Strengthening Customer Relationships With Tennessee ConnectionsA multi-media publishing program

exclusive to members of TMEPA.

Published quarterly in print and online in partnershipwith…

• Custom publisher established in 1988, based in Franklin, TN

• Pulitzer Prize-winner Alex Haley, author of Roots,was one of thecompany’s founders

• 90+ employees

• We produce 130 publications each year in print and online

“Find the good – and praise it.”

Journal Communications has Three Distinct Business Segments (print and online)

•Travel publications

•Community magazines for chambers of commerce

•Custom magazines for corporate clients and associations

Custom Publishing Defined…

Custom publishing is the delivery of editorial content from a sponsoring company to a targeted audience. Whether in print or electronic form, custom publications provide intrinsically valuable information that moves the perceptions and behavior of the audience in a desired direction.

Source: Custom Publishing Council

Custom Publishing is a rapidly growing industry:

• Companies are turning to custom magazines because custom publications are highly targeted vehicles aimed at narrow and well-defined audiences

• North American corporations produce nearly 116,000 different custom publications a year

• Annual investment $29.9 billion• 19% of marketing budget (a 44% increase over 2005)• 78% of CMO’s believe that custom media represents the

future of marketing

Source: Custom Publishing Council

The Value of Magazine Readership…

Change promotes change. Consumers have an increasing array of media options and new technology to control how they use media. In this brave new world, consumers can reject unwanted advertising, and they are doing so.

A typical consumer receives up to 1,500 marketing messages daily.

Source: Magazine Publishers of America

The Power of Custom Publishing

• Loyalty• Connecting With

Readers• Image• Target Audience• Retention & Cross-

Selling• Engagement

LOYALTYTennessee Farm Bureau reaches 600,000 membersquarterly with Tennessee Home & Farm

FACT - Customers of the same auto dealers who received a magazine were 25% more likely to recommend the dealership than customers who did not get a magazine.

Source: 2005 Roper Public Affairs

www.tnhomeandfarm.com

CONNECTING WITH CUSTOMERSTennessee Connections is mailed to 100,000 municipal electric power customers and growing – FACTS… • 8 in 10 readers say custom magazines

show that a company believes in its products and said it strengthens their relationship with the company

• 79% of consumers report finding useful information in custom publications

• If information is to be received from a company, 85% of consumers report that they prefer getting that information from a collection of articles versus an ad

Source: 2005, 2006 Roper Public Affairs

www.tnconnections.com

IMAGE - always important and even more so in today’s world.

A quality editorial environment lends credibility to your message.

• Companies control the environmentof the message

• Positive comments can range from reputation, customer care, meeting needs and trusting the brand

• Companies sending a custom magazine scored higher in reputation (+13%) and trust (+19%)

Source: 2005 Roper Public Affairs

TARGET AUDIENCEWomen influence 80% of decisions made in the home

• Database information gathering allows for a targeted audience

• On average, custom magazines appeal higher to women, ages 35-54, and $100,000+ income

Source: Custom Publishing Council

RETENTION & CROSS-SELLINGTennessee Home & Farm reinforces the benefits of Farm Bureaumembership while educating members on new insurance products • Increasing communication with

current customers enhances customer satisfaction

• 62% of respondents say custommagazines help them make better purchasing decisions

• 61% of respondents say they have bought something they saw mentionedin a custom magazine

• 80% of respondents say they don’t mind the sponsor’s “selling” as long as the company is providing useful information

Source: 2005 Roper Public Affairs

ENGAGEMENTTennessee Connections features captivating photography along with pertinent and compelling content that appeals to its reader audience.

• 67% of those receiving a custom magazine report trying a tip or recipe

• 64% consider themselves “regular readers” who heavily consume content

• The average reader picks up a custom magazine2.5 times

• 40% keep the magazine or pass it to a friend

Source: Custom Publishing Council

What is Tennessee Connections?

www.tnconnections.com• TMEPA’s official custom magazine since 1996

• 20-page custom magazine designed to enhance communication and branding with power customers

• Online magazine at tnconnections.com with expanded content and interactive features

• Features engaging lifestyle content that appeals to the interests of Tennesseans, such as interesting travel destinations, food, and the home

• Also educates customers with useful content related to electric power, TMEPA member legislation and other issues with an effective, subtle writing style that is not overly-promotional

A Multi-Media Platform Today’s discerning readers choose when and how they wish to

receive information. Tennessee Connections delivers a menu of options to engage your customers around the clock, in the

format they prefer:

• Print magazine • Online magazine • Virtual magazine online • Video online

• To build loyalty with the community and enhance image

• To connect with customers through valuable content that people actually enjoy reading

• To create a grass-roots network

• To increase the value of being a utility customer

• To cross-sell new products and services (automatic bill pay, appliances, energy savings, new services, etc.)

• To proactively communicate about issues such as rising utility rates, trimming costs, local economic and industrial growth, and customer service

• To empower their Web site with engaging editorial and photography every quarter

Why TMEPA MembersUse Tennessee

Connections

Clarksville Department of Electricity

Positive Customer Feedback

2004 Clarksville Department of Electricity Customer SurveyThe Clarksville Department of Electricity participates in a quarterly magazine called Tennessee Connections.

Have you received this magazine?

If Yes, as an electric power customer, how valuable is the information found in Tennessee Connections?

2004 Clarksville Department of Electricity Customer Survey

2005 CED Customer SurveyAre you aware of the following products and services currently offered by CDE?

Which of the following is the most effective way for CDE to communicate with customers?

Tennessee Connections Before

• No customization opportunity on the cover to feature your utility company name and personalized message

• Long lead-time was necessary to meet production deadlines, making it difficult to communicate the most current information to your customers

• Need for professional design and content assistance to producecustom 4-page special section

• No real presence on the Internet

The New Tennessee Connections

New contemporary design that rivals popular newsstand publications

The New Tennessee ConnectionsNew engaging lifestyle content that appeals to the interests of your customers

Interesting travel features and recipes appeal to reader interests

Makes an impression with your customers, both long-term and new

Specialized content related to electric power presented as engaging editorial proactively informs while entertaining readers

Tennessee Connections Online

A powerful online version, delivering expanded reach and an interactive experience to tech-savvy customers. www.tnconnections.com

The New Tennessee Connections

New customization option for your utility company: FRONT COVER - your name in the magazine title

BACK COVER - your personalized marketing message

The New Tennessee Connections

Customized back cover:• Shorter lead time – within weeks of the publish date instead of months – to communicate the most current information to your customers• General, seasonal article also available for your use

The New Tennessee ConnectionsNew helpful layout guide and electronic proofing for your custom 4-page special section

Cost-Effectively Positions YourCompany in the Community

• Your utility’s name on the front cover

• The front cover is an upscale design

• Engaging home and lifestyle content

• Customized with your marketing message in a custom 4-page special section and/or on the back cover

• Powerful online exposure for your utility

Tennessee Connections Online www.tnconnections.com

• Expands your reach totech-savvy customers

• Opportunity for additional content beyond the print magazine, including past issues

• Interactive “virtual” magazine allows you to turn the pages online

• Scenic video tour of Tennessee

• Added exposure for all TMEPA utility local sections

• Enhances your own Web site and links from your home page

• Can be added as an enhancement to your e-mail signature

Empower Your Web Site

• Link to Tennessee Connections online to instantly empower your Web site with engaging editorial and photography

• Content changes quarterly, providing current information on your site

• Linking is easy!

• Go to tnconnections.com– 1. Click on Links– 2. Select Link to Us– 3. Follow the easy

instructions

A Turnkey Marketing Program

Journal Communications:

• Magazine: editorial, photography, design

• Distribution

• Online magazine

• Layout guide for custom 4-page local section

Your Utility Company:

• Printing

• Postage

• Customization Options:

1. Local 4-page special section

2. New! Personalization of front and back covers

In Summary …

• Powerful marketing tool that proactively addresses power-related issues that affect your customers

• Cost-efficient way to strengthen customer relationships

• Turnkey marketing solution for your company

• Compelling feature stories and photography to empower your Web site

Questions? Want more information?Contact Robin Robertson with Journal Communications at (800) 333-8842, extension 227 or inquire online at www.tnconnections.com (click on Contact).