SEGMENTATION TO WIN THE MOMENTS THAT MATTER MOST Sean Gorenflo Sr. Director - Bank Marketing, Capital One

Kim Garner Executive Advisor, Advisory Services, Neustar

Sean Gorenflo has spent the last 15 years in marketing technology and operations in the financial services industry. He has worked for firms ranging from a Fortune 200 bank to a Life Insurance start-up. Recently he was tasked with transforming Capital One's marketing infrastructure to create competitive advantage through better capabilities, thoughtfully applied and fueled by Big Data.

INTRODUCTIONS

Kim Garner is an Executive Advisor in the Neustar Advisory Services Group. She was previously VP of Advisory Services at Neustar and VP of Analytics at TARGUSinfo, where she helped launch the ElementOne Platform. Kim has been in the segmentation and analytics space since 1986 and has consulted with clients across a wide variety of industries, including telecommunications, financial services, retail, and technology.

MOMENTS THAT MATTER

one to three emails

MARKETING MOMENTS THAT MATTER

1st call center experience

website visit

impression

?

?

?

?

38 years old?

2+ children in the household?

Lives in the suburbs?

lives within 1 mile of a brick and mortar location STAR WARS fanatic

Good prospect for kids toys?

lives within 1 mile of a brick and mortar location

CLUSTERS OF DATA TELL STORIES. INDIVIDUAL DATA POINTS DO NOT.

28 years old

no children, one dog

Yoga instructor at the YMCA urban apartment dweller

Good prospect for kids toys?

STAR WARS fanatic

lives within 1 mile of a brick and mortar location

High propensity to buy premium pet food

lives within 1 mile of a brick and mortar location

CLUSTERS OF DATA TELL STORIES. INDIVIDUAL DATA POINTS DO NOT.

28 years old

no children, one dog

Yoga instructor at the YMCA urban apartment dweller

STAR WARS fanatic

28 years old

lives within 1 mile of a brick and mortar location

Yoga instructor at the YMCA

no children, one dog

urban apartment dweller

uses 2+ store credit cards

Listens to satellite radio

high propensity to be a valuable prospect

Watches little-to-no television

Prefers dance music

Reads fashion magazines

CLUSTERS OF DATA TELL STORIES. INDIVIDUAL DATA POINTS DO NOT.

High propensity to buy premium pet food STAR WARS fanatic

Response Probability Channel Planning

Pricing Strategy

Targeting Message Optimization Media Mix Optimization

ACQUISITON

DERIVE INSIGHTS APPLICABLE THROUGHOUT THE CUSTOMER LIFE CYCLE

RETENTION

Churn Identification Cross-Sell/Up-Sell Referral Revenue

Service Support Planning

Message Optimization Customer Value Forecasting Product/Service Bundling Sales Support Planning

Overly Broad, Pre-Canned Segments

Lack of Actionability

Inaccurate Identification

Inaccurate Identification § Utilize questionable data sources § Only match on a handful of identifiers § Update identify data very infrequently

Overly Broad, Pre-Canned Segments

Lack of Actionability

§ Sell a single, standard schema § Lacking or difficult customization § Limited number of segments § Utilize large segment blocks

§ Segments not matched to targetable identifiers across all consumer touchpoints

WHY TRADITIONAL SEGMENTATION SOLUTIONS OFTEN FALL SHORT

MASTERFUL SEGMENTATION REQUIRES

Accurate Identification

Laser-like Precision

Actionable Insights

DEPTH

ELEMENTONE MARKET ANALYTICS & SEGMENTATION

§  Advanced predictive analytics framework fueled by the industry’s most granular segmentation based on authoritative offline data covering 220M individuals and 120M households in the U.S.

§  Powerful platform for real-time data exploration, visualization, and reporting

SITE & MARKET ANALYSIS

CUSTOMER & PROSPECT ANALYSIS

MEDIA & CHANNEL PLANNING ACCURACY SCALE

HIGH-ROLLERS

Demographics

In the early stages of their careers and life in general with new apartments and young kids. Tech savvy and willing to spend more on staying connected. They don’t have to cut the cord because they never had one. Internet is really all they need.

Lifestyle/Attitude Home: many HH don’t have any children at home, High home value, over twice as likely to have a home value above $500K Pets: Likely to have multiple cats and dogs

Shopping: Coldwater Creek, Chico’s, BJ’s Wholesale, Hallmark Store, Stein Mart, Dillard’s

Hobbies/Memberships: Yoga, Running, Gym

Employment: 70% more likely to be retired.

Behavior Extremely active, enjoys a variety of cardio exercise forms

Active online shoppers who make buying decisions with husband or kids Not TV fanatics themselves, but tend to have many devices for kids’ sake If they see something they like in-store, they will look online for a better deal

OVERVIEW

AVERAGE AGE:

AVERAGE INCOME:

HAVE CHILDREN:

HOMEOWNERSHIP:

ETHNICITY: (White/African American/Hispanic)

50.4

$130K

29%

84%

80%

11% 12%

Wealthy, health-conscious, and tech savvy. Heavily use the internet for purchase decisions. Look for high-quality products and willing to stay loyal to brands.

TELECOM

10%

12%

17%

22%

21%

16%

0% 5% 10% 15% 20% 25%

$250+

$200-250

$150-199

$100-149

$50-99

<$50

MONTHLY RECURRING CHARGE

INDEX

142

132

118

110

89

74

42%

47%

5% 6%

TYPE OF PHONE

Android

iPhone

Blackberry

Windows 17% 13% 13%

19% 17%

11% 8%

0% 5% 10% 15% 20%

NO DATA >0 to <300Mb

300Mb to <1Gb 1GB to <3Gb 3Gb to <5Gb

5Gb to <10Gb 10Gb or More

INDEX

107

116

116

111

114

92

77

DATA USAGE

HIGH-ROLLERS

High Rollers tend to be found in higher cost of living urban areas such as Los Angeles, Dallas/Fort Worth and Washington, DC. Despite their tendency towards more urban areas, they are not as heavily concentrated in urban markets such as New York and Chicago.

KEY MARKETS (Tier 1) §  Los Angeles, CA

§  Dallas/Fort Worth, TX

§  San Francisco, CA

§  Washington, DC

§  Atlanta, GA

§  Houston, TX

GEOGRAPHIC CONCENTRATION HIGH-ROLLERS

KEY MARKETS (Tier 1) Los Angeles, CA

Dallas/Fort Worth, TX

San Francisco, CA

Washington, DC

Atlanta, GA

Houston, TX

HIGH-ROLLERS

Their urban locations mean that High Rollers are more heavily exposed to Outdoor advertising particularly on public transportation and taxis. They are heavy users of the web both at home and at work and are more likely than average to be heavy consumers of newspapers.

Web Use Home/Work

Magazine Involvement Used Public

Transportation

Outdoor

Radio TV

Newspaper

15%

20%

25%

30%

35%

40%

45%

70 80 90 100 110 120 130 140

PE

NE

TRAT

ION

INDEX

Media Engagement Media Usage Radio: Sports, News, Business, Easy Listening, Talk

Internet: Costco, Dow Jones, Marriott, American Express, Southwest Airlines

Magazine: American Way, Hemispheres, Spirit, The Economist, Sky, Travel + Leisure

TV Channels: HGTV, ESPN, MSNBC, BBC America, HBO

TV Shows: Suits, Real Time with Bill Maher, Boardwalk Empire, Millionaire Matchmaker, Morning Joe, Love it or List It

MEDIA USAGE

Above Avg. Engagement

Below Avg. Engagement

HIGH-ROLLERS ACTIVATION

Q&A Sean Gorenflo Sr. Director - Bank Marketing, Capital One

Q&A Sean Gorenflo Sr. Director - Bank Marketing, Capital One

THE 4 P’S OF MARKETING

PRODUCT

PLACE

PRICE

PROMOTION

SEGMENTATION TO WIN THE MOMENTS THAT MATTER MOST

Thank you