Agenda Campaign tracking and analysis Database marketing ResponDex Marketing, Inc. All Rights Reserved 2002 Campaign Tracking & Analysis ResponDex provides marketing campaign analysis tools designed to help improve performance by answering important questions such as: •Which strategies are performing best? (creative, offer, package) •What tactics are the most effective? (DM, DRTV, Print, etc.) •How do different segments respond? (basic only, premium, etc.) ResponDex Marketing, Inc. All Rights Reserved 2002 How It Works ResponDex systems interface with multiple data sources such as the toll-free network, internal billing systems, solicitation files and third-party demographic data sources to record campaign activity, analyze performance and report results. ResponDex Marketing, Inc. All Rights Reserved 2002 The ResponDex System ResponDex Marketing, Inc. All Rights Reserved 2002 What to Measure Response represents the total potential for customers from a campaign. More responders equal more customers. Each area should be measured and managed. RESPONSE SALES INSTALLS CUSTOMERS ResponDex Marketing, Inc. All Rights Reserved 2002 Campaign Tracking & Analysis Benefits ResponDex provides performance results of both direct and mass marketing tactics. Provides demographic and geographic profiles. Monitors operational call center statistics associated with marketing campaigns. Facilitates faster learning through simultaneous testing. Delivers timely results updated daily. ResponDex Marketing, Inc. All Rights Reserved 2002 How to Incorporate ResponDex with your Database Marketing ResponDex Marketing, Inc. All Rights Reserved 2002 Database Marketing Pre-requisites Information Campaign Performance Data Subscriber/Non-Subscriber Data The desire to improve ResponDex Marketing, Inc. All Rights Reserved 2002 Database Marketing Goal To improve the return on marketing investments by leveraging information in order to understand and manage the key performance drivers. ResponDex Marketing, Inc. All Rights Reserved 2002 Database Marketing Key Performance Drivers - Examples Price Package High Income Target Group Creative Message Retired Techno-Phobe Paper Color High Impact Low ResponDex Marketing, Inc. All Rights Reserved 2002 Database Marketing Tools & Techniques Campaign Design Targeting Profiling ResponDex Marketing, Inc. All Rights Reserved 2002 Campaign Design Goals To measure the impact and effectiveness of offers, creative design and message, tactics, targets, etc. Obtain reliable results that are statistically significant and actionable. Facilitate creative thinking by employing test & learn processes. Champion vs. Challenger ResponDex Marketing, Inc. All Rights Reserved 2002 Campaign Design Example Fall 2001 Acquisition High Resp. No-Sub Free Install 180,000 Free Install 425,000 Control 10,000 Control 15,000 Upgrade MDU Instant Install 15,000 Nevers Basic Only 1 & 2 Pays Free Month 15,000 Free Install 15,000 Free Upgrade 395,000 Plus Pkg 200,000 Control 15,000 Control 15,000 Control 15,000 Control 15,000 ResponDex Marketing, Inc. All Rights Reserved 2002 Campaign Design Role of Control Groups Treatment Group Gross Sales Rate 100% 100% Control Group Actual Sales Rate Business As Usual Activity ResponDex Marketing, Inc. All Rights Reserved 2002 Campaign Design With ResponDex ResponDex analyzes and reports results for the overall campaign and corresponding treatment groups. Each group represents a specific combination of creative, offer, tactic, target group, etc. Fall '99 Campaign Non-Subs Nevers Control Free Install MDU Control Free Install Single Family Control Free Month Free Install ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Goal Improve a campaign’s overall performance by identifying groups of prospects best suited to receive treatment. ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Rules Based Rules based targeting is the process of categorizing customers and prospects based on industry rules and classifications. ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Rules Based Homes passed grouped by business rules Digital Non-Subs Nevers Addressable Subs Premium Past Due MDU Bulk Analog ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Predictive Modeling Predictive models involve the use of statistical techniques to identify key performance drivers and prioritize prospects by these drivers to improve performance. ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Predictive Modeling - Example Scoring Score 100 100 50 0 99.8 98.9 . . . . . . . . . . . . . . . . . 3.2 1.9 0.6 Deciles James Frank, 700 Penman Road… Henry Smith, 1870 Kings Court… Ann Jones, 1115 Hamlet Court… Adam Coker, 402 Atlantic Blvd… Lawrence Bruce, 102 Tree Split Lane... M. Voboril, 0 Loser Lane... 0 1 2 3 4 5 6 7 8 9 High Score > 50 Low Score < 50 ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Predictive Modeling - Multiple Models Universe of Potential Prospects - 25% Target 25% of prospects and get 70% of responders* High Low Low * For illustrative purposes only Value High ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting With ResponDex ResponDex provides direct response attributes, which are ideal for the development, enhancement and validation of targeting models. These models can result in improved returns for future marketing campaigns. Targeting Models ResponDex Marketing, Inc. All Rights Reserved 2002 Targeting Benefits Provides better understanding of key performance drivers. Substantial performance improvements can be obtained through targeting. Modeling can identify target groups that are not easily defined. Rules based targeting allows individual strategies to be developed for defined groups. (i.e. nevers, MDU) ResponDex Marketing, Inc. All Rights Reserved 2002 Profiling Goals Provides the ability to develop an understanding of the key characteristics of customer groups. These characteristics can be used to improve marketing strategies. Income 53.4 38.5 Solicited Responders Home Value 120 85 Solicited Responders ResponDex Marketing, Inc. All Rights Reserved 2002 Profiling Customers With ResponDex ResponDex creates demographic and geographic profiles of treatment groups. These profiles can be used to compare groups and identify their key characteristics. Income 53.4 38.5 Solicited Responders ResponDex Marketing, Inc. All Rights Reserved 2002 In Summary ResponDex supplies the systems, tools, information and expertise needed to support Marketing in its efforts to improve results. These services will provide the insight to effectively manage and increase the return on marketing investment. ResponDex Marketing, Inc. All Rights Reserved 2002