categorization of consumers for use in campaign
information analysis))?

Other Future Program Analysis

Concept Testing
 Product Testing
 Were the consumers interested in the product? Which consumer segments were interested or
not?
 What were the consumers’ likes and dislikes? Across consumer segments?
 What are the consumers’ claimed purchase patterns? Across consumer segments?
 Creative Testing
 Were the consumers interested in the creative? Which consumer segments were interested or
not?
 What were the consumers’ likes and dislikes? Across consumer segments?
 What are the consumers’ claimed purchase patterns? Across consumer segments?
 Promotion Testing
 Which value triggers work best? Across consumer segments?

Program Performance
Analysis can be done across a single program, or across multiple programs.

Targeting Performance
The performance of the targeting that has been done can be determined through the following
questions:
 Did the campaign reach the desired target consumers (requires questions to determine value)?
 If consumers reached do not match valued consumer criteria, then target consumers were not
reached. Could be an issue with creative(s), media placements and/or psychographic profiles
for value group(s).

Goals/Objectives
Advertisers will want to evaluate performance against the objectives and goals of the Program
based on:
 Creative Performance
 Campaign Performance
 Program Performance
 ROI
 Develop tiered ROI and investment criteria to ensure profitability against different
consumer segments (online and offline).
 Compare performance between targeted and untargeted campaigns (online and
offline), then ROI analysis (response rate and CPC (acquisition cost per consumer))

The performance may cause objectives to be modified for future programs and/or campaigns if they
were seen to be unrealistic.


Retention

Customize Value Exchange
Offer based on Needs
Segmentation

Interact with Opted-in
Target Consumers

Consumers:
Current Program
Future Programs

Analysis

Customize Value Exchange Offer based on Needs Segmentation

Retention Campaign(s) Pre-planning & Design

Outputs
 Completed/implemented creatives (including campaign storyboard)
 Campaign Brief
 Campaign Objectives
 Insertion Orders
 Purchase Orders
 Down payment made to Targetnet.com Inc.
 Other Contracts completed (i.e. privacy, data ownership)

Participants

Process
Relationship Marketing Campaign-specific:
 Identify Retention Campaign Target Consumer Segment being Targeted
 Identify Criteria for filtering based on fixed needs (i.e. medium, timing, other)
 Information to be collected (contact, opt-in, psychographic, etc.)
 Information to be observed (psychographic – click-stream, web-tracking, shadow profiling)
General:
 See Project Bermuda – Business Process, Participant Roles and Key Tasks

Interact with Target Consumer Groups

Retention Campaign Set-up

Outputs
 Tested, fully functional live campaign
 Publisher Tags

Participants

Process
See Project Bermuda – Business Process, Participant Roles and Key Tasks.


Differentiate Target Consumers – Current Program

Segment Consumers based
on Needs

And/or And/or

Filter Consumers based on Psychographic
Pre-determined Criteria Analysis to
Determine Segments
And And/or

Filter Target Consumers Filter based on Other Pre-
based on opt-in for further determined Criteria
dialog (y/n)

Opt-in History Check

Filter based on Specific Filter based on
Media, Timing, Offer, etc. Psychographic Information
Opt-in

Generate list of Consumers
for Targeted Retention
Campaign(s)

Outputs
 Consumers Segmented (further) into groups based on needs

Participants
 Agency Analyst or Brand Team Information Analyst

Segment Consumers Based on Needs
See Acquisition Phase.

Filter Consumers Based on Pre-determined Criteria

Opt-in for Further Dialog (y/n)

Filter Based on Other Pre-determined Criteria

Opt-in - Specific Media, Timing, Offer, etc.

Psychographic Information

Psychographic Analysis to Determine Segments


Generate List of Consumers for Targeted Retention Campaign(s)

Differentiate Target Consumers – Future Programs
See Acquisition Phase, plus…

Consumer Value Research
The following questions are used to determine the value of the retained consumers:
 Are the people that I have retained my valued target consumers (requires actual measures for
value calculation (i.e. observed online behaviour))? Were the targeted consumers the correct
ones, but the campaigns failed to retain them? Were the targeted consumers not the most
valued, but they have become more valued/loyal over time?
 If not, may continue to target to/retain only those who ARE most valued consumers; Or,
may lower expectations (i.e. re-define value criteria/formula)

Other Future Program Analysis
See Acquisition Phase, plus…

Program Performance

Consumer Loyalty/Value
The following questions are used to determine the ability of the program(s) to retain valued
consumers:
 How has consumer loyalty and/or value changed over time?
 Will look at the following over time:
 Consumer satisfaction
 Usage
 Attitude
 Have campaigns/programs been effective in changing consumer perceptions over time?
Across Consumer segments?
 How are my campaigns/programs changing consumer perceptions over time?
 Will consider other market influences as well (i.e. frozen orange juice may have
lowered loyalty due to dirty tap water)
 May do this analysis within standard campaigns/programs, or may use a test group
and send questionnaire (analysis will be done only on test group in this case).


Retention Programs

Once a program is complete, Advertisers will want to target consumers for future retention program(s).
These consumers may be acquired through acquisition campaigns or other methods. For example, an
advertiser’s website could have an opt-in/sign-up page. These consumers could be added to the list of
current consumers, evaluated based on value, and targeted for appropriate retention campaigns.

Process

Consumers:
Current Program

Interact with Target
Consumers

Consumers:
Current Program
Future Programs

Analysis

Notes
 Current Retained Consumers are segmented based on needs in order to continue retention
process


Analysis Requirements

Requirements
 Ability to select Campaigns by:
 Campaign
 Multiple Campaigns within a single Program
 Multiple Campaigns across Multiple Programs
 Program
 Multiple Programs
 Ability to filter data by:
 Campaign Type:
 Acquisition
 Retention (stage 1, 2, etc.?)
 Date:
 Time span
 Reporting Intervals
 Opt-in Information
 Psychographic Information
 Ability to save filters (as template, or as characteristic) in order to re-use
 Ability to apply rankings to groups of consumers (saved filters)
 Ability to generate list of consumers (and ability to specify contact information required) in order to
target retention campaigns to them – specific requirements (i.e. how will this information be used? Auto-
populate other systems?)
 May benchmark responses against other data (competition, etc.) in other systems
 May validate data/insights against other data (to see if it is accurate, etc.)
 Ideally, have ability to validate/benchmark permission based information against observed click-stream/
web tracking behaviour information
 On a person by person basis – privacy issues
 On a group basis (consumer segments) – no privacy issues
 Consumer information may change over time. Advertisers may want to use the system to track
performance of campaigns in terms of increasing retention, purchase and consumption.
 Options for information changes:
 Track (ability to see how information has changed over time (i.e. usage, etc.)
 Replace (i.e. if contact information changes)
 Flag invalid information (i.e. if gender changes, then consumer may not a be a valid research
subject)
 Ability to allow viewers access to change their own information
 Campaign and creative details should be tied to a consumer (i.e. this consumer saw these campaigns,
etc.)
 Ability to link consumer with campaign details (i.e. track coupon redemption (if coupon is sent, what
is the coupon number – and then track who used the coupon))
 Ability to define characteristics and apply them to consumers for reporting purposes

Outstanding Questions
 What (if any) information (behavioural) can be gathered by observing the consumer’s online behaviour
without violating the privacy policy?
 How effective is the information collected through online campaigns if it cannot be merged with
other psychographic, etc. consumer information?


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