2006 columbus dispatch
DESCRIPTION
TRANSCRIPT
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Circulation - Customer Development Game Plan
MaaX Users Group 2006
John Lewis
Corey Timlin
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Subscriber Loyalty Coding
• Assign a loyalty code to each subscriber in our Circulation database based on their loyalty to The Columbus Dispatch.
Loyalty Code based on subscriber: Geographic Location – City/Suburban/State
Product Code – Full/7-Day Delivery or Other
Subscription Rate – Full Price or Discount
Length Subscription – 0-3mo, 3-6mo, 6-12mo,
12-24mo, 24+mo.
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Household Value Scoring
Goal:
•Assign a score (0-100) to each household in the Columbus market based on the households value to The Columbus Dispatch.
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Household Value Scoring
Step 1: Determine traits that were valuable to us as a company (whether advertising or circulation based)
Step 2: Assign value from 1-100 based on possible trait outcomes.
Step 3: Weight each trait based on importance (weights total 1.00.)
Step 4: Write and test an equation based on weights of all valued traits.
Step 5: Create a Virtual Field in MaaX based on this equation that would apply to all households in our database.
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• Goal: Utilize traits that place equal emphasis on circulation marketing and advertiser demands.
– Zip Code: Based on Top 26 preprint advertisers list of most highly desired zip codes.
– Prizm Segment: Based on Segments most likely to become long term subscribers as indexed in MaaX.
– Income Level: Based on Claritas block group income levels. Valued in descending order.
– Expenditure Level: Based on Claritas block group total consumer expenditure levels. Valued in descending order.
– Home Value: Based on Claritas block group home value. Valued in descending order.
– Voting Behavior: Used state voter registration file to determine: (1) whether registered to vote. (2) whether voted in last primary election. (3) whether voted in last local election. (4) whether voted in last state election.
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Value Score Methodology
Variable % of Value Score
Zip Code 38%
Prizm Code 22%
BG Median Household Income 13%
BG Median Consumer Expenditures 12%
BG Median Home Value 11%
Registered Voter 1%
Voted in Last Primary Election 1%
Voted in Last Local Election 1%
Voted in Last State Election 1%
100%
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Zip Code 38%
Zip Code City Advertisers % of Total Points43016 DUBLIN 26 100
43017 DUBLIN 26 100
43035 LEWIS CENTER 26 100
43220 COLUMBUS 26 100
43221 COLUMBUS 26 100
43224 COLUMBUS 26 100
43229 COLUMBUS 26 100
43235 COLUMBUS 26 100
43004 BLACKLICK 25 95
43026 HILLIARD 25 95
43054 NEW ALBANY 25 95
43065 POWELL 25 95
43068 REYNOLDSBURG 25 95
43081 WESTERVILLE 25 95
43082 WESTERVILLE 25 95
43085 COLUMBUS 25 95
43202 COLUMBUS 25 95
43211 COLUMBUS 25 95
43213 COLUMBUS 25 95
43214 COLUMBUS 25 95
43219 COLUMBUS 25 95
43227 COLUMBUS 25 95
43230 COLUMBUS 25 95
43231 COLUMBUS 25 95
43232 COLUMBUS 24 95
38 X 1.0 = 38
38 X .95 = 36.1
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Zip Code 38%
Zip Code City Advertisers Percent of Total Points43062 PATASKALA 23 90
43209 COLUMBUS 23 90
43212 COLUMBUS 23 90
43215 COLUMBUS 23 90
43228 COLUMBUS 23 90
43002 AMLIN 22 85
43125 GROVEPORT 22 85
43201 COLUMBUS 22 85
43205 COLUMBUS 22 85
43206 COLUMBUS 22 85
43223 COLUMBUS 22 85
43240 COLUMBUS 22 85
43119 GALLOWAY 21 80
43123 GROVE CITY 21 80
43204 COLUMBUS 21 80
43207 COLUMBUS 21 80
43021 GALENA 20 75
43023 GRANVILLE 20 75
43025 HEBRON 20 75
43031 JOHNSTOWN 20 75
43055 NEWARK 20 75
43056 HEATH 20 75
43147 PICKERINGTON 20 75
43217 COLUMBUS 20 75
43015 DELAWARE 19 70
43064 PLAIN CITY 19 70
38 X .90 = 34.2
38 X .85 = 32.3
38 X .80 = 30.4
38 X .75 = 28.5
38 X .70 = 26.6
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Prizm classifies every household in the U.S. into a Lifestyle Segment based on
the following characteristics:
Demography
Geography
Economic Status
Prizm Segment – 22%
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Prizm Segment 2 Year+ Index Percent of Total Points
01. Upper Crust 323 100
02. Blue Blood Estates 290 100
14. New Empty Nests 288 100
07. Money & Brains 262 95
15. Pools & Patios 237 95
17. Beltway Boomers 218 95
06. Winner's Circle 210 91
21. Gray Power 210 91
03. Movers & Shakers 205 91
26. The Cosmopolitans 205 86
05. Country Squires 192 86
09. Big Fish, Small Pond 174 86
39. Domestic Duos 174 82
10. Second City Elite 155 82
11. God's Country 154 82
13. Upward Bound 146 77
40. Close-In-Couples 139 77
18. Kids & Cul-De-Sacs 138 77
04. Young Digerati 134 73
28. Traditional Times 126 73
29. American Dreams 121 73
22 X 1.0 = 22
22 X .95 = 20.9
22 X .91 = 20.02
22 X .86 = 18.92
22 X .82 = 18.04
22 X .77 = 16.94
22 X .73 = 16.06
Prizm Segment 22%
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Block Group Median HH Income – 13%
Income Percent of Total Points
>$99,445 100 13 X 1.0 = 13
$82,528-$98,992 95 13 X .95 = 12.4
$72,328-$82,522 90 13 X .90 = 11.7
$65,962-$72,288 85 13 X .85 = 11.1
$61,586-$65,855 80 13 X .80 = 10.4
$57,095-$61,494 75 13 X .75 = 9.75
$54,142-$57,090 70 13 X .70 = 9.1
$50,872-$54,137 65 13 X .65 = 8.45
$48,464-$50,850 60 13 X .60 = 7.8
$46,078-$48,456 55 13 X .55 = 7.15
$42,808-$46,023 50 13 X .50 = 6.5
$40,510-$42,778 45 13 X .45 = 5.85
$38,571-$40,484 40 13 X .40 = 5.2
$35,231-$38,500 35 13 X .35 = 4.55
$32,667-$35,214 30 13 X .30 = 3.9
$30,659-$32,656 25 13 X .25 = 3.25
$28,125-$30,429 20 13 X .20 = 2.6
$24,999-$28,056 15 13 X .15 = 1.95
$19,590-$24,916 10 13 X .10 = 1.3
<$19,356 5 13 X .05 = 0.65
Value Score
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Block Group Median Consumer Expenditures
12%
Expenditures Percent of Total Points
>$63,423 100 12 X 1.0 = 12
$47,445-$63,309 95 12 X .95 = 11.4
$37,470-$46,792 90 12 X .90 = 10.8
$32,157-$37,332 85 12 X .85 = 10.2
$28,402-$32,155 80 12 X .80 = 9.6
$25,368-$28,315 75 12 X .75 = 9
$23,247-$25,347 70 12 X .70 = 8.4
$20,992-$23,242 65 12 X .65 = 7.8
$19,480-$20,973 60 12 X .60 = 7.2
$18,067-$19,470 55 12 X .55 = 6.6
$16,638-$18,056 50 12 X .50 = 6
$15,524-$16,598 45 12 X .45 = 5.4
$14,331-$15,523 40 12 X .40 = 4.8
$13,250-$14,324 35 12 X .35 = 4.2
$12,055-$13,206 30 12 X .30 = 3.6
$10,849-$12,045 25 12 X .25 = 3
$9,526-$10,821 20 12 X .20 = 2.4
$8,319-$9,515 15 12 X .15 = 1.8
$6,860-$8,306 10 12 X .10 = 1.2
<$6,779 5 12 X .05 = 0.55
Value Score
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Block Group Median Home Value
11%
Home Value Percent of Total Points
>$268,867 100 11 X 1.0 = 11
$214,583-$268,519 95 11 X .95 = 10.5
$186,538-$214,286 90 11 X .90 = 9.9
$175,000-$185,938 85 11 X .85 = 9.35
$163,333-$174,297 80 11 X .80 = 8.8
$154,605-$163,187 75 11 X .75 = 8.25
$144,133-$154,570 70 11 X .70 = 7.7
$136,515-$144,086 65 11 X .65 = 7.15
$129,353-$136,478 60 11 X .60 = 6.6
$124,153-$129,289 55 11 X .55 = 6.05
$118,817-$124,150 50 11 X .50 = 5.5
$112,313-$118,815 45 11 X .45 = 4.95
$100,610-$112,162 40 11 X .40 = 4.4
$95,041-$100,599 35 11 X .35 = 3.85
$89,917-$95,000 30 11 X .30 = 3.3
$83,793-$89,688 25 11 X .25 = 2.75
$74,522-$83,646 20 11 X .20 = 2.2
$69,405-$74,472 15 11 X .15 = 1.65
$60,364-$69,307 10 11 X .10 = 1.1
<$60,329 5 11 X .05 = 0.55
Value Score
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Voting Behavior 4%
Variable % of Value Score
Registered Voter 1%
Voted in Last Primary Election 1%
Voted in Last Local Election 1%
Voted in Last State Election 1%
4%
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Voter Readership Trends
Source: Scarborough Research, 2004 (Multi-Market Rel. #2)
Sunday Newspaper Daily Newspaper
Index Index
Registered Voter
Yes 106 107
No 80 77
Vote in local elections
Alw ays 112 118
Sometimes 104 101
Never 82 78
Vote in state elections
Alw ays 112 117
Sometimes 100 96
Never 81 77
Vote in primary elections
Alw ays 109 111
Sometimes 91 86
Never 78 75
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Step 4: Write and Test an Equation
•Equation written as: Home Value Score = .38(Zip Score)+
.22(Prizm Score)+
.13(Income Score)+
.12(Expenditure Score)+
.11(Home Val Score)+
.01(Reg. Voter)+.01(Last Primary)+
.01(Last Local)+
.01(Last State)
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Step 5: Create a Virtual Field in MaaX
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Variable Variable Value % of Score Variable Score Value Score
Zip Code 43204 38% 0.80 28.00
Prizm Code 29. American Dreams 22% 0.73 16.06
BG Median Household Income $50,872-$54,137 13% 0.65 8.45
BG Median Consumer Expenditures $14,331-$15,523 12% 0.40 4.80
BG Median Home Value $148K 11% 0.62 6.82
Registered Voter Yes 1% 1.00 1.00
Voted in Last Primary Election Yes 1% 1.00 1.00
Voted in Last Local Election Yes 1% 1.00 1.00
Voted in Last State Election Yes 1% 1.00 1.00
68.13
Example 824 Demorest Rd., Columbus OH 43204
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Total Market
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Customer Development Game Plan
Combining Tenure & Home Value Score:
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Combining Tenure & Home Value Score: Customer Development Game Plan
• Goal: Make data driven retention efforts using Home Value Scoring.
• Idea: Combine length of service with home value score to segment subscriber base.
• Seemed Simple…We already had value score, just
needed tenure days.
• Challenge…
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Determining Subscriber Days
• Knew we had to use Rlogic Field SUBSC_DAYS, but…
• Every marketing subscription starts it own SUBSC_DAYS. Accounts could have multiple active marketing subscriptions.
• Needed to determine original active marketing subscription.
• Turned to Astech for help…
• SUBSC_DAYS_FLAG- Flag longest running active marketing subscription.
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Moving Forward with Game Plan Analysis
• We could now get the field we wanted, but still one more challenge…
– Not all subscribers are in our Rlogic table (predate the system)
– Of those in the system, some only show a product change, NOT a true start.
• Created three groups:
– Tenure is start.
– Tenure is product change.
– Not in R-Logic
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The Final Touches…
• Combined all groups and assigned a Loyalty Score from 1-100 (based on maximum number of days in the system).
• Assigned quadrant name based on median Home Value and Loyalty Score:
– > Med. Home Val, > Med. Loyalty = CORE
– > Med. Home Val, < Med. Loyalty = CONVERSION
– < Med. Home Val, > Med. Loyalty = MAINTAIN
– < Med. Home Val, < Med. Loyalty = LOW PRIORITY
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Customer Development Game Plan
Subscriber Loyalty
Conversion High Value-Low Loyalty
Core High Value-High Loyalty
Maintenance Low Value-High Loyalty
Neglect Low Value-Low Loyalty
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Customer Development Game Plan
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Gameplan & Value Scoring In Practical Use
• Stop Index Report- Determine mathematical formula to determine the likelihood of a subscriber to stop.
• 2005 Hard Start Source Analysis- Break down all starts by home value score segments to determine best start pressure.