2006 sacramento bee_2

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Multi-Media, Customer-Driven Solutions

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A Multi-Media Solutions Company

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Overview

• Customer File Analysis • Frequency of store visits

• Spending amount

• Media channels used

•Growth Strategy for ROI • Optimizing Customer Contact and Budget

• Current Customers

• New Customer Acquisition

4

Your Customers

Data File Analysis

PRIZMNE

Life Stage Segmentation

Younger Years

- Age Under 45

- Singles and Couples

- 30.1% of Sacramento/Yolo

Family Life

- Middle Age 25-54

- Families with Children


Mature Years

- Age Over 45

- Singles and Couples


Life Stage Group USA

Sacto/

Yolo Index

Younger Years 34.6 30.1 87

Midlife Success 13.7 8.8 64

Mainstream Singles 11.8 15.9 135

Striving Singles 9.1 5.4 59

Family Life 30.7 37.7 123

Accumulated Wealth 4.8 4.4 92

Young Accumulators 9.2 14.4 157

Mainstream Families 10.3 11.3 110

Sustaining Families 6.3 7.6 121

Mature Years 34.8 32.2 93

Affluent Empty Nests 9.7 9.0 93

Conservative Classics 10.1 11.2 111

Cautious Couples 7.9 5.8 73

Sustaining Seniors 7.2 6.2 86

• Regression Analysis performed on 26 different variables

• Life Stage proved the best variable for predicting a customer

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Customer Value Changes with Life Stage

Five life stage segments represent three-fourths of revenue.

Numbers may not add due to rounding.

Total Customer Value ($) GOLD SILVER BRONZE NULL

Cust.

Total

► Younger Years - Midlife Success 23% 20% 18% 15% 20% ◄

► Younger Years - Mainstream Singles 11% 15% 16% 19% 14% ◄

Younger Years - Striving Singles 5% 7% 9% 9% 7%

► Family Life - Accumulated Wealth 14% 11% 9% 9% 11% ◄

Family Life - Young Accumulators 8% 4% 3% 2% 5%

Family Life - Mainstream Families 5% 4% 4% 5% 4%

Family Life - Sustaining Families 1% 1% 1% 2% 1%

► Mature Years - Affluent Empty Nesters 22% 21% 22% 21% 21% ◄

► Mature Years - Conservative Classics 8% 10% 11% 11% 10% ◄

Mature Years - Cautious Couples 2% 4% 4% 4% 3%

Mature Years - Sustaining Seniors 2% 3% 3% 4% 3%

77% 77% 76% 74% 100%

KEY POINT

Not all customers are created equal - five life stage segments drive 75% of revenue.

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Amount of Revenue Generated By Customers Gold customers comprise 9% of customers and generate 41% of revenue.

9

4110

22

9

1272

25

Customers Revenue

Null

Bronze

Silver

Gold

KEY POINT

75% of revenue is generated by 28% of customers

comprised of Gold, Silver and Bronze.

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0%

10%

20%

30%

40%

50%

60%

70%

1 2 3 4 5 6

Gold

Silver

Bronze

Frequency of ShoppingFrequency of Shopping

62% of Gold customers shop two or three times in a week at an 62% of Gold customers shop two or three times in a week at an

average revenue per visit of $65.average revenue per visit of $65.

TIER

Total Number

of Customers

Total Weekly

Sales

Total

Weekly

Visits

Avg.

Revenue/

Visit

Avg.

Visits/

Week

Gold 4,220 $492,240.00 7,529 $65.00 1.78

Silver 5,029 $283,019.00 6,295 $45.00 1.25

Bronze 4,627 $162,003.00 4,226 $38.00 0.91

KEY POINTKEY POINT

As you move up your customer tiers the frequency of shopping As you move up your customer tiers the frequency of shopping

and spending per visit rises.and spending per visit rises.

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Customer Location

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Example MAAX Screen: Store AnalysisExample MAAX Screen: Store AnalysisCustomer Value Tier by StoreCustomer Value Tier by Store

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3

12 44

Example MAAX Screen: Store AnalysisExample MAAX Screen: Store AnalysisMost Valuable CustomersMost Valuable CustomersReach 71% with Home Delivered PrintReach 71% with Home Delivered Print

and Online, 29% with Mailand Online, 29% with Mail

•• 1 in 3 customers are both1 in 3 customers are both

a Bee subscriber and onlinea Bee subscriber and online

registered userregistered user

Largest portion are customers you Largest portion are customers you

can find across two channelscan find across two channels

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Optimize by Media Channel

For Return on Customer

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Optimizing Gold Customer CommunicationOptimizing Gold Customer CommunicationHarnessing customer attention across platforms will maximize youHarnessing customer attention across platforms will maximize your return on customer:r return on customer:

MVP Customers Bee SubscribersSacbee.com Registrants

Gold Tier CustomersGold Tier Customers

•• 23.5% are both Bee and sacbee.com users23.5% are both Bee and sacbee.com users

51% reach with MVP and sacbee.com51% reach with MVP and sacbee.com

•• 48.7% are Bee subscribers48.7% are Bee subscribers

•• 36.0% are sacbee.com registered users36.0% are sacbee.com registered users

61% reach with The Bee and sacbee.com61% reach with The Bee and sacbee.com

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Optimizing Top Customer TiersOptimizing Top Customer TiersGold, Silver and BronzeGold, Silver and BronzeMaximize customer exposure through channels they useMaximize customer exposure through channels they use

G/S/B

Customer

HHlds

HHlds

Spending

Percent of

HHlds

Spending

Total

Dollars $/HHld

Direct Mail Channel 6,627 5,385 81% $303,014 56$

Print/Online Channels 8,895 6,646 75% $426,362 64$

43.3% are Bee subscribers43.3% are Bee subscribers

32.6% are sacbee.com registered users32.6% are sacbee.com registered users

19.9% are both Bee and sacbee.com users19.9% are both Bee and sacbee.com users

44% MVP households only44% MVP households only

56.0% are MVP households and sacbee.com users 56.0% are MVP households and sacbee.com users

Exclusive Bee

Subscribers

Sacbee.com Registrants

And MVP

Print and

Online Users

MVP

Nugget Gold/Silver/Bronze

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HighHigh--Revenue Customers in The BeeRevenue Customers in The Bee

0

50

100

150

200

0 50 100 150 200

Gold Customer Index by Life Stage and Bee Subscriber

Bee Subscriber

Nu

gg

ett

Cu

sto

mer

.

MidLife

Success

23%

Young

Accumulators

8%

Affluent

Empty

Nesters

22%

Mainstream

Families

5%

Conservative

Classics

8%

Cautious

Couples

2%Sustaining

Families

1%

Mainstream

Singles

11%

Striving

Singles

5%

Sustaining

Seniors

2%

Accumulated

Wealth

14%

67%

Customer Life Stage Relationship to Channel Customer Life Stage Relationship to Channel

4 Life Stages:4 Life Stages:

•• Represent 67% of Gold Represent 67% of Gold

customer revenuecustomer revenue

•• Index high for also being a Index high for also being a

Sacramento Bee subscriberSacramento Bee subscriber

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Find HighFind High--Revenue Customers Online Revenue Customers Online

72%

0

50

100

150

200

0 50 100 150 200

Gold Customer Index by Life Stage and sacbee Registrant

Nu

gg

ett

Cu

sto

me

r

.

Accumulated

Wealth

14%

MidLife

Success

23%

Young

Accumulators

8%Affluent

Empty

Nesters

22%

Mainstream

Families

5%

Conservative

Classics 8%

Cautious

Couples

2%

Sustaining

Families

1%

Mainstream

Singles

11%Striving

Singles

5%

Sustaining

Seniors

2%

sacbee.com Registrant

Nu

gg

et

Cu

sto

mer

72%

5 Life Stages:5 Life Stages:

•• Represent 72% of Gold Represent 72% of Gold

customer revenue customer revenue

•• Index high for being a Index high for being a

sacbee.com usersacbee.com user

Customer Life Stage Relationship to Channel Customer Life Stage Relationship to Channel

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Channel Index based on Sacramento/Yolo CountyChannel Index based on Sacramento/Yolo County

Midlife

Success

Mainstream

Singles

Striving

Singles

Accum'ed

Wealth

Young

Accum's

Mainstream

Families

Sustaining

Families

Affluent

Empty

Nests

Cons'tive

Classics

Cautious

Couples

Sustaining

Seniors

Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M4

Nugget Customer 18% 15% 8% 4% 11% 5% 1% 21% 10% 4% 3%

Bee Subscribers 94 62 37 154 92 58 33 180 153 133 102

sacbee.com 119 101 63 201 129 95 56 137 74 46 36

MVP 103 122 137 68 105 125 139 53 69 81 99

Nugget Revenue 20% 14% 7% 11% 5% 4% 1% 21% 10% 3% 3%

Life Stages key to Customer and Revenue VolumeLife Stages key to Customer and Revenue Volume

Customer Communication ChannelsCustomer Communication Channels

Customer = % of total customer volume represented by each life stage

Revenue = % of total customer spending represented by each life stage

Product Index = Calculated as the % of the product profile represented by each life stage,

divided by the % of the Sacramento/Yolo market represented by each life stage

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Right Channel

Right Time

- Customer profile(s)

- Match profile within 3-Miles of your location

- Efficient Mix of Mass & Targeted Reach Vehicles

- ROP -Insert

- MVP -Niche products

- Solo Mail -Online

-Flexibility for the consumer

Right Customer

Preferred Channel

Flexible Timing

Optimized Multi-Channel Delivery

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Your Customer

Online

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Slides NOT included

due to spec ads revealing customer

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Trade Area Analysis

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1. Standardized and appended information to customer file

• BTZ – Bee Target Zone

• PrizmNE Life Stage

• Other demographics – age, income, presence of children, distance to nearest store, distance to assigned store, year built of home, dwelling type, mail order buyer

2. Developed regression analysis to verify correlation and significance of variables

3. Applied cartographic analysis using 3 mile radius

4. Developed a distribution recommendation using cost of distribution in order to maximize reach of current customers and top 5 life stage prospects

Distribution Analysis Process

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Summary

Recommendations

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Customer-Driven Strategic Plan

Business succeeds by building, keeping and growing customers.

While all customers have value, not all are of equal value.

Our strategy covers all customers, yet maximizes opportunity with the

most valuable customer segments.

The ability to harness customer data across platforms enables you

to create more meaningful, integrated messaging. By aligning known media

use with customer value, you are in a unique position to maximize Return-

on-Customer.

Optimized multi-platform messaging focuses your advertising on

media and distribution channels utilized by various customer households. Your customer-driven strategy delivers on:

WHO: the right customer

WHAT: your value equation

WHEN: flexible days and times

WHERE: in the right geography

HOW: through the right mix of channels

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Customer-Driven Strategic Plan

We are proposing use of three primary channels:

• The Sacramento Bee

• sacbee.com

• MVP or Solo Mail

Knowledge of the current and prospective customers

allows us to carry a highly effective and efficiently

balanced program to the marketplace.

Mixing mass marketing and targeted

marketing vehicles with our geographically

targeted distribution options provides

flexibility for your messaging to reach

across platforms and into the households

that drive your business.