Green acres and milk and cookies understanding your community through market segmentation

Green Acres and Milk & Cookies…

Page 1.

Green Acres and Milk & Cookies:

Understanding your

Community through Market

Segmentation


Page 2.

Introduction

Presented by Marc FuttermanPresident/CEO, CIVICTechnologies


Page 3.

Introduction

Agenda

Introduction

Marc Futterman, President/CEO, CIVICTechnologies (PLA Sponsor)

Washington County Family Portrait

Eva Calcagno, Cooperative Manager, Washington County Cooperative Library Services

Green Acres is the Place to Be

Gina Millsap, Executive Director, Topeka & Shawnee County Public Library

Discussion/Questions & Answers


Page 4.

Panelists Marc Futterman (moderator)

President and CEO, CIVICTechnologies

Marc co-founded CIVICTechnologies in 2001 to assist organizations use information technologies to make better informed decisions to improve the quality of urban life. Marc’s award-winning work to bring market segmentation to public libraries, small business patrons, and students is benefiting communities nationwide.

Eva CalcagnoCooperative Manager, Washington County Cooperative Library Services

Eva manages a federation of libraries encompassing the county, nine cities and two non-profit organizations that work together to provide public library services to the 500,000+ residents of Oregon’s second largest county. With 25 years of library experience, at WCCLS ‘Cooperative’ is the middle name. She holds an MLS from the University of Washington, and has experience in public, academic and special libraries.

Gina MillsapExecutive Director, Topeka & Shawnee County Public Library

Gina leads an organization of 230 incredible employees serving a library-loving community. She’s worked in libraries for 30+ years and received her MLS in the previous century. Her degree may be an antique, but her outlook isn’t. She’s a Library Journal 2007 Mover and Shaker and president of the Library Leadership & Management Association (LLAMA) of the American Library Association.

Introduction


Page 5.

"I know that half my advertising works, I just don't know which half."

…John Wanamaker

Supply-based approach

Demand or market-based approach

Understanding what customers and prospective customers need and want

Market segmentation is key to achieving success:

1) Find new customers

2) Retain current customers

3) Locate a business, outlet, bookmobile stop, etc.

Introduction


Page 6.

Today we’ll explore:

What don't you know about your library's customers?

Surveys and focus groups just scratch the surface.

Staying relevant today means meeting customers where they are and developing the right services for them.

How market segmentation data combined with your ILS patron data and geographic information system (GIS) technology will leverage your resources

Introduction


Page 7.

Benefits and learning objectives

At the end of this program, you will:

See how market segmentation can be used in conjunction with the PLA Service Responses to deliver demand-driven programs, services and collections.

Understand the Tapestry Market Segmentation system and how to apply it to their community.

See how GIS tools and market segmentation can focus library resources to serve the unserved and underserved.

Introduction


Page 8.

Introduction


Page 9.

What is and why use market segmentation?

Organizations use market segmentation to:

• Gain insights into their customers

• Use that knowledge to grow

• Position their organization's strategy and decision-making to be customer-centric

Introduction


Page 10.

Here’s a simple but real example of market segmentation

Discern the difference between how customers appear vs. how they act

Introduction

Demographics Lifestage Needs Attitudes

Woman, early 40's married, household income of $125,000

Two kids, working mom

Menu planning advice (low fat and value oriented), cooking club

Value shopper, perfers low-fat products, enjoys cooking

Woman, early 40's married, household income of $125,000

Two kids, working mom

Ready-to-eat products, pre-cooked entrees, home grocery delivery services

Convenience shopper, prefers organic foods, does not like to cook


Page 11.

A segmentation system needs to:

Be robust to reveal customer differences

Be stable so it is reliable and predictive

Paint a picture of the customer that informs organizational level decisions

Enable an organization to manage a diverse and growing portfolio of customers

Introduction


Page 12.

How can public libraries use market segmentation?

Customer service

• Small businesses

• Entrepreneurs

• Non-profit patrons

By the library itself

• Enable collaboration among libraries

• Guide strategic, service and facilities planning

• Change the way you interact with your community

Introduction


Page 13.

Libraries for whom detailed market segmentation have been prepared

Introduction

Johnson County Library KS 551,000

Jefferson County Public Library CO 535,000

Washington County Cooperative Library Services OR 530,000

Solano County Public Library CA 427,000

Topeka and Shawnee County Public Library KS 173,000

Deschutes County Library OR 158,000

Sunnyvale Public Library CA 138,000

Carrollton Public Library TX 130,000

Ada Community Library ID 88,000

Skokie Public Library IL 66,000

Lewiston Public Library ID 33,000

Duncanville Public Library TX 41,000


Page 14.

What makes for a good market segmentation system?

Introduction

Source: IBM Institute for Value Analysis

Time Values

CharacteristicsMulti-dimensional (scales

up)

• Who are they?• What do they look like?• What do they need?• How do they act?• What do they buy?• When do they need it?• Why do they want it?

ROI, profitability

• Mind share/wallet share

• Consuming/buying phases

• Amount spent• Cost to serve/sales

Measures

• Customer lifecycle view

• Recency and frequency of use

• Customer lifestage

• Channel selection


Page 15.

What market segmentation systems are available?

ESRI’s Tapestry™ Segmentation

Claritas Nielsen’s PRIZM®NE

Experian’s MOSAIC®

Specialty systems

• Industry-based (e.g., health care)

• Corporate/proprietary

Introduction


Page 16.

Why is segmentation catching on with libraries just now? Previously, the cost and level of expertise needed to

employ it was beyond reach

Together, libraries and CIVICTechnologies have changed this equation

Know who customers are before how we respond to them

Tapestry is the segmentation system of choice

• Robust: characteristics, measures, and time values

• Seamlessly scales up to “LifeMode Groups”

• Easy to use

• No additional expertise or knowledge

• Web-accessible

• Affordable across a range of library sizes and types

Introduction


Page 17.

What is Eva Calcagno going to talk about?

Eva is the Cooperative Manager at WCCLS

She’s here to discuss how market segmentation:

•Helps us know all of our residents, not just the frequent users

• It helps us communicate with residents and serve them more effectively

Introduction


Page 18.


Presented by Eva Calcagno,Cooperative Manager, Washington County Cooperative Library Services


Page 19.

Connecting people, books and resources

Washington County:

• 2nd largest in Oregon, 520,000+ residents

• West of Portland, Multnomah County

• Majority of population on eastern edge

• Traditionally considered suburban “bedroom” communities

• Agricultural heritage, high-tech future

• Economic Engine of Oregon



Page 20.

Cooperative is our middle name

Washington County Cooperative Library Services

•Federation of the County

•Nine cities and 2 non-profits

•Provide public library service to residents

The County’s role

•Provide majority of operational funding, member support services, special populations outreach

Includes planning, data analysis, and communications



Page 21.

What were our goals?

Ability to make planning decisions based on data for ALL residents, not just frequent users

Begin to move beyond needs of individual libraries to needs of shared, similar populations

Think our patrons, not my patrons

Combine market segmentation with voter polling data to shape future ballot measure messages



Page 22.

What did we learn?

One size doesn’t fit all

We were doing a better job of reaching some segments than others

We had room for improvement in “family” segments

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Page 23.

Market segmentation in action

Annual Newsletter mailing to every household (215,000)

Retooled to target key LifeMode Groups

Cover photos and article messages customized

•Family

•Other

•Spanish

Used ZIP Code & carrier route overlays to ID which version to mail where



Page 24.



Page 25.

Family version: 123,000 households American Quilt

Factories and Farms

Family Portrait

Global Roots

High Hopes

Traditional Living



Page 26.

“Other” version:92,000 households High Society

Metropolis

Senior Styles

Solo Acts

Upscale Avenues



Page 27.

Spanish version

Not mailed

• English versions mailed note that the Spanish version is available upon request

5,300 distributed through libraries, community outreach partner organizations, and on website



Page 28.

Beaverton City Library identified a branch location

Geographic data confirmed need for a branch

City found lease space in an established mall



Page 29.

Local library programming: West Slope Adult Program

High Society

• “Affluent and active – financially, civically, and physically”

Digital Camera workshops: waiting lists

Winter Reading Program, Crochet & Knitting Nights

Maybe estate planning?



Page 30.


Presented by Gina Millsap,Executive Director, Topeka & Shawnee County Public Library


Page 31.

OUR

CUSTOMER

S DEMAND

GREAT

SERVICE!

Topeka & Shawnee County Public Library



Page 32.



Page 33.


Page 34.

““

Library service is really all

about connecting with people and

building relationships built

on real knowledge about

each other. And the

data that drives that is

market segmentation.

– Gina Millsap



Page 35.

The Next Decade Plan

No focus groups or community surveys

Traditional tools don’t tell us:

• Who our customers are

• What is important to them

• How to build relationships:•Convert non-users into customers

•Increase the satisfaction of current customers

The right stuff

GIS-based market segmentation provides:

• Demographic, socioeconomic and residential information linked to where people live

• Interests, buying habits and leisure time activities

• Strategies for communicating with specific audiences



Page 36.

We thought: people who live in east Topeka are generally underserved and are not big library users.

We learned: 77% of the segment “Inner City Tenants” are Library customers and have the 5th highest check out per customer.


Perception v. Reality


Page 37.

We thought: customers living farthest from the Library use the mailing service the most.

We learned: distance is not a good predictor for how certain services are used.




Page 38.

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We thought: people in rural Shawnee County prefer films over books.

We learned: they check out more books than films.




Page 39.

June 2008 community planning workshop: show them the data 100 community representatives explored five topics using the Tapestry data



Page 40.



Page 41.

30 market segments are present in Shawnee County



Page 42.

Our top ten segments (by household)

12.00%

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17. Green Acres

32. Rustbelt Traditions

53. Home Town

33. Midlife Junction

18. Cozy and Comfortable

07. Exurbanites

36. Old and Newcomers

30. Retirement Communities

13. In Style

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Page 43.

Green Acres:These are my neighbors!



Page 44.

Green Acres: THE BASIC STUFF

Characteristics•23,999 people comprise 13% of the population

•70% are married with & without children

•Most are blue collar boomers with children ages 6 – 17

•Median age is 39

•90% are white

Library Stats•9,409 have library cards (39% of them)

•They are 10.7% of library customers

•They circulate 10.5% of items (12,428 items per year)

We know we have to do better. With only 1 building serving 528 square miles, equitable access is a BIG issue.



Page 45.

Green Acres: THE GOOD STUFF

Socioeconomic

•College educated & hard working

•70% employed in skilled labor, farming, manufacturing, construction

•12%+ earn income from self employment

Residential

•A little bit country…these are rural residents

•Own single family homes with some mobile homes

•Own 2 or more vehicles…mostly domestic SUV’s, trucks, and garden tractors



Page 46.

Green Acres: THE REALLY GOOD STUFF…these are my neighbors! Preferences

•Home improvements: do-it-yourselfers

•Gardening: vegetables

•Hobbies: hiking, backpacking, hunting, motorcycles

•Read: fishing, hunting & boating magazines

•Watch: HGTV, ESPN and Speed channels on satellite dish

•Listen: news-talk radio

•Computers: own & use them, probably purchased by catalog

•Shop online: clothes, videos, CD’s, educational software



Page 47.

Green Acres: Open Market Potential

The darker the color the greater the potential for developing new patrons in this segment



Page 48.

Green Acres: The challenges

Distance from the library: 20+ miles

Only one bookmobile stop per week

Presence of volunteer-run community library demonstrates demand for more library service

Limited broadband: dial–up, air cards, and microwave also used



Page 49.

How Green Acres uses the Library: Collections



Page 50.

How Green Acres uses the Library: Bookmobile


The darker the color the higher the percentage of bookmobile checkouts


Page 51.

How Green Acres uses the Library: Adventuremobile


The darker the color the higher the percentage of checkouts


Page 52.

Connecting with Green Acres: The Green Acres Marketing Plan Identify services, collections, and programs that match their

interest

• Lawn & garden neighborhood •vehicle repair manuals • hunting & fishing • do-it-yourself

Partnerships

• Local Harley-Davidson • Lowe’s • Home Depot • Dick’s Sporting Goods

Television advertising

• ESPN • HDTV • Speed Channel

Online and Mobile Devices

• Digital branch •Chilton’s Auto Repair • e-newsletters

Convenience

• Books by mail • Bookmobile stops • remote book returns



Page 53.

Connecting with all 30 segments throughout the county



Page 54.

Creating new users: The science of change

Everybody’s doing it!

The nudge factor

The need to know

It’s gotta be easy



Page 55.

Summing it up

Presented by Marc Futterman


Page 56.

Primary messages

Eva

•Market segmentation helps us know all our residents, not just frequent users

• It helps us communicate with residents and serve them more effectively

Gina

•Library service is really all about connecting with people and building relationships built on real knowledge about each other. And the data that drives that is market segmentation.

Marc

•Segmentation is affordable and can’t afford to be ignored

•Taking a “demand-based” instead of a “supply-based” approach

Conclusion


Page 57.

Questions & Answers

© 2009 CIVICTechnologies.

Marc FuttermanGina MillsapEva Calcagno


Page 58.

Thank you! Talk more!

For more information see our article “Finding the Underserved” in LJ:

http://www.libraryjournal.com/article/CA6602835.html

Gina MillsapTopeka & Shawnee County Public Library

785-580-4480

[email protected]

Eva CalcagoWashington County Cooperative Library Services

503-846-3233

[email protected]

MarcFutterman

CIVICTechnologies

888-606-7600

[email protected]

Business

Green acres and milk and cookies understanding your community through market segmentation