Modeling & Scoring A Match Made in Marketing Heaven

Rick ErwinPresident of Data & Analytics, Experian Marketing Services

Charlie Swift Vice President of

Database Strategy & Marketing, Hearst

Magazines

Modeling & Scoring:A Match Made in Marketing Heaven

Modeling & Scoring:A Match Made in Marketing Heaven

Today’s TopicsToday’s Topics

Setting The Stage1

A Proactive Approach2

Under The Hood3

Lessons Learned4

Questions & Answers5


Setting The Stage1

Averagewebpage

visitless than

1minute

Commitment?

Site ContentLocation

Type of Site

BehavioralPrevious Visitors

Browsing History

Customers

Contextual

How?

Marketers: People:

Delivering

the right offers

at the right time

to the right person

Searching

what they want

when they want it

where ever it may be

Direct Marketing

Digital Marketing

Customers:

Receiving

personalized offers

specific to them

where they will be

Digital Direct Marketing


A Proactive Approach2

Problem:Internet segment growing but commitment is lower

Lower Pay RateHigher Servicing Cost

Question:How can we lower servicing cost without impacting net pay?

Answer:Proactively change the treatment strategy by

Who and When

But How?

4 Steps1. ID Segments

2. Set Decision Tree

3. Test Offers

4. Make Economics Work

ID Segment:

0%

10%

20%

30%

40%

1 5 10 15 20

Pay R

ate

Score

Segment:Really Bad

Segment:Marginal

Segment:Good

Decision Tree:Upsells

Thank You for your order


Name/AddressValidated

No

Yes

Initial Order Placed

NoYes

>80

“Pay Now” for faster delivery


eMail Thank You w/ Pay now option

Regular #copies served b/f payment

Process Order to CDS

Regular billing series

Experian “Pay % Score Call

Pay %Score?

Bill Me Order?

Good / BadPay Match?

No

Thank You for your payment

UpsellsProcess Order to

CDS

Thank You for your payment

UpsellsProcess Order to

CDS

“Pay Now” for $x off

vary x by score

60+

20+

Paid Order?

Yes

NoeMail Confirmationw/ Pay Now option

eMail Confirmationw/ must confirm

note

eMail Confirmationw/ must confirm

note

Paid Order?

No

Yes

Yes

Confirmed Order?

Pay %Score?

Process Order to CDS

UpsellsThank You for your payment

Yes>20

Pro

cess

Ord

er

to C

DS

wit

h c

on

dit

ion

s m

et

Trial Copy OnlyShipped

Regular Billing Series60+

20+

60+

20+

>20

No copies shippedb/f payment

eBill Series Only1st email: ship on

pymt

Regular Billing Process

Trial Copy only shipped

Regular Billing Series

Regular #copies served b/f payment



pymt


pymt


No

Paid Order?80+

>20

Executed Simply

Customer

PredictedPayRate

Bill Me OptionAvailable

Credit Card Nowor

Phone ConfirmOption

Experian

PaymentModel Score

RealTime

Good

Hearst Web Site

CustomerSub Order

Pay NowIncentive Offer

Marginal

Bad

AudienceIQ

Decision Tree:

RealOffer

TimePresentment

Key 1:

Proactive

Reactive

Marketing

Market

Key 2:

Test

Change

Offers

Behavior

That

Marginal Payer

Pay now and get $3 off

Pay NowOr Call Us

Test Offers

Likely Non-Pay

Economics:Non Payer Trade off:

Screen All – Save on Bad

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

`

Title 1 Band Distribution

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

`

Title 2 Band Distribution

Results:Impact on Net Pay None

-20to30% on Servicing Costs

Net Profits

+9 to 10%


Under The Hood3

UnderHood

the

Real-Time

ConversationWorkflow

Identify

EnhanceValidate

ScoreDecision

OFFEROFFER

Sign-up for FREE

Magazine!

Name:Address:

Bill Me Later!

AddressAlgorithmModel Score

Propensity = LOW

Call 1-800 to complete the trial offer

Call 1-800 to complete the trial offer

300 Milliseconds

Technology

DataTechnology =

+

POWER


Lessons Learned4

LessonsLearned

the Shouldersof

Standing

Giants

On

DigitalExecution

AddressableAudience

Re-think

isYou?

this


Questions & Answers5

Thank You!

Q&A

Business

Modeling & Scoring A Match Made in Marketing Heaven